Facts:

Petitioners Coronel et al. consummated a sale which of property

located in Quezon City. He received a down payment of 50k from
respondents, which payment is subject to a condition that the title
be transferred to petitioners name since the title of the property
was still in the name of the deceased father of Coronels and
thereafter an absolute deed of sale will be executed and the
respondent, Ramona Alcaraz, will pay the whole balance of
1,190,000.
The down payment was made by Concepcion Alcaraz in behalf of
her daughter and as such, Coronels made the transfer of title to
their name. Some other time, the Coronels sold the property to
Mabanag for 1,580,000 after the latter has paid a down payment
of 300,000. Thus, Coronel rescinded its prior contract with
Alcaraz.
Respondent filed a complaint for specific performance against
petitioners and caused the annotation of a notice of lis pendens at
the back of the title. Two months after the notice of lis pendens
was annotated in the title, Mabanag registered the property in her
name.
Issue:
Whether or not the contract entered into by the parties is a
contract to sell or a conditional contract of sale.
Whether or not the rescission of the first contract between
Coronel and Alcaraz is valid.
Ruling:
The case is a contract of sale subject to a suspensive condition in
which consummation is subject only to the successful transfer of
the certificate of title from the name of petitioners father, to their
names. Therefore, upon fulfillment of the suspensive condition,
the sale becomes absolute and this will affect the sellers title
thereto.

With regard to double sale, the rule that the first time, stronger in
right should apply. The contention of Mabanag that she was a
buyer in good faith because the notice of lis pendens in the title
was annotated after she bought the property is of no merit. What
finds relevant and material is not whether or not the second buyer
was a buyer in good faith but whether or not said second buyer
registers such second sale in good faith, that is, without
knowledge of any defect in the title of the property sold. Such
second buyer cannot defeat the first buyers title.