ADRIANO

 Guillermo Adriano entrusted the original copy of his TCT to Angelina Salvador, a distant
relative, for the purpose of securing a loan.
 Without his knowledge and consent, Angelina mortgaged the property to respondent
Romulo Pangilinan.
 Upon verification of the status of his title with the RD, Adriano was surprised to discover
the annotation of a real estate mortgage on his TCT in favor of respondent.

 Defense of Pangilinan:
- He was a businessman engaged in buying, selling and mortgage of properties
- Salvador and Adriano himself went to his house inquiring how to secure a loan over
a parcel of land
- There is a principal-agent relationship between Salvador and Adriano because the
latter voluntarily entrusted the TCT to the former

Issue: Whether or not petitioner was negligent in entrusting and delivering his TCT to a relative
who was supposed to help him find a money lender; and if so, was such negligence sufficient to
deprive him of his property

HELD: NO
 It was proven in this case that the signature of the mortgagor has been forged and that
an impostor had pretended to be the former when the mortgagee made an ocular
inspection of the subject property.

 Respondent Pangilinan was not an “innocent purchaser for value”. He failed to observe
the diligence of a person engaged in the real estate business: he is expected to
ascertain the status and condition of the properties offered to him as collateral as well as
to verify the identities of the persons he transacts business with.

 Petitioner Adriano’s act of entrusting and delivering his TCT to Salvador was only for the
purpose of helping him find a money lender. Not having executed a power of attorney in
her favor, he clearly did not authorize her to be his agent in procuring the mortgage.

 Assuming both parties are negligent, respondent should still bear the loss since his
superior knowledge of the matter should have made him more cautious with regard to
the loan and the mortgage. Respondent’s own negligence was the primary, immediate
and overriding reason of his predicament