Carbonell v. CA
Carbonell v. CA
Carbonell v. CA
Carbonell v. CA, Jose Poncio, Emma Infante, and Ramon Infante (1976) Makasiar, J. Poncio agreed to sell his mortgaged land to Rosario. They even made a contract that Rosario is going to buy the land. They even went to the bank because Rosario is now going to assume the mortgage payments of the land. When Rosario went to Poncios house to have the deed of sale signed, Poncio told her that he already sold the lot to Emma. Rosario tried to contact Emma but Emma refused to see her. Because the land was not yet registered, Rosario filed an adverse claim with the register of deeds. 4 days later, Emma was able to have the land registered, but it was annotated that there was an adverse claim. Issue now is, who has a preferential right to the land? SC says Rosario. NCC 1544 says that to gain ownership of immovables, it is essential that the person having the immovable registered, acts in good faith. In this case, Emma was held to have acted in bad faith (she refused to see Rosario, she did not question why the mortgage papers were with Rosario, there was already an adverse claim 4 days prior to Emma having the land registered) Jose Poncio, a native of the Batanes Islands, was the owner of a land with improvements o This land was mortgaged to Republic Savings Bank Poncios cousin, Rosario Carbonell, lived in the adjoining lot. o She, and a certain Emma Infante, offered to buy Poncios land (from Poncio) Poncio was unable to pay mortgage payments. He offered to sell the land to Rosario, excluding the house where he lives. o Rosario accepted the offer then offered P9.50 per sq mtr. o Poncio secured consent of wife and parents. o Poncio accepted price with condition: that from the purchase price would come the money to be paid to the bank Rosario and Poncio then went to the bank and secured the consent of the bank President (that Rosario would pay the arrears and instalments on the mortgage) Jan 27, 1955: Rosario and Poncio, with witnesses, made a contract for one half of the lot (which indicates Rosario bought the land from Poncio) After the contract, Rosario asked a certain Atty. Reyes to make a formal deed of sale o Also written is the balance she still had to pay in addition to assuming the obligation to the bank (amounting to P400) But when Rosario went to Poncios house, Poncio told her that he could not sell the land to her because he already sold the lot to Emma Infante. o Poncio even said that he could not back out even if he were to go to jail Rosario then wanted to contact Emma. Emma refused to see Rosario. o (Feb 5, 1955) Rosario saw Emma erecting a wall around the subject lot. Rosario then consulted a certain Atty Garcia. o Atty Garcia sent a letter to Register of Deeds and some demand letters to Poncio and Emma. Poncio answered saying that on Jan 30, 1955, Emma improved her offer o Emma Infante assumed the mortgage debt o Emma lived just behind the houses of Rosario and Poncio So what happened between Poncio and Emma was: o Feb 2, 1955, Poncio executed the formal deed of sale in favor of Emma o Later that day, the Emma paid the bank and mortgage was eventually discharged. Since the sale was not yet registered, Atty Garcia filed an adverse claim (Feb 8, 1955) o Feb 12, 1955- Deed of sale to Emma was registered o So, a TCT was issued to Emma but there was an annotation of the adverse Emma took immediate possession of the land o Even contacted an architect to build a house o But actual construction only began 4 yrs later (1959) June 1, 1955- Rosario filed a complaint to be declared lawful owner and to declare the sale null and void Emma says Rosarios claim is unenforceable under the Statute of Frauds (sale in Rosarios favour not written) TC ruled sale to Emma null and void. o There was a TC re-hearing, this time, Emma won. CA reversed, siding with Rosario. o Upon MR, CA reversed and sided with Emma.
Issue: Who has a better right to the land? Held: Rosario. Ratio:
NCC 1544: (1) If the same thing should have been sold to different vendees, the ownership shall be transferred to the person who may have first taken possession thereof in good faith, if it should movable property. (2) Should it be immovable property, the ownership shall belong to the person acquiring it who in good faith first recorded it in the Registry of Property. Should there be no inscription, the ownership shall pertain to the person who in good faith was first in the possession; and, in the absence thereof, to the person who presents the oldest title, provided there is good faith
(3)
d2015member
To be protected by 3 par, it is essential that buyer acts in good faith in registering his deed of sale. st Unlike 1 and 3rd par, which prefers the one who first takes possession in good faith, the 2nd par gives ownership of immovable to one who first recorded his right in good faith. o 1st and 3rd par- good faith must characterize the act of before registration If there is no inscription, what is decisive is prior possession in good faith. If there is inscription (like in this case) prior registration in good faith is a pre-condition to superior title. When Rosario bought the lot, she was the only buyer, the title of the land only encumbered by bank mortgage. o So, her prior purchase of the land was in good faith. o Good faith continued when she recorded her adverse claim 4 days before Emmas deed of sale. o Her good faith did not cease after Poncio told her that he already sold the land to Emma. o She even wanted to contact Emma but with an aristocratic disdain unworthy of the good breeding of a good Christian and good neighbor, [Emma] snubbed [Rosario] like a leper and refused to see her. Rosarios recording of adverse claim was done in good faith and should emphasize Emmas bad faith of registering the deed of sale 4 days later There was bad faith arising from previous knowledge by Emma of prior sale to Rosario o She refused to see Rosario o Rosario already in possession of the mortgage passbook & mortgage contract o Rosario filed adverse claim 4 days before Emma registered
rd
Decision reversed. Teehankee, J. concurs. Palma, J. dissents: In this case there was a double sale by Poncio. Accdg to NCC 1544, the ownership shall belong to the person acquiring it who in good with first recorded it in the Registry of property. In this case, both girls are purchasers in good faith. Rosario- already established good faith buyer. Emma- good faith buyer by finding of fact by original TC and CA decisions Justice Magno Gatchalian of the CA said: When Emma bought the property, she was not preliminarily informed of the 1st sale to Rosario At the dates of their purchase, both Rosario and Emma were innocent and acted in good faith But Rosario only filed an adverse claim after taking advantage of the fact that Emma had not yet registered the land. It is a settled rule that the inscription in the registry, to be effective, must be made in good faith. Knowledge is equivalent to registration. o Purpose of registration is to give notice to the whole world of the existence of rights or liens against the property The moment that Rosario had actual knowledge of the sale to Emma, a valid registration of Emmas deed of sale was constituted as against Rosario. o And so, Emma has a preferential right to the property