Sayri Ang Balaod - Double Sale 2015

TOPIC: DOUBLE SALE (ART.
1544 NCC)
EPISODE: JULY 7,2015 TUESDAY
GUEST:
RESEARCHER: LANA, ROXANNE
JALA, Christine
GUIDE:
1. What is the rule on Double Sale?
Article 1544 of the Civil Code of the Philippines states that:
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 be movable property.
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. (1473)
2. What do we mean by possession?
Jurisprudence has interpreted possession in Article 1544 of the Civil Code to
mean both actual physical delivery and constructive delivery. Actual delivery of a
thing sold occurs when it is placed under the control and possession of the vendee.
Delivery of a thing sold may also be made constructively. Article 1498 of the
Civil Code states that: When the sale is made through a public instrument, the
execution thereof shall be equivalent to the delivery of the thing which is the
object of the contract, if from the deed the contrary does not appear or cannot
clearly be inferred ( The Roman Catholic Church vs. Pante;G.R. No. 174118, April
11, 2012).
3. Does prior registration confer better title?
Prior registration of the subject property does not by itself confer ownership or
a better right over the property. Article 1544 requires that before the second
buyer can obtain priority over the first, he must show that he acted in good faith
throughout (i.e., in ignorance of the first sale and of the first buyers rights) from
the time of acquisition until the title is transferred to him by registration or failing
registration, by delivery of possession. (Uraca vs. CA, 344 Phil 253; Consolidated
Rural Bank (Cagayan Valley) Inc. vs. CA, et al, G.R. No. 132161, January 17, 2005).
4. Who is a purchaser in good faith?
A purchaser in good faith is one who buys the property of another without
notice that some other person has a right to, or an interest in, such property and pays
a full and fair price for the same at the time of such purchase, or before he has
notice of some other persons claim or interest in the property.[21] The law requires,
on the part of the buyer, lack of notice of a defect in the title of the seller and
payment in full of the fair price at the time of the sale or prior to having notice of
any defect in the sellers title. (RAYMUNDO S. DE LEON vs BENITA T. ONG G.R.
No. 170405 February 2, 2010)
5. If the second buyer registered the property with knowledge of the first sale,
does the second buyer have better right over the first buyer?
No.
If the second buyer knew that the land was already sold to the first buyer, it is
the latter that has a better right over the property. Registration of the land in bad
faith, in cases of double sale, produces no legal effect and does not confer any
right. The case of Alejandro Gabriel vs. Spouses Pablo Mabanta and Escolastica
Colobong (G.R. No. 142403, March 26, 2003) gives light to this:
Otherwise stated, where it is an immovable property that is the subject of
a double sale, ownership shall be transferred (1) to the person acquiring it who
in good faith first recorded it in the Registry of Property; (2) in default thereof,
to the person who in good faith was first in possession; and (3) in default
thereof, to the person who presents the oldest title, provided there is good
faith. The requirement of the law then is two-fold: acquisition in good faith
and registration in good faith.
6. What is the rationale behind this rule?
The rationale behind this is well-expounded in Uraca vs. Court of Appeals,

where this Court held:
Under the foregoing, the prior registration of the disputed property by

the second buyer does not by itself confer ownership or a better right over the
property. Article 1544 requires that such registration must be coupled with
good faith. Jurisprudence teaches us that (t)he governing principle is primus
tempore, potior jure (first in time, stronger in right). Knowledge gained by the
first buyer of the second sale cannot defeat the first buyers right except
where the second buyer registers in good faith the second sale ahead of the
first, as provided by the Civil Code. Such knowledge of the first buyer does not
bar her from availing of her rights under the law, among them, to register first
her purchase as against the second buyer.
But in converso, knowledge gained by the second buyer of the first sale
defeats his right even if he is first to register the second sale, since such
knowledge taints his prior registration with bad faith. This is the price exacted
by Article 1544 of the Civil Code for the second buyer being able to displace
the first buyer, that before the second buyer can obtain priority over the first,
he must show that he acted in good faith throughout (i.e. in ignorance of the
first sale and of the first buyers right) from the time of acquisition until the
title is transferred to him by registration or failing registration, by delivery of
possession.
7. If the vendor is not in possession of the property, should the buyer be more
cautious in purchasing the land? YES.
One who purchases real property which is in actual possession of others

should, at least, make some inquiry concerning the rights of those in
possession. The actual possession by people other than the vendor should, at
least, put the purchaser upon inquiry. He can scarcely, in the absence of such
inquiry, be regarded as a bona fide purchaser as against such possessions. (Rep.
vs. CA, 102 SCRA 331; Conspecto vs. Fuerto, 31 Phil. 144).

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TOPIC: DOUBLE SALE (ART.

6. What is the rationale behind this rule?

The rationale behind this is well-expounded in Uraca vs. Court of Appeals,

Under the foregoing, the prior registration of the disputed property by

One who purchases real property which is in actual possession of others

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