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    G.R. No. 194846 - Case Digest

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    Jullie
    This case involves a dispute over the ownership of several parcels of land involving allegations of double sale. Luis Rosaroso originally owned the properties but allegedly sold them to his relatives, the petitioners. However, Luis later executed another deed of sale conveying the same properties to respondent Meridian Realty Corporation. The Supreme Court ruled in favor of the petitioners, finding that Meridian was a buyer in bad faith since it did not properly investigate the rights of those occupying the properties despite signs they may have owned the land. The possession of the properties by others than the seller should have prompted Meridian to determine their legal interests first before purchasing.

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    G.R. No. 194846 - Case Digest

    Uploaded by

    Jullie
    918 views2 pages
    This case involves a dispute over the ownership of several parcels of land involving allegations of double sale. Luis Rosaroso originally owned the properties but allegedly sold them to his relatives, the petitioners. However, Luis later executed another deed of sale conveying the same properties to respondent Meridian Realty Corporation. The Supreme Court ruled in favor of the petitioners, finding that Meridian was a buyer in bad faith since it did not properly investigate the rights of those occupying the properties despite signs they may have owned the land. The possession of the properties by others than the seller should have prompted Meridian to determine their legal interests first before purchasing.

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    G.R. No. 194846_Case Digest

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    This case involves a dispute over the ownership of several parcels of land involving allegations of double sale. Luis Rosaroso originally owned the properties but allegedly sold them to his relatives, the petitioners. However, Luis later executed another deed of sale conveying the same properties to respondent Meridian Realty Corporation. The Supreme Court ruled in favor of the petitioners, finding that Meridian was a buyer in bad faith since it did not properly investigate the rights of those occupying the properties despite signs they may have owned the land. The possession of the properties by others than the seller should have prompted Meridian to determine their legal interests first before purchasing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    918 views2 pages

    G.R. No. 194846 - Case Digest

    Uploaded by

    Jullie
    This case involves a dispute over the ownership of several parcels of land involving allegations of double sale. Luis Rosaroso originally owned the properties but allegedly sold them to his relatives, the petitioners. However, Luis later executed another deed of sale conveying the same properties to respondent Meridian Realty Corporation. The Supreme Court ruled in favor of the petitioners, finding that Meridian was a buyer in bad faith since it did not properly investigate the rights of those occupying the properties despite signs they may have owned the land. The possession of the properties by others than the seller should have prompted Meridian to determine their legal interests first before purchasing.

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    HOSPICIO D. ROSAROSO, ANTONIO D. ROSAROSO, MANUEL D.

    ROSAROSO, ALGERICA D. ROSAROSO, and CLEOFE R. LABINDAO,


    Petitioners, vs. LUCILA LABORTE SORIA, SPOUSES HAM SOLUTAN and
    **LAILA SOLUTAN, and MERIDIAN REALTY CORPORATION, Respondents.,
    G.R. No. 194846, June 19, 2013

    PONENTE: Mendoza, J.
    TOPIC: Double Sale

    FACTS: Spouses Luis Rosaroso and Honorata Duazo acquired several real
    properties in Daan Bantayan, Cebu City, including the subject properties. When
    Honorata died, Luis later on married Lourdes Pastor Rosaroso. On January 16,
    1995, a complaint for Declaration of Nullity of Documents with Damages was
    filed by Luis, as one of the plaintiffs, against his daughter, Lucila R. Soria,
    Lucila’s daughter, Laila S. Solutan, and Meridian Realty Corporation. It was
    alleged by petitioners that Luis, with the full knowledge and consent of his
    second wife, Lourdes, executed the Deed of Absolute Sale all located at
    Daanbantayan, Cebu, in their favor.

    The petitioners also alleged that, despite the fact that the said properties had
    already been sold to them, respondent Laila, in conspiracy with her mother,
    Lucila, obtained the Special Power of Attorney from Luis; that Luis was then sick,
    infirm, blind, and of unsound mind.

    Petitioners further averred that a second sale took place when the respondents
    made Luis sign the Deed of Absolute Sale conveying to Meridian three parcels of
    residential land (Second Sale); that Meridian was in bad faith when it did not
    make any inquiry as to who were the occupants and owners of said lots; and that
    if Meridian had only investigated, it would have been informed as to the true
    status of the subject properties and would have desisted in pursuing their
    acquisition. Respondent Meridian, in its Answer with Compulsory Counterclaim,
    averred that Luis was fully aware of the conveyances he made. In fact, Sophia
    Sanchez, Vice-President of the corporation, personally witnessed Luis affix his
    thumb mark on the deed of sale in its favor.

    The RTC ruled in favor of petitioners. The trial court stated that Luis lost his right
    to dispose of the said properties to Meridian from the time he executed the first
    deed of sale in favor of petitioners. However, on appeal, the CA reversed and set
    aside the RTC decision. The CA ruled that the first deed of sale in favor of
    petitioners was void because they failed to prove that they indeed tendered a
    consideration for the four parcels of land.

    ISSUE: Whether or not Meridian is a buyer in bad faith.


    HELD: YES. The fact that Meridian had them first registered will not help its
    cause. In case of double sale, Article 1544 of the Civil Code provides:

    ART. 1544. If the same thing should have been sold to different vendees, the
    ownership shall be transferred to the person who may have first 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 possession; and, in the absence thereof; to the person who
    presents the oldest title, provided there is good faith.

    The petition is GRANTED. It is clear that Meridian, through its agent, knew that
    the subject properties were in possession of persons other than the seller.
    Instead of investigating the rights and interests of the persons occupying the said
    lots, however, it chose to just believe that Luis still owned them. Simply, Meridian
    Realty failed to exercise the due diligence required by law of purchasers in
    acquiring a piece of land in the possession of person or persons other than the
    seller.

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