MCIAA vs. Sps Tirol 2

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MACTAN-CEBU INTERNATIONAL AIRPORT AUTHORITY vs.

SPOUSES EDITO
and MERIAN TIROL and SPOUSES ALEJANDRO AND MIRANDA NGO
G.R. No. 171535 June 05, 2009
Puno, C.J.:

Facts:
• Respondents purchased Lot No. 4763-D on September 15, 1993 after ascertaining
clean title thereof of the vendor, Mrs. Jenkins, who bought the same on December
15, 1987 from spouses Cuizon, who bought the same in January 1974 from
spouses Cuison, the original owners by virtue of Land Registration Act. Spouses
Cuizon also successfully secured the reconstitution of the land title in 1986.
• In January 1996, petitioner claimed ownership over Lot No. 4763, in which the
respondents’ lot is a part of, by way of sale by original owner spouses Cuison to
the government through the CAA, on March 23, 1986. Since then, the petitioner
has been in open, continuous, exclusive and adverse possession of the entire lot
in the concept of an owner. Since the duplicate copy of the title was lost during the
war, the parties agreed to register the property under Act 3344 pending the
reconstitution and issuance of title.
• Petitioner alleged that spouses Cuison again sold the same property in bad faith,
until respondents became the latest purchaser of a portion thereof, i.e., subject Lot
No. 4763-D. Petitioner further imputes bad faith to respondents citing the latter’s
acquisition of their title via a reconstituted one.

Issue: Whether petitioner has a better right over the subject property.

Ruling: No. Respondents have the better right.

Well-settled is the rule that registration of instruments must be done in the


proper registry in order to effect and bind the land. Prior to the Property Registration
Decree of 1978, Act No. 496 (or the Land Registration Act) governed the
recording of transactions involving registered land, i.e., land with a Torrens title.
On the other hand, Act No. 3344, as amended, provided for the system of
recording of transactions over unregistered real estate without prejudice to a
third party with a better right. Accordingly, if a parcel of land covered by a Torrens
title is sold, but the sale is registered under Act No. 3344 and not under the Land
Registration Act, the sale is not considered registered and the registration of the deed
does not operate as constructive notice to the whole world.

Consequently, the fact that petitioner MCIAA was able to register its Deed of
Absolute Sale under Act No. 3344 is of no moment, as the property subject of the sale
is indisputably registered land. Section 50 of Act No. 496 in fact categorically states
that it is the act of registration that shall operate to convey and affect the land; absent
any such registration, the instrument executed by the parties remains only as a
contract between them and as evidence of authority to the clerk or register of deeds
to make registration.

An improper registration is no registration at all. Likewise, a sale that is not


correctly registered is binding only between the seller and the buyer, but it does not
affect innocent third persons.

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