Title
Bangis vs. Heirs of Adolfo
Case
G.R. No. 190875
Decision Date
Jun 13, 2012
A disputed 1955 mortgage led to foreclosure; later, a 1975 undocumented transaction was contested as a sale or mortgage. Courts ruled it a mortgage, ordered debt repayment, and voided a spurious title.
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Case Digest (G.R. No. 190875)

Facts:

Ownership and Mortgage of the Property:
The spouses Serafin Adolfo, Sr. and Saludada Adolfo were the original registered owners of a 126,622 square meter lot in Valencia, Malaybalay, Bukidnon. The property was mortgaged to the Rehabilitation Finance Corporation (now DBP) in 1955. Due to default, the property was foreclosed, and DBP consolidated ownership under TCT No. T-1152. Serafin Adolfo, Sr. repurchased the property in 1971, and TCT No. 6313 was issued in his name.

Alleged Sale or Mortgage to Bangis:
In 1975, Serafin Adolfo, Sr. allegedly mortgaged the property to Aniceto Bangis for P12,500.00, but the transaction was not reduced into writing. Aniceto Bangis took possession of the land.

Death of Serafin Adolfo and Partition:
Upon Serafin Adolfo, Sr.'s death, his heirs executed a Deed of Extrajudicial Partition in 1997, and TCT No. T-65152 was issued in their names. The property was subdivided, and separate titles were issued to the Heirs of Adolfo in 1998.

Attempt to Redeem and Dispute:
In June 1998, the Heirs of Adolfo attempted to redeem the property from Bangis, but he refused, claiming the transaction was a sale, not a mortgage. Conciliation efforts failed, and a certificate to file action was issued.

Court Proceedings:
The Heirs of Adolfo filed a complaint for annulment of deed of sale, declaration of the transaction as antichresis, accounting, redemption, and damages. They also sought the cancellation of TCT No. T-10567, which was issued in Bangis' name but was deemed dubious by the Registrar of Deeds.

Death of Aniceto Bangis:
Aniceto Bangis died in 2001, and his heirs were substituted in the case. During the trial, the Heirs of Bangis presented a photocopy of an Extra-Judicial Settlement with Absolute Deed of Sale to prove the sale, but the Heirs of Adolfo alleged forgery.

RTC Decision:
The RTC ruled in favor of the Heirs of Adolfo, declaring the transaction as a mortgage, ordering possession of the property to be returned to them, and declaring TCT No. T-10567 null and void.

CA Ruling:
The CA affirmed the RTC’s decision, finding the transaction to be a mortgage. However, it modified the decision by ordering the Heirs of Adolfo to pay the mortgage debt with interest and deleting the order to cancel TCT No. T-10567, citing it as a collateral attack.

Issue:

  1. Whether the transaction between Aniceto Bangis and Serafin Adolfo, Sr. was a sale or a mortgage.
  2. Whether TCT No. T-10567 in Bangis' name should be declared null and void.
  3. Whether the action for redemption has prescribed.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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