Title
Spouses Anselmo and Priscilla Bulaong vs. Veronica Gonzales
Case
G.R. No. 156318
Decision Date
Sep 5, 2011
Bulaongs sought to nullify titles in Gonzales's name following a mortgage. The SC reversed CA's ruling, asserting no valid execution sale occurred as property interest was unproven, thus reinstating RTC's decision.

Case Digest (G.R. No. 156318)

Facts:

Spouses Anselmo and Priscilla Bulaong v. Veronica Gonzales, G.R. No. 156318, September 05, 2011, the Supreme Court Second Division, Brion, J., writing for the Court. The petition for review on certiorari assailed the Court of Appeals decision in CA-G.R. SP No. 55423 (July 31, 2002), which had reversed the Regional Trial Court (RTC), Branch 12, Malolos, Bulacan, and set aside the RTC's order canceling certain Transfer Certificates of Title.

The dispute involves two adjacent parcels originally registered in the names of Fortunato and Bertha Limpo (TCT No. T-249639, 237 sq.m.) and of Pacifica and Fortunato Limpo (TCT No. T-249641, 86 sq.m.). Their daughter, Regina Christi (Reggie) Limpo, allegedly acquired an interest by a Deed of Absolute Sale dated November 5, 1991 and later mortgaged the two parcels to petitioners Spouses Anselmo and Priscilla Bulaong to secure a P4,300,000 loan (Deed of Mortgage dated January 13, 1993). The Bulaongs contend they were given the owners' duplicates and were assured by then Register of Deeds Elenita Corpus that titles were clear, prompting the mortgage.

Before annotation of the mortgage, a notice of levy on execution filed by respondent Veronica Gonzales (judgment creditor of Regina for P275,000) was entered in the Primary Entry Book of the Bulacan Registry on January 4, 1993 (Entry No. 7808). New reconstituted titles were issued in February 1993 and, after an extrajudicial settlement/adjudication of the Limpo estate on February 24, 1993, titles were issued in Regina's name (TCT Nos. T-30395 and T-30396) that reflected both the Bulaongs' mortgage annotation (Entry No. 5484) and the earlier Primary Entry Book levy (Entry No. 7808). Regina never registered the 1991 deed of sale prior to that adjudication.

Veronica caused an execution sale (to satisfy her judgment against Regina) and bought the lots at public auction on June 8, 1993. Her certificate of sale and final deed were annotated and, after the one-year redemption period lapsed, clean titles in Veronica's name (TCT Nos. T-62002 and T-62003) were issued following an RTC proceeding ordering surrender of Regina’s owner’s duplicates. Separately, the Bulaongs foreclosed their mortgage and purchased the properties at the sheriff's auction on August 22, 1994; their certificate of sale was recorded on August 23, 1994.

The Bulaongs filed a petition for mandamus in RTC Malolos (Civil Case No. 170-M-95) seeking cancellation of Veronica’s TCTs and issuance of titles in their names. On July 30, 1999 the RTC granted the petition, annulled TCT Nos. T-62002 and T-62003, and directed issuance of titles to the Bulaongs conditioned on their reimbursing Veronica P275,000 plus interest; the court also ordered the sheriff to execute a final deed of sale in favor of the Bulaongs. Veronica appealed to t...(Pro-only)

Issues:

  • May the Supreme Court review questions of fact in this Rule 45 petition?
  • Was Entry No. 7808 (the Notice of Levy on Execution) annotated on the titles valid and effective as against the Bulaongs?
  • Did Veronica Gonzales acquire a superior right to the properties vis-à-vis the Bulaongs?
  • Was the execution sale in Veronica’s favor valid and binding, or subje...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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