Title
Candelario S. Dela Cruz, Lubita D. Lantapon, Diego S. Dela Cruz, Mauricia D. Epe, Rodrigo S. Dela Cruz, and Ariston S. Dela Cruz vs. Alejandro Dumasig and Rosalinda D. Epe
Case
G.R. No. 261491
Decision Date
Dec 4, 2023
A simulated sale of agrarian land to a sibling violated PD 27; SC voided the sale, declared heirs as co-owners, and invalidated subsequent mortgage.
A

Case Digest (G.R. No. 232131)

Facts:

  • Parties and Property
  • Petitioners Candelario S. Dela Cruz, Lubita D. Lantapon, Diego S. Dela Cruz, Mauricia D. Epe, Rodrigo S. Dela Cruz, and Ariston S. Dela Cruz are children of Spouses Eniego P. Dela Cruz and Silvestra D. Dela Cruz, former owners of a 35,153 sqm agricultural lot in Sitio Cogon, Barangay Lala Proper, Lala, Lanao del Norte, covered by TCT No. EP-250.
  • Respondents Rosalinda D. Epe (daughter) and Alejandro Dumasig claim ownership and possession of the same parcel.
  • Sequence of Transactions
  • 1987: Sps. Dela Cruz mortgaged the property to Cooperative Rural Bank (CRB); upon foreclosure, Rosalinda paid the loan (receipt issued in parents’ names) and CRB returned the original TCTs.
  • December 27, 2003: Sps. Dela Cruz and Rosalinda executed and notarized a Deed of Sale with Assumption of Mortgage over the subject land.
  • 2004: Sps. Dela Cruz re-mortgaged the land to Erlito Llanes for ₱350,000; Rosalinda cultivated the land for one cropping season then returned possession.
  • August 22, 2011: Rosalinda mortgaged the property to Dumasig for ₱700,000 (₱100,000 to repay Paulino Saladaga; ₱500,000 to Llanes) under a notarized Agreement of Loan with Real Estate Mortgage.
  • Litigation History
  • Petitioners tilled the land while parents were alive and entrusted its management to Rosalinda. In 2011 they learned of Dumasig’s possession and demand was made for return of land; no barangay settlement.
  • December 2016: Petitioners filed accion reivindicatoria with damages in RTC Lanao del Norte, Branch 21 (Civil Case No. 21-508).
  • August 14, 2019: Trial Court granted petitioners’ complaint, declared co‐owners, voided sale to Rosalinda for lack of intent and PD 27 violation, ordered partition, and directed Dumasig to vacate.
  • October 29, 2020: Court of Appeals reversed, upheld the Deed of Sale as valid among family members and within PD 27 exception for heirs, and declared Rosalinda and Dumasig rightful owners; June 8, 2022: Motion for Reconsideration denied.
  • Petitioners filed a Rule 45 petition for review on certiorari in the Supreme Court.

Issues:

  • Whether respondents Rosalinda D. Epe and Alejandro Dumasig are the rightful owners and possessors of the subject property under TCT No. EP-250.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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