Case Digest (G.R. No. L-27587)
Facts:
Amado Carumba bought a parcel of unregistered land by a Deed of Sale dated April 12, 1955, took possession and cultivated it, but the deed was not registered and the notary was not authorized. Santiago Balbuena obtained a money judgment against the prior owners, a sheriff executed a sale and issued a Definite Deed of Sale in favor of Balbuena dated October 1, 1958 and registered October 3, 1958; the Court of First Instance of Camarines Sur declared Carumba owner, nullified the execution sale, and awarded damages, but the Court of Appeals reversed, applying Article 1544 of the Civil Code.
Issues:
- Does a purchaser at a sheriff's execution sale of unregistered land acquire superior title over a prior vendee who holds an unregistered deed and is in possession?
- Is Article 1544 of the Civil Code applicable to resolve a double sale involving unregistered land?
Ruling:
The Supreme Court reversed the decision of the Court of Appeals and affirmed the judgment of the Court of First Instance, holding that Carumba was the owner and ordering costs against respondent Balbuena. The Court held that Article 1544 did not apply to the present case of unregistered land.
Ratio:
Under Section 35 of Rule 39, Revised Rules of Court, an execution purchaser acquires only the rights, title, interest, and claim of the judgment debtor as of the time of levy, and a substitution is ineffective against a judgment debtor already in possession; because the sale to Carumba was executed April 12, 1955 and he was in possession before the levy, the judgment debtor had no dominical interest to pass to Balbuena. The rule in Article 1544—that registration in good faith prevails over possession—operates differently and is not applicable to unregistered land as it does to Torrens-registered titles.
Doctrine:
- Section 35 of Rule 39, Revised Rules of Court: an execution purchaser of unregistered land acquires only the judgment debtor's interest at the time of levy and cannot defeat a prior vendee in possession.
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