Case Digest (G.R. No. 191567)
Facts:
On March 10, 1993, Raymundo S. de Leon (petitioner) executed a notarized deed of absolute sale with assumption of mortgage in favor of Benita T. Ong (respondent) covering three parcels of land with improvements in Barrio Mayamot, Antipolo, Rizal, then mortgaged to Real Savings and Loan Association, Inc. (RSLAI). The deed recited a total purchase price of ₱1.1 million, of which respondent paid ₱415,500 in cash to petitioner and agreed to assume the outstanding mortgage of ₱684,500 directly with RSLAI. Pursuant to the deed, petitioner handed over the keys to the properties and informed RSLAI of respondent’s rights, while respondent undertook repairs and improvements. Thereafter, petitioner clandestinely repaid his loan to RSLAI, retrieved the certificates of title and sold the same properties to one Leona Viloria, changed the locks and thus ousted respondent. On June 18, 1993, respondent filed in the Regional Trial Court of Antipolo a complaint for specific performance, declaratioCase Digest (G.R. No. 191567)
Facts:
- Parties and Subject Matter
- Petitioner Raymundo S. de Leon was registered owner of three parcels of land in Barrio Mayamot, Antipolo, Rizal (TCT Nos. 226469, 226470, 226471), mortgaged to Real Savings and Loan Association, Inc. (RSLAI).
- Respondent Benita T. Ong, a licensed real estate broker, agreed to purchase the same parcels with improvements.
- March 10, 1993 Transaction
- Petitioner and respondent executed a notarized Deed of Absolute Sale with Assumption of Mortgage for ₱1,100,000, stipulating:
- Cash payment of ₱415,500 to petitioner upon execution.
- Assumption by respondent of the outstanding mortgage of ₱684,500 to RSLAI, with no further cost to respondent.
- Petitioner delivered the keys and sent RSLAI a letter authorizing it to accept respondent’s payments and release titles. Respondent paid ₱415,500, took possession, and made repairs and improvements.
- Respondent applied for credit investigation with RSLAI for the mortgage assumption.
- Subsequent Events and Lower Court Proceedings
- After March 10, 1993, petitioner sold the same properties to Leona Viloria, changed the locks, paid RSLAI his debt, and retrieved the certificates of title without informing respondent.
- Respondent filed a complaint on June 18, 1993 for specific performance, declaration of nullity of the second sale, and damages against petitioner and Viloria before the RTC of Antipolo (Civil Case No. 93-2739).
- The RTC (Aug. 27, 1999) dismissed the complaint for lack of cause of action, ruling the March 10 deed was a contract to sell (subject to suspensive condition of RSLAI’s approval), and awarded petitioner damages and attorney’s fees.
- On appeal, the CA (July 22, 2005) reversed: it held the deed was a contract of sale, nullified the second sale, ordered respondent to reimburse petitioner ₱715,250, and awarded respondent moral and exemplary damages. Reconsideration was denied (Nov. 11, 2005).
Issues:
- Whether the March 10, 1993 deed is a contract of sale or a contract to sell.
- Whether the second sale to Viloria is void or subject to the rules on double sale.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)