Heirs of Gonzales vs. Spouses Basas

G.R. No. 206847
Zenaida purchased property from spouses Basas, who failed to secure NHA consent and sold it to Munda. Court ruled in favor of Zenaida's heirs, nullifying Munda's sale and awarding damages.
land sale obligations rightful owners

Case Digest (G.R. No. 206847)

Facts:

The Heirs of Zenaida B. Gonzales, represented by Arnel B. Gonzales, v. Spouses Dominador and Estefania Basas and Romeo Munda, G.R. No. 206847, June 15, 2022, First Division, Hernando, J., writing for the Court.

Petitioners are the heirs-substitutes of the late Zenaida B. Gonzales (Zenaida); respondents are Spouses Dominador and Estefania Basas (the spouses Basas) and Romeo Munda (Munda). In May 1996 Zenaida and the spouses Basas executed a series of instruments concerning the parcel at No. 427 Espinola St., Magsaysay Village, Tondo, Manila (152.98 sq.m., TCT No. 187898, annotated that NHA consent is required): a Contract to Sell dated May 10, 1996, a Deed of Absolute Sale (DOAS) dated May 13, 1996, and an Agreement allegedly dated August 14, 1996. Zenaida paid the Basas a total of P811,500 documented by receipts; the parties disputed whether the August 1996 Agreement novated or reinforced the prior sale instruments and whether the spouses Basas retained ownership until full payment or had already transferred ownership to Zenaida subject to resolutory conditions.

After the transactions, the spouses Basas remained occupying the property and, according to petitioners, promised to procure the required written consent of the National Housing Authority (NHA) so Zenaida could complete payment. Zenaida sent a demand letter dated January 4, 1997 and later filed an affidavit of adverse claim that was annotated on the title on October 29, 1997; barangay mediation occurred on or before October 8, 1997 but failed. Meanwhile the spouses Basas sold the same parcel to Munda by Deed of Sale dated August 25, 1997; Munda took possession, applied for registration on September 22, 1997 (reference slip noted NHA clearance required), procured NHA approvals dated December 1, 1997, paid transfer fee on January 30, 1998, and was issued TCT No. 237326 on March 2, 1998.

Zenaida filed a complaint for nullity of sale, specific performance and damages on May 25, 1998. The Regional Trial Court (RTC), Branch 32, Manila, by Decision dated October 6, 2008 in Civil Case No. 98-88713, declared Zenaida the rightful owner, voided the Basas–Munda sale, ordered cancellation of Munda’s title, and awarded exemplary damages and attorney’s fees. The Court of Appeals (CA), in CA‑G.R. CV No. 93712, reversed by Decision dated November 5, 2012, declaring the Basas–Munda Deed of Sale and TCT No. 237326 valid; its April 18, 201...(Pro-only)

Issues:

  • Did the sale between Zenaida and the spouses Basas transfer ownership of the subject property to Zenaida such that the spouses Basas no longer had the right to sell it to Munda?
  • Was Munda an innocent purchaser for value and registrant in good faith entitled to retain ownership despite the ...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)
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