Facts:

• The case involves the Heirs of Paz Macalalad (Marieta Macalalad, Arlene Macalalad-Aday, Jimmy Macalalad, Ma. Cristina Macalalad, Nenita Macalalad-Papa, and Danny Macalalad) as petitioners.
• Respondents are the Rural Bank of Pola, Inc. and the Register of Deeds of Oriental Mindoro.
• Petitioners sought to nullify Transfer Certificate of Title (TCT) No. T-117484, alleging the bank acted in bad faith as a mortgagee and subsequent purchaser.
• The case originated from a complaint filed by Paz Macalalad on September 26, 2003, in the RTC of Calapan City, Oriental Mindoro, Branch 40, in Civil Case No. R-03-5244.
• Paz claimed to be the sole surviving legal heir of Leopoldo Constantino, Jr., who owned land in Pinagsabangan II, Naujan, Oriental Mindoro.
• After Leopoldo's death, it appeared that he sold the land to Spouses Remigio and Josephine Pimentel, who then mortgaged it to the respondent bank.
• The Spouses Pimentel defaulted on their loan, leading to the foreclosure of the mortgage and the bank acquiring the property as the highest bidder.
• The RTC dismissed the complaint, ruling that the bank acted in good faith.
• The CA affirmed the RTC's decision.
• Petitioners filed a petition for review on certiorari with the Supreme Court.

Issue:

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Ruling:

• The Supreme Court denied the petition for review on certiorari, affirming the decisions of the RTC and the CA.
• The Court held that the respondent bank acted in good faith and was an innocent mortgagee for value.
• The Court imposed an additional fine of P2,000.00 o...(Unlock)

Ratio:

• The Supreme Court noted that the petitioners failed to implead the Spouses Pimentel, who were indispensable parties, in their complaint.
• The Court reiterated the principle that no one can transfer a right greater than what they have, and a forged deed cannot be the root of a valid title unless an innocent purchaser for value intervenes.
• Th...continue reading