G.R. No. L-39047 - Pascua vs. Florendo

Two parcels in Sta. Teresita, Angeles City (351 sqm and 340 sqm) were covered by TCT Nos. 69711 and 69712 in the names of Spouses Narciso (d. 2005) and Ofelia Ferreras (d. 1992).
Upon their deaths, the lands formed part of their estate, and Danilo Ferreras was appointed special administrator in December 2007.

Carina Pinpin occupied the properties with Narciso’s tolerance; after she refused to vacate, the estate won an ejectment case (MTC 2011).
Pinpin allegedly procured reconstituted owner’s duplicate TCTs by fraudulent Affidavits of Loss (Sept 2005) and a judicial decision (June 2005), then executed a fictitious Deed of Absolute Sale on May 11, 2009 from the deceased Spouses Ferreras for ₱250,000, leading to TCT Nos. 181052 and 181053 in her name.
On September 20, 2010, Pinpin sold the same properties to petitioners Spouses Manalese and their son Aries for ₱750,000 (plus an alleged ₱2.55 M loan), resulting in TCT Nos. 198220 and 198221 in their names.
In reality, the original owner’s duplicate TCTs remained in Danilo’s possession; the so-called “clean” titles issued to Pinpin were “laundered” of the loss and reissue annotations.

The estate filed Civil Case No. 14778 (RTC Angeles City, Branch 57) in November 2011 for annulment of titles, nullity of deeds, reinstatement of original TCTs, and damages.
The RTC denied petitioners’ application for injunction (Jan 2012) and later (Sept 2017) rendered judgment voiding all TCTs and deeds in Pinpin’s and petitioners’ names, reinstating TCT Nos. 69711 and 69712, and awarding moral/exemplary damages and attorney’s fees.
Petitioners appealed; the Court of Appeals (Feb 18, 2020) affirmed bad faith findings but deleted damages and fees; a motion for reconsideration was denied (Oct 15, 2020).
Petitioners then filed a Rule 45 Petition for Review on Certiorari with the Supreme Court.

Whether petitioners are innocent purchasers in good faith and for value, holding a complete chain of registered titles to the subject properties.