G.R. No. 164733 - Malto vs. People

On April 11, 1992, respondent Flora A. Saberon applied to reserve Lot 2, Block 1 of Metrogate Subdivision, Dasmariñas, Cavite, under a Reservation Application executed with petitioner Moldex Realty, Inc. The cash price was ₱396,000.00; installment price ₱583,498.20, payable over five years at ₱8,140.97 monthly with 21% annual interest and 5% surcharge per month of delay.
From April 1992 to July 1996, Flora made periodic payments totaling ₱375,295.49.

In April, August, and October 1996, Moldex sent reminders; Flora discovered her unpaid balance had risen to P247,969.10 by July 1996 and P491,265.91 by November 1996. By April 1997, Moldex computed the account at ₱576,569.89 and issued a Notarized Notice of Cancellation of Reservation Application and/or Contract to Sell.
Flora filed before the HLURB Regional Field Office a complaint for annulment of the contract to sell, recovery of payments with interest, damages, cancellation of Moldex’s license to sell, and imputation of bad faith and violation of Sections 5 and 17 of PD 957.

Whether the lack of a license to sell at the time of perfection of the contract rendered the contract to sell automatically void under PD 957.
Whether failure to register the contract to sell with the Register of Deeds under Section 17 of PD 957 invalidates the contract.