G.R. No. 104818 - Domingo vs. Court of Appeals

On November 29, 1921, Gabino Barreto P. Po Ejap owned a parcel of land in Tacloban, Leyte.
On the same day, Po Ejap sold the land to Po Tecsi for P8,000.
On November 29, 1921, Po Tecsi also executed a general power of attorney (granting the right to sell) in favor of Gabino Barreto P. Po Ejap.

On June 21, 1923, Po Ejap mortgaged the land to W. S. Price in the amount of P17,000.
The mortgage was duly noted in the office of the Register of Deeds of Leyte on August 18, 1923.
On December 17, 1924, Po executed a deed of sale of the land to Price for P17,000.
This deed was recorded in the Register of Deeds on January 22, 1925, establishing Price’s claim over the property.

With the consent of his wife, Price sold the land on February 16, 1927, to the Province of Leyte for P20,570.
Following property disputes earlier in the Tacloban Cadastral Case (1918), the claimants were substituted, leading ultimately to the issuance of the original certificate of title in the names of the Price spouses on March 17, 1927.
A proper transfer certificate of title was later issued to the Province of Leyte.

Acting under the power of attorney, Gabino Barreto P. Po Ejap sold the land on November 22, 1923, to Jose H. Katigbak for P8,000.
The deed executed in this transaction contained a note on the upper right-hand margin stating: "Register of Deeds, Received, Dec. 15, 1923, Province of Leyte."
Subsequently, on October 12, 1927, Jose H. Katigbak transferred the property to Po Sun Tun for P8,000.

Gabino Barreto P. Po Ejap and Po Tecsi were brothers.
Gabino Barreto P. Po Ejap (original vendor) was the father of Po Sun Tun (the ultimate transferee under the power of attorney).

Despite the transfer to Po Sun Tun, the actual possession and control of the property remained with Price and the Provincial Government of Leyte, not with Po Sun Tun.

Po Sun Tun initiated an action in the Court of First Instance of Leyte to gain possession of the property and claim damages amounting to P3,600.
Judge Causing, sitting in first instance, absolved the defendants (W. S. Price and the Province of Leyte) from the complaint, ruling against Po Sun Tun and ordering costs against him.

The main controversy arose from the trial judge’s finding that the deed in favor of Jose H. Katigbak (Exhibit D) was not properly registered, as it merely bore an acknowledgment of receipt and did not constitute a full registration in the Registry of Deeds.
The trial judge relied on the second paragraph of Article 1473 of the Civil Code, which states that if the same property is sold to different buyers, for immovable property, the title belongs to the one who first records it in the Registry.

Whether the deed executed by Gabino Barreto P. Po Ejap in favor of Jose H. Katigbak, which contained only a note of receipt ("Register of Deeds, Received, Dec.15, 1923"), qualifies as proper registration under the law.
Whether the failure to properly register this deed affects the rights of Po Sun Tun, who acquired the property indirectly through the chain of transactions.
Whether Price and the Provincial Government of Leyte, having properly registered their deeds and secured Torrens titles, are considered innocent purchasers for value despite the conflicting earlier transaction involving Po Sun Tun.
Determination of the legal effect of the power of attorney given by Po Tecsi to Gabino Barreto P. Po Ejap, and its subsequent utilization in the transfer to Jose H. Katigbak.