G.R. No. 158885 - Fort Bonifacio Development Corp. vs. Commissioner of Internal Revenue

Petitioners are spouses Segundo Dalion and Epifania Sabesaje-Dalion; respondents are the Court of Appeals and private respondent Ruperto Sabesaje, Jr.
Petition challenges the Court of Appeals’ May 26, 1987 decision affirming the validity of a sale of land by Segundo Dalion to Sabesaje.

Parcel located at Panyawan, Sogod, Southern Leyte; declared in Dalion’s name under Tax Declaration No. 11148; area 8.947 hectares; assessed at ₱180.00; bounded on the north by Sergio Destriza and Titon Veloso, east by Feliciano Destriza, south by Barbara Boniza, and west by Catalino Espina.
Trial Court (RTC, Maasin, Br. XXIV) rendered judgment on January 17, 1984 ordering delivery of the land, execution of a formal public deed in favor of Sabesaje (or by sheriff), payment of ₱2,000 attorneys’ fees and ₱500 litigation expenses, and dismissal of the counterclaim.

On May 28, 1973 Sabesaje sued to recover ownership based on a private deed of absolute sale dated July 1, 1965 (Exh. A), alleged executed by Dalion.
Dalion denied the sale, contending the document was fictitious and his signature forged, asserting instead that the land was conjugal property acquired in 1960 from Saturnina Sabesaje by Escritura de Venta Absoluta (Exh. B).

Spouses admitted they administered since 1958 five parcels formerly belonging to Leonardo Sabesaje and claimed nonpayment of agreed commissions, alleging Sabesaje’s suit was retaliatory.
Both Trial Court and Court of Appeals found the parcels in Exhs. A and B identical by matching boundary descriptions; the CA affirmed the judgment, and Dalion's appeal to the Supreme Court ensued.

Whether a contract of sale of real property embodied in a private document is valid and enforceable.
Whether a public instrument is necessary to transfer ownership of immovable property.