G.R. No. 219848 - People vs. Macaraig y Gonzales

Acquisition and Encumbrance of the Property
On April 17, 1984, petitioners Spouses Araceli Oliva-De Mesa and Ernesto S. De Mesa purchased a parcel at No. 3 Forbes Street, Mount Carmel Homes Subdivision, Iba, Meycauayan, Bulacan, covered by TCT No. T-76 725 (M), registered in Araceli’s name. They cohabited at the time, married in January 1987, constructed a house thereon, and made it their family home.
In September 1988, Araceli obtained a P100,000 loan from Claudio D. Acero, Jr., secured by a mortgage on the property. She issued a check which was dishonored due to a closed account. After failing to pay, Claudio filed a B.P. 22 complaint in April 1990.

Execution Sale and Transfer of Title
October 21, 1992 – RTC acquitted the petitioners of any criminal liability but ordered them to pay P100,000 with legal interest.
March 15, 1993 – Writ of execution issued; Sheriff Samonte levied on the property. March 9, 1994 – Property sold at public auction; Claudio was highest bidder and received a certificate of sale.
March 24, 1995 – Final Deed of Sale executed in Claudio’s favor. April 4, 1995 – TCT No. T-76 725 (M) cancelled and TCT No. T-221 755 (M) issued to Claudio.

Ejectment Proceedings and Annulment Suit
February 1995 – Claudio leased the property to the petitioners and Juanito Oliva at P5,500/month; they defaulted and owed P170,500 by October 3, 1998. Spouses Acero filed ejectment in MTC Meycauayan. July 22, 1999 – MTC granted ejectment; RTC (Nov 22, 1999) dismissed petitioners’ appeal for failure to file memorandum; CA (Dec 21, 2006) affirmed; final July 25, 2007.
October 29, 1999 – Petitioners filed in RTC Malolos a complaint to nullify TCT No. T-221 755 (M), asserting the property is a family home exempt from execution. September 3, 2002 – RTC dismissed; January 14, 2003 – RTC denied reconsideration; June 6, 2008 – CA affirmed; October 23, 2008 – CA denied reconsideration.