G.R. No. 118408 - Abaca Corporation of the Philippines vs. Garcia

Martha David purchased from Fereit Realty Development Corporation (FRDC) a condominium unit, Lorraine Flat No. 552, in the condominium project “Europa Condominium Villas” in Baguio City.
Union Bank of the Philippines (UBP) (formerly acting through Bancom Development Corporation) and Far East Bank and Trust Company (FEBTC) later acquired the condominium units as highest bidders at an extrajudicial foreclosure sale.
Martha David’s unit was later purchased by Teresita T. Quazon, assisted by her husband, Alfonso Maria Quazon.

The agreed purchase price of Lorraine Flat No. 552 was P217,000.
Martha David paid a twenty percent (20%) downpayment of P43,400, leaving a balance of P173,600 (including interest of 1% per month) payable in sixty (60) equal monthly installments of P3,861.64 per installment.
In 1975, Martha David took possession as owner of the condominium unit, with notice to the management.
As of October 1976, she had paid at least twenty-two (22) monthly installments on the price of the condominium unit.

On January 2, 1978, FRDC mortgaged the condominium project to Bancom Development Corporation (Bancom) as security for a loan of P40,000,000, without the knowledge of condominium buyer David and without the prior approval of the National Housing Authority (NHA).
The mortgage was made without David’s consent and without prior written approval of the NHA, as required by P.D. No. 957.
Bancom foreclosed the mortgage on 45 condominium units, including David’s unit, after FRDC failed to pay its obligation, which Bancom computed as P42,075,134.84 as of June 30, 1979.
On March 4, 1980, the sheriff executed a Certificate of Sale to Bancom and FEBTC as highest bidders for the total price of P19,324,000.
After the expiration of the redemption period, UBP held out the units for sale.

On June 26, 1989, Martha David and Teresita Quazon (assisted by her husband) filed a complaint in the HLURB against FRDC, UBP, and FEBTC.
The complaint sought to annul:

The complaint sought issuance of a new certificate of title in Teresita Quazon’s name.
The complaint’s specific reliefs included:

An order allowing complainants to deposit on consignation the amount of P200,000.00 (to be deposited by and/or in the name of Teresita T. Quazon) to be paid to UBP and FEBTC according to their respective interests upon filing of the complaint.
After hearing, judgment for:

recognition that complainants had fully paid the total purchase price of the condominium unit originally purchased by Martha David and assigned and/or sold to Teresita Quazon;
cancellation of Condominium Certificate of Title No. 1117 in the name of UBP and FEBTC; and
issuance of a new condominium certificate of title over the same condominium unit covered by CCT No. 1117 in the name of Teresita T. Quazon as assignee from Martha David.

Whether HLURB had jurisdiction to hear and decide a condominium buyer’s complaint seeking annulment of:

the mortgage constituted without the buyer’s consent and without prior written approval of the NHA;
the foreclosure sale; and
the resulting condominium certificate of title issued to the highest bidder.

Whether the complaint for consignation required filing in the regular trial courts

Whether HLURB lacked jurisdiction over the consignation relief and thus required recourse to regular trial courts.

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