Title
Chingkoe vs. Chingkoe
Case
G.R. No. 244076
Decision Date
Mar 16, 2022
Faustino Chingkoe signed a notarized Deed of Sale transferring property to Felix Chingkoe. Despite claims of no intent to sell, the Supreme Court upheld the sale, emphasizing the presumption of regularity of notarized documents and ordering Faustino to surrender the title.
actual damages
unrealized profits
notary public
A

Case Summary (G.R. No. 175806 175810)

Procedural History

Felix filed a complaint for specific performance with damages to compel surrender of the owner’s duplicate of TCT No. 8283 and effect transfer pursuant to a Deed of Absolute Sale. The RTC (Branch 101, Quezon City) ruled for the plaintiffs (Felix and Rosita), declaring due execution of the Deed of Absolute Sale (acknowledged October 10, 1994) and later ordered surrender of the owner’s duplicate of the title. The CA reversed the RTC, crediting the mother’s testimony that the deed was only prepared to “appease” Felix and holding the contract void for lack of consideration. The CA denied reconsideration. Petitioners sought review before the Supreme Court.

Material Facts

Felix alleged continuous occupation of the property since 1989 and that, on October 10, 1994, he purchased the property from Faustino for P3,130,000.00 and that the parties signed the Deed of Sale before Notary Atty. Calabio. Faustino admitted that he allowed Felix to occupy the property around 1990 and that he signed an undated Deed of Sale at the instance of their mother, Tan Po Chu, who said she would keep it; Faustino later acknowledged the existence of the deed and that his staff prepared it. Felix discovered that Faustino had mortgaged the property to RCBC, which led to his suit for specific performance and surrender of the title.

RTC Findings and Rationale

The RTC found the notarized Deed of Sale valid and duly executed, noting the presumption of regularity attaching to notarized documents and crediting the notary’s testimony that both parties appeared before him. The RTC held that the mother’s testimony failed to overcome the presumption of regularity. The RTC awarded attorney’s fees and, on reconsideration, ordered surrender of the owner’s duplicate of the title.

Court of Appeals’ Findings and Rationale

The CA gave weight to Tan Po Chu’s testimony that the deed had been prepared at her instruction to appease Felix and concluded that Felix failed to prove payment of the contract price. On these bases the CA characterized the deed as simulated or devoid of consideration and therefore void, reversing and setting aside the RTC decision and order.

Issues Presented on Review

(1) Whether the CA correctly overturned the RTC’s factual findings and the presumption of regularity attaching to the notarized Deed of Sale; (2) whether the CA properly concluded lack of consideration or nonpayment rendered the contract void; and (3) whether actual damages for lost business opportunity were properly awarded.

Standard of Review and Scope of the Supreme Court’s Review

The Supreme Court’s review in a Rule 45 petition is generally confined to errors of law, but where the CA’s findings are contrary to those of the trial court, the Court may reexamine factual findings. The Court emphasized that notarized documents enjoy a presumption of regularity, authenticity, and due execution that can be overturned only by clear, convincing, and more than preponderant evidence.

Evaluation of Tan Po Chu’s Testimony and the Presumption of Regularity

The Court found the CA’s reliance on Tan Po Chu’s testimony insufficient to overcome the presumption of regularity. Her testimony showed she could not read the document, did not know its price or terms, was not involved in its preparation, was not present at signing or notarization, and repeatedly characterized the document as a “temporary” paper to appease Felix. Such testimony, largely hearsay or based on second‑hand understanding and lacking direct personal knowledge of the transaction’s execution and terms, did not meet the clear and convincing standard necessary to overturn a notarized instrument. The Court reiterated the principle that the trial court is best positioned to judge witness credibility, and that the RTC reasonably found the mother’s testimony inadequate to rebut the notarized deed’s presumption.

Evidence Supporting Validity and Intent to be Bound by the Deed

The Court identified several factors supporting the deed’s validity and the parties’ intent to be bound: (1) the notary’s in-court attestation that both parties appeared before him when the deed was notarized; (2) Faustino’s admissions that his staff prepared the deed and that he and his wife voluntarily signed it; and (3) Faustino’s own testimony indicating he intended the house to eventually be conveyed to Felix once obligations were satisfied. These admissions and the notarization corroborated execution with formalities and the parties’ consent, undermining the CA’s conclusion of absolute simulation.

Simulation, Consideration, and the Effect of Nonpayment

The Court addressed the CA’s legal reasoning on simulation and consideration. Articles 1345–1346 (Civil Code) distinguish absolute simulation (void) from relative simulation (binding as to the real agreement). The Court found the evidence inconsistent with absolute simulation. Concerning consideration, the Court clarified that nonpayment of the purchase price is distinct from lack of consideration: absence of proof of actual payment does not render a contract void for lack of cause; nonpayment is remedied by demand for fulfillment or rescission under Article 1191, not by characterizing the contract as void ab initio. The Deed of Sale itself contained an express acknowledgment that the sum of P3,130,000.00 was “paid in full” and receipt acknowledged by the vendors; given the presumption of regularity and Faustino’s failure to rebut it, the attestation of payment in the notarized deed was sufficient proof of payment for purposes of sustaining the contract.

Parol Evidence and the Requirement for Clear and Convincing Proof

While the Court recognized that parol evidence may be admitted to show mistake, imperfection, or that written instrument fails to express true intent, such evidence must be clear, convincing, and credible to overcome a written notarized instrument. The Court found Faustino’s explanations and the mother’s statements to be “flimsy” and unsupported by compelling evidence, and therefore insufficient to displace the

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