Title
Dawson vs. Register of Deeds of Quezon City
Case
G.R. No. 120600
Decision Date
Sep 22, 1998
Heirs completed payments for land after vendor's death; erroneous title issued to deceased corrected under Section 108, PD 1529, granting new title to heirs as co-owners.

Case Summary (G.R. No. 120600)

Case Background and Filing

On October 7, 1993, the petitioners filed a petition with the Regional Trial Court in Quezon City. The factual background indicates that Louis P. Dawson, during his lifetime, entered into a contract to sell a parcel of land from Siska Development Corporation on May 2, 1967, for P27,632. Dawson died intestate on June 3, 1971, before fully paying the purchase price. After his death, the petitioners, as his heirs, took over the contract and completed the payment by 1978. Despite this, a deed of absolute sale was erroneously executed in favor of the deceased, leading to complications regarding the proper title ownership.

Initial Court Rulings

The Regional Trial Court, in its decision on December 29, 1993, dismissed the petition for cancellation of the title in Dawson's name. The Court of Appeals affirmed this dismissal, citing several reasons, including the nature of the proceedings and questioning the motives for the delay in filing the petition to cancel the title.

Court of Appeals' Findings

The Court of Appeals determined that the summary proceedings under Section 108 of Presidential Decree No. 1529 were not applicable, concluding that the issue largely pertained to estate partition rather than mere title correction. The appellate court criticized the petitioners for only taking action in 1993 and suggested that their motive may have involved tax evasion.

Legal Framework and Arguments

The petitioners contended they were lawful owners of the property after assuming Dawson’s obligations upon his demise. They argued that the contract to sell, by its nature, only transferred title upon full payment, which they fulfilled. They sought to correct the erroneous issuance of the title under Section 108 of PD 1529, which governs the amendment and alteration of certificates of title.

Supreme Court's Ruling

The Supreme Court overturned the Court of Appeals' ruling, holding that petitioners were correct in their reliance on Section 108 of PD 1529. It affirmed that the title to the property should have been transferred to the petitioners as a result of their completion of payment, despite the premature deed executed in favor of Louis P. Dawson, who had already died.

Key Legal Principles

In distinguishing between a contract of sale and a contract to sell, the Court

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