Case Summary (G.R. No. 192383)
Factual Background
In 1975, Isabelo and his sisters, Lucila and Cornelia, acquired a residential lot, on which Isabelo built a house. To assist their financially struggling cousin, Corazon L. Victoriano, the siblings agreed to mortgage the property, with Lucila paying off the remaining debt to Gatchalian Realty. The title to the property was issued in Lucila's name in 1979 and was later mortgaged for the benefit of Corazon. Following Corazon's default on the loan, the property was foreclosed but was redeemed by Lucila in 1992. In 2002, Lucila executed an affidavit of waiver granting her one-half interest in the property to Isabelo and the other half to their niece, Emelinda C. Dela Cruz. Isabelo later filed for partition in 2005, claiming ownership of half the property based on this waiver.
Legal Proceedings
Lucila contested Isabelo's claim, asserting that she, as the property’s named owner, retained full ownership since her waiver had not taken effect, as the family issues that necessitated it were unresolved. In 2008, the Regional Trial Court (RTC) ruled against Isabelo’s partition request, confirming Lucila's ownership based on evidence such as tax declarations and payments related to the property. Isabelo’s testimony regarding shared payments was discounted, and the RTC noted the absence of an annotation on the title indicating Isabelo’s claim. Isabelo's appeal to the Court of Appeals (CA) resulted in a similar Affirmation of the RTC's decision but removed the order for attorney's fees due to insufficient justification.
Legal Issue
The core issue presented in this case is whether Lucila’s affidavit of waiver constituted a valid transfer of ownership entitling Isabelo to demand partition of the property. The court reviewed whether the affidavit, as executed by Lucila, conferred any property right to Isabelo under the conditions set forth therein.
Court Ruling
The Supreme Court analyzed the nature of co-ownership and partition, necessitating a determination of ownership before partition proceedings. It found that the CA erroneously agreed with the RTC regarding the nature of the waiver. The waiver executed by Lucila was deemed absolute with no precondition attached; thus, Isabelo acquired ownership rights upon acceptance. The court pointed out that
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Facts of the Case
- Petitioner Isabelo C. Dela Cruz and his sisters, Lucila and Cornelia, purchased a 240-square meter lot in Las Piñas from Gatchalian Realty, Inc. in 1975.
- Isabelo and Cornelia handled the down payment and were responsible for the monthly amortizations.
- In 1976, Isabelo constructed a residential house on the property.
- Lucila requested the siblings' help for their cousin Corazon L. Victoriano, who needed financial assistance, leading to the lot being mortgaged for Corazon's loan from the Philippine Veterans Bank.
- Lucila paid the remaining balance of P8,000.00 owed to Gatchalian Realty, which resulted in the issuance of Transfer Certificate of Title (TCT) S-80735 in her name on January 18, 1979.
- Corazon defaulted on her loan, leading to the property's foreclosure on March 1, 1989, but Lucila redeemed it on March 27, 1992.
- On October 7, 2002, Lucila executed an affidavit of waiver, relinquishing her share of the property to Isabelo and her niece, Emelinda C. Dela Cruz.
- Isabelo filed for partition on August 22, 2005, asserting his right to half of the property based on Lucila's waiver.
- Lucila countered that she retained ownership and claimed her affidavit of waiver was conditional, as it would only take effect once family issues were resolved.