Title
Fudot vs. Cattleya Land, Inc.
Case
G.R. No. 171008
Decision Date
Sep 13, 2007
Cattleya Land, Inc. purchased property from Tecsons, but registration was delayed due to a notice of attachment. Carmelita Fudot claimed ownership via a 1986 deed, later found forged. Courts ruled in favor of Cattleya, affirming its good faith registration and invalidating Fudot’s claim. No double sale occurred.

Case Summary (G.R. No. 209786)

Background Facts

In July 1992, Cattleya Land, Inc. initiated the process to purchase nine lots from spouses Troadio and Asuncion Tecson. After confirming the titles were defect-free, the respondent executed a Deed of Conditional Sale on November 6, 1992, followed by a Deed of Absolute Sale executed on August 30, 1993. Both deeds were registered with the Register of Deeds, although trouble arose due to an attachment notice from a pending civil case, which was eventually resolved.

Registration Conflicts

On January 23, 1995, Carmelita Fudot presented a deed of sale allegedly executed by the Tecsons in her favor on December 19, 1986, for registration. While responding to her application, Cattleya Land, Inc. protested her registration due to their existing sales agreements. Despite this, the Register of Deeds subsequently registered Fudot's deed, issuing a new title in her name.

Trial Court Proceedings

On May 5, 1995, Cattleya Land, Inc. filed a Complaint for Quieting of Title and other reliefs in the Regional Trial Court. Asuncion Tecson intervened in the case, asserting that her signature on Fudot’s deed of sale was forged and claiming the sale was null. The trial court ruled in favor of Cattleya Land, confirming that Fudot's deed was invalid due to forgery and granting a quiet title to Cattleya Land.

Court of Appeals Decision

Upon appealing to the Court of Appeals, Fudot contended that the rule on double sale applied, but the appellate court denied her appeal. The decision emphasized that since Fudot's sale was void due to forgery, no double sale existed. The Court of Appeals also underscored that Cattleya Land's registration of its claim was in good faith, restoring its rights to the property.

Issues Presented

Petitioner Fudot raised several issues:

  1. The determination of who possessed a better right to the property between herself, claiming first sale rights, and Cattleya Land, the second buyer.
  2. Whether a buyer failing to demand the delivery of the owner’s duplicate certificate could still be deemed a buyer in good faith.
  3. The applicable law governing situations of registration, highlighting differing views between the Civil Code and P.D. No. 1529.

Arguments from the Parties

Fudot argued that she was the first buyer in good faith, possessing the owner’s copy of the title, while alleging that Cattleya Land had knowledge of title issues, disputing its claim to good faith. Cattleya Land countered that Fudot's claims were irrelevant, given her reliance on a fraudulent transaction, hence, nullifying her position in the registration hierarchy.

Ruling on Ownership and Registration

The Supreme Court held Fudot’

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