Title
Supreme Court
Maltos vs. Heirs of Borromeo
Case
G.R. No. 172720
Decision Date
Sep 14, 2015
Sale of land within 5-year prohibitory period void; reversion to state proper but requires OSG action; heirs entitled to reconveyance; no reimbursement for improvements.

Case Summary (G.R. No. 172720)

Factual Background

Eusebio Borromeo was granted Free Patent No. 586681 for agricultural land in San Francisco, Agusan del Sur. Prior to the expiration of the five-year prohibitory period, he sold this land to Eliseo Maltos. After Borromeo's death in 1991, his heirs sought to nullify the sale and reconvey the property, asserting it was conducted during a prohibitory period that makes such transactions void under the Public Land Act.

Legal Proceedings

The heirs of Eusebio Borromeo initiated a Complaint for Nullity of Title and Reconveyance against the Maltos spouses and the Register of Deeds. The trial court dismissed the complaint on the grounds of the heirs' failure to prove their standing as heirs and ruled that the sale was void as it violated the five-year prohibitory period. The trial court determined that no title passed from Eusebio Borromeo to Eliseo Maltos, engendering the potential for reversion to the state.

Appeal and Decisions

The heirs of Borromeo appealed, presenting further evidence of their status as legal heirs. The Court of Appeals reversed the trial court's decision, asserting that the property should revert to the heirs as the sale was void, but noted that action for reversion required initiation by the Office of the Solicitor General.

Key Legal Principles

  1. Void Sale During Prohibitory Period: The five-year prohibition under Section 118 of the Public Land Act explicitly prevents the sale or encumbrance of land granted under free patents; any transaction violating this provision is null and void.

  2. Reversion to Public Domain: Although the sale is deemed void, reversion of the land to the public domain is not automatic. Per Section 101 of the Public Land Act, only the Solicitor General may initiate an action for reversion.

  3. Doctrine of In Par Delicto: This doctrine asserts that when two parties participate in an illegal contract, neither can seek legal relief from the courts. However, it does not apply when enforcing the principle would contravene public policy aimed at preserving property rights under the Public Land Act.

Court's Findings

The Supreme Court upheld the Court of Appeals' ruling but clarified that the reversion of the land is dependent upon an action initia

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