Title
Pilapil vs. Court of Appeals
Case
G.R. No. 55134
Decision Date
Dec 4, 1995
Felix Otadora's heirs sold portions of Lot 8734, leading to disputes over ownership. Petitioners' prior sale was upheld, invalidating subsequent transactions due to lack of good faith and constructive notice.

Case Summary (G.R. No. 7048)

Background Facts

Felix Otadora passed away in 1940, leaving behind a parcel of land which was subsequently partitioned among his heirs. In March 1962, Vitaliana and Agaton Otadora sold an undivided portion of the said land (18,626 square meters) to the petitioners. This sale was later annotated on the newly issued titles following a partition. However, the subsequent sales of their respective shares by Agaton and Vitaliana to other parties culminated in disputes over ownership.

Procedural History

After various transactions and transfers of ownership among family members, the petitioners filed a complaint on December 8, 1973, seeking to quiet title and recover ownership. The trial court ruled against the petitioners, stating that their sale was null and void due to noncompliance with legal registration requirements under the Land Registration Act.

Findings of the Court of Appeals

Upon appeal, the appellate court concluded that the petitioners could not claim ownership due to their failure to have the sale properly annotated, thus rendering it ineffectual. The court also ruled that the subsequent purchasers, Carmen and Maxima, could claim superior rights over the property sold to them by Agaton and Vitaliana, declaring them innocent purchasers for value.

Petitioners' Arguments

The petitioners contended that the appellate court's ruling was erroneous, arguing that the annotation of their sale should be respected, and that the validity of the subsequent sales was undermined by the prior transaction with them. They further claimed that the Otadoras should be held liable for selling the same property multiple times.

Supreme Court's Analysis

The Supreme Court evaluated the decisions of the lower courts concerning the registration of property transfers. It emphasized that the annotation of the deed of sale on the titles had not been undertaken according to the law, according to Section 55 of the Land Registration Act. However, the Court recognized that the subsequent vendors (Carmen and Maxima) were considered privies to the petitioners due to family relations, thereby creating constructive notice of the earlier sale.

Conclusion on Ownership

Based on the legal principles and facts, the Supreme Court overturned the appellate court'

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