Case Summary (A.C. No. 8450)
Background Facts
In November 2002, the Spouses Navarro secured a loan of P300,000.00 from Mercy Grauel (Grauel). As collateral, they signed a Promissory Note and a Real Estate Mortgage on their property on November 22, 2002. Grauel proposed an additional measure to execute a Deed of Absolute Sale to transfer ownership of the property to her in case of nonpayment, asserting it was merely a safeguard against lengthy foreclosure processes.
Execution and Notarization Issues
The Spouses Navarro complied with Grauel’s requests and signed the Deed of Absolute Sale. Grauel made several payment demands that went unanswered, leading her to suggest that ownership of the property be transferred to satisfy the loan. Atty. YgoAa later notarized the Deed of Absolute Sale on October 22, 2004, despite the fact that the other related documents were executed two years earlier.
Legal Response from the Spouses Navarro
Upon discovering the transfer of property title in Grauel's name, the Spouses Navarro filed an adverse claim and subsequently a criminal complaint against both Grauel and Atty. YgoAa for Estafa through Falsification of Public Document, as well as an administrative complaint against Atty. YgoAa. They contended that they were not fully informed about the terms of the transaction and that their signatures on the Deed of Absolute Sale had been forged.
Claims of Irregularities
In their complaint, the Spouses Navarro pointed out discrepancies in the Community Tax Certificates (CTCs) used in the notarized documents and reported that the Deed of Absolute Sale was not included in Atty. YgoAa's notarial report for the year 2004. Atty. YgoAa contended that the Deed was complete when presented to him, arguing that the Spouses Navarro did not challenge the authenticity of their signatures.
Investigations and Recommendations
The City Prosecutor dismissed the criminal complaint against Atty. YgoAa, finding no evidence of conspiracy with Grauel. However, they recommended pursuing charges against Grauel for deceitful practices. An investigation by Commissioner Mario V. Andres found that Atty. YgoAa failed to perform his notarial duties diligently, leading to the conclusion that the transactions involved a possible 'pactum commissorium.'
Penalties Proposed by IBP
The Investigating Commissioner recommended the revocation of Atty. YgoAa's notarial commission for two years and a suspension from legal practice for three to six months. The IBP Board of Governors upheld these recommendations, reiterating the importance of diligence in the notarial function to maintain public trust in notarized documents.
Rulings on Reconsideration
Atty. YgoAa's motions for reconsideration were denied, with the IBP finding that his challen
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Case Overview
- This case involves the Spouses Felix and Fe Navarro (Complainants) filing a complaint against Atty. Margarito G. YgoAa (Respondent) regarding the notarization of a Deed of Absolute Sale connected to a loan transaction.
- The core issue revolves around allegations of irregularities in the notarization process and the validity of the Deed of Absolute Sale.
Factual Background
- The Spouses Navarro owned a parcel of land in Cebu, identified by Tax Declaration No. 0137-7148.
- In November 2002, they secured a loan of P300,000.00 from Mercy Grauel, providing the subject property as collateral through a Promissory Note and a Real Estate Mortgage executed on November 22, 2002.
- Grauel proposed a Deed of Absolute Sale as additional security, which would be executed if the Spouses Navarro defaulted on the loan, admitting this proposal was to bypass a lengthy foreclosure process.
- Following missed payments, Atty. YgoAa sent a demand letter on September 24, 2004, on Grauel's instruction, for the loan repayment.
- On October 22, 2004, Atty. YgoAa notarized the Deed of Absolute Sale, enabling Grauel to transfer the tax declaration to her name.
Key Events Leading to the Complaint
- Upon discovering Grauel filed a civil case for Quieting of Title, the Spouses Navarro filed an adverse claim and subsequently a criminal complaint against Grauel and Atty. YgoAa for Estafa through Falsification of Public Document.
- The Spouses Navarro claimed they were pressured into signing the Deed of Absolute Sale, which they asserted was executed under duress, with blanks left in critical sections.
- Notably, the Promissory Note, Real Estate Mortgage, and Deed of Abso