Garcia vs. Court of Appeals
Garcia vs. Court of Appeals
Garcia vs. Court of Appeals
*
Nos. L-48971 & 49011. January 22, 1980.
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* SECOND DIVISION
381
earlier in date prevails, whether the land comprised in the latter certificate
be wholly, or only in part, comprised in the earlier certificate”.
Same; Same.—And the rule that in case of double registration the
owner of the earner certificate is the owner of the land applies to the
successive vendees of the owners of such certificates. The vendee of the
earlier certificate would be the owner as against the vendee of the owner of
the later certificate” (Legarda and Prieto vs. Saleeby, supra, pages 597-9).
Same; In case of involuntary registration an entry in the day book is
sufficient notice.—That ruling was superseded by the holding in the later six
cases of Levin vs. Bass, 91 Phil. 420, where a distinction was made between
voluntary and involuntary registration, such as the registration of an
attachment, levy upon execution, notice of lis pendens, and the like. In cases
of involuntary registration, an entry thereof in the day book is a sufficient
notice to all persons even if the owner’s duplicate certificate of title is not
presented to the register of deeds.
Same; In voluntary registration, the buyer becomes the registered
owner the moment the deed is entered in the day book and he surrenders the
owner’s duplicate certificate of title and pays the fees.—On the other hand,
according to the said cases of Levin vs. Bass, in case of voluntary
registration of documents an innocent purchaser for value of registered land
becomes the registered owner, and, in contemplation of law the holder of a
certificate of title, the moment he presents and files a duly notarized and
valid deed of sale and the same is entered in the day book and at the same
time he surrenders or presents the owner’s duplicate certificate of title
covering the land sold and pays the registration fees, because what remains
to be done lies not within his power to perform. The register of deeds is duty
bound to perform it. (See Potenciano vs. Dineros, 97 Phil. 196.)
Same; In the case at bar a new title was issued to the purchaser.—The
instant case is not identical to the Bass cases. Here the deed of sale in favor
of Lapus, which was judicially authorized, was entered in the entry book
and a new title was issued to him. As already stated, and this point should be
underscored, the deed of sale in favor of Lapus contains the notation that it
was annotated on the
382
back of OCT No. 983 (presumably, the original and owner’s duplicate
thereof).
Same; In the case at bar the transaction subsequently made by the first
transferee on the land in question were matters of public record, e.g.
mortgage made to PNB.—It should be further observed that the deed of sale
in favor of Lapus and the titles issued to him and his successors-in-interest,
together with his mortgage in 1929 of the disputed lots to the PNB itself, are
all a matter of public record in the registry of deeds.
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AQUINO, J.:
383
“Presentado en este Registro a las 2:25 de la tarde del dia de hoy segun el
Asiento No. 7710 de Tomo 10 del Libro Diario, Pasig, Rizal, Enero 15,
1920.
384
385
386
Garcia contends that the Court of Appeals erred in not holding that
his title is valid and that the titles of Ismael Lapus and his daughter,
Mrs. Gozon, are void because the sale to Lapus was not annotated
on OCT No. 983.
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The PNB contends that the Court of Appeals erred in not holding
that its title is valid, that it is mortgagee and buyer in good faith and
for value and that Lapus and his successors-ininterest lost their right
to the disputed lots due to their negligence or inaction.
The issue is whether the 1920 title issued to Lapus and the titles
derived therefrom should prevail over the 1963 title issued to the
Riveras and the subsequent titles derived from it. Should Lapus’ title
prevail even if it was not annotated by the register of deeds on the
anterior or parent title which was not cancelled before 1963? It was
that noncancellation which led to the issuance of the duplicative title
to the Riveras and eventually to the execution of the controversial
mortgages and foreclosure sales to the two banks.
We hold that the two appeals have no merit. The title of Lapus
and the titles derived therefrom should be given effect. The title of
the Riveras and the titles springing from it are void.
387
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the later certificate” (Legarda and Prieto vs. Saleeby, supra, pages
597-9).
It is settled that is this jurisdiction the maxim prior est in
tempore, potior est in jure (he who is first in time is preferred in
right) is followed in land registration matters (La Urbana vs.
Bernardo, 62 Phil. 790, 806).
Appellant Garcia invokes the ruling that the mere entry of a
document in the day or entry book without noting it on the cer-
388
lots to the PNB itself, are all a matter of public record in the registry
of deeds.
As stressed in Legarda and Prieto vs. Saleeby, 31 Phil. 590, 600,
“the record is notice to all the world. All persons are charged with
the knowledge of what it contains. All persons dealing with the land
so recorded, or any portion of it, must be charged with notice of
whatever it contains. The purchaser is charged with notice of every
fact shown by the record and is presumed to know every fact which
the record discloses.”
“When a conveyance has been properly recorded, such record is
constructive notice of its contents and all interests, legal and
equitable, included therein.” “Under the rule of notice, it is
presumed that the purchaser has examined every instrument of
record affecting the title. Such presumption is irrefutable. He is
charged with notice of every fact shown by the record and is
presumed to know every fact which an examination of the record
would have disclosed” (Legarda and Prieto vs. Saleeby, supra, page
600).
As Justice Johnson says, “this presumption cannot be overcome
by proof of innocence or good faith. Otherwise, the very purpose
and object of the law requiring a record would be destroyed. Such
presumption cannot be defeated by proof of want of knowledge of
what the record contains any more than one may be permitted to
show that he was ignorant of the provisions of the law. The rule that
all persons must take notice of the facts which the public record
contains is a rule of law. The rule must be absolute. Any variation
would lead to endless confusion and useless litigation” (Legarda and
Prieto vs. Saleeby, supra, pp. 600-601).
As to the PNB’s claim that it was a mortgagee and purchaser in
good faith and for value, the Appellate Court held that the bank
should have made an on-the-spot investigation of the lot mortgaged
by Go to ascertain whether he was in possession of it or it was
claimed by other persons. Its failure to do so precludes the bank
from being considered as a mortgagee in good faith and for value
(Gatioan vs. Gaffud, L21953, March 28, 1969, 27 SCRA 706).
On the other hand, the trial court held that the PNB was not a
buyer in good faith when it bought Go’s lot at the auction
390
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391
SO ORDERED.
Decision affirmed.
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392
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