SPOUSES SEFRINO Vs CA
SPOUSES SEFRINO Vs CA
SPOUSES SEFRINO Vs CA
CA
FACTS: On 25 August 1937, a parcel of land was patented in the name of Pacifico Casamayor (OCT 1839).
On 14 December 1945, he sold said land in favor of Nemesia D. Balatazar (TCT No. 57-N, 18 January
1946). OCT 1839 was lost during the war and upon petition of Nemesia Baltazar, the Court of First
Instance of Negros Occidental ordered the reconstitution thereof. Pursuant thereto, OCT 14-R (1839)
was issued on 18 January 1946 in the name of Pacifico Casamayor. On that same day, TCT 57-N was
issued in the name of Nemesia Baltazar but after the cancellation of OCT 14-R (1839). On 15 August
1951, Nemesia Baltazar, sold said property to Lopez Sugar Central Mill Co., and the latter did not present
the documents for registration until 17 December 1964 to the Office of the Registry of Deeds. Said office
refused registration upon its discovery that the same property was covered by another certificate of
title, TCT 38985, in the name of Federico Serfino.
On 19 November 1964, the spouses Serfinos mortgaged the land to the Philippine National Bank (PNB)
to secure a loan in the amount of P5,000.00; which was inscribed in TCT No. 38985. The Lopez Sugar
Central instituted an action to recover said land; and the lower court rendered a decision ordering the
cancellation of TCT No. 38985; issuance of a new TCT in the name of plaintiff; and the payment of the
plaintiff PNB the loan of spouses Serfinos secured by said land. Both parties appealed from this decision
of the trial court. Ruling on the assignment of errors, the appellate court affirmed the judgment of the
trial court with modification in its decision setting aside the decision of the trial court declaring plaintiff
liable to PNB for payment, however, ordering the plaintiff to reimburse the Serfino spouses of the sum
P1,839.49, representing the unpaid taxes and penalties paid by the latter when they repurchased the
property. Hence, the appeal by the spouses Serfino and PNB to the Supreme Court.
ISSUE: Whether or not the auction sale of the disputed property was null and void? (YES)
RULING: They argue that since private respondent is a corporation, it is barred from owning land
granted under the free patent if the aforementioned requisites are not present. Such contentions do not
merit our approval. It is not disputed that the original grantee was Pacifico Casamayor who obtained a
Homestead Patent and later an original certificate of title in his name. Later it was this original grantee
who sold the land in question to Nemesia Baltazar on December 14, 1945 or more than eight (8) years
after he obtained his homestead patent on August 25, 1937. On these facts, We now apply Sec. 118 of
Commonwealth Act No. 141 which prohibits the alienation of homestead lots to private individual within
five (5) years from the date of the issuance of the patent and not Sec, 121 which governs sale to
corporations. Since the grant was more than five (5) years before, the transfer to Nemesia Baltazar was
valid and legal. Nemesia Baltazar who became the titled or registered owner as evidenced by TCT No.
57-N, could exercise acts of ownership over the land such as disposing of it to private respondent by a
deed of sale.