GR No. 168078, January 13, 2016 Fabiano Cahayag and Conrado Rivera (Petitioners) v Commercial Credit Corp. et al (Respondents) GR No. 168357 January 13, 2016 Dulos Realty and Development et al (Petitioners) v Commercial Credit Credit Corp. et al (Respondents) First Division Ponente: Sereno, .J. annu#!ent o$ S%eri$$&s sa#e an' ot%er ot%er 'o(u!ents. Nature of Action: o!"#aint $or annu#!ent FAC!"
Petitioner Du#os Rea#ty )as t%e re*istere' o)ner o$ (ertain resi'entia# #ots (overe' +y rans$er erti$i(ate o$ it#e - Nos. S/3767, S/3775, S/28335, S/3778 an' S/2776, #o(ate' at ir!ens i##a* i##a*ee Su+'ivis Su+'ivision, ion, Pu#an* 4u"a , 4as Pinas, etro ani#a. ani#a. Du#os Du#os Rea#ty o+taine' o+taine' a #oan $ro! res"on'ent in t%e a!ount o$ P300,000. o se(ure t%e #oan, t%e rea#ty ee(ute' a Rea# state ort*a*e over t%e su+9e(t "ro"erties in $avor o$ res"on'ent. %e !ort*a*e )as 'u#y annotate' on t%e (erti$i(ates o$ tit#e. %erea$ter, on various 'ates, entere' into (ontra(t to se## (overin* t%e su+9e(t "ro"erties )it% "etitioners. %en Du#os Rea#ty 'e$au#te' in "ay!ent, initiate an etra 9u'i(ia# $ore(#osure "ro(ee'in* an' t%e au(tion sa#e )as %e#' )it% as t%e %i*%est +i''er. n $$i'avit o$ onso#i'ation in $avor o$ res"on'ent )as annotate' on t%e (orres"on'in* tit#es to t%e "ro"erties. ;y virtue o$ t%e a$$i'avit, t%e &s in t%e na!e o$ Du#os Rea#ty )ere a## (an(e##e' an' ne) &S in t%e na!e na!e o$ )ere issue' issue' on t%e sa!e 'ay. 'ay. ua t%e sa!e su+9e(t "ro"erties. %e sa#e )as 'u#y annotate' on t%e (orres"on'in* tit#es to t%e "ro"erties an' t%e &s in t%e na!e o$ )ere a((or'in*#y (an(e##e' an' ne) s )ere issue' in t%e na!e o$ res"on'ent >ua. Petitioners $i#e' a o!"#aint a*ainst res"on'ents $or t%e ?nnu#!ent o$ S%eri$$s Sa#e an' ua.
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%et%er or not t%e (ontra(t o$ sa#e entere' into +y Du#os Rea#ty )it% "etitioner ;a#'o=a is va#i'.
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Bes t%e sa#e is va#i'. %e ourt ru#es out o)ners%i" as a re@uire!ent $or t%e "er$e(tion o$ a (ontra(t o$ sa#e. For a## t%at is re@uire' is a !eetin* o$ t%e !in's u"on t%e o+9e(t o$ t%e (ontra(t an' t%e "ri(e. %e $a(t t%at Du#os Rea#ty )as no #on*er t%e o)ner o$ t%e rea# "ro"erty at t%e ti!e o$ t%e sa#e #e' t%e to 'e(#are t%at t%e ontra(t o$ Sa#e )as nu## an' voi'. ua %a' a +etter tit#e to t%e "ro"erty over "etitioner ;a#'o=a. e $in' no error in t%e (on(#usion o$ t%e t%at res"on'ent >ua %as a +etter ri*%t to t%e "ro"erty. %e "ro+#e! #ies )it% its reasonin*. e t%ere$ore taAe a 'i$$erent route to rea(% t%e sa!e (on(#usion. Cn'enia+#y, Cn'enia+#y, t%ere is an esta+#is%e' ru#e un'er t%e #a) on sa#es t%at one (annot *ive )%at one 'oes not %ave - Nemo dat quod non habet . habet . %e , %o)ever, (on$uses t%e a""#i(ation o$ t%is ru#e )it% res"e(t to ti!e. t !aAes t%e nemo dat quod non habet ru#e ru#e a re@uire!ent $or t%e perfection t%e perfection o$ o$ a (ontra(t o$ sa#e, su(% su(% t%at t%at a vio# vio#at atio ion n t%ere t%ereo$ o$ *oes *oes into into t%e t%e va#i va#i'i 'ity ty o$ t%e t%e sa#e sa#e.. ;ut ;ut t%e t%e 4ati 4atin n "re( "re(e" e"tt %as %as +een +een 9uris"ru'entia##y 9uris"ru'entia##y %e#' to a""#y to a (ontra(t o$ sa#e at its (onsu!!ation sta*e, an' not at t%e "er$e(tion sta*e. Cavite Development Bank v. Spouses Syrus Lim "uts ne!o 'at @uo' non %a+et in its "ro"er "#a(e. nitia##y, t%e ourt ru#es out o)ners%i" as a re@uire!ent $or t%e "er$e(tion o$ a (ontra(t o$ sa#e. For a##
t%at is re@uire' is a !eetin* o$ t%e !in's u"on t%e o+9e(t o$ t%e (ontra(t an' t%e "ri(e. %e (ase t%en "ro(ee's to *ive ea!"#es o$ t%e ru#e. t (ites rti(#e 13 o$ t%e ivi# o'e, )%i(% "rovi'es t%at in (ase t%e se##er 'oes not o)n t%e su+9e(t !atter o$ t%e (ontra(t at t%e ti!e o$ t%e sa#e, +ut #ater a(@uires tit#e to t%e t%in* so#', o)ners%i" s%a## "ass to t%e +uyer. %e ourt a#so re$ers to t%e ru#e as t%e rationa#e +e%in' rti(#e 162, )%i(% 'ea#s )it% sa#e o$ ?$uture *oo's.? ase #a) a#so "rovi'es t%at t%e $a(t t%at t%e se##er is not t%e o)ner o$ t%e su+9e(t !atter o$ t%e sa#e at t%e ti!e o$ "er$e(tion 'oes not !aAe t%e sa#e voi'. onse@uent#y, it )as not (orre(t $or t%e to (onsi'er t%e (ontra(t o$ sa#e voi'. %e erroneous#y (onsi'ere' #a(A o$ o)ners%i" on t%e "art o$ t%e se##er as %avin* an e$$e(t on t%e va#i'ity o$ t%e sa#e. %e sa#e )as very !u(% va#i' )%en t%e Dee' o$ +so#ute Sa#e +et)een t%e "arties )as ee(ute' on 10 De(e!+er 183, even t%ou*% tit#e to t%e "ro"erty %a' ear#ier +een (onso#i'ate' in $avor o$ res"on'ent as ear#y as 10 Nove!+er 183. %e $a(t t%at Du#os Rea#ty )as no #on*er t%e o)ner o$ t%e "ro"erty in @uestion at t%e ti!e o$ t%e sa#e 'i' not a$$e(t t%e va#i'ity o$ t%e (ontra(t. n t%is (ase, t%e 'e#ivery (oin(i'e' )it% t%e "er$e(tion o$ t%e (ontra(t. %e Dee' o$ +so#ute Sa#e (overin* t%e rea# "ro"erty in $avor o$ "etitioner ;a#'o=a )as ee(ute' on 10 De(e!+er 183. s a#rea'y !entione', Du#os Rea#ty )as no #on*er t%e o)ner o$ t%e "ro"erty on t%at 'ate. ((or'in*#y, it (ou#' not %ave va#i'#y trans$erre' o)ners%i" o$ t%e rea# "ro"erty it %a' so#' to "etitioner.
Thus, the correct conclusion that should be made is that while there was a valid sale, there was no valid transfer of title to Baldoza, since Dulos Realty was no longer the owner at the time of the execution of the Deed of Absolute Sale.
