Borromeo v.

Descallar
Facts:

Wilhelm Jambrich, an Austrian, met Antonietta Descallar (respondent), a Filipina, while the
former was working in the Philippines sometime in 1983. The two became sweetheart, and later
cohabited as husband and wife without the benefit of marriage.
During their cohabitation, the two acquired some real properties in the Philippines composed of
several houses and lots which they bought from Agro-Macro Development Corporation. The
deed of sale of said real properties were placed in the name of both Jambrich and Descallar as
buyers, but were registered under the Torrens system in the name of Descallar alone as Jambrich
is disqualified to own real properties in the country. It is sufficiently established though that the
funds used to buy said properties came solely from Jambrich, as Descallar has no sufficient
source of income.
After their relationship has turned sour and the two went their separate ways, Jambrich sold his
rights and interests in the Agro-Macro properties to Camilo Borromeo (the petitioner), a Filipino,
evidenced by a Deed of Absolute Sale/Assignment. When Borromeo, the buyer, tried to register
the properties in his name, he discovered that it is registered in the name of Descallar, and that it
has already been mortgaged.
Borromeo filed a complaint for recovery of real property against Descallar.
Issues:

1. Having established that the true buyer of the disputed properties was the Austrian Wilhelm
Jambrich, what is the effect of registration of the properties in the name of respondent Descallar?
2. Whether the sale or assignment made by Jambrich to Borromeo valid considering that the
former as alien is disqualified to own real properties in the Philippines?
Held:

1. The registration of the properties in question in the name of Descallar does not make her the
owner of the said properties. It is settled that registration is not a mode of acquiring ownership.
It is only a means of confirming the fact of its existence with notice to the world at large.
Certificates of title are not a source of right. The mere possession of a title does not make one the
true owner of the property. Thus, the mere fact that respondent has the titles of the disputed
properties in her name does not necessarily, conclusively and absolutely make her the owner.
(Borromeo vs. Descallar, ibid.)
2. Given that aliens are disqualified to own real properties in the country, [t]herefore, in the
instant case, the transfer of land from Agro-Macro Development Corporation to Jambrich, who is
an Austrian, would have been declared invalid if challenged, had not Jambrich conveyed the

properties to petitioner who is a Filipino citizen. In United Church Board for World Ministries v.
Sebastian (G.R. No. L-34672, March 30, 1988, 159 SCRA 446), the Court reiterated the