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The court a quo found that the two (2) cases varied only in the identity of the subject
matter of res involved, the transferees, the dates of the conveyances but involve the
same legal question of reserva troncal. Hence, the consolidation of the two (2)
cases.
After trial, the court a quo rendered a joint decision in favor of the Balantakbos.
This decision was appealed to the appellate court which affirmed the decision of the
court a quo in toto. The motion for reconsideration was denied by the appellate
court which found no cogent reason to reverse the decision.
ISSUE #1: The trial court erred in not finding defendants an (sic) innocent
purchaser for value and in good faith of the properties covered by certificates of
title subject of litigation. (NO)
HELD: According to petitioners, before they agreed to buy the properties from the
reservor (also called reservista), Consuelo Joaquin vda. de Balantakbo, they first
sought the legal advice of their family consultant who found that there was no
encumbrance nor any lien annotated on the certificate of title coveting the properties.
The court a quo found otherwise. Upon the death of the propositus, Raul Balantakbo,
the reservista, Consuelo vda. de Balantakbo caused the registration of an affidavit of
self-adjudication of the estate of Raul, wherein it was clearly stated that the properties
were inherited by Raul from his father Jose, Sr., as regards the subject matter of Civil
Case No. SC-956 and from his maternal grandmother, Luisa Bautista, as regards the
subject matter of Civil Case No. SC-957. The court a quo further ruled that said
affidavit was, in its form, declaration and substance, a recording with the Registry of
Deeds of the reservable character of the properties. In Spanish language, the affidavit
clearly stated that the affiant, Consuelo, was a lone-ascendant and heir to Raul
Balantakbo, her son, who died leaving properties previously inherited from other
ascendants and which properties were inventoried in the said affidavit.
It was admitted that the certificates of titles covering the properties in question show
that they were free from any liens and encumbrances at the time of the sale. The fact
remains however, that the affidavit of self-adjudication executed by Consuelo stating
the source of the properties thereby showing the reservable nature thereof was
registered with the Register of Deeds of Laguna, and this is sufficient notice to the
whole world in accordance with Section 52 of the Property Registration Decree
(formerly Sec. 51 of R.A. 496) which provides:
Sec. 52. CONSTRUCTIVE NOTICE UPON REGISTRATION. Every
conveyance, mortgage, lease, lien attachment, order, judgment, instrument
or entry affecting registered land shall, if registered, filed or entered in the
Office of the Register of Deeds for the province or city where the land to
which it relates lies, be constructive notice to all persons from the time of
such registering, filing or entering..
Under the rule of notice, it is presumed that the purchaser has examined every
instrument of record affecting the title. Such presumption is irrebuttable. 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.
In the case of Bass v. De la Rama, 73 Phil. 682, 685, the rule was laid down that the
mere entry of a document in the day book without noting it on the certificate of title is
not sufficient registration. However, that ruling was superseded by the holding in the
later six cases of Levin v. Bass, 91 Phil. 420. As explained in Garcia v. CA, et al., G.R.
Nos. L-48971 and 49011, January 20, 1980, 95 SCRA 380, 388, which is the prevailing
doctrine in this jurisdiction, 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.
On the other hand, according to the said cases of Levin v. 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 v. Dineros, 97 Phil. 196).
In this case, the affidavit of self adjudication executed by Consuelo vda. de
Balantakbo which contained a statement that the property was inherited from a
descendant, Raul, which has likewise inherited by the latter from another
ascendant, was registered with the Registry of Property. The failure of the
Register of Deeds to annotate the reservable character of the property in the
certificate of title cannot be attributed to Consuelo.
Moreover, there is sufficient proof that the petitioners had actual knowledge of
the reservable character of the properties before they bought the same from
Consuelo. This matter appeared in the deed of sale (Exhibit "C") executed by
Consuelo in favor of Mariquita Sumaya, the first vendee of the property litigated in Civil
Case No. SC-956, as follows:
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That, I (Consuelo, vendor) am the absolute and exclusive owner of the onethird (1/3) portion of the above described parcel of land by virtue of the
Deed of Extra-judicial Partition executed by the Heirs of the deceased Jose
Balantakbo dated December 10, 1945 and said portion in accordance with
the partition above-mentioned was adjudicated to Raul Balantakbo, single,
to (sic) whom I inherited after his death and this property is entirely free
from any encumbrance of any nature or kind whatsoever, . . . (p. 42, Rollo)
It was admitted though that as regards the properties litigated in Civil Case SC-957, no
such admission was made by Consuelo to put Villa Honorio Development on notice of
the reservable character of the properties. The affidavit of self-adjudication executed
by Consuelo and registered with the Registry would still be sufficient notice to bind
them.
Moreover, the Court a quo found that the petitioners and private respondents
were long time acquaintances; that the Villa Honorio Development Corporation and
its successors, the Laguna Agro-Industrial Coconut Cooperative Inc., are family
corporations of the Sumayas and that the petitioners knew all along that the properties
litigated in this case were inherited by Raul Balantakbo from his father and from his
maternal grandmother, and that Consuelo Vda. de Balantakbo inherited these
properties from his son Raul.
ISSUE #2: The trial court erred in finding it unnecessary to annotate the
reservable interest of the reservee in the properties covered by certificates of
title subject of litigation. (YES)
HELD: The obligation to reserve rests upon the reservor, Consuelo Joaquin vda. de
Balantakbo. Article 891 of the New Civil Code on reserva troncal provides:
Art. 891. The ascendant who inherits from his descendant any property
which the latter may have acquired by gratuitous title from another
ascendant or a brother or sister, is obliged to reserve such property as he
may have acquired by operation of law for the benefit of relatives who are
within the third degree and who belong to the line from which said property
came. (Emphasis supplied)
We do not agree, however, with the disposition of the appellate court that there
is no need to register the reservable character of the property, if only for the
protection of the reservees, against innocent third persons. This was suggested
as early as the case of Director of Lands v. Aguas, G.R. No. 42737, August 11, 1936,
63 Phil. 279. In an obiter dictum this Court stated therein:
The reservable character of a property is but a resolutory condition of the
ascendant reservor's right of ownership. If the condition is fulfilled, that is, if
upon the ascendant reservor's death there are relatives having the status
provided in Article 811 (Art. 891, New Civil Code), the property passes, in
accordance with this special order of succession, to said relatives, or to the
nearest of kin among them, which question not being pertinent to this case,
need not now be determined. But if this condition is not fulfilled, the
property is released and will be adjudicated in accordance with the regular
their place in the succession of the descendant of whom they are relatives within the
third degree.
The reserva is extinguished upon the death of the reservor, as it then becomes a right
of full ownership on the part of the reservatarios, who can bring a reivindicatory suit
therefor. Nonetheless, this right if not exercised within the time for recovery may
prescribe in ten (10) years under the old Code of Civil Procedure or in thirty years
under Article 1141 of the New Civil Code. The actions for recovery of the reserved
property was brought by herein private respondents on March 4, 1970 or less than two
(2) years from the death of the reservor. Therefore, private respondents' cause of
action has not prescribed yet.
ISSUE #4: The trial court erred in awarding moral and actual damages in favor of
the plaintiffs by virtue of the institution of Civil Cases Nos. 956 and 957. (NO)
HELD: Finally, the award of one thousand pesos (P1,000.00) for actual litigation
expenses and two thousand pesos (P2,000.00) for attorney's fees is proper under
Article 2208(2) of the New Civil Code. Private respondents were compelled to go to
court to recover what rightfully belongs to them.
property left by Jose Riosa, the eleven parcels of land described in the complaint
being assigned to Maria Corral.
Maria Corral sold parcels Nos. 1, 2, 3, 4, 5, 6, 10 and 11 to Marcelina Casas for
the sum of P20,000 in a public instrument which was recorded in the registry of
deeds.
Marcelina Casas sold these eight parcels of land to Pablo Rocha for the sum of
P60,000 in a public document which was recorded in the registry of deeds.
Pablo Rocha returned parcels No. 1, 2, 3, 4, and 6 to Maria Corral stating in the
deed executed for the purpose that these parcels of land had been erroneously
included in the sale made by Maria Corral to Marcelina Casas.
CFI denied the probate of the will of Jose Riosa, but on appeal this court
reversed the decision of the lower court and allowed the will to probate. At the
time of the partition, Maria Corral and Marcelina Casas submitted to the court the
contract of extrajudicial partition which they had entered into and which was
approved by the court, by order of as though it had been made within the said
testamentary proceedings.
From the foregoing it appears that the eleven parcels of land described in the
complaint were acquired by Jose Riosa, by lucrative title, from his father Mariano
Riosa and that after the death of Jose Riosa, by operation of law, they passed to
his mother Maria Corral. By virtue of article 811 of the Civil Code these eleven
parcels of land are reservable property. It results, furthermore, that parcels 1, 2,
3, 4, 5, 6, 7, 8 and 9 still belong in fee simple to Maria Corral, and that parcels 10
and 11 were successively sold by Maria Corral to Marcelina Casas and by the
latter to Pablo Rocha. Lastly, it appears that Magin and Consolacion Riosa are
the nearest relatives within the third degree of the line from which this property
came.
This action was brought by Magin Riosa, for whom the property should have
been reserved, against Maria Corral, whose duty it was to reserve it, and against
Marcelina Casas and Pablo Rocha as purchasers of parcels 10 and 11.
Consolacion Riosa de Calleja who was also bound to make the reservation was
included as a defendant as she refused to join as plaintiff.
favor of the reservees as surety for the conservation and maintenance of the
improvements existing on the said reservable property.
TC held:
That the eleven parcels of land described in paragraph 6 of the complaint have the character of
reservable property; 2. That the defendant Maria Corral, being compelled to make the reservation,
must reserve them in favor of the plaintiff Magin Riosa and the defendant Consolacion Riosa de
Calleja in case that either of these should survive her; 3. That Magin Riosa and Consolacion Riosa de
Calleja have the right, in case that Maria Corral should die before them, to receive the said parcels or
their equivalent.
n virtue whereof, the defendant Maria Corral is ordered: 1. To acknowledge the right of Magin Riosa
and Consolacion Riosa de Calleja to the reservation of the said parcels of lands described in the
complaint, which she shall expressly record in the registration of said lands in the office of the register
of deeds of this province; 2. To insure the delivery of said parcels of lands, or their equivalent, to
Magin Riosa and Consolacion Riosa de Calleja, should either of them survive her, either by a
mortgage thereon or by a bond in the amount of P30,000, without express pronouncement as to
costs. The other defendants are absolved from the complaint.
having passed to Maria Corral but from the date when the said partition was
approved by the court, that is, on November 12, 1920. In the case of Pavia vs. De la
Rosa (8 Phil., 70), this court laid down the same doctrine in the following language:
The provisions of Act No. 190 (Code of Civil Procedure) have annulled the
provisions of article 1003 and others of the Civil Code with regard to the pure
or simple acceptance of the inheritance of a deceased person or that made
with benefit of inventory and the consequences thereof.
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xxx
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The heir legally succeeds the deceased from whom he derives his right and
title, but only after the liquidation of the estate, the payment of the debts of
same, and the adjudication of the residue of the estate of the deceased, and in
the meantime the only person in charge by law to attend to all claims against
the estate of the deceased debtor is the executor or administrator appointed
by a competent court.
As has been indicated, parcels 10 and 11 described in the complaint were first sold
by Maria Corral to Marcelina Casas who later sold them to Pablo Rocha. In this
appeal it is urged that Marcelina Casas and Pablo Rocha, who were absolved by
the court below, be ordered to acknowledge the reservation as to parcels 10 and
11, acquired by them, and to have the said reservation noted on their titles. This
argument, of course, is useless as to Marcelina Casas for the reason that she
transferred all her rights to Pablo Rocha.
In accordance with article 977, Maria Corral, reservor, is obliged to have the
reservation noted in the registry of deeds in accordance with the provisions of the
Mortgage Law which fixes the period of ninety days for accomplishing it (article 199,
in relation with article 191, of the Mortgage Law). According to article 203 of the
General Regulation for the application of the Mortgage Law, this time must be
computed from the acceptance of the inheritance. But as this portion of the Civil
Code, regarding the acceptance of the inheritance, has been repealed, the time, as
has been indicated, must be computed from the adjudication of the property by the
court to the heirs, in line with the decision of this court hereinabove quoted. After the
expiration of this period the reservees may demand compliance with this obligation.
If Maria Corral had not transferred parcels 10 and 11 to another there would be no
doubt that she could be compelled to cause the reservable character of this
property to be noted in the registry of deeds. This land having been sold to
Marcelina Casas who, in turn, sold it to Pablo Rocha the question arises whether
the latter can be compelled to have this reservation noted on his title. This
acquisition by Pablo Rocha took place when it was the duty of Maria Corral to
make the notation of the reservation in the registry and at the time when the
* * * As already intimated, the provisions of the law tending to give efficacy to a reservation by
the widowed spouse mentioned in article 968 are applicable to the reserva troncal provided for
in article 811. But as these two reservations vary in some respects, these rules may be applied
to the reserva troncal only in so far as the latter is similar to a reservation by the widowed
spouse. In the reserva troncal the property goes to the reservor as reservable property and it
remains so until the reservation takes place or is extinguished. In a reservation by the widowed
spouse there are two distinct stages, one when the property goes to the widower without being
reservable, and the other when the widower contracts a second marriage, whereupon the
property, which theretofore has been in his possession free of any encumbrance, becomes
reservable. These two stages also affect differently the transfer that may be made of the
property. If the property is sold during the first stage, before becoming reservable, it is
absolutely free and is transferred to the purchaser unencumbered. But if the sale is made
during the second stage, that is, when the duty to reserve has arisen, the property goes to the
purchaser subject to the reservation, without prejudice to the provisions of the Mortgage Law.
This is the reason why the law provides that should the property be sold before it becomes
reservable, or before the widower contracts another marriage, he will be compelled to secure
the value of the property by a mortgage upon contracting a new marriage, so that the
reservation may not lose its efficacy and that the rights of those for whom the reservation is
made may be assured. This mortgage is not required by law when the sale is made after the
reservation will follow the property, without prejudice to the contrary provisions of the Mortgage
Law and the rights of innocent purchasers, there being no need to secure the value of the
property since it is liable for the efficacy of the reservation by a widowed spouse to secure the
value of the property sold by the widower, before becoming reservable are not applicable to
the reserva troncal where the property goes to the ascendant already reservable in character.
A sale in the case of reserva troncal might be analogous to a sale made by the widower after
contacting a second marriage in the case of a reservation by the widowed spouse.
Since Maria Corral did not appeal, we cannot modify the appealed judgment in so
far as it is unfavorable to her. As she has been ordered to record in the registry the
reservable character of the other parcels of land, the subject of this action, the
questions raised by the appellant as to her are decided.
Pablo Rocha is ordered to record in the registry of deeds the reservable character
of parcels 10 11, the subject of this complaint, without special pronouncement as to
costs.