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
consistent ruling in a number of cases that if land is invalidly
transferred to an alien who subsequently becomes a Filipino
citizen or transfers it to a Filipino, the flaw in the original
transaction is considered cured and the title of the
transferee is rendered valid.