CARBONELL v CA

FACTS: Poncio, a Batanes native, owned a parcel of land, which he offere

d to sell to Carbonell and Infante. The land was mortgaged to Republic Bank. P
oncio and Carbonell agreed to the sale of the land, and the latter assumed to
pay the mortgage in favor of the bank. Poncio and Carbonell executed an
instrument where the latter allowed the former to remain in the premises in sp
ite of the sale for a period of 1 year. Later on, when the Formal Deed of Sale w
as to be executed, Poncio told Carbonell that he could no longer proceed with th
e sale as he had already sold the same to Infante for a better price. Carbonell
immediately sought to register adverse claim; 4 days later, Infante registered
the sale with the adverse claim annotated thereto. Infante thereafter introduced
significant improvements on the property. They now dispute ownership over
the said land.
ISSUE: Who has a better title, Carbonell or Infante?
HELD: CARBONELL. In order to claim the benefit of Art.
1544, the buyer of realty must register the property in good faith. It is a p
re-condition to a superior title. In this case, Infante was not in good faith
, thus the prior sale to Carbonell must prevail. Infante registered her c
laim 4 days after the adverse claim was registered, she had notice that Carbonel
l paid off the mortgage debt as the mortgage passbook was already in his
possession. She likewise ignored Carbonell and refused to talk to here.
These are badges of bad faith that taint her registration.