Domingo vs.

Robles

Facts:

Petitioner wants to dispose her property located in Marikina. Bacani volunteered to act as petitioner's agent in selling
the lot. Petitioner delivered her owner's copy of TCT to Bacani. Thereafter, the TCT was said to have been lost. In its
reconstitution, petitioner gave Bacani all her receipts of payment for real estate taxes. Bacani also asked petitioner to
sign what she recalled was a record of exhibits. Petitioner waited patiently but Bacani did not show up any more. Later,
petitioner visited the lot and was surprised to see the respondents starting to build a house on the subject lot.
Verification with ROD revealed that the lost title has already been reconstituted and cancelled with the registration of
deed of sale executed by the petitioner in favor of the respondent. A transfer of certificate of title was also issued to the
respondent.

Petitioner claimed not to have met any of the respondents nor having signed any sale over the property in favor of
anybody. Petitioner alleged that the Deed of Absolute Sale is a forgery and therefore could not validly transfer
ownership of the lot to the respondents.

Respondent contented that she is a buyer in good faith and for value; that the lot was offered to them by Bacani, as the
agent of the petitioner. That after some time when they were already prepared to buy the lot, Bacani introduced to
them the supposed owners and agreed on the sale. Bacani and the introduced seller presented a Deed of Absolute Sale
already signed by the petitioner needing only respondents signature. That she paid full purchase price and the original
of the owner's duplicate of Transfer Certificate of Title was given to her.

Petitioner filed a case for the nullity and reconveyance. RTC dismiss the complaint. CA affirmed lower courts decision.

Issue:

Whether or not the petitioner is entitled to her claims.

Held:

No.

Notarized instrument enjoys a prima facie presumption of authenticity and due execution. Clear and convincing
evidence must be presented to overcome such legal presumption. Forgery cannot be presumed. Bare allegations,
unsubstantiated by evidence, are not equivalent to proof. ITC, it was incumbent upon petitioner to prove her
allegations. However, the petitioner failed to do so.

The sale was admittedly made with the aid of Bacani, petitioner's agent, who had with him the original of the owner's
duplicate Certificate of Title to the property, free from any liens or encumbrances. The signatures of Spouses Domingo,
the registered owners, appear on the Deed of Absolute Sale. Petitioner's husband met with Respondent Yolanda Robles
and received payment for the property.

The Torrens Act requires, as a prerequisite to registration, the production of the owner's certificate of title and the
instrument of conveyance. The registered owner who places in the hands of another an executed document of transfer
of registered land effectively represents to a third party that the holder of such document is authorized to deal with the
property.
Rural Bank of Milaor v. Ocfemia

Facts:

Several parcels of land were mortgaged by the respondents during the lifetime of the respondents grandparents to the
Rural bank of Milaor as shown by the Deed of Real Estate Mortgage and the Promissory Note. Spouses Felicisimo
Ocfemia and Juanita Ocfemia, one of the respondents, were not able to redeem the mortgaged properties consisting of
seven parcels of land and so the mortgage was foreclosed and thereafter ownership was transferred to the petitioner
bank.

Out of the seven parcels of land that were foreclosed, five of them are in the possession of the respondents because
these five parcels of land were sold by the petitioner bank to the respondents as evidenced by a Deed of Sale. However,
the five parcels of land cannot be transferred in the name of the parents of Merife Nino, one of the respondents,
because there is a need to have the document of sale registered.

The Register of deeds, however, said that the document of sale cannot be registered without the board resolution of the
petitioner bank confirming both the Deed of sale and the authority of the bank manager, Fe S. Tena, to enter such
transaction. The petitioner bank refused her request for a board resolution and made many alibis.

Respondents initiated the present proceedings so that they could transfer to their names the subject five parcel of land
and subsequently mortgage said lots and to use the loan proceeds for the medical expenses of their ailing mother.

ISSUE:

May the Board of Directors of a rural banking corporation be compelled to confirm a deed of absolute sale of real
property owned by the corporation which deed of sale was executed by the bank manager without prior authority of the
board of directors of the rural banking corporation?

HELD:

YES. The bank acknowledges, by its own acts or failure to act, the authority of Fe S. Tena to enter into binding contracts.
After the execution of the Deed of Sale, respondents occupied the properties in dispute and paid the real estate taxes. If
the bank management believed that it had title to the property, it should have taken measured to prevent the
infringement and invasion of title thereto and possession thereof. Likewise, Tena had previously transacted business on
behalf of the bank, and the latter had acknowledged her authority.

A bank is liable to innocent third persons where representation is made in the course of its normal business by an agent
like Manager Tena even though such agent is abusing her authority. Clearly, persons dealing with her could not be
blamed for believing that she was authorized to transact business for and on behalf of the bank.

The bank is estopped from questioning the authority of the bank to enter into contract of sale. If a corporation
knowingly permits one of its officers or any other agent to act within the scope of an apparent authority, it holds the
agent out to the public as possessing the power to do those acts; thus, the corporation will, as against anyone who has
in good faith dealt with it through such agent, be estopped from denying the agents authority.