PINO V.

CA FACTS:

FACTS:
A parcel of land in Echague, Isabela was bought by spouses Juan and
Rafaela Gaffud in 1924. On 1936 Juan died. The land was registered on 1938
and an OCT was issued in favor of Rafaela and his 2 sons Raymundo and Cicero
as co-owners. The lot was sold to Rafaela through a Deed of Transfer which
cancelled the OCT and in lieu thereof a TCT was issued in the name of Rafaela.
On 1967, Rafaela sold a portion of the lot to Pascua which caused the
subdivision of the lot to Lot-A and Lot-B which was issued its corresponding
TCTs. On 1970, Rafaela sold the Lot-B to Felicisima Pino evidenced by a
notarized Deed of Absolute Sale. It was registered and the corresponding TCT
was issued. On 1980 Cicero died and his wife Demetria and sons Romualdo and
Adolfo filed a complaint for nullity of sale and reconveyance against petitioner,
the portion sold to Pascua however was not questioned. During the pendency of
the case Rafaela died. In 1988 the trial court held that she was not a purchaser in
good faith and that the action to annul the deed of sale has not yet prescribed (4
years). This was affirmed by CA.
The decision of the CA affirming in toto the decision of the RTC of
Echague, Isabela is now being assailed in the instant petition for certiorari.
Lot 6 was acquired by the spouses Juan Gaffud and Rafaela Donato.
Juan Gaffud died in 1936. On Jan. 11, 1938, Lot 6 was originally registered
(OTC No. 4340) in the Registration Book of the Office of the RD in the names
of Rafaela, Raymundo and Cicero Gaffud (sons of spouses) as co-owners, . The
said lot was sold to Rafaela Donato through a Deed of Transfer which cancelled
OTC NO. 4340 and in lieu thereof a TCT was issued in the name of Rafaela
alone.
On Feb. 1967, Rafaela sold a portion of Lot 6 in favor in Fortunato
Pascua. The aforesaid sale caused the subdivision of the said lot into Lot-6-A
and Lot-6-B. Upon registration of said sale in favor of Pascua, TCT No. T-
32683 was issued in the name of Rafaela Donato on March 2, 1967 covering the
land designated as Lot 6-B.

ISSUE: On Jun. 10, 1970, Rafaela Donato sold to petitioner Felicisima Pino
said Lot-6-B as evidenced by the Deed of Absolute Sale which was duly
W/N the petitioner is a purchaser in good faith notarized. Rafaela undertook to register said Deed with the RD of Isabela and on
July 13, 1970, the sale was inscribed therein and a TCT was issued in the name
HELD: of Felicisima Pino.

YES. A vendee for value has a right to rely on what appears on the face On Sept. 1980, Cicero Gaffud died survived by his wife Demetrian and
of the certificate of title and to dispense with the need of inquiring further except sons Romulo and Adolfo, private respondents herein.
when the party concerned had actual knowledge of facts and circumstances that
should impel a reasonably cautious man to make such further inquiry. In the On March 9, 1982, private respondents filed a complaint for nullity of
case at bar the TCT was in the name of Rafaela Donato alone. The non- sale and reconveyance against petitioner — Felicisima Pino. (During the
production of the extra-judicial statement does not prove that there was fraud pendency of the case before the trial court, Rafaela Donato, who was not a party
committed. The respondents should have presented it. No allegations much less to the case, died on November her 26, 1982.)
any evidence was given by the respondents.
The RTC ruled and this was sustained by respondent CA that
The petitioner is therefore a purchaser in good faith. An action for petitioner Pino is not a purchaser in good faith, so (a) the Deed of Absolute Sale
reconveyance based on constructive trust cannot reach an innocent purchaser for made by Rafaela in favor of Pino null and void insofar as the shares of Cicero
value. The remedy of such defrauded party is to file an action for damages and Raymundo are concerned, (b) cancellation of TCT No. 49380 in the name of
within 10 years from the issuance of the Torrens Title. The action has already Pino and (c) reconvey one-half of Lot-6-B to plaintiffs withing 10 days.
prescribed since the date from the OCT and even on the TCT was over 10 years.
ISSUE:

1. WON Felicisima Pino is a purchaser in good faith

2. WON the filing of an action for reconveyance has already prescribed

HELD:

1. The rule applicable to this controversy is well-settled. Where the

certificate of title is in the name of the vendor when the land is sold, the vendee
for value has the right to rely on what appears on the certificate of title. In the
absence of anything to excite or arouse suspicion, said vendee is under no
obligation to look beyond the certificate and investigate the title of the vendor
appearing on the face of said certificate.

In the case at bar, the evidence on record discloses that when petitioner
purchased the subject property on June 10, 1970, the title was in the name of her
vendor Rafaela Donato alone.

There was no allegation, and much less any evidence, that the transfer
of the subject property from the original owners (Rafaela, Cicero and
Raymundo) to Rafaela Donato was fraudulent.

2. TCT No. T-32683 was issued in the name of Rafaela Donato on March
2, 1967. The present action for reconveyance was filed only on March 9, 1982.
Clearly then, the action has already prescribed because it was filed fifteen (15)
years after the issuance of TCT No. T-32683

If an action for reconveyance based on constructive trust cannot reach

an innocent purchaser for value, the remedy of the defrauded party is to bring an
action for damages against those who caused the fraud or were instrumental in
depriving him of the property. And it is now well-settled that such action
prescribes in ten years from the issuance of the Torrens Title over the property.
(Armerol v. Bagumbaran, 154 SCRA 396, 407; Caro v. Court of Appeals, 180
SCRA 401, 407; Walstron v. Mapa, Jr., 181 SCRA 431, 442).