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126.

Salvoro vs PARTIES: ISSUE: When real property is sold to two different persons
Tañega (DOUBLE o Petitioner - Salvoro Spouses who sold their by the same vendor, the first immediately taking possession
SALE) property in favor of the Tañega Spouses of the property as owner but neglecting to register the sale to
o Respondent – Tañega Spouses who bought the him while the second vendee had the document in his favor
OBJECT/LOCATION land of the Salvoro Spouses. They immediately duly registered, who, as between the two vendees, has the
OF THE PROPERTY:
took possession and introduced improvements better right over the property under Article 1544 of the Civil
P. Zamora Street,
Tacloban City thereon, but did not register the property. Code of the Philippines?

CHARACTERS: HOW THE CASE STARTED: RULING:


1. SPS. SALVORO –
VENDOR
PETITIONER SALVORO SPOUSES SOLD THEIR SPS. TAÑEGA, the first buyers in this case has a preferential
2. SPS. TAÑEGA – 1ST
BUYER PROPERTY IN FAVOUR OF THE TAÑEGA SPOUSES right to the ownership of the property for they have acquired
3. SPS. TISMO – 2nd - The Tañega Spouses immediately took the property in good faith.
BUYER possession of the land however they failed to
have it registered in the Registry of Deeds. 1. Tañega spouses bought the property on August 9, 1959
- The property was sold in the sum of 2. They immediately took actual physical possession of
PHP30,000.00 payable within 3 years for the the property, finishing the uncompleted improvements
property was mortgaged by the Development thereon;
Bank. 3. As stipulated in the sale, the Tañegas made payments
- The Tañega Spouses therefore assumed the to the DBP in the name of and for the account of the
mortgage under the Deed of Absolute Sale of the Salvoros
Property between Sps. Salvoro & Sps. Tañega.
- Sps. Tañega then made several payments in the To be entitled to preference, the Tismo spouses must have
name of the Sps. Salvoro to the Development registered the deed of sale in their favor in good faith.
Bank in the total sum of PHP20,583.16
- Sps. Salvoro then executed another deed of "Art. 1544. If the same thing should have been sold to
absolute sale in favour of Sps. Tañega whereby different vendees, the ownership shall be transferred
they conveyed absolutely and unconditionally in to the person who may have first taken possession
favor of defendants the ownership of the entire thereof in good faith, if it should be movable property.
land.
"Should it be immovable property, the ownership shall
However, before the Development Bank could act belong to the person acquiring it who in good
on the assumption by Sps. Tañega of the faith first recorded it in the Registry of Property.
mortgage of Sps. Salvoro, the said Bank
foreclosed the mortgage and at the public auction "Should there be no inscription, the ownership shall
sale, the Bank was the sole & highest bidder. pertain to the person who in good faith was first in the
- Sps. Salvoro then redeemed the property from possession; and, in the absence thereof, to the person
the bank pursuant to Act No. 3135 by paying the who presents the oldest title, provided there is good
sum of PHP28,197.87. faith."

SPS. SALVORO THEN EXECUTED A DEED OF SALE


IN FAVOR OF SPS. TISMO (2ND BUYER OF THE This Court has held in one case, that the basic premise of the
SAME LAND) preferential rights established by Article 1473, Civil Code, (now
Article 1544) is good faith. To enjoy the preferential right, the
second vendee must not only have a prior recording of his sale
THE DAY FOLLOWING THE REPURCHASE BY SPS. but must, above all, have acted in good faith, that is, without
SALVORO, SPS. TAÑEGA TENDERED PAYMENT FOR knowledge or notice of the
THE REPURCHASE PRICE PLUS 2% BUT WAS previous and existing alienation made by his vendor to
DENIED. another.
- Soon thereafter, Sps. Salvoro filed the present
complaint of Annulment of the Contract of Sale of The Spouses (TISMO) could not have failed to know the
Real Property with damages on the ground that existence of litis pendens annotated on the title of the
conditions had not been complied with on property. In short, when they were about to deed of sale in
September 5, 1960. their favour, they acquired knowledge that the land had been
- Sps. Tañega in turn filed a notice of litis pendens previously sold to SPS. Tañega. SPS. TISMO are buyers in
with the Register of Deeds of Leyte. bad faith because they went ahead with the
registration despite such knowledge.
NOTWITHSTANDING SAID NOTICE, SPS. TISMO
WAS ABLE TO REGISTER THE SALE IN THEIR Since the Tismos were registrants in bad faith, the
FAVOR ON DECEMBER 19, 1960. situation is as if there was no registration at all.
Therefore, the vendees who first took possession of the
property in good faith shall be preferred.

FALLO: WHEREFORE, the petition is hereby denied and the


decision of the Court of Appeals sought to be reviewed is
affirmed, with costs against petitioners.

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