Spouses Federico Serfino and Lorna Bachar
Spouses Federico Serfino and Lorna Bachar
Spouses Federico Serfino and Lorna Bachar
&
PNB, petitioners, vs The Honorable Court of Appeals, Lopez Sugar Central Mill Company, Inc.,
Spouses Federico Serfino and Lorna Bachar, respondents
Facts:
August 25, 1937 21.1676 hectares of land was patented in the name of Pacific
Casamayor under Homestead Patent No. 44139. OCT # 1839 was issued by said
office.
On December 14, 1945, the latter sold said land in favor of Nemesia D. Baltazar.
Apparently, OCT NO 1839 was lost during the war and upon petition of Nemesia
Baltazar, the CFI ordered the reconstitution thereof.
On August 25, 1951, Nemesia Baltazar sold said property to Lopez Sugar Central Mill
Co., Inc. The latter however did not present the documents for registrartion until
December 17, 1964 to the Office of the Registry of Deeds. Said office refused
registration upon its discover that the same property was covered by another
certificate title, TCT NO. 38985, in the name of Federico Serfino.
It has been revealed that the Provincial Treasurer of Negros Occidental on October 30,
1956 had conducted a public auction sale of this property for tax delinquency for the
period starting the year 1950. Notice of this public auction sale was sent to Pacifico
Casamayor but none to Nemesia Baltazar and Lopez Sugar Mill.
On May 14, 1964, Federico Serfino acquired the property.
On November 19, 1964, the spouses Serfino mortgaged the land to the PNB to secure a
loan in the amount of Php 5,000.
Issue:
Whether or not the sale of the land in dispute by the Serfino Spouses to PNB is valid? - NO
Held:
It is not disputed that the original grantee was Pacifico Casamayor who obtained a
Homestead Patent and later an original certificate of title in his name. Later it was this original
grantee who sold the land in question to Nemesia Baltazar on December 14, 1945 or more
than eight (8) years after he obtained his homestead patent on August 25, 1937. On these
facts, we now apply Sec. 118 of Commonwealth Act No. 141 which prohibits the alienation
of homestead lots to private individual within five (5) years from the date of the issuance of
the patent and not Sec. 121 which governs sale to corporation. Since the grant was more
than five (5) years before, the transfer to Nemesia Baltazar was valid and legal. Nemesia
Baltazar who became the titled or registered owner as evidenced by TCT No. 57-N, could
exercise acts of ownership over the land such as disposing of it to private respondent by a
deed of sale.
The assailed decision of the appellate court declares that the prescribed procedure in auction
sales of property for tax delinquency being in derogation of property rights should be followed
punctiliously. Strict adherence to the statutes governing tax sales is imperative not only for the
protection of the tax payers, but also to allay any possible suspicion of collusion between the
buyer and the public officials called upon to enforce such laws. Notice of sale to the delinquent
land owners and to the public in general is an essential and indispensable requirement of law,
the non-fulfillment of which vitiates the sale.
We give our stamp of approval on the aforementioned ruling of the respondent court. In the
case at bar, there is no evidence that Nemesia Baltazar, who had obtained a transfer
certificate of title in her name on January 18, 1946, was notified of the auction sale which
was scheduled on October 30, 1956. Neither was she furnished as the owner of the
delinquent real property with the certificate of sale as prescribed by Sec. 37 of
Commonwealth Act No. 470. These infirmities are fatal. Worth mentioning also is the fact
that Lopez Sugar Central was not entirely negligent in its payment of land taxes. The record
shows that taxes were paid for the years 1950 to 1953 and a receipt therefor was obtained in its
name. The sale therefore by the Province of Negros Occidental of the land in dispute to the
spouses Serfinos was void since the Province of Negros Occidental was not the real owner
of the property thus sold.