Case Digest - San Agustin v. CA, 371 SCRA 348

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San Agustin v.

CA, 371 SCRA 348


FACTS:

On February 11, 1974, a parcel of residential land with an area of 168 square meters
located in Rosario, Pasig City was sold by Government Service Insurance System
(GSIS) to Macaria Vda. de Caiquep. The sale is evidenced by a Deed of Absolute Sale.
2 On February 19, 1974, the Register of Deeds of Rizal issued in the name of Macaria
Vda. de Caiquep.

On February 20, 1974, Macaria Vda. de Caiquep sold the subject lot to private
respondent, Maximo Menez, Jr., as evidenced by a Deed of Absolute Sale, which was
also notarized but was not registered because of the the five-year prohibition to sell
during the period ending in 1979.

In 1979, Menez was detained for two (2) years for having been suspected as a
subversive. After his release, there was another order of his arrest so he hid for another
four (4) years in Mindanao until March 1984.

In December 1990, he discovered that the TCT was missing. He consulted a lawyer and
filed an Affidavit of Loss with the Register of Deeds and a certified copy of TCT was
issued. Menez also declared the said property for tax purposes and obtained a
certification thereof from the Assessor’s office. He then tried to search for the registered
owner at her address appearing in the title and in the Deed of Sale but to no avail and
this prompted him to file a petition for the issuance of owner’s duplicate copy to replace
the lost one.

During the hearing on September 3, 1992, only Menez and his counsel appeared. The
Register of Deeds who was not served notice, and the Office of the Solicitor General
and the Provincial Prosecutor who were notified did not attend. On September 30, 1992,
the trial court granted his petition after Menez presented his evidence ex parte for the
issuance of a new Owner's Duplicate Copy of Transfer Certificate of Title.

On October 13, 1992, San Agustin, the niece of Ma. Vda de Caiquep claimed this was
the first time he became aware of the case and that he was the present occupant of the
property and the heir of Macaria. He filed a Motion to Reopen Reconstitution
Proceedings but RTC denied said motion. Petitioner moved for motion for
reconsideration but was again denied. Thus this petition for review on certiorari.

ISSUE:

1. Whether or not the petitioner, as the actual possessor of the lot needs to be
notified?
2. Whether or not the petitioner is bound by the contract entered into by his
predecessor-in-interest?
RULING:

1. No. Petitioner is not entitled to notice. Petitioner San Agustin does not appear to
have an interest in the property being the heir and the present occupant of the lot
is not annotated at the back memorandum of encumbrances of the title.

2. It is the GSIS and not the petitioner who had a cause of action against the private
respondent. The contract of sale remains valid between the parties, unless and
until annulled in the proper suit filed by the rightful party, the GSIS. The said
contract of sale is binding upon the heirs of Macaria Vda. de Caiquep, in
reference to the rule that heirs are bound by contracts entered into by their
predecessors-in-interest

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