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    GALLAR vs. HUSAIN, et al., G.R. No. L-20954 May 24, 1967

    FACTS:

    On January 9, 1919, Teodoro Husain, the owner, sold this

    land to Serapio Chichirita for P30, reserving for himself the right to

    repurchase it within six years.

    Teodoro Husain did not redeem the land, although shortly

    after the execution of the deed of sale, that is, on January 28, 1919,the vendee a retro, Chichirita, transferred his right to Graciana

    Husain, sister of the vendor aretro, in what purports to be a resale of

    the land. Graciana Husain subsequently transferred her rights to the

    land to appellee Elias Gallar in exchange for one cow.

    Possession of the land, together with the owner's

    duplicate of the certificate of title of Teodoro Husain, was delivered

    on the same occasion to appellee who since then has been in

    possession of the land. In an affidavit dated March 6, 1928,

    Chichirita confirmed the "redemption" of the land by Graciana

    Husain. In another affidavit of the same date, Graciana Husain for

    her part confirmed having subsequently sold the land to the

    appellee.

    In 1960, appellee asked the Cadastral Court for the

    issuance to him of a transfer certificate of title but the court

    dismissed his petition for lack of jurisdiction. (The court, however,

    granted appellee's request for the amendment of the certificate of

    title by changing the surname of "Osaen" to "Husain.") He,

    therefore, filed this suit in the CFI to compel Hermenegilda and

    Bonifacio Husain, as heirs of Teodoro Husain, to execute a deed of

    conveyance in his favor so that he could get a transfer certificate of

    title.

    The heirs denied the sale and contended that the

    agreement between their father and Chichirita was that of a

    mortgage to secure a loan of P30. They claimed that the mortgagehad been discharged on January 28, 1919 when Graciana Husain

    paid Teodoro Husain's debt to Chichirita.

    The trial court found that after acquiring the land from

    Teodoro Husain, Serapio Chichirita sold it to Graciana Husain who in

    turn sold it to the appellee. It ordered the appellants to execute a

    deed of conveyance of the land in favor of the appellee. From this

    judgment, Bonifacio Husain brought this appeal to this Court

    contending that no action can be brought on the basis of the deed of

    sale with a right of repurchase because the land in question was

    redeemed a few days after it had been sold.

    ISSUE: Whether or not plaintiffs action for reconveyance will

    prosper.

    HELD:

    While it is indeed true that the first note written on the

    reverse side of the deed of sale speaks of the "redemption" of the

    land, there is no evidence to show that the vendee, Graciana Husain,

    was acting in behalf of her brother Teodoro Husain, in the exercise

    the latter's right of redemption. Now, unlike a debt which a third

    party may satisfy even against the debtor's will the right of

    repurchase may be exercised only by the vendor in whom the right

    is recognized by contract3

    or by any person to whom the right may

    have been transferred.Graciana Husain must, therefore, be deemed

    to have acquired the land in her own right, subject only to Teodoro

    Husain's right of redemption. As the new owner she had a perfect

    right to dispose of the land as she in fact did when she exchanged it

    for a cattle with the appellee.

    Now, when Teodoro Husain failed to redeem the land

    within the stipulated period, i.e., January 9, 1925, its ownership

    became consolidated in the appellee. True the successive sales are

    in a private instrument, but they are valid just the same. By the

    delivery of possession of the land on April 2, 1919 the sale wasconsummated and title was transferred to the appellee. Indeed, this

    action is not for specific performance; all it seeks is to quiet title,to

    remove the cloud cast on appellee's ownership as a result of

    appellant's refusal to recognize the sale made by their predecessor

    And, as plaintiff-appellee is in possession of the land, the action is

    imprescriptible. Appellant's argument that the action has prescribed

    would be correct if they were in possession as the action to quiet

    title would then be an action for recovery of real property which

    must be brought within the statutory period of limitation governing

    such actions.

    Wherefore, the decision appealed from is affirmed.

    __________________________________________________

    CORONEL vs. INTERMEDIATE APPELLATE COURT and ELIAS

    MERLAN, et al. G.R. No. 70191 October 29, 1987

    FACTS:

    Petitioner Rodolfo Coronel filed a complaint for recovery

    of possession of a parcel of land registered under his name. The

    complaint was filed against the private respondents Elias Merlan

    Brigido Merlan, Jose Merlan, Teodorico Nostrates, Severo Jecie

    Santiago Fernan and Fortunato Ocampo before the then CFI of

    Cavite.

    Coronel alleged in his complaint that at the time he

    purchased the subject parcel of land, the defendants (private

    respondents herein) were already occupying a portion thereof as

    "tenants at will" and that despite demands to vacate the premises

    the defendants failed and refused to move out from the land.

    The defendants denied that Coronel was the owner of the

    whole parcel of land and alleged that the lots occupied by them

    form part of a 1/3 undivided share of brothers Brigido Merlan and

    Jose Merlan which they inherited from their deceased father Gabrie

    Merlan, one of the three heirs of Bernabela Lontoc, the origina

    owner of Lot No. 1950-A of the Naic Estate; that the Merlan

    brothers together with their two brothers and a sister never sold

    their undivided 1/3 share of the lot to anybody; that it was actually

    their other co-heirs who sold their undivided portions and that the

    plaintiff's claim of ownership of the whole parcel of land, if ever i

    has basis, is fraudulent, void, and without effect; that the Merlans

    have always been in open and peaceful possession of their

    undivided share of the lot throughout the years from the first sale by

    their co-heirs of Lot No. 1950-A in 1950; and that the other

    defendants were legitimate tenants. In their Third-Party Complaint

    the defendants charged that the third-party defendants, owners o

    the remaining portion of Lot No. 1950-A, defrauded them when they

    sold the entire parcel.

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    Third-Party Defendants Marcelo Novelo, Paz Anuat Daniel

    Anuat and Rosario Cailao the defendants' co-owners of Lot No.

    1950-A denied that they had something to do with the fraudulent

    acts or illegal machinations which deprived the defendants of their

    share in the subject parcel of land, and that what they sold was only

    their 2/3 undivided shares in said parcel.

    The lower court ruled in favor of the defendants and on

    appeal, the lower court's decision was affirmed.

    In dispute in the instant case is the 2/8 share of Bernabela

    Lontoc of the Naic Estate designated as Lot 1950-A. When Lontoc

    died in 1945, she was survived by three sets of heirs: 1) Bernardino

    Merlan, a grandson by her son Enrique Merlan who died in 1918; 2)

    Jose Merlan and Brigido Merlan, defendants in the case below and

    private respondents herein, Graciano Merlan, Agapito Merlan and

    Corazon Merlan, children of her son Gabriel who died in 1937; and

    3) Daniel Anuat and Paz Anuat children of her daughter Francisca

    Merlan.

    In 1950, Bernardino Merlan, Daniel Anuat and Paz Anuat

    sold their 2/3 undivided portion of the lot to spouses Ignacio

    Manalo and Marcela Nobelo. In 1960, TCT No. T-3116 RT-5010 was

    cancelled by TCT No. T-1444 but carried the same afore-specifiedregistered co-owners with an annotation carried from the former

    Transfer Certificate of Title.

    Sometime in 1970, Ignacio Manalo sold his interest in Lot

    1950-A to Mariano Manalo. The deed of sale was and thereafter,

    TCT No. T-1444 was cancelled and TCT No. T-41175 was issued for

    Lot No. 1950-A of the Naic Estate in the name of Mariano Manalo.

    The certificate of title issued in the name of spouses Manalo

    covered the whole Lot No. 1950-A without any mention of the 1/3

    share of the private respondents in the parcel of land which was

    not sold to them.

    Relying on the transfer certificate of title of the spouses

    Mariano Manalo and Jorga Lagos, petitioner Rodolfo Coronel then

    bought Lot No. 1950-A of the Naic Estate from the former. The deed

    of sale was registered on December 19, 1974 causing the

    cancellation of TCT No. T-41175 and the issuance of TCT No. T-75543

    in the name of petitioner Rodolfo Coronel.

    In the instant petition, petitioner contends that the claim

    of the private respondents over their 1/3 undivided portion of Lot

    No. 1950-A 25 years after the registration of the deed of sale in

    favor of Ignacio Manalo in 1950 and more than five (5) years after

    the registration of the deed of sale in favor of Mariano Manalo is

    barred by prescription or laches. According to him, there was undue

    delay on the part of the private respondents to claim their 1/3

    portion of Lot No. 1950-A of the Naic Estate and that the action forannulment should have been brought within four (4) years (Art.

    1391, New Civil Code) counted from the date of the registration of

    the instrument.

    The petitioner likewise insists that he is a purchaser in

    good faith. Thus, he argues that TCT No. T-41175 in the name of his

    successor-in-interest Mariano Manalo was very clear to the effect

    that there is no lien or encumbrance stated therein which could

    have been seen by his parents who represented him in the sale as he

    was then in the United States and by the lawyer contracted by him

    to execute or prepare the corresponding deed of sale.

    ISSUES:

    1. Whether or not the claim of private respondents to theland has been barred by the Statutes of Limitation or by

    estoppels by laches.

    2. Whether or not the petitioner as purchaser in good faithand for value is entitled to the whole lot subject matter of

    the present petition.

    HELD:

    1. It is evident that the private respondents never sold their 1/3

    share over Lot No. 1950-A of the Naic Estate; that what their co

    owners sold to Ignacio Manalo was their 2/3 share of the same lot

    and that Ignacio Manalo sold only the 2/3 share to third-party

    defendant Mariano Manalo, the predecessor-in-interest o

    petitioner Rodolfo Coronel. Consequently, there was a mistake

    when Transfer Certificate of Title No. 41175 was issued to Mariano

    Manalo covering the whole area of Lot No. 1950-A. Moreover

    private respondents Brigido Merlan and Jose Merlan were in open,

    peaceful and adverse possession of their 1/3 share over the lot even

    after 1950 when the first sale of the lot took place. The first time

    they knew about Coronel's claim over the whole lot was when they

    were served a copy of his complaint in 1975.

    The counterclaim of the private respondents which was in

    effect a reconveyance to them of their 1/3 undivided share over lot

    No. 1950-A has not prescribed. As lawful possessors and owners o

    the lot in question their cause of action falls within the settled

    jurisprudence that an action to quiet title to property-in one's

    possession is imprescriptible, Their undisturbed possession over a

    period of more than 25 years gave them a continuing right to seek

    the aid of a court of equity to determine the nature of the adverse

    claim of a third party and the effect of his own title. If at all, the

    private respondents' right, to quiet title, to seek reconveyance and

    to annul TCT No. T-75543 accrued only in 1975 when they were

    made aware of a claim adverse to their own. It was only at that time

    that, the statutory period of prescription may be said to havecommenced to run against them.

    In the same manner, there is no bar based on laches to

    assert their right over 1/3 of the disputed property. The facts of the

    case show that the private respondents have always been in

    peaceful possession of the 1/3 portion of the subject lot, exercising

    ownership thereto for more than 25 years disrupted only in 1975

    when the petitioner tried to remove them by virtue of his torrens

    title covering the entire Lot 1950-A of the Naic Estate. It was only at

    this point that private respondents knew about the supposed sale o

    their 1/3 portion of Lot 1950-A of the Naic Estate and they

    immediately resisted.

    2. Notwithstanding the good faith of petitioner when he purchased

    the land from Mariano Manalo, we cannot close our eyes to the fact

    that neither the private respondents nor their co-owners of the

    subject parcel of land sold the former's share of the lot

    Furthermore, even Ignacio Manalo to whom the third-party

    defendants sold their share resold only the 2/3 shares to Mariano

    Manalo, the successor-in-interest of the petitioner. Whether or not

    there was fraud or just a mistake or oversight of an employee of the

    Register of Deeds of Cavite is not clear from the records. The point is

    that the 1/3 undivided portion of the private respondents over Lot

    No. 1950-A was mistakenly included in the transfer certificate of title

    of Mariano Manalo.

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    We apply equitable considerations. The acceptance

    accorded the Torrens system of registration would certainly be

    impaired if it could be utilized to perpetrate fraud and chicanery.

    Deceit is not to be countenanced; duplicity is not to be rewarded.

    Witness the favor with which jurisprudence has looked on the

    action for reconveyance as well as the recognition of the

    constructive trust.

    Moreover, the simple possession of a certificate of title,

    under the Torrens System, does not necessarily make the

    possessor a true owner ofallthe property described therein. If aperson obtains a title, under the Torrens system, which includes by

    mistake or oversight land which cannot be registered under the

    Torrens systems, he does not, by virtue of said certificate alone,

    become the owner of the lands illegally included.

    We find no reversible error on the part of the lower courts

    in recognizing the ownership of the private respondents over 1/3 of

    Lot No. 1950-A of the Naic Estate. The petitioner is bound to

    recognize the lien in favor of the private respondents which was

    mistakenly excluded and therefore not inscribed in the torrens title

    of the land of his predecessors-in-interest.

    WHEREFORE, the instant petition is hereby DISMISSED.

    _____________________________________________________

    CARAGAY-LAYNO vs. HONORABLE COURT OF APPEALS and

    SALVADOR ESTRADA G.R. No. L-52064 December 26, 1984

    FACTS:

    The Disputed Portion is a 3,732 square-meter-area of a bigger parcel

    of land denominated as Lot No. 1 with a total area of 8,752 square

    meters. The entire parcel is covered by OCT No. 63, issued on 11

    September 1947 in the name of Mariano M. DE VERA, who died in

    1951 without issue. His intestate estate was administered first by hiswidow and later by her nephew, respondent Salvador Estrada.

    Petitioner, JULIANA Caragay, and the decedent, Mariano DE VERA,

    were first cousins.

    As Administratrix, DE VERA's widow filed in a special proceeding, an

    Inventory of all properties of the deceased which included the

    disputed portion.

    Because of the discrepancy in area mentioned in the Inventory as

    5,147 square meters (as filed by the widow), and that in the title as

    8,752 square meters, ESTRADA repaired to the Disputed Property

    and found that the northwestern portion, subsequently surveyed tobe 3,732 square meters, was occupied by petitioner-spouses Juliana

    Caragay Layno and Benito Layno. ESTRADA demanded that they

    vacate the Disputed Portion since it was titled in the name of the

    deceased DE VERA, but petitioners refused claiming that the land

    belonged to them and, before them, to JULIANA's father Juan

    Caragay.

    ESTRADA then instituted suit against JULIANA for the recovery of the

    Disputed Portion which she resisted, mainly on the ground that the

    Disputed Portion had been fraudulently or mistakenly included in

    OCT No. 63, so that an implied or constructive trust existed in her

    favor. She then counterclaimed for reconveyance of property in the

    sense that title be issued in her favor.

    After hearing, the Trial Court rendered judgment ordering JULIANA

    to vacate the Disputed Portion.

    On appeal respondent Appellate Court affirmed the Decision in toto.

    ISSUES:

    1. Whether or not petitioner can seek reconveyance of the disputed

    portion on the ground that it was fraudulently included in OCT No

    63.

    2. Whether or not petitioners action for reconveyance is barred by

    prescription.

    HELD:

    1. Tacking the previous possession of her father to he

    own, they had been in actual open, continuous and uninterrupted

    possession in the concept of owner for about forty five (45) years

    declaring the land for taxation purposes and paying realty taxesthereon from 1938 to 1972 until said possession was disturbed in

    1966 when ESTRADA informed JULIANA that the Disputed Portion

    was registered in Mariano DE VERA's name.

    Further, De Vera, borrowed from petitioner the Tax

    Declaration of her land to be used as collateral for his loan and suga

    quota application and that relying on his assurances, she acceded to

    his request and was made to sign documents the contents she did

    not know because of her ignorance. She discovered the fraudulent

    inclusion of the Disputed Portion in OCT No. 63 only in 1966 when

    ESTRADA so informed her and sought to eject them. For twenty (20

    years from the date of registration of title in 1947 up to 1967 when

    this suit for recovery of possession was instituted, neither the

    deceased DE VERA up to the time of his death in 1951, nor his

    successors-in-interest, had taken steps to possess or lay adverse

    claim to the Disputed Portion. They may, therefore be said to be

    guilty of laches as would effectively derail their cause of action

    Administrator ESTRADA took interest in recovering the said portion

    only when he noticed the discrepancy in areas in the Inventory of

    Property and in the title.

    Inasmuch as DE VERA had failed to assert any rights over

    the Disputed Portion during his lifetime, nor did he nor his

    successors-in-interest possess it for a single moment: but that

    JULIANA had been in actual, continuous and open possession

    thereof to the exclusion of all and sundry, the inescapable inference

    is, fraud having been unsubstantiated, that it had been erroneouslyincluded in OCT No. 63. The mistake is confirmed by the fact of the

    substantial difference in the area declared in the Inventory and the

    area declared in the certificate of title. In fact, the widow by limiting

    the area in said Inventory in effect, recognized and admitted tha

    the Disputed Portion did not form part of the decedent's estate.

    Mere possession of a certificate of title under the Torrens

    System is not conclusive as to the holder's true ownership of all the

    property described therein for he does not by virtue of said

    certificate alone become the owner of the land illegally

    included. A Land Registration Court has no jurisdiction to decree a

    lot to persons who have never asserted any right of ownership

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    over it. JULIANA, whose property had been wrongfully registered

    in the name of another, but which had not yet passed into the

    hands of third parties, can properly seek its reconveyance.

    2. Prescription cannot be invoked against JULIANA for the

    reason that as lawful possessor and owner of the Disputed Portion,

    her cause of action for reconveyance which, in effect, seeks to quiet

    title to the property, falls within settled jurisprudence that an action

    to quiet title to property in one's possession is imprescriptible. Her

    undisturbed possession over a period of fifty two (52) years gave her

    a continuing right to seek the aid of a Court of equity to determinethe nature of the adverse claim of a third party and the effect on her

    own title.

    Besides, under the circumstances, JULIANA's right to quiet

    title, to seek reconveyance, and to annul OCT. No. 63 accrued only in

    1966 when she was made aware of a claim adverse to her own. It

    was only then that the statutory period of prescription may be said

    to have commenced to run against her.

    WHEREFORE, the judgment under review is hereby

    REVERSED and SET ASIDE.

    ______________________________________________________

    ANASTACIA VDA. DE AVILES, ET ALCOU vs. COURT OF APPEALS and

    CAMILO AVILES

    G.R. No. 95748 November 21, 1996

    FACTS:

    PLAINTIFFS aver that they are the actual possessors of a

    parcel of land situated in Malawa, Lingayen, Pangasinan. This

    property is the share of their father, Eduardo Aviles and brother of

    the defendant, in the estate of their deceased parents, Ireneo Aviles

    and Anastacia Salazar.

    SINCE 1957, Eduardo Aviles was in actual possession of the

    afore-described property. In fact, the latter mortgaged the same

    with the Rural Bank and Philippine National Bank branch in

    Lingayen. When the property was inspected by a bank

    representative, Eduardo Aviles, in the presence of the boundary

    owners, namely, defendant Camilo Aviles, Anastacio Aviles and

    Juana and Apolonio Joaquin(,) pointed to the inspector the existing

    earthen dikes as the boundary limits of the property and nobody

    objected. When the real estate mortgage was foreclosed, the

    property was sold at public auction but this was redeemed by

    plaintiffs' mother and the land was subsequently transferred and

    declared in her name.

    ON March 23, 1983, defendant Camilo Aviles asserted a

    color of title over the northern portion of the property with an area

    of approximately 1,200 square meters by constructing a bamboo

    fence (thereon) and moving the earthen dikes, thereby molesting

    and disturbing the peaceful possession of the plaintiffs over said

    portion.

    UPON the other hand, defendant Camilo Aviles admitted

    the Agreement of Partition executed by him and his brothers,

    Anastacio and Eduardo. In accordance therewith, the total area of

    the property of their parents which they divided is 46,795 square

    meters and the area alloted to Eduardo is 16,111 square meters, to

    Anastacio is 16,214 square meters while the area alloted to

    defendant Camilo is 14,470 square meters more or less. The

    respective area(s) alloted to them was agreed and measured before

    the execution of the agreement but he was not present when the

    measurement was made. Defendant agreed to have a smaller area

    because his brother Eduardo asked him that he wanted a bigge

    share because he has several children to support. The portion in

    litigation however is part of the share given to him in the agreement

    of partition. At present, he is only occupying an area of 12,686

    square meters which is smaller than his actual share of 14,470square meters. Tax Declarations covering his property from 1958

    show that the area of his property is 14,470 square meters.

    The trial court dismissed the complaint for lack of basis

    and merits. The Court of Appeals affirmed in part the decision of the

    trial court, reasoning that a special civil action for quieting of title is

    not the proper remedy for settling a boundary dispute, and that

    petitioners should have instituted an ejectment suit instead.

    ISSUES:

    1. Whether or not a complaint for quieting of is the properemedy for settling of a boundary dispute.

    2. Whether or not the Court of Appeals is correct inrendering a decision without fully determining the

    respective rights of the herein parties.

    HELD:

    1. The facts presented unmistakably constitute a clear case of

    boundary dispute, which is not cognizable in a special civil action to

    quiet title.

    Quieting of title is a common law remedy for the remova

    of any cloud upon or doubt or uncertainty with respect to title to

    real property. Pursuant to Article 476 of the Civil Code, to avail ofthe remedy of quieting of title, a plaintiff must show that there is

    an instrument, record, claim, encumbrance or proceeding which

    constitutes or casts a cloud, doubt, question or shadow upon the

    owner's title to or interest in real property. Thus, petitioners have

    wholly misapprehended the import of the foregoing rule by claiming

    that respondent Court erred in holding that there was "no . .

    evidence of any muniment of title, proceeding, written contract, .

    .", and that there were, as a matter of fact, two such contracts, viz.

    (i) the Agreement of Partition executed by private respondent and

    his brothers (including the petitioners' father and predecessor-in

    interest), in which their respective shares in the inherited property

    were agreed upon, and (ii) the Deed of Sale evidencing the

    redemption by petitioner Anastacia Vda. de Aviles of the subject

    property in a foreclosure sale. However, these documents in no wayconstitute a cloud or cast a doubt upon the title of petitioners

    Rather, the uncertainty arises from the parties' failure to situate and

    fix the boundary between their respective properties.

    As correctly held by the respondent Court, "(i)n fact, both

    plaintiffs and defendant admitted the existence of the agreement of

    partition dated June 8, 1957 and in accordance therewith, a fixed

    area was allotted (sic) to them and that the only controversy is

    whether these lands were properly measured. There is no adverse

    claim by the defendant "which is apparently valid, but is, in truth

    and in fact, invalid, ineffective, voidable, or unenforceable" and

    which constitutes a cloud thereon.

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    Corollarily, and equally as clear, the construction of the

    bamboo fence enclosing the disputed property and the moving of

    earthen dikes are not the "clouds" or "doubts" which can be

    removed in an action for quieting of title. An action to quiet title or

    to remove cloud may not be brought for the purpose of settling a

    boundary dispute.

    2. Petitioners also chide the respondent Court (and the trial court)

    for not declaring the respective rights of the parties with respect to

    the land in question, arguing that "when one is disturbed in any

    form in his rights of property over an immovable by the unfoundedclaims of others, he has the right to ask from the competent courts: .

    . . that their respective rights be determined . . .

    Rule 64 of the Rules of Court, dealing with actions for

    declaratory relief, specifies in Section 1 thereof the grounds,

    conditions precedent or requisites for bringing such petitions. Under

    this rule, only a person who is interested "under a deed, will,

    contract or other written instrument, and whose rights are affected

    by a statute or ordinance, may bring an action to determine any

    question of construction or validity arising under the instrument or

    statute and for a declaration of his rights or duties thereunder." This

    means that the subject matter must refer to a deed, will, contract or

    other written instrument, or to a statute or ordinance, to warrant

    declaratory relief. Any other matter not mentioned therein is

    deemed excluded.

    Even assuming arguendo that the action to quiet title had

    been brought under Rule 64, the same would still not have

    prospered, the subject matter thereof not referring to "a deed,

    will, contract or other written instrument, or to a statute or

    ordinance," but to a boundary dispute, and therefore not

    warranting the grant of declaratory relief.

    From another perspective, we hold that the trial court

    (and likewise the respondent Court) cannot, in an action for

    quieting of title, order the determination of the boundaries of the

    claimed property, as that would be tantamount to awarding to oneor some of the parties the disputed property in an action where the

    sole issue is limited to whether the instrument, record, claim,

    encumbrance or proceeding involved constitutes a cloud upon the

    petitioners' interest or title in and to said property. Such

    determination of boundaries is appropriate in adversarial

    proceedings where possession or ownership may properly be

    considered and where evidence aliunde, other than the

    "instrument, record, claim, encumbrance or proceeding" itself,

    may be introduced. An action for forcible entry, whenever

    warranted by the period prescribed in Rule 70, or for recovery of

    possession de facto, also within the prescribed period, may be

    availed of by the petitioners, in which proceeding the boundary

    dispute may be fully threshed out.

    WHEREFORE, in view of the foregoing considerations, the

    instant petition is hereby DENIED and the Decision appealed from is

    AFFIRMED.

    AZNAR BROTHERS REALTY COMPANY vs. COURT OF APPEALS

    [G.R. No. 128102. March 7, 2000]

    FACTS:

    Lot No. 4399 was acquired by AZNAR from the heirs o

    Crisanta Maloloy-on by virtue of an Extrajudicial Partition of Rea

    Estate with Deed of Absolute Sale dated 3 March 1964 which was

    registered with the Register of Deeds of Lapu-Lapu City on 6 March

    1964.

    After the sale, petitioner AZNAR declared this property

    under its name for taxation purposes and regularly paid the taxes

    thereon. Herein private respondents were allegedly allowed to

    occupy portions of Lot No. 4399 by mere tolerance provided that

    they leave the land in the event that the company would use the

    property for its purposes. Later, AZNAR entered into a joint venture

    with Sta. Lucia Realty Development Corporation for the

    development of the subject lot into a multi-million peso housing

    subdivision and beach resort. When its demands for the private

    respondents to vacate the land failed, AZNAR filed with the

    Municipal Trial Court (MTCC) of Lapu-Lapu City a case for unlawfu

    detainer and damages.

    On the other hand, the private respondents alleged that

    they are the successors and descendants of the eight children of the

    late Crisanta Maloloy-on, whose names appear as the registered

    owners in the Original Certificate of Title No. RC-2856. They had

    been residing and occupying the subject portion of the land in the

    concept of owner since the time of their parents and grandparents

    Private respondents claimed that the Extrajudicial Partition of Rea

    Estate with Deed of Absolute Sale is void ab initio for being

    simulated and fraudulent, and they came to know of the fraud only

    when AZNAR entered into the land in the last quarter of 1991 and

    destroyed its vegetation. They then filed with the Regional Tria

    Court (RTC) of Lapu-Lapu City a complaint seeking to declare the

    subject document null and void.

    The MTCC rendered a decision ordering the private

    respondents to vacate the land in question upon the finality of the

    judgment. The MTCC delved into the issue of ownership in order to

    resolve the issue of possession. Aggrieved by the decision of the

    MTCC, private respondents appealed to the RTC.

    During the pendency of the appeal, a writ of execution was

    issued by the RTC upon motion of petitioner. AZNAR filed an

    omnibus motion for the issuance of a writ of demolition, which was

    likewise issued. Per Sheriffs Report, private respondents houses

    were demolished on 3 August 1994, except for two houses.

    On appeal by the private respondents, the Court ofAppeals reversed and set aside the decision of the RTC; declared the

    private respondents as the rightful possessors de facto of the land in

    question; and permanently enjoined Sheriff from effectuating the

    demolition of the houses of the private respondents. AZNAR then

    elevated the case to this Court, via this petition for review

    on certiorari.

    ISSUES:

    1. Whether or not prior physical possession over the land bythe petitioner is required to effect an action of unlawfu

    detainer.

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    2. Whether or not the Extrajudicial Partition with Deed ofAbsolute Sale was null and void.

    HELD:

    1. Contrary to the ruling of the Court of Appeals, prior physical

    possession by the plaintiff of the subject property is not an

    indispensable requirement in unlawful detainer cases, although it

    is indispensable in an action for forcible entry . The lack of prior

    physical possession on the part of AZNAR is therefore of no

    moment, as its cause of action in the unlawful detainer case is

    precisely to terminate private respondents possession of the

    property in question.

    2. In an action for ejectment, the only issue involved is

    possession de facto. However, when the issue of possession cannot

    be decided without resolving the issue of ownership, the court may

    receive evidence upon the question of title to the property but

    solely for the purpose of determining the issue of possession.[

    In the instant case, private respondents have set up the

    defense of ownership and questioned the title of AZNAR to the

    subject lot, alleging that the Extrajudicial Partition with Deed of

    Absolute Sale upon which petitioner bases its title is null and voidfor being simulated and fraudulently made.

    First, private respondents claim that not all the known

    heirs of Crisanta Maloloy-on participated in the extrajudicial

    partition, and that two persons who participated and were made

    parties thereto were not heirs of Crisanta. This claim, even if true,

    would not warrant rescission of the deed. Under Article 1104 of the

    Civil Code, "[a] partition made with preterition of any of the

    compulsory heirs shall not be rescinded, unless it be proved that

    there was bad faith or fraud on the part of the persons interested;

    but the latter shall be proportionately obliged to pay to the person

    omitted the share which belongs to him." In the present case, no

    evidence of bad faith or fraud is extant from the records. As to the

    two parties to the deed who were allegedly not heirs, Article 1105 is

    in point; it provides: "A partition which includes a person believed to

    be an heir, but who is not, shall be void only with respect to such

    person." In other words, the participation of non-heirs does not

    render the partition void in its entirety but only to the extent

    corresponding to them.

    Private respondents also allege that some of the persons

    who were made parties to the deed were already dead, while others

    were still minors. Moreover, the names of some parties thereto

    were misspelled, and others who knew how to read and write their

    names were made to appear to have affixed only their thumbmark

    in the questioned document. Likewise, the signatures of those who

    were made parties were forged.

    The foregoing are bare allegations with no leg to stand on.

    No birth or death certificates were presented before the MTCC to

    support the allegations that some of the parties to the deed were

    minors and others were already dead at the time of the execution of

    the deed. It is worthy to note that the Extrajudicial Partition with

    Deed of Absolute Sale is a notarized document. As such, it has in its

    favor the presumption of regularity, and it carries the evidentiary

    weight conferred upon it with respect to its due execution He who

    denies its due execution has the burden of proving the contrary. It

    must also be stressed that whoever alleges forgery has the burden

    of proving the same. Forgery cannot be presumed but should be

    proved by clear and convincing evidence. Private respondents failed

    to discharge this burden of proof; hence, the presumption in favor

    of the questioned deed stands.

    Anent the non- annotation of the Extrajudicial Partition

    with Deed of Absolute Sale in the reconstituted Original Certificate

    of Title No. RO-2856, the same does not render the deed legally

    defective. It must be borne in mind that the act of registering a

    document is never necessary to give the conveyance legal effect as

    between the parties and the vendors heirs. As between the

    parties to a sale, registration is not indispensable to make it validand effective. The purpose of registration is merely to notify and

    protect the interests of strangers to a given transaction, who may be

    ignorant thereof, and the non-registration of the deed evidencing

    said transaction does not relieve the parties thereto of their

    obligations thereunder. Here, no right of innocent third persons o

    subsequent transferees of the subject lot is involved; thus, the

    conveyance executed in favor of AZNAR by private respondents and

    their predecessors is valid and binding upon them, and is equally

    binding and effective against their heirs.

    The principle that registration is the operative act that

    gives validity to the transfer or creates a lien upon the land "refers

    to cases involving conflicting rights over registered property and

    those of innocent transferees who relied on the clean title of the

    properties." This principle has no bearing on the present case, as

    no subsequent transfer of the subject lot to other persons has

    been made either by private respondents or their predecessors-in

    interest.

    It bears repeating that petitioners claim of possession

    over the subject lot is anchored on its claim of ownership on the

    basis of the Extrajudicial Partition with Deed of Absolute Sale. Ou

    ruling on the issue of the validity of the questioned deed is solely

    for the purpose of resolving the issue of possession and is to be

    regarded merely as provisional, without prejudice, however, to the

    final determination of the issue in the other case for the

    annulment or cancellation of the Extrajudicial Partition with Deedof Absolute Sale.

    WHEREFORE, the petition is GRANTED.