SPRING HOMES v. SPS. TABLADA

SPRING HOMES SUBDIVISION CO., INC., SPOUSES PEDRO L. LUMBRES and REBECCA T. ROARING, Petitioners -versus- SPOUSES PEDRO TABLADA, JR. and ZENAIDA TABLADA, Respondents

G.R. No. 200009                               

January 23, 2017

FACTS:

                On October 12, 1992, petitioners, Spouses Pedro L. Lumbres and Rebecca T. Roaring, entered into a Joint Venture Agreement with Spring Homes Subdivision Co., Inc., through its chairman, the late Mr. Rolando B. Pasic, for the development of several parcels of land consisting of an area of 28,378 square meters.

                January 9, 1995, Spring Homes entered into a Contract to Sell with respondents, Spouses Pedro Tablada, Jr. and Zenaida Tablada, for the sale of a parcel of land located at Lot No. 8, Block 3, Spring Homes Subdivision.

                Subsequently, the Spouses Tablada discovered that the subject property was mortgaged as a security for a loan in the amount of over P4,000,000.00 with Premiere Development Bank as mortgagee and Spring Homes as mortgagor. In fact, since the loan remained unpaid, extrajudicial proceedings were instituted.

                The Spouses Tablada filed a complaint for Nullification of Title, Reconveyance and Damages against Spring Homes and the Spouses Lumbres praying for the nullification of the second Deed of Absolute Sale executed in favor of the Spouses Lumbres, as well as the title issued as a consequence thereof, the declaration of the validity of the first Deed of Absolute Sale executed in their favor, and the issuance of a new title in their name.

                Spouses Lumbres filed a Motion to Dismiss the case against them raising as grounds the non-compliance with a condition precedent and lack of jurisdiction of the RTC over the subject matter. They alleged that the Spouses Tablada failed to avail of conciliatory proceedings, and that the RTC has no jurisdiction since the parties, as well as property in question, are all located at Calamba City, and that the action instituted by the Spouses Tablada praying for the nullification of the Compromise Agreement actually corresponds to a nullification of a judgement issued by a co-equal trial court.

             

ISSUE:

Whether or not spouses Tablada were purchased a parcel of land in Spring Homes Subdivision in bad faith

HELD: 

Yes. Knowledge gained by the first buyer of the second sale cannot defeat the first buyer's rights except only as provided by law, as in cases where the second buyer first registers in good faith the second sale ahead of the first. Such knowledge of the first buyer does bar her from availing of her rights under the law, among them, first her purchase as against the second buyer. But conversely, knowledge gained by the second buyer of the first sale defeats his rights even if he is first to register the second sale, since such knowledge taints his prior registration with bad faith.

                Accordingly, in order for the Spouses Lumbres to obtain priority over the Spouses Tablada, the law requires a continuing good faith and innocence or lack of knowledge of the first sale that would enable their contract to ripen into full ownership through prior registration. But from the very beginning, the Spouses Lumbres had already known of the fact that the subject property had previously been sold to the Spouses Tablada, by virtue of a valid Deed of Absolute Sale.