1) Corazon owned a property that was illegally sold by her step-mother Purificacion to Catalina Remorin. Corazon filed suits to recover the property.
2) An agreement was made between Corazon, Catalina, and Laurelia where Corazon would sell the property to Laurelia and Catalina would use the proceeds to pay off her mortgage.
3) Catalina did not have authorization to later sell the property to Mariquita Macapagal. The sale to Laurelia was valid even though the contract did not state the accurate price, and Laurelia's ownership and title were upheld since she recorded the purchase first.
1) Corazon owned a property that was illegally sold by her step-mother Purificacion to Catalina Remorin. Corazon filed suits to recover the property.
2) An agreement was made between Corazon, Catalina, and Laurelia where Corazon would sell the property to Laurelia and Catalina would use the proceeds to pay off her mortgage.
3) Catalina did not have authorization to later sell the property to Mariquita Macapagal. The sale to Laurelia was valid even though the contract did not state the accurate price, and Laurelia's ownership and title were upheld since she recorded the purchase first.
1) Corazon owned a property that was illegally sold by her step-mother Purificacion to Catalina Remorin. Corazon filed suits to recover the property.
2) An agreement was made between Corazon, Catalina, and Laurelia where Corazon would sell the property to Laurelia and Catalina would use the proceeds to pay off her mortgage.
3) Catalina did not have authorization to later sell the property to Mariquita Macapagal. The sale to Laurelia was valid even though the contract did not state the accurate price, and Laurelia's ownership and title were upheld since she recorded the purchase first.
1) Corazon owned a property that was illegally sold by her step-mother Purificacion to Catalina Remorin. Corazon filed suits to recover the property.
2) An agreement was made between Corazon, Catalina, and Laurelia where Corazon would sell the property to Laurelia and Catalina would use the proceeds to pay off her mortgage.
3) Catalina did not have authorization to later sell the property to Mariquita Macapagal. The sale to Laurelia was valid even though the contract did not state the accurate price, and Laurelia's ownership and title were upheld since she recorded the purchase first.
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G.R. No.
158380 May 16, 2005
MARIQUITA MACAPAGAL v. CATALINA O. REMORIN, CORAZON CALUZA-BAMRUNGCHEEP, and LAURELIA CALUZA-VALENCIANO
Facts: Corazon sold her property to mortgagor Laurelia. Although the contract did not accurately reflect the actual purchase price of the property, it remains valid because it is only a relative simulation which does not affect the validity of the contract but does require its reformation.
> Sale (July 1986) of the Property of Corazon Caluza-Bamrungcheep (which was inherited from her father) by her step-mother Purificacion Arce-Caluza to Catalina Remorin ~ Corazon left for Thailand (after marriage to a Thai), Purificacion was entrusted with the administration of the property, Purificacion obtained Titles in her name by claiming to be the sole heir of her deceased husband and to have lost her TCTs > Catalina mortgaged the property to L & R Lending Corporation for P200k and then to Laurelia Caluza-Valenciano for P295k to pay off the former mortgage > Civil Suit (December 29, 1986) by Corazon for reconveyance and damages against Purificacion and Catalina upon discovery of the sale of her property and Criminal Suit by Corazon against Purificacion and Catalina for falsification and perjury > Deed of Transfer (May 4, 1987) executed by Catalina, signed by Purificacion as witness, admitting the wrong they did in illegally transferring the lots in their names and acknowledging Corazon to be the rightful owner ~ presented to the Register of Deeds which caused the cancellation of TCT in favor of Catalina and issuance of TCT in favor of Corazon but with annotation of Laurelias mortgage > MOA (September 9, 1988) among Corazon, Catalina and Laurelia where Corazon would sell her property and from its proceeds, Catalina would pay her mortgage obligation to Laurelia ~ Approved (September 16, 1988) ~ (revision of the March 21, 1988 MOA that ceded ownership to Purificacion upon satisfaction of mortgage to Laurelia due to Purificacions death on July 28, 1988) > Sale (May 24, 1989) of Property by Corazon to Laurelia ~ Issuance of TCT in Laurelias name (July 21, 1989) > Sale (August 24, 1989) of Property by Catalina to Mariquita Macapagal > SUIT (November 28, 1989) by Laurelia against Macapagal for ejectment > SUIT by Macapagal for nullification of the Sale to Laurelia > CONTENTION of Macapagal: that the contract of sale between Corazon and Laurelia was invalid because it did not reflect the true purchase price; that Catalina was authorized to sell the property as provided in the MOA that Catalina shall pay off her mortgage obligation and incidental expenses from the proceeds of the sale
> Sale of Property by Corazon to Laurelia is VALID even if it did not accurately reflect the true consideration, the actual purchase price of the property > Not cause for declaration of its nullity ~ only a relative simulation of the contract which remains valid and enforceable ~ valid but subject to reformation
> Catalina NOT AUTHORIZED to sell the property > Not Authorized under the MOA ~ MOA not a Waiver by Corazon, as owner of the property, of right to enjoy and dispose her property ~ Parties did not intend the MOA to be the document itself considering that they agreed to execute such other documents or papers as are necessary to implement the agreement ~ Necessity of a special power of attorney for an agent to enter into any contract by which the ownership of an immovable property is transmitted
> Macapagal cannot enforce the MOA > stranger/third party > not identified outright as the buyer for whom he has been conferred a favor
> Macapagal not a buyer in good faith ~ did not buy the disputed lot from its registered owner
> Laurelia as the rightful owner > Double sales of real property, ownership passes to the vendee who, in good faith, first recorded it in the Registry of Property > Laurelia registered the sale and was issued a TCT in her name on July 21, 1989, even before the sale to Macapagal