CaseDig: Sabitsana vs. Muertegui

G.R. No 181359, 05 August 2013
Posted by: Von Derek on July 25, 2018

FACTS:

On September 2, 1981, Alberto Garcia (Garcia) executed an unnotarized Deed of Sale in favor of respondent Juanito Muertegui (Juanito) over a 7,500-square meter parcel of unregistered land (the lot) located in Dalutan Island, Talahid, Almeira, Biliran, Leyte del Norte covered by Tax Declaration (TD) No. 1996 issued in 1985 in Garcia's name.

Juanito's father Domingo Muertegui, Sr. (Domingo Sr.) and brother Domingo Jr. took actual possession of the lot and planted thereon coconut and ipil-ipil trees. They also paid the real property taxes on the lot for the years 1980 up to 1998.

On October 17, 1991, Garcia sold the lot to the Muertegui family lawyer, petitioner Atty. Clemencio C. Sabitsana, Jr. (Atty. Sabitsana), through a notarized deed of absolute sale. The sale was registered with the Register of Deeds on February 6, 1992.9 TD No. 1996 was cancelled and a new one, TD No. 5327,10 was issued in Atty. Sabitsana's name. Although Domingo Jr. and Sr. paid the real estate taxes, Atty. Sabitsana also paid real property taxes in 1992, 1993, and 1999. In 1996, he introduced concrete improvements on the property, which shortly thereafter were destroyed by a typhoon.


ISSUE:

Whether or not the RTC has jurisdiction over the case in view of the fact that the assessed value of the subject property land was only ₱1,230.00?


HELD:

Yes, the Regional Trial Court has jurisdiction over the suit for quieting of title.

On the question of jurisdiction, it is clear under the Rules that an action for quieting of title may be instituted in the RTCs, regardless of the assessed value of the real property in dispute. Under Rule 63 of the Rules of Court,29 an action to quiet title to real property or remove clouds therefrom may be brought in the appropriate RTC.  (Cf.:  General rule that jurisdiction over real actions is determined by the assessed value of subject property).

It must be remembered that the suit for quieting of title was prompted by petitioners' August 24, 1998 letter-opposition to respondent's application for registration. Thus, in order to prevent a cloud from being cast upon his application for a title, respondent filed Civil Case No. B-1097 to obtain a declaration of his rights. In this sense, the action is one for declaratory relief, which properly falls within the jurisdiction of the RTC pursuant to Rule 63 of the Rules.

The sale to respondent Juanito was executed on September 2, 1981 via an unnotarized deed of sale, while the sale to petitioners was made via a notarized document only on October 17, 1991, or ten years thereafter. Thus, Juanito who was the first buyer has a better right to the lot, while the subsequent sale to petitioners is null and void, because when it was made, the seller Garcia was no longer the owner of the lot. Nemo dat quod non habet.

The fact that the sale to Juanito was not notarized does not alter anything, since the sale between him and Garcia remains valid nonetheless. Notarization, or the requirement of a public document under the Civil Code,33 is only for convenience, and not for validity or enforceability.34 And because it remained valid as between Juanito and Garcia, the latter no longer had the right to sell the lot to petitioners, for his ownership thereof had ceased.