Permanent and incurable

If the Deed of Sale of a land is forged, will the seller or the registered owner lose title to the property or will the buyer acquire any right to it? This is the issue answered in this case of Mina and her ten siblings (the Heirs), which also settles the issue of when the action to annul the said sale should be filed.

 Mina and her ten siblings were the children of Julio married to Gracia who was the registered owner of a parcel of land containing an area of 3,643 square meters and covered by TCT No. 14202 issued on March 8, 1972. The land was mortgaged by Julio to her eldest daughter Mina and her husband Pacio. Hence when he was hospitalized due to a gunshot wound incurred in an ambush, he requested the ten children to gather so that he could convey to them his last two wishes — to redeem the mortgage from Mina and Pacio and for his remains not to be brought to the latter’s house.

Thus in 1982, Andres, one of Julio’s sons and heir offered to redeem the property but Mina and Pacio refused because they were allegedly using the property as tethering place for their cattle.

Later however, in January, 1991 the heirs and their mother Gracia discovered that the title to the property had already been transferred in the name of Mina and Pacio by virtue of a Deed of Absolute Sale executed way back on December 7, 1970 supposedly signed by Julio and Gracia. So the Heirs secured a copy of said Deed and had it examined by the NBI.

The NBI document expert found that the signatures of Julio and Gracia were indeed forged after comparing the genuine specimen with said signatures. So on April 13, 1992, the Heirs and their mother Gracia filed a complaint for annulment of said Deed and cancellation of the title issued in the names of Mina and Pacio plus damages and attorney’s fees with a prayer for Injunction.

In their answer Mina and Pacio denied that the Deed was forged. They alleged that the land was portion of the land inherited by Julio from his parents by virtue of an extrajudicial partition among Julio and his siblings. And on December 7, 1970, Julio executed the Deed of Absolute Sale also signed by their mother Gracia.

But after trial, the lower court found that the Deed was really forged after considering the testimony of the NBI expert. This finding was affirmed by the Court of Appeals (CA).

Mina and Pacio however still questioned these decisions of the lower court and the CA. They contended among others that they were already the registered owners of the land and holder of the title in good faith since 1970 when they registered the Deed of Sale. So they also contended that the action filed by the Heirs on April 3, 1992 was already barred by prescription. Were they correct?

No. In order that the holder of a certificate of title issued by virtue of the registration of a voluntary instrument may be considered a holder in good faith and for value, the instrument registered should not be forged. When the instrument presented is forged even if accompanied by the owner’s duplicate certificate of title, the registered owner does not thereby lose his title, and neither does the assignee or buyer in the forged deed acquire any right or title to the property. The innocent purchaser for value protected by law is one who purchases titled land by virtue of a deed executed by the registered owner himself not by virtue of a forged deed.

Indubitably therefore, the questioned Deed of Absolute Sale did not convey any title to Mina and Pacio. Consequently they cannot take refuge in the protection accorded by the Torrens system on titled lands.

Since Julio’s signature was proven to be a forgery, the instrument is totally void or inexistent as it is absolutely simulated or fictitious (Article 1409, Civil Code). And according to Article 1410 of the same Code, “the action or defense for the declaration of nullity or inexistence of a contract does not prescribe”. The inexistence of a contract is permanent and cannot be cured either by ratification or prescription (Spouses Bernales vs. Heirs of Julian Sambaan etc, G.R. 163271, January 15, 2010).

Note: Books containing compilation of my articles on Labor Law and Criminal Law (Vols. I and II) are now available. Call tel. 7249445.

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