Unauthorized but binding

Can a Deed of Extrajudicial Partition signed by one co-heir only be binding on the other co-heirs even those who did not give a special power of attorney authorizing him to do so? This is one of the questions raised in this case involving the estate of Andres.

During his lifetime, Andres begot 14 children and acquired several parcels of land in his business of buying and selling of copra. Sometime in October 1969, Andres and four of his children met and agreed that in order to reduce the inheritance taxes, 4 Deeds of Sale should be executed by Andres to make it appear that he had already sold some of the lands to his children. Among the Deed of Sale was that in favor of the eldest son Pablo covering six parcels of land. Since the sales were made only for taxation purposes and without any monetary consideration, Andres continued to own, possess and enjoy the land and their products turned over by tenants, except for a portion of parcel 5 transferred to Pablo.

When Andres died on October 11, 1972, another son, Lito, acted as administrator of his estate taking over possession of the lands and collecting the products turned over by the tenants. Then on November 22, 1974, Pablo also died but his heirs likewise never took possession of the subject lands except for the said portion of parcel 5.

Then 15 years later or on April 19, 1989, Andres’ heirs executed a Deed of Extrajudicial Partition which included all the lands that were covered by the four deeds of sale previously executed by Andres in favor of Pablo for taxation purposes. Pablo’s eldest son Dado representing his other children or his heirs signed the Deed in their behalf.

Subsequently or on July 15, 1995 Pablo’s other heirs discovered the Deed of Sale of the 5 parcels of land to their father Pablo and the tax declarations in Pablo’s name. And when they learned of the Deed of Extrajudicial Partition covering said parcels of land which was published in a newspaper, they filed a complaint against the heirs of Andres for Declaration of Ownership, Recovery of Possession, Annulment of Documents. Partition, and Damages.

On April 26, 2011 however, the Regional Trial Court (RTC) dismissed their complaint and ruled in favor of the heirs of Andres. The RTC found that the Deed of Sale over the 5 parcels of land was null and void as it was simulated and executed only for taxation purposes. The Deed of Extrajudicial Partition, on the other hand was declared valid by the RTC as all the heirs of Andres were represented and received equal shares. But on appeal to the Court of Appeals (CA), the latter modified the RTC decision by also annulling the Deed of Extrajudicial Partition and remanding the case to the RTC for proper partition of Andres’ estate. It held that Dado could not sign for and in behalf of his siblings and co-heirs of Pablo without a Special Power of attorney from the latter. Was the CA correct?

No. Partition among heirs is not legally deemed a conveyance of real property resulting in change of ownership. It is not a transfer of property from one to another, but rather, it is a confirmation or ratification of title or right of property that an heir is renouncing in favor of another heir who accepts and receives the inheritance. It is merely a designation and segregation of that part which belongs to each heir. The Deed of Extra-Judicial Partition cannot, therefore, be considered as an act of strict dominion. Hence a special power of attorney is not necessary.

Considering that the Deed of sale has been found void and the Deed of Extra-Judicial Partition valid, with the consent of the heirs of Pablo duly given, there is no need to remand the case to the court of origin for partition (Heirs of Policronio Ureta Sr. vs. Heirs of Liberato Ureta, G.R. 165748 and 165930, September 14, 2011, 657 SCRA 555).

Note: Books containing compilation of my articles on Criminal Law I and II and Labor Law, now available at 403 Sunrise Condominium Ortigas Ave. Greenhills S.J., Tel 7249445. Our e-mail address: [email protected].