G.R. No. 155856 ; May 28, 2004
LEONORA CEBALLOS, petitioner, vs. INTESTATE ESTATE OF THE LATE EMIGDIO MERCADO and the HEIRS OF EMIGDIO MERCADO, respondents.

FACTS

Petitioner Leonora Ceballos obtained a loan from Emigdio Mercado, secured by a real estate mortgage over her land. She failed to pay the loan. Subsequently, a notarized Deed of Absolute Sale dated February 13, 1982, purportedly signed by Ceballos and her husband, conveyed the property to Mercado for ₱16,500. The title was later transferred to Mercado. Ceballos filed a complaint, alleging the Deed of Absolute Sale was a forgery and that the true transaction was an equitable mortgage or a pacto de retro sale. She presented a PNP report concluding the signatures were forged. The trial court ruled in her favor, declaring the deed void and ordering reconveyance upon payment, and awarded damages.

ISSUE

Whether the Deed of Absolute Sale is a forgery and should be declared void.

RULING

The Supreme Court denied the petition and upheld the Deed of Absolute Sale. The Court emphasized that expert opinion on handwriting is not conclusive and can be rejected by the court. The PNP report, being an expert opinion, was correctly weighed against other evidence. Crucially, the Deed of Absolute Sale was a notarized document, which carries the presumption of regularity and validity. To overturn this presumption, the evidence must be clear, convincing, and more than merely preponderant. Ceballos failed to meet this high burden of proof. Her own testimony was inconsistent, and she did not directly implicate Mercado in the alleged forgery. The Court found the totality of evidence insufficient to prove the deed was fabricated. Therefore, the notarized deed stands as valid, and the transaction is deemed an absolute sale, not a mortgage or pacto de retro. The awards for moral damages, attorney’s fees, and litigation expenses were deleted for lack of basis.