G.R. No. 18010; June 21, 1922
BASILIO BORJA, petitioner-appellee, vs. P. W. ADDISON, ADELINA FERRER, VITALIANA BELISARIO, EUGENIO BELISARIO, and AURENO BELISARIO, objectors-appellants.

FACTS

Eulalio Belisario acquired two parcels of land through informacion posesoria proceedings. He sold them to Jose Castillo in 1909 with a right to repurchase. Eulalio’s wife, Paula Ira, died in 1913, leaving their son Maximo Belisario as her sole heir. The lands were later forfeited for non-payment of taxes. In 1916, due to a judgment in favor of C.H. McClure (represented by P.W. Addison), the lands were attached and sold at execution sale to McClure/Addison. In December 1916, following a Supreme Court decision, Castillo executed a deed of resale of the lands back to Eulalio Belisario. On January 19, 1917, Eulalio Belisario sold the same lands to Basilio Borja under a pacto de retro sale. On February 10, 1917, McClure/Addison purchased Eulalio’s interest in the lands at another execution sale, which was recorded on March 14, 1917. The deed from Eulalio to Borja was presented for registration on January 26, 1917, but was initially refused because the old sale to Castillo was not yet cancelled. It was eventually entered in the day-book on March 27, 1917, but cancelled on April 4, 1917. Borja filed for registration of the lands in his name. P.W. Addison and Adelina Ferrer (representing her children, heirs of Maximo Belisario) opposed.

ISSUE

Whether the deed of sale executed by Eulalio Belisario in favor of Basilio Borja conveyed the entire ownership of the lands, or only Eulalio’s undivided share, considering the claim that Maximo Belisario had inherited a half interest from his mother.

RULING

The deed from Eulalio Belisario to Basilio Borja conveyed the entire fee simple title to the lands. The lands were registered under the Mortgage Law solely in the name of Eulalio Belisario. There was no evidence that Borja had any notice that Maximo Belisario claimed any right or interest in the property. Under the doctrine of estoppel by deed and the rule that a person dealing with registered land is not required to go behind the certificate of title, a registered owner can convey a valid title even to the entirety of the land, regardless of any unregistered claims of heirs. The decision of the lower court ordering registration in Borja’s name was affirmed, subject to a lien in favor of Addison for taxes paid to redeem the land from forfeiture. In a subsequent resolution, the Court amended its decision to note that Addison’s right to bring a rescissory action to set aside the sale from Eulalio to Borja on grounds of fraud (as a judgment creditor) was reserved, provided such action was filed within the prescriptive period.