G.R. No. R- C.A. No. 8551 ; June 29, 1951
Emma Villasor, plaintiff-appellant, vs. Gabriel B. Camon, Antonio M. A. Lizares and Mariano Cordova, Register of Deeds for the province of Occidental Negros, defendants-appellees.

FACTS

Lot No. 746 was registered in the name of the Philippine National Bank (PNB). Defendant Gabriel B. Camon bought the lot from PNB in July 1936 under an installment contract, with title to be transferred upon full payment. Camon built a house on the lot. Being indebted to plaintiff Emma Villasor for P3,492, Camon sold all his rights and interest in the lot and its improvements to Villasor for P2,500 via a public instrument (Exhibit “A”). Villasor’s attorney sent this document to the Register of Deeds for registration but did not present the corresponding duplicate certificate of title from PNB. In July 1937, Camon obtained a loan from defendant Antonio M. A. Lizares, purportedly secured by a mortgage on the lot, but this document was not registered. In July 1938, Camon sold his rights and interest in the lot to Lizares, who paid P1,096.65 to PNB. PNB then transferred the lot to Camon, who in turn transferred it to Lizares. Lizares obtained Transfer Certificate of Title No. 30433 in his name and paid the land taxes. Villasor filed a complaint. The trial court absolved Lizares, ordered Villasor to return the lot and improvements to Lizares and pay rent of P30 per month from August 5, 1939, and ordered Camon to pay Villasor P3,492. Villasor appealed.

ISSUE

1. Whether the mere registration of the deed of assignment (Exhibit “A”) in the entry book of the Register of Deeds, without presentation of the owner’s duplicate certificate of title for annotation, constitutes sufficient registration to effect conveyance and provide notice to third parties.
2. Whether the lower court erred in ordering Villasor to pay rent to Lizares from August 5, 1939.

RULING

1. No. For voluntary instruments like a deed of assignment, registration requires not only entry in the registration book but also a memorandum on the owner’s duplicate certificate and the original certificate of title, as mandated by Sections 52, 57, 61, and 64 of Act No. 496 (Land Registration Act). The production of the owner’s duplicate certificate is a prerequisite. Citing Fidelity and Surety Co. v. Pastora Conegro, Director of Lands v. Addison, and Philippine National Bank v. Fernandez, the Court held that the Register of Deeds has no authority to register a conveyance in fee without the presentation of the conveyor’s duplicate certificate unless ordered by a court. The ruling in Government v. Aballe, which suggested entry book registration alone might suffice, is inapplicable as it pertains only to involuntary instruments like attachments under Section 72 of Act No. 496 . Therefore, the registration of Exhibit “A” without the duplicate certificate did not effect a conveyance to Villasor or provide notice to Lizares.
2. Yes, in part. A possessor in good faith is not obliged to pay rent until advised of the defect in title. Under Articles 1943, 1945, and 1951 of the Civil Code, civil interruption of possession occurs upon service of a judicial summons asserting the nullity or defect of the possessor’s title. The summons served on Lizares in Villasor’s complaint did not interrupt Villasor’s good faith possession because the complaint alleged Villasor’s ownership, not a defect in her title. Villasor’s good faith possession was interrupted only when Lizares filed his amended answer on December 2, 1939, asserting his ownership via a cross-claim. Therefore, the lower court erred in ordering rent from August 5, 1939. The decision was modified to sentence Villasor to pay rent of P30 per month from December 2, 1939, until she returns the property to Lizares. The judgment was affirmed with this modification.