G.R. No. L-650, May 14, 1948
NICANORA BERNAS, ELIGIA BOTOR, JUANA BOTOR, and PRIMO BOTOR, plaintiffs-appellees, vs. ARCADIO M. BOLO, defendant-appellant; MARIA M. PAZ, ET AL., third party appellees.

FACTS

Lucio Botor sold a parcel of land twice: first, to Arcadio M. Bolo on December 19, 1929, through a private document of sale; and second, to Simeon B. Paz on April 29, 1939, through a notarized deed of cession that was registered in the Registry of Deeds. Bolo’s earlier sale was not registered. Simeon B. Paz, however, knew of the prior sale to Bolo, as evidenced by his own allegations in a cross-complaint filed on February 24, 1939, and in letters he sent to Bolo, where he acknowledged that Botor had ceded the land to Bolo in consideration for Bolo paying Botor’s debt. The trial court ruled in favor of Paz, giving priority to his registered title.

ISSUE

Who has a better right to the land under Article 1473 of the Civil Code, considering that the second buyer registered the deed but had knowledge of the prior sale?

RULING

The Supreme Court reversed the trial court and declared Arcadio M. Bolo the owner. Under Article 1473 of the Civil Code, for real property, ownership belongs to the purchaser who first registers the title in good faith. Here, although Simeon B. Paz registered the deed, he was not in good faith because he had prior knowledge of the sale to Bolo. Therefore, the registration does not confer any right. The fundamental requirement of good faith under Article 1473 is absent. The cession in favor of Paz is null and void.

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