G.R. No. 107967 March 1, 1994
CONSORCIA TENIO-OBSEQUIO, ORLANDO OBSEQUIO, and MANUEL, REGINA, TUNAY and MELITON, all surnamed OBSEQUIO, petitioners, vs. COURT OF APPEALS, EUFRONIO ALIMPOOS, and PONCIANA ALIMPOOS, respondents.

FACTS

The subject is Lot No. 846, Pls-225 in Agusan del Sur, originally covered by Original Certificate of Title No. P-1181 in the name of respondent Eufronio Alimpoos, acquired via homestead. It is now registered under Transfer Certificate of Title No. T-1421 in the name of petitioner Consorcia Tenio-Obsequio. Private respondents (Alimpoos spouses) filed a complaint for recovery of possession and ownership, alleging they mortgaged the land to Eduardo Deguro in 1964 for P10,000.00, delivered the title as security, and shared harvests. They claimed that on June 25, 1965, Deguro and his wife, without their knowledge and consent, prepared a deed of sale through misrepresentation, making it appear the land was sold to them. This deed was annotated on the title, leading to the cancellation of Alimpoos’s OCT and the issuance of TCT No. T-1360 in Deguro’s name. After Deguro’s death, his heirs sold the land to petitioner Consorcia Tenio-Obsequio, and TCT No. T-1421 was issued in her name on September 22, 1970. Alimpoos allegedly discovered this only in 1982 upon receiving a Certificate of Agricultural Leasehold from the DAR. Petitioners, as defendants, claimed the sale by Alimpoos to Deguro was genuine and evidenced by a deed of absolute sale, and that Consorcia Tenio-Obsequio purchased the land from Deguro’s heirs in good faith and for value. The trial court ruled in favor of petitioners, declaring Consorcia Tenio-Obsequio the true owner and awarding damages. The Court of Appeals reversed, declaring Alimpoos the true owner, nullifying the deed of sale and the subsequent titles, ordering reconveyance, and awarding damages to Alimpoos.

ISSUE

Whether petitioner Consorcia Tenio-Obsequio is a purchaser in good faith and for value, such that reconveyance of the land to the original owner (Alimpoos) is not warranted despite an allegedly forged deed of sale.

RULING

Yes. The Supreme Court granted the petition, reversing the Court of Appeals and reinstating the trial court’s judgment in favor of petitioners. Reconveyance is not in order. Petitioner Consorcia Tenio-Obsequio is a purchaser in good faith and for value. There was no showing she participated in any alleged forgery. At the time of her purchase, the land was already registered in Deguro’s name, the tax declaration was in his name, and the title indicated Deguro acquired it via a deed of sale, with no annotations or flaws to arouse suspicion. A purchaser in good faith has the right to rely on the face of the Torrens certificate of title. The Torrens system aims to ensure public confidence in titles, and one dealing with registered land may safely rely on the certificate. Furthermore, the deed of sale to Deguro was notarized and approved by the Secretary of Agriculture and Natural Resources under the Public Land Act, enjoying a presumption of regularity. The difference in Alimpoos’s signatures alone is insufficient to prove forgery, as his signatures in other documents were similar to the one on the deed. Therefore, as an innocent purchaser for value, Consorcia Tenio-Obsequio’s title is protected.