G.R. No. 113095 February 8, 2000
Eliseo Dela Torre, Emilio Dela Torre, Patricio Dela Torre and Martin D. Pantaleon, petitioners, vs. Hon. Court of Appeals, Isabelo Dela Torre, Librada Ilagan Dela Torre, Sps. Emilio Andres and Lydia Clark, Sps. Arsenio Aurelio and Felicidad Andres, Sps. Gonzalo Mañalac and Marina Andres, and Sps. Norberto Andres and Erlinda de Guzman, respondents.

FACTS

Mamerto Dela Torre purchased a 20,539-square meter friar land from the Bureau of Lands in 1938 under a sales contract, paying the first installment. He occupied the land until his death in 1946. The balance of the purchase price was fully paid by 1944. Mamerto’s heirs—petitioners Eliseo, Emilio, and Patricio—later sold the property to co-petitioner Martin Pantaleon in 1975. Respondent Isabelo Dela Torre, Mamerto’s brother, claimed he acquired the land from Mamerto through an oral sale and by paying amortizations and funeral expenses. In 1978, Isabelo secured a Deed of Conveyance from the Director of Lands based on a 1948 Joint Affidavit executed by his father and the then-minor Emilio, leading to the issuance of a title in his name. Despite a notice of lis pendens annotated after Pantaleon filed an adverse claim, Isabelo sold the land to the other respondents.

ISSUE

The primary issue is whether Mamerto Dela Torre acquired full ownership of the friar land upon full payment of the purchase price, and consequently, whether the subsequent grant of title to respondent Isabelo Dela Torre was valid.

RULING

The Supreme Court granted the petition, reversing the Court of Appeals. The Court held that under Act No. 1120 (the Friar Lands Act), a sales contract for friar land conveys ownership to the purchaser, subject only to the resolutory condition of full payment. Once the price is fully paid, the buyer’s title becomes absolute. The law does not require the purchaser to be an actual occupant at the time of full payment, but only at the time of the contract’s execution. Since Mamerto fully paid by 1944, he became the absolute owner, and the land ceased to be part of the public domain. Therefore, the Director of Lands had no authority to issue a Deed of Conveyance to Isabelo in 1978. The Joint Affidavit Isabelo relied upon was deemed hearsay and without probative value, as the affiants were deceased and could not be cross-examined. The Court declared petitioner Martin Pantaleon the true owner, ordered the cancellation of the titles derived from Isabelo, and directed Isabelo to return the purchase price to the subsequent buyers with interest.