G.R. No. 120166 August 3, 1998
DOMINADOR ARAMBULO, petitioner, vs. COURT OF APPEALS and FLORA FLORES, respondents.

FACTS

Petitioner Dominador Arambulo filed a complaint for annulment of sale with damages against respondent Flora Flores in the Regional Trial Court of Cabanatuan City. Arambulo alleged he was the lawful owner of a parcel of agricultural land covered by Transfer Certificate of Title (TCT) No. NT-21357. He claimed his title was illegally cancelled in favor of Flores based on a deed of sale he never executed. He further asserted that Flores caused the preparation of fictitious documents to support her claim: a petition for issuance of a second owner’s duplicate copy of TCT No. NT-21357 (falsely made to appear as filed by Arambulo), an order dated September 20, 1984 from Judge Domingo Garcia directing the Register of Deeds to issue a second owner’s copy, and a certification dated October 9, 1984 from acting branch clerk of court Rosalinda Adrineda. Arambulo verified these court documents were spurious. Through the falsified deed of sale, Flores obtained TCT No. NT-187175 in her name. Arambulo prayed for annulment of the deed, cancellation of Flores’ title, restoration of his title, and damages.
Flores, in her answer, claimed she bought the property in good faith and for value, registered it in her name, and alleged the complaint was initiated by unscrupulous persons. She also contended Dominador Arambulo was dead and someone was merely using his name.
During trial, only Arambulo presented evidence. The trial court found the petition for second owner’s copy, the court order, and the certification to be fictitious, and declared the deed of absolute sale falsified. It rendered judgment in favor of Arambulo, annulling the deed, ordering cancellation of Flores’ title and issuance of a new title to Arambulo, and awarding damages and attorney’s fees.
Flores appealed to the Court of Appeals. The appellate court sustained the trial court’s findings that the court order and certification were spurious and not lawful bases for issuing a new owner’s duplicate copy or Flores’ title. However, it found the Deed of Absolute Sale valid and genuine, modifying the trial court’s decision to declare the sale valid, while still ordering cancellation of TCT No. NT-187175 (for being null and void due to the spurious supporting documents) and directing investigation of the spurious court documents.
Arambulo filed the present petition, contending the Court of Appeals disregarded rules on pleadings and judicial admissions and did not apply settled doctrines on land titles and deeds.

ISSUE

Whether the Deed of Absolute Sale purportedly executed by Dominador Arambulo in favor of Flora Flores is valid and genuine.

RULING

No. The Supreme Court reversed the decision of the Court of Appeals.
The Court held that the deed of sale is a forgery. The respondent court erred in declaring it valid based on the presumption of regularity of notarized documents. The deed presented was merely a photocopy from the Register of Deeds, not the original, and there was no notarial acknowledgment to give it full faith and credit. Arambulo consistently denied executing the deed, disowned the signature, and testified he did not know Flores. The spurious nature of the supporting documents (the petition, court order, and certification) used to obtain the second owner’s copy and subsequently register the sale further undermines the deed’s validity. The fact that Flores did not present the original deed, any receipt of purchase price, or tax declarations in her name (while Arambulo presented tax declarations showing his possession) supported the conclusion of forgery. The Court also noted that a prior Court of Appeals decision had ordered cancellation of Arambulo’s title over a portion of the land in favor of another person, which, if executed, would have prevented a valid transfer to Flores, but said decision was never enforced, and Arambulo remained in possession.
The Supreme Court reinstated the trial court’s judgment with modifications: (1) declaring the deed of absolute sale null and void; (2) ordering the Register of Deeds of Nueva Ecija to cancel TCT No. NT-187175 in Flores’ name and issue a new title in favor of Arambulo; and (3) ordering Flores to surrender the second owner’s copy of TCT No. NT-187175 for cancellation.