GR 136283; (February, 2000) (Digest)
G.R. No. 136283 February 29, 2000
VIEWMASTER CONSTRUCTION CORPORATION, petitioner, vs. HON. REYNALDO Y. MAULIT, in his official capacity as administrator of the Land Registration Authority; and EDGARDO CASTRO, acting register of deeds of Las Piñas, Metro Manila, respondents.
FACTS
Petitioner Viewmaster Construction Corporation agreed to act as a guarantor for a loan obtained by Allen Roxas to enable him to participate in a bidding for corporate control. In consideration, Roxas agreed to a joint venture to co-develop real estate assets, including a Las Piñas property registered under TCT No. (S-17992) 12473-A in the name of State Properties Corporation. After Roxas gained control but failed to implement the joint venture, Viewmaster filed a Complaint for Specific Performance, Enforcement of Implied Trust and Damages. It subsequently filed a Notice of Lis Pendens for annotation on the title. The Register of Deeds of Las Piñas denied the annotation, citing an inadequate property description and the action’s merely incidental effect on the property. The Land Registration Authority (LRA) and the Court of Appeals affirmed the denial.
ISSUE
The issues are: (1) whether the petitioner failed to adequately describe the subject property in its complaint and notice of lis pendens, and (2) whether the Las Piñas property is directly involved in the civil case such that the notice of lis pendens is registrable.
RULING
The Supreme Court granted the petition, reversing the Court of Appeals. On the first issue, the Court held the property description was adequate. The notice and complaint referred to the specific Transfer Certificate of Title number, and a copy of the title containing the full technical description was attached and made an integral part of both documents. This substantial compliance with the rules was sufficient.
On the second and pivotal issue, the Court ruled the notice of lis pendens was registrable because the action directly affected the title to and possession of the land. The complaint sought the enforcement of an agreement for the co-development of the specific property and the enforcement of an implied trust over it. An action to enforce a contract for the development of land or to declare an implied trust is one that directly affects title, justifying the annotation of lis pendens. The purpose of lis pendens is to advise third persons that any interest they may acquire in the property is subject to the outcome of the litigation. The Court emphasized that a notice of lis pendens does not affect the merits of the case nor create a lien; it merely serves as a warning to protect the applicant’s claimed rights pending judicial determination. The Las Piñas Register of Deeds was thus ordered to annotate the notice of lis pendens on the title.