G.R. No. 17900; June 21, 1922
EUGENIO CAGAOAN, plaintiff-appellant, vs. FELIX CAGAOAN and the REGISTER OF DEEDS OF THE PROVINCE OF PANGASINAN, defendants-appellees.

FACTS

Gregorio Cagaoan executed two deeds of gift over the same parcel of land (Parcel No. 4). On November 3, 1915, he donated it to his son, Felix Cagaoan. On October 26, 1918, he donated the same parcel to his other son, Eugenio Cagaoan. Both deeds were authentic and accepted. Felix’s deed was recorded in the Registry of Deeds on June 10, 1919. Eugenio’s deed could not be recorded due to a variance in the land description, but he took immediate possession of the land after the 1918 donation. Felix never had possession of Parcel No. 4. Gregorio died on December 16, 1918. Eugenio filed an action to be declared owner and to cancel Felix’s registered title, alleging fraud in the first donation. Felix filed a cross-complaint for possession and damages.

ISSUE

Who has a better right to the disputed parcel of land, considering the double donation and the registration of the first deed by Felix?

RULING

The Supreme Court reversed the trial court and declared Eugenio Cagaoan the owner. Applying the rules on double sale by analogy under Article 1473 of the Civil Code, ownership shall belong: (1) to the person acquiring it who first recorded it in the Registry; (2) in default thereof, to the person who first took possession in good faith; (3) in default thereof, to the person who presents the oldest title, provided there is good faith. Here, although Felix recorded his title first, he had full notice of Eugenio’s claim before such registration. Therefore, he was not a third party in good faith under Article 34 of the Mortgage Law, and his registration did not improve his position. Since Eugenio first took possession in good faith, he acquired a better right to the land. The inscription in Felix’s name was ordered cancelled.