G.R. No. 246096, January 13, 2021
SPOUSES BENNY AND NORMITA ROL, PETITIONERS, VS. ISABEL URDAS RACHO, RESPONDENT.

FACTS

Upon the death of Loreto Urdas, who had no surviving descendants, ascendants, or spouse, his siblings—Fausto Urdas, Sr., Chita Urdas, Maria Urdas Baclig, and Isabel Urdas Racho—became his legal heirs and co-owners of his estate, specifically Lot No. 1559. The lot was later subdivided into Lot No. 1559-A and Lot No. 1559-B. Fausto, Chita, and Maria, together with Allan (who was not a legal heir), executed an Extrajudicial Settlement with Sale, whereby they sold Lot No. 1559-A to petitioners Spouses Rol and adjudicated Lot No. 1559-B to Allan. Isabel did not participate in nor have notice of this settlement. Subsequently, almost two decades later, Allan sold Lot No. 1559-B to the petitioners via a Deed of Sale. Petitioners had been in open, continuous, and peaceful possession of Lot No. 1559-A since 1993 and Lot No. 1559-B since 2010, until Isabel filed a complaint in 2013.

ISSUE

Did Fausto, Chita, and Maria, along with Allan, validly execute the Extrajudicial Settlement with Sale regarding the subdivided lots?

RULING

Yes, but only to the extent of their collective three-fourths (3/4) undivided aliquot shares in the co-owned property. As co-heirs and co-owners, Fausto, Chita, and Maria validly subdivided the lot and disposed of their undivided interests. The Extrajudicial Settlement with Sale and the subsequent Deed of Sale from Allan to petitioners are valid insofar as they cover the 3/4 interest belonging to the three siblings. Isabel’s 1/4 share remains excluded, as she did not consent to the transactions. Consequently, petitioners and Isabel are declared co-owners of both Lot No. 1559-A and Lot No. 1559-B, with petitioners holding a 3/4 interest and Isabel holding a 1/4 interest in each.