G.R. No. 246127. March 02, 2022
ATTY. ROBERTO F. DE LEON, PETITIONER, VS. LOURDES S. ASOMBRADO-LLACUNA, RESPONDENT.

FACTS

Lourdes S. Asombrado-Llacuna purchased Lot 39, Block 4 in Provident Village, Marikina City, from Provident Securities Corporation (Prosecor) in 1983. A Deed of Absolute Sale was executed in 1986. Despite full payment, Prosecor failed to deliver the Transfer Certificate of Title (TCT No. 186004), which remained under the original owner’s name. Lourdes and her family have continuously occupied the property. Prosecor was later dissolved. On May 11, 1993, Provident Savings Bank (PSB), represented by its President Atty. Roberto F. De Leon, executed an Assignment of Mortgage over the subject property (still under the original owner’s name) to J.M. Tuason & Co., Inc. Atty. De Leon later resigned, and PSB was dissolved in 1996. In February 2012, Lourdes discovered the annotation of the Assignment of Mortgage on the TCT. Her counsel sent demand letters to Atty. De Leon in September 2012 for the delivery of the title, but he did not respond. Lourdes filed a complaint before the Housing and Land Use Regulatory Board (HLURB) against Atty. De Leon and PSB, praying for delivery of title and damages. Atty. De Leon sought dismissal based on HLURB’s lack of jurisdiction over the subject matter (as the complaint was not against the developer), failure to state a cause of action (as he and PSB were not real parties-in-interest), and prescription/laches. The HLURB Arbiter and later the Board of Commissioners dismissed the complaint, citing the failure to implead the indispensable party, Prosecor, and lack of evidence that PSB was Prosecor’s successor-in-interest. The Court of Appeals set aside the HLURB decision and remanded the case for the inclusion of Prosecor as an indispensable party. Atty. De Leon filed this Petition for Review on Certiorari.

ISSUE

Whether the HLURB has jurisdiction over the complaint for delivery of title filed by a subdivision lot buyer against a banking institution and its former president, who are not the subdivision developer or seller.

RULING

No. The HLURB’s jurisdiction is limited to cases filed by buyers of subdivision lots or condominium units against the owner, developer, dealer, broker, or salesman thereof. The complaint was filed against Atty. De Leon and PSB, a banking institution. There is no allegation or evidence that PSB is the owner, developer, dealer, broker, or salesman of the subdivision lot, or that it is the successor-in-interest of Prosecor, the developer. The mere execution of an Assignment of Mortgage by PSB does not make it a successor-in-interest to Prosecor. The cause of action, if any, against Atty. De Leon and PSB is not within the HLURB’s exclusive jurisdiction but is an ordinary civil action for specific performance or damages cognizable by regular courts. The Court of Appeals erred in remanding the case to the HLURB. The HLURB decisions are reinstated, and the complaint is dismissed for lack of jurisdiction.