G.R. No. 77029 August 30, 1990
BIENVENIDO, ESTELITA, MACARIO, LUIS, ADELAIDE, ENRIQUITA and CLAUDIO, all surnamed GEVERO, petitioners, vs. INTERMEDIATE APPELLATE COURT and DEL MONTE DEVELOPMENT CORPORATION, respondents.

FACTS

The property in dispute is a portion of Lot No. 2476 in Cagayan de Oro City. The mother lot was originally co-owned by Teodorica Babangha and her six children. Ricardo Gevero, one of the children, sold a portion to Luis Lancero in 1952 via a notarized deed of absolute sale. Lancero subsequently sold this portion to Del Monte Development Corporation (DELCOR) in 1964, and DELCOR obtained a transfer certificate of title. After Teodorica’s death, her heirs, including Ricardo, executed an Extra-Judicial Settlement and Partition in 1966, which adjudicated Lot 2476-D to Ricardo. DELCOR, claiming ownership through its purchase from Lancero, filed an action to quiet title and annul the partition insofar as it prejudiced its acquired land. The trial court ruled in favor of DELCOR, declaring it the absolute owner of Lot 2476-D.

ISSUE

The core issues are: (1) the validity of the 1952 deed of sale from Ricardo Gevero to Luis Lancero; (2) whether DELCOR was a purchaser in good faith; and (3) whether DELCOR’s action was barred by laches.

RULING

The Supreme Court affirmed the lower courts’ decisions, upholding DELCOR’s ownership. On the first issue, the Court found the 1952 deed of sale valid. As a notarized document, it is a public instrument, and its execution is equivalent to the delivery of the property under Article 1498 of the Civil Code. Petitioners’ allegations of forgery and flaws in the document were unsubstantiated and could not overcome the presumption of regularity accorded to a notarized instrument.
On the second issue, the Court ruled DELCOR was a purchaser in good faith and for value. The property was registered land. Under established principles of land registration, a purchaser may generally rely on the correctness of the certificate of title. DELCOR exceeded this standard by investigating Lancero’s title, checking the subdivision plan and technical description, verifying the deed of sale, and confirming Lancero’s exclusive possession before purchasing. This diligence established its good faith.
Finally, the action was not barred by laches. DELCOR’s ownership vested upon registration of its title in 1964, and it possessed the land until forcibly dispossessed in 1969, after which it promptly initiated the suit. Its rights, anchored on a valid title acquired in good faith, could not be defeated by the petitioners’ subsequent claim. The petition was dismissed.