G.R. No. L‑3667
Natalia Fabian et al. v. Smith, Bell & Co.
September 5 1907
En Banc

FACTS
1. Emiliano Boncan owned real estate titled in the Registry of Property.
2. On 28 January 1901 Boncan executed a deed of sale in favor of the plaintiffs, but the deed was never recorded.
3. Subsequently, the defendants (Smith, Bell & Co.) obtained a judgment against Boncan and levied an execution upon the same real estate, which remained recorded in Boncan’s name.
4. Plaintiffs sought an injunction to restrain the judgment creditors from selling the property under the execution.
5. The trial court ruled for the defendants; the plaintiffs appealed.

ISSUE
Whether a levy of execution (or attachment) against a debtor’s real property, recorded in the Registry of Property, has priority over an unrecorded deed of conveyance made by the same debtor prior to the levy.

RULING
The Court held that the plaintiffs’ unrecorded deed pre‑empted the execution. Under the Spanish Mortgage Law (art. 42, ¶ 2 & 3; art. 44) and the Civil Code, a provisional record such as an execution or attachment does not confer a real right nor give the creditor priority over earlier conveyances, even if unrecorded. The doctrine that “the first recorded deed prevails” (Art. 1473 Civil Code) does not extend to executions or attachments. Consequently, the execution sale conveyed no title, and the plaintiffs’ claim remained superior.

The judgment of the lower court is reversed and the case remanded with directions to enter judgment for the plaintiffs as prayed. No costs were awarded to either party.