GR L 45246; (April, 1939) (Digest)
G.R. No. L-45246; April 10, 1939
CARLOS N. FRANCISCO, petitioner-appellee, vs. PARSONS HARDWARE CO., INC., oppositor-appellant.
FACTS
A homestead patent was issued to Alfredo Hernandez on July 26, 1929. He incurred debts to both appellee Carlos N. Francisco and appellant Parsons Hardware Co., Inc., prior to the expiration of the five-year period from the patent’s issuance. The provincial sheriff levied upon and sold the homestead lot at public auction twice—first to Francisco and then to Parsons Hardware—to satisfy these pre-five-year debts.
ISSUE
Whether the execution sales of the homestead lot to satisfy debts incurred before the expiration of the five-year period from the issuance of the patent are valid.
RULING
No. The Supreme Court reversed the lower court’s decision. Applying Section 116 of Act No. 2874 (the Public Land Act), which prohibits any encumbrance or alienation of a homestead within five years from the grant of the patent, the Court held that both execution levies and sales were null and void because they were based on debts contracted within the prohibited period. The Court ordered the cancellation of all annotations related to these executions and transactions on the homestead certificate of title.
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