G.R. No. L-5048 and L-5049 October 31, 1953
In re Testate Estate of the late HILARION MARTIR. ANGELA MARTIR DE GUANZON, ETC., plaintiffs-appellees, vs. The Spouses AMADO P. JALANDONI and PAZ RAMOS, co-administrators-appellants.

FACTS

This is an appeal from an order of the Court of First Instance of Occidental Negros approving the inventory and accounts submitted by co-administratrix Angela Martir in the testate proceedings of the deceased spouses Hilarion Martir and Ligoria Martir. Hermogenes Martir and Angela Martir, the only legitimate children, were appointed co-administrators. Hermogenes died in 1943 and was succeeded by Amado P. Jalandoni. On July 5, 1947, Angela Martir submitted an inventory, accounts for 1945-1946, and a project of partition. Co-administrator Amado P. Jalandoni objected to the inventory for including parcels of land his wife, Paz Ramos, allegedly bought from Hermogenes Martir. The accounts were also objected to by Jalandoni and the Financing Corporation of the Philippines, a judgment creditor of Hermogenes Martir and purchaser of his interests in the estates at an execution sale. The court overruled the objections and approved the inventory and accounts on October 14, 1948, directing a final accounting and postponing the hearing on the project of partition. Motions for reconsideration were denied. Jalandoni and his wife appealed. The Court of Appeals certified the case to the Supreme Court as the value in controversy exceeded P50,000. The appeal was deemed limited to the order overruling objections to the inventory and declaring the sale to Paz Ramos null and void. The record shows that on September 4, 1940, Hermogenes Martir executed a deed (Exhibit G) selling all his rights and interests in ten cadastral lots registered in his deceased parents’ names to Paz Ramos, subject to repurchase within three years. As repurchase was not made, the vendee consolidated title and obtained transfer certificates of title for some lots.

ISSUE

Whether the probate court acted correctly in approving the inventory that included the lots subject of the sale to Paz Ramos and in declaring that sale null and void.

RULING

The Supreme Court affirmed the order approving the inventory but clarified the nature of the sale. The probate court may pass upon the title to property for the purpose of determining whether it should be included in the inventory, though such determination is not conclusive and is subject to a separate action. The inclusion of the lots in the inventory was proper as they were admitted to be part of the estates and were registered in the names of the deceased spouses. However, the sale by Hermogenes Martir to Paz Ramos was not necessarily void in its entirety. The deed conveyed only his rights and interests as an heir. There is no law prohibiting an heir from selling his interests in an inheritance, provided such sale is subject to the result of the administration proceedings. Following Cea vs. Court of Appeals, such a sale is void as a conveyance of property in custodia legis but valid as an assignment of his interest as an heir. Therefore, the sale is deemed a mere assignment of Hermogenes Martir’s interest in the lots, subject to the result of the administration proceedings, and without prejudice to any action contesting the estates’ title to the lots. Consideration of the order regarding the accounts was deferred pending resolution of the Financing Corporation’s motion for reconsideration.