G.R. No. L-8190, December 31, 1913

FACTS:
On October 17, 1908, Isidora Ventura executed a donation of certain lands in favor of her four grandchildren (the Felixes), reserving for herself a life usufruct. The donees accepted the donation on the same day. Subsequently, on December 18, 1908, Ventura sold the same lands to Ines Feliciano under a pacto de retro sale, reserving the right to repurchase. On June 30, 1909, in a land registration proceeding initiated by Ventura, the Court of Land Registration initially issued a decree registering title in her name, subject to an encumbrance and the pacto de retro sale. Before this decree became final, a motion was filed to revise it, seeking to vacate the decree and register title in the names of the donee-grandchildren. Ventura consented to this motion. The court granted it, vacated the original decree, and issued a new decree registering title in the names of the grandchildren.

On December 9, 1910, Ventura exercised her right of repurchase and paid Feliciano the redemption price. Feliciano executed a deed of resale in favor of Ventura on February 18, 1911. When Ventura presented this deed to the Registrar of Titles for registration under the Torrens system, registration was refused. Ventura then filed a motion in the Court of Land Registration seeking to modify the decree to have title registered in her name, claiming absolute ownership by virtue of the redemption.

ISSUE:
Whether Isidora Ventura, after having donated the property and after title was registered in the names of the donees, can acquire absolute ownership and register title in her name by redeeming the property from the pacto de retro vendee.

RULING:
No. The Court affirmed the decision of the Court of Land Registration denying Ventura’s motion. The donation, being duly executed and accepted, immediately transferred ownership of the lands to the donee-grandchildren, subject only to Ventura’s reserved life usufruct. Consequently, from the date of the donation, Ventura retained no disposable interest in the fee simple of the property. The subsequent pacto de retro sale to Ines Feliciano was void as to the ownership of the land, as Ventura had no title to convey. The initial registration decree in Ventura’s favor conferred no permanent rights, as it was vacated and replaced by a decree correctly registering title in the donees. Therefore, Feliciano never acquired any title or interest in the land from Ventura. The redemption payment by Ventura to Feliciano merely extinguished a personal obligation and did not affect the title to the land, which remained vested in the donees. The deed of resale from Feliciano to Ventura was ineffective to transfer title, as Feliciano had none to convey. Ventura is not entitled to have the title registered in her name.