Sps. Tan V Bantegui

 

Characteristics of auction sale SPOUSES RAMON AND ROSIOTA TAN vs. GORGONIA BANTEGUI Re!resente" #$ GUADA%UPE B. BAUTISTA& an" S!ouses '%ORANTE an" '%ORENCIA B. CAEDO G.R. No. ()*+,- Octo#er ,* ,++) 'ACTS In (/)* Gor0onia Bante0ui 1 2arrie" to 3esus Ba$ot4 ac5uire" a c5uire" a !arcel of lan" locate" in 6ue7on Cit$ un"er TCT no. ,8*)8. The !ro!ert$ 9as rente" to s!ouses 'lorante B. Cae"o an" 'lorenci 'lorencia a B. Cae"o 9ho resi"e" in sai" !ro!ert$ until (//*. In (/-+ Bante5ui left for the US retur returne" ne" to the Phil in (/88 to e:ecute a s!ecial !o9er of attorne$ 2a;in0 Gua"alu!e B. Bautista her re!resentative #efore 0oin0 #ac; to the US.  T  Ta:es a:es 9er 9ere e !ai" until (/-- #ut the rreal eal !ro!ert$ tta:es a:es fr fro2 o2 the $ear (/(/-8 8 to (/8< inclusive of !enalties 9ere not !ai". Due to no !a$2ent of ta:es the cit$ treasurer of 6ue7on Cit$ sol" sai" !ro!ert$ at !u#lic auction on Nove2#er ,((/8* to S!ouses E"il#erto an"  3ose=na Ca!istrano for the su2 of P(++++. P(++++. The Certi= Certi=cate cate of Sale of Delin5uent Pro!ert$ 9as issue" on Nov. ,>(/8*.  The !ro!ert$ 9as 9as not re"ee2e re"ee2e" " 9ithin one $ear title to sai" !ro!ert$ 9as consoli"ate" to the Ca!istranos an" TCT No. (8)( 9as issue" in their na2es on 3ul$ *(/8-. The Ca!istranos  ho9ever "i" not ta;e !ossession of the lan" nor infor2 the Cae"os a#out the sale or collecte" an$ rent for2 the2. The$ "i" not !a$ an$ real !ro!ert$ ta:es thereon. On 3une ,+(//8 The !ro!ert$ 9as later sol" #$ the Ca!istranos to s!ouses Evel$n 1"au0hter of the Cae"os4 an" 3esse Per Pere$ra e$ra for P>++++. Their TCT 9as cancelle" an" a ne9 TCT 9as issue" on 3an. (+(/8/ to Per Pere$ra e$ra 9ho also "i" not ta;e !ossession of the !ro!ert$ in 5uestion #ut instea" 2ort0a0e" the !ro!ert$ to Rural Rural Ban; of I2us Cavite. Sai" 2ort0a0e 9as annotate" on the title. Bante0ui an" Cae"os 9ere not infor2e" of the transactions all the 9hile Cae"os !ai" rent to Bante0ui until Dece2#er (//* the Real Pro!ert$ Ta: Co"e  The auction sale of real !ro!ert$ !ro!ert$ for the colle collection ction of "elin5uent ta:e ta:es s is in  personam  personam  not in rem. Althou0h sucient innot !rocee"in0s rem li;e rem li;e lan"of re0istration re0istrati on 2ere notice #$ !u#lication 9ill satisf$ theinre5uir re5uire2ents e2ents

 

!rocee"in0s in personam. FPu#lication of the notice of "elin5uenc$ F9ill not suce consi"erin0 that the !roce"ure in ta: sales is in personam.H personam.H It is still incu2#ent u!on the cit$ treasurer to sen" the notice "irectl$ to the ta:!a$er  the re0istere" re0istere" o9ner of the !ro!ert$  in or"er to !rotect the latter?s interests. interests. Althou0h !rece !rece"e" "e" #$ !ro !ro!er !er a"vertise2e a"vertise2ent nt an" !u#lication an auction sale is voi" a#sent an actual notice to a "elin5uent ta:!a$er.  The sale of lan" for ta: "elin5uenc$ "elin5uenc$ is in "er "ero0ation o0ation of !ro!ert !ro!ert$ $ ri0hts an" "ue !rocessF& the !rescri#e" ste!s 2ust #e follo9e" strictl$.H In the !resent case notices either of "elin5uenc$ or of sale 9ere not 0iven to the "elin5uent ta:!a$er. ta:!a$er. Those notices are 2 2an"ator$ an"ator$ an" failure to issue the2 invali"ates a sale. Because it 9as clearl$ in contravention of the re5uir re5uire2ents e2ents un"er the la9 an" @uris!ru"ence  The su#se5uent sale of the real real !ro!ert !ro!ert$ $ "i" not 2a;e its !ur !urchaser chaser the ne9 o9ner. hile it is true that Transfer Certi=cates of Title have alrea"$ #een issue" in the na2es ofConsi"erin0 the su#se5uent s u#se5uent !urchasers the$ nonetheless #e invali"ate". the failur failure e to a#i"e #$shoul" the 2an"ator$ rre5uire2e e5uire2ents nts of a !rocee"in0 in personam personam no #etter title than that of the ori0inal o9ner can #e assu2e" #$ the transferees.  Quod nullum est, nullum producit efectum. efectum. That 9hich is a nullit$ !r !ro"uces o"uces no eect. Moreover failure to ass Moreover assert ert o9nershi! over a !ro!ert$ is in"icative of the "ou#tful vali"it$ of its its sale. The i22e"iate !urchasers in the !resent case neither too; !ossession nor infor2e" the occu!ants 1the Cae"os4 of the for2er?s alle0e" ac5uisition ac5uisition of the !ro!ert$ !ro!ert$.. The !urchasers "i" not even "e2an" rent or as; the2 to vacate as a result of 9hich the Cae"os continue" to !a$ rent to Res!on"ent Bante0ui. Section 8+ of PD *>* !rovi"es that an$ #alance of the !rocee"s of the sale left after "e"uctin0 the a2ount of the ta:es an" !enalties "ue an" the costs of sale shall #e returne" returne" to the o9ner or his rre!resentativ e!resentative.H e.H A0ain contrar$ to the 2an"ate of the la9 the #alance of the !rocee"s fro2 the ta: sale 9as not even returne" to Res!on"ent Bante0ui or her re!resentative after the issuance of the =nal #ill of sale. The failure to rreturn eturn the !r !rocee"s ocee"s reinfor reinforce" ce" the a!!arent irre0ularit$ irre0ularit$ not onl$ in the con"uct of the ta: sale #ut also in its su#se5uent "is!osition.   GOOD 'AITJ

 

Petitioners 9er Petitioners 9ere e not innocent !urchaser !urchasers s for value. Des!ite their a9ar a9areness eness of "efects in their title the$ still faile" fa ile" to investi0ate or ta;e the necessar$ !recaution. Goo" faith is a 5uestion 5uestion of intention. It consists in the !ossessor?s #elief that the !erson fro2 9ho2 a thin0 has #een receive" is its o9ner an" can conve$ title. It is "eter "eter2ine" 2ine" #$ out9ar out9ar" " acts an" !rov !roven en con"uct Purchasers Pur chasers cannot close their e$es to facts that shoul" have !ut an$ reasona#le !erson u!on 0uar" an" then clai2 that the$ acte" in 0oo" faith un"er the #elief #elief that ther there e 9as no "efect in the title.H If !etitioners "o not investi0ate or ta;e !recaution !recaution "es!ite ;no9in0 certain facts the$ cannot #e consi"ere" in 0oo" faith.  The "efense of in"efeasi#ilit$ in"efeasi#ilit$ of a T Torrens orrens tit title le "oes not e:ten" to a transferee 9ho 9ho ta;es the titl title e "es!ite a notice of the Ka9 in it. it. 'ro2 a ven"or 9ho "oes not have an$ title to #e0in 9ith no ri0ht is !asse" to a transferee. In the !resent case the e:ercise e:ercise of the ri0ht of !ossession over the !ro!ert$ 9as atte2!te" #$ none of the !urchasers e:ce!t !etitioners. 'urther 'urther2ore 2ore nothin0 on the recor" sho9s that asi"e fro2 R Res!on"ent es!on"ent Bante0ui the !urchasers !ai" real !ro!ert$ ta:es as re5uire" of ever$ re0istere" !ro!ert$ o9ner. Curiousl$ the cit$ 0overn2ent allo9e" Res!on"ent Bante0ui to continue !a$in0 real !ro!ert$ ta:es even after the re"e2!tion !erio" an" the con=r2ation con=r2ati on of the =nal #ill of sale. Moreove Moreover r the recor recor"s "s 2ention no !a$2ent of real !ro!ert$ ta:es fro2 (/8* to (/8>.  The Re Re0ister 0ister of Dee"s issue" a reconstitut reconstitute" e" title in her na2e in 9hich the !ro!ert$ !ro !ert$ ha" #een re0 re0ister istere" e" as earl earl$ $ as (/) (/)/. /. 'o 'orr reasons ;no9 ;no9n n onl$ to the the al alle le0e 0e" " !u !urrch chas aser ers s no atte atte2! 2!tt 9a 9as s eve ven n 2a 2a"e "e to ha have ve the the ti titl tle e i22e"iatel$ cancelle". cancelle". It is #asic that re0istr re0istration ation "oes not vest title 9hich 9hich is a 2ere evi"ence of title to a !ro!ert$.   JERE'ORE the Petition is here#$ DENIED DENIED an" the assaile" Decision an" Resolution are AFFIRMED are AFFIRMED