Voiding a Sale: Understanding Consent and Good Faith in Property Transactions

A notarized deed of sale is strong evidence of a genuine transfer, but it is not unassailable. In Dela Cruz v. Dela Cruz (G.R. No. 146222, January 15, 2004), the Supreme Court settled a family dispute over a Bulacan lot that had been sold, mortgaged three times, and then sold again — and in doing so explained what a party must prove to void a sale for lack of consent, and when a buyer may safely rely on a Torrens title.

A talipapa, a mother, and a son

Paciencia dela Cruz owned a parcel of land in Lolomboy, Bocaue, Bulacan, covered by Transfer Certificate of Title No. T-14.585 (M). A flea market or talipapa with about fifty vendors stood on it, and Paciencia collected their daily stall rentals. She had six children.

In September 1980, a Deed of Sale was executed conveying the property to her son Fortunato for P21,000. A new title was issued in his name. Fortunato declared the lot for taxation purposes, paid realty taxes, and between 1985 and 1988 mortgaged the property three times to a certain Erlinda de Guzman. When he could not pay those loans, he offered the land for sale.

In January 1989, Fortunato executed a Kasulatan ng Bilihang Patuluyan in favor of Clark and Divina Gutierrez. The document stated a price of P58,000, but a receipt showed the actual consideration was P600,000. The sale was registered, the title was cancelled, and a new certificate, TCT No. T-101011 (M), was