Case Doctrines: Sps. Abrigo v de vera: Registration must be done in the proper registry in order to bind the land.

Since the property in dispute was already registered under the Torrens System, petitioners registration of sale under Act 3344 was not effective for purposes of Article 1544 of the Civil Code. *when a seller obtains free patent and transferred such title to second buyer. When he sold to first buyer, and it is unregistered. second buyers right prevails (registered under Torrens system). Dagupan v Macam : Where one of the 2 conflicting sales of a piece of land was executed before the land was registered, while the other was an execution sale in favor of the judgment creditor of the owner made after the same property had been registered and issued a title free from all liens and encumberances, Article 1544 should not apply, and what should determine the rights of the second buyer would be then Section 35, Rule 39 of the Revised Rules of Court on execution sale. Since the land was previously sold to the first buyer, the second buyer at the execution sale actually bought nothing since the judgment debtor no longer had rights to the property previously sold. *contract of sale, default si buyer. Execution sale, sold to X. execution sale is an involuntary sale. First buyers right prevails. (page 264 villanueva) Carbonell v CA: Carbonell was in good faith because the title of Poncio was still in his own name and that Carbonell could not have been aware of any sale involving the property. Carbonells good faith did not cease after she learned of the subsequent sale between Poncio and Infante. The recording of the adverse claim was done to prtotect Carbonells rights and in good faith. Consequently, the subsequent registration by Infante of the sale should be deemed to have been done in bad faith. Her status as a buyer in good faith ceased after the prior sale was made known to her. *when the first buyer in good faith registers upon knowledge of the second sale, not in bad faith. If second buyer registers upon knowledge of first sale, bad faith and it is equivalent to title for the first buyer. Buyer 1 always has priority rights over subsequent buyers of the same property. Knowledge gained by Buyer 1 does not bar her from availing of her rights among them to register first her purchase as against the second buyer. Buyer 1 is the preferred buyer. Knowledge gained by Buyer 2 of the first sale defeats his rights even if he is first to register the second sale, since such knowledge taints his prior registration with bad faith. Knowledge of first sale is equivalent to registartion Good faith requirement is addressed to Buyer 2 from acquisition to registration.

Naawan Community Rural Bank v CA: It is a well-known rule in this jurisdiction that persons dealing with registered land have the legal right to rely on the fact of the Torrens certificate of Title and to dispense with the need to inquire further, except when the party concerned has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make such inquiry. The legal priority of registration of sale under PD 1529 cannot be overcome by an earlier registration under Act No. 3344 w/c is not effective form of registration under Art. 1544 of the Civil Code. Important points: 1.Take note that in execution through public instrument, the vendor must have control and possession over the thing so that ownership can be transferred. 2. contract to sell There being no previous sale, a 3rd person buying such property despite the fulfilment of suspensive condition cannot be deemed a buyer in bad faith, and the prospective first buyer cannot seek the relief of reconveyance. needs a new contract of absolute sale, therefore 1544 cannot apply because of the requisite two valid sales. The right of the buyer of the other contract entered into (contract of sale) will always prevail.

What if the first contract entered into is a conditional sale? Carbonell v. CA: First buyer obtained an anotacion preventive = adverse claim. Annotation of an adverse claim by the first buyer was deemed to be equivalent to registration under Art. 1544. the buyer under a COS albeit conditional is always preferred, as being effectively first in time. 3. Multiple sales in unregistered land- 1544 does not apply. Take note of Sec 51 and 113 of PD 1529. Sec 51: The act of registration shall be the operative act to covey or affect the land in so far as third persons are concerned. Lichauco v. Berenguer/ Hanopol v. Pilapil: buyer w/ a better right more than just having in his favor an earlier deed of sale, but rather a mode by which ownership is directly affected. Carumba v. CA: The purchaser of unregistered land at a sheriffs execution sale only steps into the shoes of the judgment debtor, and merely acquire the latters interest in the property sold as of the time the property was levied upon. Sec.113: covers land not registered under the Torrens system; Prius tempore, potior jure first in time, priority in right= w/o prejudice to a 3rd party with a better right 4. Article 712 on donation as mode of acquiring ownership. As long as the formalities and all requirements are satisfied, ownership is transferred to done upon PERFECTION of the donation. So if for example the first contract is a valid donation and the second contract is absolute sale, the right of donee prevails because ownership is already transferred. On the other hand, if the first contract is absolute sale which is not registered and the second is a donation that is registered in the register of deeds, contract of absolute sale prevails because when donor donated the property to done, he does not have ownership over the thing already. Donation only transfers the title of the donor to donee. 5. An heir could be compelled to pay for the decedents debt from a contract of sale. Article 1311 relativity of contracts. 6. It is not necessary to declare the first contract of sale null and void for purposes of upholding the right of second buyer because you determine the validity of the contract upon its perfection, not upon consummation. Requisites: 1. 2 valid and demandable sales

Registration and tradition are matters that go into consummation and cannot legally affect the status of a sale valid at perfection. The lack of ownership on the seller does not affect the validity of the contract of sale, but merely constitutes as basis for rescission. 2. Same subject matter 3. Same seller contemplates a case of double or multiple sales by a single vendor. It is necessary that conveyance must have been made by a party who has an existing right in the thing and power to dispose it. 4. Conflicting Interest