Private respondent Poncio was the owner of a parcel of land in batanes, mortgaged in favor of republic savings bank. Petitioner Carbonell and respondent respondent Infante both oered to buy the property from Poncio. Poncio, in his failure to pay the mortgaged, agreed for the petitioner to buy the land excluding his house on the condition that from the purchase price would come from the money to be paid to the bank. Subseuently, Poncio had told Carbonell that the former can no longer pursue with the sale for he had given the land to Infante. !he said lot was fenced by Infante. Informed that the sale in favor of respondent Infante had not yet been registered, "tty. #arcia #arcia $carbone $carbonell%s ll%s counsel& counsel& prepar prepared ed an adverse adverse claim claim for petitione petitioner, r, and registered the same on 'ebruary (, )*++. !he deed of sale in favor of Infante was registered registered only on 'ebruary ), )*++. "s a conseuence thereof, a !ransfer Certi-cate of !itle was issued to her but with the annotation of the adverse claim of petitioner Carbonell. Petitioner -led a complaint, praying that the sale between Poncio and Infante be declared null and void. ISSUE:
ho has the superior right over the property/ HELD:
!he SC declared declared the -rst buyer buyer Carbonell to have the superior superior right over over the property, relying on article )+00, to wit1 2If the same thing should have been sold to dierent vendees, the ownership shall be transferred to the person who may have -rst taken possession thereof in good faith, if it should movable property. Should it be immovable property, the ownership shall belong to the person acuiring it who in good faith -rst recorded it in the 3egistry of Property. Property. xxx4 !he second paragraph paragraph of said article directs directs that ownership of of immovable property property should be recogni5ed in favor of one 2who in good faith -rst recorded4 his right. #ood fait must characteri5e the act of anterior registration. registration. hen C"rbonell bought the lot from poncio, she was the only buyer thereof and the title of poncio was still in his name solely encumbered by a bank mortgage duly annotated thereon. Carbonell was not aware 6 and she could not have been aware 6 of any sale to Infante as there there was no such sale to Infante Infante then. 7nder the circumstances, the recording of Carbonell%s adverse claim should be deemed to have been done in good faith and should emphasi5e Infante%s bad faith when the
latter registered her deed of sale only 0 days after Catbonell%s registration of adverse claim.