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" 'lorencia 'lorencia B. Cae"o 9ho resi"e" in sai" !ro!ert$ until (//*. In (/-+ Bante5ui left for the US returne" returne" to the Phil in (/88 to e:ecute a s!ecial !o9er of attorne$ 2a;in0 Gua"alu!e B. Bautista her re!resentative #efore 0oin0 #ac; to the US.  Ta:es  Ta:es 9ere 9ere !ai" until (/-- #ut the real real !ro!ert$ ta:es ta:es fro2 fro2 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=cate Certi=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$n 1"au0hter of the Cae"os4 an" 3esse Pere$ra Pere$ra for P>++++. Their TCT 9as cancelle" an" a ne9 TCT 9as issue" on 3an. (+(/8/ to Pere$ra Pere$ra 9ho also "i" not ta;e !ossession of the !ro!ert$ in 5uestion #ut instea" 2ort0a0e" the !ro!ert$ to Rur Rural al 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 (//<. Bante0ui on her !art a!!lie" for a"2inistrative reconstitution reconstitution of her title as it 9as lost in a =re. Reconstitute" Reconstitute" Title no. ,8*)8 9as su#se5uentl$ issue" in her na2e. She !ai" the realt$ realt$ ta:es on the sai" !ro!ert$ !ro!ert$ for the $ears $ears (/8to (/8/ #ut the cit$ treasurer "i" not acce!t the !a$2ent for the $ear (//+.

On Ma$ <(//+ the sa2e !ro!ert$ 9as sol" #$ the Pere$ras to the s!ouses Ra2on an" Rosita Tan for P<)++++ 9ith the latter !a$in0 the a2ount of P<+++++ to the Rural Ban; of I2us Cavite for the release of the 2ort0a0e !er a0ree2ent #$ the !arties. The Tans li;e9ise !ai" the over"ue ta:es an" other e:!enses incurre" #$ the Pere$ras !ertainin0 to sai" 2ort0a0e. The  Tan?s "i" not i22e"iatel$ ta;e !ossession of the !ro!ert$ nor infor2 the occu!ants 1Cae"os 4. But in the latter !art of (//+ the Tan?s throu0h their la9$er infor2e" the Cae"os of their o9nershi! an" "e2an"e" that the$ vacate the !ro!ert$.  The$ later =le" an action for e@ect2ent a0ainst the Cae"os #efore the MTC of  6ue7on Cit$ on 3an. (8(//(. On Oct. <((//( the court rule" in favor of Tans. The Cae"os inter!ose" an a!!eal #ut faile" to a!!ear "urin0 the hearin0 of the case an" 9as "eclare" in "efault an" later e@ecte" fro2 the !ro!ert$ on 'e#. ,+(//* 9hen the house 9as "e2olishe". On 'e# (((//, Bante0ui throu0h her sister Gua"alu!e Bautista =le" a co2!laint for the annul2ent of sale  5uietin0 of title in@unction an" "a2a0es 9ith the RTC of 6ue7on . s!ouses Cae"o en@oine" the co2!laint.  The co2!laint 9as later a2en"e" on Ma$ (* (//, i2!lea"in0 the s!ouses Ca!istrano an" the Cit$ Treasurer of 6ue7on Cit$ as co"efen"ants an" "eletin0 5uietin0 of title? fro2 the !ra$er an" insertin0 reconve$ance.? RTC decided in favor of respondents !etitioners a!!eale" to the CA. CA decided in favor of respondent. Declarin0 that !etitioners 9ere not !urchasers in 0oo" faith an" ha" no #etter ri0ht to the su#@ect !ro!ert$ than that of an$ of their !re"ecessorininterest that the auction 9as tainte" 9ith irre0ularities such as no notice of "elin5uenc$ an" of sale 9ere sent to the o9ner. ISSUES: ON the Auction sale 9as vali". RULING: No. the auction sale 9as not vali". First  no notice of "elin5uenc$ or of sale 9as 0iven to either Gor0onia Bante0ui the "elin5uent o9ner& or to her re!resentative as !rovi"e" un"er Section >) an" -< of PD *>* the Real Pro!ert$ Ta: Co"e  The auction sale of real !ro!ert$ for the collection of "elin5uent ta:es is in  personam not in rem. Althou0h sucient in !rocee"in0s in rem li;e lan" re0istration 2ere notice #$ !u#lication 9ill not satisf$ the re5uire2ents of

!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 It is still incu2#ent u!on the cit$ treasurer to sen" the notice "irectl$ to the ta:!a$er  the re0istere" o9ner of the !ro!ert$  in or"er to !rotect the latter?s interests. Althou0h !rece"e" #$ !ro!er a"vertise2ent an" !u#lication an auction sale is voi" a#sent an actual notice to a "elin5uent ta:!a$er.  The sale of lan" for ta: "elin5uenc$ is in "ero0ation of !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$er. Those notices are 2an"ator$ an" failure to issue the2 invali"ates a sale. Because it 9as clearl$ in contravention of the re5uire2ents un"er the la9 an" @uris!ru"ence  The su#se5uent sale of the real !ro!ert$ "i" not 2a;e its !urchaser the ne9 o9ner. hile it is true that Transfer Certi=cates of Title have alrea"$ #een issue" in the na2es of the su#se5uent !urchasers the$ shoul" nonetheless #e invali"ate". Consi"erin0 the failure to a#i"e #$ the 2an"ator$ re5uire2ents of a !rocee"in0 in personam no #etter title than that of the ori0inal o9ner can #e assu2e" #$ the transferees. Quod nullum est, nullum producit efectum. That 9hich is a nullit$ !ro"uces no eect. Moreover failure to assert o9nershi! over a !ro!ert$ is in"icative of the "ou#tful vali"it$ of 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 of the !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" to the o9ner or his re!resentative.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 return the !rocee"s reinforce" the a!!arent irre0ularit$ not onl$ in the con"uct of the ta: sale #ut also in its su#se5uent "is!osition. GOOD 'AITJ

Petitioners 9ere not innocent !urchasers for value. Des!ite their a9areness of "efects in their title the$ still faile" to investi0ate or ta;e the necessar$ !recaution. Goo" faith is a 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 "eter2ine" #$ out9ar" acts an" !roven con"uct Purchasers 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 that there 9as no "efect in the title.H If !etitioners "o not investi0ate or ta;e !recaution "es!ite ;no9in0 certain facts the$ cannot #e consi"ere" in 0oo" faith.  The "efense of in"efeasi#ilit$ of a Torrens title "oes not e:ten" to a transferee 9ho ta;es the title "es!ite a notice of the Ka9 in 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 of the ri0ht of !ossession over the !ro!ert$ 9as atte2!te" #$ none of the !urchasers e:ce!t !etitioners. 'urther2ore nothin0 on the recor" sho9s that asi"e fro2 Res!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 of the =nal #ill of sale. Moreover the recor"s 2ention no !a$2ent of real !ro!ert$ ta:es fro2 (/8* to (/8>.  The Re0ister of Dee"s issue" a reconstitute" title in her na2e in 9hich the !ro!ert$ ha" #een re0istere" as earl$ as (/)/. 'or reasons ;no9n onl$ to the alle0e" !urchasers no atte2!t 9as even 2a"e to have the title i22e"iatel$ cancelle". It is #asic that re0istration "oes not vest title 9hich is a 2ere evi"ence of title to a !ro!ert$. JERE'ORE the Petition is here#$ DENIED an" the assaile" Decision an" Resolution are AFFIRMED