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Rebusquillo VS Ca

The Supreme Court ruled that there was no perfected contract of sale between Avelina and her daughter and son-in-law regarding a parcel of land. While Avelina signed documents purporting to be an Affidavit of Self-Adjudication and Deed of Absolute Sale, it was apparent the parties did not intend to transfer ownership based on admissions and records. As the true intention was simply to facilitate titling, not transfer ownership, and the daughter and son-in-law never took possession of the property, the Deed of Absolute Sale was deemed an absolute simulation and void.

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55 views

Rebusquillo VS Ca

The Supreme Court ruled that there was no perfected contract of sale between Avelina and her daughter and son-in-law regarding a parcel of land. While Avelina signed documents purporting to be an Affidavit of Self-Adjudication and Deed of Absolute Sale, it was apparent the parties did not intend to transfer ownership based on admissions and records. As the true intention was simply to facilitate titling, not transfer ownership, and the daughter and son-in-law never took possession of the property, the Deed of Absolute Sale was deemed an absolute simulation and void.

Uploaded by

Paula Toroba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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REBUSQUILLO VS.

COURT OF APPEALS
G.R. No. 204029               June 4, 2014
FACTS:
Petitioner Avelina was one of the children of Eulalio who died intestate. On his death, Eulalio left
behind an untitled parcel of land in Legazpi City. In 2001, Avelina was supposedly made to sign
two documents by her daughter Emelinda and her son-in-law Domingo, respondents in this
case, on the pretext that the documents were needed to facilitate the titling of the lot. It was only
in 2003, so petitioners claim, that Avelina realized that what she signed was an Affidavit of Self-
Adjudication and a Deed of Absolute Sale in favor of respondents.

Petitioners filed a complaint for annulment and revocation of an Affidavit of Self-Adjudication


and a Deed of Absolute Sale. After trial, RTC held the annulment of the subject documents. CA
reversed RTC’s decision. CA held that the RTC erred in annulling the Affidavit of Self-
Adjudication simply on petitioners’ allegation of the existence of the heirs of Eulalio, considering
that issues on heirship must be made in administration or intestate proceedings, not in an
ordinary civil action. Further, the appellate court observed that the Deed of Absolute Sale
cannot be nullified as it is a notarized document that has in its favor the presumption of
regularity and is entitled to full faith and credit upon its face.

ISSUE:
Is there perfected contract of sale?

RULING:
The answer is No. The Court held that it is apparent from the admissions of respondents and
the records of this case that Avelina had no intention to transfer the ownership, of whatever
extent, over the property to respondents. Hence, the Deed of Absolute Sale is nothing more
than a simulated contract.

Heirs of Policronio Ureta Sr. v. Heirs of Liberato Ureta: In absolute simulation, there is a


colorable contract but it has no substance as the parties have no intention to be bound by it.
The main characteristic of an absolute simulation is that the apparent contract is not really
desired or intended to produce legal effect or in any way alter the juridical situation of the
parties. As a result, an absolutely simulated or fictitious contract is void, and the parties may
recover from each other what they may have given under the contract.

In the present case, the true intention of the parties in the execution of
the Deed of Absolute Sale is simply to “facilitate the titling of the subject property,” not to
transfer the ownership of the lot to them. Furthermore, respondents concede that petitioner
Salvador remains in possession of the property and that there is no indication that respondents
ever took possession of the subject property after its supposed purchase. Such failure to take
exclusive possession of the subject property or, in the alternative, to collect rentals from its
possessor, is contrary to the principle of ownership and is a clear badge of simulation that
renders the whole transaction void.

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