IVQ LAND HOLDINGS, INC., VS. REUBEN BARBOSA G.R. No. 193156 September 26, 2018

FACTS

Respondent Reuben Barbosa claims that he is the owner of the parcel of land which is the subject property of the case that he bought from Therese Vargas. The property was at that time registered in her name. He took possession of the subject property seven days after he bought the same and he employed a caretaker to live therein. Before Therese Vargas, the owner of the property was Kawilihan Corporation, which company was owned by Jorge Vargas. Respondent stated that the subject property remained registered in the name of Therese Vargas as he entrusted her title to another person for custody, but the said person went to Canada. He paid real estate taxes on the subject property in the name of Kawilihan Corporation from 1978 until 2002. From 2003 to 2006, he paid real estate taxes thereon in the name of Therese Vargas. However, he learned that Therese Vargas's name was cancelled and replaced with that of IVQ in the tax declaration of the subject property.

Respondent filed a Petition for Cancellation and Quieting of Titles against Jorge Vargas III, Benito Montinola from IVQ Land Holdings, Inc. (IVQ) and the Register of Deeds of Quezon City. He prayed for the trial court to issue an order directing the Office of the Register of Deeds of Quezon City to cancel Jorge Vargas III's TCT and IVQ's TCT and adjudicating ownership of the subject property to him. The Regional Trial Court ruled granted Barbosa's petition and ordered the cancellation of IVQ's TCT. Petitioner filed an appeal to the Court of Appeals, but it affirmed the judgment of the trial court as it found that Barbosa was able to prove his ownership of the subject property.

ISSUE

Whether or not IVQ has a right on the subject property.

RULING No. In an action to quiet title, the plaintiffs or complainants must demonstrate a legal or an equitable title to, or an interest in, the subject real property. Likewise, they must show that the deed, claim, encumbrance or proceeding that purportedly casts a cloud on their title is in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy. This point is clear from Article 476 of the Civil Code, which reads: "Whenever there is cloud on title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet title."

"An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein."

Ownership is not the same as a certificate of title. Registering a piece of land under the Torrens System does not create or vest title, because registration is not a mode of acquiring ownership. A certificate of title is merely an evidence of ownership or title over the particular property described therein. Its issuance in favor of a particular person does not foreclose the possibility that the real property may be co-owned with persons not named in the certificate, or that it may be held in trust for another person by the registered owner.

The lower courts found that Barbosa was able to substantiate his title to the subject property, while IVQ failed to establish its claim of ownership thereto. All told, despite the exceptional opportunity that was granted to it, IVQ again failed to adduce sufficient and creditworthy evidence that would convince the Court to reconsider the previous denial of its petition.