Spouses Regalado Santiago v. The Hon. Court of Appeals; the Hon. Camilo C. Montesa, Jr.

Summary

Quirico Arcega challenged the validity of a deed of absolute sale executed by his deceased sister Paula Arcega in favor of petitioners over a 927 sq.m. property in Bulacan. The Supreme Court affirmed lower courts' findings that the sale was simulated and fictitious, designed merely to accommodate an SSS loan application. Key evidence included Paula Arcega's continued occupation of the master bedroom until her death in 1985, the notary public's testimony that no money was involved, and the unconscionably low consideration of P20,000. The Court applied Civil Code provisions on simulated contracts, ruling that actions for declaration of inexistence of contracts do not prescribe. The decision protects property rights against fraudulent schemes while emphasizing that the Torrens system cannot shield commission of fraud.