Rev. Fr. Dante Martinez v. Honorable Court of Appeals

Summary

This case involves a double sale of real property where Rev. Fr. Martinez orally purchased a lot in 1981, made improvements, and paid in full by 1983, but the sellers (De la Paz siblings) also sold the same lot to the Veneracion spouses who registered their title first. The lower courts initially favored the Veneracions as first registrants, but the Supreme Court reversed, finding they were not buyers in good faith since they knew of Martinez's prior possession and construction. The Court determined the first transaction with the Veneracions was actually an equitable mortgage, not a sale, making the subsequent absolute sale to them void. The decision established important precedents on good faith in double sales and equitable mortgage presumptions, ultimately awarding ownership to Martinez as the first legitimate buyer.