Spouses Edesito v. Spouses Gerardo

Summary

The Ragasa spouses purchased property through installment contract in 1989, took possession, and fully paid in 1992 receiving a deed of sale. However, title was never transferred due to the seller's corporate dissolution. In 1995, unknown to them, the property was sold at execution sale to the Roa spouses for P511,000.00. When the Ragasas discovered this in 1999 and filed suit for annulment of execution sale, the trial court dismissed for prescription under Article 1146. The Supreme Court reversed, holding this was actually a quieting of title action under Article 476, which is imprescriptible when the plaintiff remains in continuous possession as owner. The case was remanded for further proceedings, establishing that possessory owners can challenge adverse claims without time limitation.