- Petitioner
- Eufemia Balatico Vda. de Agatep
- Respondent
- Roberta L. Rodriguez
- Citation
- G.R. No. 170540
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Peralta, J.
- Decided
- October 28, 2009
Summary
This case involves a property dispute over a 1,377 square meter parcel of land in Cagayan. The original owner Lim mortgaged the property to PNB in 1975, then sold it to petitioner's husband Agatep in 1976 without registering the sale or delivering the title. When Lim defaulted on her loan, PNB foreclosed and eventually sold the property to Rodriguez in 1993. Petitioner filed for reconveyance claiming rightful ownership through her husband's purchase. The Supreme Court denied the petition, ruling that PNB was an innocent mortgagee whose rights were superior to the unregistered sale to Agatep. The Court emphasized that mortgages are inseparable from property and follow it regardless of ownership changes, and that registered mortgages provide constructive notice to all persons. The decision upholds the principle that registered rights prevail over unregistered claims and reinforces the indefeasibility of certificates of title in protecting good faith mortgagees and purchasers.