Hospicio D. Rosaroso v. Lucila Laborte Soria

Summary

This case involved a double sale of real properties in Daanbantayan, Cebu. Luis Rosaroso first sold several lots to his children from his first marriage in 1991, then later sold the same properties to Meridian Realty Corporation in 1994 through special powers of attorney given to his granddaughter. The Supreme Court ultimately ruled in favor of the first buyers, applying the disputable presumption of sufficient consideration and finding that the second buyer (Meridian) was not in good faith because it failed to investigate the rights of persons in actual possession of the properties. The Court emphasized that buyers must exercise due diligence when purchasing property occupied by persons other than the seller, and failure to do so constitutes bad faith that negates the protection accorded to innocent purchasers under the law on double sales.