Ernesto R. Serrano v. Spouses Luzviminda & Arnold Guzman

Summary

This civil property dispute involved Ernesto Serrano's claim that his sister Luzviminda fraudulently obtained a portion of his land through a forged Deed of Reconveyance. Ernesto purchased Lot No. 1 in 1983 and claimed he only signed blank papers for subdivision purposes, not to transfer ownership. Luzviminda subdivided her portion and sold two lots to third parties. The RTC sided with Ernesto, finding fraud and ordering full reconveyance. The CA reversed, upholding the documents' validity and protecting the buyers. The Supreme Court partially granted Ernesto's petition, finding that while the document was executed, it created only a resulting trust for bond purposes, not ownership transfer. However, the Court protected the innocent buyers who relied on clean titles, ordering reconveyance only of the portion that remained with Luzviminda. The decision balances property rights protection against good faith purchaser interests.