Acacia Investment Corporation v. Spouses Benjamin T. Go

Summary

This Supreme Court case involved a classic double sale dispute over a 50,000-square meter property in Biñan, Laguna. Spouses Miranda first entered a joint venture agreement with Acacia Investment Corporation in 1998, then sold the property to Spouses Go via Deed of Sale with Right of Repurchase in 1999. After the repurchase period expired, Acacia bought the property in 2001 and registered first, but this occurred during pendency of Spouses Go's civil case with notice of lis pendens already annotated. The RTC initially favored Acacia based on first registration, but the Court of Appeals and Supreme Court applied Article 1544 of the Civil Code, ruling that Spouses Go had superior rights because Acacia was not a purchaser in good faith. The Supreme Court declared the joint venture agreement ineffectual as a property transfer, validated Spouses Go's deed, and ordered cancellation of Acacia's title. The case demonstrates the importance of good faith in property transactions and the application of double sale rules under Philippine civil law.