Spouses Lucia A. Orozco v. Florante G. Lozano

Summary

This case involves a property dispute between Spouses Orozco and Lozano's heirs over Lot No. 3780 in Agusan del Sur. Spouses Orozco sold half of the lot to Lozano in 1980 for P5,000.00, but later claimed encroachment when Lozano built a boarding house. The Supreme Court ruled that the original sale was a lump sum transaction under Civil Code Article 1542, transferring ownership of half the actual lot area (325.5 sq.m.) regardless of stated measurements. The Court also found a valid subsequent sale of an additional 62 square meters evidenced by an acknowledgment receipt, rejecting forgery claims based on expert handwriting analysis. The decision established that in sales of real estate for lump sum with stated boundaries, the actual area within boundaries prevails over stated measurements, and boundaries control over area calculations. Lozano's heirs were confirmed as rightful owners of 387 square meters total, with obligation to pay P300.00 remaining balance plus interest.