Edilberto C. Abarquez v. Hon. Court of Appeals

Summary

This Supreme Court case involves a double sale of immovable property where vendor Lita Ebarle sold the same 476 sq.m. lot to two different buyers - first to Israel spouses in 1972 (with possession and construction of houses) and later to Abarquez spouses in 1975 (who registered first and obtained title). The RTC initially favored the Abarquez spouses as registered owners, but the Court of Appeals reversed, finding them in bad faith. The Supreme Court affirmed the CA decision, applying Article 1544 of the Civil Code. The Court ruled that despite prior registration, the Abarquez spouses acted in bad faith having actual knowledge of the prior sale through site inspection and engineer's survey, thus their registration conferred no preferential right. The Israel spouses, being first possessors in good faith, were declared rightful owners.