Aggabao v. Parulan (2010)

Spouses Rex and Concepcion AGGABAO v. Dionisio and Elena PARULAN

GR No. 165803

Sept. 1, 2010

Pontente: Justie Bersamin

FACTS

Two parcels of land and their improvements located in Paranaque are registered under Ma. Elena and Dionisio (respondent spouses), who have been estranged from each other. In 1991, Marta Atanacio (real estate broker), offered the property to spouses Concepcion (petitioners). They met with Ma. Elena who showed pertinent documents which included one executed by Dionisio authoritizing Ma. Elana to sell the property. The petitioners then went to the Register of Deeds in Paranaque, where they discovered that the lot had been encumbered to Banco Filipino, but was cancelled due to the full payment of the obligation. Similarly, the petitioners found that the other property had an existing mortgage in favor of the Los Banos Rural Bank and is found to be conjugal property. The petitioners delivered the final amount to Elena who executed a deed of absolute sale in their favor but did not turn over the owner’s duplicate copy. The respondents commenced an action for declaration of the nullity of the deed of sale executed by Ma. Elena and the cancellation of the title issued to the petitioners. The Regional Trial Court (Makati) annulled the deed of absolute sale executed in favor of the petitioners covering two parcels of registered land for want of the written consent of Dionisio Parulan. The Court of Appeals affirmed the decision of the trial court.

ISSUE:

- Whether or not Article 124 of the Family Code should apply to the sale of the conjugal property executed without the consent of Dioniso.

HOLDING:

- YES. In this case, Article 124 of the Family Code applies to the sale of the properties.

- Article 124 of the Family Code categorically requires the consent of both spouses before the conjugal property may be disposed of.

- The buyers of conjugal property must observe two kinds of requisite diligence: (1) diligence in verifying the validify of the title covering the property; (2) diligence inquiring into the authority of the transacting spouse to sell conjugal property in behalf of the other spouse.

JUDGMENT:

- The petition is DENIED.