G.R. NO. 161298 - SPOUSES ANTHONY AND PERCITA OCO, VS. VICTOR LIMBARING.

Ruling

WHEREFORE, the order dated October 2, 2000 of the Regional Trial Court, Branch 15, Ozami[s] City in Civil Case No. OZC 99-14 is hereby REVERSED . The agreement entered upon by plaintiff-appellant and defendant-appellee Percita L. Oco is hereby RESCINDED . After returning the agreed purchase amount of P60,000.00 to defendants-appellees, the Register of Deeds of Ozami[s] City shall issue the new Transfer Certificates of Title in the name of plaintiff-appellant thereby canceling the TCT Nos. T-22073 and T-22072." [4] The Facts The pertinent facts are not disputed. Sometime in 1996, Sabas Limbaring subdivided his Lot 2325-D, covered by Transfer Certificate of Title (TCT) No. 5268, into two lots denominated as Lot Nos. 2325-D-1 and 2325-D-2. [5] He then executed in favor of Jennifer Limbaring a Deed of Sale for Lot 2325-D-2 for P60,000; and, in favor of Sarah Jane Limbaring, another Deed for Lot 2325-D-1 for P14,440. Accordingly, TCT No. 5268 was cancelled and TCT Nos. T-21921 and T-21920 were issued in the names of Jennifer and Sarah Jane, respectively. [6] Sensing some irregularities in the transaction, Percita Oco, the daughter of Sabas Limbaring, left Puerto Princesa City and went to Ozamis City. [7] She then filed a case of perjury and falsification of documents against respondent, her uncle who was the father of Jennifer and Sarah Jane. During the pre-litigation conference called by City Prosecutor Luzminda Uy on July 1, 1996, the parties agreed that the two parcels of land should be reconveyed to Percita, who was to pay respondent all the expenses that had been and would be incurred to transfer the titles to her name. [8] Respondent demanded P30,000 for the estimated expenses for documentation, capital gains, and documentary stamp taxes; registration fees for the Register of Deeds; and other incidental expenses for clearances from the Department of Agrarian Reform (DAR). [9] Percita succeeded in lowering the amount to P25,000, for which she executed an undertaking worded as follows: "I, Percita Oco, of legal age, and residing at Puerto Princesa, do hereby undertake to give the full amount of Twenty Five Thousand (P25,000.00) Pesos to my uncle Victor Limbaring after document No. 230, series of 1996; Transfer Certificate of Title No. T-21920 and Transfer Certificate of Title No. T-21921 shall have been cancelled and revoked. "Ozamis City, Philippines, July 1, 1996." [10] Pursuant to their agreement, respondent facilitated the transfer of the titles to her from the names of his daughters. After the transfer had been effected on July 12, 1996, Percita left for Puerta Princesa on July 17, 1996, without paying the P25,000. Several demands were made, but she refused to pay. On April 6, 1999, respondent filed against Spouses Anthony and Percita Oco a Complaint for the rescission of the sales contracts, with recovery of possession and ownership of the two parcels of land. [11] Among others, he claimed 1) that he was the actual buyer of the lots, but the