G.R. NO. 167320 - HEIRS OF SALVADOR HERMOSILLA, NAMELY: ADELAIDA H. DOLLETON, RUBEN HERMOSILLA, LOLITA H. DE LA VEGA, ERLINDA H. INOVIO, CELIA H. VIVIT, ZENAIDA H. ACHOY, PRECILLA H. LIMPIAHOY, AND EDGARDO HERMOSILLA, VS. SPOUSES JAIME REMOQUILLO AND LUZ REMOQUILLO.

Ruling

accordingly dismissed their complaint. Subject of the controversy is a 65-square meter portion of a lot located in Poblacion, San Pedro, Laguna. On August 31, 1931, the Republic of the Philippines acquired through purchase the San Pedro Tunasan Homesite. Apolinario Hermosilla (Apolinario), who was occupying a lot in San Pedro Tunasan Homesite until his death in 1964, caused the subdivision of the lot into two, Lot 12 with an area of 341 square meters, and Lot 19 with an area of 341 square meters of which the 65 square meters subject of this controversy form part . On April 30, 1962, Apolinario executed a Deed of Assignment transferring possession of Lot 19 in favor of his grandson, herein respondent Jaime Remoquillo (Jaime). As the Land Tenure Administration (LTA) later found that Lot 19 was still available for disposition to qualified applicants, Jaime, being its actual occupant, applied for its acquisition before the LTA on May 10, 1963. On July 8, 1963, Apolinario conveyed Lot 12 to his son Salvador Hermosilla (Salvador), Jaimes uncle. Salvador later filed an application to purchase Lot 12 which was awarded to him by the defunct Land Authority on December 16, 1971. On February 10, 1972 , Jaime and his uncle Salvador forged a Kasunduan ng Paglipat Ng Karapatan sa Isang Lagay na Lupang Solar (Kasunduan) whereby Jaime transferred ownership of the 65 square meters (the questioned property) in favor of Salvador . After Apolinario died, his daughter Angela Hermosilla filed a protest before the Land Authority, which became the National Housing Authority (NHA), [5] contending that as an heir of the deceased, she is also entitled to Lots 12 and 19. By Resolution of June 10, 1981, the NHA dismissed the protest. The NHA later awarded on March 16, 1986 Lot 19 to Jaime for which he and his wife were issued a title, Transfer Certificate of Title No. T-156296, on September 15, 1987 . [6] On May 25, 1992, petitioners filed an action for Annulment of Title on the ground of fraud with damages against Jaime and his spouse, together with the Register of Deeds, before the Regional Trial Court (RTC) of Biñan, Laguna, alleging that by virtue of the Kasunduan executed in 1972, Jaime had conveyed to his uncle Salvador the questioned propertypart of Lot 19 covered by TCT No. T-156296 which was issued in 1987. By Decision [7] of May 11, 1999, the RTC of Biñan, Laguna, Branch 25, found the Kasunduan a perfected contract of sale, there being a meeting of the minds upon an identified object and upon a specific price, and that ownership over the questioned property had already been transferred and delivered to Salvador. On the alleged failure of consideration of the Kasunduan, the trial court held that the same did not render the contract void, but merely allowed an action for specific performance. The dispositive portion of the trial courts Decision reads: WHEREFORE, judgment is hereby rendered declaring plaintiffs as co-owners of the 65 square meters of the 341 squar