G.R. No. 156318 - SPOUSES ANSELMO[1] AND PRISCILLA BULAONG, VS. VERONICA GONZALES.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, conformably with all the foregoing, judgment is hereby rendered: - Annulling and cancelling Transfer Certificates of Title Nos. T-62002 in the name of defendant Veronica Gonzales, and T-62003 in the name of defendant Veronica Gonzales and Pacifica E. Limpo married to Nicanor C. Sincioco; - Ordering the Ex-Officio Sheriff of Bulacan to execute a final deed of sale in favor of petitioner spouses Anselmo Bulaong and Pr[i]scilla Bulaong on the basis of the registered Certificate of Sale executed by said court officer on August 23, 1994, in favor of said spouses-mortgagee, without the owner-mortgagors exercising the right of redemption since then; - Ordering the Register of Deeds of Bulacan to issue new titles, in place of Transfer Certificate of Title Nos. T-62002 and T-62003, this time in the name of petitioner spouses Anselmo Bulaong and Pr[is]cilla Bulaong, as soon as the aforesaid final deed of sale in their favor is executed by the Ex-Officio Sheriff of Bulacan and only after said spouses shall have paid and/or reimbursed Veronica Gonzales' lien as judgment creditor in the amount of P275,000.00, plus interests at the legal rate computed from November 19, 1995, until fully paid and satisfied; - Order[ing] herein defendants Veronica R. Gonzales and the Register of Deeds of Bulacan upon notice of this judgment, not to effect any transfer, encumbrance or any disposition whatsoever of the parcels of land covered by Transfer Certificates of Title Nos. 62002 and T-62003, or any part thereof, right or interest therein, either by sale or any form of conveyance, lien or encumbrance; and - Ordering only defendant Veronica R. Gonzales to pay herein petitioners P50,000.00 as just and equitable attorney's fees, and the costs of suit, defendant Ramon C. Sampana as the Register of Deeds of Bulacan having merely performed his ministerial duty of following the court order of issuing titles to defendant Gonzales. No pronouncement as to moral and exemplary damages alleged in the petition but not even testified to by petitioners at the trial. [23] Both parties appealed to the CA, with the case docketed as CA-G.R. SP No. 55423. THE COURT OF APPEALS DECISION In its July 31, 2002 decision, the CA upheld the validity of the Notice of Levy on Execution, noting that it created a lien in favor of the judgment creditor over the property. According to the CA, when the Bulaongs received the owners' copies of TCT Nos. T-30395 and T-30396, the Notice of Levy was already annotated on the titles and, thus, should have put them on guard. As mortgagees of the lots, the Bulaongs had the option to redeem the properties within the redemption period provided by law. Since they failed to avail of this remedy, the consolidation of titles in Veronica's name was proper. THE PETITION The Bulaongs filed the present petition, raising the following issues: a) Whether Entry No. 7808 is valid; b) Whether Veronica has a superior right over the properties; and c) Assuming the notice of