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[G.R. No. 146372.February 14, 2001]

ANG vs. UNION BANK OF THE PHILS.

THIRD DIVISION

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated FEB 14, 2001.

G.R. No. 146372(Alfonso G. Ang vs. Union Bank of the Philippines.)

Before us is a petition for review assailing the decision of the Court of Appeals dated May 30, 2000 which reversed the decision of Branch 116, Regional Trial Court of Pasay City, as well as its resolution dated December 7, 2000 denying petitioner's motion for reconsideration.

The instant case emanated from a complaint filed by petitioner against respondent bank wherein petitioner sought recovery of actual, moral, exemplary, and nominal damages from respondent bank for allegedly selling a piece of land through fraud.

Sometime in 1980, Bancorn Development Corporation (Bancom), acquired real property situated in Bagac, Bataan through foreclosure proceedings (which later resulted in litigation) and sold the same to petitioner. In 1985, however, the sale was cancelled with the consent of respondent bank, the assignee of Bancom, due to a tenancy problem. Nevertheless, petitioner was granted by respondent an option to repurchase the property. Thus, on Februaiy 6, 1992, petitioner exercised his right when he entered into an agreement with Bancom whereby the petitioner offered to repurchase the land and Bancom accepted the same for and in consideration of the sum of P277,455.00, subject to the following terms and conditions:

Section 1.Acquired thru foreclosure �� proceedings - The Buyer is fully aware that the Parcel of Land was acquired by the Seller through foreclosure proceedings and has agreed to repurchase the Parcel of Land in its present state and condition. The Seller does not make any representation or warranty with respect to the parcel of land. The Buyer has been advised and hereby acknowledges and confirms that he has full knowledge that the parcel of land is the subject matter of the case entitled "Bibiano Vina vs. Bancom Development corporation," Civil Case No. CA-G.R. CV 14603, and notwithstanding the pending case, or any other pending action, litigation or controversy for that matter, unconditionally agrees to repurchase the parcel of land regardless of the outcome of the said case, or any controversy or pending action concerning the parcel of land whether or not the Buyer has full knowledge of the same at the time of repurchase of the parcel of land. The Buyer hereby holds the Seller free and harmless from any and all liability or causes of action that may arise or may, in any way, be connected with the sale of the parcel of land by the Seller to the Buyer.

(pp.26-27, Rollo.)

On February 12, 1994, petitioner entered into a contract to sell with Roqueza Development Corporation involving the subject property for P1,500,000.00. But the sale did not materialize because upon verification of the title by said corporation, it was found out that the title had long been cancelled and that a new one has already been issued to the original owner of the subject property. Consequently, petitioner was threatened with criminal prosecution aside from the demand for the return of the P1,000,000.00 downpayment. This prompted petitioner to file a case for damages against the respondent.

The trial court rendered a decision in favor of petitioner, but dissatisfied with the award of damages, petitioner filed an appeal with the Court of Appeals which, reversing the trial court's decision, stated that petitioner is not entitled to any award of damages. Hence, the instant petition which we find bereft of merit.

A careful consideration of the petition fails to show why the action of the Court of Appeals which had passed upon the same issues now presented should be reversed.

The general rule that one who is dealing with registered land has a right to rely on the Torrens Certificate of Title without the need of inquiring further cannot apply when the party has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make such inquiry or when the purchaser has knowledge of a defect or lack of title in his vendor or of sufficient facts to induce a reasonably prudent man to inquire into the status of the title of the property in litigation (Voluntad v. Dizon, 313 SCRA 209 [1999]). The presence of anything which excites or arouses suspicion should then prompt the vendee to look beyond the certificate and to investigate the title of the vendor appearing on the face of said certificate. One who falls within the exception can neither be denominated an innocent purchaser for value nor a purchaser in good faith; and hence does not merit the protection of the law (Sandoval v. Court of Appeals, 260 SCRA 283 [1996]).

The appellate court was correct in holding that petitioner had complete knowledge of the history or status of the subject land in view of the fact that said land was acquired by Bancom through foreclosure proceedings. Too, as early as 1980, petitioner had already been dealing with the subject property pursuant to an aborted sale with Bancom.

As the record reveals, the agreement to repurchase the property from respondent contained a provision manifestly explaining the existence of circumstances which would sufficiently warn petitioner and compel him to investigate the title of the property before he exercised his right to repurchase the same. Instead, six days subsequent to the execution of the agreement to repurchase, he entered into a contract to sell with Roqueza Development Corporation, evidently exhibiting his failure to inquire further. Thus, he is bound by the results of his own imprudence and cannot claim damages.

WHEREFORE, petition is hereby denied due course.

SO ORDERED.

Very truly yours,

(Sgd.) JULIETA Y. CARREON

Clerk of Court


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