Dawson vs.

Register of Deeds of Quezon City

GR No. 120600
April 14, 2004

FACTS:

Louis P. Dawson offered to buy on installment from the Siska Development
Corporation a parcel of land in Quezon City on May 2, 1967. The land consisted of 638
square meters and a price of P27,632.00.

Louis P. Dawson died without a will and Upon his death, the petitioners assumed
the rights and obligations of in the said contract to sell. They are the ones to pay in full
the selling price of the lot from their own funds. The payment was completed in 1978.

On March 16, 1978, Siska Development Corporation executed a deed of absolute
sale in favor of Dawson instead of the petitioners to whom the rights and obligations of
Dawson were transferred. Because of this error, there was a petition for the
cancellation and correction of TCT No. RT - 58706 (248057) in the name of Louis P.
Dawson and the issuance of a new title in the names of herein petitioners, to wit: Dr.
Ernesto C. Dawson (1/5), Louis P. Dawson, Jr. (1/5), Benjamin C. Dawson (1/5),
Josephine Dawson Soliven (1/5), Ralph D. Cudilla (1/15), Eliza C. Isip (1/15) and Larry
D. Cudilla (1/15).

The petition is not controversial since there was unanimity among all the
interested parties who are all petitioners and the only surviving heirs of the deceased
Louis P. Dawson. On December 1, 1993, the respondent court issued an Order allowing
the petitioners to present ex-parte their evidence before the Branch Clerk of Court. On
December 20, 1993, the respondent court rendered its first assailed Resolution, the
dispositive portion of which was earlier quoted. The petitioner then filed a motion for
reconsideration from the Resolution of the respondent court and that motion was
denied by the respondent court in its second assailed Order on March 21, 1994.

ISSUE:

The issue is whether or not that the Court of Appeals erred in affirming that
Section 108 of P.D. 1529 does not apply in this case.

DECISION:

In a contract to sell, ownership is transferred only upon full payment. Louis P. Dawson
never owned the lot since the petitioners took the obligation to pay the selling price
after his death. Siska Development Corporation cannot execute it under the name of
the deceased Louis P. Dawson because he does not have anymore civil personality or
juridical capacity. The petition is granted and the decision of the Court of Appeals is
reversed. The Regional Trial Court of Quezon City is ordered to cause the cancellation
of TCT No. RT-58706 (248057) issued in the name of Louis P. Dawson and to cause the
issuance of a new certificate of title in the names of the petitioners as co-owners of the
subject property, after said petitioners have fulfilled the requirements stated in Section
108 of PD 1529.

LAW:

The applicable law in this case is the Presidential Decree 1529 or the Property
Registration Decree