This case has been cited 1 times or more.
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2007-10-05 |
SANDOVAL-GUTIERREZ, J. |
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| In Occeña v. Esponilla,[5] this Court, speaking through then Associate Justice (now Chief Justice) Reynato S. Puno, laid down the following rules in the application of Article 1544: (1) Knowledge by the first buyer of the second sale cannot defeat the first buyer's rights except when the second buyer first registers in good faith the second sale; and (2) Knowledge gained by the second buyer of the first sale defeats his rights even if he is first to register, since such knowledge taints his registration with bad faith. Differently put, the act of registration by the second buyer must be coupled with good faith, meaning, the registrant must have no knowledge of the defect or lack of title of his vendor or must not have been aware of facts which should put him upon such inquiry and investigation as might be necessary to acquaint him with the defects in the title of his vendor.[6] | |||||