Santos v. Register of Deeds
REITERATIONFacts
The Antecedents: The underlying dispute concerns the registration of a certificate of sale and subsequent documents related to a property foreclosed due to mortgage violations. Natividad Sanchez and Pablo Lucas initially purchased the property, which was later foreclosed upon. Leonila Policarpio emerged as the highest bidder at the auction sale. Subsequently, Policarpio assigned her rights to Paterno Santos. Procedural History: Leonila Policarpio filed the Sheriff's Certificate of Sale for registration on September 2, 1963, but withdrew it the next day due to defects. It was re-entered almost a year later, on August 26, 1964. After Policarpio assigned her rights to Paterno Santos, he registered the assignment on July 19, 1965. A mortgagor redeemed the property on August 17, 1965, presenting a certificate of redemption for registration. Meanwhile, a Deed of Absolute Sale was executed in favor of Policarpio, who confirmed her assignment to Santos. Both the Deed of Confirmation of Assignment and an affidavit of consolidation by Santos were annotated on the title on September 10, 1965, but the pending certificate of redemption was discovered. The Register of Deeds submitted the issue of preference to the Commissioner of Land Registration, who ruled that the certificate of redemption should be given preference. Policarpio's motion for reconsideration was denied, leading to this appeal. The Petition: Leonila Policarpio, as petitioner-appellant, appeals the resolution of the Land Registration Commission. The core issue is whether the one-year redemption period, as prescribed by Act No. 3135, should be computed from the date of the auction sale (September 1963) or from the date of the registration of the Sheriff's Certificate of Sale (August 26, 1964). Appellant contends the period should run from the auction date, while the Commissioner held it runs from the registration date. The appeal hinges on this interpretation of the redemption period's commencement.
Issue(s)
Whether the one-year redemption period for property sold in extrajudicial foreclosure proceedings should be computed from the date of the auction sale or from the date of the registration of the Sheriff's Certificate of Sale. Whether the certificate of redemption should be given preference over the deed of confirmation of assignment and affidavit of consolidation.
Ruling
The Supreme Court affirmed the resolution of the Land Registration Commission, holding that the certificate of redemption should be given preference in registration. The Court ruled that the redemption period commences from the date of registration of the Sheriff's Certificate of Sale.
Ratio Decidendi
On the computation of the redemption period: The Court reiterated the settled doctrine that the redemption period for property sold in extrajudicial foreclosure proceedings, as prescribed by Section 6 of Act No. 3135, as amended by Act No. 4118, begins to run not from the date of the sale, but from the time of the registration of the sale in the Office of the Register of Deeds. This rule, initially applied to execution sales, was extended to foreclosure cases. The Court emphasized that registration serves the purpose of publicity and protection of third parties, including potential redemptioners, by providing constructive notice. Therefore, the "date of sale" mentioned in Section 6 of Act No. 3135 must be construed as the date of registration of the certificate of sale. Only after the lapse of the twelve-month redemption period from the date of registration, and in the absence of any redemptioner, may the deed of final sale be executed and the title consolidated. On the preference of the certificate of redemption: The Court's affirmation of the Commissioner's ruling implies that the certificate of redemption, having been presented for registration prior to the final deed of sale and affidavit of consolidation, and arising from a valid exercise of the right of redemption within the legally prescribed period (computed from registration), should be given precedence. The registration of the certificate of sale on August 26, 1964, established the start of the redemption period. The redemption by Pablo Lucas on August 17, 1965, occurred within this period. Consequently, the subsequent actions of Policarpio and Santos, such as the Deed of Absolute Sale and the Affidavit of Consolidation, could not prejudice the right of the redemptioner once the redemption was properly effected and presented for registration.
Main Doctrine
The redemption period for property sold in extrajudicial foreclosure proceedings, as prescribed by Section 6 of Act No. 3135, as amended, commences not from the date of the auction sale, but from the date of the registration of the Sheriff's Certificate of Sale in the Office of the Register of Deeds.