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SUPREMECOURTREPORTSANNOTATEDVOLUME702
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*SECOND DIVISION.
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at her own risk she bears the risk of injury occasioned by her
transaction with the spouses Johnson.
634
BRION,J.:
We resolve the petition for review on certiorari1 filed by
petitioner Sally Yoshizaki to challenge the February 14,
2006 Decision2 and the October 3, 2006 Resolution3 of the
Court of Appeals (CA) in CAG.R. CV No. 83773.
The Factual Antecedents
Respondent Joy Training Center of Aurora, Inc. (Joy
Training) is a nonstock, nonprofit religious educational
institution. It was the registered owner of a parcel of land
and the building thereon (real properties) located in San
Luis Purok No. 1, Barangay Buhangin, Baler, Aurora. The
parcel of land was designated as Lot No. 125L and was
covered by Transfer Certificate of Title (TCT) No. T25334.4
On November 10, 1998, the spouses Richard and Linda
Johnson sold the real properties, a Wrangler jeep, and
other personal properties in favor of the spouses Sally and
Yoshio Yoshizaki. On the same date, a Deed of Absolute
Sale5 and a Deed of Sale of Motor Vehicle6 were executed in
favor of the spouses Yoshizaki. The spouses Johnson were
members of Joy Trainings board of trustees at the time of
sale. On December 7, 1998, TCT No. T25334 was cancelled
and TCT No. T260527 was issued in the name of the
spouses Yoshizaki.
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1 Dated November 20, 2006 and filed under Rule 45 of the Rules of
Court Rollo, pp. 3668.
2Id., at pp. 930 penned by Associate Justice Mariano C. del Castillo
(now a Member of this Court), and concurred in by Associate Justices
Conrado M. Vasquez, Jr. and Magdangal M. de Leon.
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8 Id., at p. 10.
9 Id., at pp. 1314.
10Id., at p. 12.
11Id., at p. 100.
12Id., at p. 21.
13Id., at p. 18.
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14Id., at p. 98.
15Id., at p. 1516.
16Supra note 13.
17Id., at pp. 204208.
18Id., at p. 213.
19Id., at p. 215.
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22Supra note 3.
23Yoshio was not included as a petitioner because he died prior to the
filing of the petition for review on certiorari before the Supreme Court.
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The Petition
Sally avers that the RTC has no jurisdiction over the
case. She points out that the complaint was principally for
the nullification of a corporate act. The transfer of the
SECs original and exclusive jurisdiction to the RTC24 does
not have any retroactive application because jurisdiction is
a substantive matter.
She argues that the spouses Johnson were authorized to
sell the parcel of land and that she was a buyer in good
faith because she merely relied on TCT No. T25334. The
title states that the spouses Johnson are Joy Trainings
representatives.
She also argues that it is a basic principle that a party
dealing with a registered land need not go beyond the
certificate of title to determine the condition of the
property. In fact, the resolution and the certification are
mere reiterations of the spouses Johnsons authority in the
title to sell the real properties. She further claims that the
resolution and the certification are not even necessary to
clothe the spouses Johnson with the authority to sell the
disputed properties. Furthermore, the contract of agency
was subsisting at the time of sale because Section 108 of
Presidential Decree No. (PD) 1529 requires that the
revocation of authority must be approved by a court of
competent jurisdiction and no revocation was reflected in
the certificate of title.25
The Case for the Respondent
In its Comment26 and Memorandum,27 Joy Training
takes the opposite view that the RTC has jurisdiction over
the case.
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24Section 5.2 of Republic Act No. 8799.
25Supra note 1.
26Rollo, pp. 177185.
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645
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zaki. Sally cannot also claim that she was a buyer in good
faith. She misapprehended the rule that persons dealing
with a registered land have the legal right to rely on the
face of the title and to dispense with the need to inquire
further, except when the party concerned has actual
knowledge of facts and circumstances that would impel a
reasonably cautious man to make such inquiry.47 This rule
applies when the ownership of a parcel of land is disputed
and not when the fact of agency is contested.
At this point, we reiterate the established principle that
persons dealing with an agent must ascertain not only the
fact of agency, but also the nature and extent of the agents
authority.48 A third person with whom the agent wishes to
contract on behalf of the principal may require the
presentation of the power of attorney, or the instructions as
regards the agency.49 The basis for agency is
representation and a person dealing with an agent is put
upon inquiry and must discover on his own peril the
authority of the agent.50 Thus, Sally bought the real
properties at her own risk she bears the risk of injury
occasioned by her transaction with the spouses Johnson.
WHEREFORE, premises considered, the assailed
Decision dated February 14, 2006 and Resolution dated
October 3, 2006 of the Court of Appeals are hereby
AFFIRMED and the petition is hereby DENIED for lack
of merit.
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47Naawan Community Rural Bank, Inc. v. Court of Appeals, 443 Phil.
56, 6566 395 SCRA 43, 50 (2003).
48 Country Bankers Insurance Corporation v. Keppel Cebu Shipyard,
G.R. No. 166044, June 18, 2012, 673 SCRA 427, 451.
49CIVIL CODE, Article 1902.
50CIVIL CODE, Article 1403.
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SO ORDERED.
Carpio (Chairperson), Perez, Mendoza
Bernabe, JJ., concur.
**
and Perlas
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