CAMPILLO, vs.

CA
Facts:
1. Tomas de Vera was the owner of (2) parcels of land in Tondo, Manila. In 1961, de Vera
sold the lands to Simplicio Santos. Santos, nor his administrator respondent Santos,
however did not register the sale in the Registry of Deeds, which means that the land
was still under de Vera’s name.
2. On the other hand, de Vera was indebted to Campillo. Due to a prior civil case, Campillo
obtained a judgment for sum of money and De Vera’s (3) parcels of land, including those
sold to Santos were levied in 1962 in favor of Campillo. Campillo acquired the land and
he was able to have the lands be registered under his name.
3. Lapse 1 year, City Sheriff executed the final deed of sale in favor of petitioner and the
TCT was cancelled and a new one was issued in his name.
4. Santos filed to annul the sale to Campos on account of his early sale to him by De Vera
5. LC: sustained validity and sale to Campillo
ISSUE: WON Santos who first bought it w/o registering it has a better right than Campillo who
subsequently purchased it at a public auction and registered under his name?

HELD:NO, Campillo has the right over the said properties.

 It is settled in this jurisdiction that a sale of real estate, whether made as a result of a
private transaction or of a foreclosure or execution sale, becomes legally effective
against third persons only from the date of its registration. Santos purchase of the two
parcels of land may be valid but it is not enforceable against third persons for he failed
to have it registered.
 Campillo is a purchaser in good faith as he was not aware of any previous sale for Santos
never caused the annotation of the sale.
 Sec 51, PD 1529, “the Property Registration Decree,” provides:
o "Section 51. Conveyance and other dealings by registered owner. -An owner of
registered land may convey, mortgage, lease, charge or otherwise deal with the
same in accordance with existing laws. He may use such forms of deeds,
mortgages, leases or other voluntary instruments as are sufficient in law. But no
deed, mortgage, lease or other voluntary instrument except a will purporting to
convey or affect registered land shall take effect as a conveyance or bind the
land, but shall operate only as a contract between the parties and as evidence of
authority to the Register of Deeds to make registration.
o The act of registration shall be the operative act to convey or affect the land
insofar as third persons are concerned, and in all cases under this Decree, the
registration shall be made in the office of the Register of Deeds for the province
or city where the land lies."
 The purchaser (Campillo) in the execution sale of the registered land in suit, acquires
such right and interest as appears in the certificate of title unaffected by prior lien or
encumbrances not noted therein. This must be so in order to preserve the efficacy and
conclusiveness of the certificate of title which is sanctified under our Torrens system of
land registration.