Professional Documents
Culture Documents
Investco originally owned 6 parcels of land located in QC and Marikina which it agreed to sell
to Solid Homes for P10, 211,075.00, payable in installments from July 22, 1977 to Jan. 22,
1983.
However after payment of P2,042,215 corresponding to the DP and P4,084,430 representing
the first 4 semi-annual installments and a portion of the 5th installment, Solid homes made
no further payment to Investco Inc after FEB. 19, 1981.
A balance of P4,300,282.91 was due.
Investco filed with the RTC of rizal an action for specific performance and damages against
Solid homes
Solid Homes filed with the trial court an answer to the complaint alleging that the purchase
price under the contract was not yet due.
On Sept. 20, 1984, SH filed with the RD Marikina a notice of lis pendens. However, th notice
of l. pendens was not actually annotated on the titles in the name of Investco.
The trial court rendered judgment in favor of Investco ordering SH to pay P4,800,282.91.
On April 23, 1984, Investco offered to sell to AFP MBAI for P24mil the property payable in
installments. Investco furnished AFP certified true copies of the titles covering the Marikina
property.
AFP Mbai verified the titles to the RD of Marikina and found that the titles were genuine and
faithful and confirmed the absence of any lis pendens, adverse claims or any liens or
encumbrances on the originals of the titles.
AFP MBAI also obtained a certification from the Clerk of The MTC Marikina that investco has
no pending case before the court.
On April 26, 1985 the RD of Marikina issued Transfer certificates in the name of AFP MBAI
Solid H. commenced action before the RTC Marikina against the RD, Inv and AFP for
annotation of lis pendens and damages which was decided in favor of SH.
AFP appealed to the CA but was denied.
Issue: WON SH is entitled to the annotation of its notice of lis pendens on the titles of Investco and
AFP MBAI.
HELD:
No. "Lis pendens is a Latin term which literally means a pending suit or a pending litigation while a
notice of lis pendens is an announcement to the whole world that a particular real property is in
litigation, serving as a warning that one who acquires an interest over the said property does so at
his own risk.
A notice of lis pendens is not and can not be sought as a principal action for relief. "The notice is but
an incident to an action, an extra-judicial one to be sure. It does not affect the merits thereof.
the Register of Deeds of Marikina denied the annotation of the notice of lis pendens on the ground
that the complaint in Civil Case No. 40615 was for collection of a sum of money and did not involve
the titles to or possession of the subject property.1[26] If Solid Homes did not agree with the denial
of the Register of Deeds, it could appeal the same en consulta to the Commissioner of Land
Registration.2[27] The resolution of the Commissioner may then be appealed to the Court of
Appeals, which has exclusive jurisdiction to decide the same, "within the period and in the manner
provided by law.
In its questioned decision, the Court of Appeals held that the action filed by Investco, Inc. against
Solid Homes "is not exclusively for payment of the unpaid installments on the purchase price of the
subject properties and damages, but also one for rescission of the contract to sell and to buy the
subject properties executed by defendant Investco, Inc. in favor of (Solid Homes) which necessarily
involves delivery of possession and ownership of the same.
We do not agree. This ruling conflicts with the final decision of the Supreme Court on the case.3[30]
What is more, in determining the nature of plaintiffs (Investco, Inc.) action in Civil Case No. 40615
and defendant Solid Homes counterclaim thereto, the Court of Appeals went beyond the allegations
in the complaint and ventured into speculation and conjecture. There is nothing in Investcos
complaint in Civil Case No. 40615 that even remotely suggests that Investco, Inc. has rescinded the
contract, or that it sought the rescission of the sale as an alternative remedy. Specific performance
and rescission are alternative remedies which a party may not avail himself of at the same
time.4[31]
The nature of an action is determined by the allegations of the complaint.5[32]
Investcos complaint was an action for collection of sums of money, damages and attorneys
fees6[33] to recover from Solid Homes unpaid installments on the purchase price of the subject
property. To emphasize, the case was an action for collection of unpaid installments on the
In the absence of a valid notice of lis pendens annotated in the titles, AFP MBAI is a buyer in good
faith and for value, and thus, acquired clean and valid titles to the property in question.
purchase price subject real property. In such case, the annotation of a notice of lis pendens on the
titles of the property was not proper as the action was in personam.7[34]
Consequently, the doctrine of lis pendens is inapplicable to this case. The Register of Deeds of
Marikina correctly denied the annotation of the notice of lis pendens on the titles of Investco, Inc.
and the AFP MBAI.