This case affirms that a notarized deed of sale carries a presumption of regularity and due execution. Consequently, the burden of proof rests on the party challenging its validity to present clear and convincing evidence of fraud or irregularity. The Supreme Court emphasized that absent such evidence, the notarized deed remains valid and binding. The court found that the respondents failed to provide sufficient evidence to overcome this presumption and invalidate the sale. Thus, a notarized deed is considered solid evidence, requiring strong proof to dispute its authenticity.

From Sugarland to Dispute: When Does a Notarized Deed Stand?

In this case, the heirs of Pedro L. Riñoza sought to nullify a deed of sale transferring a parcel of land to Gregorio Destreza. The Riñoza heirs argued that there were irregularities in the execution of the deed. The key question before the Supreme Court was whether the evidence presented was sufficient to overturn the legal presumption of regularity that applies to notarized deeds. This presumption is a cornerstone of the Philippine legal system, ensuring stability and trust in property transactions.

The Court of Appeals initially affirmed the trial court’s decision to nullify the Deed of Sale, citing Destreza’s failure to present additional witnesses and documents to prove the document’s genuineness. However, the Supreme Court reversed this ruling, clarifying the burden of proof in challenging a notarized document. The High Court pointed out that a notarized deed carries a presumption of regularity. This means that it is presumed to have been executed validly unless compelling evidence suggests otherwise. As such, the party challenging the deed, in this case, the Riñoza heirs, must present clear and convincing evidence of fraud or irregularity.

Building on this principle, the Court emphasized the role of the notary public. When a notary public signs and affixes their seal to a document, it transforms it from a private document to a public one, lending it a higher degree of credibility. Thus, “Every instrument duly acknowledged or proved and certified as provided by law, may be presented in evidence without further proof, the certificate of acknowledgment being prima facie evidence of the execution of the instrument or document involved.” In this case, the deed of sale was duly notarized, creating a strong presumption in favor of its validity. Thus, the heirs were not successful in proving that there was fraud.

The respondents, Plazo and Alaras, argued that Destreza’s acquisition of a copy of the transfer certificate of title (TCT) was questionable because it was allegedly released before the title was officially entered into the registry. However, the Court found that this alleged irregularity did not invalidate the deed of sale itself. Citing Section 57 of Presidential Decree No. 1529, also known as the Property Registration Decree, the Court explained that registration serves to bind third parties and does not affect the validity of the contract between the parties themselves. As such, “if a deed is not registered, the deed will continue to operate as a contract between the parties.” The Court also noted that there was evidence suggesting that the late Riñoza himself facilitated the registration of the deed of sale, further undermining the claim of fraud.

Regarding Alaras’ claim that her father offered her a land title for mortgage after the supposed sale to Destreza, the Court found this evidence unpersuasive. Alaras admitted that she did not verify the title number, and there was no concrete proof that it was the same property in question. Moreover, the Court dismissed the discrepancy in the testified amount paid versus the price on the document. Thus, the High Court held the following:

In sum, the Court finds the notarized deed of sale that the late Pedro Riñoza executed in favor of the Destrezas valid and binding upon them and their successors-in-interest. It served as authority to the Register of Deeds to register the conveyance of the property and issue a new title in favor of the Destrezas. That the Destrezas occupied and cultivated the land openly for seven years before and after Riñoza’s death negates any scheme to steal the land.

This case underscores the importance of due diligence in challenging the validity of a notarized deed of sale. Absent clear and convincing evidence of fraud or irregularity, the courts will uphold the presumption of regularity and enforce the terms of the agreement. For this reason, the Court sided in favor of Destrezas.

FAQs

What was the key issue in this case?	The key issue was whether there was sufficient evidence to nullify a notarized deed of sale, given the presumption of regularity it carries. The respondents claimed irregularities in the sale, but the court assessed if the evidence was compelling enough to overcome the presumption.
What is a notarized deed of sale?	A notarized deed of sale is a legal document that transfers property ownership, and has been certified by a notary public. The notarization confirms the identities of the parties and that they signed the document willingly. This process gives the document a presumption of validity in court.
Who has the burden of proof in challenging a notarized deed?	The burden of proof lies with the party challenging the validity of the notarized deed. They must present clear and convincing evidence of fraud, forgery, or any other irregularity in the execution of the document.
What kind of evidence is needed to overturn a notarized deed?	To overturn a notarized deed, one needs to present clear and convincing evidence of fraud, forgery, or any irregularity in its execution. Speculations and flimsy assertions would not suffice. There should be credible and substantial proof.
Does registration of a deed validate the sale between parties?	Registration of a deed primarily affects third parties, serving as notice of the transfer. The validity of the sale between the parties is based on the contract of sale itself. This remains effective between the buyer and seller.
What is the role of the Notary Public?	A Notary Public’s role is to ensure the authenticity of signatures on legal documents. They verify the identity of the parties involved, administer oaths, and attest to the signing of the documents. This notarization gives the document credibility and legal weight.
What if there is a difference in the amount paid versus amount on document?	A discrepancy between the amount paid and the amount declared in the deed does not automatically invalidate the sale. Such discrepancy may raise questions. The court may require additional explanation but is not in itself a ground for nullification absent other clear proof.
Can continuous possession of land strengthen a claim?	Yes, continuous and open possession and cultivation of the land by the buyer is an indication of a legitimate claim. The continuous and public claim negates allegations of a concealed or fraudulent acquisition. Thus, it bolsters the argument of validity.

This ruling reinforces the stability of real estate transactions by upholding the sanctity of notarized documents. It underscores that while challenges to such documents are possible, they require a strong foundation of evidence to succeed. A strong showing of irregularities and fraudulent transfer must be shown.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Gregorio Destreza vs. Atty. Ma. Gracia Riñoza-Plazo and Ma. Fe Alaras, G.R. No. 176863, October 30, 2009