Dear Attorney,

I recently discovered that someone sold our land, pretending to be the rightful owner. They claimed they had been fully paid for the property. However, the title to the land is still in my name. Can the sale between them and the buyer be considered valid? What steps should I take to address this fraudulent transaction?

Sincerely,
Concerned Landowner

Insights

The issue you are describing involves a fraudulent sale of land, where someone unlawfully represented themselves as the owner. Based on Philippine law, specifically the Civil Code of the Philippines, a valid sale requires the seller to be the rightful owner of the property or to have the authority to sell it. Since you hold the title to the land, you are the rightful owner, and any sale conducted by someone else without your knowledge and consent is considered void.

The principle of “Nemo dat quod non habet” applies here, meaning "one cannot give what one does not have." If the person who sold the land did not have the legal ownership or the authority to sell the property, the transaction is invalid. In other words, the fraudulent seller could not have transferred any legal ownership rights to the buyer because they did not possess those rights in the first place.

Here are key legal actions and remedies you may consider:

File a complaint for annulment of the sale
Since the sale is fraudulent, you may file an action in court to annul the contract of sale between the fraudulent seller and the buyer. The court would declare the transaction void and protect your rights as the legal owner of the property.
Pursue criminal charges
The fraudulent seller may be held criminally liable for estafa (fraud) under the Revised Penal Code or for violation of other laws related to property and ownership. If convicted, the fraudulent seller could face imprisonment and fines.
Cancel the buyer's claim
Even if the buyer acted in good faith, they have no legal claim to the property because the sale was conducted by someone with no legal right to sell. However, the buyer may pursue their own legal remedies against the fraudulent seller for damages or the return of any payments made.
File a notice of adverse claim
To protect your interest in the property, you should file a notice of adverse claim with the Registry of Deeds. This will alert third parties, including the buyer, that you are disputing any claim on the property and asserting your rights as the legal owner.
Recover damages
If you have suffered losses because of the fraudulent sale, you may file a civil case to recover damages from the fraudulent seller, including any costs incurred to resolve the issue.

It's essential to take swift legal action to protect your rights as the registered owner of the land. The fraudulent sale does not transfer ownership, and your legal remedies under Philippine law allow you to recover and protect your property.

Ensure you consult with a real estate lawyer who can assist you in navigating the legal process, filing the appropriate actions, and protecting your ownership rights over the land.