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** Designated additional member per Special Order No. 558 dated January
15, 2009.
* SECOND DIVISION.
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plaint, and the test of the sufficiency of the facts alleged in the
complaint to constitute a cause of action is whether or not admitting
the facts alleged, the court could render a valid judgment upon the
same in accordance with the prayer of the complaint.·It is well-
settled that to sustain a dismissal on the ground that the complaint
states no cause of action, the insufficiency of the cause of action
must appear on the face of the complaint, and the test of the
sufficiency of the facts alleged in the complaint to constitute a cause
of action is whether or not, admitting the facts alleged, the court
could render a valid judgment upon the same in accordance with
the prayer of the complaint. For the purpose, the motion to dismiss
must hypothetically admit the truth of the facts alleged in the
complaint. The admission, however, is limited only to all material
and relevant facts which are well pleaded in the complaint.
Land Titles; Land Registration; The act of registration is the
operative act to convey or affect the land insofar as third persons are
concerned,‰ it follows that where there is nothing in the certificate of
title to indicate any cloud or vice in the ownership of the property, or
any encumbrance thereon, the purchaser is not required to explore
farther than what the Torrens title upon its face indicates in quest
for any hidden defect or inchoate right that may subsequently defeat
his right thereto.·The complaint does not allege any defect with
TCT No. T-8242 in the name of the spouses Rodolfo, who were
petitionerÊs predecessors-in-interest, or any circumstance from
which it could reasonably be inferred that petitioner had any actual
knowledge of facts that would impel it to make further inquiry into
the title of the spouses Rodolfo. It is basic that a person dealing
with registered property need not go beyond, but only has to rely on,
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TINGA, J.:
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4 Id., at pp. 22-26. The order was penned by Judge Alicia L. Santos.
The dispositive portion reads as follows:
WHEREFORE, viewed from the foregoing considerations, the
Motion to Dismiss filed by defendant Guaranteed Homes, Inc. is
hereby GRANTED. Consequently, this case is hereby
DISMISSED.
SO ORDERED.
5 Id., at p. 118.
6 Id., at pp. 128-141.
7 Records, pp. 21-22.
8 Rollo, p. 120.
9 Id., at pp. 26-27.
10 Id., at p. 33.
11 Id., at pp. 143-144.
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was issued in the name of the spouses Rodolfo and TCT No.
T-8241 was thereby cancelled.18 Subsequently, on 31
October 1969, the spouses Rodolfo sold the disputed
property to petitioner by virtue of a Deed of Sale with
Mortgage. Consequently, on 5 November 1969, TCT No. T-
8242 was cancelled and TCT No. T-1086319 was issued in
the name of petitioner.20
It was further averred in the complaint that Jorge
Pascua, Sr., son of Cipriano, filed on 24 January 1997 a
petition before the RTC of Olongapo City, Branch 75, for
the issuance of a new ownerÊs duplicate of OCT No. 404,
docketed as Other
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34 Id.
35 Records, p. 107.
36 Santos v. Court of Appeals, G.R. No. 90380, 13 September 1990, 189
SCRA 550; Bailon-Casilao v. Court of Appeals, No. L-78178, 15 April
1988, 160 SCRA 738, 750, citing Gonzales v. Intermediate Appellate
Court, G.R. No. 69622, 29 January 1988, 157 SCRA 587.
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37 Fule and Aragon v. De Legare and Court of Appeals, 117 Phil. 367, 377; 7
SCRA 351, 359 (1963).
38 Co v. Court of Appeals, G.R. No. 93687, 6 May 1991, 196 SCRA 705, 713
citing Lim v. Court of Appeals, 182 SCRA 564 (1990); Hernandez v. Katigbak
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