Elizabeth Lee and Pacita Lee vs. Director of Lands

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Elizabeth Lee and Pacita Lee vs. Director of Lands, Political Law 1, G.R. No. 128195, October 3, 2001


FACTS:

Sometime in 1936, Rafael Dinglasan et.al., sold to a Chinese citizen named Lee Liong, a parcel of land lot 398 covered by an Original Certificate of Title No. 3389 situated in Roxas City. 

In 1948 and 1968 former owners filed with the court an action against the heirs of Lee Liong for annulment of sale and recovery of land. They assailed the validly the validity of the sale because of the constitutional prohibition against alien acquiring ownership of lands either of private or public domain.  In both cases, Supreme Court ruled against Dinglasan. 

In 1993, the herein petitioners who were widows of the heirs of Lee Liong who was then the owner of the subject land, filed with the RTC a petition for reconstruction of title of lot. no. 348 formerly covered by OCT No. 3389.

Elizabeth Lee acquired her share in lot. no. 398 through an extrajudicial settlement and donation executed in her favor by her husband Lee Bing Hoo; on the other hand, Pacita Lee acquired her share in the same lot by succession from her deceased husband Lee Bunting. 

Previously in December 1948, the Registry of Deeds issued a Certification that the Transfer Certificate of Title was issued in the name of Lee Liong, However, their records were burned out during the 2nd world war. Hence this petition for reconstitution of title. 

In 1994, RTC ordered the reconstitution of title. Solicitor General filed with the Court of Appeals a petition for annulment of judgment of the RTC, alleging that petitioners were not the proper party in the reconstitution of title since their predecessor in interest was a Chinese and was not qualified under the constitution to acquire lands. CA declared the order of RTC void. 

ISSUE:

Whether the prohibition applies/extended to the Filipino successors of the land acquired by a foreign national. 

HELD:

NO. If land in invalidly transferred to an alien who subsequently becomes a citizen or transfers it to a citizen of the Philippines, the flaw in the original transaction is considered cured and the title of the transferee is rendered valid. 

The Constitutional prescription on alien ownership of lands of the public prescription on alien ownership of lands of the public or private domain was intended to protect land from fall in the hands of non-Filipinos. In this case, however, there would be no more public policy violated since the land is in the hands of the Filipinos qualified to acquire and own such land. 

Thus, the subsequent transfer of the property to qualified Filipinos may no longer impugned on the basis of the invalidity of the initial transfer. 

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