526 Phil. 587
CORONA, J.:
On May 10, 1989, plaintiffs [petitioners here] entered into a contract with Oakland Development Resources Corporation for the purchase in installments of a piece of property, with improvements, located at No. 06, Garnet St., Prater Village II, Diliman, Q.C. covered by TCT No. 27946 of the Registry of Deeds for Quezon City and more particularly described in a photocopy of TCT No. 27946 [...];The case was raffled to Branch 220[2] of the Quezon City Regional Trial Court (RTC) and was docketed as Civil Case No. Q-99-37908.
Immediately thereafter, plaintiffs took possession of the property covered by TCT No. 27946 of the Registry of Deeds for Quezon City and resided thereat together with their relatives who continued to occupy the same whenever the plaintiffs would leave for Italy where they both worked. Hence, from May of 1989 up to the present date, plaintiffs were in continuous and notorious possession of the property covered by TCT No. 27946 of the Registry of Deeds for Quezon City to the exclusion of others and in the concept of an owner;
In March of 1992, plaintiffs were able to fully pay for the agreed purchase price of the property covered by TCT No. 27946 of the Registry of Deeds for Quezon City and accordingly, a Deed of Absolute Sale dated March 12, 1992 was executed by and between Oakland Development Resources Corporation [...] and the original owner's copy of TCT No. 27946 of the Registry of Deeds for Quezon City accordingly turned over to them;
However, despite the execution of the Deed of Absolute Sale, Oakland Development Resources Corporation failed to cause the transfer of title to plaintiffs. On the part of plaintiffs, all the while they thought that the Deed of Absolute Sale and possession of the original of the owner's copy of TCT No. 27946 of Registry of Deeds for Quezon City was more than sufficient to protect their rights and interests over the property;
Sometime March of 1999, during one of the trips of plaintiff Consorcia Ragasa to the Philippines from Italy, upon learning that Oakland Development Resources Corporation was no longer functional as a corporate entity, she decided to cause the transfer of registration of TCT No. 27946 of Registry of Deeds for Quezon City herself since the vendor thereof was apparently in no position to undertake the same;
She was thus surprised to learn from the Registry of Deeds for Quezon City that on April 14, 1995, the property in question was sold by defendant Ex-Officio Sheriff of Quezon City [a respondent here] to defendants Sps. Roa [respondents here] as the highest bidder for the price and consideration of P511,000.00 as shown in the Sheriff's Final Deed of Sale [...].xxx xxx xxx
The levy on attachment and the execution sale undertaken by the Ex-Officio Sheriff's Office of Quezon City is clearly illegal there being no notice given by said individual to the occupants of the property in question.
Furthermore, a casual perusal of the Sheriff's Deed of Sale will reveal that the execution price of P511,000.00 is grossly inadequate to pay for real properties listed therein with fair market values conservatively estimated at P3,000,000.00
Whenever there is a cloud on title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.To make out an action to quiet title under the foregoing provision, the initiatory pleading has only to set forth allegations showing that (1) the plaintiff has "title to real property or any interest therein"[7] and (2) the defendant claims an interest therein adverse to the plaintiff"s arising from an "instrument, record, claim, encumbrance, or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable."[8] Thus, the averments in petitioners' complaint that (1) they acquired ownership of a piece of land by tradition or delivery as a consequence of sale and (2) private respondents subsequently purchased the same piece of land at an allegedly void execution sale were sufficient to make out an action to quiet title under Article 476.
An action may also be brought to prevent a cloud being cast upon title to real property or any interest therein.
[I]t is an established rule of American jurisprudence (made applicable in this jurisdiction by Art. 480 of the New Civil Code)[12] that actions to quiet title to property in the possession of the plaintiff are imprescriptible.Accordingly, petitioners' action was not subject to prescription."The prevailing rule is that the right of a plaintiff to have his title to land quieted, as against one who is asserting some adverse claim or lien thereon, is not barred while the plaintiff or his grantors remain in actual possession of the land, claiming to be owners thereof, the reason for this rule being that while the owner in fee continues liable to an action, proceeding, or suit upon the adverse claim, he has a continuing right to the aid of a court of equity to ascertain and determine the nature of such claim and its effect on his title, or to assert any superior equity in his favor. He may wait until his possession is disturbed or his title is attacked before taking steps to vindicate his right. But the rule that the statute of limitations is not available as a defense to an action to remove a cloud from title can only be invoked by a complain[ant] when he is in possession. One who claims property which is in the possession of another must, it seems, invoke his remedy within the statutory period." (citations omitted)[13]