Tarrosa v. De Leon, G.R. No. 185063, July 23, 2009

FACTS: On July 20, 1965, Bonifacio De Leon, then single, and the People’s Homesite and Housing Corporation (PHHC) entered into a Conditional Contract to Sell for the purchase on installment of a lot situated in Quezon City.  On April 24, 1968, Bonifacio married Anita de Leon. They had two children, Danilo and Vilma. On June 22, 1970, PHHC executed a Final Deed of Sale in favor of Bonifacio upon full payment of the price of the lot. TCT was issued on February 24, 1972 in the name of Bonifacio, “single.” On January 12, 1974, Bonifacio sold the lot to his sister, Lita, and her husband, Felix Tarrosa. The Deed of Sale did not bear the written consent and signature of Anita. On February 29, 1996, Bonifacio died.

Three months later, Tarrosa spouses registered the Deed of Sale. Anita, Danilo, and Vilma filed a reconveyance suit allegeing that Bonifacio was still the owner of the lands. Tarrosa spouses averred that the lot Bonifacio sold to them was his exclusive property because he was still single when he acquired it from PHHC.  They further alleged that they were not aware of the marriage between Bonifacio and Anita at the time of the execution of the Deed of Sale.

The RTC ruled in favor of Anita De Leon et al stating that the lot in question was the conjugal property of Bonifacio and Anita. The CA affirmed the decision of the RTC. Hence, this petition.

ISSUE: W/N the property that Bonifacio has purchased on installment before the marriage although some installments were paid during the marriage would be considered conjugal property

HELD: Yes. The subject lot which was once owned by PHHC and covered by the Conditional Contract to Sell was only transferred during the marriage of Bonifacio and Anita. The title to the property was only passed to Bonifacio after he had fully paid the purchase price on June 22, 1970.  This full payment was made more than 2 years after his marriage to Anita on April 24, 1968.  In effect, the property was acquired during the existence of the marriage. Hence, ownership to the property is presumed to belong to the conjugal partnership.