Case Digest: Trias vs. Araneta G.R. No. L-20786 I October 30, 1965

FACTS:

In May 1963, Rafaela Trias filed a petition to cancel an annotation at the back of her Torrens certificate of title, which reads as follows: “5. that no factories will be permitted in this section.” She alleged she was the registered owner of this lot in Quezon City; that she wanted the cancellation, not for the purpose of erecting a factory thereon, but merely to facilitate approval of a loan she had applied for; that the restriction was illegal, because it impaired the owner's dominical rights; and that it was a mere surplusage anyhow, because there are zoning ordinances prohibiting establishment of factories in that district.

Acting on the petition, the court granted it, endorsing her views, particularly the one referring to surplusage due to a zoning ordinance.

Two weeks later, Gregorio Araneta, Inc. moved for reconsideration of the order, alleging: (a) that the condition had been inserted in the title pursuant to a contract of sale between it and Rafaela's predecessor-in-interest; (b) that it received no timely notice of petition; (c) that the order disregards contractual rights and obligations; (d) that the prohibition against factories was valid, and not a surplusage; and (e) that the Court had no jurisdiction to act on the petition.

ISSUE:

Whether or not the prohibition on the Torrens certificate of title was valid.

DECISION:

The prohibition was valid. Such prohibition constitutes an easement which every owner of real estate may validly impose under Art. 688 of the New Civil Code, which provides that "the owner of a piece of land may establish thereon the easements which he may deem suitable ... provided he does not contravene the law, public policy or public order".

The limitation is essentially a contractual obligation which the seller Tuason & Co., Inc. imposed, and the purchaser agreed to accept, for the purpose of assuring purchasers of the lots therein that the peace and quiet of the place will not be disturbed by the noise or smoke of factories in the vicinity.

The existence of a zoning ordinance prohibiting factories in the area is immaterial. The ordinance might be repealed at any time; and if so repealed, this prohibition would not be enforceable against new purchasers of the land, who may be ignorant thereof. The same remark applies to Rafaela's promise not to build a factory on the lot: new owners might not be bound.