Category: Property, Ownership and Its Modifications
PO LAM V. CA
347 SCRA 86
Lim Kim Chiong and LAHCO entered into a contract of sale. Later, the former instituted an action for the annulment of the sale and the reconveyance of the property. Pending this action, LAHCO was able to sell the property to Po Lam who leased then the property to Felix Lim. The latter thereafter after the proceedings have ended for the annulment of the sale, deposited the rentals in court in favor of Lim.
A buyer cannot be considered as being aware of the flaw which invalidates his acquisition of the thing where the alleged flaw, the notice of lis pendens, was already ordered cancelled at the time of purchase.