Monday, January 5, 2015

GSIS housing loan; GSIS consent needed when property is sold by debtor.




GOVERNMENT SERVICE INSURANCE SYSTEM, petitioner, vs. ANTONIO P. OLISA, respondent. [G.R. No. 126874. March 10, 1999]

“x x x.

It is significant to note that respondent Olisa can obtain complete judicial  relief even without the GSIS being joined as a party to the case. If the court sustains respondent's view, the court shall simply order defendant Vicente Francisco who now has the title to the property to reconvey the same to respondent Olisa. After all, he is in actual possession of the subject lot.
On the other hand, GSIS is not privy in any way to the contract between respondent Olisa and heirs of Benjamin Rivera for the transfer of rights to the lot in question. Actually this is a  prohibited transaction in the original award to Benjamin Rivera. The GSIS had nothing to do with the subsequent sale of the lot between the Riveras and Vicente Francisco. The only participation that GSIS had with respect to the subject property was issuance of the title to heirs of the original awardee, Benjamin Rivera, which was a matter of compliance with the contract after full payment of the purchase price of the lot. Since, according to the record of the GSIS, respondent Olisa had not been substituted in place of the original  awardee, GSIS was bound to honor the contract with the original awardee.  Indeed, the payments were continued in the name of the original awardee.

Surely, for complying with the terms of its contract, GSIS can not be faulted.
However, in the complaint below, respondent alleged that he filed with the GSIS an application to be substituted as awardee in place of the late Benjamin Rivera, the original awardee. He failed to attach any document to support such claim. The GSIS could not have approved such transfer of rights, which is prohibited in the terms of the award in favor of Rivera. We have held that "facts which appear by record or document included in the pleadings to be unfounded" are not deemed admitted by a motion to dismiss."[1]

In a similar case, this Court held that "In the first place, there can be no question that petitioners purchased the property in question from the De los Reyes spouses by virtue of a deed of sale with assumption of mortgage of the property without the previous consent of the respondent GSIS. Petitioners thereby took a calculated risk knowing as they did that under the mortgage contract of De los Reyes with the GSIS, its previous consent must be secured in transactions of this nature."[2]

Consequently, any error of the trial court in its ruling dismissing the complaint as against GSIS is one of procedure, not of jurisdiction, which may be corrected only by appeal.[3]

X x x.”



[1]  Tan vs. Director of Forestry, 125 SCRA 302, 315.
[2]  Cruz vs. Court of Appeals, 191 SCRA 170.
[3]  Republic vs. Sioson, 118 Phil. 1377; De Villa vs. Commendador, 200 SCRA 80; Sy vs. Court of Appeals, 200 SCRA 117; Day vs. Regional Trial Court of Zamboanga, 191 SCRA 610.