When the petitioner received the Sinumpaang Salaysay, it should have noted that the effectivity of the said document commences at the time of the death of the author of the instrument; in her words "sakaling ako ay bawian ng Diyos ng aking buhay." Hence, in such period, all the interest of the person should cease to be heirs and shall be in the possession of her estate until they are transferred to the heirs by virtue of Article 774 of the Civil Code:
Article 774. Succession is a mode of acquisition by virtue of which the property, rights, and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another or others either by his will or by operation of law.
By considering the document, petitioner NHA should have noted that the original applicant has already passed away. To the extent of the interest that the original owner had over the property, the same should go to her estate. Margarita had an interest in the property and that interest should go to her estate upon her demise so as to be able to properly distribute them later to her heirs, in accordance with a will or by operation of law.
If we sustain the position of the NHA that this document is not a will, then the interests of the decedent should transfer by operation of law and not by virtue of a resolution by the NHA. For as it stands, NHA cannot make another contract to sell to other parties a property already initially paid for by the decendent. Such would be an act contrary to the law on succession and the law on sales and obligations.
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