Lee vs. Director of Lands GR 128195

ISSUE:  Whether or not the lot can revert back to the owner. 

FACTS:  The sale of the land in question was consummated sometime in March 1936, during the effectivity of the1935 Constitution which prohibits aliens to acquire private agricultural lands, save in cases of hereditary succession.Thus, Lee Liong, a Chinese citizen, was disqualified to acquire the land in question. The former owners filed with theCourt of First Instance, Capiz an action against the heirs of Lee Liong for annulment of sale and recovery of land. 

DECISION:  The Court REVERSES and SETS ASIDE the decision of the Court of Appeals in CA-G. R. SP No. 36274. In lieu thereof, the Court sets aside the order of reconstitution of title in Reconstitution Case No. R-1928, Regional Trial Court, Roxas City, and dismisses the petition, without prejudice. 

RATIO DECIDENDI:  No. The land is now in the hands of Filipinos. If the land was invalidly transferred to an alien who subsequently becomes a citizen or transfers it to a citizen, the flaw in the original transaction is considered cured and the title of the transferee is valid.