The Importance of Due Diligence in Notarization to Safeguard Property Rights

Susana G. De Guzman v. Attys. Federico T. Venzon and Glenn B. Palubon, A.C. No. 8559, July 27, 2020, 877 Phil. 960

Imagine losing your family’s ancestral land due to a seemingly routine notarization process gone wrong. This nightmare became a reality for Susana G. De Guzman, whose property was lost because of a notarized document that she never signed. The Supreme Court’s decision in her case against the notary public, Atty. Federico T. Venzon, underscores the critical role of notaries in safeguarding property rights and the severe consequences of negligence in their duties.

In this case, Susana G. De Guzman filed a complaint seeking the disbarment of Atty. Venzon and Atty. Glenn B. Palubon. She alleged that Atty. Venzon had notarized a Sinumpaang Salaysay that purported to waive her rights over her 13,225-square meter land in Bulacan. This document was used by the Santos siblings, with the alleged assistance of Atty. Palubon, to challenge De Guzman’s ownership in a DARAB case, ultimately resulting in her losing the land. The central legal question was whether the notary’s failure to follow proper notarization procedures constituted a violation of professional and notarial duties.

Legal Context: The Role and Responsibilities of a Notary Public

Notarization is not a mere formality but a crucial legal act that transforms a private document into a public one, making it admissible in court without further proof of authenticity. The 2004 Rules on Notarial Practice outline the responsibilities of notaries public, emphasizing the need to ensure the identity of the signatory and their voluntary execution of the document. According to Section 2(b) of Rule IV of the 2004 Notarial Rules, a notary public must not perform a notarial act if the person involved is not personally present or if their identity is not verified through competent evidence.

Competent evidence of identity, as defined in Section 12 of Rule II, includes at least one current identification document with a photograph and signature or the oath of a credible witness. This requirement is essential to prevent fraud and to ensure that the person executing the document is indeed who they claim to be. The failure to adhere to these rules can lead to severe legal consequences, as demonstrated in this case.

For instance, if a notary public notarizes a document for someone claiming to be the property owner without verifying their identity, it could lead to fraudulent transactions and disputes over property rights. Such negligence undermines the integrity of the legal system and can result in the loss of valuable assets.

Case Breakdown: From Notarization to Supreme Court Ruling

Susana G. De Guzman’s ordeal began when she discovered that her land was the subject of a DARAB case based on a Sinumpaang Salaysay notarized by Atty. Venzon. She claimed she never signed the document, which purported to waive her rights over the property. Atty. Venzon admitted to notarizing the document but argued that he did not require identification from the elderly couple who presented it, believing their age made such verification unnecessary.

The case proceeded through the Integrated Bar of the Philippines (IBP), where an Investigating Commissioner recommended a six-month suspension for Atty. Venzon as a notary public and dismissal of the complaint against Atty. Palubon due to insufficient evidence of his involvement. The IBP Board of Governors later revised the recommendation, suggesting the revocation of Atty. Venzon’s notarial commission, disqualification from being commissioned as a notary public for two years, and a six-month suspension from the practice of law.

The Supreme Court upheld these recommendations, emphasizing the gravity of Atty. Venzon’s negligence. The Court stated, “Notarization is not an empty, meaningless routinary act, but one invested with substantive public interest.” It further noted, “When Atty. Venzon affixed his signature and notarial seal on the Sinumpaang Salaysay, he certified that the party purportedly executing the same, i.e., herein complainant, personally appeared before him, and attested to the truth and veracity of its contents – even if it appears that it was not complainant who had the document notarized before him.”

The Court also highlighted the connection between notarial duties and the Code of Professional Responsibility, stating, “In the realm of legal ethics, a breach of the 2004 Notarial Rules would also constitute a violation of the Code of Professional Responsibility – particularly, Canon 1 and Rule 1.01 thereof.”

Practical Implications: Safeguarding Property Rights

This ruling underscores the importance of due diligence in notarization processes, particularly when dealing with property rights. Property owners must ensure that any document affecting their rights is properly notarized, and notaries must adhere strictly to the 2004 Notarial Rules to prevent fraudulent transactions.

For businesses and individuals, this case serves as a reminder to verify the identity of parties involved in legal documents and to seek legal counsel if there are any doubts about the authenticity of a notarized document. The consequences of negligence can be severe, leading to the loss of property and legal disputes.

Key Lessons:

• Always verify the identity of the person executing a document before notarization.
• Notaries must follow the 2004 Notarial Rules diligently to prevent fraud and uphold the integrity of legal documents.
• Property owners should be vigilant about any documents affecting their rights and seek legal advice if necessary.

Frequently Asked Questions

What is the role of a notary public in the Philippines?
A notary public in the Philippines is responsible for verifying the identity of signatories and ensuring that documents are executed voluntarily, thereby converting private documents into public ones admissible in court.

What are the consequences of not following notarial rules?
Failure to adhere to notarial rules can result in the revocation of a notarial commission, suspension from the practice of law, and potential legal action against the notary for negligence or fraud.

How can property owners protect their rights?
Property owners should always verify the authenticity of notarized documents affecting their rights and seek legal advice if they suspect any irregularities.

Can a notarized document be contested in court?
Yes, a notarized document can be contested if there is evidence of fraud or if the notarial process was not followed correctly.

What should I do if I suspect a notarized document is fraudulent?
If you suspect a notarized document is fraudulent, consult with a lawyer immediately to explore your legal options and protect your rights.

ASG Law specializes in property law and notarial practice. Contact us or email hello@asglawpartners.com to schedule a consultation.