MASAOY, QUEENCEL MAE M.

This provision classifies lands of the public domain into agricultural,

forest or timber, mineral lands, and national parks. Agricultural lands

HOMESTEAD
I.

of the public domain may be further classified by law according to

the uses to which they may be devoted. Of the above classes, only

Background

agricultural lands of the public domain may be subject to alienation.

Homestead is a mode of acquiring alienable and disposable lands

of the public domain through administrative proceedings for

Under the Public Land Act, lands of the public domain used to be

agricultural purposes conditioned upon actual cultivation and

classified into (1) alienable or disposable lands, (2) timber lands,

residence. The homestead program allows enterprising tenants to

and (3) mineral lands.

acquire a farm of at least 16 hectares to cultivate. It aims to

distribute disposable agricultural land to destitute citizens for their

For purposes of administration and disposition, the lands of the

home and cultivation that is; to give a place for the family, a parcel

public domain classified as disposable or alienable are sub-

of land where the home is constructed, with enough portions of the

classified according to the use or purposes to which such lands are

land to sustain the family.

destined, as follows:

The Public Land Act or Commonwealth Act No. 141 of 1936, as

(a) Agricultural;

amended by Commonwealth Act No. 456, codified existing laws

(b) Residential, commercial, industrial, or for similar

relative to lands of public domain including the Homestead Law of

productive purposes;

1903.It governed the disposition of such lands, and prescribed rules

(c) Educational, charitable, or other similar purposes;

and regulations of homesteading, selling, and leasing of portions of

(d) Reservations for town sites and for public and quasi-

the public domain. In addition, it also prescribed the terms and

public uses.

conditions to enable persons to perfect their titles to public lands in

the Philippines.

It may be stated that lands that do not belong to anybody

Article XII, Section 3, of the 1987 Constitution of the Philippines,
states:

necessarily fall within the category of property of public ownership,

whether under the Regalian Doctrine or under Art. XII, Section 2, of
the 1987 Constitution, for the simple reason that they have no

Lands of the public domain are classified into agricultural,

forest or timber, mineral lands and national parks.
Agricultural lands of the public domain may be further
classified by law according to the uses to which they may
be devoted. Alienable lands of the public domain shall be

known or recognized owner. Unless such lands are needed for

public or common use or service, they do not fall under Article 420
of the Civil Code, but under Article 421 of the same Code, thus
making them patrimonial, and capable of disposition to those
qualified to acquire lands of the public domain.1

limited to agricultural lands. Private corporations or

associations may not hold such alienable lands of the
public domain except by lease, for a period not exceeding
twenty-five years, renewable for not more than twenty-five
years, and not to exceed one thousand hectares in area.
Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve

Thus, only those lands classified as disposable or alienable may be

the subject of an application for Homestead. Anyone who applies for
confirmation of imperfect title has the burden of proof to overcome
the presumption that the land sought to be registered forms part of
the public domain. The classification of public lands is an exclusive
prerogative of the Executive Department.

hectares thereof, by purchase, homestead, or grant.

Taking into account the requirements of conservation,
ecology,

and

development,

and

subject

to

the

II.

Qualification for Homestead Grant

requirements of agrarian reform, the Congress shall

determine, by law, the size of lands of the public domain
which may be acquired, developed, held, or leased and

The Public Land Act provides that any citizen of the Philippines, who
is a natural person, over the age of eighteen (18) years, or the head

the conditions therefor.

1 Registration of Land Titles and Deeds, Narciso Pena, pg 562-563

1

of a family, may enter a homestead of not exceeding twelve

SEC. 103. Certificates of title pursuant to patents.

hectares of agricultural land of the public domain. The applicant

Whenever public land is by the Government alienated,

must have cultivated and improved at least one-fifth of the land

granted or conveyed to any person, the same shall be

continuously since the approval of the application and resided for at

brought forthwith under the operation of this Decree. It

least one year in the municipality in which the land is located, or in a

shall be the duty of the official issuing the instrument of

municipality adjacent to the same, and then, upon payment of the

alienation, grant, patent or conveyance in behalf of the

required fee, he shall be entitled to a patent.

government to cause such instrument to be filed with the

Registrar of Deeds of the province or city where the land

A corporation, regardless of the nature of its business, is expressly

lies, and to be there registered like other deeds and

forbidden by law to acquire or have any right, title, or interest in and

conveyance, whereupon a certificate of title shall be

to lands granted under free, homestead, or individual sale patent, or

entered as in other cases of registered land, and an

to any improvements thereon, where such lands are to be devoted

owners duplicate issued to the grantee. The deed, grant,

to purposes other than educational, religious, charitable, or

patent or instrument of conveyance from the Government

easement of way. Besides that restriction it is further required that

to the grantee shall not take effect as a conveyance or

the acquisition be subject to the consent of the grantee or patentee

bind the land, but shall operate only as a contract between

and the approval of the Secretary of Agriculture and Natural

the Government and the grantee, and as evidence of

Resources. A closed corporation whose stockholders are the

authority to the Registrar of Deeds to make registration. It

assignors themselves and their children, although the transfer will

is the act of registration that shall be the operative act to

not divest them of the beneficial use of and control over the

effect and convey the land, and in all cases, under this

property, is not an exception.

Decree, registration shall be made in the office of

Registrar of Deeds of the province or city where the land

However, under Section 121 of Commonwealth Act No. 141, as

lies. The fees for registration shall be paid by the grantee.

amended by Commonwealth Act No. 615, a corporation may

After due registration and issuance of the certificate of

acquire a homestead from a grantee with the consent of the latter

title, such land shall be deemed to be registered land to all

and the approval of the Secretary of Agriculture and Natural

intents and purposes under this Decree.

Resources, but solely for education, religious or charitable purposes

or for a right of way. However, where the land involved was granted
to the homesteader by virtue of an earlier legislation, such as Act
No. 2874, as amended by Act No. 3517, a corporation may acquire
such

homestead

even

for

commercial

purposes,

and

not

necessarily for industrial, educational or charitable purposes or for a

right of way. In other words, the acquisition by such corporation will

The procedure for the acquisition of a homestead settlement is an

administrative function and may be outlined in their chronological
order as follows:
(1) Filing of the application with the Director of Lands;

be governed by the particular law under which the homestead was

(2) Upon approval of said application, the Director of

granted.3

Lands shall authorize the applicant to take possession of

III.

Procedure for the Acquisition of Homestead

Settlements
The registration of the homestead grant or patent involving

the land upon payment of P5.00 as entry fee;

(3) Within six months from the approval of the
application,the applicant must begin cultivation of the land.

a parcel of disposable public land is governed by Section 122 of Act

He must cultivate at least one-fifth of the land for a period

No. 496, (Now Sec. 103 of Presidential Decree 1529):

of not less than one nor more than five years from the
date of the approval of the application;

LRC Consulta No. 84, Register of Deeds of Davao v. Dakudao &

Sons, Inc., April 11, 1956

(4) The applicant proves satisfactorily to the Director of

Lands that he has resided continuously for at least one
year in the municipality where the land is situated or in a

3 LRC Consulta No. 201,Manila Blue Printing Co. v. Register of

Deeds of Nueva Ecija, July 16, 1958

municipality adjacent thereto and has cultivated at least

one-fifth of the land. Before submitting his final proof

relative to the compliance of the law, he must give due

mere investigation report submitted by an official of the Bureau of

notice to the public of his intention to make such proof;

Lands who drew the sketch of the land showing the improvements
existing thereon is insufficient to establish the right of an applicant to

(5) The Director of Lands, satisfied that the applicant has

complied with the requisites of the law, orders, that the
land be surveyed by a surveyor of the Bureau of Lands,
and the corresponding plan thereof prepared;

the land. The findings of the trial court who tried the case and heard
the witnesses on this regard, are not to be disturbed on appeal,
unless there are substantial facts and circumstances which are
overlooked and which if properly considered might affect the result

(6) The Bureau of Lands prepares the homestead patent

of the case.

issued in the name of the Republic of the Philippines

under the signature of the President of the Philippines;
and

Right to Notice Before Cancellation of Entry

(7) Certified copy of the Patent is sent to the Registrar of

If, before the expiration of time provided by law for the making of

Deeds of the province where the land lies for the

final proof, it shall be proven, after due notice to the homesteader,

registration of the same. Thereupon, an original certificate

that the land entered is not subject to homestead entry or that the

is issued to the patentee in accordance with Section 122

homesteader had failed to comply with the provisions of the Public

of Act No. 496, in relation to the Public Land Act.

Land Act, the Director of Lands may cancel the entry. Section 16 of
Commonwealth Act No. 141 provides:

Section 14, Commonwealth Act No. 141 requires that the applicant
must have possessed and cultivated the land subject of the

SECTION 16. If at any time before the expiration of the

application. No application shall be issued if there is no cultivation of

period allowed by law for the making of final proof, it shall

at least one-fifth of the land. The law reads:

be proven to the satisfaction of the Director of Lands, after

due notice to the homesteader, that the land entered is

No certificate shall be given or patent issued for the land

under the law not subject to home-stead entry, or that the

applied for until at least one-fifth of the land has been

homesteader has actually changed his residence, or

improved and cultivated. The period within which the land

voluntarily abandoned the land for more than six months

shall be cultivated shall not be less than one nor more

at any one time during the years of residence and

than five years, from and after the date of the approval of

occupation herein required, or has otherwise failed to

the application. The application shall, within the said

comply with the requirements of this Act, the Director of

period, notify the Director of Lands as soon as he is ready

Lands may cancel the entry.

to acquire the title. If at the date of such notice, the

applicant shall prove to the satisfaction of the Director of
Lands, that he has resided continuously for at least one
year in the municipality in which the land is located, or in a
municipality adjacent to the same, and has cultivated at
least one-fifth of the land continuously since the approval
of the application, and shall make affidavit that no part of
said land has been alienated or encumbered, and that he
has complied with all the requirements of this Act, then,

In Ayson v. Republic of the Philippines6, a homestead entry was

cancelled by the Lands Department upon recommendation of the
lands inspector who investigated the case ex parte without giving
due notice to the homesteader or his heirs. The Supreme Court held
that such cancellation was null and void for being in contravention of
Section 16 of the Public Land Act.

upon the payment of five pesos, as final fee, he shall be

entitled to a patent.

IV.

Rights and Restrictions in Disposition of Homestead

Fact of Possession and Cultivation Must be Proved

In Quinsay vs. Intermediate Appellate Court5, the Supreme Court
held that the fact of possession and cultivation must be proved. A

4Noblejas, A., et al. 2007: Registration of Land Titles and Deeds.

Manila: Rex Book Store, pp.511-512

5 G.R. No. L-67935, March 18, 1991

6 G.R. No. L-6614, November 29, 1954
3

A vested right "is some right or interest in property which has

Philippine Legislature, to citizens of countries the laws of

become fixed and established and is no longer open to doubt or

which grant to citizens of the Philippine Islands the same

controversy." (Downs vs. Blount, 1912)

right to acquire, hold, lease, encumber, dispose of, or

alienate land, or permanent improvements thereon, or any

Where the right of a homesteader to a patent for land has become

interest therein, as to their own citizens, only in the

vested in a purchaser, the Government holds the legal title in trust

manner and to the extent specified in such laws, and while

for the purchaser until the patent is issued. (United States vs.

the same are in force, but not thereafter.

Freyberg, 1886)
Section 122. Any acquisition, conveyance, alienation,
The execution and delivery of the patent are the mere ministerial

transfer, or other contract made or executed in violation of

acts of the officer charged with that duty.

any of the provisions of Sections 116, 118, 119, 120 and

The following provisions of the Public Lands act provide for the
prohibition and alienation of land under Homestead and Free
Patent:

121 of this act shall be unlawful and null and void from its
execution and shall produce the effect of annulling and
cancelling the grant, title, patent, or permit originally
issued,

Section 116. Except in favor of the Government or any of

its branches, units or institutions, or legally constituted
banking corporations, lands acquired under the free
patent or homestead provisions shall not be subject to
encumbrance or alienation from the date of the approval
of the application and for a term of five years from and
after the date of issuance of the patent or grant, nor shall
they become liable to the satisfaction of any debt
contracted prior to the expiration of said period; but the
improvements or crops on the land may be mortgaged or
pledged

to

qualified

persons,

associations,

or

corporations. (As amended by Section 23 of Act No.

3517).

or

confirmed,

actually

or

presumptively, and cause the reversion of the property

and its improvements to the Government.
Section 122(A). The provisions of Sections 23, 24, 34, 57,
120 and 121, and any other provisions or provisions
restricting or tending to restrict the right of persons,
corporations, or associations to acquire, hold, lease,
encumber, dispose of, or alienate land in the Philippines,
or permanent improvements thereon, or any interest
therein, shall not be applied in cases in which the right to
acquire, hold or dispose of such land, permanent
improvements thereon or interests therein in the Philippine
Islands is recognized by existing treaties in favor of
citizens or subjects of foreign nations and corporations or

Section 119. Except with the consent of the grantee and

the approval of the Secretary of Agriculture and Natural
Resources,

recognized,

and

solely

for

commercial,

industrial,

educational, religious or charitable purposes or for a right

of way, no corporation, association, or partnership, may
acquire or have any right, title, interest, or property right
whatsoever to any land granted under the free patent,
homestead or individual sale provisions of this Act or to
any permanent improvement on such land. (As amended
by Section 24 of Act. No. 3517).
Section 120. No land originally acquired in any manner
under the provisions of this Act, nor any permanent
improvement on such land, shall be encumbered,
alienated, or transferred, except to persons, corporations,
associations, or partnerships who may acquire lands of
the public domain under this Act; to corporations
organized in the Philippine Islands authorized therefor by
their charters, and upon express authorization by the

associations organized and constituted by the same,

which right in so far as it exists under such treatise, shall
continue and subsist in the manner and to the extent
stipulated in said treaties, and only while these are in
force, but not thereafter.
Encumbrances has been defined as anything that impairs the use or
transfer of property, anything which constitutes a burden on the title,
a burden, charge or lien upon property. 7
The restriction on the enjoyment of property imposed by a contract
of lease sufficiently meets the definition of an encumbrance under
Section 118 of the Public Land Act because such contract impairs
the use of the property by the grantee during the term of the lease,
the granting of the patent can not enjoy the beneficial use of the
land leased. Even if only part of the property has been sold or
alienated within the prohibited period of five (5) years, such

7 Registration of Land Titles and Deeds, Narciso Pena, pg. 281

4

alienation is sufficient cause for the reversion of the whole estate to

Under Act No. 926, which is the first Public Land Act passed by the

the state.8

Philippine Commission on October 7, 1903; there is no prohibition

against the disposition of a homestead within five years from the

From the date of the approval of the application and for a term of

issuance of the patent. Hence, where vested rights in a homestead

five years from and after the date of issuance of the patent or grant,

were acquired under said Act No. 926 the sale of such land within

lands acquired under free patent or homestead cannot be subject to

five years from the issuance of the homestead patent is valid and

encumbrances or alienation, nor shall they become liable to the

binding.

satisfaction of any debt contracted prior to the expiration of said

period, except in favor of the Government or any of its branches,

Neither will the prohibition within the same period of five years apply

units or institutions. But in the case of Ybaez v. Intermediate

to an agreement for the partition of a homestead inasmuch as a

Appellate Court , the improvements or crops on the land may be

partition is not a conveyance or an alienation in the legal

mortgaged or pledged to qualified persons, associations, or

contemplation and does not run counter to the pertinent provision of

corporations.

the Public Land Law.

As to the land, where a debt was contracted within the said period,

After five years from the issuance of the patent and within twenty-

even if it was agreed that such debt shall be payable after five

five years after the issuance of title, no alienation, transfer or

years, the homestead cannot be made liable to the satisfaction of

conveyance of any homestead may be made without the approval

such debt. Neither may it be validly agreed that in case of

of the Secretary of Natural Resources, which approval cannot be

nonpayment of the loan so contracted, the debtor would execute a

denied except on constitutional and legal grounds. However, the

deed selling or assigning the land to the creditor for the same

sale of a

amount in payment of the debt after the five-year period. For this

homestead before the expiration of said period of twenty-five years

may be considered practically a sale of the homestead to satisfy a

is not rendered null and void by the failure to obtain the required

debt contracted within the five-year period, which is the very event

approval from the Secretary. The required approval may be

which the law seeks to prevent. And it is immaterial whether the

regarded as directory; hence, in a case of necessity it may be

satisfaction of the debt be made either by a voluntary sale or

applied for even after the sale had been consummated.11

through judicial proceeding as when the property is levied upon and

sold at public auction because the spirit of the law may be defeated

However, alienations or encumbrances made in favor of the

either way.

government or of any of its branches or legally constituted banking

corporations are exempted from the prohibition that the land granted

Under the provision of Section 5 of Republic Act 720, otherwise

under a homestead title cannot be encumbered or alienated within

known as the Rural Bank Act, as amended by Republic Act 5939, in

the period of five years from the date of the issuance of the patent.

the granting of loans by such rural banks primarily for the purpose of

The Philippine National Bank being a government-controlled

meeting normal credit needs of any small farmer or farm family

banking corporation, the execution of a judgment in its favor against

owning or cultivating, in the aggregate, not more than fifty hectares

a homestead is, therefore, valid and legal.12

of land dedicated to agricultural production, as well as the normal

credit needs of cooperatives and small merchants, the latter whose
capital investment does not exceed P25,000.00, homestead or free
patent lands, even pending issuance of titles but already approved,
may be offered and accepted, as security, provided that when the
corresponding titles are issued, the same shall be delivered to the

V.

Alienation, Mortgage, Redemption, Expropriation

Register of Deeds of the province where such lands are situated for
the annotation of encumbrance.10

10 Registration of Land Titles and Deeds, Narciso Pena, pg. 383

8 Republic vs. CA, 281 SCRA 639

11 Registration of Land Titles and Deeds, Narciso Pena, pg. 576-578

9 Ybaez v. Intermediate Appellate Court, 194 SCRA 743.

12 Philippine National Bank v. Espinosa, 66 Phil. 716.

5

Alienation

Redemption is the way for the owner to retrieve his land that has
been mortgaged or pledged. It is done through a payment of the

Alienation is defined as the capacity for a piece of property or a

property right to be sold or otherwise be transferred from one party
to another. Although property is generally deemed to be alienable,

debt owed or a fulfillment of an obligation. In other words, he right of

redemption is the legal right of a mortgagor who owns a real estate
to reclaim his or her property.

it may also be the subject of alienation. In relation to homestead,

Section 118 of Republic Act (R.A.) No. 141 states that:

The provision on reconveyance is stated in Section 119 of R.A. No.

141 that says: Every conveyance of land acquired under the free

Except in favor of the Government or any of its

branches, units, or institutions, lands acquired
under free patent of homestead provisions shall
both subject to encumbrance or alienation from
the date of the approval of the application and
for a term of five years from and after the date of
issuance of the patent of grant, nor shall they
become liable to the satisfaction of any debt
contracted prior to the expiration of aid period,
but the improvements or crops on the land may
be mortgaged or pledged to qualified persons,
associations, or corporations.
No alienation, transfer, or conveyance of any
homestead after five years and before twentyfive years after issuance of title shall be valid
without the approval of the Secretary of
Agriculture and Commerce, which approval shall
not be denied except on constitutional and legal
grounds.
Another important provision regarding alienation of homestead
grants is stated in the last sentence of Section 122 (2) of R.A. 141

patent or homestead provisions, when proper, shall be subject to

repurchase by the applicant, his widow, or legal heirs, within a
period of five years from the date of the conveyance. Further, in the
case of Manuel v. PNB, et.al. the court ruled that the land acquired
through the free patent program can no longer be reconveyed
because the action was brought only after the lapse of 13 years. It
must be noted that the debtor, his successors-in-interest, or any
judicial creditor or a judgment creditor may redeem the property at
any time within the term of 1 year from the date of the sale and is
governed by the Rules of Court. When the property is redeemed
after the purchaser has been given the possession, the redeemer is
entitled to deduct from the price of redemption any rentals that the
purchaser may have collected in case the property of any part of it
was rented. If the property was used as his own dwelling, it being
town property, or used it gainfully, it being rural property, the
redeemer may deduct from the price an interest of 1% per month
under Section 9 of Act No. 3135.
In case of judicial foreclosure, the redemption period is within 1
year. But for extrajudicial foreclosure, the redemption period is
within 90 days from the sale or registration.
A Homesteader is not barred by pari delicto

which states: Any transfer, assignment, or lease made in violation

hereof, shall be null and void.

Where a homestead was illegally sold in violation of the homestead

law, the principle of in pari delicto is not applicable. Reason for the

A homestead grant is a grant given by the State to qualified persons

who registered for a free patent application by the Government. But,
any violation of R.A. No. 141 especially to the prescribed periods of
5 years and 25 years shall be followed. Otherwise, the land given

rule is that the policy of the law is to give land to a family for home
and cultivation and the law allows the homesteader to reacquire the
land even if it has been sold; hence, the right may not be
waived.

shall be forfeited and it will go back to the Government. Thus, it was

held in the case of Republic of the Philippines v. Court of Appeals

In the case of Angeles, et al. v. Court of Appeals, et al. 13, the sale of

(G.R. No. 100709. November 14, 1997) that the petitioner, Morato

the homestead by the deceased homesteader within five years from

violated the prohibitory period of five years when he leased the land

the issuance of the patent was null and void and his heirs have the

to Nenita Co and Atonio Quilatan which now cancelled the free

right to recover the homestead illegally disposed of. The sale being

patent given to her and now reverts back to the State. Alienation is

void, the action to recover the homestead does not prescribe

prohibited within the first 5 years because of the notion that the land

because mere lapse of time cannot give efficacy to contracts that

is to help her and her family as well as her heirs in the future.

are null and void and inexistent.63 In fact, the vendor never lost his
title or ownership over the homestead, and for that reason there is

Redemption

13 Angeles, et al. v. Court of Appeals, et al., 102 Phil. 1006

6

no need for him to repurchase the same from the vendee, nor for

Sec. 122. No land originally acquired in any manner

the latter to execute a deed of reconveyance in his favor. The case

under the provisions of this Act, nor any permanent

stands actually for mutual restitution, incident to the nullity of the

improvement on such land, shall be encumbered,

conveyance. However, that the alienation of a homestead, whether

alienated or transferred, except to persons, corporations,

in whole or in part, within the prohibitive period is a sufficient cause

association, or partnerships who may acquire lands of the

for reversion to the State of the whole grant.

14

public domain under this Act or to corporations organized

in the Philippines authorized therefore by their charters.
Except in cases of hereditary successions, no land or any

Expropriation and Mortgage

portion thereof originally acquired under the free patent,

COMMONWEALTH ACT NO. 456 - AN ACT TO AMEND

homestead, or individual sale provisions of this Act, or any

SECTIONS NINETEEN, TWENTY, AND ONE HUNDRED AND

permanent

EIGHTEEN

ONE

transferred or assigned to any individual, nor shall such

HUNDRED FORTY-ONE, COMMONLY KNOWN AS THE PUBLIC

land or any permanent improvement thereon be leased to

LAND ACT

such individual, when the area of said land, added to that

OF

COMMONWEALTH ACT NUMBERED

improvement

on

such

land,

shall

be

of his own, shall exceed one hundred and forty-four

"Section 118. Except in favor of the Government or any of
its branches, units, or institutions, lands acquired under

hectares. Any transfer, assignment, or lease made in

violation hereto shall be null and void.

free patent or homestead provisions shall not be subject

to encumbrance or alienation from the date of the

As a general rule, lands acquired under free patent or homestead

approval of the application and for a term of five years

provisions are prohibited to be subject to any form of encumbrance

from and after the date of issuance of the patent or grant,

or alienation from the date of approval of the application and for a

nor shall they become liable to the satisfaction of any debt

term of five years from and after the issuance of the patent or grant,

contracted prior to the expiration of said period, but the

nor become liable to the satisfaction of any debt contracted prior to

improvements or crops on the land may be mortgaged or

the expiration of said period. However, the improvements or crops

pledged

on the land may be mortgaged or pledged to qualified persons,

to

qualified

persons,

associations,

or

corporations.

associations, or corporations.

The approval of secretary on the

other hand is merely directory, its absence doesnt invalidate any

"No alienation, transfer, or conveyance of any homestead
after five years and before twenty-five years after

alienation, transfer or conveyance of the homestead after 5 years

and before the 25- year period.

issuance of title shall be valid without the approval of the

Secretary of Agriculture and Commerce, which approval

Such encumbrance results in the cancellation of the grant and the

shall not be denied except on constitutional and legal

reversion of the land to the public domain. Encumbrance has been

grounds."

defined as anything that impairs the use or transfer of property;

anything which constitutes a burden on the title; a burden or charge

Sec. 121. Except with the consent of the grantee and the
approval of the Secretary of Agriculture and Natural
Resources, and solely for educational, religious, or
charitable purposes or for a right of way, no corporation,
association, or partnership may acquire or have any right,
title, interest, or property right whatsoever to any land
granted under the free patent, homestead, or individual
sale provisions of this Act or to any permanent
improvement on such land. (As amended by Com. Act
No. 615, approved May 5, 1941)

14 Rep. of the Philippines vs. Garcia, 105 Phil. 826

upon property; a claim or lien upon property. It may be a legal claim

on an estate for the discharge of which the estate is liable; an
embarrassment of the estate or property so that it cannot be
disposed of without being subject to it; an estate, interest, or right in
lands, diminishing their value to the general owner; a liability resting
upon an estate. (Republic v. CA, et. al., November 14, 1997)
The purpose of the prohibition or policy of the law is to conserve the
land which a grantee has acquired under the Public Land Act for
him and his heirs, and to give the patentee a place where to live
with his family so he may become a happy citizen and useful
member of the society. Their object is to provide a home for each
citizen of the Government, where his family may shelter and live
beyond the reach of financial misfortune, and to inculcate in

individuals those feelings of independence which are essential to

was sold to other parties, the private respondents could still have

the maintenance of free institutions. Furthermore, the state itself is

repurchased the same from the subsequent vendees. But since the

concerned that the citizens shall not be divested of a means of

land was expropriated by the Government, and the private

support, and reduced to pauperism. (Cook and Burgwall vs.

respondents could no longer repurchase the same, reason, justice

McChristian, 4 Cal., 24; Franklin vs. Coffee, 70 Am. Dec., 292;

and equity demand that they receive the compensation therefore

Richardson vs. Woodward, 104 Fed. Rep., 873; 2l Cyc., 459).

less the amount adverted to above, for such compensation merely

substitutes for the land they are entitled to. Hence, the rules on

In Pascua vs. Talens, the Court reiterated that the homestead laws
were designed to distribute disposable agricultural lots of the State
to land-destitute citizens for their home and cultivation. Pursuant to

redemption in the case of an extrajudicial foreclosure of land

acquired under free patent or homestead statutes may be
summarized as follows:

such benevolent intention the State prohibits the sale or

encumbrance of the homestead (Section 116) within five years after

If the land is mortgaged to a rural bank under R.A. No.

the grant of the patent. After that five-year period the law impliedly

720, as amended, the mortgagor may redeem the

permits alienation of the homestead; but in line with the primordial

property within two (2) years from the date of foreclosure

purpose to favor the homesteader and his family the statute

or from the registration of the sheriff's certificate of sale at

provides that such alienation or conveyance (Section 117) shall be

such foreclosure if the property is not covered or is

subject to the right of repurchase by the homesteader, his widow or

covered, respectively, by a Torrens title.

heirs within five years. This Section 117 is undoubtedly a

If the mortgagor fails to exercise such right, he or his heirs

complement of Section 116. It aims to preserve and keep in the

may still repurchase the property within five (5) years from

family of the homesteader that portion of public land which the State

the expiration of the two (2) year redemption period

had gratuitously given to him. It would, therefore, be in keeping with

pursuant to Section 119 of the Public Land Act (C.A. No.

this fundamental idea to hold, as we hold, that the right to

141).

repurchase exists not only when the original homesteader makes

the conveyance, but also when it is made by his widows or heirs.
This construction is clearly deducible from the terms of the statute.
As an exemption to the proviso, except in favor of the Government
or any of its branches, units, or institutions pertains to the States
inherent power of eminent domain as a superior right of the State to

RELEVANT JURISPRUDENCE

acquire private property whether registered or not for public use

upon

payment

of

just

compensation,

through

expropriation

ALEJANDRO DINAYUG and ANA DINA YUG, Petitioners,

proceedings.

vs.

Imperium and Dominuum. Imperium pertains to the government

authority possessed by the State, which is appropriately embraced
in the concept of sovereignty; and Dominuum pertains to the

EUGENIO UGADDAN, NORBERTO UGADDAN, PEDRO

UGADDAN, ANGELINA UGADDAN, TERESO UGADDAN,
DOMINGA UGADDAN, GERONIMA UGADDAN, and BASILIA
LACAMBRA, Respondents.

capacity to own and acquire property; foundation of the theory of

G.R. No. 181623

Regalian doctrine.
In the case of RURAL BANK OF DAVAO CITY, INC. v. COURT OF
APPEALS

and

GABRIEL

ABELLANO

and

FRANCISCO

December 5, 2012

FACTS:

SEQUITAN, the expropriation case begun before the foreclosure

At the crux of this controversy are two parcels of land located in

sale and was brought against the private respondents, among other

Barangay Libag, Tuguegarao, Cagayan registered under the name

parties. The court's order for the payment of compensation was

of Gerardo Ugaddan, husband of respondent Basilia Lacambra and

entered and the compliance thereof by the NHA was made within

father of the other respondents Eugenio, Norberto, Pedro, Angelina,

the private respondents' 5-year repurchase period. Although the

Tereso, Dominga, and Geronima, all bearing the surname Ugaddan.

petitioner had a Transfer Certificate of Title over the lot at the time of
payment, its right thereto was subject to the private respondents'

Gerardo acquired title over the subject properties through the grant

right to repurchase. Instead of having been expropriated, the land

of Homestead Patent No. V-6269 in his favor on January 12, 1951.

Upon Gerardos death, respondents discovered that the certificate

Yes. To reiterate, Section 118 of the Public Land Act, as amended,

of title had been cancelled. The records of the Registry of Deeds

reads that "except in favor of the Government or any of its

show that Gerardo, with the consent of his wife Basilia, sold the

branches, units, or institutions, or legally constituted banking

subject properties to Juan Binayug. As a result of the sale,

corporations, lands acquired under free patent or homestead

Certificate of Title in Gerardos name was cancelled and Transfer

provisions shall not be subject to encumbrance or alienation from

Certificate of Title in Juans name was issued. Juan was the father

the date of the approval of the application and for a term of five

of petitioner Alejandro Binayug and the subject properties passed

years from and after the date of issuance of the patent or grant x

on to him and his wife Ana Ugaddan Binayug upon Juans death.

xx." The provisions of law are clear and explicit. A contract which
purports to alienate, transfer, convey, or encumber any homestead

Respondents averred that the purported sale between Gerardo and

Juan was prohibited under Commonwealth Act No. 141, otherwise
known as the Public Land Act, as amended; and that the Absolute

within the prohibitory period of five years from the date of the
issuance of the patent is void from its execution. In a number of
cases, this Court has held that such provision is mandatory.

Deed of Sale dated July 10, 1951 between Gerardo (with Basilias
consent) and Juan was forged.

In the present case, it is settled that Homestead Patent No. V-6269

was issued to Gerardo on January 12, 1951 and the Absolute Deed

The RTC found that petitioners have been in possession of the

subject properties for some time now. Petitioners were able to
support their testimonies with tax declarations and official receipts,
proving that they and their predecessor-in-interest have been
paying real property tax on the subject properties.
The RTC then declared the Absolute Deed of Sale dated July 10,
1951 as null and void for the following reasons:
First, as proven by the testimonies of [respondents]
witnesses, the marital consent was not obtained by
Gerardo. Second, Section 118 of the Public Land Law,
amended by Commonwealth Act No. 456.

of Sale between Gerardo and Juan was executed on July 10, 1951,
after a lapse of only six months. Irrefragably, the alienation of the
subject properties took place within the five-year prohibitory period
under Section 118 of the Public Land Act, as amended; and as
such, the sale by Gerardo to Juan is null and void right from the
very start.
As a void contract, the Absolute Deed of Sale dated July 10, 1951
produces no legal effect whatsoever in accordance with the
principle "quod nullum est nullum producit effectum," 2 thus, it could
not have transferred title to the subject properties from Gerardo to
Juan and there could be no basis for the issuance of TCT No. T106394 in Juans name. A void contract is also not susceptible of

A homestead patent cannot be alienated or encumbered within five

ratification, and the action for the declaration of the absolute nullity

(5) years from the approval of application except in favor of the

of such a contract is imprescriptible.

government or any of its branches or institutions. Where a

homestead was sold during the prohibited period, even if the sale is
approved by the Director of Lands subsequently after five (5) years,
the approval will not give it any valid curative effect. Such sale is
illegal, inexistent, and null and void ab initio. The action to declare
the existence of such contract will not prescribe. As a matter of fact,
the vendor never lost his title or ownership over the homestead, and
there is no need for him or his heirs to repurchase the same from
the vendee, or for the latter to execute a deed of reconveyance. Of

Jurisprudence, therefore, supports the return of the subject

properties to respondents as Gerardos heirs following the
declaration that the Absolute Deed of Sale dated July 10, 1951
between Gerardo and Juan is void for being in violation of Section
118 of the Public Land Act, as amended. That the subject properties
should revert to the State under Section 124 of the Public Land Act,
as amended, is a non-issue, the State not even being a party
herein.

course, the purchaser may recover the price which he has paid, and
where the homesteader vendor died, the recovery may be pursued
as a claim filed against his estate in the corresponding proceeding.
ISSUE:
Whether or not Section 118 of the Public Land Act is applicable to
the case.

HEIRS OF MAXIMO LABANON, represented by ALICIA

LABANON CAEDO and the PROVINCIAL ASSESSOR OF
COTABATO, Petitioners,

HELD:

vs.

HEIRS OF CONSTANCIO LABANON, represented by ALBERTO

MAKILANG, Respondents.
G.R. No. 160711

1. Whether

or

of MAXIMO LABANON be

August 14, 2004

not

the OCT

now

issued

considered

the name

indefeasible

and

conclusive; and
2. Whether

FACTS:

or

not

the Trust

Agreement allegedly made

by Constancio Labanon and Maximo Labanon prescribed.

Constancio Labanon settled upon a piece of alienable and
disposable public agricultural land situated in Kidapawan, Cotabato.
He cultivated the said lot and introduced permanent improvements.
Constancio asked his brother, Maximo, who was better educated
to file a public land application under the express agreement that
they will divide the said lot as soon as it would be feasible for them
to do so.

HELD:
1.

No. Section 32 of PD 1529 does not totally deprive a party

of any remedy to recover the property fraudulently registered in the

name of another. It merely precludes the reopening of the
registration proceedings for titles covered by the Torrens System,

During the time of the application it was Constancio who continued

to cultivate the said lot. The Homestead Application was approved
and an Original Certificate of Title over said lot was issued in favor
of Maximo Labanon. Maximo Labanon executed a document
denominated as Assignment of Rights and Ownership to
safeguard the ownership and interest of his brother Constancio

but does not foreclose other remedies for the reconveyance of the
property to its rightful owner. While it is true that Section 32 of PD
1529

provides

that

the decree of registration

becomes incontrovertible after a year, it does not altogether deprive

an aggrieved party of a remedy in law. The acceptability of
the Torrens System would be impaired, if it is utilized to perpetuate
fraud against the real owners. The action for Recovery of

Labanon.

Ownership before the RTC is indeed the appropriate remedy.

Later on, Maximo executed a sworn statement reiterating his desire
that his elder brother, Constancio, his heirs and assigns shall own
the eastern portion of the lot. After the death of Constancio, his heirs
executed an extra-judicial settlement of estate with simultaneous
sale over the aforesaid eastern portion of the lot in favor of Alberto
Makilang, the husband of Visitacion Labanon, one of the children of

2.

No. Maximo Labanon maintained the title over the

property while acknowledging the true ownership of Constancio

Labanon over the eastern portion of the land. The existence of an
express trust cannot be doubted nor disputed. In the case at bar,
Maximo never repudiated the express trust instituted between him
and Constancio. And after Maximos death, the trust could no longer

Constancio.

be

renounced;

thus, respondents right to enforce

Subsequently, the parcel of land was declared for taxation purposes

the trust agreement can

no

in the name of Alberto. The defendants heirs of Maximo caused to

longer be restricted nor prejudiced by prescription.

be

cancelled

from

the

records

of the defendant Provincial Assessor of Cotabato the aforesaid taxd

eclaration and the latter, without first verifying the legality of the
basis

for

said cancellation,

of Constancio

demanded the

cancelled
owners

the

same. The

copy of the

heirs

certificate

of title covering the aforesaid Lot to be surrendered to the Register

of Deeds.

In addition, petitioners can no longer question the validity

of the positive declaration of Maximo Labanon in the Assignment of
Rights and Ownership in favour of the late Constanco Labanon, as
the agreement was not impugned during the formers lifetime and
their cognition of his brothers rights over the eastern portion of the
lot was further affirmed and confirmed in the subsequent Sworn
Statement.

ISSUES:

10