Powers of Attorney

Sec. 64 Power of Attorney

Section 64. Power of attorney. Any person may, by power of attorney, convey or otherwise deal with
registered land and the same shall be registered with the Register of Deeds of the province or city where
the land lies. Any instrument revoking such power of attorney shall be registered in like manner.

1. Agency to sell land

Special power of attorney refers to a clear mandate specifically authorizing the performance of an act
and must therefore be distinguished from an agency couched in general terms.

An agency couched in general terms comprise only acts of administration (SPA more than one year lease
property if otherwise administration)

When a sale of a piece of land or any interest therein is through an agent the authority of the latter shall
be in writing otherwise the sale shall be void.

Special power of attorney is a continuing one and absent a valid revocation duly furnished to the
mortgagee, the same continues to have force and effect as against third persons who had no knowledge
of such lack of authority

As far as third persons is concerned, an act is deemed to have been performed within the scope of the
agent’s authority if such is within the terms of power of attorney as written.

Registration of power of attorney

Sec 64 states that any person may, by power of attorney, convey or otherwise deal with registered land
and the same should be registered with the Register of Deeds of the province or city where the land lies.
Any instrument revoking such power of attorney shall be registered in like manner.

Sec.65 Trust in registered land

If a deed or other instrument is filed in order to transfer registered land in trust, or upon any equitable
condition or limitation expressed therein, or to create or declare a trust or other equitable interests in
such land without transfer, the particulars of the trust, condition, limitation or other equitable interest
shall not be entered on the certificate; but only a memorandum thereof shall be entered by the words
"in trust", or "upon condition", or other apt words, and by a reference by number to the instrument
authorizing or creating the same. A similar memorandum shall be made upon the original instrument
creating or declaring the trust or other equitable interest with a reference by number to the certificate
of title to which it relates and to the volume and page in the registration book in which it is registered.

Trust is a fiduciary relationship with respect to property which involves the existence of equitable duties
imposed upon the holder of the title to the property to deal with it for the benefit of another.
Parties

Trustor- a person who establishes a trust is called the trustor

Trustee- one in whom confidence is reposed as regards property for the benefit of another

Beneficiary- the person for whose benefit the trust has been created

Trust either express or implied

Express if created by the intention of the parties. Implied if trust come into being by operation of law.
Latter is constructive or resulting trust.

Constructive Trust- is imposed where a person holding title to property is subject to an equitable duty to
convey it to another on the ground that he would be unjustly enriched if he were permitted to retain it

Duty to convey the property arises because it was acquired through fraud, duress, undue influence or
mistake or through breach of fiduciary duty, or through the wrongful disposition of another’s property.

Resulting Trust- arises where a person makes or causes to be made a disposition of property under
circumstances which raise an inference that he does not intend that the person taking or holding the
property should have beneficial interest with the property

It arises where and only where such may be reasonably presumed to be the intention of the parties as
determined from the facts and circumstances existing at the time of transaction ex (Art 1448 Art 1453)

Co-ownership is a form of trust

It is a form of trust and every co owner is a trustee for another. In co ownership the relationship of each
co owner to the other co owners is fiduciary in character and in attribute

Whether established by law or by agreement of the co-owners, the property or thing held pro-indivisio
is impressed with a fiducial in nature that each co-owner becomes a trustee for the benefit of his co-
owners and may not do any act prejudicial to the interest of his co-owners

Laches may bar an action to enforce the trust

As a rule implied resulting trusts do not prescribe except when the trustee repudiates the trusts. Further
the action to reconvey does not prescribe so long as the property stands in the name of the trustee

But in Mejia v Gampona the court held that while a person may not acquire title to a registered property
through continuing adverse possession in derogation of title of the original registered owner
nevertheless such owner or his heirs by their inaction and neglect over a long period of time may lose
the right over the possession of the property and the title thereto from the defendants

No particular form required for the creation of an express trust; entry of memorandum on certificate
Under the law on Trusts, it is not necessary that a document expressly states and provides for the
express trust, for no particular words are required for the creation of an express trust, it being sufficient
that a trust is clearly intended.

Sec. 66 Trust with power of sale,etc how expressed

If the instrument creating or declaring a trust or other equitable interest contains an express power to
sell, mortgage or deal with the land in any manner, such power shall be stated in the certificate of title
by the words "with power to sell", or "power to mortgage", or by apt words of description in case of
other powers. No instrument which transfers, mortgages or in any way deals with registered land in
trust shall be registered, unless the enabling power thereto is expressly conferred in the trust
instrument, or unless a final judgment or order of a court of competent jurisdiction has construed the
instrument in favor of the power, in which case a certified copy of such judgment or order may be
registered.

Trusts, how expressed and registered

If the instrument creating or declaring a trust or other equitable interest contains an express power to
sell mortgage or deal with the land in any manner such power shall be stated in the certificate of title by
the words “with power to sell” or “power to mortgage” or by apt words of description in case of other
powers

Sec. 67 Judicial Appointment of new trustee

If a new trustee of registered land is appointed by a court of competent jurisdiction, a new certificate
may be issued to him upon presentation to the Register of Deeds of a certified copy of the order or
judicial appointment and the surrender for cancellation of the duplicate certificate

Appointment of the trustee

A trustee necessary to carry into effect the provisions of a will or written instrument shall be appointed
by the RTC in which the will was allowed. The executor or administrator or the person appointed as
trustee under the will or written instrument shall file petition for the appointment of a trustee in
compliance with the will of the testator.

Sec. 68 Implied trusts, how established

Whoever claims an interest in registered land by reason of any implied or constructive trust shall file for
registration with the Register of Deeds a sworn statement thereof containing a description of the land,
the name of the registered owner and a reference to the number of the certificate of title. Such claim
shall not affect the title of a purchaser for value and in good faith before its registration

Registration of claim based on implied trust

For the protection of a person claiming an interest in registered land by reason of any implied or
constructive trust, he should file with the Register of Deeds a sworn statement with description of the
land, name of registered owner and a reference to the number of the certificate of title. Such claim will
not affect the right of a purchaser for value and in good faith prior to such registration.

Juan Tong v. Go Tiat Kun (Reyes)

FACTS: The petitioners are nine of the ten children of Spouses Juan Tong. Sometime in 1957, Juan Tong
purchased Lot 998 to be used for the family’s lumber business called “Juan Tong Lumber.” However,
since he was a Chinese citizen and was disqualified from acquiring the said lot, the title to the property
will be registered in the name of his eldest son, Luis, Sr., who at that time was already of age and was
the only Filipino citizen among his children. Accordingly, a TCT was issued in the name of Luis, Sr.

Meanwhile, Luis, Sr. died and the respondents, being his surviving heirs, claimed ownership over Lot 998
by succession, alleging that no trust agreement exists and it was Luis, Sr. who bought Lot 998.

Subsequently, the respondents agreed to subdivide Lot 998 (A&B), thus, two new titles were issued and
was sold Lot 998-B to Fine Rock Development Corporation (FRDC), which in turn sold the same to
Visayas Goodwill Credit Corporation (VGCC). It was only after the petitioners received a letter from
VGCC, on August 31, 1995, that they discovered about the breach of the trust agreement committed by
the respondents.

To protect their rights, the petitioners filed an action for Annulment of Sales, Titles, Reconveyance and
Damages of Lot 998-B docketed as Civil Case No. 22730 against Luis, Jr., FRDC and VGCC.

After trial, the court a quo rendered its judgment in favor of the petitioners, ruling that there was an
implied resulting trust between Juan Tong, Luis, Sr.

The CA reveresed the decision and also ruled that even granting that an implied resulting trust was
created; the petitioners are still barred by prescription because the said resulting trust was terminated
upon the death of Luis, Sr. and was then converted into a constructive trust.[11] Since in an action for
reconveyance based on a constructive trust prescribes in ten years from the issuance of the Torrens title
over the property, counting from the death of Luis, Sr. in 1981, the action has already prescribed.

ISSUE: Whether or not there was a constructive trust, hence the action for reconveyance has prescribed

HELD: It is well-settled that title to property does not vest ownership but it is a mere proof that such
property has been registered. And, the fact that the petitioners are in possession of all the tax receipts
and tax declarations of Lot 998 all the more amplify their claim of ownership over Lot 998-A. Although
these tax declarations or realty tax payments of property are not conclusive evidence of ownership,
nevertheless, they are good indicia of possession in the concept of owner, for no one in his right mind
would be paying taxes for a property that is not in his actual or at least constructive possession. Such
realty tax payments constitute proof that the holder has a claim of title over the property. Therefore,
the action for reconveyance of Lot 998-A, which forms part of Lot 998, is imprescriptible and the
petitioners are not estopped from claiming ownership thereof.
A review of the records shows an intention to create a trust between the parties. Although Lot 998 was
titled in the name of Luis, Sr., the circumstances surrounding the acquisition of the subject property
eloquently speak of the intent that the equitable or beneficial ownership of the property should belong
to the Juan Tong family.

First, Juan Tong had the financial means to purchase the property for ₱55,000.00. On the other hand,
respondents failed to present a single witness to corroborate their claim that Luis, Sr. bought the
property with his own money since at that time, Luis Sr., was merely working for his father where he
received a monthly salary of ₱200.00 with free board and lodging.

Second, the possession of Lot 998 had always been with the petitioners. The property was physically
possessed by Juan Tong and was used as stockyard for their lumber business before it was acquired, and
even after it was acquired. In fact, the lot remains to be the stockyard of the family lumber business
until this very day.

Third, from the time it was registered in the name of Luis, Sr. in 1957, Lot 998 remained undivided and
untouched by the respondents. It was only after the death of Luis, Sr. that the respondents claimed
ownership over Lot 998 and subdivided it into two lots, Lot 998-A and Lot 998-B.

Fourth, respondent Leon admitted that up to the time of his father’s death, (1) Lot 998 is in the
possession of the petitioners, (2) they resided in the tenement in the front part of Juan Tong’s
compound, (3) Luis Sr. never sent any letter or communication to the petitioners claiming ownership of
Lot 998, and (4) he and his mother have a residence at Ledesco Village, La Paz, Iloilo City while his
brother and sisters also have their own residences.

Fifth, the real property taxes on Lot 998 were paid not by Luis Sr. but by his father Juan Tong and the
Juan Tong Lumber, Inc., from 1966 up to early 2008 as evidenced by the following: a) the letter of
assessment sent by the City Treasurer of Iloilo, naming Juan Tong as the owner of Lot 998; and b) the
receipts of real property taxes paid by Juan Tong Lumber, and later by Juan Tong Lumber, Inc., from
1997 to 2008. While some of the tax receipts were in the name of Luis Sr., the fact that the petitioners
were in possession of the originals thereof established that the petitioners, the Juan Tong Lumber, Inc.,
or the late Juan Tong paid for the taxes. The respondents did not try to explain the petitioners’
possession of the realty property tax receipts in the name of Luis Sr.