LAND TITLES

Notes of NDBalsicas – Midterms & Finals

VOLUNTARY DEALINGS w/ REGISTERED LANDS

What Operates to CONVEY or AFFECT Registered Lands
 The ACT of REGISTRATION – operates to Convey or Affect Registered Lands
o Will NOT Effect as a Conveyance or Bind a registered land –
o Deed, Mortgage, Lease or Other Voluntary Instruments
 Exception – a WILL purporting to convey or affect reg land
 Effect of Deed,... –
 Only serves as Evidence of CONTRACT between the parties, And
 Serves as Evidence of Authority for the Register of Deeds to make
registration
o ONLY the ACT of REGISTRATION is the Operative Act to Convey or Affect the land as far as 3rd
Persons are concerned
o Registration shall be made at the OFFICE of the Register of Deeds of city / prov where land lies
 Effect of Registration – serves as CONSTRUCTIVE NOTICE to the Whole World
 What can be Registered –
o Conveyance
o Mortgage
o Lease
o Lien
o Attachment
o Order
o Judgment
o Levy on Execution
o Instrument or Entry affecting registered land
 Effect of registration –
o Serves as Constructive Notice to ALL PERSONS from the time of such Registering, Filing
or Entering
 How Registration is Made by the Register of Deeds –
o Uses ONLY 1 Docket
o Docket is Numbered CONSECUTIVELY

Practical Applications of the Law

 Registration Affects the Rights of Parties –
 In cases of 2 transactions affecting the land (i.e. pacto de retro sale & lien by attachment) –
o If Lien is Registered AHEAD of the Sale – the Rights acquired by the Buyer shall be
SUBJECTED to the Rights of the Attaching Party –
 Right of Buyer CANNOT be ENFORCED vs the land UNTIL the Rights of the
Attaching Party has been Fully Satisfied
 GEN RULES –
 A Purchaser in GOOD FAITH Acquires GOOD Title vs ALL Transferees whose Right is NOT
RECORDED in the Register of Deeds at the Time of the Sale
 A Purchaser who buys from Pax who is NOT the Registered Owner of the land –
o Purchaser is deemed NOT in GOOD FAITH
o EXCEPTION –
 If Seller who was Not the Owner at the TIME of the SALE, subsequently Acquired
VALID Title to the land
 Acquired VALID Title is DEEMED Transferred to the Buyer
 Instruments executed by a Landowner purporting to Transfer or Encumber the land
OPERATES Only as EVIDENCE of Auth to the Register of Deeds to effect registration

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 o It is the Operative ACT of REGISTRATION that Conveys and Effect the Land

Process of Registration
 Issuance of NEW Certificate of Title –
 Made upon Any TRANSFER of reg land w/c DIVEST the land from its Owner
 Annotations on OCT / TCTs –
 Made upon Registration of Any Interest in the land LESS THAN an estate in Fee Simple –
o Registered by Filing w/ Reg of Deeds the INSTRUMENT Creating / Transfering / Claiming
such Interests
o Reg of Deeds makes a Brief Memorandum on OCT / TCT & Signs such entry
o Similar ENTRY is Made on Owner’s Duplicate
 Cancellation or Extinguishment of such interest is Registered in Like Manner

Entry on Day Book NOT SUFFICIENT as Registration

 Entry on Day Book is NOT SUFFICIENT to Accomplish Registration –
 Registration is NOT COMPLETE Until a Memorandum of such Document is MADE on the TCT
 Rationale of Rule –
o Will render Sec 54 of PD 1529 nugatory
o Will DESTROY the Principal Feature of the Torrens System REQUIRING that ALL
Encumbrances to the land BE SHOWN or at least INTIMATED upon the OCT / TCT
 Process of registration –
 ENTRY of transaction on the Day Book
 PAYMENT of Fees
 ANNOTATION on the Title (if effect is Less than Transfer of Ownership) OR
 CANCELLATION of the Old Title and ISSUANCE of a NEW TCT
 When is Registration Deemed Effective? –
 Upon COMPLETION of the Process of Registration
 EFFECTIVITY of Registration RETROACTS to the Date of Entry on the Day Book
 Rule on Effectivity of Registration –
 Registration Takes Effect AFTER COMPLYING All the Reqts & Payment of Fees
o NOT on the MECHANICAL Act of Annotating the Title by the Reg of Deeds

Sufficiency of Registration of Voluntary Dealings in Land

 When Registration is Deemed ACCOMPLISHED –
 When Owner’s DUPLICATE w/ the DOCUMENT sought to be Registered is PRESENTED, And
 When registration FEES are Paid
o EVEN when New TCT has NOT YET Been ISSUED
 CONVERSELY – when NO Registration is Deemed Made –
 When Owner’s DUPLICATE or DOCUMENT sough to be Registered is NOT PRESENTED, Or
 When registration FEES are NOT PAID w/n 15 days
o ENTRY on Day Book DOES NOT Operate to Convey or Transfer the Land
 Requisites for Registration to be DEEMED ACCOMPLISHED –
 Upon PRESENTATION and FILING of Duly Notarized Deed
 Upon SURRENDER of Owner’s Duplicate OCT / TCT
 ENTRY is Made on the Day Book, And
 PAYMENT of the registration FEES in FULL
o Innocent Purchaser for Value BECOMES the Registered Owner & DEEMED Holder of a
Certificate
o Rationale of Rule – what Remains to be Done is NOT W/N his Power to Perform
 On Entry of Day Book –
 Has Notation of Year, Month, Date, Hour & Minute of RECEPTION
 Entry of Data in Day Book operates to Make the Transfer of Ownership as REGISTERED
from the TIME so noted

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When / When NOT Owner’s Duplicate Title is REQUIRED
 When Owner’s Duplicate is REQUIRED – in Registration of VOLUNTARY Instruments –
 Importance of Presentation of Duplicate –
o To RECORD the Deed, Mortgage,… in the entry book of registry, AND
o To CAUSE the RECORDING of a Memorandum on the DUPLICATE and on its ORIGINAL
certificates
 When Owner’s Duplicate is NOT REQUIRED – in Registration of INVOLUNTARY Instruments –
 Ex of Involuntary Instruments –
o Attachments
o Liens
o Adverse claim
 Rationale of Rule – since Registration is CONTRARY to the Interest of the Owner and will Affect
him Adversely thus he is NOT Willing to Surrender the Owner’s Duplicate
o Said Owner’s DUPLICATE and INVOLUNTARY Instrument is NOT REQUIRED to be
Presented
o Considers the ANNOTATION of such Instruments in the Entry Book as SUFFICIENT to
Affect the land in question
 Diff in Requisites for VOLUNTARY vs INVOLUNTARY Instruments –
 VOLUNTARY Instruments –
o Presentation of Owner’s Duplicate is REQUIRED
 Since it is a Willful Act of the Owner to be affected by the registration, it is
Presumed that he is INTERESTED in Registering the Instrument AND is WILLING
to Surrender / Present the Duplicate to Accomplish the Registration
 Mere Presentation of Deed + Payment of Fees W/O SURRENDER of the
Owner’s Duplicate DOES NOT OPERATE to Convey and Affect the land sold
o If a SALE Transaction is Entered on Day Book BUT the REGISTRATION was NOT
COMPLETED in Due Time by reason of LATE Presentation of the Owner’s Duplicate – the
Registration of an Adverse Claim (i.e. Attachment) on the property Takes PRIORITY Over
the said SALE Transaction –
 Actual Registration in Voluntary Transactions ONLY RETROACTS as of the
Date of Entry on the Day Book IF –
 The Voluntary Document is IN ORDER, Or
 The Voluntary Document is COMPLETE w/ the Legal Reqts when
Presented, Or
 The Owners DUPLICATE is PRESENTED
 Remedy if Pax is UNWILLING to Surrender Duplicate Title in a Voluntary Transaction –
 Buyer should PETITION the court for surrender of Duplicate
o Court, after hearing, may ORDER the Surrender of the Duplicate
o Court will also DIRECT the Entry of a NEW Certificate upon the Surrender of the old one

Effect of Failure to Register

 RULE – from the Standpoint of 3rd parties
 A prop registered under the Torrens system REMAINS, for ALL LEGAL PURPOSES, the prop of
the Pax in whose Name it is REGISTERED
o Not withstanding the Execution of Deed of Conveyance or Encumbrance, UNLESS such
Doc is REGISTERED
 Date of Conveyance = Date of REGISTRATION
o Unless Registered, the deed Does NOT Serve as a deed of conveyance And CANNOT
Bind the prop AND the RIGHT of the OWNER Subsists

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 Effect of the Unregistered Deed – serves only as EVIDENCE of AUTHORITY for the Reg of Deeds to
MAKE Registration

 Effect on 3rd Parties –

 Purchaser Does NOT Necessarily LOSE his rights by Mere Failure to register
o UNTIL After another 3rd party Acquired the prop in Good Faith and For Value REGISTERS
the Subsequent Deed
 If 2nd Purchaser KNOWS or OUGHT to Know that the prop he is acquiring has been Previously
SOLD –
o 2nd Purchaser is NOT in GOOD Faith –
 He CANNOT Defeat the rights of the 1st Purchaser on the Mere Ground that the 2ND
DEED has been REGISTERED
 Validity of Unregistered Deed –
 Will NOT INVALIDATE the contract between parties of the deed
o Rationale – ACTUAL Notice is Equivalent to REGISTRATION
 Rationale – Purpose of Registration is to GIVE NOTICE to 3rd persons
 Failure to Register – will NOT, at Any Time After the Sale, VITIATE or ANNUL the Right of
Ownership conferred by such sale

Elevation of Doubts & Controversies to the LRA Administrator

 Coverage of Doubts -
 Matters of registration confronting the Register of Deeds
 Appeals from the Decisions of the Register of Deeds
 Requisites for Elevation –
 EITHER upon Certification of the Register of Deeds OR upon Suggestion in Writing by the party in
interest
 Party in Interest has 5 DAYS to pursue the Appeal to LRA
 Effect of Rule –
 Party in interest CANNOT Directly resort to court for Mandamus to compel the Register of Deeds
to register a particular document
 Bypassing the Appeal to LRA will tantamount to NON-EXHAUSTION of Administrative Remedies
o Admin remedies MUST be Exhausted BEFORE the courts will act

Appeal to Decision of LRA

 Appeal to CA – w/n 15 DAYS from Notice WON it involves question of fact, law, both or mixture of the 3
 Appellant to File NOTICE of APPEAL w/ CA and LRA
o Also Pay the Docket Fee AND Deposit P300 for cost – Failure is GROUND for Dismissal
 Appellant’s Brief – filed w/n 30 days from receipt of notice from CA that it (CA) has already
received the records of the case
 Appellee’s Brief – filed w/n 30 days from receipt of Appellant’s Brief
 Appellant’s REPLY Brief – filed w/n 15 days from receipt of Appellee’s brief
 Appeal to SC – by way of Petition for Certiorari purely on QUESTIONS of LAW (Rule 45)

Limitation of Register of Deeds

 Duty of Register of Deeds – PURELY MINISTERIAL and MANDATORY in character
 Determination of Doubtful Issues (i.e. Fraud in the deed) – left to the Court to Settle
 Invalidity of Contract –
 CANNOT Validly Object to the registration of doc if there is Nothing DEFECTIVE or IRREGULAR
on its Face upon examination
 Questions on Effect or Validity of deeds are to be Decided AFTER the Registration thru litigation

Formal Details Required in Voluntary Instruments

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 Formal Requisites –
 Deed to contain the Name of Grantee, nationality, residence / postal address, civil status
o If married – name of Spouse
o If Corporation or Association – that it is qualified to acquire the land (60% Fil-owned)
 Presentation of Owner’s DUPLICATE Certificate TOGETHER w/ the Deed
 Payment of Registration fees and doc stamps
 Evidence of FULL Payment of Real Estate TAXES
 Extra COPY of the deed for the City / Provincial Assessor
 If requisites are Complete – Registration becomes a DUTY of the Register of Deeds
 NO ADDitional Requirements may be imposed by LGU – only Congress can amend requisites

Sale of Land to Aliens

 Aliens CANNOT Acquire lands due to Consti Prohibition
 But Right to PACTO de RETRO (on prop derived from illegal sale to alien and sold in public
auction) is NOT Covered by this consti prohibition
 Only the State can INTERVENE and DETERMINE what is to be done with the Prop subject of the
violation
 Cases of Natural-Born Filipinos who LOST Citizenship –
 Can acquire by PURCHASE or TRANSFER private land for Residential Use PROVIDED
o Land area does Not Exceed 1,000 sqm for Urban, 1 hectare for Rural
o Existing landholdings (either Urban or Rural) to be Considered in the Maximum Limits of
land area to be acquired
o Cannot acquire More Than 2 LOTS situated in different municipalities or cities
o Acquisition of Urban land DISQUALIFIES alien from acquiring Rural land and Vice Versa
 Pax to submit Affidavit showing his Birthdate and Place, names of Parents and his INTENTION to
Reside Permanently in RP
 In cases of Pari Delicto (Fil sold prop to Alien) –
 NO Action may be Brought by One vs the Other
o PROVIDED – Fault on both sides is more or less Equivalent
o Exception to Non-Availing of Action in Pari Delicto –
 If one party is Intelligent while the Other is NOT, Or
 If agreement is NOT ILLEGAL per se But is Merely Prohibited (and such prohibition
of law is intended to protect the plaintiff), he May RECOVER what he has Paid or
Delivered
 Landholdings by Americans –
 Qualifications for Valid Landholdings –
o 1st Group –
 US citz who were former Fil Citz OR those who on 27 May 76 HAD Resided
continuously in RP for at least 20 yrs
 Acquired private residential lands NOT Exceeding 5,000 sqm BEFORE 3 July 74
 Land holding is for Family Dwelling
o 2nd Group –
 US citz who have become Permanent Residents of RP
 Acquired private residential lands NOT Exceeing 5,000 sqm
 Land holding for Family Dwelling
o 3rd Group –
 US citz who acquired land BEFORE 4 July 46
 Rationale – acquisition is deemed Vested Rights and CANNOT be impaired
o EFFECT of Qualifications – allowed to CONTINUE to Hold such lands And TRANSFER
ownership thereof to qualified pax
 Effect of Naturalization of Alien Buyer –
 If Alien is Still Disqualified during purchase of Private AGRI Land –
o Seller deemed to have DIVESTED of Title to the prop And CANNOT Annul the Sale

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 o Alien-buyer Holds Title of prop vs the Whole World EXCEPT the State
 But If Alien has been Naturalized AND the State has Not Commenced Escheat proceedings –
o State is Deemed to have WAIVED its right to Escheat the prop
 If Alien claimed Fil Citizenship DESPITE the contrary (WON naturalization application is pending)
o Constitute FALSIFICATION of public doc – sale is NULL
 Subsequent Naturalization does NOT CURE the defect of the deed
 If Alien Woman marries a natural-born or naturalized Fil Citz –
o Ipso Facto becomes a Filipino provided she is Not Disqualified by law to acquire Fil citz
 If Money Used to Purchase Private AGRI Land is Furnished by Alien –
 General Rule – sale is VOID (prohibition of alien to acquire is both Direct or Indirect manner)
 Exception – if money Used was DONATED to Fil citz by the alien In GOOD FAITH
o Rationale of Exception – prohibition covers acquisition of land by Alien for HIMSELF
 Acquisition by Alien Corporation –
 If Alien Corp can Validly Acquire land under the law –
o Registration of biz in RP is NOT Prerequisite
 Alien Religious Corp DISQUALIFIED to Own lands –
 Alien religious corp NOT ALLOWED to acquire lands
o Donation by Fil citz to Alien Religious Corp CANNOT be Registered by the Register of
Deeds
 NOT Violative to Freedom of Religion – land ownership is NOT Indispensable to
Exercise / Enjoyment of religion
 If corporation Sole (i.e. headed by Alien) is a Mere Administrator of church property –
o Consti prohibition on Alien Ownership does NOT APPLY because said sole is Only an
Administrator W/O a Nationality

Importance of Address
 Used in SERVICE of Notices and Processes in relation to the registered land
 Notice served on Address on Record is BINDING WON pax resides in RP

Owner’s Duplicate as Safeguard vs Fraud

 Presentation of Owner’s Duplicate is MANDATORY before Register of Deeds CAN Issue new TCT or
make any ANNOTATION on the Title pursuant to any Deed or Voluntary Instrument
 Exception to Presentation of Duplicate – in cases EXPRESSLY Provided by law OR upon Order
of the Court
 Effect of NON-Presentation / NON-Surrender of Mortgagee’s Duplicate of Owner’s Cert of Title –
 Failure or Refusal to deliver of certificate Withheld by a Mortgagee to the Register of Deeds is
NOT INDISPENSABLE to the Registration of a subsequent voluntary transaction –
o Record or Annotation made on Register Book is VALID
o Mortgagee’s duplicate cert of title is deemed Discontinued
 Production of Duplicate Owner’s Cert + Voluntary Instrument – CONCLUSIVE AUTH from the owner to
the Reg of Deeds to ENTER a NEW Cert or make MEMORANDUM of Registration
 New Cert or Memorandum – BINDING upon the Registered Owner / Rep IN FAVOR of Purchaser
for Value and in Good Faith
o If registration is thru Fraud – New Cert / Memo does NOT Preclude the owner from
PURSUING legal and equitable Remedies VS Parties to the Fraud
 BUT legal action is W/O PREJUDICE to the Rights of Innocent Holder for Value of
the certificate
 Effect of FORGED Duplicate Cert / Deed / Instrument –
 Registration procured using said docs is NULL and VOID
 Requirement for Lost Owner’s Duplicate –
 Immediate NOTICE to the Register of Deeds as soon as Loss or Theft is discovered

Issuance of TCT to Purchaser is ESSENTIAL

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 Mere Memo on OCT W/O Issuing a TCT to Purchaser – NOT Sufficient registration of such conveyance
 Rationale – issuance of TCT is essential Feature of Conveyance in Fee Simple by registration
o For purchaser to be fully protected – he must be a Holder in Good Faith of such TCT
 EXCEPTION to Rule on Issuance of TCT –
 In cases of Sale of UNSEGREGATED Portion of a parcel of land
o When deed is for a Part Only of the land – Reg of Deeds CANNOT Issue a TCT Until a
Subdivision Plan of the whole prop has been Verified and Approved by the Dir of Land
 Remedy of Buyer –
o Request Reg of Deeds to Make a Memorandum of such deed of conveyance on the
Seller’s Certificate of Title (to serve as notice to 3rd parties that such portion has been sold)

Forged Deed as Root of Valid Title

 A Forged Deed is a NULLITY and Conveys NO TITLE
 Registration using forged deed or forged TCT will NOT Affect the Land NOR Convey Title
o Registration will NOT VALIDATE the otherwise Invalid Doc
 Ex – Maysilo Estate of Bulacan
 What Gives Validity of an Unregistered transaction Between Parties –
o Ans – the NCC (on the Law on Contracts) gives validity to an unregistered transaction
 Between 2 INNOCENT Pax who must Suffer the Consequences / Bear the Loss for a Forged Deed –
 It will be the Pax who Made POSSIBLE the forgery by his Act of Confidence
o It is the Pax whose NEGLIGENCE Cause the Injury will SUFFER the Effect of his Acts
 Ex – pax Negligence made the Fraud possible
 Between the Owner and the Forger –
 The Owner has a Better Right EVEN if the Title is ISSUED in the name of the Forger
 Between the Owner and an Innocent 3rd Party –
 The 3rd Party has a Better Right because of the Principle that the BUYER need NOT Go Beyond
the Face of the Title
o Rationale for the Rule –
 Buyer is deemed in Good Faith, AND
 Owner has Contributory Negligence to the commission of the Forgery
 HOWEVER – if the Buyer will NOT Verify the AUTHORITY of the Forger-Seller (i.e. did Not Ask
for proper IDs) –
o The Buyer is deemed NOT in Good Faith but rather considered Negligent for failure to
verify the true identity of the Seller
 Reconveyance is an IMPROPER Action – if the Title is Acquired thru Forgery AND the prop is Already
w/ the Innocent 3rd Party
 Where RECONVEYANCE is the Proper Remedy of a Forged Title –
 When the Title of the prop is STILL in the NAME of the Forger
 Ex of Voluntary Dealings in Land –
 Conveyance
 Mortgage
 Lease
 Other Voluntary instruments (those of the Free Will of the owner)
 What Differences Voluntary from Involuntary Dealings in Land Registration –
 The REQUIREMENTS in Registration
 The EFFECTS of the Transfer

An Innocent 3rd Party who Relies on a Registered Power of Atty is NOT Protected
 3rd party Must be Doubly Careful w/ Attys-in-Fact –
 Error in judgment by reason of such powers is Chargeable to the said 3rd Party by reason of his
Own Negligence
 Rule on Seller acting on Powers of Atty – CAVEAT EMPTOR
o Gen Rule – if one Buys from the Owner, he need not look beyond the Face of the Title

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  But if one Buys from a person NOT the Registered Owner, the Buyer is Expected
to Examine the TCT AND the Factual Circumstances to determine if there are
FLAWS in the title of the Transferor OR in his CAPACITY to Transfer the Land
 Pax must Discover at his Own Risk the Authority of the Agent
 Ignorance of the Authority is NOT an EXCUSE on said 3rd party

CONVEYANCE in FEE
Procedure in Transferring Registered Land
 Gen Procedure in Transferring Reg Land –
 Owner must EXECUTE a Deed of Conveyance
 The Grantor or Grantee will PRESENT the said DEED w/ the Reg of Deeds Together w/ the
OWNER’s DUPLICATE Cert of Title
 The Registrar will MAKE ENTRY on the Day Book effecting such transfer
 The OLD Cert of Title is CANCELLED and a NEW TCT is Issued

Description of the Land

 The Prop must be Properly Described thru –
 Lot no.
 Block no.
 Location
 Boundaries
 Area
 On Conflict Between the Boundaries and Area –
 Gen Rule – where the land Described by Boundaries, an ERROR relating to the AREA may be
Disregarded
 Rationale – what Defines the prop are the Boundaries and NOT the Area
o EXCEPTION – the rule does Not Apply
 Where the Boundaries Relied upon DO NOT Identify the Land Beyond Doubt, OR
 Where the Boundaries given in the registration DO NOT Coincide w/ the Outer
Boundaries of the land covered and described in the Cert of Title
 If the Boundaries are found to be CORRECT and there is a CONFLICT w/ the Area – the
BOUNDARIES Prevail

Conveyance of PART of a Titled Land

 If ONLY a PART of a titled Land is Conveyed –
 The Reg of Deeds should NOT Issue a TCT UNTIL a Subdivision Plan has been presented
 The Entry to be made is regarding such Conveyance is Only in the form of a MEMORANDUM
o To serve Notice to 3rd parties of the Fact that such Portion of the land has been Sold

Carry Over of Subsisting Encumbrances to the New Title

 If the Registration Book contains entries of Encumbrances or Adverse Claim OVER the land –
 The NEW TITLE Must also Contain such Encumbrances or Adverse Claim
 Gen Rule – the Sale of a Property CARRIES w/ it All the Encumbrances attached to the prop
 If a Prop w/ Encumbrances is to be Subdivided –
o The Encumbrances HAVE to be SETTLED First BEFORE any subdivision may be made

Vested Right in a Contract to Sell

 A Contract to Sell CAN be ANNOTATED on the title as an ADVERSE CLAIM over the prop
 But there can be No TCT that may be Issued
 Nature of a Contract to Sell –
 A sale is Perfected by the meeting of the minds on the Subject Matter and the Price
o EVEN if the prop is NOT Yet DELIVERED – there is already a Perfected contract of Sale

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  There is still NO TRANSFER of Ownership
 It is in a way a Conditional Sale

Sale in Behalf of a Minor

 In a Contract of Sale – Payment is NOT a Condition for the Transfer of Title
 Title can be Transferred EVEN if Payment is NOT yet Complete
 Delivery TRANSFERS Ownership
 Sale to a Minor is INEFFECTIVE w/o the authority of the court
 Ineffectiveness APPLIES even if sale is Executed by the Judicial Guardian
o A Guardian has NO Auth to Sell the prop of a minor by Reason of his General Powers
 Sale by the Unauthorized Guardian is deemed VOID

Sale w/ Duress
 A Sale w/ Duress is VALID Until ANNULLED
 Extent of Duress Necessary to Void a contract of sale –
 One that is PROBABLE and SERIOUS
 The Intimidating Party has the Necessary MEANS to Inflict Harm on the threatened party
 A General Feeling of Fear is NOT SUFFICIENT to Annul a contract of sale
 There has to be Acts or Instances of such Nature and Magnitude as to INFLICT Fear or Terror
upon the Seller resulting to his Execution of a Deed or Act that is INVOLUNTARY

Inadequacy or Non-Payment of the Price

 Inadequacy or Non-Payment of the Price alone CANNOT Invalidate a sale
 Effect of Non-Payment of the Price
 Will NOT become a LIEN or ENCUMBRANCE on the prop
 Will NOT INVALIDATE the contract NOR make it RESCISSIBLE
o Remedy – file an Action for Collection but NOT Rescission
 Will NOT Convert the contract into one W/O CAUSE or CONSIDERATION

Contract of PROMISE to SELL

 A contract of Promise to Sell – is RESCISSIBLE w/o Need of court intervention
 Right of Vendor in case of Default on the Promise by the Buyer –
 RESCIND the contract
 Take immediate POSSESSION of the prop
 Can SELL the prop to Another Party
 In Reciprocal Obligations – the Power to Rescind is IMPLIED in case one of the Obligors should Fail to
Comply w/ his obligation
 Basis of Rule – Art 1191 of NCC w/c Expressly Grants the parties the power to Revoke or Cancel
the contract

Special Conditions in Sales of Subdivision Lots

 Special Conditions or Obligations upon purchasers of Subdivision lots are VALID RESTRICTIONS
o These are valid Contractual Limitations on the Ownership of the prop
 Ex of valid restrictions –
o Restrictions in the construction of buildings and improvements
o Prohibition on the Resale of the prop w/n a specified period

Double Sale of The Same Land

 Apply Art 1544 of NCC – ownership of the land belongs to Pax who
 1st to REGISTER in Good Faith, then
 1st in POSSESSION in Good Faith, then
 Pax who can Present the OLDEST TITLE in Good Faith

How Possession is Determined

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 Possession is IMPORTANT when there are 2 buyers and NONE of the Buyers Registered the property
 Test if the Issue is Possession as a MATTER OF FACT (and NOT Ownership) – possession belongs to
 PRESENT Possesor, THEN
 LONGEST in Possession, THEN
 Pax who Presents a TITLE, then
 Court to DECIDE if both parties Present a Title

Contract in Pacto de Retro

 Pacto de Retro – transfer of ownership is Subject to Repurchase by the seller
 Sale is Registered as an ANNOTATION to the Title (as a Lien thereto)
 NO New TCT is issued UNTIL the Period of Repurchase has Lapsed and the Ownership of the
prop has been Consolidated by the buyer
 Title to a Pacto de Retro sale –
 Pacto de Retro sale TRANSFERS legal Title of the prop to the Buyer
o Buyer is Subrogated to ALL Rights and Actions of the Seller
o Buyer becomes the OWNER of the estate in Fee Simple SUBJECT to the Seller’s Right of
Redemption (seller Loses any right over the prop EXCEPT that of Redemption)
 Buyer can mortgage prop BUT if prop is Redeemed – seller is Entitled to receive
the prop FREE of any Mortgage contracted by the Buyer
 But Seller is bound to Respect a Lease entered by the Buyer in good faith
 Period of Redemption of Pacto de Retro Sale –
 If W/ AGREEMENT – Max is 4yrs
 If W/O Agreement – Max is 10yrs
 When Period to Redeem Commence –
 Form the Date the DEED of Sale was EXECUTED
o NOT from date of registration of deed – because the Contract is Binding to the Parties
regardless of registration
 Registration of the Deed is only meant to PROTECT the Buyer vs CLAIMS of 3rd
parties Arising from Subsequent Alienations of the seller (i.e. double sale)

Right of Legal Redemption or Pre-Emption

 Right of Redemption – the right to BUY BACK
 Right of PRE-Emption – the right to Purchase IN PREFERENCE to Others (i.e. reserved to co-owners
or adjacent owners)
 BOTH Rights of Redemption AND Pre-Emption are SUBJECTS of Registration
 Registered as LIEN on the property
o In EXTRA Judicial Foreclosures – w/n 1yr from the Registration of the Auction Sale to
Redeem the prop
o In JUDICIAL Foreclosures – a co-owner has 90 days from the Registration of the Auction
Sale to Exercise the Right of PRE-EMPTION
 Applicability of Right of Redemption –
 In RURAL Lands ONLY – owners of Adjoining Lands can Redeem the prop if the land is Rural
AND its area Does NOT Exceed 1 hectare
o If there are 2 adjoining owners – the adjoining owner w/ the Smaller Area is preferred
 In URBAN Lands – owners of Adjoining Lands have Right of Redemption or Pre-Emption where
o The land is so Small and Situated as a to make a major portion thereof of NO Practical
purpose other than merely for Price Speculation
o If there are 2 adjoining owners – the adjoining owner whose intended use is Best Justified
is preferred

CONDOMINIUM
 Condominium (defined) – ownership of an interest in a real prop consisting of
 A Separate Part of unit in a residential, industrial or commercial building
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  An Undivided Common Interest (directly or indirectly) in the land on w/c the building is built, AND
 An Undivided Common Interest in Other Common Areas of the building itself
 What is Registered in a Condominium Project – the MASTER DEED is registered w/ Reg of Deeds and
a Cert of Title is ISSUED
Ownership of Condominium Project
 Of project covers BOTH Land and Building – acquisition of Ownership is Limited to Fil Citz or corps w/
at least 60% Fil ownership
 If project covers ONLY Building (land is on lease) – foreigners and foreign corps are allowed to acquire
Registration of Restrictions
 Registration of a DECLARATION of RESTRICTIONS is Required BEFORE any condo unit is Sold or
Conveyed
 Registered as ANNOTATION on the Cert of Title of the condo project
o Restrictions constitute as Lien that is Binding to all condo owners
o Enforcement of Restrictions is upon the project owner or its condo mgt body
 Registered Restrictions on Individual Title to the condo is BINDING to 3rd pax Buyer

Registration of Sale or Conveyance of Condos

 Conveyance is ANNOTATED on the Cert of Title of the condo project
 Transferee is issued a condo owner’s copy of fo the pertinent portions of the Cert of Title
 In case of Subsequent Conveyance – registration thereof must be Accompanied by a certificate
from the condo mgt body that the Conveyance is in Accordance w/ the Declaration of Restrictions
previously recorded
 If Master Deed provides that the LAND is to be OWNED in COMMON –
 TCT of prop is CANCELLED, and
 New TCT is Issued in The Name of the Condo Owners as PRO-INDIVISO co-owners thereof

Assessments as Lien
 Non-Payment of association Dues constitute as Lien on the condo unit
 Such Lien may be registered by the mgt body w/ the Register of Deeds
 Assessment Lien that is registered can be Enforced by Judicial or Extra-Judicial Foreclosure of the
condo
 Condo owner has the Same Right of Redemption in such Judicial or Extra-Judicial foreclosures

REAL ESTATE MORTGAGE

 Mortgage (defined) –
 A REAL RIGHT constituted to Secure an Obligation upon a Real prop or rights therein
o To Satisfy w/ the Proceeds of the sale thereof, the Obligation when it becomes Due and
has Not been Paid
 Mortgage is regarded as a Mere Lien on the prop
 It Does NOT Create a TITLE or Estate
o It is simply a Charge on the prop for the Purpose of Security for the payment of a loan

Essential Requisites of Mortgage

 Elements of Mortgage –
 Constituted to SECURE the FULFILLMENT of an Obligation
 Mortgagor is the ABSOLUTE Owner of the prop mortgaged
 Pax constituting the mortgage has the FREE DISPOSAL of the prop OR he is Legally Authorized
for the purpose

Special Characteristics of Real Mortgage

 SUBJECT Matter is a REALTY
 The mortgage is a REAL RIGHT
 POSSESSION of the prop is Generally RETAINED
 A mortgage is an ACCESSORY OBLIGATION (there is a Principal Obligation or Loan)

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 A mortgage is INDIVISIBLE (regardless of the whether the Debt Secured may be divided among
several debtors
 The mortgage is INSEPARABLE (whoever subsequently acquires a prop w/ an existing mortgage is
Bound by such mortgage)

When a Pacto de Retro Sale is DEEMED an Equitable MORTGAGE

 Under Art 1602 of NCC – a contract is Presumed to be an Equitable Mortgage (INSTEAD of a Pacto de
Retro sale) in ANY of the ff cases –
 When the PRICE of the Pacto de Retro Sale is Unusually INADEQUATE
 When the SELLER remains in POSSESSION as Lessee or otherwise
 When the BUYER retains a PART of the PURCHASE PRICE
 When the BUYER binds himself to PAY the TAXES on the prop sold
 When Upon or After the Expiration of the right to repurchase, ANOTHER INSTRUMENT
Extending the / Granting a new Period of Redemption is executed
 In any other cases where it can be INFERRED that the REAL INTENTION of the parties is to
Secure the Payment of an Obligation
 In case of Doubt on Whether the transaction is of Pacto de Retro OR of Equitable Mortgage –
 Transaction is RESOLVED as an EQUITABLE MORTGAGE

Execution and Registration of Mortgage

 Requirements of Mortgage –
 A DOCUMENT effecting said mortgage must be Executed, AND
 Said Document should be REGISTERED
o Mortgage will have an Effect on the Title ONLY FROM the Time of its Registration
 Mortgage of Private Lands to Aliens –
 Mortgage of lands to Aliens is ALLOWED
 BUT he is FORBIDDEN to –
o Take POSSESSION of the prop During the existence of the Mortgage
o Take POSSESSION After Default EXCEPT for the Sole Purpose of Foreclosure,
Receivership & enforcement of other proceedings for a period of NOT >5yrs from the date
of actual possession
o PARTICIPATE in the BIDDING or SALE of such prop in case of foreclosure
 How Mortgage Registration is Effected –
 Filing of the Deed TOGETHER w/ the Owner’s Duplicate TCT
 Reg of Deeds makes an ENTRY of the MORTGAGE on the Orig Cert & in the Owner’s Duplicate
o Entry is in the Form of Annotation

Nature and Effect of Pactum Commissorium

 Pactum Commissorium (defined) – a stipulation Empowering the Creditor in a Real Estate Mortgage TO
APPROPRIATE the Collateral in the event of Failure to Pay or Default of the Mortgagor
 W/O need of further Formalities (i.e. foreclosure proceedings and public sale)
 Any Provision or Stipulation to this effect is Deemed NULL and VOID

Necessary Parties to a Foreclosure Suit

 Defendants in a Foreclosure suit –
 ALL pax Having or Claiming Interest in the mortgage prop SUBORDINATE in Right to that of the
Mortgagee
 Effect of Failure to Include –
 Will NOT INVALIDATE the foreclosure proceedings
 Will ONLY leave the Equity on Redemption OPEN to Lienholder or Purchaser of a prop w/ an
existing mortgage, who is NOT Included in the suit

Prescription of Action to Foreclose

 Action Prescribes in 10yrs (Art 1142 of NCC) from the Time the Action was Enforceable

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  Registration of mortgage is Only Meant to BIND 3RD Parties
 Registration of mortgage Does NOT MAKE the Action to Foreclose it IMPRESCRIPTIBLE

Judgment on Foreclosure
 Auction Sale w/n 90 days from the Date of Service of the Order of Foreclosure
o After the Expiry of the 90-Day Right of Pre-Emption – an Auction Sale will Follow
o But During Period of Redemption – judgment Debtor still has the right of Redemption on
the property
 Deficiency Judgment after the Foreclosure Sale –
 If sale proceeds are Insufficient to Cover the Obligation – balance will be Paid by the Mortgagor
o Recovery of Deficiency Judgment is ALLOWED Even if the Law is SILENT on this regard
o Deficiency Judgment ONLY APPLIES if the Mortgagor is the Debtor Himself
 NOT when the Mortgagor merely Accommodated the Debtor’s lack of collateral

Registration of the Final Record in Judicial Foreclosure

 Consolidation of Title – is AFTER 1yr period for Right of Redemption has EXPIRED
 Judicial Foreclosure Sale – is also known as EXECUTION SALE
 It has the same 1yr Period of Redemption as that of the Auction Sale in Extra-Judicial Foreclosure
 1yr period Runs from the Date of REGISTRATION of the EXECUTION SALE (as confirmed by the
court)

Extra-Judicial Foreclosure of Mortgage

 Extra-Judicial Foreclosure – applies if there is an SPA attached / inserted to the mortgage Conferring
upon the Mortgagee the POWER to SELL the prop at Public Auction in the event of foreclosure
o The SPA Survives the Death of the Mortgagor
 Period of Redemption in Extra-Judicial Foreclosure –
 1yr Period of Redemption is COUNTED / Begins to Run from the Date of REGISTRATION of the
AUCTION SALE (as confirmed by the court)
o Prior to the Auction Sale – mortgagor still has the Right of Pre-Emption (to PAY the
Mortgage)
o After the Auction Sale – there is a TRANSFER of Title to the Buyer / Highest Bidder
o AFTER the Lapse of Redemption Period – the Buyer the CONSOLIDATES his Title to the
prop
 Purpose of Fixing the Redemption Period in Extra-Judicial Foreclosures –
 To Afford the Mortgagor a CHANCE to RECOVER the prop because he forfeits such prop at a
great loss (prop is usually sold and bought by the Mortgagee at no more than the loan balance)

Possession of the Prop During the Period of Redemption

 MORTGAGOR is Entitled to RETAIN POSSESSION of the prop and to the Fruits therefrom DURING
the running of the Period of Redemption
 AFTER the Lapse of the Period of Redemption – POSSESSION is Transferred to the BUYER
upon Motion for a Writ of Possession
o It is NOT NECESSARY to Institute a New Action to Secure Possession of the prop

Requisites for Registration of Sale on Extra-Judicial Foreclosure

 Requirements for Registration –
 Deed of Sale W/ certificate from the Sheriff attesting the validity of the Auction Sale
o Deed of sale will be Executed by the Mortgagee (as atty-in-fact Appointed in the SPA
attached to /inserted in the Mortgage)
 Registration is effected as an ANNOTATION at the Back of the TCT
 After 1yr Redemption Period has Lapsed – the CONSOLIDATION of OWNERSHIP or Issuance of a
NEW TCT is made After the Surrender of the Old TCT

LEASES
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Lease (defined) – a contract where 1 party binds himself to give to another the enjoyment or use of the
thing for a price certain, for a period w/c may be definite or indefinite
 Lease Agreement – is one where Possession is delivered to the Tenant / Lessee who is under
obligation to pay rent for the use or occupation of the prop And ACKNOWLEDGES at all times the
Title thereto of the Landlord / Lessor

Registration of Leases
 Lease or Sublease of Registered Land – contract MUST be in Writing for it to be Registered
 Who should Register the Lease –
 It is incumbent upon the Lessee to Register the lease in order to Protect his Leasehold
 Effect of Stipulation that Owner CANNOT Alienate / Mortgage prop W/O Consent of Lessee –
 Lessee CANNOT validly Invoke the stipulated prohibition
 Mortgagor or Buyer has the right to Foreclose prop
o Mere Registration of the Lease DOES NOT Destroy the Mortgage Rights
 Gen Rule – Unless a lease is Registered, it shall Not be Binding upon 3rd persons

Knowledge of Existing Lease

 Knowledge of Existence of a Lease at the Time of Purchase –
 Buyer is bound to RESPECT the lease
o EVEN if said Lease is NOT Annotated in the TCT
 Rule Applies ONLY on leases w/ Fixed Terms, NOT on lease from Month to Month

Lease of Land to Aliens

 Citizenship of Lessee is NOT Decisive to the right to lease Public Lands
 LIMITATION – Provided the land is used for the Purpose of the Lease as indicated
 Period of Lease to Aliens –
 Lease of lands for Residential Purposes is ALLOWED
 Max Term of Lease for Aliens / Alien-Owned Corp for Private Lands –
o 25yrs Renewable for Another 25yrs
o Rationale of Limits – to counteract & discourage leases of long duration w/c amounts to
Virtual Transfer of Ownership to aliens

Right to Register by a Builder in Good Faith

 Right to Retain the Prop where the a Building was built – is a REAL RIGHT that is REGISTRABLE
 Thus – a Builder in Good Faith may RETAIN the prop Until the landowner pays for the cost of the
Building
o Rationale – builder has NO Knowledge of Adverse Ownership of the land
 Different Rule on Lessee who Introduced Improvements –
 Lessee CANNOT Recover – he built improvements at his own risk Knowing that the land is not his
 Lessee CANNOT Retain the prop for purposes of forcing the owner to reimburse him

TRUSTS and POWERS of ATTY

Trust (Defined) – obligation of a person ( to whom the Legal Title to property has been Transferred Arising
out of a Confidence Reposed on Him) to Apply the prop Faithfully and According to such Confidence
 EXPRESS Trust in Real Prop – evidenced by Writing (parol evidence is NOT Sufficient)
 IMPLIED Trust on Real Prop – exists by operation of law and may be proved by Parol Evidence
 The Enforcement of Implied / Constructive Trust – provide an Equitable Remedy vs Unjust
Enrichment
o Fraudulent Registration of a land makes the “registrant” as a Mere Trustee
 True Owner has the right to Enforce the Trust despite the Irrevocablity nature of the
Torrens Title
o Role of Trustee – acts NOT Necessarily for the Benefit of the Trustor BUT, upon his
discretion, for the ultimate benefit of a 3rd party

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Power of Attorney
 Power of Atty (defined) – an Authority Enabling on pax to DISPOSE of the Interest w/c is vested in
another
 Alternative definition – an Authority to DO some Act in Relation to lands w/c the owner (granting or
reserving such power) might himself lawfully perform
 Role of Atty-In-Fact (in a power of atty) – acts for the Use and Benefit of the Principal who Appointed
him
Registration of Trust
 Trust Agreements / Deeds to Transfer a registered Land should be REGISTERED w/ the Reg of Deeds
 Particulars of the trust, conditions and limitations thereto are Entered as Annotation to TCT
o Annotations will be made in Both the Cert of Title and in the Owner’s Duplicate
o Annotation will be in the words “IN TRUST” or “Upon Condition”
 Trust w/ Express Power to Sell –
 If the instrument creating a Trust contains EXPRESS Power to Sell, Mortgage or Deal w/ the land
in any manner –
o Such power must be Annotated in the Title w/ the words “WITH POWER TO SELL” or
“WITH POWER TO MORTGAGE”
 NO instrument transferring, mortgaging or in any way dealing w/ a registered land Held in Trust
CAN BE Registered UNLESS the said Powers are EXPRESSLY Conferred by the instrument
o OR the Court has construed such instrument in Favor of Such Power
 ONLY then CAN the Reg of Deeds REGISTER the said Transfer or Mortgage
 Registration of Constructive Trust –
 Pax claiming Implied / Constructive Trust can file for the Registration of such trust
o How Filed – by filing a Sworn Statement before the Reg of Deeds
 Trustee Applying for REGISTRATION of the Land –
 Trustee has Authority to File an application for registration of any land Held in Trust by him
o PROVIDED – he is NOT Expressly PROHIBITED to do so by the trust agreement

Trustee Cannot Assert Title ADVERSE to his Principal

 Limitations of Trustee –
 He is ESTOPPED form Acquiring or Asserting title ADVERSE to that of his Principal
 He is NOT ALLOWED to create in himself an Interest in Opposition to that of his Principal
 If Prop is Registered in the NAME of the Trustee –
 Registration if deemed to have been Effected for the Benefit of the Prinicipal
 Trustee is under Obligation to Execute a Deed of Reconveyance in favor of true owner
 If there is Fraud or Bad Faith in obtaining the registration –
o Registered Land does NOT Belong to the pax in whose favor the registration was made
o Real Owner is Entitled to RECOVER the prop –
 PROVIDED – it has NOT been TRANSFERRED to a 3rd pax who acquired it in
Good Faith and for Value

When Possession of Trustee is Deemed ADVERSE

 Gen Rule – Possession of a Trustee CANNOT be a Ground for Title by Prescription
 EXCEPTION – when such Trustee makes an OPEN REPUDATION of the Trust by Unequivocal
Acts made Known to the Owner
o Mere SILENT Possession by the Trustee UNACCOMPANIED w/ Acts amounting to Ouster
the ownership CANNOT be Construed as Adverse Possession
o NOT Unequivocal Acts –
 Reception of rents or profits by the trustee; Erecting fences and buildings
 Declaration of land in the name of the trustee for Taxation Purposes
o Ex of Unequivocal Acts –
 REFUSAL of trustee to SHARE the products of the land to the Owner or Heirs

15
Registration of Power of Atty
 Similar to a Trustee, an Atty-In-Fact CANNOT Assert title to the prop ADVERSE to his Principal
 Construction of Power of Atty –
 Construed according to the NATURAL Import of its language
 Authority conferred to atty-in-fact CANNOT be Extended by IMPLICATION beyond the natural and
ordinary significance of the tems
o Buyer / Mortgagee dealing w/ Atty-in-Fact must ASCERTAIN at his OWN RISK whether
the acts of the atty-in-fact will BIND the Principal
INVOLUNTARY DEALINGS w/ Reg Land (Attachment & Other Liens)
Involuntary Dealings (defined) – transactions affecting such lands in w/c the Cooperation of the
Registered Owner is NOT Needed (trans may be Against the Will of the owner)

Nature and Kind of Attachments

 Attachment (defined) – a Writ issued at the Institution or During the Progress of an action
 3 Classes of Attachment –
 PRELIMINARY Attachment – issued at institution or during the progress of an action
 Garnishment – attachment of the prop of defendant in the hands of a 3rd party
 LEVY on EXECUTION – attachment issued After and in satisfaction of a FINAL Judgment
o Date of Levy of Execution – is the Date that pax Acquired Title to the prop
 NOT the date of Actual sale

Registration of Attachments & Other Liens

 Purpose / Effect of Registration – Create or Preserve a lien, right or attachment on the registered land
 How Registration is Effected –
 Filing of a Copy of the Writ / Order / Process w/ the Reg of Deeds
o Writ must contain a Sufficiently Accurate Description of the land or a part of it that is
intended to be affected by such Writ
 Reg of Deeds will ENTER the Attachment / Lien in the Day Book
o IF Owner’s Duplicate is NOT Presented during registration –
 Reg of Deeds must Serve Notice to the owner w/n 36hrs AND Request him to
submit the Owner’s Duplicate
 If Owner Refuses or Neglects Compliance – Reg of Deeds will inform the court w/c
will Compel the owner to Surrender such duplicate TCT

Sufficiency of Entry of the Attachment in the Day Book

 Effect of Notation of the Attachment in the Day Book –
 Produces ALL the EFFECTS the law gives to its Registration or Inscription
 Mere ENTRY in the Day Book W/O Noting it on the Cert of Title is SUFFICIENT
 Gen Rule on Process of Registration of Attachment / Liens / Lis Pendens –
 ENTRY on the Day Book of the Writ
 Payment of Fees
 ANNOTATION in the Title
o EXCEPTION – Even if there is NO ANNOTATION by reason of FAILURE by the Reg of
Deeds to Make such Annotation OR in cases of Involuntary Dealings –
 MERE ENTRY in the Day Book is EQUIVALENT to Registration AND is Sufficient
NOTICE to 3rd parties of such Adverse Claim
 Priority Between 2 Attachments –
 Given Priority – the attachment PREVIOUSLY Registered (superior & preferred)
 Rule on Execution Sale –
 CAVEAT Emptor applies (buyer beware)
 Sheriff CANNOT WARRANT the sale although such sale is valid
 Sheriff is NOT Obliged to put the Buyer in Possession of the property bought
 Buyer only ACQUIRES whatever interest the Judgment Debtor has over the prop

16
 o Ex – if at time of judgment, the debtor is NO Longer the Owner of the prop by reason of an
earlier alienation – the Buyer at auction sale Acquires NOTHING

When Attachment may be Refused Registration

 Gen Rule – duty of Reg of Deeds to register attachment is MINISTERIAL
 EXCEPTIONS –
o Where the Law provides that Certain props CANNOT be SUBJECT to Attachment
o When the Title of the land is NOT in the NAME of the Defendant and there is NO PROOF
submitted showing he has any Present or Future Interest in the land
Exception of Family Home from Attachment
 Exception from Attachment is Covered by Art 232 of NCC
 BUT Family Home can be Attached in ff cases –
o JUDICIAL Foreclosure for –
 Non-Payment of taxes
 Satisfaction of judgment of debt secured by a mortgage on the prop BEFORE or
AFTER the establishment of the family home
o EXTRA-Judicial Foreclosure for –
 Non-Payment of taxes
 Debts incurred BEFORE the declaration as family home was recorded in the Reg
of Deeds
 Debts secured by mortgage on the premises BEFORE or AFTER such declaration
was recorded in the Reg of Deeds
 Debts due to Laborers, Mechanics… who have rendered services or furnished
materials for the construction of the building

Attachment of Wife’s Share in Conjugal Prop

 Interest of Wife in her Share of Conjugal Props –
 CANNOT be subject to Attachment and sold in execution
 Rationale – right of the wife to such properties is merely inchoate / tentative
o It does NOT Constitute a Legal Right NOR will Ripen into a Title
 Vs Right of Co-Owner in a co-ownership –
 CAN be a subject of a Writ of Attachment

How an Attachment is Continued, Reduced or Discharged

 By any method sufficient in law AND is GIVEN EFFECT by Registering the inst w/ the Reg of Deeds
 Registration of Execution Sale –
 Registered as an ADVERSE Claim or Encumbrance on the prop by FILING any Deed, Demand,
Certificate, Affidavit or other Instrument made in the course to Enforce such liens
 The 12-month Redemption period STARTS to RUN on the DATE of REGISTRATION of the
Execution Sale pursuant to a Levy of Execution
o NOT on the date of sale

Auction Sale
 Auction Sale made by virtue of a Preliminary Attachment duly RECORDED w/ the Reg of Deeds
RETROACTS to the Date of the of the Attachment Lien
 If there are 2 Conflicting Attachments on the Property –
o Preference is determined by the Date of REGISTRATION of the ATTACHMENT –
 NOT on the Date of registration of the Execution Sale
 Rule on a Levy on Execution duly Registered –
 Registered Levy TAKES PRECEDENCE or is PREFERRED over a Prior UNRegistered Sale
o EVEN if the Sale is subsequently registered BEFORE the Sale in Execution (BUT AFTER
the Levy was Made)

Tax Sale
17
 Nature of the Action – one IN PERSONAM
 ALL Interested Parties should be personally served Notice of the Action
 Notice by Publication Does NOT Satisfy the requirements of proceedings In Personam
 Notice to Delinquent Taxpayer – by Registered Mail at least 60days Before the Date Fixed for the Sale
 Tax Lien vs Attachment –
 Attachment is INFERIOR or SUBORDINATE to a TAX Lien
 Registration of Tax Lien –
 Registration of the Lien is NOT NECESSARY – registration is automatic by virtue of PD 1529
o BUT the deed… made to Enforce the Tax Lien MUST be Registered w/ the Reg of Deeds
 Running of the Redemption Period in Tax Sale –
 1yr Period to redeem STARTS to RUN on the Date of Registration of the SALE

Who may Redeem in Execution Sales

 Redemption may be Done by –
 Judgment Debtor, OR
o His Successors-in-Interest, OR
o His Grantee or Assignee, OR
 A Creditor w/ subordinate lien (mortgage, judgment or attachment) on the prop sold, OR
o Assignee for the benefit of creditors, OR
 3rd Party who bought the Debtor’s right to Exercise Legal Redemption over the prop

Cancellation of Old TCT and Issuance of a New TCT

 Procedure –
 Filing of a MOTION for the Cancellation of the old Cert of Title and for the Issuance of a new Cert
of Title
o Case to be Entitled in the ORIGINAL CASE in w/c the Decree of Registration was entered
 RTC (acting as a Land Reg Court) will Decide on WON the Cancellation of old cert of reg AND the
Issuance of a new cert of reg in the Name of the Petitioner Should be Granted

Registration of Titles to Land of Tennant-Farmers (under CARP)

 After compliance w/ Certain Conditions of law (i.e. payment of the land in 15 yrs) – the tenant-farmer
becomes the Absolute Owner of the land
 PRIOR to FULL Ownership by the tenant-farmers –
o Land Transfer Certificates issued to tenant-farmers are to be REGISTERED w/ the Reg of
Deeds
 Entry is to be made on the Day Book and ANNOTATED on the TCT of the Landlord
Owner
 AFTER Full payment and the tenant-farmer becoming an Absolute Owner of the prop –
o Emancipation Patent will be issued to tenant-farmers and will be filed w/ Reg of Deeds
 Emancipation Patent becomes the BASIS for the Issuance of TCT in the name of
the tenant-farmer

Registration of LIS PENDENS

Lis Pendens or Litispendencia (defined) – the control w/c a court has over a prop involved in an action,
DURING the pendency of such action
 When Lis Pendens is proper –
 ONLY in actions DIRECTLY Involving the prop – Ex
o Recovery of possession of real prop
o Quieting of Title / Removal of clouds upon the title
o Partition / Any proceeding Affecting the Title / Use / Occupation of Real Estate
 NOT Proper actions to Effect Lis Pendens –
o Collection suit
o Breach of Contract

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 Effect of Registration or Non-Registration of Lis Pendens –
 NON-Registration – action affects only the parties But NOT the land
 Registration – filing and registration of Lis Pendens will serve Notice to 3rd persons other than the
parties to the suit
 How Lis Pendens is Registered –
 File a Notice of Pendency of Action w/ the Reg of Deeds
o BOTH Plaintiff and Defendant MAY File the Notice of Lis Pendens during the ff Times
 For the Plaintiff – at Time of Filing of Complaint
 For the Defendant – at the Time of Filing of his Answer seeking for affirmative relief
 And at ANYTIME thereafter for BOTH parties
Constructive Notice
 When there is Constructive Notice of Lis Pendens –
 When the Notice of Lis Pendens is FILED w/ the Reg of Deeds AND such is ANNOTATED at the
Back of the Orig Cert of Title
o Annotation on Owner’s Duplicate is NOT a Requirement
o Entry on the Day Book is deemed Sufficient Notice of the Claim

Buyer Pendente Lite

 Buyer of prop on Pendente Lite is BOUND by any judgment rendered vs said prop
 Buyer is NOT Considered as Buyer in Good Faith

Doctrine of Lis Pendens

 When Lis Pendens is NOT Applicable –
 Attachments
 Levies of Execution
 Proceedings for Probate of Wills
 Administration of the estate of a deceased
 Essential Requisite for Lis Pendens to Apply – the prop must be DIRECTLY Affected
 Ex –
o Recovery of possession
o Enforcement of lien
o Adjudication between Conflicting Claims of title, possession or right of possession
o Alienation or Sale
 Object of Lis Pendens –
 To keep the subject matter of litigation (prop) W/N the Power of the court UNTIL the entry of final
judgment
 To prevent the Defeat of the judgment by a subsequent alienation of the prop

Discharge of Lis Pendens

 Requisite for the Discharge of a Registered Lis Pendens –
 Registration of a Certificate of the clerk of court (based on a Final Order of the Court) where the
action is pending
o Cert must state the Manner of Disposal of the case
 OR Upon Verified Petition of the party who caused the registration of the lis pendens
 All Cancellation of lis pendens should be ONLY UPON Orders of the Court
 Ex of INVALID Court Orders to Cancel Lis Pendens –
 If order was Granted Ex-Parte
 If order Dismissing the Case has NOT Yet become Final
 If there is No Showing that the lis pendens is only for the Purpose of Molesting the adverse party
 If there is No Showing that the lis pendens is Not Necessary to Protect the right of the party who
caused it to be registered
 Lis Pendens CANNOT be DISCHARGED by filing of a sufficient bond

TRANSMISSION by Descent and Devise

19
 Registered land or Interest therein is transferred to the Executor or Administrator of the Deceased upon
his death –
 WON the Owner died Testate or Intestate
 Prop is subject to same rules on Administration of Personal Prop
o Exceptions –
 Except as otherwise provided for by law, AND
 The rule on the division of the prop will be Provided by the Will of the deceased
 The Administrator is vested the Ownership Only as a Trustee
 True owners are the Testamentary or Legal Heirs

Assurance Fund
Theory of Assurance Fund
 Since registration & transfer of ownership under the Torrens System is effected by the State, AND
 Since registration transfers and vests an indefeasible title to the land
o The State creates a Fund for the Compensation of such pax who may be Injured by the
Divesting and Cutting-Off of rights under such statutory declaration

Pax Entitled to Compensation from the Assurance Fund

 Requisites / Elements for Entitlement –
 Claimant (an Owner, Purchaser or Encumbrancer in GOOD FAITH) must have Suffered ACTUAL
DAMAGE by the loss of the land or interest therein;
 Claimant is NOT NEGLIGENT
 Claimant is BARRED or Precluded in bringing an Action to Recover the land OR Obtaining
Compensation from pax responsible for the damage
 The action to recover from the insurance fund has NOT Prescribed
 The loss or damage is NOT Occasioned by a Breach of Trust OR Mistake in Resurvey OR
Subdivision of a reg land resulting in the Expansion of Area in the Cert of Title
 The Loss or Damage is DUE TO Any of the ff :
o Omission, Mistake or Misfeasance of the clerk of court or Reg of Deeds or LRA ees AND /
OR pax who committed Fraud or Other Wrongful Acts;
o Omission, Mistake or Misdescription if the Cert of Title or Owner’s Duplicate or in any
Entry in the register or day book
o Registration of another pax as Owner of such land;
o Any Cancellation
 Coverage of the Fund –
 Cases of Erroneous Registration due to Omission, Mistake or Malfeasance of govt ees charged
w/ the registration, AND
 Cases of Wrongful Deprivation w/o negligence on the part of the owner, thru the bringing of the
land under the provisions of the Land Registration Act

Vs Whom the Action is Filed

 Action to Recover for Loss or Damage or for Deprivation of Land shall be brought VS the ff –
 Private pax Involved in the Irregularity
 Registrar, AND
 National Treasurer (NOT an Indispensable party)
 Liability of Parties –
 Registrar and Private Pax – liab is Primary
o Execution must be 1st made on said parties
 Natl Treasurer – liab is Only SECONDARY
o Liab of Natl Treasurer arises Only when Execution on Registrar & Private pax has been
Returned Unsatisfied in Whole or in Part

Action for Damages or Reconveyance

 Remedy if land is Titled Erroneously –
20
  W/N 1yr from for Issuance of Title – file a PETITION for REVIEW, and
 EQUITABLE Remedy of Reconveyance of the prop to the rightful owner is available
o PROVIDED – the prop has NOT Yet been Transferred to an Innocent Purchaser for Value

What to Establish in Action for Damages due to Deprivation

 1st – claimant is in Reality WRONGFULLY Deprived of his land by its registration in the name of another
by Constructive or Actual Fraud
 2nd – there is NO NEGLIGENCE on the part of the claimant
 3rd – claimant is BARRED or Precluded from bringing action to recover the land
 4th – the Action for Compensation has NOT Yet PRESCRIBED
Recourse of Govt After Payment of Damages from the Assurance Fund
 If Natl Treasurer has Paid the Plaintiff for Damages –
 Govt shall be Subrogated to All Rights of the plt vs Any Other Parties or Securities

Measure of Damages
 Basis of Amount of Compensation from Assurance Fund –
 Amt NOT > the FMV of the prop At the Time of Loss, Damage or Deprivation thereof
o NOT Based on Assessed or Actual Value at the time of recovery

Cases Not Covered by the Assurance Fund

 Fund is NOT Liable for Loss or Damage caused by –
 Breach of Trust (Express, Implied or Constructive)
 Mistake in the Resurvey or Subdivision of a registered land resulting in the Expansion of the Area
in the Cert of Title
 Improper Exercise of any Sale in Mortgage Foreclosure proceedings
 Any Excess in FMV of the prop at the time of the loss, damage or deprivation thereof

Where and When to File Action vs the Assurance Fund

 Venue for Action vs Assurance Fund –
 ANY COURT of competent juris (in the city or province where the defendant or plaintiff resides at
the Election of the Plaintiff)
 RTC – if the Primary object of the action is to Nullify the Title AND the ALTERNATIVE Relief
sought is the recovery of damages from the assurance fund
 When to File –
 W/N 6yrs from the Time the Right to bring action 1st Accrued
o That is – from the time the plaintiff Actually suffered the Loss / Damage / Deprivation
 EXCEPTION to 6yr Rule on Filing – if plaintiff is a / an
o Minor
o Insane
o Imprisoned
 Plaintiff CAN file action ANYTIME W/N 2yrs from Removal of such Disability

Petitions and Motions AFTER ORIGINAL REGISTRATION

Loss, Destruction or Theft of TCT
 Process –
 File Sworn Statement of such loss w/ Reg of Deeds
 Reg of Deeds to REGISTER such affidavit
 File w/ Reg of Deeds the Petition for issuance of Duplicate Copy of TCT
o Petition TAKES the PLACE of Publication
 Effect –
 NO Publication on Notice of loss required
 ONLY Posting notifying such loss at the Premises of the Land

When Surrender of Owner’s Duplicate TCT is NOT ESSENTIAL

21
 When surrender is Not Required –
 In a Mortgage – when the Mortgagee has EXECUTED a Cancellation of Mortgage and the same
was filed w/ the Reg of Deeds
o If Mortgagee will Not Surrender the Duplicate to the owner –
 Remedy – File a Petition for Cancellation of the TCT and for the ISSUANCE of a
new TCT
 In Attachment Proceedings – when the sheriff FILES a Notice of Attachment w/ the Reg of Deeds
(it can be registered w/o showing the duplicate TCT)
 In Notice of Lis Pendens & Other Involuntary Dealings – party soliciting registration of the Notice
of Lis Pendens or other Involuntary Dealings need not present duplicate TCT
Adverse Claims in Registered Land
 Filing of Adverse Claim –
 File SWORN STATEMENT stating the Nature / Kind of Adverse Claim
o Affidavit is Entitled to Registration as an Adverse Claim in the books of Reg of Deeds
o Court to hear petition relating to adverse claim w/ dispatch
 If Claim is Invalid – registration of the adverse claim will be CANCELLED
 Lis Pendens – filed w/ Reg of Deeds to INFORM all of a PENDING LITIGATION
 Adverse Claim – filed w/ Reg of Deeds to INFORM all of a CLAIM over the prop that is ADVERSE
 Condition for Registration of Adverse Claim –
o Such Claim must NOT be REGISTRABLE Under the Land Regn Act such that it is
necessary to Register it as an Adverse Claim
 Registration is by way of ANNOTATION in the title
 What Adverse Claim can be Registered – a CLAIM that EXIST SUBSEQUENT / After and NOT
PRIOR to the Date of Original Registration
o If Claim Date is Otherwise – adverse claim CANNOT be Registered
 Requisites for Registration of Adverse Claim –
o Claim is ADVERSE to the owner
o Claim Arises AFTER original registration
o Claim CANNOT be REGISTERED under the Land Regn Act
 Effectivity of Adverse Claim is good Only for 30days
o Owner can File a w/ the Reg of Deeds a Petition for Cancellation of the Adverse Claim
AFTER 30days to remove such adverse claim from binding the land
 Upon cancellation of the Adverse Claim – NO 2nd Adverse Claim of the Same
Ground may be registered by the Same Claimant
o Rationale for 30day rule – as an Emergency Recourse in case the owner Attempts to Sell
the property immediately
 Nature & Purpose of Adverse Claim –
o A measure designed to PROTECT the interest of a person over a prop where regn of such
interest or right is NOT Provided by the Land Regn Act
o It serves as a NOTICE and WARNING to 3rd parties Dealing w/ said prop of the claim in
Interest or Better Right than the owner
 BOTH Lis Pendens AND Adverse Claim can be Filed Simultaneously OVER a SINGLE Prop –
 Rationale – while Both are intended to Protect the Interest of the claimant
o These 2 remedies are NOT CONTRADICTORY or Repugnant to each other
o The EXISTENCE of 1 will NOT Automatically NULLIFY the other
 Lis Pendens –
o REMAINS during the Pendency of the action and CAN be CANCELLED While Action is
still Pending
o Can be cancelled for Causes Attributable to the claimant
 Adverse Claim –
o CAN only be CANCELLED when the claims is Adjudged INVALID or UNMERITORIOUS
o More Permanent in nature and Cannot be Cancelled w/o hearing & disposition of the claim
 On Interest of Presumptive Heir –

22
  NOT Considered as Adverse Claim
 Interest is Successory in character AND Arises upon the Death of the parent

Petition Seeking Surrender of Duplicate Title

 On Request for Issuance of New TCT based on –
o Instrument purportedly Executed by the owner, OR
o Proceedings w/c Divest Title from the owner Against his Consent
 RULE – Reg of Deeds shall NOT ISSUE a New TCT IF the Outstanding TCT is NOT Presented
for Cancellation
o Pax claiming entitlement to the New TCT may Apply by Petition to the court
 Court will either Order the Surrender or Annulment of the Outstanding TCT
Amendment and Alteration of TCT
 RULE –
 OCT / TCT Cannot be ALTERED, AMENDED or CANCELLED Except in a Direct Proceeding
o No erasure, alteration or amendment may be made on the Registration Book AFTER the
Entry of a Cert of Title or Memorandum thereon EXCEPT by Order of the court
 How Amendment is Made –
 Petition is filed by owner or interested pax Entitled in the ORIGINAL Case w/c the decree of
registration was entered
o NO TIME LIMIT is fixed for filing of this kind of petition
 Grounds of Petition –
o That Registered Interest (whether contingent, expectant or inchoate) have CEASED or
TERMINATED, or
o That NEW INTEREST have Arisen or Created do NOT APPEAR in the certificate, OR
o That an Error, Omission or Mistake was made in Entering / Memorandum on the Cert or
on the Duplicate, OR
o The NAME of any Pax in the Cert of has CHANGED, OR
o That registered OWNER has MARRIED or that the Marriage has been TERMINATED, OR
o The Corporation w/ owned the land has been DISSOLVED and FAILED to Convey the
land w/n 3yrs from its dissolution, OR
o Other Reasonable Grounds
 NOTICE to ALL PARTIES is Essential for the court to Acquire Jurisdiction over the petition
 Correction of Errors in the TCT is PERMITTED Except when there is an Existing Controversy
o Ex of Existing Substantial Controversy –
 Cancellation of encumbrance where any of the parties thereto actively contest
o Ex of Errors – correction of errors in Boundary resulting from the use of more accurate
surveying equipment / techniques –
 PROVIDED – the Boundaries laid down in the Description enclosing the land and
indicating its limits are Not Changed
o NOT Correctible Error – mistake committed in survey w/c Served as Basis of the Decree
of Registration CANNOT anymore be corrected AFTER 1yr from the Entry of the Decree
 Authorized Alterations –
 Those that Do NOT IMPAIR the Rights recorded in the decree, OR
 Those, Even if it Prejudice such Rights, are CONSENTED by All Parties concerned, OR
 Those to Correct OBVIOUS MISTAKES

Reconstitution of an Original of the OCT / TCT

 Purpose of Reconstitution – to have the doc REPRODUCED in the Same Form it existed when the
Loss or Destruction occurred
 Reconstitution may be an ADMIN or JUDICIAL Remedy
 Admin Reconstitution – ONLY if Substantial Loss or Destruction of TCT in the CUSTODY of the
Reg of Deeds due to –
o Fire, Flood or Force Majeure

23
  At least 10% of records are lost AND that NO Less than 500 in number
 Judicial Reconstitution –
o Petition BY OWNER is to be filed w/ RTC
o Publication of petition is Required
o Posting at Prov Capitol and City / Mun Halls required
o Hearings will be held
 Nature of proceedings – IN REM and CANNOT be open for REVIEW Once it has
become Final
 Reservations may be Noted on the Reconstituted TCT
 Ex of Reservation – “subject to whatever encumbrance as may exist w/c for one reason or
another does not appear in said title”
 Reconstitution does NOT ALLOW placing it in Altered Form (Only Literal RESTORATION to Orig Form)
Registration of PUBLIC LANDS
Public Lands (defined) – public agri lands or otherwise know as Alienable or Disposable lands of the
public domain
 Concept of Public Lands Act –
 Presence of govt lands of the public domain that are alienable
 Said lands are awarded thru patents (sale or homestead)
 Difference vs the Registration of Private Lands –
 NO need to File Application for registration w/ court
 There is ONLY an ADMINISTRATIVE Process (no judicial process involved)
o Quasi-Judicial Officer determines the Qualification of the grantee
 On Issuance of Title Pursuant to Patents –
 Officer issuing the Instrument of Alienation, Grant, Patent or Conveyance shall File said doc w/
Reg of Deeds
 Cert of Title and Owner’s Duplicate will be ENTERED by Reg of Deeds
o The Deeds, Grant, Patent or Instrument of Conveyance will NOT Take Effect as
CONVEYANCE of the Land
 It will Only Operate as a CONTRACT between the Govt and the Grantee
 It will Only also Serve as EVIDENCE of Authority of the Reg of Deeds to make
registration
o It is the ACT of REGISTRATION that will Bind the Land
 After Registration and Issuance of Cert of Title – the land is Deemed REGISTERED for all
intents and purposes
 Imperfect Title (defined) – is when one is in the Possession of Alienable Public Land in the CONCEPT
of OWNER
 It is the Registration of such land that will PERFECT Title to it

Nature of Title Issued for Patented Lands

 OCT issued pursuant to any Grant or Patent – is CONCLUSIVE and INDEFEASIBLE As Any other OCT
issued for Private lands
 Effect of Registration of Homestead / Patent AND the Issuance of OCT –
 Vests on the Person an INCONTESTABLE Title to the land
 Title issued is Absolutely CONCLUSIVE and INDISPUTABLE
 Title is NOT Subject to COLLATERAL Attack
o In the Absence of Registration – Title to the land Covered by Patent, Sales or Homestead
is NOT PERFECTED and NOT INDEFEASIBLE
 When Patent becomes Indefeasible – ONLY when said Patent is REGISTERED w/ Reg of Deeds
 1yr AFTER the Issuance of an Order / Decree of Patent or Award – Title to the land becomes
INDEFEASIBLE
o W/N 1yr from Issuance of Order / Decree – Title may be Questioned on the SOLE Ground
of ACTUAL FRAUD
 Cases where there are 2 Titles –

24
  If Land Covered by Patent has been Previously Determined in favor of Another Pax THRU a
REGISTRATION Proceeding –
o Patent to the land is NOT INDefeasible
o Rationale – Title issued pursuant to a Decree of Registration is the one Conclusive and
Indisputable
 Between the 2 Titles apparently of Same Weight – the 1st title (issued to the other
pax) will Prevail
 If there are 2 Certs issued on Same Date (1st pursuant to patent, the other thru registration
proceeding) –
o Cert of Title issued Pursuant to a REGISTRATION PROCEEDING is of Higher Level than
the one issued pursuant to a Patent

 If there are 2 Certs issued to 1 Pax (1st pursuant to patent, the other thru judicial decree) and Pax
SOLD the 2 Titles –
o 1st to REGISTER will Prevail
 Public Lands Act is COMPLIMENTARY to the Torrens System of Registration –
 The land will eventually be Covered by the Torrens System
 Process of Registration of Public Lands –
 Issuance of Deed / Instrument / Grant or Patent by an administrative officer
 Registration of Deed / Inst / Grant or Patent w/ the Reg of Deeds
 Reg of Deeds Issues OCT and duplicate is given to the Grantee

Classification of Lands of Public Domain

 Who classifies public lands – EXCLUSIVE Prerogative of the Exec Dept (NOT the court)
 Classification of Lands of the Public Domain –
 Timber Lands
 Mineral Lands
 Alienable or Disposal Lands
o Agricultural
o Residential, commercial, industrial or similar productive purposes
o Education, charitable or other similar purposes
o Reservations for town sites and for public and quasi-public uses
 Lands w/o Known Owners – belong to the STATE under the REGALIAN Doctrine (Art XII Sec2 of 87
consti)
 If Pax has IMPERFECT Title –
o He has the Burden to Prove to OVERCOME the Presumption that land sought to be
registered is NOT PART of the Public Domain

Timber and Mineral Lands are NOT ALIENABLE

 Timber and Mineral Lands are NOT Alienable –
 Deemed part of the PUBLIC DOMAIN
 If Title is Issued on Timber and Mineral Lands –
 Title is VOID
 Possession of the land, NO Matter How Long, will NOT CONFER Title to the possessor
 Land CANNOT be Acquired by Prescription
 Innocent Purchaser for Value is NOT Protected – title must be Cancelled

Public Alienable Lands

 Modes of Alienating PUBLIC Agri Cultural Lands –
 For HOMESTEAD Settlement
 By SALE
 By CONFIRMATION of Imperfect or Incompetent Title
o Thru Judicial Legalization (filed w/ court)
25
 o Thru Administrative Legalization (free patent)
 By FREE GRANT –
o Free distribution of public agricultural lands
 On Agricultural Lands –
 Agri lands Include FISHPONDS
o Agriculture include vegetable, domestic / domesticated animals, animal products and fish
grown in ponds

Dir of Lands as Quasi-Judicial Officer

 Duties of Dir of Lands as Quasi-Jud Officer –
 Makes findings of facts
 Passes upon questions of Mixed Facts and Law
 Considers and Decides the Qualifications of the Applicants for purchase of agri lands
 On Decisions Rendered by the Dir of Lands –
 If such decision is Approved by the Sec Agri and Natural Resources –
o Decision is CONCLUSIVE
o Decision is NOT Subject to REVIEW by the courts in the ABSENCE of Showing of –
 Fraud
 Imposition
 Mistake
o Review of Decision is ONLY on the Ground of ERROR in Judgment in the EVALUATION
of Evidence –
 Provided there is some Evidence on w/c the Judgment was based
 Regardless of WON the Judgment is Consistent w/ the preponderance of evidence
 Purpose of Admin Investigation made by Dir of Lands –
o To determine WON Fraud has been Committed in Securing title to a public agri land

Confirmation of IMPERFECT or Incomplete Title by JUDICIAL Legalization

 Period for Application to Perfect Title by Judicial Legalization HAS ALREADY EXPIRED on 31 Dec 87
 Current Applicable Mode of Acquiring Land of Public Domain –
 ONLY thru ACQUISITIVE PRESCRIPTION –
o Open, Continuous, Exclusive and Notorious POSSESSION and OCCUPATION of a LAND
of the Public Domain SUITABLE for Agriculture WON Disposable
 UNDER CLAIM of OWNERSHIP for a period of at least 30yrs
 Occupation has began since 12 June 1945

Restrictions in the Disposition of Homestead, Free Patent and Individual Purchase

 Limitation on Lands Acquired under Free Patent or Homestead –
 W/N 5yrs from the Date of Issuance of the Patent or Grant –
o Land CANNOT be Subject to Encumbrances or Alienation
o Land CANNOT be Liable to satisfy any Debt Contracted Prior to the expiry of said period
 Except in Favor of the Govt, its branches or institutions
o If Land is Sold w/n the Prohibited Period of 5 yrs –
 Sale is VOID
 Void Even if there is a Subsequent Approval by the DENR Sec After the
lapse of the 5yr period
 AFTER 5 yrs from Issuance of Patent AND W/N 25 yrs AFTER the Issuance of the TITLE –
o Land can be Alienated, Transferred or Conveyed PROVIDED there is Approval by the
DENR Sec
 Approval CANNOT be Denied Except on consti and legal grounds
 Sale made w/n the 25yr period is NOT VOID even if the Approval of DENR Sec
comes only Subsequent to the Sale (because such approval cannot be denied)

26
 o Alienation, Transfer or Conveyance W/N the 25yr period is SUBJECT to REPURCHASE
by the Seller or his Heirs –
 WITHIN 5yrs from the Date of Execution of the Deed of Sale or Conveyance
 Rationale of Rule – to preserve and keep in the family of the homesteader that
portion of public land w/c was gratuitously given by the State
 Effect if Illegal Sale of Homestead –
 The principle of in Pari Delicto is NOT APPLICABLE
 Sale is NULL and VOID and INEXISTENT
 Vendor is deemed to have NEVER LOST Title or Ownership
o There is NO NEED for vendor to Repurchase the land from the Buyer BUT there must be
MUTUAL RESTITUTION
 Action to Recover the land Does NOT PRESCRIBE

CADASTRAL Registration Proceedings

Cadastral System (defined) –
 The Adjudication of Titles for the land W/N a Stated Area
o WON the people living w/n the said area desire to have Titles issued
 Pursuant to the Initiative of the Govt
 Purpose of Cadastral System –
 To hasten and Accelerate the registration of lands

Nature of Cadastral Proceedings

 Nature of Proceedings –
 IN REM proceedings (requires Publication, Hearing and Presentation of Evidence)
 Similar to a Judicial Inquiry and Investigation leading to a Judicial DECREE
 There is NO PLAINTIFF and NO DEFENDANT
o But Govt serves a Plaintiff and Claimants act as Defendants

Procedure in Cadastral Cases

 Conduct of Cadastral SURVEY –
 Dir of Lands make the survey and make survey plans
 Lands are surveyed and plotted
 Parcels or lots resulting in the survey are given respective cadastral numbers
 Filing of PETITION –
 Dir of Lands initiate by Filing a Petition in court VS Holders, Claimants, Possessors or Occupants
of the land
 PUBLICATION of NOTICE of Initial Hearing –
 LRA causes publication Once in the Official Gazette AND Once in a Newspaper of gen circulation
 Copies of Notice are Mailed to Every Pax named in the notice
 Copies are also Posted in conspicuous places designated by law
 Filing of ANSWER –
 Pax claiming interest in the land that is the object of the petition is required to file an Answer
o Filing of Answer is Equivalent to an Application for Registration of the land
o Filing of Answer Suspends the Running of the period of prescription
 HEARING of the Petition –
 Conflicting interest are determined by the court
 Lots claimed are Awarded to pax who prove to be the Rightful Owners of the land
 If NOBODY can Prove Title to the land – court will Declare the land as Land of Public Domain
o Declaration of the court is RES JUDICATA
 DECISION –
 All cadastral Claimants will be Notified by the court of its Decision
 ISSUANCE of DECREE and CERTIFICATE of TITLE –
27
  Upon finality of Judgment – LRA enters a Decree of Registration to pax entitled to the land
o Decree becomes the Basis for Issuance of OCT w/c has the same effect as OCT issued
on an application for registration of the land
 Pax has 1yr from the Date of Entry of the Decree to REOPEN the Case on the SOLE GROUND of
ACTUAL FRAUD
 Effect of Title Conferred –
o Protects ONLY the Holder in Good Faith of such title
o Protection conferred by Cadastral Act is THE SAME as that of the LAND REG ACT

Determination of Conflicting Claims

 Conflict as to RELATIVE Weight or Priority between OCTs Issued in ORDINARY vs CADASTRAL Reg
 Cadastral Court has JURIS to Determine and Decide on the conflict
 Cadastral Court CANNOT Order the Issuance of a New Final Decree –
o It Only has the power to CANCEL BOTH Certs of Title and the ISSUANCE of a New TCT
based on the Result of the Cadastral Survey
Comparison of Cadastral Proceeding vs Ordinary Registration Proceeding
 As to Party Initiating –
 Ordinary – OWNER-CLAIMANT of the land files a application
 Cadastral – GOVERNMENT initiates by filing a petition in court
 As to Subject Matter –
 Ordinary – covers PRIVATE Lands
 Cadastral – covers PRIVATE, Public AGRI and Other Lands of Public Ownership
 As to Ownership –
 Ordinary – PAX claims to Own land and merely asks for Confirmation of his title
 Cadastral – GOVT Does NOT ASSERT Ownership of the land but merely Provokes Settlement
and Adjudication of the title
 As to Survey –
 Ordinary – done at the instance and acct of the Private Applicant
 Cadastral – Govt undertakes the survey and advances expenses thereto
 As to Risk –
 Ordinary – Insufficient Proof of ownership will only Result a Dismissal W/O PREJUDICE
o Claim can be Refiled
 Cadastral – Insufficient Proof of ownership will Result to a Declaration of the land as PUBLIC land
o Judgment is CONCLUSIVE and is RES JUDICATA
o Claim CANNOT be Refiled
 Other Differences –
 In Public Land Act – Govt has the PRESUMPTION of Ownership of the land
 In Cadastral Land Act – Govt Does NOT have the PRESUMPTION of Ownership of the land
o Govt merely Provokes the Settlement and Adjudication of title to the land

Reopening of Cadastral Proceedings

 Period of Reopening of Cadastral Proceedings has ALREADY LAPSED – up to 31 Dec 68 ONLY

Award of Damages by Cadastral Court

 Cadastral Court has NO AUTHORITY to AWARD DAMAGES
 Powers of the Cadastral Court are confined Only to the –
o Determination of entitlement of claimants, AND
o Confirmation of Title and Registration of the lots to the name of the Claimants

System of Registration for UNREGISTERED LANDS

Scope of the System of Registration for UNREG Lands (Act 3344)
 Transactions affecting lands NOT previously Registered under either the –
o Spanish Mortgage Law, or

28
 o Torrens System
 Nature of the Registration of UNREG Lands (under Act 3344)–
 Registration is Purely VOLUNTARY
o Reg of Deeds is NOT Authorized to register any transaction UNLESS the Parties have
EXPRESSLY Agreed in the doc / deed to Register their transaction under this system

Efficacy of the System of UNREG Lands vs Other Systems of Registration

 In Spanish Mortgage Law – titles recorded in said system CANNOT be Annulled or Invalidated by Prior
UNRecorded rights
 In Land Registration Act – only Transactions NOTED on the Cert of Title and REGISTERED in the
books CAN BIND the Land
 In System for UNREG Lands – transactions Registered CANNOT Defeat a 3rd Pax w/ a Better Right
 Rationale – recordings under UNREG Land system is NOT PRECEDED by any Investigation
(judicial or admin) as to the Validity or Efficacy of the title sought to be recorded

Registration of Deeds under Act 3344

 Validity of Transaction vs 3rd Persons –
 As Between Parties – UNRECORDED contract affecting UNREG lands is Valid
 As to 3rd Parties – doc Becomes VALID ONLY when REGISTERED in the Reg of Deeds in
the book where Transactions for UNREG Lands are registered
 Effect of Registration of Transaction affecting UNREG Lands –
 W/O PREJUDICE to 3rd parties w/ BETTER RIGHT
o Registration of transaction YIELDS to Pax w/ a Better Right of a 3rd party
 Better Right (defined) –
 Right ACQUIRED INDEPENDENTLY by 3rd party
o EX – Title by Prescription

Effect of a Registered Sheriff’s Sale under the System for UNREG Lands
 Registration of Sheriff’s SALE has NO USEFUL PURPOSE
o Provisions of Act 3344 DO NOT APPLY to judicial sales
o Notices of Levy and Execution Sale are legally INEFFECTIVE and CANNOT BIND the
prop for purposes of execution
 Registration Does NOT GIVE an ABSOLUTE Right or Title to the Registrant / Buyer

Effect of Registration of Transactions

 Registration of Transaction affecting UNREG Lands – creates a CONSTRUCTIVE NOTICE and BINDS
SUBSEQUENT 3RD Parties who may deal w/ the land
 Rule on Double Sales of UNREG Lands –
 Same as the Law on Double Sale of Real Property
o 1st in REGISTRATION has a Better Right over the prop

- end -

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