Land Titles

ATENEO CENTRAL BAR OPERATIONS 2007 Civil Law SUMMER REVIEWER

LAND TITLES LAND TITLE is the evidence of the owner’s right or extent of interest, by which he can maintain control and as a rule assert right to exclusive possession and enjoyment of property. DEED is the instrument in writing by which any real estate or interest therein is created, alienated, mortgaged, or assigned, or by which title to any real estate may be affected in law or equity. LAND REGISTRATION is a judicial or administrative proceeding whereby a person’s claim over a particular land is determined and confirmed or recognized so that such land and the ownership thereof may be recorded in a public registry. TORRENS SYSTEM is a system for registration of land under which, upon the landowner’s application, the court may, after appropriate proceedings, direct the issuance of a certificate of title. Legarda v. Saleeby, 31 Phil 590 (1915) PURPOSES: QUIP-CC 1. To quiet title to the land and to stop forever any question as to the legality of said title 2. To relieve the land of unknown claims 3. To guarantee the integrity of land titles and to protect their indefeasibility once the claim of ownership is established and recognized 4. To give every registered owner complete peace of mind 5. To issue a certificate of title to the owner which shall be the best evidence of his ownership of the land 6. To avoid conflicts of title in and to real estate and to facilitate transactions. Capitol Subdivision, Inc. v. Province of Negros Occidental, 7 SCRA 60 (1963) The registration of property is to: (1) avoid possible QuickTime™ a conflicts of title in and to and real property, and (2) TIFF (Uncompressed) decompressor are neededrelative to see this picture. facilitate transactions thereto by giving the public the right to rely upon the face of the Torrens certificate of title and to dispense with the need of inquiring further, EXCEPT when the party concerned has actual knowledge of facts and circumstances that should impel a reasonably cautious man to make such further inquiry.

NATURE OF TORRENS SYSTEM • Judicial in character and not merely administrative • Proceeding is in rem (binding upon the whole world) CONCEPT OF TORRENS SYSTEM • Does not create or vest title • Only confirms (does not confer) ownership TORRENS TITLE is a certificate of ownership issued under the Torrens System, through the Register of Deeds, naming and declaring the owner of the real property described therein, free from all liens and encumbrances except such as may be expressly noted there or otherwise reserved by law. • •

GENERAL RULE: A title once registered cannot be impugned, altered, changed, modified, enlarged, or diminished EXCEPTION: Direct proceeding permitted by law, usually for the protection of innocent third persons

PROBATIVE VALUE OF THE TORRENS TITLE • Torrens Title may be received in evidence in all courts in the Philippines, and shall be conclusive as to all matters contained therein, principally as to the identity of the land owner except so far as provided in the Land Registration Act. TYPES OF TORRENS CERTIFICATES OF TITLE 1. Original Certificate of Title: the first title issued in the name of the registered owner by the Register of Deeds (ROD) covering a parcel of land which had been registered by virtue of a judicial or administrative proceeding. 2. Transfer Certificate of Title: the title issued by the ROD in favor of the transferee to whom the ownership of the already registered land had been transferred by virtue of a sale or other modes of conveyance. MODES OF ACQUIRING TITLE: 1. Public Grant • A conveyance of public land by government to a private individual 2. Acquisitive • Must be OCEN: in open, Prescription continuous, exclusive, and

—Adviser: Dean Cynthia Roxas-Del Castillo; Heads: Joy Marie Ponsaran, Eleanor Mateo; Understudies: Joy Stephanie Tajan, John Paul Lim; Subject Head: Shelly Lim; Pledgees: Nicole Batingana, Timothy Joseph Lumauig—

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 notorious possession If in good faith & with just title: 10 yrs. uninterrupted possession is required • If in bad faith & without just title: 30 yrs. continuous possession is required • Only available if the land possessed is public land that is alienable and disposable • A property registered under the provisions of PD 1529 is not subject to prescription • Prescription is unavailing not only against the registered owner, but also against his hereditary successors Requisites: 1. The deposit of soil or sediment be gradual and imperceptible, 2. It is the result of the curret of the waters (river/sea), and 3. The land where accretion takes place is adjacent to the banks of rivers or the sea coast • Accretion to registered lands need new registration • No human intervention • The current causing the alluvial deposit must be from a river. If it is from the sea, the deposit will pertain to the state. (Government of the Phils. v. Cabangis 53 phil 112 [1929]) • Filling of submerged land by deliberate act and reclaiming title thereto • Must be initially owned by government QuickTime™ and a TIFF•(Uncompressed) decompressor May be subsequently are needed to see this picture. transferred to private owners • Private grant • Voluntary execution of deed of conveyance • Contractual relationship between the parties • Consensual •

3. Accretion

4. Reclamation

5. Voluntary Transfer

6. Involuntary Alienation

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7. Descent or Devise

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8. Emancipation Patent/Grant (Certificate of Land Ownership Award)

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No consent from the owner of land Forcible acquisition by the State Hereditary succession to the estate of deceased owner To ameliorate the sad plight of tenant-farmers Such grant is not transferable except by hereditary succession

LAWS IMPLEMENTING LAND REGISTRATION 1. Property Registration Decree (P.D. 1529, as amended) 2. Cadastral Act (Act 2259, as amended) 3. Public Land Act (Commonwealth Act 141, as amended) 4. Emancipation Decree (P.D. 27, as amended) 5. Comprehensive Agrarian Reform Law of 1988 (R.A. 6657, as amended) ADMINISTRATION OF THE TORRENS SYSTEM 1. LAND REGISTRATION AUTHORITY (LRA) • Agency charged with the efficient execution of the laws relative to the registration of lands, under the executive supervision of the DOJ • Consists of an Administrator assisted by 2 Deputy Administrators FUNCTIONS OF THE LRA: SAC 1. Extend speedy and effective assistance to the Dept. of Agrarian Reform, the Land Bank, and other agencies in the implementation of the land reform program of the government 2. Extend assistance to courts in ordinary and cadastral land registration proceedings 3. Be the central repository of records relative to original registration of lands titled under the Torrens system, including the subdivision and consolidation plans of titled lands 2. REGISTER OF DEEDS (ROD) • Constitutes a public repository of records of instruments affecting registered or unregistered lands and chattel mortgages in the province or city wherein such office is situated • Headed by the Register of Deeds, assisted by a Deputy

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 FUNCTIONS OF THE ROD: IPDI 1. Immediately register an instrument presented for registration dealing with real or personal property which complies with the requisites for registration 2. Shall see to it that said instrument bears the proper documentary and science stamps and that the same are properly cancelled 3. If the instrument is not registerable, he shall deny the registration thereof and inform the presentor of such denial in writing, stating the ground or reason therefore, and advising him of his right to appeal by consulta in accordance with Sec. 117 of PD 1529 4. Prepare and keep an index system which contains the names of all registered owners and lands registered Baranda v, Gustilo, 165 SCRA 757 (1988) The function of the ROD with reference to registration of deeds, encumbrances, instruments, and the like is ministerial in nature. Ledesma v. Villaseñor, 13 SCRA 494 (1965) It is enough that in the ROD’s opinion an instrument is registrable for him to register it. The act being an administrative act does not contemplate notice to and hearing of interested parties. Almirol v. ROD of Agusan, G.R. No. L-22486, Mar. 20, 1968 The determination of whether a document is valid or not is a function that belongs to a court of competent jurisdiction, and not to the ROD. Balbin v. ROD, 28 SCRA 12 (1969) Instances when the ROD may validly deny registration of a voluntary instrument: 1. Where there are more than 1 copy of the owner’s duplicate certificate of title and not all such copies are presented to the ROD 2. Where the voluntary instrument bears on its face an infirmity 3. Where the validity of the instrument sought to be QuickTime™ and a TIFF (Uncompressed) decompressor registered is in issue in ato see pending are needed this picture. court suit a. Notice of pending suit must be given to parties b. Registration may be suspended Gallardo v. IAC, 155 SCRA 248 (1987) The ROD may also refuse to register a private document since Section 112 of PD 152 provides that deeds of conveyances affecting lands should be

verified and acknowledges before a notary public or other public officer authorized by law to take acknowledgement. NOTE: When the ROD is in doubt as to the proper action to take on an instrument or deed presented to him for registration, he should submit the question to the Administrator of the LRA en consulta (Section 117, PD 1529). NON-REGISTRABLE PROPERTIES Article 420 1. Those intended for public use, NCC such as roads, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character 2. Those which belong to the State, without being for public use, and are intended for some public service or for the development of the national wealth. Arts. 5 & 6, 1. Rivers and their natural beds; Water Code 2. Continuous or intermittent (PD 1067 ) waters of springs and brooks running in their natural beds and the beds themselves; 3. Natural lakes and lagoons; 4. All other categories of surface waters such as water flowing over lands, water form rainfall whether natural or artificial, and water from agriculture runoff, seepage and drainage; 5. Atmospheric water; 6. Subterranean or ground water; 7. Seawater; Found in private lands: 8. Continuous or intermittent waters rising on such lands; 9. Lakes and lagoons naturally waters rising on such lands; 10. Rain water and falling on such lands; 11. Subterranean or ground waters; and 12. Waters in swamps and marshes Regalian Forest or timberland, public forest, Doctrine under forest reserves lands, mineral the 1935, 1973, lands and 1987 Constitution

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Bureau of Forestry v. CA, 153 SCRA 351 (1987) As provided for under Sec. 6 of CA 141, which was lifted from Act 2874, the classification or reclassification of public lands into alienable or disposable, mineral, or forest lands is now a prerogative of the Executive Department of the government and not the courts. With these rules, there should be no more room for doubt that it is not the court which determines the classification of lands of the public domain into agricultural, forest or mineral but the Executive Branch of the government, through the Office of the President. Republic v. Vera, 120 SCRA 210 (1983) A parcel of forest land is within the exclusive jurisdiction of the Bureau of Forestry and beyond the power and jurisdiction of the cadastral court to register under the Torrens system. Republic v. Heirs of Felipe Alejaga, Sr. 393 SCRA 361 (2002) The State has an imprescriptible right to cause the reversion of a piece of property belonging to the public domain if title has been acquired through fraudulent means. Republic v. Southside Homeowners Association Inc. (SHAI) G.R. No. 156951 & 173408, Sep. 22, 2006 FACTS: Proclamation No 423 which established a military reservation known as Fort William McKinley – later renamed Fort Bonifacio Military Reservation, was issued by former President Carlos Garcia. Areas specified in the Proclamation were withdrawn from sales and settlements and were reserved for military purposes. Several presidential proclamations would later be issued excluding certain defined areas from the operation of Proclamation 423. What is mainly sought to be declared as a nullity in this petition is the title over the parcels of land that are referred to as JUSMAG housing are in Fort Bonifacio being occupied by active and retired military officers and their families. SHAI , a non-stock QuickTime™ and a TIFF (Uncompressed) decompressor corporation organized mostly bythiswives are needed to see picture. of AFP military officers, was able to secure title in its name over the bulk, if not the entire, JUSMAG area. The TCT was issued by the Rizal Registry on the basis of a notarized deed of sale purportedly executed by then Land Management Bureau Director Abelardo Palad Jr. The investigation conducted by the DOJ, however, reported land scams at the FBMR and also finding that the signature of Palad was forged.

In 1993, then Pres Ramos ordered the OSG to institute an action towards the cancellation of TCT 15084 in SHAI’s name as well as the title acquired by the Navy Officer’s Village Association (NOVA) over a bigger parcel of land within the reservation. ISSUE: Whether the land sold was alienable. HELD: NO. As regards the issue of inalienability, the Court upheld the contention of the Republic that the JUSMAG area is inalienable, the same having not effectively been separated from the military reservation and declared as alienable and disposable. Until a given parcel of land is released from its classification as part of the military reservation zone and reclassified by law or by presidential proclamation as disposable and alienable, its status as part of a military reservation remains, even if incidentally it is devoted for a purpose other than as a military camp or for defense. SHAI had not pointed to any proclamation or legislative act for that matter segregating the property from the reservation and classifying the same as alienable lands of public domain. Furthermore, the Constitution also forbids private corporations from acquiring any kind of alienable public land except through lease for a limited period. The whole conveyance process was also suspicious since the whole process was accomplished only in one day. TYPES OF REGISTRATION: 1. Original Registration 2. Subsequent Registration ORIGINAL REGISTRATION UNDER PD 1529 is a proceeding brought before the RTC (as a land registration court) to determine title or ownership of land on the basis of an application for registration or answer by a claimant in a cadastral registration. KINDS OF JUDICIAL REGISTRATION: 1. Judicial/Voluntary/Ordinary – by filing with the proper court; application by the private individual himself 2. Administrative/Involuntary/Cadastral – compulsory registration initiated by the government PROCEDURE IN ORDINARY LAND REGISTRATION: SFD-TP-SAHJ-DECT 1. Survey of land by the Bureau of Lands or a duly licensed private surveyor a. Survey plan must be duly approved by the Page 273 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Director of Lands. 2. Filing of application for registration by the applicant a. With all muniments of titles and copies thereof with survey plan approved by Bureau of Lands MUNIMENTS OF TITLE are instruments or written evidence which applicant holds or possesses to enable him to substantiate and prove title to his estate b. Always filed at the RTC of the place where land is situated c. Indorsed to the MTC if there is no controversy over the land or if its value is less than 100,000 d. In cases of delegated jurisdiction to the MTC, appeal is directed to the CA e. If land is situated between boundaries of 2 provinces, application must be filed: • When boundaries are not defined: in the RTC of the place where it is declared for taxation purposes; • When boundaries are defined: separate plan for each portion must be made by a surveyor and a separate application for each lot must be filed with the appropriate RTC 3. Setting of the date of initial hearing of application by the RTC a. Within 5 days, set hearing 45-90 days from date of order 4. Transmittal of the application and the date of the initial hearing, with all the documents or other evidences attached thereto, by the Clerk of Court to the LRA 5. Publication of notice of the filing of the application and the date and place of the hearing in the Official Gazette required are • The three notices mandatory. a. Publication of notice of initial hearing i. Once in the Official Gazette (this confers jurisdiction upon the court) ii. Once in a newspaper of general circulation • Purpose of publication: QuickTime™ and a over the land - To TIFF confer jurisdiction (Uncompressed) decompressor needed to seethe this picture. appliedarefor upon court - To charge the whole world with knowledge of the application of the land involved, and invite them to take part in the case and assert and prove their rights over the subject land b. Mailing • Within 7 days after publication of said notice in the OG, mailing of notice to:

i. ii.

6.

7. 8. 9. 10.

11.

12. 13.

Persons named in the notice Sec. of Public Highways, Provincial Governor, and Mayor, if the applicant requests to have the line of a public way or road determined iii. Sec. of Agrarian Reform, Solicitor General, Director of Lands, Director of Fisheries, and Director of Mines, if the land borders on a river, navigable stream, or shore, or on an arm of the sea where a river or harbor lies iv. Other persons as the court may deem proper c. Posting • Posting in conspicuous place on subject land and on bulletin board of municipal building at least 14 days before initial hearing Service of notice by the sheriff upon contiguous owners, occupants and those known to have interests in the property Filing of answer to the application by any person whether named in the notice or not Hearing by the court Promulgation of judgment by the Court Issuance of the decree declaring the decision final and instructing the LRA to issue a decree of confirmation and registration • DECREE– issued by LRA after finality of judgment; contains technical description of land. i. Decrees dismissing application ii. Decrees of confirmation and registration • Subject only to appeal Entry of the decree of registration in the LRA • 1 year after the date of entry, it becomes incontrovertible and amendments will not be allowed except clerical errors. It is deemed conclusive as to the whole world. • Puts an end to litigation • Purpose of Torrens system is protected Sending a copy of the decree of registration to the corresponding ROD Transcription of the decree of registration in the registration book and issuance of the owner’s duplicate original certificate of title to the applicant by the ROD upon payment of the prescribed fees

NOTE: Noncompliance with the requisites will make the Certificate of Title (CT) issued invalid and cancellable by the courts. WHO MAY APPLY IN ORDINARY REGISTRATION PROCEEDINGS UNDER PD 1529: OPAL Page 274 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 1. Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive, notorious possession of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12, 1945 or earlier 2. Those who acquired ownership of private land by prescription under the provisions of existing laws 3. Those who acquired ownership of private lands or abandoned river beds by right of accession or accretion under the existing laws 4. Those who have acquired ownership of land in any manner provided for by law NOTE: All these persons must be natural-born Filipino citizens. However, by way of exception juridical persons may apply for registration of leased agricultural and disposable lands not exceeding 1,000 hectares in area for a period of 25 years and renewable for not more than 25 years (Sec. 3, Article XII, 1987 Constitution), and except when the land has been previously acquired by prescription by a natural person and subsequently transferred to a juridical entity (in this case, a corporation may apply for judicial confirmation of title). LIMITATION TO OWNERSHIP OF LAND BY CORPORATION: 1. Private Lands a. At least 60% Filipino (Sec. 7, Article XII, 1987 Constitution) b. Restricted as to extent reasonably necessary to enable it to carry out purpose for which it was created c. If engaged in agriculture, it is restricted to 1,024 hectares. 2. Patrimonial Property of the State (Sec. 3, Article XII, 1987 Constitution) a. Lease (CANNOT own land of the public domain) for 25 years renewable b. Limited to 1,000 hectares c. Apply to both Filipinos & foreign corporations PERSONS WHO CANNOT PROPERLY FILE AN APPLICATION FOR REGISTRATION OF LAND: QuickTime™ and a TIFF (Uncompressed) decompressor PMAP are needed to see this picture. 1. Public land sales applicant admits he is not the owner in his application 2. Mortgagee or his successor-in-interest to the mortgage when mortgage is assigned (pactum commissorium) 3. Antichretic creditor since he holds not in the concept of an owner 4. Person or entity whose claim of ownership to

land had been previously denied in a reivindicatory action and the right of ownership thereto of another is upheld by the courts FORM OF THE APPLICATION (Sec. 15, PD 1529) • In writing • Signed by the applicant or person duly authorized in his behalf • Sworn to before an officer authorized to administer oath for the province or city where the application was actually signed • If there is more than 1 applicant, they shall be signed and sworn to by and in behalf of each. CONTENTS OF APPLICATION (Sec. 15, PD 1529): D-CAEM-ARF 1. Description of the land applied for together with the buildings and improvements; the plan approved by Director of Lands and the technical descriptions must be attached 2. Citizenship and civil status of the applicant • if married, name of spouse, and • if the marriage has been legally dissolved, when and how the marriage relation was terminated 3. Assessed value of the land and the buildings and other improvements based on the last assessment for taxation purposes 4. Mortgage or encumbrance affecting the land or names of other persons who may have an interest therein, legal or equitable 5. Manner of acquisition of land 6. Full names and addresses of all occupants of the land and those of the adjoining owners, if known, and if not known, the applicant shall state the extent of the search made to find them 7. If the application describes the land as bounded by a public or private way or road, it shall state whether or not the applicant claims any portion of the land within the limits of the way or road, and whether the applicant desires to have the line of way or road determined (Sec. 20, PD 1529) 8. The court may require facts to be stated in the application in addition to those prescribed by the Decree not inconsistent therewith and may require the filing of additional papers 9. If the applicant is a non-resident of the Philippines, he shall file an instrument appointing an agent residing in the Phils. and shall agree that service of any legal process shall be of the same legal effect as if made upon the applicant within the Philippines (Sec. 16, PD 1529) Page 275 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 WHERE TO FILE APPLICATION • GENERAL RULE: RTC of the province or city where the land is situated. − File together with application all original muniments of titles or copies thereof and a survey plan of the land approved by the Bureau of Lands Averia v. Caguioa, 146 SCRA 459 (1986) PD 1529 has eliminated the distinction between the general jurisdiction vested in the RTC and the limited jurisdiction conferred upon it by the former law when acting merely as land registration court. Aimed at avoiding multiplicity of suits, the change has simplified registration proceedings by conferring upon the RTCs the authority to act not only on original applications but also those filed after original registration, with power to hear and determine all questions arising upon such applications or petitions. •

If there are several parcels of land situated in different provinces/cities but belong to one owner, he must file in RTC of each province/city where different parcels of land are located for registration purposes • EXCEPTION: Delegated jurisdiction of the MTC to hear and determine cadastral or land registration cases covering lots where − there is no controversy or opposition, or − contested lots, the value of which does not exceed 100,000

AMENDMENTS IN ORDINARY REGISTRATION PROCEEDINGS 1. Striking out one or more The court may strike of the parcels of land out at any time applied for or by a severance of the application 2. Substantial change in New technical boundaries, increase in description and new area, inclusion of publication and notice additional land are necessary 3. Joinder, substitution, or File motion with court QuickTime™ and a TIFF (Uncompres sed) decompressor discontinuance of any of are needed to see this picture. the parties 4. Decrease in area File motion with court; no need for new publication or notice Benin v. Tuason, 57 SCRA 531 (1974) Under Section 23 of Act 496, the registration court may allow, or order an amendment of the application

for registration when it appears to the court that the amendment is necessary and proper. Under Section 24 of the same act, the court may at anytime order an application to be amended by striking out one or more parcels or by severance of the application. The amendment may be made in application or in the survey plan, or in both since the application and survey plan go together. If the amendment consists in the inclusion in the application for registration an area or parcel of land not previously included in the application for registration of an area or parcel of land not previously included in the original application, as published, a new publication of the amended application must be made. The purpose of the new publication is to give notice to all persons concerned regarding the amended application. Without a new publication, the registration court cannot acquire jurisdiction over the area or parcel of land that is added to the area covered by the original application, and the decision of the registration court would be a nullity insofar as the decision concerns the newly included land. The reason is because without a new publication, the law is infringed with respect to the publicity that is required in registration proceedings, and third parties who have not had the opportunity to present their claim might be prejudiced in their rights because of failure of notice. But if the amendment consists in the exclusion of a portion of the area covered by the original application and the original plan as previously published, a new publication is not necessary. In the latter case, the jurisdiction of the court is not affected by the failure of a new application. DOCTRINE OF NON-COLLATERAL ATTACK OF DECREE OR TITLE • A decree of registration and registered title cannot be impugned, enlarged, altered, modified, or diminished either in collateral or direct proceeding after the lapse of the 1-year period prescribed by the law. If transaction is BEFORE Issuance of Decree • Record instrument in ROD in same manner as if no application was made • Present instrument to RTC, with a motion praying that the same be

If transaction is AFTER Issuance of Decree • Register directly with ROD for purpose of canceling such title and issuing a TCT

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 considered in relation to the pending application REQUISITES OF OPPOSITION: 1. Set forth objections to the application 2. State interest claimed by oppositor 3. Apply for the remedy desired 4. Signed and sworn to by him or by some other duly authorized person GENERAL DEFAULT When no person appears and answers within time prescribed

SPECIAL DEFAULT When a party appears at initial hearing without having filed an answer and asks court for time to file answer but failed to do so within period allowed

JUDICIAL CONFIRMATION OF IMPERFECT OR INCOMPLETE TITLE UNDER THE PUBLIC LAND ACT • In rem, judicial proceedings • The decree of registration issued is conclusive and final • Governed by court procedure and law of evidence WHEN TO FILE • Extended up to December 31, 2020, as provided in Sec. 2 of RA 9176 Director of Lands v. Abairo, 90 SCRA 422 (1979) FACTS: Petitioner contended that CFI of Isabela should have dismissed the application for registration based on an imperfect or incomplete title because it has no jurisdiction over it inasmuch as it was filed on March 1, 1971, that is, after December 31, 1968, the expiry date for filing such kind of application under RA 2061. The latest extension of the period to December 31, 2020 within which to file said applications, as provided in Sec. 2, RA 9176, shall apply where the area applied for does not exceed 12 hectares. QuickTime™ and a

TIFF (Uncompressed) decompressor ISSUE: are needed to see this picture. Whether or not the application is valid despite being filed after the period expired and before the extension was granted.

HELD: YES. It is clear from the law itself that those who applied for judicial confirmation of their title at any time prior to the cut-off date of December 31,

1976 did so on time, even if such application was filed during the intervening period from January 1, 1969 to June 18, 1971. Respect should be given to the obvious intention of the lawmaker in extending the period for filing such applications time and again, to give full opportunity to those who are qualified under the law to own disposable lands of the public domain and thus reduce the number of landless among the citizenry.

LIMITATION TO AREA APPLIED FOR: • Maximum of 12 hectares (Sec. 3, RA 6940) WHO MAY BE APPLICANTS: FFPL 1. Filipino citizens who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bona fide claim of acquisition since June 12, 1945, or prior thereto, or ever since time immemorial (Oh Cho v. Dir. Of Lands, 75 Phil 890 [1946]) 2. Filipino citizens who by themselves or through their predecessors-in-interest have been, prior to the effectivity of PD 1073 (January 25, 1977), in open, continuous, exclusive and notorious possession and occupation of agricultural lands of the public domain under a bona fide claim of acquisition of ownership, for at least 30 years, or at least since January 24, 1947 (RA 1942, Dir. Of Lands v. IAC and ACME, 146 SCRA 509 [1986]). 3. Private corporations or associations which had acquired lands, formerly part of the alienable and disposable lands of the public domain, from Filipino citizens who had possessed the same in the manner and for the length of time indicated in 1 and 2 above (Dir. Of Lands v. IAC and ACME, 146 SCRA 509 [1986]). 4. Natural born citizens of the Philippines who may have lost their Philippine citizenship, who have acquired disposable and alienable lands of the public domain from Filipino citizens who had possessed the same in the manner and for the length of time indicated in 1 and 2 above (Republic v. CA, 235 SCRA 567 [1994]). NOTE: A private corporation may institute confirmation proceedings under Sec. 48(b) of CA 141 if at the time of the institution of the registration proceedings, the land was already private land (Director of Lands v. IAC and ACME, 146 SCRA 509 [1986]).

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 •

As long as the land is already considered as having become “private” through prescription, a corporation may institute confirmation proceedings. Having a PRIVATE character (no longer public), the land would no longer be barred by the Constitution to be owned by a corporation. Land has already become PRIVATE, ipso jure, when previously acquired by prescription by a natural person.

Natividad v. CA, 202 SCRA 439 (1991) Determinative of this issue is the character of the parcels of land – whether they were still public or already private – when the registration proceedings were commenced. If they are already private lands, the constitutional prohibition against acquisitions by a private corporation would not apply. WHAT APPLICANT MUST PROVE: • The land is alienable and disposable land of the public domain, and • His possession was for the length of time and in the manner and concept required by law NOTE: Form, Contents, Notice, Mailing, Posting Requirements are the same as those required in original registration under PD 1529. Director of Lands v. CA, 106 SCRA 426 (1981) A judicial declaration that a parcel of land is public, does not preclude even the same applicant from subsequently seeking a judicial confirmation of his title to the same land, provided he thereafter complies with the provisions of Sec. 48 of CA 141, as amended and as long as said public land remains alienable and disposable. PROOF OF PRIVATE OWNERSHIP: STOP 1. Spanish title (inadmissible and ineffective proof of ownership in land registration proceedings filed after Aug. 16, 1976) 2. Tax declarations and tax payments (not conclusive evidence of ownership, must be coupled with proof of actual possession for the period required by law) 3. Other kinds of proofQuickTime™ (ex. testimonial evidence and a decompressor TIFF (Uncompressed) of sale) to prove accretion, deeds are needed to see this picture. 4. Presidential issuances and legislative acts (constitutive of a fee simple title or absolute title in favor of the grantee, a law ceding full ownership to a government institution) Santiago v. SBMA, GR No. 156888, November 20, 2006

FACTS: Rodriguez is claiming to be the sole heir and administrator of the estate of Hermogenes Rodriguez who, in his lifetime, was the owner of parcels of land registered in his name under a Spanish title. Rodriguez leased the parcels of land to Santiago and Mateo for a period of 50 years. By virtue of the lease, Santiago is presently occupying the land. SBMA, on the other hand, is claiming possessory, if not proprietary, rights over the parcels of land, by using them for its own commercial and other purposes. ISSUE: Whether or not Spanish Titles are still admissible as evidence of ownership of lands HELD: No. Although PD 892 reads: “Whereas, Spanish titles to lands which have not yet been brought under the operation of the Torrens system, being subject to prescription, are now ineffective to prove ownership unless accompanied by proof of actual possession…,” petitioners cannot claim that they can still present the Spanish title as proof of ownership since they were in actual possession. Actual proof of possession only becomes necessary because Spanish titles are subject to prescription. The holder of a Spanish title may still lose his ownership of the real property to the occupant who actually possesses the same for the required prescriptive period. Because of this inherent weakness, the applicant for registration of his Spanish title under the Torrens system must also submit proof that he is in actual possession of the real property by virtue of prescription. Taking the law as a whole, it has clearly set a deadline for the filing of applications for registration of ALL Spanish titles under the Torrens system (i.e., 6 months from its effectivity or on 14 August 1976), after which, the Spanish titles may no longer be presented to prove ownership. Therefore, the fact that petitioners were in actual possession of the property when they filed the complaint with the RTC on April 29, 1996 does not exclude them from the application of PD 892, and their Spanish title remain inadmissible as evidence of their ownership of the property, whether in a land registration proceeding or in an action to remove a cloud on or to quiet title. However, this does not bar holders of Spanish titles from claiming ownership of real property on some other basis, such as those provided in PD 1529 or in the Public Land Act. For sure, Spanish titles can no Page 278 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 longer be countenanced as indubitable evidence of land ownership. JUDGMENT is a decision of court constituting its opinion after taking into consideration the evidence submitted. • It becomes final upon the lapse of 15 days counted from the receipt of notice of the judgment. • However, notwithstanding the lapse of the 15day period from receipt of judgment by the parties, the court continues to retain control over the case until the expiration of 1 year after the entry of decree of registration by the LRA (Republic v. Assosacion Benevola de Cebu, 178 SCRA 692 [1989]). POST-JUDGMENT INCIDENTS 1. Writ of Possession: order to sheriff to deliver the land to the successful party litigant; no prescription against: (1) the loser and (2) anyone unlawfully and adversely occupying • When writ may not issue: When a party entered into property after issuance of final decree, is not an oppositor in registration proceeding, and is in possession of land for at least 10 years 2. Writ of Demolition: the complement of writ of to demolish improvements possession; introduced by oppositor or his successor in interest MEANS TO RECOVER POSSESSION: 1. Forcible entry 2. Unlawful detainer 3. Accion publiciana 4. Accion reivindicatoria DECREE OF REGISTRATION : • The decree issued by the LRA pursuant to the order of the court. • Binds the land, quiets title thereto, subject only to such exceptions or liens as may be provided by law • Conclusive upon all persons including the government QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.

CONTENTS OF THE DECREE: DMD-DO 1. Date, hour and minute of its entry 2. Whether the owner is married or unmarried, and if married, the name of the spouse; provided that if the land is conjugal property, the decree shall be issued in the name of both spouses 3. If the owner is under disability, the nature of

such disability, and if a minor, his age 4. Description of the land and shall set forth the estate of the owner, and also show their relative easements, liens, attachments, and other encumbrances 5. Other matters to be determined in pursuance of the law PROCESS OF ISSUING THE OCT: 1. Within 15 days from finality of order of judgment directing registration of title – court orders the LRA to issue decree of registration and certificate of title 2. Clerk of court will send order of court and copies of judgment 3. Writ of Demolition may be issued. The court has authority to order, as a consequence of the writ of possession issued by it, the demolition of improvements introduced by the defeated oppositor or his successor-in-interest 4. Administrator will issue a decree of registration and original and duplicate of OCT that is signed by the Administrator, entered and file decree of registration in LRA 5. Send to ROD the original and duplicate of title and certificate for entry in his registration book 6. Enter in record book, dated, signed, numbered and sealed to take effect upon date of entry 7. ROD to send notice to registered owner ready for delivery after payment of fees 8. ROD shall send duplicate and note on each certificate of title to whom it is issued 9. Original copy to be filed in ROD 10. Bound in consecutive order ATTRIBUTES AND LIMITATIONS ON CERTIFICATES OF TITLE AND REGISTERED LANDS: 1. Free from liens and encumbrances a. Claims and liens of whatever character existing against the land prior to the issuance of the certificate of title are cut off by such certificate and the certificate so issued binds the whole world, including the government. b. EXCEPTIONS: CNT-PD Those noted on the certificate i. ii. Liens, claims, or rights arising or existing under the laws and the Constitution, which are not by law required to appear on record in the Register of Deeds in order to be valid iii. Unpaid real estate taxes levied and assessed within 2 years immediately preceding the acquisition of any right over the land by an innocent purchaser Page 279 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 for value Any public highway, or private way established or recognized by law, or any government irrigation, canal or lateral thereof, if the certificate of title does not state the boundaries of such highway or irrigation canal or lateral thereof have been determined v. Any disposition of the property or limitation on the issue thereof pursuant to PD 27 or any other law or regulations on agrarian reform 2. Incontrovertible and indefeasible a. GENERAL RULE: Upon expiration of 1 year from and after the entry of the decree of registration in the LRA, the decree and the corresponding certificate of title becomes incontrovertible and indefeasible. b. EXCEPTIONS: PNF i. If previous valid title of the same land exists ii. When land covered is not capable of registration iii. When acquisition of certificate is attended by fraud iv.

Arguelles v. Timbancaya, 72 SCRA 193 (1976) The rule on the incontrovertible nature of a certificate of title applies when what is involved is the validity of the OCT, not when it concerns that of the TCT. 3. Registered land not subject to prescription a. Even adverse, notorious and continuous possession under claim of ownership for the period fixed by law is ineffective against a Torrens title (JM Tuason and Co. Inc. v. CA, 93 SCRA 146 [1979]). b. The fact that the title to the land was lost does not mean that the land ceased to be registered land before the reconstitution of its title. It cannot perforce be acquired by prescription (Ruiz v. CA, 79 SCRA 525 [1977]). c. Laches may be invoked to bar QuickTime™ a reconveyance of landandto the registered TIFF (Uncompressed) decompressor this intervening picture. owner only are if needed thereto see are rights of third persons which may be affected or prejudiced if such land is returned to the registered owner (De Lucas v. Gamponia, 100 Phil 277 [1956]). Feliciano v. Spouses Zaldivar, GR No. 162593, Sep. 26, 2006

FACTS: Remigia Feliciano filed a complaint against the spouses Zaldivar for the declaration of nullity of TCT No. T-17993 and reconveyance of the property covered therein. The said title is registered in the name of Aurelio Zaldivar. Remigia alleged that she was the registered owner of a lot, part of which is that covered by both the above TCT and TCT No. 8502. It was originally leased to Pio Dalman, Aurelio’s father-in-law. She attempted to mortgage the lot to Ignacio Gil, but the mortgage did not push through. She vehemently denies ever executing a joint affidavit confirming the sale to Gil and insists that TCT No. 8502 was never lost. The Zaldivars, on the other hand, claimed that Aurelio bought the property from Dalman who, in turn, bought the same from Gil in 1951. Gil allegedly purchased the property from Remegia, the sale of which was evidenced by the joint affidavit of confirmation of sale that Remegia and her uncle purportedly executed before a notary public in 1965. Aurelio then filed a petition for the issuance of a new owner’s duplicate copy of TCT No. T-8502 because when they asked Remegia about it, she claimed it had been lost. A petition for partial cancellation of the said TCT was granted and TCT No. 17993 was issued in Aurelio’s name. They also allege that they and their predecessorsin-interest have been occupying the said property since 1947, openly, publicly, adversely, and continuously or for 41 years already. ISSUE: Who is the real owner of the subject lot? HELD: Remegia is the real owner. With respect to the claim of acquisitive prescription, it is baseless when the land involved is a registered land since no title to registered land in derogation of that of the registered owner shall be acquired by adverse possession. Consequently, proof of possession by the Zaldivars is both immaterial and inconsequential. Neither can the spouses rely on the principle of indefeasibility of TCT No. 17993 by virtue of the fact that TCT No. 8502 in the name of Remegia has remained valid. Remegia’s title, thus, prevails over Aurelio’s, especially considering that the latter was correctly nullified by the RTC Page 280 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 as it emanated from the new owner’s duplicate TCT No. 8502, which, in turn, was procured by Aurelio through fraudulent means. Laches has not set in against Remegia as she merely tolerated the occupation by the Zaldivars of the subject lot. Therefore, Remegia’s right to recover possession was never barred by laches. 4. Certificate of title not subject to collateral attack a. Sec. 48 of PD 1529 provides that “a certificate of title shall not be subject to collateral attack. It cannot be altered, modified, or cancelled except in a direct proceeding in accordance with the law.” 5. Torrens Certificate presumed valid and devoid of flaws a. GENERAL RULE: Torrens Certificate of Title is presumed to have been regularly issued, valid, and without defects. The buyer has the right to rely upon the face of the Torrens title and dispense with the trouble of inquiring further. b. EXCEPTION: When he has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make inquiry. Erasusta, Jr. v. CA, GR No. 149231, July 17, 2006 FACTS: Lucena de los Reyes (petitioner’s mother) sold 2 lots to Fortunato Amorin. Amorin took possession of such properties. Later, however, Pacific Bank demanded that the Amorins vacate the properties, claiming that such property had been foreclosed by such Bank. As it turned out De Los Reyes was deceived by a certain Benjamin Valenzuela, to whom she entrusted the documents evidencing her rights over the lots, the latter fraudulently transferred the rights over the lots to his name. Valenzuela mortgaged such properties to Pacific Bank. Respondent Bank foreclosed and bought the properties. The Amorins filed an action for Recovery of Ownership with Damages. CA QuickTime™ a declared respondent Bank an and innocent purchaser TIFF (Uncompressed) decompressor needed to see this picture. for value entitled toarethe protection of the law with a better right over the lots than the Amorins. ISSUE: Whether or not the Bank is an innocent purchaser for value whose title must be upheld. HELD:

NO. While, it is a familiar doctrine that a forged or fraudulent document may become the root of a valid title, if the property has already been transferred from the name of the owner to that of the forger, the same is not true. This doctrine serves to emphasize that a person who deals with registered property in good faith will acquire good title from a forger and be absolutely protected by a Torrens title. It cannot be overemphasized that respondent Bank, being in the business of extending loans secured by real estate mortgage, is familiar with rules on land registration. As such, it was, as here, expected to exercise more care and prudence than private individuals in their dealing with registered lands. Accordingly, given inter alia the suspicionprovoking presence of occupants other than the owner on the land to be mortgaged, it behooved respondent Bank to conduct a more exhaustive investigation on the history of the mortgagor’s title. That respondent Bank accepted in mortgage the property in question notwithstanding the existence of structures on the property and which were in actual, visible and public possession of a person other than the mortgagor, constitutes gross negligence amounting to bad faith. In the absence of such inquiry, the respondent Bank cannot and should not be regarded as a mortgagee/purchaser in good faith. 6. General incidents of registered land • Registered land or the owners thereof are not relieved from the following: a. From any rights incident to the relation of husband and wife, landlord and tenant b. From liability to attachment or levy on execution c. From liability to any lien of any description established by law on the land and buildings thereon, or in the interest of the owner in such land or buildings d. From any right or liability that may arise due to change of the law on descent e. From the rights of partition between coowners f. From the right of the government to take the land by eminent domain g. From liability to be recovered by an assignee in insolvency or trustee in bankruptcy under the laws relative to preferences h. From any other rights or liabilities Page 281 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 created by law and applicable to unregistered land 7. Where certificate of title is obtained by a trustee a. Trustee who obtains a Torrens title in his name, over property held in trust by him for another cannot repudiate the trust relying on the registrations, such being one of the limitations upon the finality of title b. Trustee could not perforce legally convey ownership of the registered property in her will for she is not the absolute owner thereof SUBSEQUENT REGISTRATION • Where incidental matters after original registration may be brought before the land registration court by way of motion or petition filed by the registered owner or a party in interest. • Rules as to the necessity and effects of registration in general 1. Except a will that purports to convey or affect a registered land, the mere execution of the deeds of sale, mortgage, or lease or other voluntary documents serve only 2 purposes: a. as a contract between the parties thereto, and b. as evidence of authority to the ROD to register such documents 2. It is only the act of registering the instrument in the ROD of the province or city where the land lies which is the operative act that conveys ownership or affects the land insofar as third persons are concerned. 3. The act of registration creates a constructive notice to the whole world of such voluntary or involuntary instrument or court writ or process. VOLUNTARY INVOLUNTARY DEALINGS DEALINGS Refer to deeds, Refer to such writ or QuickTime™ instruments, or orderandora process issued TIFF (Uncompressed) decompressor picture. of record see thi documents which areare needed toby ascourt results of the free and affecting registered land voluntary acts of the which by law should be parties thereto registered to be effective, and also to such instruments which are not the willful acts of the registered owner and which may have

• Sale • Real property mortgage • Lease • Pacto de retro sale • Extra-judicial settlement • Free patent/homestead • Powers of attorney • Trusts An innocent purchaser for value of registered land becomes the registered owner the moment he presents and files a duly notarized and valid deed of sale and the same is entered in the day book and at the same time he surrenders or presents the owner’s duplicate certificate of title covering the land sold and pays the registration fees Need to present title to record the deed in registry & to make memorandum on title

been executed even without his knowledge or against his consent • Attachment • Injunction • Mandamus • Sale on execution of judgment or sales for taxes • Adverse claims • Notice of lis pendens Entry thereof in the day book of the ROD is sufficient notice to all persons even if the owner’s duplicate certificate of title is not presented to the ROD

No presentation required; annotation in entry book is sufficient

VOLUNTARY DEALINGS Operative Act: registration by owner, if deed is not registered, it is binding only between parties • GENERAL RULE: Where there is nothing on the certificate of title to indicate any cloud or vice in the ownership of the property, or any encumbrance thereon, the purchaser is not required to explore further than what the Torrens title upon its face indicates in quest for any hidden defect or inchoate right that may defeat his right thereto (Fule v. Legare, 7 SCRA 351 [1963]). • Every person dealing with registered land may safely rely on the correctness of the certificate of title issued therefore and the law will in no way oblige him to go behind the certificate to determine the condition of the property. Even if a decree in a registration proceeding is infected with nullity, still, an innocent purchaser for value relying on a Torrens title issued in pursuance thereof is protected (Cruz v. CA & Suzara, 281 SCRA 491 [1997]). • Although generally a forged or fraudulent deed is a nullity and conveys no title, however, there are instances where such a fraudulent document may become the root of a valid title. Page 282 of 297

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One such instance is where the certificate of title was already transferred from the name of the true owner to the forger, and while it remained that way, the land was subsequently sold to an innocent purchaser (Fule v. Legare, 7 SCRA 351 [1963]). EXCEPTIONS: BOB-IM-LK 1. Where the purchaser or mortgagee is a bank/financing institution, the general rule that a purchaser or mortgagee of the land is not required to look further than what appears on the face of the title does not apply (Dela Merced v. GSIS, 365 SCRA 1 [2001]). 2. The ruling in Fule v. Legare cannot be applied where the owner still holds a valid and existing certificate of title covering the same property because the law protects the lawful holder of a registered title over the transfer of a vendor bereft of any transmissible right (Tomas v. Tomas, 98 SCRA 280 [1980]). 3. Purchaser in bad faith (Egeo v. CA, 174 SCRA 484 [1989]) 4. Sufficiently strong indications to impel closer inquiry into the location, boundaries, and condition of the lot (Francisco v. CA, 153 SCRA 330 [1987]). 5. Where a person buys land not from the registered owner but from one whose rights to the land has been merely annotated on the certificate of title (Quiniano v. CA, 39 SCRA 221 [1971]). 6. Purchases land with a certificate of title containing a notice of lis pendens 7. Purchaser had full knowledge of flaws and defects in the title (Bernales v. IAC, 166 SCRA 519, [1988]).

PROCESS OF REGISTRATION: (GENERALLY) 1. File the instrument creating or transferring the interest and the certificate of title with ROD, including: a. Owner’s duplicate b. Payment of fees and documentary stamp tax c. Evidence of full QuickTime™ payment andof a real estate tax TIFF (Uncompressed) decompressor are needed to ser: ee this d. Document of transf 1picture. additional copy for city/provincial assessor 2. ROD shall make a memorandum on the certificate of title, signed by him 3. Issuance of the TCT REGISTRATION OF REAL PROPERTY MORTGAGE: 1. Execution of deed in a form sufficient in law

(public instrument) 2. Registration with ROD where the land lies a. Present deed of mortgage together with b. Owner’s Duplicate and affidavit of good faith c. Payment of fees d. ROD shall enter upon original certificate of title and upon duplicate a memorandum (date, time of filing, signature, file number assigned to deed) e. ROD to note on the deed the date and time of filing, and reference to volume and page of the registration book in which it was registered 3. No duplicate need be issued REGISTRATION OF CHATTEL MORTGAGE: 1. Execution of document 2. Present the document together with affidavit of good faith 3. Payment of fees 4. ROD enters in Day Book in strict order of their presentation chattel mortgages and other instruments relating thereto (primary process) 5. ROD thereafter enters in a more detailed form the essential contents of the instrument in the Chattel Mortgage Register (complementary process) EFFECT OF REGISTRATION: 1. Creates a lien that attaches to the property in favor of the mortgagee 2. Constructive notice of his interest in the property to the whole world EFFECT OF FAILURE TO REGISTER: • Valid between parties but void against 3rd persons • If instead of registration, it is delivered, it shall be a pledge and not a chattel mortgage (if no chattel mortgage deed executed) • Actual knowledge is same effect as registration AFFIDAVIT OF GOOD FAITH: • Statement that: 1. Mortgage is made to secure obligation specified 2. That it is a valid and just obligation 3. That it is not entered into for purposes of fraud EFFECT OF ABSENCE OF AFFIDAVIT OF GOOD FAITH: • Vitiates mortgage as against creditors and subsequent encumbrancers • Mortgage is not valid as between parties Page 283 of 297

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No need to be in public document

REGISTRATION OF LEASE • It is the lessee, not the lessor, who is required to initiate the registration. 1. File with ROD the instrument creating lease together with owner’s duplicate of certificate of title 2. ROD to register by way of memorandum upon certificate of title 3. No new certificate shall be issued NOTE: When there is prohibition in mortgaged property as regards subsequent conveyances, etc., leasehold cannot be registered in the title thereof EFFECT OF REGISTRATION: 1. Creates a real right but without prejudice to rights of 3rd persons 2. If it is not registered, it is valid as between parties but not to 3rd persons without notice MAY ALIENS REGISTER LEASE? YES 1. May be granted temporary rights for residential purposes 2. Limit: 25 years, renewable for another 25 years WHO ELSE MAY REGISTER? Builder in Good Faith REGISTRATION OF TRUST 1. Implied Trust: present a sworn statement claiming interest by reason of an implied trust with description of land and reference to the number of certificate shall be registered in ROD 2. Express Trust: instrument creating the trust does not prohibit registration REGISTRATION OF APPOINTED TRUSTEE BY COURT • Certified copy of decree shall be presented to ROD and surrender duplicate certificate • Cancel duplicate & new certificate shall be entered by ROD QuickTime™ and a INVOLUNTARY DEALINGS: TIFF (Uncompressed) decompressor needed to see this picture. • Transactions areaffecting which land in cooperation of registered owner is not needed, or even against his will

1. ATTACHMENT • A writ issued at the institution or during progress of an action commanding the sheriff to attach the property, rights, credits, or effects of the defendant to satisfy demands

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of the plaintiff Kinds: a. Preliminary b. Garnishment c. Levy on execution

REGISTRATION OF ATTACHMENT/OTHER LIENS: 1. Copy of writ in order to preserve any lien, right, or attachment upon registered land may be filed with ROD where land lies, containing number of certificate of title of land to be affected or description of land 2. ROD to index attachment in names of both plaintiff and defendant or name of person for whom property is held or in whose name stands in the records 3. If duplicate of certificate of title is not presented: a. ROD shall, within 36 hours, send notice to registered owner by mail stating that there has been registration and request him to produce duplicate so that memorandum may be made b. If the owner neglects or refuses to comply, the ROD shall report the matter to the court c. The court, after notice, shall enter an order to owner to surrender certificate at the time and place named therein 4. Although notice of attachment is not noted in duplicate, notation in book of entry of ROD produces the effect of registration already. EFFECTS OF REGISTRATION OF ATTACHMENT: REEA 1. Creates real right 2. Has priority over execution sale 3. But between 2 attachments, one that is earlier in registration is preferred 4. If it is not registered, actual knowledge is the same as registration 2. EXECUTION SALE • To enforce a lien of any description on registered land, any execution or affidavit to enforce such lien shall be filed with ROD where land lies • Register in registration book & memorandum upon proper certificate of title as adverse claim or as an encumbrance • To determine preferential rights between 2 liens: priority of registration of attachment a. TAX SALE • Sale of land for collection of delinquent taxes and penalties due the government Page 284 of 297

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In personam (all persons interested shall be notified so that they are given an opportunity to be heard) Notice to be given to delinquent tax payer at his last known address Publication of notice must also be made in English, Spanish, and local dialect, posted in a public and conspicuous place in the place where the property is situated and at the main entrance of the provincial building Sale cannot affect rights of other lien holders unless given the right to defend their rights: due process must be strictly observed Tax lien superior to an attachment There is no need to register a tax lien because it is automatically registered once the tax accrues But the sale of registered land to foreclose a tax lien needs to be registered

PROCEDURE OF REGISTRATION OF TAX SALE: 1. Officer’s return shall be submitted to the ROD together with the owner’s duplicate title 2. Register in the registration book 3. Memorandum shall be entered in the certificate as an adverse claim or encumbrance 4. After a period of redemption has expired and no redemption made (2 years from registration of auction sale), title must be cancelled and new title will be issued 5. Before the cancellation, notice shall be sent to registered owner, to ask him to surrender title and show cause why it shall not be cancelled 3. ADVERSE CLAIM Sajonas v. CA, 258 SCRA 79 (1996) ADVERSE CLAIM is a notice to third persons that someone is claiming an interest on the property or has a better right than the registered owner thereof. The disputed land is subject to the outcome of the dispute. • Claim is adverse when: QuickTime™ and a 1. A claimant’s right or interest in registered TIFF (Uncompressed) decompressor are needed to see this picture. land is adverse to the registered owner; 2. Such right arose subsequent to date of original registration 3. No other provision is made in the Decree for the registration of such right or claim (Sec. 70, PD 1529)

A mere money claim cannot be registered as an adverse claim. • •

Actual knowledge is equivalent to registration of adverse claim. No 2nd adverse claim based on the same ground may be registered by the same claimant.

FORMAL REQUISITES OF AN ADVERSE CLAIM FOR PURPOSES OF REGISTRATION: WNR a. Adverse claimant must state the following in writing: 1. his alleged right or interest 2. how and under whom such alleged right or interest is acquired 3. the description of the land in which the right or interest is claimed 4. the certificate of title number b. Such statement must be signed and sworn to before a notary public c. Claimant shall state his residence or place to which all notices may be served upon him NOTE: Noncompliance with said formal requisites renders such adverse claim non-registrable and ineffective. PERIOD OF EFFECTIVITY; WHEN CANCELLED • The adverse claim shall be effective for a period of 30 days from the date of registration and it may be cancelled: a. After the lapse of 30 days, upon the filing by the party-in-interest of a verified petition for such purpose b. Before the lapse of said 30 days, upon the filing by the claimant of a sworn petition withdrawing his adverse claim c. Before the lapse of the 30-day period, when a party-in-interest files a petition in the proper RTC for the cancellation of the adverse claim and, after notice and hearing, the court finds that the claim is invalid. If the court also finds the claim to be frivolous, it may fine the claimant the amount of not less than 1,000 pesos nor more than 5,000 pesos, in its discretion Diaz-Duarte v. Ong, 298 SCRA 388 (1998) For this purpose, the interested party must file with the proper court a petition for cancellation of adverse claim, and a hearing must also first be conducted. The Register of Deeds cannot on its own automatically cancel the adverse claim.

Sanchez v. CA, 69 SCRA 327 (1976)

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 Ty Sin Tei v. Dy Piao, 103 Phil 858, G.R. No. 11271, May 28, 1958 An adverse claim may exist concurrently with a subsequent annotation of a notice of lis pendens.

party who caused such registration 5. Deemed cancelled when certificate issued by clerk of court stating manner of disposal of proceeding is registered

Villaflor v. Juezan, 184 SCRA 315 (1990) When an adverse claim exists concurrently with a notice of lis pendens, the notice of adverse claim may be validly cancelled after the registration of such notice, since the notice of lis pendens also serves the purpose of the adverse claim.

LIS PENDENS HAS NO APPLICATION TO THE FOLLOWING: 1. Preliminary attachment 2. Proceedings for the probate of wills 3. Levies on execution 4. Proceedings for administration of estate of deceased persons and 5. Proceedings in which the only object is the recovery of a money judgment

4. NOTICE OF LIS PENDENS Heirs of Marasigan v. IAC, 152 SCRA 253 (1987) The purpose of the notice of lis pendens is to constructively advise, or warn all people who deal with the property that they so deal with it at their own risk, and whatever rights they may acquire in the property in any voluntary transaction are subject to the results of the action, and may well be inferior and subordinate to those which may be finally determined and laid down therein. • It merely creates a contingency and not a lien WHEN NOTICE OF LIS PENDENS IS PROPER: RQCPO 1. To recover possession of real estate 2. To quiet title thereto 3. To remove clouds upon the title thereof 4. For partition, and 5. Any other proceeding of any kind in court directly affecting the title to the land or the use of occupation thereof or the building thereon. EFFECT OF REGISTRATION: 1. Impossibility of alienating the property in dispute during the pendency of the suit 2. It may still be alienated but the purchaser is subject to the final outcome of pending suit 3. ROD is duty-bound to carry over notice of lis pendens on all new titles to be issued CANCELLATION OF LIS PENDENS: M-NUVD • Before final judgment, the court may order the cancellation: QuickTime™ and a TIFF (Uncompressed) decompressor 1. After showing that notice is picture. only for purpose of are needed to see this molesting an adverse party 2. When it is shown that it is not necessary to protect the right of the party who caused the registration thereof 3. When the consequences of the trial are unnecessarily delaying the determination of the case to the prejudice of the other party 4. ROD may also cancel by verified petition of

OTHER PARTIES WHO NEED TO REGISTER: 1. ASSIGNEE IN INVOLUNTARY PROCEEDING FOR INSOLVENCY • Duty of the officer serving notice to file copy of notice to ROD where the property of debtor lies • Assignee elected or appointed by court shall be entitled to entry of a new certificate of registered land upon presentment of copy of assignment with the bankrupt’s duplicate certificate of title • New certificate shall not state that it is entered to him as assignee or trustee in insolvency proceedings Judgment/Order Vacating Insolvency Proceedings • Order shall also be registered • Surrender title issued in name of assignee & debtor shall be entitled to entry of new certificate 2. GOVERNMENT IN EMINENT DOMAIN • Copy of judgment filed in ROD which states description of property, certificate number, interest expropriated, nature of public use • Memorandum shall be made or new certificate of title shall be issued CADASTRAL REGISTRATION is a proceeding in rem initiated by the filing of a petition for registration by the government, not by the persons claiming ownership of the land subject thereof, and the latter are, on the pain of losing their claim thereto, in effect, compelled to go to court to make known their claim or interest therein and to substantiate such claim or interest • The government does not seek registration of the land in its own name Page 286 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 •

The objective of the proceeding is the adjudication of title to the lands involved in the proceeding

PROCEDURE: NN-CP-PAHD-DI 1. Notice of cadastral survey published once in OG and posted in conspicuous place with a copy furnished to the mayor and barangay captain 2. Notice of date of survey by the Bureau of Land Management and posting in bulletin board of the municipal building of the municipality or barrio, and he shall mark the boundaries of the lands by monuments set-up in proper places thereon 3. Cadastral survey 4. Filing of petition 5. Publication (twice in successive issues of OG), mailing, posting 6. Filing of answer 7. Hearing of the case 8. Decision 9. Issuance of the decree and certificate of title NOTE: The cadastral court is not limited to mere adjudication of ownership in favor of one or more claimants. If there are no successful claimants, the property is declared public land. Additionally, while the court has no jurisdiction to adjudicate lands already covered by a Certificate of Title, it is nonetheless true that this rule only applies where there exists no serious controversy as to the certificate’s authenticity vis-à-vis the land covered therein (Republic v. Vera, 120 SCRA 210 [1983]).

Nature Applicant Lands covered

Parties

PD 1529 Voluntary Landowner

Cadastral Compulsory Director of Lands • all classes of lands are included

• usually involves private land • it may also refer to public agricultural lands if the object ofQuickTim the e™ and a TIFF (Uncompressed) decompressor are needed action is to see this picture. confirmation of an imperfect title Applicant and Government, opponent Landowners must come to court as claimants of their own lands

Purpose

Person who requests the survey Effect of judgment

Petitioner comes to court to confirm his title and seeks the registration of the land in his name Landowner

Government asks the court to settle and adjudicate the title of the land

• no adverse claim • if the applicant fails to prove his title, his application may be dismissed without prejudice (no res judicata)

• if none of the applicants can prove that he is entitled to the land, the same shall be declared public (res judicata)

Government

PATENTS CLASSIFICATION OF LAND OF PUBLIC DOMAIN: • The classification is the exclusive prerogative of executive and not by judiciary • Anyone who applies for confirmation of imperfect title has the burden of proof to overcome the presumption that the land sought to be registered forms part of public domain (Regalian doctrine) UNDER THE CONSTITUTION: 1. Agricultural – only one subject to alienation 2. Forest or timber 3. Mineral lands 4. National park UNDER THE PUBLIC LAND ACT: 1. Alienable/disposable: a. Agricultural b. Residential, commercial, industrial c. Educational, charitable d. Town sites and for public and quasipublic uses 2. Timber lands: inalienable 3. Mineral lands: inalienable • If patent or title is issued, it is void ab initio for lack of jurisdiction • It is not subject to acquisitive prescription even if in possession for long time, it will not ripen into ownership • Except: mineral lands and forest lands acquired before inauguration of Commonwealth in November 15, 1935 because there are vested rights which are protected Page 287 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 FISHPONDS • Before: It was included in the definition of agriculture, therefore the conversion of agricultural land to fishponds did not change character of land • Now: It has a restricted meaning; Fishponds have a distinct category and cannot be alienated but may be leased from government WHEN GOVERNMENT GRANT DEEMED ACQUIRED BY OPERATION OF LAW: 1. Deed of conveyance issued by government patent/grant 2. Registered with the ROD: mandatory, it is the operative act to convey and transfer title 3. Actual physical possession, open and continuous • Land ceased to be part of public domain & now ownership vests to the grantee • Any further grant by Government on same land is null and void • Upon registration, title is indefeasible TITLE ISSUED PURSUANT TO REGISTRATION OF PATENT: 1. Indefeasible when registered, and deemed incorporated with Torrens system 1 year after the issuance of patent 2. May not be opened 1 year after entry by LRA (otherwise, confusion and uncertainty on the government system of the distribution of public lands may arise and this must be avoided) Except: if it is annullable on ground of fraud, then it may be reopened even after 1 year because registration does not shield bad faith • The court, in the exercise of its equity jurisdiction, may direct reconveyance even without ordering cancellation of title HOMESTEAD RESTRICTIONS: 1. Cannot be alienated within 5 years after approval of application for patent 2. Cannot be liable for satisfaction of debt within 5 years after approval of patent application QuickTime™ and a 3. Subject to repurchase ofdechompressor eirs within 5 years TIFF (Uncompressed) needed to see this picture. after alienation are when allowed already 4. No private corporation, partnership, association may lease land unless it is solely for commercial, industrial, educational, religious or charitable purpose, or right of way (subject to consent of grantee and approval of Secretary of Environment & Natural Resources) EXCEPTIONS:

1. Action for partition because it is not a conveyance 2. Alienations or encumbrances made in favor of the government ERRING HOMESTEADER NOT BARRED BY PARI DELICTO • Pari delicto rule does not apply in void contracts • Violation of prohibition results in void contract • Action to recover does not prescribe KINDS HOMESTEAD PATENT

FREE PATENT

TO WHOM GRANTED To any Filipino citizen over the age of 18 years or head of a family

To any natural born citizen of the Philippines (filing ended Dec. 31, 2000)

REQUIREMENTS • does not own more than 12 hectares of land in the Philippines or has not had the benefit of any gratuitous allotment of more than 12 hectares • must have resided continuously for at least 1 year in the municipality where the land is situated • must have cultivated at least 1/5 of the land applied for • does not own more than 12 hectares of land • has continuously occupied and cultivated, either by himself or his predecessors-ininterest, tracts of disposable agricultural public land for at least 30 years prior to March 28,1990 • paid real property taxes on the property while the same has not been occupied by any person • grant will be limited to 12 hectares only

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 SALES PATENT

Citizens of the Philippines of lawful age or head of the family may purchase public agricultural land of not more than 12 hectares

• to have at least 1/5 of the land broken and cultivated within 5 years from the date of the award (public auction) • shall have established actual occupancy, cultivation, and improvement of at least 1/5 of the land until the date of such final payment • for agricultural lands suitable for residential, commercial or industrial purposes, patent is issued only after: 1.) full payment of purchase price, and 2.) completion of the construction of permanent improvements appropriate for purpose for which the land is purchased (must be completed within 18 months from date of award) To any • does not own a citizen of home lot in the legal age for municipality in residential which he resides purposes • in good faith, established his residence on a QuickTime™ and a parcel of land of TIFF (Uncompressed) decompressor are needed to see this ppublic icture. domain not needed for public service • not more than 1000 sq. m. • occupant must have constructed his house on the land and actually

SPECIAL PATENT

To NonChristian Filipinos under the Public Land Act

resided therein • no public auction required • not subject to any restriction against encumbrance or alienation • Secretary of the DILG shall certify that the majority of the non-Christian inhabitants of any given reservation have advanced sufficiently in civilization

PROCEDURE FOR REGISTRATION OF PUBLIC LANDS: IFEFI 1. Official issues an instrument of conveyance 2. File the instrument with ROD 3. Instrument is to be entered in books and owner’s duplicate to be issued • Instrument is only a contract between Government and private person and does not take effect as conveyance if unregistered, it is registration which is operative act of conveying land; evidence of authority for ROD to register 4. Fees to be paid by grantee 5. After issuance of certificate of title, land is deemed registered land within the purview of the Torrens system RESTRICTION ON ALIENATION/ENCUMBRANCE OF LANDS TITLED PURSUANT TO PATENTS: 1. Lands under free patent or homestead patent is prohibited from being alienated/encumbered, except if in favor of the government, within 5 years from and after the issuance of the patent or grant (Republic v. Heirs of Felipe Alejaga, Sr., 393 SCRA 361 [2002]) 2. Transfer or conveyance of any homestead after 5 years and before 25 years after the issuance of the title without the approval of the DENR Secretary 3. Lands acquired under emancipation patents issued to landless tenants and farmers must not be alienated or encumbered within 10 years from issuance of the title 4. Conveyances and encumbrances made by persons belonging to the “non-Christian tribes” may be made only when the person making the conveyance or encumbrance is able to read and understand the language in which the Page 289 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 instrument or deed is written. If illiterate, must be approved by the then Commissioner of Mindanao and Sulu NATURE OF TITLE TO PUBLIC LANDS CONVEYED: INDEFEASIBLE AND CONCLUSIVE • In absence of registration, title to public land is not perfected and therefore not indefeasible • In case of 2 titles obtained on same date, the one procured through a decree of registration is superior than patent issued by director of lands • 2 titles procured by one person: one from homestead patent, and one from judicial decree and sold to 2 different persons, the one who bought it for value and in good faith and who registered first shall have preference Republic v. Heirs of Felipe Alejaga, Sr. 393 SCRA 361 (2002) A free patent obtained through fraud or misrepresentation is void. Furthermore, the one-year prescriptive period provided in the Public Land Act does not bar the State from asking for the reversion of property acquired through such means. Once a patent is registered and the corresponding certificate of title issued, the land covered by them ceases to be part of the public domain and becomes private property. Further, the Torrens Title issued pursuant to the patent becomes indefeasible a year after the issuance of the latter. However, this indefeasibility of a title does not attach to titles secured by fraud and misrepresentation. Well-settled is the doctrine that the registration of a patent under the Torrens System does not by itself vest title; it merely confirms the registrant’s already existing one. Verily, registration under the Torrens System is not a mode of acquiring ownership. Therefore, under Section 101 of Commonwealth Act No. 141, the State -- even after the lapse of one year -- may still bring an action for the reversion to the public domain of land that has been fraudulently granted to private individuals. Further, this indefeasibility cannot be a bar to an investigation by QuickTime™ and a the State as to howTIFF the title has been acquired, if the (Uncompressed) decompressor are needed to see this picture. purpose of the investigation is to determine whether fraud has in fact been committed in securing the title. Section 118 of Commonwealth Act No. 141 proscribes the encumbrance of a parcel of land acquired under a free patent or homestead within five years from its grant. The prohibition against any alienation or encumbrance of the land grant is a proviso attached to the approval of every application.

REMEDIES AVAILABLE TO AGGRIEVED PARTY IN REGISTRATION PROCEEDINGS MOTION TO • before judgment LIFT/SET ASIDE • FAME and with valid defense ORDER OF DEFAULT • under oath MOTION FOR NEW • 15 days from notice of TRIAL judgment GROUNDS: a. Fraud, accident, mistake, excusable negligence (FAME) which ordinary prudence could not have guarded against b. Newly discovered evidence c. Award of excessive damages, or insufficiency of evidence to justify decision, or that the decision is against the law APPEAL • 15 days from notice of judgment • To the CA/SC • 60 days after petitioner learns RELIEF FROM JUDGMENT of judgment, but not more than 6 months after judgment was entered REQUISITES: a. FAME, with affidavit of merit; in case of extrinsic fraud, state that deprived of hearing or prevented from appealing b. After judgment c. Person deprived of right is party to case PETITION FOR • Within 1 year after entry of REVIEW OF decree of registration REGISTRATION • it will not prosper if transferred DECREE to innocent purchaser for value GROUNDS: a. actual or extrinsic fraud, committed outside trial, preventing petitioner from presenting his side b. fatal infirmity in the decision for want of due process c. lack of jurisdiction of the court REQUISITES: a. Petitioner has a real and dominical right b. He has been deprived of such right c. Through actual or extrinsic fraud d. The petition is filed within 1 Page 290 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 year from the issuance of the decree e. The property has not been passed on to an innocent purchaser for value • available so long as property ACTION FOR not yet passed to innocent RECONVEYANCE purchaser for value • by aggrieved party, whose land was registered wrongly to another person • before issuance of decree, or within/after 1 year from entry • action in personam • if based on implied trust, it must be instituted within 10 years, and imprescriptible if by registered owner or his children, co-heir, or plaintiff in possession • if based on expressed trust and void contract, imprescriptible • if based on fraud, it must be instituted within 4 years from the discovery of the fraud RECOVERY FOR REQUISITES: DAMAGES a. Person is wrongfully deprived of his land by registration in name of another (actual or constructive fraud b. No negligence on his part c. Barred/ precluded from bringing an action (after 1 year from decree) d. Action for compensation has not prescribed ACTION FOR REQUISITES: a. The aggrieved party COMPENSATION FROM THE sustained loss or damage, ASSURANCE FUND* or is deprived land or any estate or interest therein b. Such loss, damage or deprivation was occasioned by the bringing of the land QuickTime™ andoperation a under the of the TIFF (Uncompressed) decompressor are neeTorrens ded to see this system picture. or arose after the original registration of the land c. The loss, damage or deprivation was due to fraud, or any error, omission, mistake, or misdescription in any certificate of title or in any

CANCELLATION SUITS

ANNULMENT OF JUDGMENT

REVERSION SUIT

entry or memorandum in the registration book d. There was no negligence on his part e. He is barred or precluded under the provisions of PD 1529 or under the provisions of any law from bringing an action for the recovery of such land or the estate or interest therein; f. The action has not prescribed: must be instituted within a period of 6 years from the time the right to bring such action first occurred-which is the date of issue of the certificate of title g. Execution first against person responsible for fraud; if insolvent, against national treasury • Where 2 certificates are issued to different persons covering the same land, the title earlier in date must prevail, unless procured by fraud or is jurisdictionally flawed • The later title should be declared null and void and ordered cancelled • It is the aggrieved party that institutes the action • In case of non-registered land, must be filed by the OSG for cancellation of title or reversion to State • Voiding or cancellation of OCT does not affect derivative TCTs if their holders not given opportunity to be heard and defend their title • May only be availed of when the ordinary remedies of new trial, petition for relief, or other appropriate remedies are no longer available through no fault of the petitioner (Linzag v. CA, 291 SCRA 304 [1998]). • The objective is the Page 291 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007

QUIETING OF TITLE

cancellation of the certificate of title and the consequential reversion of the land covered in the land grant to the State • GROUNDS: a. Violation of Sections 118, 120, 121 and 122 of the Public Land Act (ex. alienation or sale of homestead executed within the 5 year prohibitory period) b. When land patented and titled is not capable of registration c. Failure of the grantee to comply with conditions imposed by law to entitle him to a patent or grant d. When area is an expanded area e. When the land is acquired in violation of the Constitution (e.g. land acquired by an alien) • Indefeasibility of title, prescription, laches, and estoppel do not bar reversion suits • Brought to remove clouds on the title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance, or proceeding which is apparently valid or effective but is in truth and in fact invalid, effective, voidable or unenforceable, and may be prejudicial to said title (Art. 476, Civil Code) • An ordinary civil remedy QuickTime™ and a from the registered TIFF•(UncoAside mpressed) decompressor are needed to see this picture. owner, a person who has an equitable right or interest in the property may likewise file such action (Mamadsul v. Moson, 190 SCRA 82 [1990]) • Imprescriptible if plaintiff is in possession; if not, must

CRIMINAL ACTION

•

be brought within 10 years from loss of possession The State may criminally prosecute for perjury the party who obtains registration through fraud, such as by stating false assertions in the sworn answer required of applicants in cadastral proceedings (People v. Cainglet, 16 SCRA 749 [1966] )

ASSURANCE FUND • State creates a fund for the compensation of persons injured by divesting/cutting off of rights due to the indefensibility of title; following that act of registration is operative act by which State transfers title • It is created to relieve innocent persons from harshness of doctrine that certificate of title is conclusive evidence of an indefeasible title to land. • Upon entry of certificate in name of owner or TCT, ¼ of 1% shall be paid to the ROD based on assessed value of land as a contribution to the assurance fund • If there is yet no assessment, a sworn declaration of 2 disinterested persons on the value of the land, subject to determination by court, is required. • Money shall be in the custody of the National Treasurer who shall invest it until principal plus interest aggregates to 500,000. The excess shall be paid to the Assurance Fund and be included in the annual report of Treasurer to Secretary of Budget WHO IS ENTITLED: 1. Claimant must be owner, purchaser or encumbrancer in good faith who suffered actual damage by loss of land. In short, he is deprived of his land or interest therein 2. No negligence attributable to him 3. Claimant is barred from filing action to recover said land 4. Action to recover from assurance fund has not prescribed LOSS/DAMAGES SHOULD NOT BE DUE TO FOLLOWING REASONS: 1. Breach of trust 2. Mistake in resurvey resulting in expansion of area in certificate of title Page 292 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 LOSS/DAMAGES SHOULD BE DUE TO THE FOLLOWING REASONS: 1. Omission, mistake, misfeasance of ROD or clerk of court 2. Registration of 3rd persons as owner 3. Mistake, omission, misdescription in 4. certificate of title, duplicate or entry in books 5. Cancellation AGAINST WHOM ACTION IS FILED: 1. Action due to deprivation of land due to mistake, negligence, omission of ROD, etc: ROD and National Treasurer as defendants; Sol-Gen must appear 2. Private persons involved should also be impleaded LIABILITY: 1. Satisfy claims from private persons first 2. When unsatisfied: secondarily liable is the National Treasurer who shall pay through the assurance fund; thereafter Government shall be subrogated to rights of plaintiff to go against other parties or securities

MEASURE OF DAMAGES: • Based on amount not greater than fair market value of land • Amount to be recovered not limited to 500,000 which is maintained as standing fund • If fund is not sufficient, National Treasurer is authorized to make up for deficiency from other funds available to Treasury even if not appropriated WHERE AND WHEN TO FILE ACTION AGAINST ASSURANCE FUND: 1. Any court of competent jurisdiction: RTC in city where property lies or resident of plaintiff 2. Action prescribes in 6 years from time plaintiff actually suffered loss 3. If plaintiff is minor, insane or imprisoned, he a has additional 2QuickTime™ years andafter disability is TIFF (Uncompressed) decompressor this picture.notwithstanding removed toare needed file to see action expiration of regular period PETITIONS AND MOTIONS AFTER ORIGINAL REGISTRATION: 1. LOST DUPLICATE CERTIFICATE • Sworn statement that certificate is lost to be filed by person in interest with ROD • Petition to court for the issuance of new

•

•

title After notice and hearing, the court is to order issuance of new title with memorandum that it is issued in place of lost certificate (duplicate) If false statement, he can be charged with the complex crime of estafa through falsification of public document

2. ADVERSE CLAIM IN REGISTERED LAND • Different from lis pendens: • Lis pendens has no expiration period but adverse claim is only for 30 days: • Lis pendens is a notice that property is in litigation while adverse claim signifies that somebody is claiming better right • Recent ruling: adverse claim can only be removed upon court order, therefore, it is considered to be the more permanent and stable one as compared to lis pendens 3. PETITION SEEKING SURRENDER OF DUPLICATE TITLE • In voluntary and involuntary conveyances: when the duplicate cannot be produced, the party must petition the court to compel the surrender of duplicate certificate of title to ROD • After hearing, the court may order issuance of a new certificate and annul the old certificate • The new certificate shall contain an annotation regarding the annulment of the old certificate 4. AMENDMENT AND ALTERATION OF CERTIFICATE OF TITLE • A certificate of title cannot be altered, amended except in direct proceeding in court; summary proceeding • Entries in registration books are not allowed to be altered except by order of court • Grounds: 1. New interest that does not appear on the instrument have been created 2. Interest have been terminated or ceased 3. Omission or error was made in entering certificate 4. Name of person on certificate has been changed 5. Registered owner has married 6. Marriage has terminated 7. Corporation which owner registered Page 293 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 land has dissolved and has not conveyed the property within 3 years after its dissolution 8. What corrections are permitted in title (which does not include lands included in original; technical description as long as original decree of registration will not be reopened and rights or interest of persons not impaired; old survey was incorrect; substitution of name of registered owner) a. Alterations which do not impair rights and b. Alterations which impair rights: with consent of all parties c. Alterations to correct obvious mistakes 5. RECONSTITUTION OF ORIGINAL CERTIFICATE OF TITLE • The restoration of the instrument which is supposed to have been lost or destroyed in its original form and condition, under the custody of ROD • Purpose: to have the same reproduced, after proper proceedings in the same form they were when the loss or destruction occurred (Heirs of Pedro Pinote v. Dulay, 187 SCRA 12 [1990]) • As consequence of war, the records have been destroyed • When reconstituted, the new title have the same validity as old title • Kinds: a. Judicial • File a petition with the RTC • To be published in OG for 2 consecutive issues and on main entrance of municipality for at least 30 days before hearing • In rem proceedings • Court is to order reconstitution if it deemed fit; and issue an order to ROD • The lack of essential data is fatal SOURCES OF JUDICIAL QuickTime™ and a TIFF (Uncompressed) decompressor OF TITLE RECONSTITUTION are needed to see this picture. 1. FOR OCT (in this order): a. Owner’s duplicate of the certificate of title b. Co-owner’s, mortgagee’s or lessee’s duplicate of said certificate c. Certified copy of such certificate, previously issued by the ROD

d. Authenticated copy of the decree of registration or patent, as the case may be, which was the basis of the certificate of title, e. Deed of mortgage, lease, or encumbrance containing description of property covered by the certificate of title and on file with the ROD, or an authenticated copy thereof indicating that its original had been registered f. Any other document which, in the judgment of the court, is sufficient and proper basis for reconstitution. 2. FOR TCT a. Same as sources a, b, and c for reconstitution of OCT b. Deed of transfer or other document containing description of property covered by TCT and on file with the ROD, or an authenticated copy thereof indicating its original had been registered and pursuant to which the lost or destroyed certificate of title was issued c. Same as sources (e) and (f) for reconstitution of OCT b. Administrative • May be availed of only in case of: 1. Substantial loss or destruction of the original land titles due to fire, flood, or other force majeure as determined by the Administrator of the LRA 2. The number of certificates of title lost or damaged should be at least 10% of the total number in the possession of the Office of the ROD 3. In no case shall the number of certificates of title lost or damaged be less than 500, and 4. Petitioner must have the duplicate copy of the certificate of title (RA 6732) NOTES: • The law provides for retroactive application thereof to cases 15 years immediately preceding 1989 • When the duplicate title of the landowner is lost, the proper petition is not reconstitution of title, but one filed with the court for issuance of new title in lieu of the lost copy

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Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 SOURCES FOR ADMINISTRATIVE RECONSTITUTION: a. Owner’s duplicate of the certificate of title b. Co-owner’s, mortgagee’s, or lessee’s duplicate of said certificate CONTENTS OF PETITION 1. That the owner’s duplicate of the certificate of title had been lost or destroyed 2. That no co-owner’s, mortgagor’s, or lessee’s duplicate had been issued 3. The location, area and boundaries of the property 4. The nature and description of the buildings or improvements, if any, which do not belong to the owner of the land, and the names and addresses of the owners of such buildings or improvements 5. The names and addresses of the (a) occupants or persons in possession of the property, (b) of the owners of the adjoining properties and (c) of all persons who may have any interest in the property 6. A detailed description of the encumbrance, if any, affecting the property 7. A statement that no deeds or other instruments affecting the property have been presented for registration, or, if there be any, the registration thereof has not been accomplished, as yet PUBLICATION, MAILING AND POSTING IN PETITIONS FOR RECONSTITUTION OF TITLE: • Notice thereof shall be published twice in successive issues of the OG • Must be posted on the main entrance of the provincial building and of the municipal building of the municipality or city where the land is situated • To be sent by registered mail or otherwise, at the expense of the petitioner, to every person named in said notice • This should be done at least 30 days prior to the date of hearing. MWSS v. Sison, 124 SCRA 394 (1983) QuickTime™ and a The publication of the petition indecompressor 2 successive issues TIFF (Uncompressed) are needed to see this picture. of the Official Gazette, the service of the notice of hearing to the adjoining owners and actual occupants of the land, as well as posting of the notices in the main entrance of the provincial and municipal buildings where the property lies at least 30 days prior to the date of the hearing, as prescribed by Section 13 of the law (RA 26), are mandatory and jurisdictional requisites… If an order if

reconstitution is issued without any previous publication as required by law, such order of reconstitution is null and void. Even the publication of the notice of hearing in a newspaper of general circulation like the Manila Daily Bulletin, is not a substantial compliance with the law because Section 13 specifies OG and does not provide for any alternative medium or manner of publication. Manila Railroad Company v. Moya, 215 Phil. 593 (1984) Notice must be actually sent or delivered to parties affected by the petition for reconstitution. The order of reconstitution, therefore, having been issued without compliance with the said requirement, has never become final as it was null and void. Puzon v, Sta. Lucia Realty and Development, Inc., 353 SCRA 699 (2001) Service of notice of the petition for reconstitution filed under RA 26 to the occupants of the property, owners of the adjoining properties, and all persons who may have any interest in the property is not required if the petition is based on the owner’s duplicate certificate of title or on that of the co-owner’s, mortgagee’s, or lessee’s. Republic v. Sanchez, G,R, No. 146081, July 17, 2006 FACTS: Sanchez sought for reconstitution of titles alleged to have been destroyed by a fire which razed the Office of the ROD in June 1988. The reconstitution of the title is based on Sanchez’s duplicate title. They submitted to the RTC a Report allegedly signed by the Chief of the Reconstitution Division of the LRA stating that the technical description of the lot does not overlap previously plotted properties. Without serving notices of the petition to adjoining owners, the RTC then granted the petition for reconstitution. After the decision became final, LRA submitted to the Court another report claiming that the first report was fake and recommends that the RTC set aside its decision. LRA also claims that the notice of the petition should have been served on adjoining owners as one of the jurisdictional requirements since the Authentic LRA Report found Sanchez’s title to be a fake title. ISSUE: Whether the trial court acquired jurisdiction over the case HELD: Page 295 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 No. The source of the petition for reconstitution in the case at bar was petitioner’s duplicate copies of the TCTs. As a general rule, Sections 9 and 10 of RA 26 will apply and not Sections 12 and 13. Section 9 and 10 or RA 26 require that 30 days before the hearing, (1) a notice be published in 2 successive issues of the OG at the expense of the petitioner, and (2) such notice be posted at the main entrances of the provincial building and of the municipal hall where the property is located. The notice shall state the following: (1) the number of the certificate of title, (2) the name of the registered owner, (3) the names of the interested parties appearing in the reconstituted certificate of title, (4) the location of the property, and (5) the date on which all persons having an interest in the property must appear and file such claims as they may have. In petitions for reconstitution where the source is the owner’s duplicate copy, notices to adjoining owners and to actual occupants of the land are not required. But Puzon is not applicable here. There is no report from a pertinent government agency challenging the authenticity of the duplicate certificates of title presented in Puzon. Sections 12 and 13 of RA 26 must apply because the owner’s duplicate is claimed by the LRA to be spurious. The failure to meet any of the necessary publication, notice of hearing and mailing requirements did not vest jurisdiction of the case to the court. Thus, the judgment rendered by the RTC is void and will never become binding or final as it is a nullity right from the very start. It may be challenged at any time. Feliciano v. Spouses Zaldivar, GR No. 162593. September 26, 2006 FACTS: Remigia Feliciano filed a complaint against the spouses Zaldivar for the declaration of nullity of TCT No. T-17993 and reconveyance of the property covered therein. The said title is registered in the QuickTime™ and a name of Aurelio Zaldivar. TIFF (Uncompressed) decompressor are needed to see this picture.

Remigia alleged that she was the registered owner of a lot, part of which is that covered by the above TCT, and with TCT No. 8502. It was originally leased to Pio Dalman, Aurelio’s father-in-law. She attempted to mortgage the lot to Ignacio Gil, but the mortgage did not push through. She vehemently denies that she and her uncle never executed a joint affidavit

confirming the sale, and that TCT No. 8502 was never lost. The Zaldivars, on the other hand, claimed that Aurelio bought the property from Dalman who, in turn, bought the same from Gil in 1951. Gil allegedly purchased the property from Remegia, the sale of which was evidenced by the joint affidavit of confirmation of sale that Remegia and her uncle purportedly executed before the notary public in 1965. Aurelio then filed a petition for the issuance of a new owner’s duplicate copy of TCT No. T-8502 because when they asked Remegia about it, she claimed it had been lost. A petition for partial cancellation of the said TCT was granted and TCT No. 17993 was issued in Aurelio’s name. They also allege that they and their predecessors-in-interest have been occupying the said property since 1947, openly, publicly, adversely, and continuously or for 41 years already. ISSUE: Who is the real owner of the subject lot? HELD: Remegia is the real owner. The trial court correctly held that the CFI which granted Aurelio’s petition for issuance of new owner’s duplicate copy of TCT No. 8502 did not acquire jurisdiction. It has been consistently held that when the owner’s duplicate certificate of title has not been lost, but is in fact in the possession of another person, then the reconstituted certificate is void, because the court that rendered the decision had no jurisdiction. Consequently, the issuance of TCT No. 17993 is also void, emanating as it did from the void TCT No. 8502 in Aurelio’s name. The indefeasibility of a Torrens title does not apply where fraud attended the issuance of the title, such as when it was based on void documents. 6. REGISTRATION OF TRANSACTION EVIDENCED BY LOST DOCUMENT • ROD is forbidden to effect registration of lost or destroyed documents • Steps by interested parties: 1. Procure an authenticated copy of lost or destroyed instrument 2. Secure an order from court OFFENSES IN LAND REGISTRATION: 1. Larceny 2. Perjury: false statement under oath 3. Fraudulent procurement of certificate 4. Forgery Page 296 of 297

Civil Law Summer Reviewer ATENEO CENTRAL BAR OPERATIONS 2007 a. Forging of seal in ROD, name, signature or handwriting of any officer of court of ROD b. Fraudulent stamping or assistance in stamping c. Forging of handwriting, signature of persons authorized to sign d. Use of any document which an impression of the seal of the ROD is forged 5. Fraudulent sale: sale of mortgaged property under the misrepresentation that it is not encumbered; deceitful disposition of property as free from encumbrance SYSTEM OF REGISTRATION UNREGISTERED LANDS • • • •

• • • •

FOR

System of registration for unregistered land under the Torrens System (Act 3344) Before: covers voluntary dealings Now: it includes involuntary dealings Effect: if prospective, it binds 3rd persons after registration but yields to better rights of 3rd person prior to registration (limited effect to 3rd parties) Reason: no strict investigation involved Subsequent dealings are also valid if recorded ROD keeps day book and a register, and an index system is also kept Procedure: 1. Presentment of instrument dealing in unregistered land 2. If found in order, register 3. If found defective, then registration is refused writing his reason for refusal

QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture.

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