Gana Notes - Land Titles (Atty. Padilla)

Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

June 8, 2013 2 Segments of Subject  Regional registration procedure  Registration of titles in court Public Land Act  Administrative legalization of imperfect titles  Ends with registration of title  PD 1529 – registration of transactions involving unregistered lands  Process where given a patent or grant, based on the provisions, registration is made with registry of deeds leading to issuance of certificate of title  Under Torrens system of registration Land as Titled Land  Private Land o Section 14 – alienable lands of the public domain – related to Judicial Confirmation of Imperfect Titles o Acquired through prescription or accretion o Acquired through reclamation act o Upon compliance with all provisions of Public Land Act and other provisions regarding acquisition of lands, removed from public domain and it becomes private. Only needs showing in court that he has complied with all requirements prescribed by the government. Even the government cannot deny his right to such land.  Public o Forest (cannot be registered) o Mineral (cannot be registered) o Agricultural - if no one has title to land  Can be titled, brought under the Torrens System  Subject of patents or grants  Can be disposed through either  Administrative Process – Section 15 of PD 1529 o Given through patents o Given through grants  Judicial Confirmation for Imperfect Titles o Title is there o Just need to prove that all the law has prescribed for the acquisition has prescribed has been acquired. o Proceeding can have 2 kinds: ordinary and cadastral proceedings. Some provisions of ordinary proceedings same for cadastral proceedings.  Ordinary Land Registration o Confirming title o May find in favor of applicant that he has all the requirements for the title o If denied, can reconstitute proceeding to be granted the title. Thus, no res judicata.  Cadastral Proceedings o Initiated by the President o Public interest demands that some land be adjudicated

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Land Titles

Atty. Lorenzo Padilla

Cadastral survey is published in Official Gazette. Occupants of land must make their claims known to the persons making a cadastral survey. Cadastral land numbers are assigned. From the land bureau to the Office of Solicitor General. Latter institutes action to have land titled. More adversarial in character If it cannot be registered for claimants, declared a public land. Res judicata will apply.

Decree of Registration – Done by Registry of Deeds where land lies Land Registration Proceedings  Arises when corresponding certificates of title have been prepared and done on the basis of a decree for registration  Administrative  Land Registration Authority issues title if the decision already reaches finality Essence of Registration  Involves making an entry in registries  Either through ordinary or cadastral proceedings Adjudicating Title PD 1529  Re-enactment of old registration act  Patterned after Torrens Title from Massachusetts  Torrens is an Australian who found a way to deal with problem of land registration. He came up with some sort of security not found in other forms of registration.  In the Philippines, we had an adaptation of Spanish mortgage law which dealt with registration of Spanish titles. It allowed registration of certain forms of titles. (DIR. OF FOREST MINISTRY v. MUNOZ). There has already been a discontinuance of Spanish titles and cannot represent ownership over lands.  Torrens Title – sole mean of registering land. Right now, IPRA allows titling of lands under Torrens System.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

June 15, 2013 PD 1529, Introduction  No change as regards its substance as compared to Act 496. Most of the latter's provisions have been reproduced in PD 1529.  Shows stability of the principles. For the most part, we can say that most of SC Decisions regarding the Old Land Registration At continue to be good law despite PD 1529. That's why many of the cases assigned have been decided under Act 496.  However, there are still some changes. Public Land Act  Section 48 – contains provisions for acquiring title to alienable and disposable lands of public domain. It is now been appealed by PD 1529 where it requires possession of land of public domain to be from 1945 or earlier.  To enable us to see the interaction between that law and the provisions of PD 1529 PD 1529  Procedures of land registration proceedings  Rules of officers in charge: Registry of Deeds, Registers of Deeds  Not been modified or amended to take into account process being undertaken now by the LRA.  Land Registration Authority – can be traced through this Chronological Revolution  Problems which caused controversies which led to court litigations have now been steadily reduced on account of the application of technology to registration if transactions involving registered and registered lands.  Registration books are steadily transforming into digital format. A certificate of title originally in paper form, you may now transform it in digital format. That way, keeping of records will be digital.  You can now monitor transactions with Land Registration Authority (LRA) through the Internet using the serial number on official receipt.  Courts confronting changes in kinds of procedures as well as challenge of digitalization/ paperless recording and filing system. Important Interests – Remain stable regardless the changes PD 1529, Provisions  Whereas Clause – Ambitions of the writers of the law. To take care of problems regarding registration of lands. It managed to bring together provisions which were once contained in different laws. There's now a complimentary judicial process to land registration proceedings. Proceedings for ordinary land registration proceedings are carried over from Act 496.  Chattel Mortgages - Integrated registrations of such. Thus, did not include only registration of land. Must still go to Chattel Mortgage Law to know the processes.  Section 2 o It describes that land registration proceedings are in accordance with the Torrens System. The Torrens System was established in South Australia. The Old Land Registration act is almost a replica of the Massachusetts Land Registration Law. One of the principles of Torrens System is that ownership is acquired through registration. o First you must deal with the characterization of the land to register it. Page | 3

Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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There is public (forest, mineral, agricultural) and there is private. There is a process to acquire title over the alienable public lands. You can legalize or confirm an imperfect title.  You must achieve certain conditions in order to get a veritable title of ownership in favor of a person which he can assert even against the state. They can veritably claim private ownership. It's in those conditions that the State may be said to have given their consent to give the land. Everything else is owned by the State under the Regalian doctrine. o Describes land registration proceedings as in rem.  This refers to the effect of proceedings, which is to bind the whole world in relation to a particular property and its outcome effective against the whole world, regardless of who are the parties of the proceedings or if others are ignorant about them.  In rem proceedings are not real actions. Some real actions are in personam proceedings, they bind only particular persons.  An in rem proceeding makes a decision binding on the property. Thus, persons must be notified of the proceedings and there must also be notification. Land registration proceedings are preceded by notifications in the official gazette. People notified may not even be in the Philippines and may be ignorant that these proceedings have taken place. What is essential is the service of notice by publication and it serves as constructive notice against the whole world. You must indicate actual occupants of the land and adjacent land owners to give them time to oppose the registration proceedings or give them time to file answers. o Owners of adjacent lots may be unknown or despite search, it's hard to ascertain who owns the adjacent lots. If you say how hard you tried to find them, may be substitute to actual notice. o However, if in personam, it is important to determine the persons because it determines court’s jurisdiction. Thus, any decision the court makes will not be binding on those persons not notified. The whole world will not be affected by the proceedings. Quasi in rem proceedings also involve titles. An action to quiet title is instituted when there is doubt to who owns the land. It's not exactly in rem or in personam. The judgment rendered upon the court will be binding upon the property as regards a certain person. For foreclosure of property, they are also quasi in rem proceedings. Section 2, Paragraph 2 o Says jurisdiction of courts. o Now, RTC has jurisdiction over original registration of lands all over the Philippines. There is a similar describing Land Registration Court, but Section 2 has a slight and better change. The slight change represented a substantial improvement represented by PD 1529. It broadened the jurisdiction of Land Registration Courts. o AVERIA v. CAGUIOA: Judge decided that the case was beyond his jurisdiction since Land Registration Courts are very limited. Adversarial proceedings may take place though where the CFI acts with general jurisdiction. o However, notion of limited jurisdiction relates only to procedural matter. If parties agree, the same court may act upon the case as Land Registration Court. If they disagree, it still goes to the same court as court of general jurisdiction since the same court has 2 different roles. o Nowadays, Land Registration Courts have broader jurisdiction.  Thus, the cases regarding jurisdiction no longer apply.  "Courts of First Instance shall have exclusive jurisdiction over all applications for original registration of title to lands, including improvements and interests therein, and over all

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Gana Notes 2013

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Land Titles

Atty. Lorenzo Padilla

petitions filed after original registration of title, with power to hear and determine all questions arising upon such applications or petitions."  Land Registration Courts may now address questions not directly related to land registration but it arose while the case was pending. Extent of Land Registration Proceedings o By compliance of applicant of jurisdictional requirements, specially publication of notice of hearing in Official Gazette, the thing which can never be absence. o Finality comes when reglamentary period for appeal has expired or if all remedies have been exhausted and a final decision has been rendered and there is no longer any room for appeal. Land registration proceedings are special proceedings. o Special proceedings has for its object an establishment of status right or fact. o If the judgment of land registration court has attained finality, Rule 39 of the Rules of Court has no counterpart. Writ of possession of writ of demolition may be issued. Section 32 o Petition to review or revise a decree issuing decree of registration in favor of a different person. Victim of fraud may have decision reviewed within one year after the decree is issued. o Motions of writ of execution, if one failed to act within 5 years to further the case. o There is no occasion in Land Registration Cases to resort to Rule 39. o Land Registration Proceedings is not considered terminated until after 1 year after issuance of decree. In the meantime, proceedings are ongoing. Court, to have jurisdiction over a land registration case, the applicant must show during the initial hearings that he complied with the jurisdictional requirements. o Thus, the date of initial hearings are important. He must convince the court he has done what is required for the court to act on his claim. Initial hearing only gives court a chance to know there has been compliance with requirements. o He must publish in official gazette or post at the bulletin boards of the provincial/city/ municipal building. o If person discovers himself not having been served due notice, he is given way to question decree of registration. When so questioned and proved, it may be set aside and a new adjudication may be rendered by the court. Courts may not register lands may not be registered. o ROJAS v. CITY OF TAGAYTAY: Land Registration Court may not divest registered owner of his land. o Double or successive registration is common in jurisprudence. Land earlier registered will prevail over land subsequently registered. The court does not carry out process of registration. o It is an administrative process performed by LRA issuing a decree of registration on the basis of a judicial order. On that as basis, it will undergo proceedings to register land to the owner. o Decree by court is only a preliminary step. One must pass through ordinary or cadastral registration proceedings first. Section 14 o Occupation or possession dating 1945 or earlier. It is required only at the filing of application. o May enter forest land and apply for its title if at the time if filing, it is already alienable private land.

Cadastral Proceeding  Begun by the President of the Philippines where he orders that claims over certain lands be settled.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

Torrens System  When we were conquered by Spain, persons may claim ownership through their systems if registration. However, the Torrens Title vests one with ownership with imprescriptability. The Spanish title didn't have such characteristic.  Land Registration Proceedings under Torrens Title implies ownership. o You cannot go through these proceedings if you are not yet the owner. o If land is vested in the name of the owner not the title, the persons whose name appears there still does not acquire title since registration assumes you already have ownership.  Also, the system is instituted for the security of the registered owner. o The whole process of registration is designed to settle conflicting claims over property where you have confirmation of title proper for registration in ordinary land proceedings or in cadastral proceedings, a title in favor of the true owner. It decides such once and for all. o Thus when a title is issued it is conclusive on the whole world. The title itself quiets the conflicting claims of ownership. o Once adjudicated as owner, he is the owner until he disposes it. After it is registered, no other person may register it in his name.  Can facilitate transaction of registered lands. Possible of one with a Spanish title may lose the land if one occupies the land and acquires such through prescription.  Has established a monopoly because of PD 1529.  One who has a Spanish title will be regarded as holding property unregistered in character. Can no longer be presented in court as evidence of ownership. Limitations of Certificate of Title  Merely confirms pre existing right, not a means to acquire ownership.  It is only evidence of title. It is good only if the holder is really the owner. It also means that title may not be used to perpetrate fraud.  Protection is not considered absolute. o Person who owns a parcel of land beside the river may lose a part of the land by action of the nature. The Torrens Title does not operate to make him an owner of the river if the latter ate a part of its land. Owner is always subject to the actions of nature. o AGNE v. DIRECTOR OF LANDS: The river changes its course and makes available a vast tract of land. Even if the property is titled, it cannot extend to what is covered by the river. The owner of the abandoned river bed, under the Civil Code, belongs to the person whose property is now covered by the new river bed. He gets compensation for what he loses through the action of nature. However, he must still register that land as his. Also, because it is private property, it cannot be awarded by the government through free patents. Free patents may only allocate alienable and disposable public lands. The free patent in the case was declared to be fatally infirm. Mere fact of issuance of certificate of owner did not deprive the owner of the parcel of land.  Not a shield for illegally included lands. TARAGAY v. CA: Confirmation of entitlement to registration over broader piece of land. Lands not owned by registered owner were included. Registrant will not benefit from certificate if he does not in fact own the land. Non-registrable Matters  In law of property, there is property of public dominion and property of private ownership.  Property of public dominion is owned by the State regardless of whether or not it is registered.  There are some properties owned by the State owned in its private capacity. May be lumped together with private ownership. It may be grout under the operation of the Torrens System. Page | 6

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Land Titles

Atty. Lorenzo Padilla

Legislators may reclassify certain areas of land which may be classified as agricultural land and have it covered by certificate of title. o INTERNATIONAL HARDWOOD v. UP: Involves vast forest land in Basilan which were given to UP, covered by UP Land Grant. It was reclassified by Congress itself and awarded by titling. It was by virtue of legislative enactment that parts of the forest were withdrawn so the university may use the lands for agricultural courses. The grant to UP was sustained by the court. o Classification of land is by no means permanent. Right to reclassify lands, in the Public Land Act, it may be granted to the Executive Department. DIRECTOR OF LANDS v. MUÑOZ: Power to reclassify belongs even to the Bureaus. Section 44 of PD 1529 o Streets and public highways are not subject to registration proceedings. Even if one succeeds in registering lands, by reason of having suppressed the fact that a street is located in that land, he still does not own the land. o DPWH, Provincial Governor and Municipal Mayor need to be served notices. There are certain things which bind the title even if it is not stated in the requirements. o LEDESMA v. ___?___: Title cannot cover streets and public highways are non-registrable.as long as there is in fact a road, title to such may not be acquired by the registered owner even if the fact is not stated in the title. REPUBLIC v. AYALA: Titles were issued covering lands several meters under territorial sea. They were held not to vest ownership over land under territorial waters. They were valid only up to the extent which covered areas which are registrable. Foreshore lands are also not registrable. Government can at any time reclaim title over foreshore lands already registered. Shorelines of Laguna de Bay are lakeshore lands. o They may be titled and registrable as long as they were not reclaimed and did not go through human intervention. o Constant deposit of alluvial dirt brought about by the natural ebb and flow of Laguna de Bay may be titled and may be owned by owners of land adjacent to the river. Forest and timber lands are non-registrable. o Mangrove lands, by reason of amendment to the Revised Administrative Code, are classified as forest lands. o Before title over them may be applied, it must be proven that they were reclassified from that category. 1987 Constitution o States that the legislature must define forest areas. Government must enact certain legislation which will once and for all delineate certain areas as forest in character. o DIRECTOR OF LANDS v. MUÑOZ: Permanent classification of forest areas which are the source of Metro Manila's water reserve. Those classified as forest may later become suitable for agriculture. o Even if it lost the appearance of being forest lands, without official declassification of these lands, they cannot be registered under a Torrens System. o Legal occupation of once non-registrable lands may begin only after it has been reclassified and made available for private acquisition.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

June 29, 2013 Alienable and Disposable Lands of the Public Domain  May be acquired by private individuals  Handled by the Lands Management Bureau, which take care of claims which predate the decrees and orders which made it. o PD 1529 – Bureau of Lands. o Administrative Code – Lands Management Bureau. o They give these lands through patents and grants. They take care of Administrative legalization of imperfect titles.  Department of Agrarian Reform is now known as the Department of Land Reform and they take care of the disposal of the agricultural lands of the public land.  There is a connection with judicial proceedings leading to the issuance of a title. It is a tedious process. The title achieves some characteristics which are significant and unique to it. Kinds of Patents  Homestead  Free  Miscellaneous Sales  Others PD 1529  Section 14 o Refers to alienable and disposable lands of the Public Domain which possesses certain characteristics:  Possession and occupation since June 12, 1945 or earlier;  Possession must be open, continuous, exclusive and notorious; and  May be through the applicant himself or through his predecessors. o Also refers to ordinary registration proceedings.  Private Lands include: o Lands that are private but are acquired through prescription; o Abandoned river bed acquired through accretion or accession; and o Lands acquired by any other means as provided by law. This includes reclamation (previously did not exist the vast tract of land)  Section 53 – Patents are merely contracts between the government and an individual and  Section 103 – Breaks the land for appropriation Original Certificate of Title – Issuance through Sections 104 and 105 Transfer Certificate of Title Department of Agrarian Form  Distribute land ownership award which is registered under Section 100 of PD 1529 in favor of land reform beneficiaries  Deals with acquisition of private lands for agrarian reform beneficiaries  May deal with both registered and unregistered lands.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

PD 27  Manifestation of orientation of the Marcos Regime to undergo land reform  Among the first decrees issued by Marcos  Instituted operation land transfer where the tillers of the soil were made owners of it, with regard to certain categories of agricultural land. They were emancipated from their bondage on the soil.  They were given an emancipation patent through Sections 104 and 105 which leads to the registration if an OCT if the land is unregistered. Administrative Issued Titles  Issued in pursuance to Section 193 by the Register of Deeds  It came about without intervention by the courts  But it does not make an existence of title which is in the same category as one issued in a judicial proceeding.  It is a veritable Torrens Title. It approximates the effects of a Torrens Title issued in pursuance to a judicial proceeding. JUDICIAL PROCEEDINGS  Steps o Cadastral proceedings have become similar to the ordinary proceedings o Registration of title o Decree of registration o Note: Judicial proceeding precedes issuance of title. The decision of the court merely determines that there is a title proper for registration. In the case of a cadastral proceeding, one that is properly adjudicated for land registration.  Description o Not static but dynamic one. o Registration of title may be rejected for not having a title since they did not satisfy the 10 or 30 year prescription. The applicant may come back after he finished the time for prescription and will not be barred by res judicata. Cadastral Proceedings  Adversarial  President decides that land must be adjudicated.  What initiates it is a petition. Answers will be filed by the claimants.  The court may award the land in favor of the government. This is if the claimants cannot prove their claims. Ordinary Proceedings  Initiated by an application  The world is invited to participate  Must show there is title proper for registration. May be dismissed for insufficiency of evidence.  May result in a successful opposition since another may be more entitled for registration. The court may decide that rather than the applicant it is the oppositor that has a proper title.  The whole proceeding may be culminated in the court stating it will not register the property

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

ACTUAL DISCUSSION Who May be Applicant in Ordinary Land Proceedings  Talks about alienable lands of the public domain  They can only be natural persons, according to PD 1529  Corporations cannot acquire lands of the public domain UNLESS they are owned by at least 60% Filipino citizens. o Lands that are private but are acquired through prescription may not be owned by a corporation. o Lands acquired through accretion or accession may be acquired by a corporation since they may have already held the lands when they were gained through accretion. o PEA v. LRA: Corporations cannot be original registrants of reclaimed Lands. Corporations cannot hold lands of the public domain.  Lands acquired by any other means as provided by law. o DIRECTOR OF LANDS v. IAC: Lands of the public domain, alienable, already possessed by an individual for 30 years when the Public Land Act only required 30 years of possession and occupation. He sold it to ACME company, thus he became the original registrant. The Court held that the moment the conditions prescribed under the Public Land Act, Section 48, the land ipso jure becomes private property since registration proceedings is merely acknowledged. o NUGUIT v. REPUBLIC: Held that Section 14 of PD 1529 will result in absurd cases. The requirement of June 12, 1945 or earlier refers to occupation and possession, not the character of the land as alienable and disposable. Thus, it only needs to be such at the time of the filing of the application. The characterization of agricultural land may have come to be EVEN AFTER June 12, 1945. However, if the land were forest land before June 12, 1945 and reclassified as alienable land of the public domain and occupation started when it was still forest land, the doctrine here will not apply. o REPUBLIC v. CA  Cadastral Registration Proceedings were instituted for lands in Marivelles but they have to yet been reclassified from the category of forest lands. The applications were dismissed since the subject matter was non-registrable. Five years later, they were eventually reclassified as agricultural land. Later on, the titles were issued to such land in favor of other persons since the land was turned into a subdivision.  Held that the titles were void since even in the lands of subsequent purchasers for value. The requirements for the titles were not yet satisfied since the time the land was reclassified and the registration proceedings were only 5 years from each other. o BORACAY CASE: There used to be titles over Boracay Island For the Terons. Boracay was eventually called a tourist destination by a PD. Persons were given titles to the land but they knew they could not have titles to the land since it was a tourist preservation. However, PGMA declared the lands alienable. The persons who had title to the lands tried to have it registered in their name. However, it was only recently that they were classified into alienable and disposable. So, should the PD calling Boracay a tourist destination be discounted, thus persons with title may count their occupation of it still before the issuance of the PD? o MALABANAN CASE:  Took into account Nuguit and other decided cases. In connection with Section 14, Section 48 of the Public Land Act recognizes those whose predecessors occupied lands of the public domain from June 12, 1945 based on the quality of their possession. During the entire time of possession, he may have it registered AS SOON AS it is declared alienable and disposable. Page | 10

Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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Prescription does not run against the State. Thus, it does not allow acquisition of public alienable lands through prescription.  Public domain lands only become patrimonial when they are declared alienable and disposable and there is an express government manifestation that the land is patrimonial under Article __?__ of the Civil Code. Patrimonial property is already private property, thus may be registered through a registration decree. There are two kinds of prescription in which it may be acquired.  Under ordinary prescription, ownership is acquired after 10 years if good faith and with just title.  Under extraordinary prescription, 30 years is required regardless of good faith and just title. Patrimonial property is private property incidentally belonging to the government and subject to prescription under the Civil Code. Section 14 of PD 1529 o Addresses the question of who would be entitled to make registration in a sale with a right to repurchase. The seller or buyer may institute the application. o The court will acquire notice regarding the agreement and will release title in favor of the vendor or vendee. o The court must be informed of the transaction while the registration proceedings pending Section 22 of PD 1529 o After the filing of the application and before the issuance of the decree of registration, the land therein described may still be the subject of dealings in whole or in part, in which case the interested party shall present to the court the pertinent instruments together with a subdivision plan approved by the Director of Lands in case of transfer of portions thereof and the court, after notice to the parties, shall order such land registered subject to the conveyance or encumbrance created by said instruments, or order that the decree of registration be issued in the name of the person to whom the property has been conveyed by said instruments. o The law seeks to secure transactions involving unregistered lands. o NATIONAL GRAINS AUTHORITY v. IAC:  Understates importance of Section 22 of PD 1529.  Sold the same land with right to repurchase. The right to repurchase was not exercised. The only ones who knew were the parties to the transaction.  For transactions involving unregistered land, registration is needed to make it binding on third persons (Section 3 of PD 1529). Fact of retro sale was registered under Section 194 of the Administrative Code, and subject to better rights. Had they registered it under Section 22, the Court would know it was the subject of a sale. Their failure to bring it to the attention of the courts was to the detriment of the buyer-spouses.  The land was registered in the name of the seller a retro. The title was eventually used as collateral with National Grains Authority by the seller a retro. When the property was foreclosed, the interest of the buyers a retro collided with the National Grains Authority. For the viewpoint of the National Grains Authority, the title did not indicate the claims of buyers a retro.  The SC held that the buyers a retro's claims were cut off from the land. Registration pursuant to Section 194 of the Administrative Code, and subject to better rights of the National Grains Authority. Section 139 of PD 1529 involves registration of unregistered lands. Trust o Beneficial ownership may be removed from bare ownership. Page | 11

Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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The law allows action for reconveyance of title in favor of the owner. Title is unchallenged and its validity is presumed. In the hands of a purchaser for value, the title may no longer be questioned. When land is under an administration of an estate, an executor would be managing the estate pending the distribution to the beneficiaries. May be accomplished through an extra-judicial settlement.

Registration Proceedings  When two or more parcels of land are applied for, they may be combined in a single application as long as they are all within the jurisdiction if the court. The RTCs have exclusive jurisdiction over these cases. o When the land borders on a road, whether public or private road, it is required whether the applicant claims land within the limit of the road. It is best for the applicant to have the line of the road determined since the land is non-registrable. o Additional facts may be required by the court to facilitate registration.  Jurisdiction is determined by the land applied for. The application must be filed with the court having jurisdiction where the land lies.  It is best to draft your application along the format suggested by the law itself. o The form is not simply a form since it contains substantial details regarding the land applied for registration. o It includes the names of the persons occupying the land and adjacent properties. If the occupants of the adjacent land is unknown, may just state how hard they looked for them. If they do not actually look for the adjacent land owners, it is actual fraud.  Actual Fraud – Effort to deprive a person an opportunity to participate in the proceedings. It will help a person avail the remedy under Section 22 of PD 1529.  Clerk of Court is not obliged to accept the application unless the Director of Lands is provided a copy of that application.  Once the application has been accepted, the clerk of court must furnish the LRA a copy of the exhibits and such on file. o Section 2 of PD 1529 – The Land Registration Authority functions like a clerk of court in connection to land registration cases. It must publish the application form in the official gazette and must even ask the sheriff to post those application forms. o REPUBLIC v. DOLDOL:  The thirty year period will no longer apply since occupation must be during June 12, 1945 or earlier. The problem it spawned was that persons who were about to complete the 30 year occupation were suddenly disregarded.  Vested right doctrine only applies to those who already finished the 30 year period.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

July 6, 2013 PD 1529 – One of the most important remedies available to persons aggrieved by land registration. ORDINARY PROCEEDINGS Application  Before going to the clerk of court, serve first a copy to the Director of the Lands Management Bureau. Or else, application will not even be accepted.  Upon receipt of court, the next duty is to set the case for initial hearing by issuing an order. The order is of a particular format that is suggested in PD 1529 itself, entitled "Notice of Initial Hearing."  And then, there is service of notice of the petition. o Who is serviced:  Those likely to be interested; includes applicant of adjacent land owners.  Some government departments are also serviced.  If with public or private roads, DPWH.  If near bodies of water, Department of Fisheries.  If the land is tenanted, Department of Land Reform. o It must be personal service. o Proof of service is needed. o Bulletins boards of provincial/municipal/ city building must also have them.  Finally, there is publication in the Official Gazette. o Absent publication, the court will not acquire jurisdiction. They will only have jurisdiction over the persons interested. o Notice is already a constructive notice to the whole world; the world is resumed to have notice of the proceedings.  Must file with RTC. o After the oppositions have been filed, it may delegate the case to a Municipal Trial Court. You cannot file directly with the Municipal Trial Court.  PD 1529 o Has form for notice of judicial hearing. It is addressed to all who are concerned which reflects in rem character. o Order of general default symbolizes once refusal or failure to participate in the proceeding and becomes binding on the whole world, including the government.  Must necessarily be accompanied with a duly approved survey plan of the land claimed and muniments /evidences of title. o There are practitioners whose work consists of surveying lands. They conduct an inspection of the place and can plot out the metes and bounds of the land. They translate this into a graphic representation called a survey plan. They also translate it into a written document called a technical description. o The survey plan must be approved by a duly approved engineer and must also be approved by the Lands Management Bureau. o Spanish titles can no longer be evidences of ownership. Initial Hearing  At the initial hearing, the court first determines jurisdictional facts: existence of order for initial hearing, posting thereof in relevant bulletin boards and publication in the official gazette. o The applicant must have complied with these.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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Petitioner is asked to provide proof of compliance with jurisdictional requirements. This is because land registration is a special proceeding since it creates a status. This is the time when the court finds out there are oppositions as well as the assessed value of the property. o Other persons interested must file an opposition. The court determines if there are oppositors to the application up to the date of initial hearing. o The court is allowed to grant time in order to admit opposition. o Court will then announce in public if there are oppositions to the application in case you have not read the notices, the postings or the publication. It is to inform the world, symbolically, that there exists an application. Then, the court issues an order of default. This may be special or general. In an in rem proceeding, general default is important. Those who did not appear on the date of initial hearing may be considered in default. If there is no opposition or controversy, may be delegated to the Municipal Trial Court.

PD 1529 seeks to control even the length of the trial and before whom it will take place. This is hardly followed in practice. Not need to be before the court. o May be before a commissioner even at some other convenient place as may be deemed proper. There is a broad authority which allows flexibility in conducting a trial. o The commissioner must submit a report and the court may adopt it or reject it and recommend for further proceeding. Most of the time, it adopts the repost of the commissioner. There is a reglamentary period of 30 days for appeals. ____?___ v. ___?____ : Reglamentary period for land registration proceedings is 15 days. Unlike other special proceedings, the rules are as in stated in ordinary appeals. If there is no appeal, it attains finality. o The decision may no longer be modified or changed. o It becomes incumbent on the Land Registration authority to issue a decree of land registration. One year after, there is in fact a remedy of having the decision reviewed. Two different titles are issued at the same time. NIETO CASE: To differentiate difference in priority. You may have a title that was issued on the same day. The first one issued will prevail over the second one. The second one is void. In decree of registration, there is only the relevant matters in the judgment.

Whatever is contained in the title is what is contained in the decree. What is in the decree is in the judgment. The judgment is done by the judge. The decree is done by the Land Registration Authority. The Register of Deeds does the title.

Cadastral Proceedings  Much like an ordinary action  Claimants file answers Corporations as Applicants  Regarding prohibition against corporations acquiring lands in the public domain, it has limited application in Section 14. Page | 15

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Atty. Lorenzo Padilla

May be applicants in ordinary land registration proceedings in the context of other lands mentioned o Owner of abandoned river bed and titled according to Civil Code o Owners of accretions along the banks of rivers

Incidental Rules for Applicant  When two or more lands are involved in an application, territorial jurisdiction of the RTC is questioned. o If they are in different jurisdictions, must file in a court of different jurisdiction. If the court has no territorial jurisdiction, it cannot render a decision regarding such land. o For as long as the court is RTC, subject matter is satisfied. The land falling in a different place is merely a matter of venue. Venue is procedural while subject matter is substantive.  The applicant must claim if it claims any portion of the land within the limits if the law. o To avoid future problems, it must be alienated. o Example: Even if a title were issued for public roads, the title is invalid as far as the road is concerned. You can never acquire title to such road.  Court may also acquire additional facts other than those in the suggested format. Publication  Notice of Initial Hearing o The order setting the case for initial hearing. o Unlike in ordinary action where the courts operate with a clerk of court, in land registration proceedings, the administration of the Lands Management Bureau is the assistant.  Section 23 of PD 1529 o Commissioner of LRA must cause it to be published once in Official Gazette and once in newspaper of general circulation. o The publication in the newspaper may be absent as land as it was published in the a Official Gazette. Must be sufficient to confer jurisdiction upon the court.  o It is only publication in Official Gazette which gives jurisdiction. o If it is not posted, it is only an irregularity and will not render a fatal infirmity in jurisdiction. o Failure to serving an adjacent land owner deprives one from participating and the remedy is to have the judgment reviewed and not to question the validity of the judgment, and must be within one year of Decree of Registration and the title must not have landed in the hands of innocent purchaser for value. o BENIN v. TUAZON  The family of Arroyo used to own a vast tract of land originally covered by 2 titles at the time of the Spaniards in the system of encomienda. They were both subject to publication in the Official Gazette. Later on, there were amendments to the survey plan and there was no subsequent publication.  The SC ruled that the amendment regarding the decrease does not need to be published, since no one can claim prejudice. The original publication does not operate to establish fatal infirmity. The amendment which increased was invalid since it was substantial and it needed publication. If it was incredibly minimal, there would be no need for publication.  The Land Registration Authority acts as clerk of court and the LRA commissioner is the one who causes the service of notice after 9 days of ____?_____. o If their names are not owners of adjacent land owners, some interested persons may not be served with a notice. o Service of notice may only be given to persons known to the LRA. Page | 16

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Atty. Lorenzo Padilla

Other persons must be given notices as well. Some of them may not have interests in it. Thus, it depends on the circumstances of the case. Even posting in bulleting boards is under the supervision of the LRA and they are to be posted by the sheriff.

Who are Entitled to Oppose  Section 23 – Any person claiming an interest may appear an opposition on or before the date of initial hearing. If he doesn't make it, the court may extend it. o They may or may not be mentioned in the application. o Interest gives standing to participate in the case. May be curiosity.  LEYVA v. JANDOC: Tenants cannot file an opposition but the landowner may.  Mere absence of opposition does not entitle the applicant a decree in his favor. o He must still prove he is entitled to the land. May be dismissed if they fail to establish title. o An oppositor may succeed and may even have the land titled to him. o VDA. DE CAILLES v. MAYUGA: Mere absence of opposition does not entitle the applicant with a judgment in his favor. Order of Default  Operates to strip those covered by it of standing in the proceeding.  Having interest in a proceeding is different from being entitled to have standing in the proceeding. They must have filed an opposition within the period given by the court.  May be special or general  If declared in default, Court may cause the lifting of the default in order for a person to participate in a proceeding. o Must file order to lift default within the reglamentary period. If not, you are bound by the order of the court. o In due time, may be given remedy by having the decree reviewed within one year after its issuance. How to Prove Respective Claims  GUTTIEREZ HERMANOS v. CA o Vast lands in Masbate was being claimed but no proof could be presented by the applicant except previous transactions with banks which showed that some areas were used for mortgage. They claimed ownership as long as a tribe in Banaue. Thus, they claimed that the system of registration by the Spamish and Americans could not divest them of the title. However, they could not establish their title. o Burden is on the applicant to prove his positive averments. He must prove he has title for registration. It is not up to the government or oppositors to prove he has no title for registration. The quantum of proof must be clear and convincing evidence.  In the context of Regalian doctrine, the wealth of the nation belongs to the State. o The citizens may only claim a part of the wealth of the State. o If not proved, the land is government land in light of the Regalian doctrine.  Tax declarations and tax receipts is not evidence of ownership. o Anyone can pay taxes and the government will be all too happy to accept. Just because the government accepts it does not mean it recognizes you as owner of the land. o You must be the owner first before you pay taxes, not the other way around. o However, tax receipts and declarations are proof of possession prescribed by law for acquisitive prescription. Page | 17

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Atty. Lorenzo Padilla

It establishes claim adverse to land in possession. However, it does not apply to lands in public domain since prescription does not run against the State.

Nature of the Judgment  Merely confirmed title  You can only avail of the process ONLY IF you already have title  It is not a mode of acquiring ownership and not used as a shield for fraud. o Land grabbing will eventually be revealed. o The land may be recovered by the rightful owner.

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July 20, 2013 Tips    

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If a statement accords to a ruling, that would be the correct answer. Each item is 2 points. Get Feria to give her e-mail address to sir for material for the exam. May refer to cases not specifically assigned to us. o As future lawyers, you will always need to go over various materials for cases. o Best to pinpoint the particular aspect of the case relevant to the subject. No need to go over them word for word. o CHALLENGE ACCEPTED. Read o GATIAON v. GAFFUD  Applicant 1 was issued a free patent and complies with the conditions. He got a certificate of title and he mortgages the property.  Applicant 2 applies also with the LRA for the same land. He was also issued a title. He offered the same property as collateral for his loan.  Both titles were issued administratively. Only one way be valid.  When Applicant 1 paid his mortgage, the bank refused to release the property since it was also covered by Applicant 2's loan. The bank decided to just be an innocent purchaser for value.  The SC held that when the titles were issued in favor of the first applicant, it was registered and served as notice to the whole world. Even if the bank were innocent, the law charges them with existence of notice of prior title. Thus, the bank could not be legally ignorant that the title covers the same property. It could even be held the bank was negligent and could not have been an innocent purchaser for value. o DBP v. MANGAWANG  A fellow has a piece of land which is the subject of a cadastral proceeding.He filed a claim with the trial court and the Director of Lands that that property is his. He was successful. The director issued a patent in his name. He received an OCT.  He won in the trial court and was issued another OCT.  He sold one title to A and sold the other to B.  The SC held that the first title is valid since the Director of lands can issue a free patent which can be the basis of a CT. The later title issued is also valid. Both titles speak the truth that the property is registered in the original owner. The court stated though that the original owner may only use one. The first one used invalidates the one not used. o LEGARDA CASE  Title was issued over the property. Another title was issued for a portion of the previously titled property.  The SC held that even though the second applicant was innocent, he was already charged with notice of the previous issuance of title o REALTY v. IAC  Three conflicting claims over property in Las Piñas. All claimants were issued a title over the same parcel of land.  The title first registered is the valid one.  The registration of the title serves as notice to all those who are living and all those who are yet to be born.

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Remedies  From the viewpoint of a stranger to the proceeding who felt aggrieved or prejudice.  What benefit the law promises the aggrieved  There is a monopoly in favor of the Torrens system of registration as far as registering titles to land in the Philippines is concerned. If you want protection for your ownership over a land, the only way to go about it is to participate in the system. REVIEW Private Land  Registration Proceedings o Ordinary o Cadastral  Procedures intersect and become common, regardless if it is ordinary or cadastral  Initial Hearing o Default Order  Indispensable to court proceeding  Only those who participate in the proceeding are given standing  The rest of the world is in default o REMEDY: Interested party may ask for  Time to file  Time for opposition  Judgment o Culmination o REMEDY: May ask to lift order of default  May be based on  Fraud  Accident  Mistake  Excusable Negligence  Requires affidavit of merit (???) o Before finality, you have another REMEDY  Motion for New Trial  Motion for Reconsideration  Re-evaluates conformity based on law and facts proven  If not able to participate, no evidence except the applicant's  Motion for Appeal – How can you appeal when nothing on record will help prove your point  All three remedies require an affidavit of merit o Reaches Finality  Signals entry for judgment  No religious significance  A book called "Book of Judgment" where judgment is rendered  Not yet beyond recall, though  REMEDY: Petition for relief from judgment  Filed in 6 months within entry of judgment o Fixed term after moment of judgment o Can be shortened Page | 20

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Atty. Lorenzo Padilla

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Law allows it to be reviewed only within 60 days from notice. Remedy becomes discountable after.  Relevant Grounds o Fraud o Accident o Mistake o Excusable Negligence  REPUBLIC v. ASSOCIACION BENEVOLA: o Remedy was availed of by the government more than ten years after judgment. The decision of the trial court was served only on the fiscal, not the Office of the Solicitor General. Since the OSG was never informed, Chavez was informed when he became general only after ten years after proceeding. After notice, he acted within fifteen days. o The SC held that the reglamentary period never ran because the appropriate agency was never notified.  Finality is attained after 1 year  Title becomes conclusive  REMEDY: Petition for review of revision of the decree of registration Issuance of Decree of Registration o Gives an OCT – Never issued unless the Decree is entered o No legal interval between issuance of OCT and issuance of Decree of Registration  Always the same date  No legal significance in the use if the two terms since it means the same thing o NIETO CASE  A free patent is issued with a Certificate of Title. A cadastral proceeding also issued a judgment and a decree on the same date for property. The priority in time ruled cannot be applied.  The SC went back to the date of finality of judgment. The Certificate of Title, the Issuance of the Decree and the Issuance of Judgment all happened on the same date. In rem proceeding, the cadastral proceeding, binds the whole world and can no longer be the object of a patent or grant pursuant to administrative proceeding in front of the Director of Lands. o AGNE v. DIRECTOR OF LANDS: Director of Lands has no power over private lands, only over alienable and disposable lands in the public domain. o The title becomes incontrovertible or indefensible.  May be become so even before the one year reglamentary period by a purchaser in good faith for value.  Those actions or claims not noted on a certificate of title is not binding on the purchaser for value and on the land. Those claims are already cut-off, even if they had no notice of the proceedings.  EXCEPTION  Section 32 o Mentions only actual fraud o However, you can still avail the remedy in the context of titles suffering from fatal infirmity.  Title suffers from a fatal infirmity, thus it is an absolute nullity. It kills the judgment and title even before it is issued.

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BENIN v. TUAZON: Absence of publication or republication may make the title and judgment suffer from a fatal infirmity. AGNE v. DIRECTOR OF LANDS: The director cannot issue a patent over private property since he does so beyond his authority. REPUBLIC v. VDA. DE KALINTAS: There was controversy in the proceeding, thus the municipal court could not have decided on the case. Because the judgment was issued without jurisdiction, it was an absolute nullity. MARIVELES CASE o When the case was initially filed, the case was dismissed because the land was forest land. Later, it was reclassified as alienable. Two years later, cadastral proceedings ensued and titles were given for the land. o The SC held that the titles could not have been issued since only two years have elapsed and are null and void because they suffer from a fatal infirmity. All derivative titles were also nullities. YABUT LEE v. PUNZALAN: o There was a resort to Section 32. The section presupposes the issuance of a decree, us it is not an appropriate remedy before issuance of the decree or judgment. o The SC held the motion for review in accordance to Section 32 as motion to set aside the order for default. o It referred to RIVERA v. MORAN, where the SC held that the moment there is a judgment, you can even forget the other intermediate remedies since the decree is the same as a judgment anyway.

The remedy thereafter, after the title is incontrovertible and indefensible, is equitable in nature.  Petition for reconveyance o Shortcut! o Can be filed the moment a judicial proceeding is begun o Presupposes respect for the Certificate of Title and taking it as incontrovertible and indefensible o Issuance in the wrong name  Express trust  SOTO v. TEVES o Deceased father died and left the widow and children vast tracts of land in Cebu. The title to the lands were placed in the name of Concepcion, a daughter under trust. If she dies, the property goes to her sister. Concepcion married Soto, thus really making him an heir to the properties. The heirs of Soto got involved. o The SC held that the agreement to place the properties in the name of Concepcion is an express trust. The Teves family did not revoke the trust since she was already exercising it. Also, the ones for whom they held the title were not informed of the repudiation if the express trust.  The express trust can be a ground for reconveyance which is imprescriptible, even if there is a buyer for value.  However, it is also susceptible to being converted into an implied trust and it has a prescriptive period of 10 years.  Repudiation o Must be clear and unequivocal o It must be conveyed to the cestui que trust or the beneficiaries Page | 22

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Implied trust  Constructive Trust  Article 1456 of the Civil Code: Whenever property is acquired through fraud or mistake, the person acquiring it receives it in trust for whom the property belongs. o It is the essence of a petition for reconveyance. o An action founded on fraud prescribes in 4 years.  GICANO v. GEGATO o The SC pointed out that under the Old Civil Code, an action for implied trust prescribes in 4 years. The Old Code had no provision on fraud. Now, however, the petition for reconveyance may be filed within 10 years. o Fraud cannot be considered as an independent basis for reconveyance. A cause of action founded on fraud has the same allegations as those not founded on fraud. What is determinative is the object for reconveyance to bring about a situation where the title holder is asked to reconvey the title to the real owner by reason of him acquiring title through fraud. o May also be void due to a void contract  SPS. JOCSON v. NATIONAL TREASURER  Sale of property in Quezon City by one who claimed to be the registered owner, Lopez. The spouses went to the place and it was exhibited to them. The spouses entered into an arrangement with the person claiming to be the owner. However, they did not sufficiently clarified the identity of the owner. That person also claimed he did not have an owner's duplicate of the certificate of title but said that if he were paid, he would secure it himself. Eventually, that person managed to receive a copy of the owner's title. The seller eventually disappeared. The real owner appeared and he had the owner's copy. The spouses proceeded against the assurance fund.  There are 2 broad grounds for claims against assurance fund: o There was no negligence on his part and he was bringing the land under the Torrens system; and o Misfeasance (mali), non-feasance(wala) and malfeasance (masama) of the personnel, the courts, or any other person that can be related to the process.  The SC rejected their claim on the ground that they were negligent. Person who buys from an impostor never receives the rights of a purchaser for value. o Does not work on an innocent purchaser for value since he is bound only by the 4 corners of the title. Petition to Quiet Title o Another title covering the same property titled in your name constitutes a cloud over your title. o Petition for declaratory relief o Available to either  Legal owner  One who owns a beneficial title (Example: Person who was allowed to stay on the land by the owner) o Resorted even when proceedings are only being initiated over the same land under another persons name. It is to avoid the possibility of losing title to the land Page | 23

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Reversion o The government allows claims over alienable public land to remain and those claims are incomplete unless certain processes and conditions are complied with. o Conditions to complete it may be grounds for reversion. o Title may have been issued but government was defrauded and made to believe that the conditions were complied with. Criminal case o SC has already recognized the civil aspect which includes nullification of titles and contracts related to the criminal case o Includes falsified titles where they may attack the titles falsified o May grant remedies normally available to purely civil cases

Purchasing properties from an imposter  Cannot claim rights of innocent purchaser for value  TRADERS ROYAL BANK CASE: SC recognized the rights of innocent purchaser for value in favor of two parties with opposing interests. Nevertheless, it resolved the problem on the basis of laches. Section 44 of PD 1529  Declare guarantee in relation to title under the Torrens system  Exceptions o Claims liens and rights which need not be registered in order to be binding on an innocent purchaser for value o Public roads, streets, canals, and the like o Disposition of the land in accordance with agrarian reform program.  Those provisions have efficacy on the land even if there is no notification on the title Section 32 of PD 1529: Registered land  Not subject to prescription  Cannot be subject to collateral attack

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Atty. Lorenzo Padilla

August 10, 2013 Certificate of Title  There are 2 copies  One is retained by the Register of Deeds – If this copy is lost or destroyed, it may be replaced by Section 110.  The other is surrendered to the registered owner o Known as owner's duplicate o When this is lost, the process if replacement is governed by Section 109  Both copies are original copies Subsequent Registrations  After original registration of title  Registration o In relation to the transactions of land already registered o Does not include registering the land once more  For notice to the whole world 2 Main Concerns in Subsequent Registration 1. Transactions/ "Dealings" a. Before the Registry of Deeds b. Mainly administrative in character o In the context of registering an ordinary sale, the court does not meddle o In the context of an involuntary sale, the court only issues the writ of execution but the sheriff executes it. c. Kinds o Full ownership  Exemplified by  Deed of sale  Deed of donation  Transfers full ownership of land subject to tile o Less than full ownership  Exemplified by mortgages  Covers only interest and some aspects of ownership over the property, but not the whole of ownership  Example: Lease contract involves right to enjoy property during the period covered by the lease.  Does not contemplate that the original owner steps out while another steps into his place. Formed by o Voluntary o May be through  Deed of sale  Mortgage  Arises through consent of owner  Kinds  Sale  Lease Page | 25

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Atty. Lorenzo Padilla

Mortgage Others

Involuntary  Arises without consent of the owner or even against his will  Example  A judgment creditor's properties may be sold by the sheriff. Some properties may be registered land.  When a person sues another and anticipates that another may abscond with his property, he may secure a writ of preliminary injunction/ writ of attachment at the initial stage of the proceeding. It arises without the owner's consent  Specific types of transactions are treated as involuntary a. Adverse claim  Whenever a person acquires a right over the land adverse to that of the original owner, the right may be annotated on the title as an adverse claim.  There is a specific procedure for this but its character is involuntary. Among the changes that transpired in PD 1529 is that the procedure for adverse claims were modified. The adverse claim remains on the title in pursuance to Section 44. If noted in the title the claim of someone else, it is considered notice to the world.  SAJONAS v. CA – Until adverse claim is cancelled by order of the court, it would still produce notification of claim on the land sufficient to prevent the buyer from claiming he is an IPV. b. Attachment c. Notice of lis pendens – Means there is a pending case involving the land. Whoever buys the land buys it despite the subsequent disposition of the case. Thus, if the seller loses the land, he cannot claim the land. d. Foreclosure in a mortgage - The sheriff in a foreclosure sale signs the deed and it goes against the owner's will.

2. Petitions and actions filed  Section 2 of PD 1529 – Jurisdiction of court. Includes petitions filed after original registration.  Filed with court itself o Section 107 – Concerned with surrender of owner's duplicate. Example: You buy registered land and a Deed of Sale is executed in your favor. However, the seller refuses to surrender the owner's duplicate of registration of title. Section 107 allows you to file a proceeding in order to cause the surrender of the owner's duplicate. o If there are errors in the certificate of title or if there are interests that have expired on the title, how are they removed? Section 108 provides the amendment or alteration of the title. o Section 109  Replacement of owner's duplicate.  SPOUSES JOCSON v. TREASURER OF THE PHILIPPINES: The spouses bought land from an imposter who managed to secure an owner's duplicate in the name of the real owner. The spouses were negligent in not verifying the identity. When the real owner appeared, the title they acquired were of no value and were not even entitled to recover from the assurance fund. o Section 110 – If the copy with the Register of Deeds is destroyed.  Because of PD 1529, there was only judicial reconstitution. This was because of a number of land- grabbing cases done through administrative reconstitution. However, Page | 26

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there are occasions when reconstitution cases cover large numbers of land. A circular was released which covers mass reconstitution cases, a mode of consolidating a number of individual reconstitution cases.  Eventually, it was also realized that administrative reconstitution was a valid mode. Thus, the administrative constitution was not abolished but the titles must be no less than 10% of the titles in the Register of Deeds but not more than 500. Administrative reconstitution is an in personam proceeding, thus judicial reconstitution of titles, which are in rem, have a certain advantage. Section 113 – Registration of transactions relating to unregistered lands. Lands registered under the Spanish Law may not be registered under this Section.

Kinds of Registration  May be o Manual  Priority in time, priority in right.  With reference to the date of registration.  Example: One registers the transaction and the other does not. Even if the one who did not register bought the land first, he has an inferior right to the one who registered it first.  Must comply with the requirements for registration. If there is deviation, there is no registration. DBP v. REGISTER OF DEEDS OF NUEVA ECIJA: Entry alone in primary entry book as long as the registrant has done all required from him and all that is needed is the registration if the Register if Deeds, he can already claim priority of registration even though the subsequent transaction may supervene which complies with all the requirements and the Register if Deeds has finished the registration.  Process (OLDTIPS) o Electronic  Because we live in an electronic word  No law providing for such in addition to PD 1529. The law did not take into account what would happen if machines were used.  If this were to be done, it must be done consistent with PD 1529 o Would still have to take into account  Voluntary  Requirements  Voluntary instrument  Surrender of the owner's duplicate of certificate of title  Not needed in involuntary registration. Example: In the case of an adverse claim, the adverse claimant need not surrender the owner's duplicate if the certificate of title.  If not complied with, the transaction cannot be registered  Payment of corresponding fees  Entry fee  Registration fee  Other requirements are not included in PD 1529  Involuntary  Requirements  Involuntary instrument  Payment of corresponding fees Page | 27

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Atty. Lorenzo Padilla

Entry fee Registration fee

May apply to o Agricultural lands  Department of Agrarian Reform must first be approached for clearance before one goes to the Registry of Deeds.  LUZ FARMS CASE – Agricultural lands are arable lands for the purpose of determining what rules are applicable to them. o Other lands  Commercial  Residential  Industrial Must pass through Bureau of Internal Revenue (BIR) o Concerned with  Capital Gains Tax  Estate Tax  Donor's Tax  Transfer Fee – To be paid to the city  Real Estate Tax o Will issue evidence you have gone through them and evaluated the taxability by issuing a document of tax clearance certificate o You will be asked for several items  Deed of Sale?  Quantity  Received or not  Number of copies  Owner's duplicate of certificate of title o Must pay  Entry Fee  Registration Fee The moment you submit your documents, you're not even required to pay right away. You are given 5 days from entry. You must also pay the entry fee during that time or else the entry in the primary entry book will be invalidated. This is legal. For purposes of the claimant to claim he has fulfilled all the requirements, the effect of registration is produced after complying with ALL requirements. MINGOA v. LAND REGISTRATION ADMINISTRATOR: o A lawyer tries to beat the deadline in the Comprehensive Agrarian Reform Law. He failed to comply with the other requirements. o The SC held that the filing prior to the deadline of the law is legal even without the other requirements outside of PD 1529. ROXAS v. DINGLASAN o Two spinsters wanted to secure their future by buying a parcel of land where they could love together during their golden years. After the Deed of Sale was executed, it was turned over to them. The owner's duplicate was missing but it was gotten by the husband of the seller. The husband executed a Deed of Mortgage by forging a signature in favor of Rojas. After getting the loan, the husband no longer pays. Two interests were in conflict. The spinsters claimed that they had a prior interest while Rojas claimed he was an IPV. o The SC held that the spinsters had to lose the land in favor of the mortgage. It was not enough that they were in possession of the land. Page | 28

Gana Notes 2013

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Atty. Lorenzo Padilla

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In the context of Section 113, possession is 99% of ownership or better rights. Acts or circumstances must be proved to establish better rights. o However, in this case, the spinsters should have consulted a lawyer who would have advised them that failure to obtain the owner's duplicate should have at least annotated their adverse claim on the title so that they will be protected. That way, the notice would inform everyone that the land was subject to the interest of the spinsters. NGA v. IAC: Spouses registered the transaction under Section 113 but failed to bring the pacto de retro sale to the attention of the court. Thus, the seller seemed like he was still the owner of the land, the decree cut off the claim of the spouses. Thus, the NGA, being an IPV, was not bound by the claim of the spouses. FULE v. DE LEGARE o An old woman had a small house in Sta. Mesa. She adopted a son named John De Legare, a real estate broker. An intruder appeared in their house who tried to rob the house was willing to come back the next day for the amount. John De Legare convinced his mother to satisfy the demands of the intruder. The mother was transferred to Ermita and the house was left alone. John prepared a document signed by the mother. The mother thought it was a mortgage but it was actually a sale. o John sold the land to the Spouses Fule. He even had the owner's duplicate. The spouses relied on that and they were able to register the land. The documents of John gave sufficient authority in the Register of Deeds to register the lands in favor of the spouses. o The SC held that the spouses relied on the registrability of the documents and that they would result in the registration of the land in favor of John De Legare. The policy to protect IPVs led to this decision. The SC held that her misplaced confidence lead to the situation. DURAN CASE o Repetition of FULE v. DE LEGARE o The mother broke the trust of the daughter o The mother made it appear that the daughter sold the land in her favor. Thus, she manage to get a certificate of title in her name and she managed to secure a mortgage. She did not bother to pay and the lot was foreclosed. The daughter found out and tried to prevent the mortgage from foreclosing. o When the mortgagee dealt with the mother, the title was already in the name of the mother. While it is null and void, it may still be the root of a valid title in the hand of an IPV. Since the daughter came too late at the time the mortgagee relied on the title, she could no longer recover the property MEDINA v. TIAMPO o Land in Baguio was acquired through means of fraud 7 years ago. While title was in the name of the acquirer, it was eventually transferred. o When it was in the name of the transferee, a case to recover was filed against the transferee. The case did not even reach the trial stage. It was quickly dismissed since the ones sued were not privy to the fraud and they were IPVs, even if the transferred was guilty of fraud, such could not apply to the IPVs. The original owners of the land cannot run after them. SISTERS OF MARY CASE o Title to the land was assailed because prior to the acquisition of the Sisters of Mary, the title was previously acquired through means of fraud. However, it did not indicate that they knew of the fraud but they did rely on the title of their transferor in his name. o The SC held that the complaint does not indicate they were privy to the fraud. All they did was rely on the four corners of the certificate of title which indicated that the transferror was the owner of the land. CABALAN CASE Page | 29

Gana Notes 2013 o

o o

o

Land Titles

Atty. Lorenzo Padilla

Cabalan is a private lender. On the basis of a loan by her, she was able to foreclose a piece of land in Mindanao Avenue. The land was actually owned by the mother of the first transferor. The daughter registered the land in her name and mortgaged the same to Trilight Co. Cabalan as a mortgagee relied on the title of Trilight. Being an IPV, she should be protected and should not be held liable for the fraud. The SC held that what is peculiar about the complaint is that there was a suggestion that the action of the daughter in transferring the title and mortgaging the same to Trilight is a continuing scheme. Trilight and Cabalan were alleged to be privy to the fraud. It suggests that Cabalan herself was privy to the sequence of transfers. There is a need for trial to prove the allegations of the complaint and not be simply dismissed like in SISTERS OF MARY and MEDINA. If it appears that the daughter alone is responsible for the fraud, Cabalan would be an IPV. However, if they are privy, even if there were subsequent transfers, all these would be subject to nullification because they were all obtained through means of fraud. No protection for an IPV is involved.

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August 17, 2013 REVIEW Electronic Registration – Not present in all places; some still do it manually Registration of Subsequent Dealings of Land  Administrative  No longer have to go through the court  Evidenced by corresponding documents, whether it is voluntary or involuntary registration  While contracts are enforceable no matter the form they may come in, it is without prejudice to formalities required to document registration of land Contracts  Deeds of sale, mortgages  To be registered in Registry of Deeds  Must be in a public instrument ACTUAL DISCUSSION Other Possible Requirements for Registration  Certificate of clearance from BIR  Present proof of payment of transfer tax in the city or municipality where the land lies  Real estate tax clearance also needed involving real property REGISTRATION View point of Registrant 1. Is it voluntary or involuntary? 2. Do you have the requirements? a. Voluntary i. Instrument ii. Owner's duplicate iii. Payment of corresponding fees b. Involuntary i. Instrument ii. Payment of corresponding fees iii. Only two requirements since it did not arise from the will of the registered owner and even over his objection. 1. How can the registered owner be expected to surrender the owner's duplicate? 2. BALDING v. ILOCOS SUR: Involves lot registered under the Torrens system and shared with co-owners. All certificates of title in the office of the Register of Deeds and registered owner ought to have identical entries. Must look at the four corners of the certificate of title with the Register of Deeds, not the certificate of title only with the owner. Agricultural Land i. Must go through the Department of Agrarian Reform, now known as Department of Land Reform, first ii. To secure clearance, only ________?_______ may get such iii. Agricultural land must only be at most 5 hectares Page | 31

Gana Notes 2013

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Atty. Lorenzo Padilla

iv.

All transactions entered into before the Comprehensive Agrarian Reform Law may be registered even without a DAR clearance during a 3 month period c. The moment all that is required of the registrant is accomplished, the registration is deemed completed. i. DBP v. ACTING REGISTER OF DEEDS OF NUEVA ECIJA  Survey of all previous decisions regarding when effect of registration obtains  Current doctrine  Spouses X, being the owner of land covered by TCT No. 1, mortgaged the land to DBP. DBP gets certificate of sale over the land after foreclosure. To prove they were the highest bidder, the auction sheriff executed a certificate of sale, which is subject to a one year period of redemption. The period of registration begins to run after the issuance of the certificate of sale. The certificate of sale does not yet deal with full ownership.  The Register of Deeds made an entry in the primary entry book. When the Register of Deeds was about to place an entry in their duplicate, they found out the certificate of title they had on file was missing. The Register of Deeds had DBP reconstitute the title. The reconstitution took 4 years.  The entry on the registration book was to be made presently, when the reconstitution ended, and not dated when the reconstitution finally ended. Thus, DBP would still be declared owner one year after entry.  Entry alone in the primary entry book, whether the transaction is voluntary or involuntary is sufficient to produce the effect of registration as long as the registrant has done all that is required of him for purposes of registration and nothing more is left to be done but a duty incumbent solely upon the Register of Deeds.  The law does not appreciate an interval between the entry in the primary entry book and the entry in the registration book. They are deemed to have occurred at the same time.  Absence of that record cannot be excused with ignorance of it  There is no distinction whether the transaction is voluntary or involuntary. However, the classification is necessary from the view point of the registrant regarding the requirements expected from him.  With banks, they always require the submission of the owner's duplicate for mortgages. ii. VILLASOR v. CAMON  Someone submitted documents for the purposes of registration. He surrendered the owner's duplicate and he pays the corresponding fees. The Register of Deeds makes an entry in the primary entry book. War breaks out before the register issues a new title. The old owner sell the land to someone else  The court held that the second buyer cannot be an IPV. The entry in the primary entry book is sufficient to effect registration. iii. MINGOA v. LAND REGISTRATION ADMINISTRATOR  Mingoa may have owned agricultural lands in excess of the limits. He executed deeds of donation in favor of his children. Thus, it is a voluntary transaction for full ownership.  However, Mingoa acted a bit too late. He decided to mail the requirements instead, then the time of filing would be before the deadline.  In the folder, he sent all the relevant Deeds of Donation and owner's duplicate and postal money order for the registration.  The court held that the date of filing was the date when he sent the mail. Thus, the Register was to do all his duties and date them on the date the mail was sent. Page | 32

Gana Notes 2013

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iv.

BERANDA v. GUSTILO  Conflicting claims of ownership over land.  The court held in a categorical manner requiring the Register if Deeds to register the transaction in favor of the winning parties  Highlights the ministerial nature of the duty of the Register of Deeds. He has no discretion of his own. Ministerial duty only covers the registrability of the document. He may meddle when, for example, deed of donation is not in a public document  Section 117 - The Register of Deeds may deny the registration and elevate the matter to the Land Registration Authority. May be lifted to the Land Registration Administrator. If the registrant disagrees, he may appeal by certiorari through Rule 43 to the SC. v. DE LEGARE v. FULE  The court acknowledged the rights of the Spouses Fule  The spouses relied on the registrability of the instrument  Highlights the importance of the requirements for registration. Whomever has the owner's duplicate of title has conclusive authority for the Registry of Deeds to make registration, no controversion. vi. One case – CA  Certain areas in Quezon City are covered by overlapping titles  Titles are not necessarily spurious but they were produced outside the files of the Register of Deeds.  Prudential Bank became a victim if mortgage transaction the title to which turned out to be false, the issue was raised as to that her the a register if Deeds may refuse to register transactions involving those titles if there is an indication that those titles may be fake  To allow the Register of Deeds such power would be to give him judicial power. He cannot refuse registration even if he has a suspicion that these are fake since the Register of Deeds has a ministerial duty only. vii. Another case – SC  The Register of Deeds cannot blindly register land when he knows fully well that the land is registered elsewhere.  Same plot of land was registered elsewhere. viii. TIBUNCIO AND CO. CASE  Chain of title doctrine shows spring was rising beyond its source since an invalid transaction may become the source of a valid title.  It is void only so far as the transaction but not with regard to the title. The title is viewed as registered and continues to be registered. However, if the original title is void, it cannot give rise to a valid title even if in the hand of an IPV. 3. Have you paid the necessary taxes? View Point of Register of Deeds 1. Voluntary transaction a. Dealings of full ownership  Related to when ownership itself is transferred from the transferor to the transferee  Entry in the primary entry book 1. Preliminary step in registration process is required to be made in the book 2. Section 56 of PD 1529 describes the preliminary step in the registration process 3. Common with less than full ownership  Registration book  Not a book Page | 33

Gana Notes 2013

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Atty. Lorenzo Padilla



Compilation of certificates of titles 1. TCT No. 1 becomes cancelled a. The title will bear an annotation "CANCELLED" b. The old registered owner will be replaced by the new owner 2. TCT No. 2 is issued, as a consequence of the cancellation of TCT No. 1 b. Dealings of less than full ownership (Section 54)  Related to mortgage, lease, etc. when ownership is not affected  Interferes only with the use of the land  Many different uses  Entry in the primary entry book  Registration book 1. TCT No. 1 is retained - No more mortagee or lessee's certificate of title in PD 1529; there is only the owner's copy 2. The register merely places an entry on the Memorandum of Encumbrances a description of the transaction 3. Encumbrance must be annotated in the title to be binding on the land o If he does all, then the Register of Deeds has done all that is required of him. o IPV is bound only by what is found in the certificate of title. He is not obligated to go beyond the four corners of the certificate of title. Thus, the transaction must be appropriately annotated in the certificate of title or the first TCT must be cancelled and a new one issued in favor of the new owner.

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August 24, 2013 LEGARDA CASE – All the world is charged with any instrument contained in the Register of Deeds "Chain of Title" Doctrine  IPVs deriving their title from a void title when they relied on the titles if their predecessors  There can be acts if registration obtained with the employment of fraud which according to Section 52 would be void.  However, a void title may give rise to a valid title. o We do not refer to a title suffering from a fatal infirmity. o It is only void because it was registered through fraud.  The title issued under the Torrens system covers land that could registered. If the title covers forest land, that title will suffer from a fatal infirmity.  REPUBLIC v. IAC: Registration of land in Marivelles covered by the Marivelles Cadastre. When the cadastral proceedings were initiated, it was only 5 years since the reclassification from forest land. Some people insisted that they have been occupying the land for 30 years. Some of the lands were converted into subdivisions. IPVs relied on the certificates of title of the sellers which were validly registered. The SC held that the original titles were null and void.  Despite the number of titles, you can never have a valid title when it is sold by an impostor.  HUDGENS v. TIBUNCIO & CO. CASE o Tibuncio & Co. would send only a representative to Ilo-ilo every once in a while to pay for the tax. It could not really watch over the land. The old owner took advantage of it and secured a certificate of title in her favor. She sold it to another company. There was no indication whatsoever that it belonged to Tibuncio & Co. o The SC held that the owner has been resting secure in the belief that the Torrens system would protect it in its property. Obviously, it could not fault Tibuncio since sit had done nothing to lose its title and part with its ownership. On the other hand, Hudgens had misplaced its confidence in the imposter and thus would have to suffer the loss.  CAVILLES & CAVILLES v. BAUTISTA & BAUTISTA (1999) o Decides the case based on the doctrines in ACTING REGISTER OF DEEDS OF NUEVA ECIJA V. DBP. You must look at the two sides of the process. i. What is required of the applicant  Depends on whether it is voluntary or involuntary registration. Banks, however, are always expected to have the requirements for a voluntary registration  As long as he does all that is required of him for the purposes of registration and entry has been made in the Primary Entry Book, then that would suffice for the purposes of effecting registration ii. What is required of the Register of Deeds  Entry in Primary Entry Book  Make an annotation on the copy on file of the Register of Deeds. Then after, he cancels the original TCT if in the case of a sale.  The Register of Deeds must advise the owner to surrender his TCT so that the owner's may have the same annotations as the copy with the Register of Deeds o In the case of an involuntary registration, there is first a preliminary attachment where the property is brought under custodia legis. In this case, such attachment was secured. o As far as the Register of Deeds was concerned, he made the corresponding entry in the Primary Entry Book but failed to make the annotations on the certificate of title. The buyer relied on such clean certificate of title when he bought the property. Page | 35

Gana Notes 2013 o

o

o

o

o

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Atty. Lorenzo Padilla

The SC held that although someone was misled due to the failure to annotate the certificate, there was after all an entry in the Primary Entry Book. This produced the effect of registration; thus, even without annotation, all the world is charged with notice. Therefore, the person who acquired the preliminary attachment should prevail over the IPV. "Parity of Good Faith" – both the spouses who bought the property and the person who secured a preliminary attachment were held FACTUALLY in good faith. However, being able to claim good faith does not mean being able to acquire better title than the person who first registered it in his name. Furthermore, good faith depends on whether you were charged with notice. Because there was an entry in the Primary Entry Book, they were given notice; thus, the spouses could not be held in good faith. TRADERS ROYAL BANK v. CA (1999)  MUST READ  Land was mortgaged to Traders Royal Bank. The land was foreclosed.  However, the mortgagor claimed that there was lack of consideration. Thus, it was void.  The owner filed an annotation in the title a notice of lis pendens. Thus, the property is now subject to the outcome of the case. So a buyer of the property buys it at risk and he gambles on the outcome of the case.  Traders Royal Bank managed to get a certificate of title in its name during the pendency of the case. The duty of the Register of Deeds is to carry over the annotations. However, it failed to include the notice of lis pendens. If the original owner wins, Traders will have to return the title to the original owner.  Traders sold it to a third person. The title was clean and it showed that it was not subject to the outcome of proceedings.  The SC held that the moment the notice of lis pendens was annotated on the title, it already produced notice to the world, including the third party buyer.  The third party buyers were in good faith since they checked with the Register of Deeds and there was nothing there that could incite suspicion.  The SC held that the owner may have been guilty of latches though since it took him 15 years to inquire about the annotation in the title.  The solution was to hold Traders liable for the monetary value of the land in favor of the original owner. LEVISTE v. NOBLEJAS  MUST READ  A subdivision developer in Parañaque succeeded in preparing the survey plan and technical descriptions of the lots but they were not yet separated from the mother title.  There were different buyers. SPOUSES NICANDRO v. REGISTER OF DEEDS OF QUEZON CITY  A land was developed by the instrumentality of the government  The land was titled and the title was divided into separate lots. Each lot would eventually receive its own title.  The process of issuing separate titles for the separate lots was not yet finished. One lot was sold to the Spouses De Cantro as buyers.  At the time of sale, there was a complete description of what land was sold. However, the owner's duplicate of title covering that lot was still pending. For some reason, all they had was a photostatic copy of the deed of sale. Thus, they could not comply with the first requirement for registration. They also did not have a copy of the owner's duplicate of title.  They filed a notice for adverse claim but it did not state that they did not have the owner's duplicate with them. Page | 36

Gana Notes 2013

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Atty. Lorenzo Padilla



o

The SC held that a notice for adverse claim was ineffective as means of informing the world of the prior rights of the spouses. Thus, a subsequent encumbrancer would have a superior right over them. DINGLASAN CASE  Spinster sisters could not register their land because the whereabouts of the owner's duplicate of title.  The SC held that they should have done an involuntary registration by the name of a notice of adverse claim.

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Gana Notes 2013

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August 31, 2013 Where Registration Ineffective  Not preclude transactions from the same parcel of land  SPOUSES NICANDRO o They were purchasers from the PHHC. o Because what they registered was not a contract to sell but an adverse claim based on a photocopy of a contract to sell.  NOBLESTE CASE o Record rights arising from an agreement to sell was not effective and therefore did not preclude subsequent parties from acquiring rights. o The Spouses Villanueva only recorded their deed of sale after those subsequent transactions Where Registration Effective  DBP v. REGISTER OF DEEDS o The registration was only up until the recording in the primary registration book o Held that that was enough to make registration effective  Electronic registration has facilitated this  SAJONAS v. CA  LEVISTE v. NOBLEJAS Affidavit for Adverse Claim  Effective for a period of 30 days o To limit the life of an adverse claim o Although PD 1529 purports to overall the land registration laws, there are only 3 places that were modified by it compared to the old land registration act. This is one of them. o The person asserting such claim will be compelled to go to court before the 30 day period expires.  Produces legal effects until cancelled by it. Thus, any registered owner may be harassed by frivolous cases.  Impediment to any subsequent transaction after that notice.  Rendered ineffective o If the claim is seen as frivolous o If the person registering it withdraws, a case to give a title to the person giving an adverse claim may proceed. o If the person who files an adverse claim withdraws o If the person who files an adverse claim has a hearing for it, he may file for a notice of lis pendens. o When cancelled by means of verified petition (also called a sworn petition)  May be filed in court or the RTC if the petition is filed during the 30 day period (ACCORDING TO SIR ONLY)  May be filed with the Register of Deeds if the petition is filed beyond the 30 day period (ACCORDING TO SIR ONLY)  Section 70 o Tells you what you need to do for a Notice of Adverse Claim o Also tells you the requisites for a Notice of Adverse Claim  A claimant's right of interest in registered land is adverse to the registered owner  Arises after original registration  In Section 44 we are told that every registered owner receiving a title in pursuant to a decree of registration holds it free from any lien or encumbrance not noted therein. This

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is because one need not go beyond a certificate of title for hidden defects concerning the land.  Thus, the decree of registration cuts off or quiets all claims on the land existing prior to the issuance of decree of registration. The decree of registration quiets title to the land.  If no other provision is made under this decree for registering the same  SPOUSES NICANDRO v. REGISTER OF DEEDS OF QUEZON CITY  There was a contract to sell.  The right of the spouses was acquired under that contract to sell.  The same land was subject to a mortgage in favor of GSIS.  The court held that for them to acquire rights, they should have registered that contract to sell. They should not have registered an adverse claim.  There may have been prior registration by the spouses, it does not exist within contemplation of the law at all.  If you have an agreement to sell as basis for registration of land, you have to register that agreement and not record a notice of adverse claim.  LEVISTE CASE  SPOUSES SAJONAS CASE  The spouses registered a notice of adverse claim based on the contract to sell rather than registering the contract to sell.  The Spouses Pilares acquired rights under a judgment (Rule 39 of Rules of Court). They executed their rights against the property and had a notice for levy on execution noted.  A deed of sale was executed in favor of the Spouses Sajonas. A new TCT was issued in their favor. That's why they have rights subject to the sale of the execution. This is because when that was recorded, PD 1529 made the notice of adverse claim good for 30 days only so that by the time the notice of levying execution, it was as if there was no notice of adverse claim.  By the time the notice for levy was annotated, the title was already subject to a notice if adverse claim. Because it was never cancelled by court order, it was still effective.  Thus, the mere lapse of the 30 day period does not render the notice if adverse claim ineffective.  Violates PD 1529 and the doctrine of SPOUSES NOBLEJAS. SANCHEZ v. CA o The bank, instead of applying payment to the more onerous debt, it decided it would be more favorable to it to apply it to the loan without a mortgage. o The bank decided to place a notice of adverse claim against the land based on a mere money claim. o Held that such money claim could not be a basis for a notice of adverse claim. The bank could instead file a case for money claim and file a writ of preliminary attachment under Section 69.

Notice of Lis Pendens  There are two separate provisions regarding this. One in PD 1526 and one in the Rules of Court.  Co-terminus with the case itself. It may be cancelled when it can be shown that it is not necessary to protect the rights of the person subject to the case (Section 71)  In personal actions, the Notice of Lis Pendens is not needed.  ORDOÑEZ v. MENDEZ o Several parcels of land in Cebu o His marriage with his prior lands yielded several parcels of land recorded in their name. Page | 39

Gana Notes 2013

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Atty. Lorenzo Padilla

o o

 

He remarried and had land recorded in his name and his second wife. The children from the first marriage believed that it may be necessary that the court intervene in his decisions since he was no longer in possession of his full mental faculties. o A guardianship case ensued. o In such a case, the court held that based on the nature of the issues of the guardianship proceeding (sale of the property by the person who is the object of the guardianship proceeding), a notice of lis pendens should be available. SARMIENTO CASE MAGDALENA v. HOMEOWNERS ASSOCIATION o The case was already pending with the Court of Appeals o A petition for discharge of lis pendens was filed with the court of origin. o Held that the CA should have decided if the lis pendens should be discharged

Laws on Land Reform  PD 27 o One of the promises of the Martial Law Administration o It came out shortly after Martial Law o Operation land transfer o Made tenant-tillers owner of the land to emancipate them from the bondage of the soil o Up to this time, implementation of this law is still being carried out in some places o Implementation applied to rice and corn lands. Other kinds of lands are not covered.  Comprehensive Agrarian Reform Law o Covers all kinds of agriculture land except those exempt (like those who cannot be used for agriculture) o Instead of making the tenant-tiller the owner of the land, it conceives of a process of acquisition done through the government through the Department of Agrarian Reform and financed by the Land Bank of the Philippines. o It is possible to receive ownership of land you have no relationship to. o May not alienate it within 10 years after acquisition unless through government financial institutions. o Maximum of 5 hectares retention limit. If you already have 5 hectares, you may no longer buy agricultural land.  Replacement is through a judicial proceeding

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Atty. Lorenzo Padilla

September 14, 2013 Section 70  Recording of Notice of Adverse Claim  Notice must be cancelled before its effects may be stopped For purpose of allowing voluntary transactions which cannot be registered on account of inability of transactions Section 107  Voluntary dealings o Unless one can surrender the owner's duplicate of the title, registration cannot be effected o One who has in his favor a voluntary transaction but has no owner's duplicate, he has in his favor a choice to present in court to present that such voluntary transaction did exist and registration may still be effected  Involuntary dealings o If you constitute a mortgage on registered land, you have to annotate the mortgage on the title o No need to hand over the owner's duplicate but the owner is still required to present the duplicate within 36 hours so that there will be similar entries in the owner's duplicate and the duplicate with the Register of Deeds. Nonetheless, the Register of Deeds cannot refuse to register the dealing just because the owner's duplicate was also not presented. The remedy of the Register of Deeds, through Section 107, to go to court and compel the owner to register the latter's duplicate. If the owner still refuses to surrender the duplicate, Section 107 indicates that the duplicate with the owner may be cancelled and a new one issued so that registration may be finished. Section 108  Direct proceeding provided by law for amendment of a certificate of title  Provides a separate list of grounds to make the remedies available  SAJONAS v. CA: Section 70 cannot be interpreted in a way that the Register of Deeds can just cancel an adverse claim that goes beyond the 30 days. A court order is needed which is issued under Section 108.  If there is necessity for canceling a notice for adverse claim  No erasure or alteration may be made in the registration book after entry of certificate of title by amendment of the Register of Deeds without court order, even if the error was made by himself. The moment an entry is done, it cannot be corrected by the Register of Deeds himself and may only be corrected by the interested parties.  CLERICAL ERROR LAW: If there are minor (harmless, innocuous, non-controversial) corrections, they may be made through an administrative process. However, such law does not apply to Section 108. You need a more extensive proceedings.  A registered owner or an interested party or Register of Deeds himself may apply by petition for amendment of correction of the certificate of title on the following grounds: o That which appears on the certificate of title has already terminated or ceased. Example: A lease contract already expired and still annotated on the title, and you are not satisfied with just it becoming known that it is e paired, you may have it cancelled. o A new interest arises that does not appear on the certificate of title which has not been annotated and can be registered, and the parties want to have it annotated. Example: Acquisition of land in the Philippines by foreigners is forbidden. However, they are not forbidden from owning buildings. These foreigners may protect themselves by registering their interest in the title.  SALITA v. CALLEJA: A residential building was built on registered land and it was registered according to Section 113. The certificate of title of the land did not indicate interest over the Page | 41

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residential building, the accessory follows the principal. Thus, the levy on the land included the residential building even if the building was not owned by the owner of the land.  In the Philippines, we have leases extending to almost 25 years. The right of the owner of the building cannot be secured merely by a lease agreement. There may be a need to register that interest over the building through an annotation in the certificate of title of the owner of the land. Thus, when the owner of the land enters into any transaction regarding the land, the person with whom he is transacting will have notice of the interest. The owner of the building will have to go to court and have his interest annotated. o There is an error on the certificate of title.  Example: There is a mistake in the name of the registered owner or when the name of any person on the title has changed.  Other details in the certificate of title may relate to the registered owner who was single and then married or was married and then divorced. A change of name or civil status or both may be needed. o The title is issued to a purchaser. The mortgage in the previous title no longer needs to be annotated again in the new title to be issued in favor of the purchaser at a foreclosure sale. ABABA v. DIRECTOR OF LANDS

REPLACEMENT OF LOST OR DESTROYED CERTIFICATES OF TITLE OCT/TCT  One with the Register of Deeds o Normally referred to the original although it is also just a duplicate o Best to refer to this as 'copy on file with the Register of Deeds' or 'copy in the registration book'  One with the Registered Owner o Normally referred to as the duplicate but then, all of them are duplicates really (hahaha) o Best to refer to this as 'owner's duplicate of the certificate of title' Which remedy is appropriate is determined by what copy is destroyed  Copy on file with the Register of Deeds o Section 110 – Reconstitution o May be  Administrative under Public Land Act (RA 6732)  Cannot always be resorted to  There are specific requirements in Section 106 before this may be available  Depends on the number of certificates of title lost, destroyed or stolen. Must at least be 500.  Ratio thereof to the number of certificates of title with the Register of Deeds. Must at least be 10% of all certificates of title in the registration book.  The owner's duplicate must be available based on which administrative reconstitution may be undertaken. If it is not available, you must rely on secondary evidence enumerated in Section 2 & 3 of RA 26 and through a judicial reconstitution.  Reconstitution may still be done judicially even if the requirements for administrative reconstitution are available because of the potential of abuse in the administrative process.  According to Section 7, even if a particular interest is not noted on the administratively reconstituted title, it may still be binding. An IPV is not excused. However, such reservation is only valid for 2 years. Page | 42

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SAJONAS v. CA: You must go to court to file an application indicating why the reservation must be canceled. It's a summary proceeding.  Beware of administratively reconstituted titles!  Judicial under RA 26, as amended  Similar to an original certificate of title  Whatever is not noted on the title is deemed cut-off  Whoever relies on such judicially reconstituted title is deemed an IPV and is not liable to by encumbrance not noted on such title.  Harder to secure because it needs a full-blown judicial proceeding. The difficulty is designed as a safe-guard since the whole world is given notice and given an opportunity to participate. It is an in rem proceeding. If one refuses to participate, it may work adversely against his interest.  Not subject to a reservation under Section 7  RA 26  Section 2A - Owner's duplicate  Section 2B - Co-owner's duplicate (Does not exist anymore)  Section 3A - Transfer certificate of title  Section 3B - Co-owner's transfer certificate of title (Does not exist anymore)  Same validity as the originals thereof  Sections 2 & 3 gives a hierarchy or priority. Owner's duplicate of the certificate of title o Section 109 - Replacement of owner's duplicate of certificate of title o Owner needs it in order to deal using the property o A purchaser really must go to the Register of Deeds in order to check whether or not the owner's duplicate is legit since there are involuntary dealings which do not require the owner's duplicate. You may go to the Register of Deeds and ask for a certified true copy or check the records themselves. If the purchaser merely relies on the owner's duplicate, he may miss something.

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Administrative reconstitution is certainly not available when o Basis is other than basis of owner's certificate of title. Includes Section 2A, 2B, 3A and 3B of RA 26 o LESS THAN 10% o LESS THAN 500 titles o There is no requisite that judicial reconstitution is a prerequisite to administrative reconstitution o Chances are, the answer is C Administrative reconstitution is subject to a statutory reservation according to Section 7 o Don't confuse with notice of adverse claim which is okay available for 30 days o It is not automatically cancelled o Best to refer to codal o Answer sounds like D In a suit for recovery for possession of land, ground is lack of service of notice was missing though posting if notice and publication is not in dispute. AL AMEN v. CITY OF LEGASPI. o Through the City of Legaspi, there is a public road leading to the city hall. Someone is claiming to be the owner of that land. AL Amen tried to reconstitute the title in its name. A notice of initial hearing was published and other requirements were complied with. However, no personal notice was served on the City of Legaspi. Page | 43

Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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The SC held in favor of AL Amen. First, the records are not before the court. Since the fact of judicial reconstitution is not disputed and there is presumption of regularity in the reconstitution of title, such must be relied by the court in a case in recovery for the possession of land. The presumption of regularity must first be overthrown. Second, the fact of lack of personal notice is not in question. o Answer is A REPUBLIC v. DIRECTOR OF LANDS TRILOGY: o They all started out with a petition for reconstitution of title of land in Parañaque. A certificate of title issued because if a sales patent in 1942 covered 86 hectares. Millions of people are affected. o Emphasizes requirements for judicial reconstitution contained in Section 12 & 13 of RA 26 (READ THIS) which must be made with exactness and precision. The slightest deviation will operate to deprive the court of jurisdiction. If a title is given during such proceedings, it will be deemed null and void. Because the reconstitution was done in secret, all those who did not participate still had claims. o Section 12: For petitions from 2 and 3 shall be filed with the proper CFI if your basis is not owner's duplicate. Jurisdictional requirements:  Owners duplicate  No co-owners or mortgagor or lessees duplicate has been lost or destroyed (not existent anymore)  Area and boundaries of property must be indicated  Nature and description if improvements which do not belong to the owner of land and the names and addresses of the owners of the building  Occupants, owners, owners of adjoining property and all other interested persons must be detailed  Encumbrances o Notice of petition must be published twice in successive issues of OG and posted in the main entrance of city or municipality hall at least 30 days prior to initial hearing at cost of petitioner. Sending of personal notice must also be sent through registered mail at cost of petitioner at least 30 days prior to initial hearing. o Petitioner is an old woman living in Quiapo. She did not have resources to comply with requirements of Section 12. She omitted a number of them. o The area in the title is not one that exists in land o Importance of Section 12 and 13  So many occupants to be informed and almost impossible. If they are not notified, the proceeding is null and void.  Even if logistical nightmare, it is still required.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

September 19, 2013 REVIEW Petitions and Actions Filed After Original  Surrender of Owner's duplicate of title  Voluntary  No need to go through Section 71 before Section 107  Section 71: Register of Deeds continue with registering even without owner's duplicate. He must advise registered owner to surrender the latter's duplicate. If the owner refuses, the Register of Deeds himself may use Section 107.  One may institute summary proceeding to cause registered owner to surrender his duplicate. If he refuses, it may be cancelled and a new one made out to facilitate the transactions if owner just surrendered his copy.  Involuntary  Amendment or erasures on certificate of titles o Resort to the court o Section 108: Register of Deeds has no power to make such amendment or cancellation o Certificate of title is not subject to collateral attack, only direct proceeding o Section 32 may also be used for such direct proceeding  Replacement of copy in possession of registered owner o Section 109 o Not really reconstitution o Only a replacement. What is to be substituted with a new one is the owner's duplicate  Replacement of copy with Register of Deed o Copy has been lost or destroyed o Reconstitution o Section 110 o Certificates of titles are in duplicate. One with registered owner and the other with Register of Deeds. Use this to determine which remedy would be appropriate. o Elaborate proceeding  Administrative  Loss or destruction involve a number of titles; thus, hardly happens  Subjected to abuses  Tool for land grabbing  Used by syndicates  Absence of substantial safeguards  Only with the Register of Deeds  Abolished by PD 1529 but brought back by DOJ and RA 26  Judicial  Requires publication in Official Gazette twice in successive issues  TRILOGY OF DIRECTOR OF LANDS v. CA, ETC.  Landmark cases  Importance is underscored by: Compliance by two sections must be done with exactness and precision. Any deviation will deny jurisdiction over the case and if it proceeds without jurisdiction, the proceeding will be subject to nullity.

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

ACTUAL DISCUSSION Section 110  Transactions involving registered land Section 113  Transactions involving unregistered land  Does to involve itself with registration of unregistered land  NHA v. IAC o Not proper to resort to this section if land has been classified has been land pending land registration proceeding. Making the transaction binding upon the land is prescribed by Section 22 which states that land pending registration may still be subject to transactions and those parties interested must bring the court's attention to such. o The spouses lost their land recorded the transaction. Escorted it under Section 113.  MANGLAPIL CASE o To be binding upon third persons, there is need to register transactions though they may involve unregistered land.  ROJAS v. DINGLASAN o Spinsters lost the land because they failed to register the transaction based on Section 51 and succeeding sections. They were content with just possession. o While possession is important, it's not everything. The person who is the registered owner will not lose the land to one who possesses the land since prescription does not apply to registered land. o Transfer of possession does not hold with registered land. It is registration that is required for actual transfer of ownership in the Torrens system.  MANOPOL v. PILAPIL o Facts  Land was bought from several persons with the same last name, Siapos. He never took possession. Seller remained in possession.  Buyer only had the private instruments executed by the seller. It was not notarized.  Seller ended up selling to another person, Pilapil. Their sale was in a notarized document. The transaction was also registered under Section 113. There was already constructive transfer of possession through the public instrument. At the same time, he also had actual or physical possession.  Buyer ended up filing a case for possession. The court ruled in his favor. However, by this time, he realized Pilapil was already living on the property. o Held  Priority in time, priority in right  Used better for Section 113 which talks about better rights.  There was no defect at all since transfer of ownership was determined by possession which is a mode of transferring ownership, not because of Section 113. However, Pilapil's registration was still subject to better rights.  Manopol could not establish better right since all he could present was priority in time. The court held that simple priority in time did not give better fit. Better right referred to facts and circumstances paired with registration which could give better right. Without the facts or circumstances, registration itself under Act 3344 will not give better right.  Thus, Pilapil had better right.  SALITA v. CALLEJA o Facts

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Gana Notes 2013 

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Land Titles

Atty. Lorenzo Padilla

A particular parcel of land was purchased by a certain Mercedes Domingo from Realty Investment, Inc. with the consent of the husband. The property was placed in the name of the wife. The sale was on installment. The Spouses Domingo built their house on the land. In the process of paying off the purchase price, Realty Investment transformed the sale on installment to an absolute sale with mortgage which transferred title to Mercedes Domingo but the latter was still indebted for the purchase price. The indebtedness was cured by the mortgage. Default of Mercedes Domingo would result in Realty Investment foreclosing the land. Mercedes Domingo sold the land to Salita and it was titled to him. Calleja sued the husband of Mercedes, Francisco. Upon filing of the complaint, Calleja secured a writ of preliminary attachment. However, at the time, the title was still with Realty Investment. Thus, the writ of attachment was over the house. He registered such lien under Section 113. The purpose of writ of attachment is to put the house in custodia legis. Calleja eventually wins the case. The house was executed upon but before it could be sold, Salita filed a third party claim. Salita claims he was owner of house because he eventually became owner of the land (immovable follows the land). The lower court held that the third party claimed had no merit. Salita filed an injunction. The injunction was denied.

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The SC held that Salita owned the house. Since the house stands on registered land, the registration of any claim or lien over the house must also be done under the Torrens system. Registration of lien is determined by the character of the land.  The importance of Section 108 arises. Calleja should have established his interest through Section 108. ORTIGAS v. CITY OF MANDALUYONG o All who acquire lots in the area must devote their land to residential purposes. o Land was eventually used for commercial and industrial purposes. The non-conformity is very clear. o Restrictive covenant is enforceable during the life of the covenant. To change or extend this requires the concurrence of all lot owners. o On account of the circumstances that transpired in the vicinity and because it was used more for commercial and industrial purposes, the restrictive covenant was deemed obsolete. o The Mandaluyong ordinance which allowed the use of the area contrary to the restrictive covenant was a valid exercise of police power. SANGGALANG CASES, TRIAS v. GREGORIO, ETC. o Respected the use of parts of Bel-Air subdivision contrary to residential purposes. o Makati and Metro Manila ordinance classified the area as a commercial area. The area was validly used for commercial purposes. o We can control the particular use of land contrary to the restriction in the certificate of title which is normally binding in the land. The binding effect is not absolute and may give way to police power.

DISCUSSION OF FINAL EXAMS 1. Requirements for Registration o What differentiates voluntary from involuntary o Involuntary transaction does not need the surrender of the owner's duplicate o Do not get distracted with nature of the registration! 2. Documents to be sent through registered mail

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Gana Notes 2013

Land Titles

Atty. Lorenzo Padilla

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Case of MINGOA where a law practitioner from QC did not go personally to the Register of Deeds from Romblon to beat the deadline o What is sent to the Register of Deeds must also be complete 3. Fact that registrant did all that he needed to do entitles him to his registration of less than full ownership 4. There is no order of preference for sources of reconstitution 5. Registration under Section 113 need not even be done in order to establish better rights. Facts and circumstances are necessary.

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