LTD serrano notes 2012

Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

Lecture Notes #1 June 21, 2012 Regallan Doctrine (Jura Regalla) -translated as Royal Right -land ownership emanates from the State How did this doctrine come about: because of the Spanish conquest. King of Spain proclaimed ownership over all lands in the Philippines so that private land titles can only be acquired from the government either by PURCHASE or by GRANT. Forms of Grant by the State: 1. Titulo Royale (Royal Grant) 2. Concession Espesyal (Special Grant) 3. Composisyon Un Estado (Adjustment Title) 4. Titulo de Compra (Title by Purchase) 5. Processory Information Title RD was adapted and enforced by the King of Spain Aspects of the Regallan Doctrine: 1. All lands of the public domain belong to the State 2. Private Land Ownership or Title must emanate from the State by some form of Purchase or Grant 3. State is the source of any asserted right to ownership of land (and charge in the concentration of such patrimony) 4. All lands not otherwise appearing to be clearly within private ownership are presumed to belong to the State Constitutional Basis for the Regallan Doctrine? YES.

1973 Constitution Art14 Sec8 Exceptions to the rule that in order that a person may claim ownership over a parcel of land: *There must be a document showing that there is a government grant or grant by the State 1.

The Regallan Doctrine does not negate native title to lands held in ownership since time in memorial (J. Kapunan, Cruz vs Sec. of Naturall Resources 2000) Basis? Carino vs Insular Government. Reversed the decision of the Philippine Supreme Court, decided by the US SC. Penned by Justice Oliver Wendell Holmes: In carino case, igorot, Matteo Carino, applied for the registration of his name of an ancestral land located in Benguet. The applicant established that he and his ancestors have lived on the land, had cultivated it and had used it as far as they could remember. They also proved that they had all been recognized as owners, the passed by inheritance according to native custom but no document from the Spanish crowd. Government opposed the application for registration invoking the theory of jura regalla, Regallan Doctrine. On appeal, United States SC held that applicant was entitled to native title to their ancestral land. Justice Kapunan: Carino case was decided by the US SC in 1909 at the time when decisions of US were binding as president in our jurisdiction.

1987 Constitution Art12 Sec2 National Economy and Patrimony

SC applied in the Carino doctrine in the 1946 case of Ocho vs Director of Lands:

All lands of the public domain, waters, minerals, coal, petroleum and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.

Any land that should have been in the possession of an occupant and of his predecessors in interest since time in memorial (Native Title)

All lands of the public domain are owned by the State!

Purpose: Such possession would justify the presumption that : 1) the land had never been part of the public domain;

1935 Constitution

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

2) it had been private property even before the Spanish conquest. Cruz vs Natural Resources Invoked the IGPRA 1971 There is a presumption that land had never been part of a public domain 2. Exclude properties/lands owned by the Church Why? King decided that he was not the owner of ecclesiastical property so he excluded the properties of the Roman Catholic Church. Therefore, titles over ecclesiastical properties could not have passed to the US under the treaty of Paris, because these properties, meaning Church properties, do not pertain to the government of Spain. Definition of Terms: 1.

Land –solid part of the surface of the earth. 2. Land Title –generally refers to that upon which ownership of land is based. Specific definition: Evidence of the right of the owner or the extent of his interest and by which states maintains control and as a rule, assert right to exclusive possession and enjoyment of property. Possession vs Ownership NOT THE SAME. One can own something but does not have possession. Example: Lease Contract 3. Deed –written document executed in accordance with the form prescribed by law where a person grants /conveys to another, certain land, tenements or predicaments. Examples: Deed of Absolute Sale

Deed of Donation Deed of Real Estate Mortgage Deed of Assignment 7 Elements of the written law: 1. Grantor 2. Grantee 3. Words of Grant –convey, transfer, assign 4. Description of the property involved since deed refers to contract or agreement must have the elements of contract, OBJECT/SUBJECT MATTER of the contract 5. Signature of the Grantor Why?It is important because it establishes/proves the voluntary act of the grantor in conveying/ transferring the property-CONSENT 6. Attested by at least 2 witnesses 7. Notarial acknowledgement Document to be accepted (PD1529 Sec112): Must be a REGISTRABLE DOCUMENT in a form prescribed by law In other words, must be a public document in order to be registrable Deed vs Land Title Deed – document that grants or conveys the land or a right of a land in favor of another Land Title –evidence of ownership Ex. Certificate of Title 4. Registration –strictest acceptation is the entry made in the registry which records solemnly and permanently the rights of ownership and other real rights (Cheng vs Genato) Classification of Lands: 1. Immovable or Real (Art 415 par1 of the Civil Code) 2. Public Dominion –owned by the State Private Ownership –properties belonging to private persons (Art. 425 of the Civil Code)

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

3. Private Lands –segregated from the general mass by any form of grant by the state which are in the possession of original grantees or their successors in interest Public Lands –lands which have not been segregated from the general mass of the public domain **Only PRIVATE LANDS are registrable under the Torrens System of Land Registration General Classifications under the Constitution: 1. Forest/Timber 2. Mineral Lands 3. Agricultural Lands *only Agricultural lands may be the subject to private ownership 4. National parks (additional) Alienable/Disposable – susceptible of private appropriation/ownership; registrable Inalienable Land of the public domain – lands which are not capable of appropriation/ownership; NOT registrable lands IMPORTANT CLASSIFICATION! Registered –lands registered under the Torrens System of Land Registration Unregistered –land that is not registered under the Torrens System of Land Registration Lands which are public/real properties which are not subject to ownership; NOT registrable Registrable Non-Registrable –cannot be appropriated by private persons 11 Examples covered by Supreme Court Decsions: 1. Those devoted to General Public Use –public roads,streets,plazas,rivers,public parks,canals,streams

2. Those devoted to Public Servicecity town halls/fortresses these are essential to public defense/national safety 3. Public Forest/Timberlands 4. Forest Reserves 5. Mineral Lands 6. Mangrove Swamps 7. Creeks 8. Lakes 9. Military Reservations 10. Water Shed 11. Alluvial deposits when mandated Systems of Land Registration in the Philippines: **It is important because the basis in the issuance of Certificates of Title; gives the owner document showing his ownership over his a parcel of land 1. Torrens System of Land Registration a. PD 1529 i. Land Registration Law Act no.496 ii. Cadastral Act no. 2259 b. Commonwealth Act 141 – public land act basis for registration of land 2. System of Recording for Unregistered Lands a. PD 1529 Sec 113 b. 194 of Revised Administrative Code as amended by Act No. 3344 *Spanish Mortgage Law-Abolished 7 Purposes/Effects of Registration: *important for bar 1. To quiet title to land (Sec.31) a. Legarda vs Prieto b. Act No. 496 -1978 c. Primary and fundamental purpose: To finally settle the title to lands d. When land is once registered to Torrens System of Land Registration (BEST EVIDENCE OF OWNERSHIP), title thereto is settled and unimpeachable after the expiration of 1year e. It is not subject to be bought under another action for the registration f. to put a stop forever on the legality of the title except

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

claims that were duly noted at the time of registration in the certificate for which they arise subsequent thereto 2. To relieve land of unknown liens, burdens or claims whether just or unjust (Sec.44) a. Free from any lien,claims or burdens except those that are duly noted in the certificate and the statutory liens (roads, streets,canals,lateral, real estate taxes) b. Claims or burdens would not affect the registered land if these liens, burdens or claims are noted in the title c. If it does not contain, then you can rely on the title *no note= clean title *must be noted in the certificate of title. If not, will not bind the property 3. To prevent fraudulent claims (Sec.53) a. To prevent concealment *no more fraudulent transactions b. Registration is the specie of notice; a kind of notice because there is a permanent public need c. Purpose of the law: Provide some means of publicity; may be able to search the records; acquire security against transactions d. Purchaser in good faith/innocent purchaser is protected e. No person will later on claim that he is in possession of an earlier document covering the same land 4. To establish priority in rights (Sec.56) a. Determined by date and time of registration (seniority in rights) b. Rights of preference/preferential rights

c.

Documents that are registered create priority in rights because the registration of documents are done in order of reception; entered in a particular book that determines which documents are registered ahead; date and time of registration d. Secure judgments in their favor e. Depends on who registers ahead f. Determined by the DATE AND TIME OF REGISTRATION (sinong nauna sa pila) g. Primus tempore forcio injure -First in time, stronger in right 5. To create indefeasible and imprescriptible title binding on the whole world a. Not capable of being voided b. Indefeasible from the issuance or entry, the title becomes INCONTROVERTIBLE and CONCLUSIVE, that means the title is already INCONTESTIBLE in any court of law, after 1 year period c. Title cannot be defeated by any other document/claim of ownership of any third person d. Best proof of title e. Indefeasible title (Sec.32) f. Floydd Mayweather and Pacman-undefeated but not undefeasible-di puedeng matalo g. Registration also creates imprescriptible title (Sec. 47) h. Imprescriptible-land can no longer be acquired by adverse or acquisitive (when you acquire a right) prescription i. Extintctive prescriptionextinguishes the right 6. To provide a means of publication or notice(constructive notice) a. Info=knowledge b. Open to the public c. Permanent public record of registry of deeds d. Tanada vs Tuvera

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

e.

f. g. h. i.

j.

k. l.

m.

n.

o.

p.

Doctrine: notice and publication in the Official Gazette or newspaper of general circulation in the Philippines To be effective and binding: must be published Purpose: notice to the public Purpose of notice: to inform the public Purpose of information: in order that persons may acquire knowledge; you must have knowledge of the law Once the law is published then it binds everyone because everyone is considered to have knowledge of the law for they are notified Ignorance of the law excuses no one from compliance therewith Doctrine of CONSTRUCTIVE NOTICE –as long as the law is published in the Official Gazette or newspaper of general circulation,then you are charged to the knowledge of the law as published therefore you are notified (same applies to land registration) it is open to the public for verification; you can search the record to determine the status (owner of the property) and condition (liens, claims, burdens) of the property Since there is a public record (book for public properties), you are presumed to be investigated Buy a registered land, you are presumed by law to have examined every document/instrument affecting title of land in the registry of deeds-IRREFUTABLE Mere proof of innocence is not a defense

7. To provide stability to land titles (Sec.93-102) a. Registration of owner can be secured b. Those deprived of registration may be compensated c. Legality of title to the land d. An assurance fund

e. f.

Cannot recover land anymore because it has been transferred to the innocent buyer Source of compensation for persons damaged by registration

Other effects of registration: 1. Registration does not validate an invalid document or cure its legal defect Example: Deed of Donation Donation is called if there is acceptance by the Donee Torts Document 2. Registration merely confirms title but it does not vest title to land a. Not a mode of acquiring ownership (Art. 712 not those provided by law) b. Registrant in good faith who is in good faith who is protected Suppose: registered in the book for Unregistered Land; same property was sold by the registered owner; purchaser in good faith; buyer says issued in the certificate of title -creates priority in rights Would that create priority in right in favor of the creditor? No. the registration was accomplished in the wrong system of land registration. What is the effect according to the Supreme Court: where the law on a registration system require a particular document to be registered, and such registration was published under the wrong system then such registration is legally ineffective and cannot bind the property. Reason?Why the registration under the wrong system does not bind? You want to investigate the records to determine the status and condition Inspecting the book of registration for unregistered lands You are not notified; not correct source of information

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

SC: Principle of Constructive Notice if it the transaction was registered in the book of unregistered land -by inspecting status and condition Lecture Notes #2 June 28, 2012 Article 712 of the Civil Code 5 Modes of Acquiring Land Titles 1. Occupation 2. Intellectual Creation *the only one not applicable to real property 3. Donation/succession 4. In consequence of certain contracts by tradition/delivery 5. Prescription Why is it important? -Registration merely confirms title; does not vest title -You have to prove that youre the owner of the property Recognized Modes 1. Government Grant 2. Acquisitive Prescription 3. Accretion 4. Reclamation 5. Voluntary Transfer 6. Involuntary Alienation 7. Succesion RECOGNIZED MODES: 1. Government Grant Basis of the Grantee in acquiring ownership? REGALIAN DOCTRINE -whenever public land is conflict of private individual then there is a form of grant -there is a form of government grant -there must be a law justifying expressed or implied grant What is the mode? Law: Commonwealth Act No. 141 or as amended by Public Land Act Other prior laws: Homestead Act -Government gives public lands to qualified citizens of the Philippines through land patents(ex. Homestead patent, sales patent, free patent, special patent)

-these patents may be presented to the register of deeds of the basis of certificate of title may be issued to the grantee of the public land -emancipation patent is not the same; issued under PD 27 covering tenant farmers beneficiaries of lands that are devoted to rice and corn (declared the owners of the land that they till-actually owned by private individual transferred to another private individual; under the land reform program under Presidential Marcos) -EP Title (Emancipation Patent) RA 6657 (Comprehensive Agrarian Reform Law) -title issued to the tenant beneficiary of the land 2. Acquisitive Prescription -Acquisition of ownership by adverse possession -person who takes possession for a time prescribed by law acquires title to the land What kind of land is involved? ONLY UNREGISTERED LANDS because if the land is already registered then the title to the land is IMPRESCRIPTIBLE can no longer be acquired by adverse possession (claiming ownership to land)or acquisitive prescription (Art 47 of PD 1529) 3. Accretion -process (Art440) -the property may produce something Incorporated or attached to it Principal- thing that produces something Accessory -that which is produced-fruits -something that is incorporated to or attached to the principal -What is the doctrine or law? Art 440 of the Civil Code: The ownership of property gives the right to accession to everything which is produced thereby, or which is incorporated or attached thereto, either naturally or artificially” Right of the owner/principal: right of accession Accression -production of incorporation or attachment of another thing to the principal Examples: Alluvium Avulsion Formation of Island Change of river course and abandoned river beds Alluvium -there is accretion(process) in addition to the land which is adjoining the banks of the rivers

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

-deposit of soil or other materials What is the consequence? There is an increase in the area of the land and the increased portion is accretion-alluvium Who owns that area? The owner of the land which is attached Under what right? By RIGHT OF ACCESSION Art 440 of the Civil Code Supposing the land is already registered. What about the additional area created by alluvium? Is it considered registered? NO. WHY? Because of the Technical description of the certificate of title. Only the land described in the certificate of title is registered. -Identifies the land that is registered The alluvium (additional area) is not covered by the technical description therefore it is not registered land Remedy of the owner? Apply for registration of the additional area Additional Area can be acquired by another person? YES. Not registered yet by adverse possession/acquisitive prescription 4. Reclamation -method of filling submerged land by deliberate act and reclaiming title thereto -In the Philippines, only the government can assert ownership to reclaimed land -lands reclaimed from the sea belong to the State under Art5 RA 1866 and Regalian Doctrine RA 1899 -municipalities and charter cities were granted by the authority to undertake at their own expense a reclamation project -reclaimed land or area becomes the property of city/municipality that undertook the reclamation project Ex. Cebu-reclaimed area-property of Cebudeveloped and sold to private persons PD1084 Created the public estates authority -PEA power to reclaim land including foreshore and submerged areas to develop,include, acquire, lease and sell all kinds of land. improve,acquire or sell land. -PEA undertook first planned reclamation projects in manila bay -can PEA sell the lands submerged that they will reclaim? CASE: CHAVEZ VS PEA 4issues: 1. What is the statues of the submerged area of manila bay?

As long as it is submerged meaning under the sea, it remains inalienable land of resources of the public domain When can it be subject to private ownership? a. Reclamation-fill the submerged areas b. State must classify the reclaimed land as alienable and disposable land of the public domain If it is not reclaimed, then it cannot be transferred to another party because it is outside the commerce of man and It is still inalienable until the state classifies as alienable and disposable 2. What is the status of foreshore land? How do you classify foreshore lands? Why are they not registrable? Foreshore lands are inalienable lands of the public domain because of Regalian Doctrine and Spanish Law Waters of RA 1866 Foreshore lands-portion of the beach which is wet and dry. low tide-dry ;high tide-covered by the water ALWAYS INALIENABLE. Supposing it was reclaimed. New foreshore land is created-INALIENABLE LAND OF THE PUBLIC DOMAIN 3. Private corpo can no longer acquire lands of pub domain under 1973 and 1987 Consti 4. Authority over lands used by the armed forces of the Philippines no longer needed for public service; these were converted to patrimonial property of the state ex. Fort bonifacio-devoted to public service but it was declared no longer needed for public service then subsequently no longer needed then it was converted to patrimonial-subject to private ownership Ex. Subic naval base . 5. Voluntary Transfer -common mode method -with consent and voluntary cooperation of the owner is required and necessary How is this done? Through contracts and agreements Deed of absolute sale-evidence of absolute sale; through voluntary transfer Deed of donation-

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Shauna Herrera and Monica Delos Reyes LAND TITLES AND DEEDS-J. SERRANO 2012

Registered land-transaction must be registered in order to bind and effect as well as third persons 6. Involuntary Alienation -must not require the voluntary cooperation of the owner -may be against his will Examples: Expropriation Eschief/Forfeiture proceedings Grantee homestead patents Seizure of property for past delinquency -Purpose: to have property sold at property auction sale-involuntary alienation of the property;owner cannot do anything about it; can sell for nonpayment for non real estate tax Government enforced Final executor judgement: sale satisfied out of the proceeds of the sale; execution sale;involuntary alienation 7. Succession -acquisition of land by virtue of hereditary succession to the estate of the deceased owner -known as: title by descent -succession takes place upon death of the descendent-person who leaves property or inheretant or heirs or devisee -by virtue of testamentary succession -intestate-no last will and testament Outline of general procedure in an ordinary land registration case 1. Survey of land by the bureau of lands or a duly licensed private surveyor 2. Filling of application for registration by the applicant 3. Setting the date for the initial hearing of the application by the Court 4. Transmittal of the application and the date of initial hearing together with all documents or other evidences attached thereto by the Clerk of Court to the Land Registration Commission (now National Land Titles and Deeds Registration Administration) 5. Publication of a notice of the filing of the application and date and place of hearing once in the Official Gazette and once in newspaper of general circulation in the Philippines 6. Service of notice upon contiguous owners, occupants, and those known to have interest in the property by the Sheriff

7. Filing of answer or opposition to the application by any person whether named in notice or not 8. Hearing of the case by the Court 9. Promulgation of judgment by the Court 10. Issuance of the decree by the Court declaring the decision final; and instructing the National Land Titles Deeds Registration Administrator to issue a decree of confirmation and registration 11. Entry of the decree of registration in the National Land Titles and Deeds Registration Administration 12. Sending of copy of the decree of registration to the corresponding Register of Deeds (Registrar of ;and Titles and Deeds) 13. Transcription of the decree of registration in the registration book and the issuance of the owner’s duplicate original certificate of title of the applicant by the Registrar of Land Titles and Deeds, upon payment of the prescribed fees.

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