Basilica M. Taca vs.

The Registrar of Deeds of Quezon City

Consulta No. 4315
March 27, 2009

Facts:
Sometime in February 2002, Arturo, John, Antonio, and Maria Theresa, all surnamed
Taca, executed a Devise of Usufruct in favor of the petitioner, their grandmother as long
as she lives. The said Devise Usufruct, however, was not registered. On May 26, 2006,
petitioner executed a Notice of Adverse Claim, claiming that she is the Usufructuary of
the land belonging to her grandchildren who are the lawful owners having a claim
adverse to the purported registered owner Tita Gutang. When the subject Notice of
Adverse Claim was presented for registration, respondent denied the registration
thereof on the following grounds, to wit:
1. The contract of usufruct, basis of the adverse claim is binding only between
contracting parties as the same was not annotated on the previous title.
2. There is no privity between the adverse claimant and the new registered
owner.
Issue:
Whether or not the Notice of Affidavit of Adverse Claim on the unregistered Devise of
Usufruct executed by the former registered owners may be registered on the title of the
present owner.

Held:
We rule in the negative. Petitioner anchored her adverse claim on her usufructuary
rights allegedly granted to her by the former registered owners of the property per the
Devise of Usufruct. Howerver, it is worthy to note that the said Devise of Usufruct
executed in her favor was not annotated in the certificate of title of the grantors thereof.
It is explicit in Section 51 of P.D 1529 that the act of registration shall be the operative
act to convey or affect the land insofar as third persons are concerned. Corollary, in
Section 44 of the same law, it is provided that every registered owner receiving a
certificate of title in pursuance of a decree of registration and every subsequent
purchaser of registered land taking a certificate of title for value and in good faith shall
hold the same free from all encumbrances except those noted in said certificate. Thus,
the said Devise of Usufruct cannot be a valid source of a right or claim adverse to that
of the registered owner of the property.