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Caraan v. CA, G.R. No. 140752. Nov. 11, 2005 in cases of hereditary succession.

Where the common areas


in a condominium project are held by a corporation, no
FACTS: transfer or conveyance of a unit shall be valid if the
concomitant transfer of the appurtenant membership or
private respondents are the registered owners of the real stockholding in the corporation will cause the alien interest in
property loc in Q.C. they discovered that the land was being such corporation to exceed the limits imposed by existing
occupied by petitioner who had built his residential house laws.
and such occupancy by petitioner was effected through
fraud, strategy and stealth without private respondents
knowledge and consent. demands to vacate, both oral and
written, were made upon petitioner but to no avail.
Respondents filed for accion reivendicaturia against the
petioners before the RTC. Petitioner contends he had
acquired the land in question through extra-ordinary
prescription of thirty years of continuous, public, open and
uninterrupted possession and that he has a better right since
Executive Order No. 292 [BOOK IV/Title III/Chapter 9-
respondents TCT was derived from a OCT that was
Land Registration Authority]
declared null and void by the RTC.
CHAPTER 9
ISSUE:
Land Registration Authority
WON respondents contention is correct.
SECTION 28. The Land Registration Authority.The Land
HELD:
Registration Authority, hereinafter referred to as the Authority
a certificate of title serves as evidence of an indefeasible shall continue to exercise its powers and functions under
title to the property in favor of the person whose name existing law on the Land Titles and Deeds Registration
appears therein. Private respondents having presented TCT, Authority and those which may hereafter be provided by law.
they have thus proven their allegation of ownership over the
SECTION 29. Organizational Structure.The Authority shall
subject property. Section 48, Presidential Decree No. 1529
be headed by an Administrator who shall be assisted by two
(P.D. No. 1529), provides that a certificate of title shall
(2) Deputy Administrators, all of whom shall be appointed by
not be subject to collateral attack. It cannot be altered,
the President upon the recommendation of the Secretary.
modified, or cancelled except in a direct proceeding in
accordance with law. the Court defined a collateral SECTION 30. Reorganization of Registry Offices in the
attack on the title in this wise: When is an action an National Capital Region.The Registries of Deeds in the
attack on a title? It is when the object of the action or National Capital Region is hereby reorganized as follows:
proceeding is to nullify the title, and thus challenge the
judgment pursuant to which the title was decreed. The (1) The Registries of Deeds in the cities of Manila, Quezon,
attack is direct when the object of an action or proceeding is Pasay and Caloocan shall be maintained;
to annul or set aside such judgment, or enjoin its
enforcement. (2) There is hereby created Registries of Deeds in the
Municipalities of Navotas, Malabon, Valenzuela,
On the other hand, the attack is indirect or collateral when, in Mandaluyong, San Juan, Marikina, Las Pias and
an action to obtain a different relief, an attack on the Paraaque with jurisdiction over their respective
judgment is nevertheless made as an incident thereof. In an municipalities;
action for recovery of possession, the defense of the
possessor that the plaintiffs certificate of title is void is a (3) The Registry of Deeds of Pasig shall be maintained with
collateral attack which is prohibited under PD 1529. the jurisdiction over the Municipalities of Pasig, Taguig and
defense of prescription of Caraan cannot stand against the Pateros; and
Certificate of Title of Cosme because under section 47, PD
1529, no title to registered land in derogation of the title of (4) The Registry of Deeds of Makati shall have jurisdiction
the registered owner shall be acquired by prescription or over the municipalities of Makati and Muntinlupa.
adverse possession.
Executive Order No. 292
ADMINISTRATIVE CODE OF 1987

Sec. 5. Any transfer or conveyance of a unit or an apartment,


office or store or other space therein, shall include the
transfer or conveyance of the undivided interests in the
common areas or, in a proper case, the membership or
shareholdings in the condominium
corporation: Provided, however, That where the common
areas in the condominium project are owned by the owners
of separate units as co-owners thereof, no condominium unit
therein shall be conveyed or transferred to persons other
than Filipino citizens, or corporations at least sixty percent of
the capital stock of which belong to Filipino citizens, except

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