XII.

LAND TITLES AND DEEDS

 Procedure - 13 steps in ordinary land registration proceedings (P.D. 1529 Property Registration
Decree)

1. Survey of the land by the Land Management Bureau or a duly licensed private surveyor;

2. Filing of application for registration by the applicant at the RTC if the province, city or
municipality where the property is situated;

3. Setting of date for initial hearing by the court which shall not be earlier than 45 days nor later
than 90 days from the date of the order;

4. Transmittal of application and date of initial hearing together with all documents or other
evidence attached thereto by the Clerk of Court to the Land Registration Authority;

5. Publication of the notice of filing of application and the date and place of hearing once in the
Official Gazette and once in a 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 the notice
or not;

8. Hearing of the case by the court;

9. Promulgation of judgment by the court;

10. Issuance of decree or order by the court declaring the decision final and instructing the Land
Registration Authority to issue a Decree of Confirmation and Registration;

11. Entry of decree in the Land Registration Authority;

12. Sending of copy of the Decree to the corresponding Register of Deeds; and

13. Transcription of the Decree in the registration book and issuance of the owner’s duplicate
Original Certificate of Title of the applicant by the Register of Deeds upon payment of the
prescribed fees.

 Adverse Claim

- An adverse claim is a notice to third persons that someone is claiming an interest on the
property or has a better right than the registered owner thereof, and that any transaction regarding
the disputed land is subject to the outcome of the dispute (Sajonas v. CA, G.R. No. 102377, July
5,1996).

Claim or interest is adverse when:

1. Claimant’s right or interest in registered land is adverse to the registered owner;

2. Such right arose subsequent to the date of original registration; and

 3. No other provision is made in the Decree for the registration of such right or claim (P.D. 1529,
Sec. 7, Par. 1).

Formal Requisites of an Adverse Claim for Purposes of Registration: (P.D. 1529, Sec. 70)

1. Adverse claimant must state the following in writing:

a) His alleged right or interest;

b) How and under whom such alleged right or interest is acquired;

c) The description of the land in which the right or interest is claimed; and

d) The certificate of title number.

2. Such statement must be signed and sworn to before a Notary public; and

3. Claimant shall state his Residence or place to which all notices may be served upon him.

Non-compliance with the formal requisites renders such adverse claim non-registrable and
ineffective.

 Notice of Lis Pendens

- Notice of lis pendens is intended to constructively advise or warn all people who deal with the
property that they so deal with it at their own risk. Whatever rights they may acquire in the property
in any voluntary transaction are subject to the results of the action, and may well be inferior and
subordinate to those which may be finally determined and laid down therein (Heirs of Maria
Marasigan v. IAC, G.R. No. L-69303, July 23, 1987).

 Mirror Image Doctrine

- All persons dealing with property covered by a Torrens certificate of title are not required to go
beyond what appears on the face of the title. When there is nothing on the Certificate of Title
indicating any cloud or vice in the ownership of the property, or any encumbrance thereon, the
purchaser is not required to explore further than what the Torrens Title upon its face indicates in
quest for any hidden defect or inchoate right that may subsequently defeat his right thereto (Centeno
v. CA, G.R. No. L-40105, November 11, 1985; Sigaya v. Mayuga, G.R. No. 143254, August 18, 2005).

 Rights of buyer in good faith and for value

- A buyer in good faith and for value (innocent purchaser for value) has a better right than the
owner over a disputed land; as stated in Sec. 53, Par. 3 of P.D. 1529, “Where registration is procured
by fraud, the owner may pursue all his legal and equitable remedies against the parties to such fraud
without prejudice however, to the rights of any innocent holder for value of a certificate of title”.

- An innocent purchaser for value is one who buys the property of another without notice that
some other person has a right to or interest in that same property, and who pays a full and fair price
at the time of the purchase and before receiving any notice of another person’s claim. (Sps. Villamil v.
Villarosa, G.R. No. 177187, April 7, 2009).

A. Torrens System; general principles

- A system of registration of transaction with interest in land whose declared object is,
under government authority, to establish and certify to the ownership of an absolute and
indefeasible title to realty, and to simplify its transfer (AGCAOILI, Property Registration Decree
and Related Laws (Land Title and Deeds), (2011), p.8).

- The Torrens System was amended and superseded by P.D. 1529, which took effect on
June 11, 1978.

-Under the Torrens system, registration only gives validity to the transfer or creates a lien
upon the land. It merely confirms, but does not confer, ownership (Lu v. Manipon, G.R. No.
147072, May 7, 2002).

- There are two types of Torrens Certificate of Title:

1. Original Certificate of Title (OCT)

2. Transfer Certificate of Title (TCT)

B. Original Registration

- As a general rule, proceedings for land registration are under the exclusive jurisdiction of
the Regional Trial Court of the province, city or municipality where the property is situated. (Sec.
2, P.D. 1529)

EXCEPT: (As stated under B.P. 129 Sec. 34) Delegated jurisdiction to the MTC, MeTC and
MCTC by the SC in cadastral and land registration cases if:

a) There is no controvery over the land; or

b) Its value is less than P100,000.

1. Ordinary Registration

a) As stated under Sec. 14 of P.D. 1529, the following may apply for registration of title
to land:

1. Those who, by themselves or through their predecessors-in-interest, have

been in Open, Continuous, Exclusive and Notorious possession and occupation of
alienable and disposable lands of the public domain under a bona fide claim of
ownership since June 12, 1945, or earlier;

2. Those who have acquired ownership of private lands by Prescription under

the provisions of existing laws;
 3. Those who have acquired ownership of private lands or abandoned river beds
by right of Accession or accretion; and

4. Those who have acquired ownership of land in any other manner provided for
by law.

b) As stated under Sec. 31 of P.D. 1529, “Decree of Registration. Every decree of

registration issued by the Commissioner shall bear the date, hour and minute of its entry,
and shall be signed by him. It shall state whether the owner is married or unmarried, and if
married, the name of the husband or wife: Provided, however, that if the land adjudicated
by the court is conjugal property, the decree shall be issued in the name of both spouses. If
the owner is under disability, it shall state the nature of disability, and if a minor, his age. It
shall contain a description of the land as finally determined by the court, and shall set forth
the estate of the owner, and also, in such manner as to show their relative priorities, all
particular estates, mortgages, easements, liens, attachments, and other encumbrances,
including rights of tenant-farmers, if any, to which the land or owner's estate is subject, as
well as any other matters properly to be determined in pursuance of this Decree.

The decree of registration shall bind the land and quiet title thereto, subject only to such
exceptions or liens as may be provided by law. It shall be conclusive upon and against all
persons, including the National Government and all branches thereof, whether mentioned
by name in the application or notice, the same being included in the general description "To
all whom it may concern".”

c) As stated under Sec. 32 of P.D. 1529, “Review of decree of registration; Innocent

purchaser for value. The decree of registration shall not be reopened or revised by reason
of absence, minority, or other disability of any person adversely affected thereby, nor by
any proceeding in any court for reversing judgments, subject, however, to the right of any
person, including the government and the branches thereof, deprived of land or of any
estate or interest therein by such adjudication or confirmation of title obtained by actual
fraud, to file in the proper Court of First Instance a petition for reopening and review of
the decree of registration not later than one year from and after the date of the entry of
such decree of registration, but in no case shall such petition be entertained by the court
where an innocent purchaser for value has acquired the land or an interest therein, whose
rights may be prejudiced. Whenever the phrase "innocent purchaser for value" or an
equivalent phrase occurs in this Decree, it shall be deemed to include an innocent lessee,
mortgagee, or other encumbrancer for value.

Upon the expiration of said period of one year, the decree of registration and the
certificate of title issued shall become incontrovertible. Any person aggrieved by such
decree of registration in any case may pursue his remedy by action for damages against the
applicant or any other persons responsible for the fraud.”

C. Certificate of Title

It is the true copy of the decree of registration or the transcription thereof and, similar to the decree,
shall also be signed by the LRA Administrator.
Evidence of Title

What appears on the face of the title is controlling on the questions of ownership since the certificate
of title is an ABSOLUTE and INDEFEASIBLE EVIDENCE OF OWNERSHIP of the property in favor of the
person whose name appears therein.

Registration does not vest title. It is merely evidence of such title over a particular property. A torrens
certificate is the best evidence of ownership over registered land.

The certificate of title does not establish the time of the acquisition of the property. It only confirms a
preexisting title.

Attributes of a Certificate of Title

1. Free from liens and encumbrances

2. Incontrovertible and indefeasible
3. Registered land is not subject to Prescription
4. Not subject to Collateral attack
5. It covers the buildings and improvements of the land

D. Subsequent Registration

It refers to any transaction affecting an originally registered land an which, if in order, is registered in
the office of the Register of Deeds concerned.

Registration as Notice (Constructive v. Actual)

The act of registration creates constructive notice to the whole world and binds third persons. By
constructive notice, it is presumed that the purchaser has examined every instrument of record
affecting the title. Such presumption is irrefutable and cannot be overcome by proof of innocence or
good faith.

Actual notice, however, is equivalent to registration. Where the party has knowledge of a prior
existing interest which is unregistered at the time he acquired a right to the same land, hid knowledge
that prior unregistered interest has the effect of registration as to such party.

1. Voluntary dealings
It refers to deeds, instruments or documents which are results of the free and voluntary
act of the parties thereto.

Kinds
1. Sale 5. Extra-judicial settlement
2. Real property Mortgage 6. Free patent/Homestead
3. Lease 7. Powers of attorney
4. Pacto de retro sale 8. Trust
 Requirements for registration:
1. The Voluntary instruments shall be in a public instrument executed in
accordance with law.
2. Presentation of owner’s duplicate certificate.
3. Full payment of the required registration fees and the requisite documentary
stamps.
4. Evidence of full payment of real estate tax as may be due.
5. Inclusion of one extra copy of any document of transfer or alienation of real
property, to be furnished the city or provincial assessor.

Double Sale – The ownership of the land passes to the vendee who first recorded it in the
register of Deeds. Should there be no inscription, the ownership shall pertain to the first
possessor in good faith and in the absence thereof, to the one who, in good faith, presents
the oldest title.

Innocent Purchaser for Value – One who buys the property of another without notice that
some other person has a right to or interest in that same property, and who pays a full and
fair price. At the time of the purchase and before receiving any notice of another person’s
claim.

Where registration is procured by fraud, the owner may pursue all his legal and
equitable remedies against the parties to such fraud without prejudice, however, to the
rights of any innocent holder for value of a certificate of title.

2. Involuntary dealings
It refers to such writ, order or process issued by a court of record affecting registered
land which by law should be registered to be effective, and also to such instruments
which are not the willful acts of the registered owner and which may have been
executed even without his knowledge or against his consent.

Kinds
1. Attachment
2. Mandamus
3. Sale on execution of judgment or sale for taxes
4. Adverse claims
5. Notice of lis pendens
6. Expropriation
7. Forfeiture and Auction sale on foreclosure of mortgage

a. Adverse Claim
It is a notice to third persons that someone is claiming an interest on the property
or has a better right than the registered owner thereof, and that any transaction
regarding the disputed land is subject to the outcome of the dispute.

Elements:
1. Claimant’s right is adverse to the registered owner.
2. Such right arose subsequent to the date of original registration.
3. No other provision is made in the Decree for the registration of such right or
claim.

Formal Requirements for registration of and adverse claim:

 1. The claimant must state in writing a description of his claim over the property:
right or interest, how such right was acquired, land covered by such right,
certificate of title number
2. The statement must be signed and sworn to before a Notary public.
3. He must state his residence or place which all notices may be served upon him.

No second adverse claim based on the same ground shall be registered by the same
claimant.

b. Notice of Lis Pendens

It is a notice intended to constructively advise or warn all people who deal with the
property that they so deal with it at their own risk.
Whatever may be the rights they may acquire in the property in any voluntary
transaction are subject to the results of the action and may well be inferior and
subordinate to those which may be finally determined and laid down therein.

Transferee pendent lite – he cannot invoke the rights of a purchaser in good faith
and cannot acquire better rights than those of his predecessor-in-interest.

Cases where lis pendens is appropriate:

1. Action to recover possession of real property
2. Action to Quiet title thereto
3. Action to remove Clouds upon the title
4. Any proceeding directly affecting the title to land or use or occupation thereof
or building thereon
5. Action for Partition

Cancellation of Notice of Lis pendens

Rule: cannot be cancelled while the action is pending.

Exceptions:

1. Upon showing that the notice is for the purpose of molesting the adverse party.
2. Evidence presented by plaintiff does not bear out the main allegations of the
complaint.
3. Upon showing that it is not necessary to protect the right of the party who
caused the registration thereof.
4. Continuance of the trial are unnecessarily delaying the determination of the
case to the prejudice of the defendant.
5. Upon verified petition of the party who caused the registration thereof.
6. Deemed cancelled after final judgment in favor of the defendant.
E. Assurance fund

Upon the entry of a certificate of title in the name of the registered owner, and also upon the original
registration of the certificate of title of a building or other improvements on land covered by said
certificate, as well as upon the entry of a certificate pursuant to any subsequent transfer of registered
land, there shall be paid to the register of deeds one-fourth of one per cent of the assessed value of
the real estate on the basis of the last assessment for taxation purposes, as contribution to the
assurance fund

1. Action of compensation from funds

Requisites:
a. That the person sustains loss or damage or is deprived of any estate or interest in land
b. On account of bringing of land under the operation of the torrens system arising after
the original registration
c. Through fraud, error, omission, mistake, or misdescription in a certificate of title or entry
or memorandum in the registration
d. Without negligence on his part
e. And is barred or precluded from bringing an action for the recovery of such land or
estate or interest therein
2. Limitation of action
Prescriptive period – any action for compensation against the assurance fund shall be
instituted within a period of six years from the time the right to bring such action first
occurred.
The right of action shall survive to the legal representative of the person sustaining loss or
damage, unless barred in his lifetime
If at the time such right of action first accrued, the person entitled to bring was a minor or
insane or imprisoned, or otherwise under legal disability, such person or anyone claiming
from, by or under him may bring the proper action at any time within 2 years after such
disability has been removed, notwithstanding the expiration of the original period of six
years first above provided.