INVOLUNTARY DEALINGS- Adverse Claim

Section 70. Adverse claim. Whoever claims any part or interest in registered
land adverse to the registered owner, arising subsequent to the date of the
original registration, may, if no other provision is made in this Decree for
registering the same, make a statement in writing setting forth fully his alleged
right or interest, and how or under whom acquired, a reference to the number
of the certificate of title of the registered owner, the name of the registered
owner, and a description of the land in which the right or interest is claimed.

The statement shall be signed and sworn to, and shall state the adverse
claimant's residence, and a place at which all notices may be served upon him.
This statement shall be entitled to registration as an adverse claim on the
certificate of title. The adverse claim shall be effective for a period of thirty
days from the date of registration. After the lapse of said period, the
annotation of adverse claim may be canceled upon filing of a verified petition
therefor by the party in interest: Provided, however, that after cancellation, no
second adverse claim based on the same ground shall be registered by the
same claimant.

Before the lapse of thirty days aforesaid, any party in interest may file a
petition in the Court of First Instance where the land is situated for the
cancellation of the adverse claim, and the court shall grant a speedy hearing
upon the question of the validity of such adverse claim, and shall render
judgment as may be just and equitable. If the adverse claim is adjudged to be
invalid, the registration thereof shall be ordered canceled. If, in any case, the
court, after notice and hearing, shall find that the adverse claim thus
registered was frivolous, it may fine the claimant in an amount not less than
one thousand pesos nor more than five thousand pesos, in its discretion.
Before the lapse of thirty days, the claimant may withdraw his adverse claim
by filing with the Register of Deeds a sworn petition to that effect

ADVERSE CLAIM, PURPOSE

> Purpose of annotating the adverse claim on the title of the disputed land is to
apprise third persons that there is a controversy over the ownership of the land and
to preserve and protect the right of the adverse claimant during the pendency of the
controversy

> Notice to third persons that any transaction regarding the disputed land is subject
to the outcome of the dispute
> Such is registered by filing a sworn statement with the RD of the province where
the property is located, setting forth the basis of the claimed right together with other
data pertinent thereto. The registration of an adverse claim is expressly recognized
under Section 70. Where the notice of adverse claim is sufficient in law and drawn
up in accordance with existing requirements, it becomes the ministerial duty of the
RD to register the instrument without unnecessary delay

> While the act of registration is the operative act which conveys or affects the land
insofar as third persons are concerned, the subsequent sale of property covered by
a certificate of title CANNOT PREVAIL OVER AN ADVERSE CLAIM, duly sworn to
and annotated on the certificate of title previous the sale

> Section 70 is divided into two parts—first refers to the petition of the party who
claims any part or interest in the registered land, arising subsequent to the date of
the original registration, for the registration of his adverse claim, which is a ministerial
function of the Register of Deeds absent any defect on the face of the instrument.
The second refers to the petition filed in court by a party in interest for the
cancellation of the adverse claim upon showing the same is
invalid.

REGISTRATION OF ADVERSE CLAIM

> A lease over a parcel of land for a 10-year period, which could not be registered
because the owner’s duplicate of title wasn’t surrendered, could be registered as an
adverse claim and the owner couldn’t be compelled to surrender the owner’s
duplicate of the title to that adverse claim could be annotated thereon

> If the adverse claim turns out to be invalid, the owner could ask for its cancellation
and, if found to be frivolous or vexatious, then costs may be adjudged against the
adverse claimant.

> The claim of a person that she has hereditary rights in the land fraudulently
registered in his sister’s name, because the land belonged to their mother whose
estate is pending settlement in a special proceeding, is registrable as an adverse
claim\

> Where a guardianship proceeding is pending in court, it is proper to annotate on

the title of the land in question the pendency of such a proceeding by means of a
notice of lis pendens for the purpose of alerting anyone who might wish to buy the
land that his purchase may be questioned later on. Since an adverse claim and a
notice of lis pendens have the same purpose, there would be no need of maintaining
the adverse claim. But a notice of levy
cannot prevail over an existing adverse claim inscribed in the certificate of title

> The annotation of an adverse claim is a measure designed to protect the interest
of a person over a piece of real property where the registration of such interest or
right isn’t otherwise provided for by PD1529, and serves as a notice and warning to
third persons dealing with said property that someone is claiming an interest on the
same or a better right than the registered owner thereof

> FOR THE SPECIAL REMEDY OF ADVERSE CLAIM TO BE AVAILED OF, IT

MUST BE SHOWN THAT THERE IS NO OTHER PROVISION IN THE LAW FOR
REGISTRATION OF THE CLAIMANT’S ALLEGED RIGHT IN THE PROPERTY.

> An adverse claim of ownership over a parcel of land registered under the Torrens
system based on prescription and adverse possession cannot be registered as an
adverse claim—no title to registered land in derogation of the title of the registered
owner shall be acquired by prescription or adverse possession. Hence, the
registration of such adverse claim will serve no useful purpose and cannot validly
and legally affect the parcel of land in question.

REQUISITES OF AN ADVERSE CLAIM

1. The 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 riht or interest is claimed
d. The number of the certificate of title

2. The statement must be signed and sworn to before a notary public or other officer
authorized to administer oath

3. The claimant should state his residence or the place to which all notices may be
served upon him

REGISTRATION COURT MAY DETERMINE THE VALIDITY OF ADVERSE CLAIM

> An adverse claim may be cancelled only after the claim is adjudged invalid and
unmeritorious by the court while passing upon a case where the land involved is
subject of the interest or right being secured by the adverse claim.

ADVERSE CLAIM NOT IPSO JURE CANCELLED AFTER 30 DAYS; HEARING

NECESSARY.
> Sajonas v. CA
> Register of Deeds cannot unilaterally cancel the adverse claim. There must be a
court hearing for the purpose. The reason for this is to afford the
adverse claimant an opportunity to be heard, providing a venue where the propriety
of his claimed interest can be established or revoked, all for the purpose of
determining at least the existence of any encumbrance on the title arising from such
adverse claim.

PURCHASER NOT BOUND BY ANY LIEN NOT ENTERED IN THE CERTIFICATE

OF TITLE FORECLOSURE SALE RETROACTS TO REGISTRATION OF
MORTGAGE

> The settled doctrine is that the effects of a foreclosure sale retroact to the date of
registration of the mortgage.

> Hence, if the adverse claim is registered only after the annotation of the mortgage
at the back of the certificate of title, the adverse claim could not effect the rights of
the mortgagee; and the fact that the foreclosure of the mortgage and the consequent
public auction sale have been effected long after the annotation of the adverse claim
is of no moment, because the foreclosure sale retroacts to the date of registration of
the mortgage.