DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

CHAPTER III

TITLE SEARCH

INTRODUCTION

“When there is something in the certificate of title to indicate any cloud or vice in the
ownership of the property or any encumbrance thereon, the purchaser is required to explore
further than what the Torrens title upon its face indicates in quest for any hidden defect or
inchoate right which may subsequently defeat his right thereto.” (Voluntad vs. Dizon, G. R.
No. 132294, August 26, 1999, 313 SCRA 209)

Further, no property line should ever be positioned without a research on the property to be
acquired and adjacent property; deed or title research must be performed. (Ibid)

PURPOSE

This chapter establishes the minimum standards for administering title search when acquiring
real property and property rights for right-of-way.

1) METHODS ON TITLE SEARCH

a) TITLE EXAMINATION.

i) Title examination is necessary to ensure the quality of title;

ii) Negotiations and field reviews often bring to light matters affecting title to real
property not reflected in the public records. Unrecorded conveyances, leases,
easements, etc. can be discovered only through discussions with property owners
and by physical inspection of the premises. The fact that these matters do not
appear in the public records does not lessen their impact on title.

iii) Any information discovered during negotiations or field reviews that may affect
the title to the parcel being acquired must be provided to the concerned District
Engineer/Regional Director/IROW-PMO Director. This information will be provided
in writing and will include copies of all pertinent documents, if available.

b) TITLE EVIDENCE. Title evidence in the form of a title search, title insurance or title
opinion will be obtained for all parcels from which a real property interest will be
acquired.

c) TITLE SEARCH REPORTS. Title search reports will include copies of all documents
that create, or purport to create, an interest, lien or encumbrance in the parcel. The
caption page of the title report will contain the following: (Refer to Form 2 on page
D4).

i) The full name and address of the current record titleholder;

ii) The legal description of the parcel under search;

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 DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

iii) A tax summary including tax identification number; the name and address of the
taxpayer, status of the current tax year, any delinquent taxes, a list of any
outstanding tax certificates showing for each the certificate number and tax year
and the status of homestead exemption;

iv) The names and recording data of any recorded lots affecting the subject parcel;

v) A description of the conveyance to the current record titleholder and all

conveyances that occurred in the five (5) years immediately preceding the
completion date of the title search shall be included in the title search. Each
description must include the names of both the grantor(s) and grantee(s) with the
date of execution; recording date, book, page, and the amount of the
documentary stamps;

vi) The period of time covered in the search and the certification date of the search;
and

vii) Typed name and signature of the title researcher.

d) ADDITIONAL TITLE SEARCH. The title search shall include all unsatisfied liens
affecting the property under search including but not limited to:

i) Construction Liens including Claim of Lien, or Contest of Lien;

ii) Certified copies of judgment liens based on a name search of every record owner
of the subject property for their respective period of ownership within the 20
years preceding the certification date of the search;

iii) Mortgages and assignments of mortgages;

iv) Tax liens;

v) State tax liens and warrants for collection of taxes;

e) ADDITIONAL TITLE EVIDENCE. The title search shall contain any additional title
evidence affecting the property under search including but not limited to:

i) Possessory interest such as easements, leases and assignments of leases; Sec 64.
Lease of registered land shall be registered in the manner provided in section fifty
two of this Act, in lieu of recording. A lessee’s duplicate certificate may be issued
to the lessee upon his request, subject to the provisions herein before made in
regard to a mortgagee’s duplicate certificate, so far as the same are applicable.

ii) Lis Pendens indicating pending litigation. Notice of Lis Pendens is an

announcement to the whole world that a particular real property is in litigation,
serving as a warning that one who acquires an interest over said property does so
at his own risk, or that he gambles on the result of the litigation over said
property (Tanchoco, et al. vs. Hon. Aquino, et al., G.R. 30670, September 15, 154
SCRA) And one who deals with property subject of a notice of lis pendens cannot
invoke the right of a purchaser in good faith; neither can he have acquired better
rights than those of his predecessor in interest (Constantino v. Espiritu, 45 SCRA
557 [1972], cited in Tanchoco vs. Hon Aquino, supra.) Narciso M. Aguilar Land
Titles and Deeds (Jurisprudential Trends in Land Registration and Related
Actions),First Edition, 2005, Central Book Supply, Inc.)

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 DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

iii) Military Reserve Area

iv) Environmentally Protected Area

v) Ancestral Domains

vi) Reclaimed Areas

vii) Quiet title or partition suits affecting the property under search; Pending suits,
judgments, decrees and partition Sec 79 N action to recover possession of real
estate, or to quiet the title thereto, or to remove clouds upon the title thereof, or
for partition or other proceedings of any kind in court affecting the title to real
estate or the use and occupation thereof or the building thereon, and no
judgment or decree and no proceeding to vacate or reverse any judgment or
decree, shall have any effect upon registered land as against persons other than
the parties thereto, unless a memorandum stating the institution of such action or
proceeding and the court wherein the same is pending; and the date of the
institution thereof, containing also a reference to the number of the certificate of
title of the land affected and the volume and page of the registration book where
it is entered, shall be filed and registered. This section shall not apply to
attachments, levies of execution, or to proceedings for the probate of wills, or for
administration of the estates of deceased persons in the Court of First Instance:
Provided, however, that in case notice of the pendency of the action has been
duly registered, it shall be sufficient to register the judgment or decree in such
action within sixty days after the rendition thereof.

viii) Any contiguous lands owned by the record title holder and lying adjacent to the
parcel under search;

ix) Any suggestion of bankruptcy affecting the record title holder; Section 86 RA
496, The land Registration Act Whenever proceedings in bankruptcy or insolvency,
or analogous proceedings are instituted against a debtor who is an owner of
registered land, it shall be the duty of the officer serving the notice of the
institution of such proceedings on the debtor to file a copy thereof in the registry
of deeds for the province wherein land of the debtor lies. The assignee or trustee
appointed by the court having jurisdiction thereof in such proceedings shall be
entitled to the entry of a new certificate or registered land of the debtor upon
presenting and filing a certified true copy of the order appointing him such
assignee or trustee, with the debtor’s duplicate certificate of title; the new
certificate shall state that it is entered to him as assignee or trustee in insolvency
or bankruptcy or other proceedings, as the case may be.

x) Public rights of way on or adjacent to the subject parcel other than state owned
rights of way. Executive Order No. 113;

xi) Any document creating or affecting a fiduciary or agency relationship, such as

guardianships, power of attorney, or trusts;

(1) Guardianship- The relatives of the minors should petition the proper court
having competent jurisdiction for the appointment of a guardian for said
minors and a letter of administration is issued to said guardian then the
guardian may petition the court for the authority to dispose the property of
his ward in favor of the Republic of the Philippines for public use. If this
petition is granted by the court, an order will be issued authorizing the
guardian or administrators to dispose of that portion of the property of the
minors needed by the government. In this case, the copies of both the letter
of administration and the order of the court authorizing the sale of a portion of
the property being administered by the administrator in behalf of the minors

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 DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

should be attached to the deed executed by them and the corresponding

official representing the Republic.

(2) Power of Attorney Section 108 RA 496, The Land Registration Act Any person
may by power of attorney procure land to be registered and convey or
otherwise deal with registered land, but the letters of attorney shall be
acknowledged before a notary public or judge or clerk of a court of record
attested by at least one witness and shall be filed with the clerk or register of
deeds of the province where the land lies, and registered. Any instrument
revoking such letters shall be acknowledged, attested, and registered in like
manner.

(3) Trusts – Sec 67. When a new trustee of registered land is appointed by a
court of competent jurisdiction, a new certificate shall be entered to him upon
presentation to the register of deed of a certified copy of the decree and the
surrender and cancellation of the supplicate certificate. Sec 68 Whoever
claims an interest in registered land by reason of any implied or constructive
trust shall file for registration a statement thereof with the register of deeds.
The statement shall contain a description of the land, and a reference to the
number of the certificate of title and the volume and page on the registration
book where it is entered. Such claim shall not affect the title of a purchaser
for value and in good faith before its registration.

xii) Dissolution of Marriage including the Final Judgment, Property Settlement

Agreement, or any order of the court that may affect title to the parcel;

xiii) Death Certificates, if applicable: Sec 94 When the will of a deceased owner of
registered land, or any estate or interest therein, empowers the executor to sell,
convey, encumber, charge, or otherwise deal with the land, it shall not be
necessary for such executor to be registered as the owner, but a certified copy
of the will and letters testamentary being filed as provided in this Act, such
executor may sell, convey, encumber, charge, or otherwise deal with the land
pursuant to the power in like manner as if he were the registered owner subject
to the like conditions as to the trust, limitations and conditions expressed in the
will as in case of trusts, limitations, and conditions expressed in a deed.

xiv) Any applicable probate proceedings including the will and any codicils, the
Petition for Administration, Letters of Administration, inventory if the subject
property is included, Notice to Creditors with the proof of publication, any
outstanding claims by creditors, receipt for federal and state estate taxes or the
non-taxable certificate, and any Order of Distribution of the subject property;

xv) Declaration of Structure and name and address of structure;

xvi) Comments concerning the title researcher's personal knowledge of matters not
of record affecting the parcel under search;

xvii) Legible copies of all documents reported and copies of all instruments
referenced except for documents evidencing liens that have been satisfied or a
transcript if legible copies are not available. Full size copies of all maps and lots
must be included, and

2) UPDATING OF TITLE SEARCH

Title search update reports will reflect only those matters as described in Section that arise
subsequent to the last search or update. The update report will clearly indicate the beginning
and ending search dates. If there have been no changes since the last search, the update
report will clearly state that fact. The typed name and signature of the title researcher will be
included.

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 DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

3) OPINION OF TITLE

The District Office may use an attorney's title opinion if an attorney with experience in the
field of real estate titles is available to render such an opinion. This may be provided by a
Department attorney or outside counsel.

4) FEE TITLE /DEED OF ABSOLUTE SALE

The Department will seek to acquire fee title to all lands on which a road or permanent
structure or improvement is to be placed and maintained. Parcels acquired for mitigation or
exchange should also be acquired in fee. Land includes airspace, surface or subterranean
areas that may be acquired independently. Acquisition of fee title to all parcels will be by
Deed of Absolute Sale except in the following situations:

a) Special Warranty Deed: When a grantor refuses to execute a Deed of Absolute Sale
and indicates that a Special Warranty Deed or Donation. Care must be taken to
ensure the title subject to donation is free from liens and encumbrances.

b) Personal Representative and Guardian Deeds: When parcels are to be conveyed by

personal representatives or guardians, special deeds are required. Care must be taken
to ensure that the personal representative or guardian has been properly appointed
and has been empowered to convey before preparing the deed.

c) Bargain and Sale Deeds: When parcels are to be acquired from other state agencies
or governmental subdivisions, or when a grantor is donating a parcel and does not
wish to warrant title, the Bargain and Sale Deed will be used. If this type of deed is
used in any circumstance other than those stated, the said government agency must

formally declare that the property of public dominion is no longer needed for public
use or public service before the same could be classified as patrimonial property of
State. Art. 422 of Civil Code of 1950;

d) No Competent Grantor: When a parcel is encountered for which no competent grantor

can be identified from the record title, no deed can be provided. The IROW Committee
of Central/Regional /District shall forward a memo to the Secretary through the IROW
-PMO explaining the circumstances of the parcel involved, together with an action plan
to correct the defects. A legal description of the taking and copies of the title
research will be attached. However, if the Grantor is deceased an extra-judicial
settlement shall be executed by the living heirs;

e) Condemnation: When parcels are acquired through condemnation, no deeds are

required. Condemnation/Expropriation shall be subject to the Rule 67 of the Rules of
Court.

f) A Quitclaim Deed as a Conveyance. A Quitclaim instrument is required to be executed

by owners of lands acquired under the Public Land Law because of the reservation
made in the issuance of patents or titles thereto. In other words, even if the title or
free patent describes the whole area as the case may be, of that area described is not
absolutely owned by him, because it is reserved by the government for public use.
Hence, if the government should exercise its right to use the area reserved by it for
public use, the owners should be required to execute a quit claim over such area
reserved and actually taken by the government for public use. This mode can be
availed of not only in cases where the lots acquired under the Public Land Law is still
covered by Free Patents but even after the issuance of Certificate of Title or Transfer
Certificates of Title because of a series of transactions involving transfer of ownership
from one person to another. The quit claim instrument executed by a private property

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 DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
Manila, Philippines

Simplified Guidelines for Validation and Evaluation of IROW Claims

owner, who acquired his lot under the Public Land Law, should be registered with the
Register of Deeds for annotation at the back of the title or issuance of a separate title
in favor of the Republic of the Philippines.

g) Perpetual Easement. A Perpetual Easement may be used when a permanent right of

use is needed, usually when permanent improvements are to be constructed and
maintained on parcels for which acquisition of fee title is impractical, for example,
when green area or setback requirements will cause excess severance damages if fee
title is taken or an underground structure is to be installed which will not preclude the
owner's use of the parcel. The decision to use a Perpetual Easement should be made
by the District Engineer in cooperation with the Regional Director.

h) Temporary Easement. A Temporary Easement will be used when it is necessary to

temporarily occupy a parcel for a specific purpose. No improvement which is a
permanent part of the transportation facility or which requires maintenance by the
Department beyond the term of the easement will be constructed on a temporary
easement.

5) RECORDING

It is the responsibility of the District Engineer/Regional Director/IROW-PMO Director to ensure

that all documents affecting the marketability of the Department's title are delivered to the
National Archive and recorded in the Register of Deed of the municipality where the land is
situated. This may include instruments that are ancillary to the documents prepared by or on
behalf of the Department, e.g., death certificates, affidavits or mortgage and lien
satisfactions. Refer to Chapter VI of this guideline.

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