Hypo: S is the registered owner of a land covered by TCT No. 12345. He sold the same to B who did

not have any notice of claims of third person/s over the land and paid the fair market value of the

land (10m). Thus, B is an IPV. The land was registered in the name of B with TCT No. 23456. B then

sold the property to X. However, before X could pay the 10m, he discovered that A had a claim

against S over the property. X paid the property and was registered in his name with TCT No.

34567. What did X acquire from B? Can X claim the rights of an IPV since B is an IPV?

Answer: YES, by virtue of subrogation. In subrogation, the transferee acquires the status and rights

of the transferor. Since B, the transferor is an IPV, X acquires the rights and status of IPV

notwithstanding the fact that he had knowledge of A’s claim. X steps into the shoes of his

predecessor-in-interest.

Hypo: If A files a case against S. What defense can B put up?

Answer: His status and rights as IPV.

Hypo: How about X?

Answer: He may also raise the defense that he is an IPV since he acquired the status and rights of B.

Spouses Mathay v. Court of Appeals

Facts: A lot covered by TCT NO. 85866 with an area of 174,000sqm is owned by certain Tomas

Lucido. He applied for the purchased of the land to the government on 1936. However, after the

execution of the certificate of sale (COS) by the director of Bureau of Lands, Tomas Lucido assigned

his COS in favour of Batallones and Quimio in 1944. The assignment of COS was submitted for

approval to the director of Lands but it was only in 1976 that the assignment was approved. As a

consequence, TCT No. 85866 was issued in the name of Batallones and Quimio on August 9, 1976.

Subsequently, Lucido filed a case against Batallones and Quimio and judgment was rendered based

on compromise agreement. The judgment subdivided the lot into 6 lots and were distributed to

Lucido, Batallones and Quimio and corresponding certificates of title were issued in their name.

Lucido was assigned with lot no. 2168-a and 2168-b. Batallones was issued with lot no. 2186-c and

2186-d while Quimio got lot no. 2186-e and 2186-f. The three declared the property for tax

purposes so they were also issued tax declaration and paid the real estate taxes. Lucido then sold

A -------------------- TCT no. 12345

v. S------------------- B (IPV)----------------------X

1st sale 2nd sale

TCT no.

12345

TCT No.

23456

his property to an Atangan in 1985. The certificate of title was issued to Atangan also in 1985.

Batallones, on the other hand, sold the property to Poblete and Quirona in 1988 and their TCT was

also issued during that year. Quimio sold the property to Kotas in 1985 and TCT was issued in his

name in 1985. Atangan, Poblete, Quirona and Kotas were the actual occupants of the property.

On the other hand, Spouses Mathay purchased the same parcel of land from Banayo and Kugay (?).

According to Spouses Mathay, sellers have a certificate of title covering the same land and it was

TCT No. 111070 issued on February 28, 1980. The Deed of Sale executed between the parties was

dated May 21, 1980 and the DOS was registered with the Register of Deeds and corresponding

certificate of title was issued with TCT No. 113047 on June 3, 1980. Spouses Mathay engaged the

services of some men to fence the property and as a consequence, Atangan and the others filed a

case against Spouses Mathay.

Issues:

(a) Are spouses Mathay IPV?

(b) Whose certificate should prevail?

Held:

(a) No because the exception to the Mirror Doctrine was applied by the Court. At the time of the

sale, the sellers were not in possession of the property and in fact, there were third persons

occupying the same. These instances should have put Spouses Mathay into inquiry as to the

nature of the possessory rights of Atangan et. al. Since they did not investigate, they are not

IPV.

(b) Because there are successive registrations in this case involving the same land, the rule is to

trace the original certificates of title from which the certificates of title in question were

derived. This is called DERIVATIVE TITLE. So, trace the derivative title. In this case, the

derivative title of the certificate of Spouses Mathay was issued on February 28, 1980 and

the derivative title of the certificates of Atangan et al was issued on August 9, 1976.

Obviously, the derivative title of Atangan et al (TCT No. 85866) bears an earlier date which

means that the certificates of Atangan et al should prevail over the certificate of Spouses

Mathay.

Rules if there are two or more genuine certificates of title:

a. If there are only two genuine certificates of title issued to different persons covering the

same land, the person whose certificate of title bears an earlier date prevails.

Basis: prius tempore, potior jure.

Note: this is not applicable if there are successive registrations.

b. In case of successive succession where more than one certificates of title are issued in

respect of a particular estate, the person claiming under the prior certificate is entitled to

the estate or interest and that person is deemed to hold, under the prior certificate, a claim

derived directly or indirectly from the holder of the earliest certificate issued in respect

thereof.

Where two certificates purport to the same land, wholly or partly, the better approach is to

trace the original certificates of title from which the certificates of title were derived. If

there are successive registrations involving the same land, the rule is not to determine the

title based only on the date of the certificate of title. The derivative title that bears an earlier

date should prevail.

Involuntary Cadastral Proceedings (CP)

Nature:

a. Proceeding in rem which means that the proceedings and the judgment are binding upon

the whole world.

b. The proceedings are involuntary because the initiative in the institution of the petition or

registration lies with the government and the persons claiming ownership must assert their

claim in the case or they lose their property. This means that the person is compelled to file

an answer. If the person loses his ownership, the land shall be declared owned by the State.

Section 35. Cadastral Survey preparatory to filing of petition.

(a) When in the opinion of the President of the Philippines public interest so requires that title to any unregistered lands be

settled and adjudicated, he may to this end direct and order the Director of Lands to cause to be made a cadastral survey of the

lands involved and the plans and technical description thereof prepared in due form.

(b) Thereupon, the Director of Lands shall give notice to persons claiming any interest in the lands as well as to the general

public, of the day on which such survey will begin, giving as fully and accurately as possible the description of the lands to be

surveyed. Such notice shall be punished once in the Official Gazette, and a copy of the notice in English or the national

language shall be posted in a conspicuous place on the bulletin board of the municipal building of the municipality in which

the lands or any portion thereof is situated. A copy of the notice shall also be sent to the mayor of such municipality as well as

to the barangay captain and likewise to the Sangguniang Panlalawigan and the Sangguniang Bayan concerned.

(c) The Geodetic Engineers or other employees of the Bureau of Lands in charge of the survey shall give notice reasonably in

advance of the date on which the survey of any portion of such lands is to begin, which notice shall be posted in the bulletin

board of the municipal building of the municipality or barrio in which the lands are situated, and shall mark the boundaries of

the lands by monuments set up in proper places thereon. It shall be lawful for such Geodetic Engineers and other employees

to enter upon the lands whenever necessary for the purposes of such survey or the placing of monuments.

(d) It shall be the duty of every person claiming an interest in the lands to be surveyed, or in any parcel thereof, to

communicate with the Geodetic Engineer upon his request therefor all information possessed by such person concerning the

boundary lines of any lands to which he claims title or in which he claims any interest.

(e) Any person who shall willfully obstruct the making of any survey undertaken by the Bureau of Lands or by a licensed

Geodetic Engineer duly authorized to conduct the survey under this Section, or shall maliciously interfere with the placing of

any monument or remove such monument, or shall destroy or remove any notice of survey posted on the land pursuant to

law, shall be punished by a fine of not more than one thousand pesos or by imprisonment for not more than one year, or both.

Object or purpose of CP: Under Section 35, it is to adjudicate title to lands. The titles issued in CP

are the same as those issued in voluntary registration proceedings.

Preparatory steps in the filing of petition (Under Section 35):

a. Cadastral survey (Section 35)- When in the opinion of the President of the Philippines

public interest so requires that title to any unregistered lands be settled and adjudicated, he

may to this end direct and order the Director of Lands to cause to be made a cadastral

survey of the lands involved and the plans and technical description thereof prepared in

due form.

It is the President who determines whether a certain land should be the subject of CP which

means that unregistered lands in a particular area should be settled or adjudicated by the

cadastral court. Cadastral Survey is conducted by the geodetic engineers or surveyors of

Land Management Bureau. So if for example, Town A is subject to a CP, then all lands in

Town A shall be surveyed.

Consequence of Cadastral Survey: there shall be a cadastral survey plan with technical

description of the lands covered by it.

b. Director of Lands through Solicitor General shall institute the original registration

proceedings by filing the necessary petition with the RTC of the place where the land

is situated.

The petition should:

Be directed against holders, claimants, possessors or occupants of such lands or any

part thereof. The same in substance that public interest requires that titles to land

be settled and adjudicated and pray that such titles to land be settled and

adjudicated.

Contain a description of the lands and accompanied by a cadastral survey plan and

such other data as may serve to furnish full notice to the occupants and other

persons claiming interest therein. Where the plan consists of two or more lands

owned by different persons the plan must indicate the boundaries of each parcel as

accurately as possible. Each parcel shall be called LOT. Each lot covered in the CS

Plan shall be designated with a CADASTRAL LOT NO. (Ex: CL 132) and such

designation shall be permanent. It cannot be changed except by order of the

court. Future subdivision of the lot shall be designate with a LETTER (Ex: TCT 132-

A, TCT 132-B). The letter means that the lot is covered by a previous cadastral

survey plan.

Note:

Cadastral Lot no.- the designated no.

Cadastral Letter- the designated letter

c. The court shall issue an order setting the date of the initial hearing and the order to

be transmitted to the Administrator of LRA who will cause the preparation of the

notice of initial and the service of such notice (Posting, Mailing, Publication).

Who is notified in the notice of initial hearing?

-persons named in the petition

-adjoining owners

-occupants

-to all whom it may concern which means notice is given to the public.

What does the notice require?

-requires these persons to present their claims to said land or any part thereof before they are

declared to be in default.

d. Filing of ANSWER

(Section 37) Any claimant in cadastral proceedings, whether named in the notice or not,

shall appear before the court by himself or by some other authorized person in his behalf,

and shall file an answer on or before the date of initial hearing or within such further time

as may be allowed by the court. The answer shall be signed and sworn to by the claimant or

by some other authorized person in his behalf, and shall state whether the claimant is

married or unmarried, and if married, the name of the spouse and the date of marriage, his

nationality, residence and postal address, and shall also contain:

(a) The age of the claimant;

(b) The cadastral number of the lot or lots claimed, as appearing on the plan filed in the case

by the Director of Lands, or the block and lot numbers, as the case may be;

(c) The name of the barrio and municipality in which the lots are situated;

(d) The names and addresses of the owners of the adjoining lots so far as known to the

claimant;

(e) If the claimant is in possession of the lots claimed and can show no express grant of the

land by the government to him or to his predecessors-in-interest, the answer shall state the

length of time he has held such possession and the manner in which it has been acquired,

and shall also state the length of time, as far as known, during which the predecessors, if

any, held possession;

(f) If the claimant is not in possession or occupation of the land, the answer shall fully set

forth the interest claimed by him and the time and manner of his acquisition;

(g) if the lots have been assessed for taxation, their last assessed value; and

(h) The encumbrances, if any, affecting the lots and the names of adverse claimants, as far as

known.

Nature of the answer filed by the claimant:

-An action to recover ownership or title in as much as real rights are involved.

Can a motion to dismiss be filed in a CP?

-Yes. If lands covered in CSP and therefore included in the petition are already REGISTERED

UNDER TORRENS SYSTEM OF REGISTRATION PURSUANT TO ISSUANCE OF LAND PATENTS.

Because in this case, the lands cannot be the subject of CP. Hence, the cadastral acquires no

jurisdiction over the lands. Since no jurisdiction, proceedings will be null and void. This also applies

to lands registered by voluntary or ordinary registration proceedings.

e. Solicitor General will make a motion that person who did not file answers shall be

declared in default.

Court may issue:

-Order of general default- covers the whole world and covers persons who did not appear AND file

an answer.

-Order of special default- covers persons who appeared and asked for an extension of time to file

answer or opposition yet they were not able to file opposition within the given extension of time.

f. Presentation of evidence/ hearing

g. Court will render judgment

Note: section 34 also applies in CP.

What laws govern CP?

-PD 1529

-Rules of Court not inconsistent with PD 1529 by analogy or in a suppletory character

Powers of Cadastral Court:

a. Court may issue the decree of registration in the sense that the court may adjudicate the

ownership of the lands in favour of one or more complainants.

Section 34. Rules of procedure. The Rules of Court shall, insofar as not inconsistent with the provision of this Decree, be applicable to land registration and cadastral cases by analogy or in a suppletory character and whenever practicable and convenient.

b. If judgment is already final and executory, issue order the Administrator of LRA to issue

decree of registration and issue the corresponding certificates of title. Compliant to such

order, LRA shall issue them.

c. Declare lands as public lands if there is no claimant.

d. Rule on the authenticity of the certificates of title purportedly issued to the lands described

therein.

e. Order correction of technical description of lands included therein.

f. Resolve priority of overlapping titles pursuant to provision of Section 38.

Remedy if judgment is rendered by cadastral court:

-Appeal from the judgment- within 15 days from the receipt of the judgment.

Upon expiration of the period to appeal and no appeal is perfected then the title to the lands is

vested to the persons to whose favor the judgment was rendered.

Effect if judgment becomes final and executory and corresponding COTs are issued:

-Decree of registration shall be conclusive upon all persons. Since the proceeding is in rem, it is

binding to the whole world.

May writs of possession be issued in a CP?

-Yes. In order to enforce the judgment in favour of the winning party.

SUBDVISION AND CONSOLIDATION PLANS (SECTION 50)

Subdivision:

A registered owner of several distinct parcels of land embraced in and covered by one COT desiring

to subdivide/separate the lots and be covered by separate COTS may apply for the subdivision of

the land.

Steps:

Section 38. Hearing, Judgment, Decree. The trial of the case may occur at any convenient place within the province in

which the lands are situated and shall be conducted, and orders for default and confessions entered, in the same

manner as in ordinary land registration proceedings and shall be governed by the same rules. All conflicting

interests shall be adjudicated by the court and decrees awarded in favor of the persons entitled to the lands or to

parts thereof and such decrees shall be the basis for issuance of original certificates of title in favor of said persons

and shall have the same effect as certificates of title granted on application for registration of land under ordinary

land registration proceedings.

a. Survey on the land. As a consequence, there will be a corresponding subdivision plan duly

approved by the Director of Land Management Bureau.

b. File a written request to the Register of Deeds for the subdivision of the lands.

c. Surrender his duplicate COT and submit the subdivision plan together with the technical

description for each lot.

Ex: A owns 10 hectares wishes to subdivide the land to 10 distinct parcels. He shall follow the steps

provided above. NO NEED TO FILE AN ACTION TO THE COURT.

2 kinds of subdivision plan to be submitted:

a. Simple- subdivision plan involves only the issuance of 7 COTS; only the administrator of

LRA needs to approve this plan.

b. Complex- more than 7 COTS; must be approved by Administrator and HLURB.

*The classification is necessary to determine who should approve the plan.

Consolidation

A registered owner desiring to consolidate several lots (provided they are contiguous) into one or

more may apply for the consolidation of the lands.

Steps:

a. Survey on the land. As a consequence, there will be a corresponding consolidation plan,

with technical description thereof, duly approved by the Director of Land Management

Bureau.

b. Surrender duplicate COT and submit the consolidation plan together with the technical

description.

c. Register of Deeds shall cancel the COT and issue a new one for the consolidated lots.

The LRA may not order or cause any change, modification, or amendment in the contents of any

certificate of title, or of any decree or plan, including the technical description therein, covering any

real property registered under the Torrens system, nor order the cancellation of the said certificate

of title and the issuance of a new one which would result in the enlargement of the area covered by

the certificate of title.

Purpose of Subdivision and Consolidation:

-to prevent land grabbing.

SPLITTING AND CONSOLIDATION

Splitting

Section 49. Splitting, or consolidation of titles. A registered owner of several distinct parcels of land

embraced in and covered by a certificate of title desiring in lieu thereof separate certificates, each

containing one or more parcels, may file a written request for that purpose with the Register of

Deeds concerned, and the latter, upon the surrender of the owner's duplicate, shall cancel it

together with its original and issue in lieu thereof separate certificates as desired. A registered

owner of several distinct parcels of land covered by separate certificates of title desiring to have in

lieu thereof a single certificate for the whole land, or several certificates for the different parcels

thereof, may also file a written request with the Register of Deeds concerned, and the latter, upon

the surrender of the owner's duplicates, shall cancel them together with their originals, and issue in

lieu thereof one or separate certificates as desired.

What kind of title is created by registration?

-imprescriptible AND indefeasible.

Why?

-Because title to registered land cannot be acquired by prescription or adverse possession.

Hypo: A is the registered owner of a land. He went to Iraq and B stayed in the land for 38 years. A

went back. Can he still recover the land notwithstanding the 38 years possession of B?

Answer: Yes because of Section 47. No matter how long the possession is, A can file an action to

recover the land.

Hypo: In the same case, A died. May heirs of A file the action to recover possession? May heirs of A

invoke the imprescriptibility of the title of A?

Answer: Yes, heirs may file the action because of two legal bases: (a) legal heirs succeed the title of

the owner and hence, stepping into the shoes of the decedent by operation of law and (b) they are

considered the extension/continuation of the personality of their predecessor-in-interest (Mateo v.

Blah).

Hypo: In the same case, B raised the defense of laches ie it took A 38 years to file the action. Is

laches a valid defense in action to recover the land?

Answer: No, filing of action to recover possession may not be barred by laches because laches is

contrary to Sectio 47.

What is laches?

-a principle based on equity.

Section 47. Registered land not subject to prescriptions. No title to registered land in derogation of

the title of the registered owner shall be acquired by prescription or adverse possession.

-it may not prevail over a specific provision of law because equity, which has been defined as justice

outside legality, is applied ONLY in the absence of, and not against statutory law or rules of

procedure.

If land is unregistered: Laches may apply.

If land is registered: Laches will not apply. Section 47 prevails.

Direct and Collateral Attack

Two kinds of attack on a COT:

a. Direct- there is an action to cancel, annul or nullify the COT. Hence, validity of the COT is the

main issue.

b. Collateral- there is action but the relieved prayed for is not to cancel or nullify the COT. The

prayer to cancel, annul or nullify the COT is merely incidental thereto.

Hypo: A filed and action for ejectment or recovery of possession against B, when is there a collateral

attack?

Answer: If B raises the defense that A’s title is invalid.

In an action for ejectment or recovery of possession, what is the main issue/relief prayed for?

-Who has a better right of possession of the land.

So, can the court issue an order cancelling the title of A?

-NO because it is just an indirect attack. Relief prayed for is recovery possession.

What is the purpose of action to cancel, annul or nullify title?

-cancel, annul or nullify title.

When will this be available?

a. When the court rendered judgment without acquiring jurisdiction over the case. Hence, the

corresponding title is null and void.

b. When the court rendered judgment in favour of a person and hence, causing the registration of

the land in his name but the land was in fact already (previously) registered under someone else’s

name. In this case, there are two titles.

Hypo: A filed and action for ejectment or recovery of possession against B. B, in his answer, filed a

counterclaim to cancel or nullify the title of A. Will the counterclaim of be entertained?

Answer: YES because this will constitute a direct attack already. A counterclaim is a direct attack

because counterclaim is the complaint of B, defendant, against. Hence, there are two cases: (1) A v.

B for recovery of possession and (2) B v. A for the nullification of A’s title.

Section 48. Certificate not subject to collateral attack. A certificate of title shall not be subject to collateral attack. It cannot be altered, modified, or cancelled except in a direct proceeding in accordance with law.

Hypo: A filed and action for ejectment or recovery of possession against B. The action to nullify is

raised in a third party complaint. Will the third party complaint be entertained?

Answer: Yes. An action to cancel or nullify title in a third party complaint is in the same nature as an

original action to cancel or nullify title of A. Hence, it is a direct attack. Two cases: A v. B for

recovery of possession and B v. C for nullification of title of A (Spouses Sarmiento v. CA).

VOLUNTARY DEALINGS

Under Section 51, what can the owner do with his property?

-An owner of registered land may convey, mortgage, lease, charge or otherwise deal with the same

in accordance with existing laws.

-Bottom line, he may enter into voluntary dealings.

Example of contract involving conveyance: Contract of Sale, Mortgage

Why is it voluntary?

-because the contract is entered into with mutual consent.

What instrument should the registered owner use?

- He may use such forms of deeds, mortgages, leases or other voluntary instruments as are

sufficient in law.

When is a deed sufficient in law?

-If it is executed in the form prescribed by law.

When would the deed be in a form prescribed by law?

-If it complies with Section 112 and Section 55.

Section 112. Forms in conveyancing. The Commissioner of Land Registration shall prepare convenient blank forms as may

be necessary to help facilitate the proceedings in land registration and shall take charge of the printing of land title forms.

Deeds, conveyances, encumbrances, discharges, powers of attorney and other voluntary instruments, whether affecting

registered or unregistered land, executed in accordance with law in the form of public instruments shall be registerable:

Provided, that, every such instrument shall be signed by the person or persons executing the same in the presence of at least

two witnesses who shall likewise sign thereon, and shall acknowledged to be the free act and deed of the person or persons

executing the same before a notary public or other public officer authorized by law to take acknowledgment. Where the

instrument so acknowledged consists of two or more pages including the page whereon acknowledgment is written, each

page of the copy which is to be registered in the office of the Register of Deeds, or if registration is not contemplated, each

page of the copy to be kept by the notary public, except the page where the signatures already appear at the foot of the

instrument, shall be signed on the left margin thereof by the person or persons executing the instrument and their witnesses,

and all the ages sealed with the notarial seal, and this fact as well as the number of pages shall be stated in the

acknowledgment. Where the instrument acknowledged relates to a sale, transfer, mortgage or encumbrance of two or more

parcels of land, the number thereof shall likewise be set forth in said acknowledgment .

What happens if the document complies with Section 112 or in the form prescribed by law?

-It becomes a public document. Thus, it becomes a registerable document.

So if the VD covers a registered land, what is required under Section 51 to bind third persons?

-The deed must be registered in the

-Memorize: The act of registration shall be the operative act to convey or affect the land insofar as

third persons are concerned, and in all cases under this Decree, the registration shall be made in the

office of the Register of Deeds for the province or city where the land lies.

If the transaction is not registered and the VD covers registered land and a registerable deed is

executed , what is the effect?

-It shall be an evidence of the authority of Registry of Deeds to register the same.

-Between the parties, it serves as contract which has binding effect.

When will the deed bind third persons?

General Rule:

When the deed together with the owners duplicate COT is presented for registration to the ROD and

the deed is actually registered.

Exception:

An unregistered deed may affect third persons if such third persons have actual knowledge of the

transaction because the purpose of registration is already accomplished. The purpose of

registration is to give knowledge. Hence, actual knowledge is equivalent to registration.

Hypo: A sells his land to B. There is a deed of sale executed on March 15, 2011 but it was not

registered. On May 15, 2011, C filed a case against A and with this, C obtained a writ of attachment.

As a consequence, C, through the sheriff, attached the TCT of A and the attachment was registered.

Who between C and B has a better right of the property?

Answer: It depends on whether X has an actual knowledge of the sale between A and B.

Section 55. Grantee's name, nationality, etc., to be stated. Every deed or other voluntary instrument presented for registration shall contain or have endorsed upon it the full name, nationality, residence and postal address of the grantee or other person acquiring or claiming an interest under such instrument, and every deed shall also state whether the grantee is married or unmarried, and if married, the name in full of the husband or wife. If the grantee is a corporation or association, the instrument must contain a recital to show that such corporation or association is legally qualified to acquire private lands. Any change in the residence or postal address of such person shall be endorsed by the Register of Deeds on the original copy of the corresponding certificate of title, upon receiving a sworn statement of such change. All names and addresses shall also be entered on all certificates.

Notices and processed issued in relation to registered land in pursuance of this Decree may be served upon any person in interest by mailing the same to the addresses given, and shall be binding, whether such person resides within or without the Philippines, but the court may, in its discretion, require further or other notice to be given in any case, if in its opinion the interest of justice so requires.

If X has knowledge, he would be bound to the transaction. Hence, B has a better right.

If X has no actual knowledge, he is an innocent purchaser in good faith and for value. He has a better

right over the property because the writ of attachment is registered (Pineda v. Alcaraz).

Note:

Section 32: 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.

What is the effect of the registration of the deed under Section 52?

-The registration of every conveyance, mortgage, lease, lien, attachment, order, judgment,

instrument or entry affecting registered land shall serve as constructive notice to all persons from

the time of such registering, filing or entering.

What is the effect of the constructive notice?

-Once the transaction is registered, there is a conclusive presumption that a person has knowledge

of such transaction whether or not such person has actual knowledge of the registration.

PRIMARY ENTRY BOOK

Under Section 56, what does the ROD keep in his office?

-primary entry book

What is the use of the primary entry book?

-Instruments covering whether voluntary dealings or involuntary dealings shall be entered in this

book.

How are they entered?

-They shall be entered according to the order of their reception.

Other name for PEB?

-Day Book.

What is the effect of the annotation or registration of the instruments in the primary entry book?

-the instrument shall be binding upon third persons because the registration is already deemed

completed.

Note: The date of entry in the Primary Entry Book is important so as to determine the date of

registration. The entry alone in the PEB serves as constructive notice notwithstanding the fact that

actual registration is not yet completed. The actual annotation of the instrument or registration

retroacts to the date of the entry to the Primary Entry Book.

What are requirements so that the entry of VD in the entry book is sufficient?

a. Must comply with requirement of Section 53- Deed must be accompanied with the

Owners Duplicate Certificate of Title

Section 56: They shall be regarded as registered from the time so noted, and the memorandum of each instrument, when made on the certificate of title to which it refers, shall bear the same date.

b. The deed must be sufficient in law.

Under Section 55, what must be stated in the deed?

-qualification of the grantee to acquire the land, specifically:

A. Full name

B. Nationality

C. Residence

D. Postal address

E. Civil status

F. If grantee is married, name of spouse

G. If grantee is a corporation, recital to show that such corporation is legally qualified to

acquire private lands.

Hypo: If deed states that the property is sold to A, a foreigner. Is the deed in a form sufficient in

law?

Answer: No because it violates Section 55. Hence, it will not be registered by ROD.

Under Section 112, what is the requirement?

-must be executed in accordance with law in the form of a public instrument

Effect if it complies with Section 112?

-the deed shall be registerable.

May a deed, not notarized, be registered?

-No because it is a private document.

When is an instrument be considered a public instrument?

-If the deed is signed by the person or persons executing the same in the presence of at least two

witnesses who shall likewise sign thereon, and shall acknowledged to be the free act and deed of

Section 53. Presentation of owner's duplicate upon entry of new certificate. No voluntary instrument shall be registered by the Register of Deeds, unless the owner's duplicate certificate is presented with such instrument, except in cases expressly provided for in this Decree or upon order of the court, for cause shown.

The production of the owner's duplicate certificate, whenever any voluntary instrument is presented for registration, shall be conclusive authority from the registered owner to the Register of Deeds to enter a new certificate or to make a memorandum of registration in accordance with such instrument, and the new certificate or memorandum shall be binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value and in good faith.

In all cases of registration 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. After the entry of the decree of registration on the original petition or application, any subsequent registration procured by the presentation of a forged duplicate certificate of title, or a forged deed or other instrument, shall be null and void.

the person or persons executing the same before a notary public or other public officer authorized

by law to take acknowledgment.

Hypo: A deed of sale contains the words, “Subscribed and sworn to before me” and the other

requirements. Is the deed a public instrument?

Answer: No because the same is a jurat not a notarial acknowledgement. Jurat cannot be used in

lieu of notarial acknowledgement. Use of jurat did not make the deed of sale a public document.

Notarial acknowledgement is different from Jurat.

c. Registration fees must be paid fully.

Note: Certificate Authorizing Registration issued by BIR is required in some document. CAR is not

issued when tax is not paid. Without CAR, documents concerned will not be registered.

Ex: Deed of Sale, Deed of Donation

Why it is that compliance of the three requirements renders the document deemed already

registered as far the registrar is concerned? Note: In this case, the deed is also presented and

stamped but there is no entry in the Entry Book yet.

-Because what remains to be done is just in the power of Registry of Deeds. Registrant has already

accomplished what he is supposed to do.

Under Section 53, why is the presentation of owner’s duplicate COT required?

-because the presentation of the voluntary instrument with the owner’s duplicate COT serves as an

evidence that transaction is voluntarily entered into by him and that he is naturally interested in

registering the same.

-The production of the owner's duplicate certificate, whenever any voluntary instrument is

presented for registration, shall be conclusive authority from the registered owner to the Register

of Deeds to enter a new certificate or to make a memorandum of registration in accordance with

such instrument, and the new certificate or memorandum shall be binding upon the registered

owner and upon all persons claiming under him, in favor of every purchaser for value and in good

faith.

Is the presentation of owner’s duplicate COT required in Involuntary Dealings?

Jurat Notarial Acknowledgement

Used/required in documents that contain narration of facts or sworn statements (eg

affidavits)

Required in contracts or documents creating or extinguishing rights

Starts with “Subscribed and sworn to before me”

Starts with “Before me personally appeared, (name of persons who executed the deed),

known to me and acknowledged bla bla bla”

-No because the registered owner would be adversely affected by the transaction and naturally, he

will not willingly surrender or present the owner’s duplicate COT.

Can the ROD give due course to a voluntary conveyance without presentation of owner’s duplicate

COT?

-No because the presentation of the owner’s duplicate together with the deed is the conclusive

authority on the part of the ROD to make registration. Hence, if the owner’s duplicate is not

presented, ROD has no authority to register the same.

What is the effect if what is presented is a genuine deed accompanied with a fake owner’s

duplicate? Is ROD authorized to register the same?

-No because the law requires the presentation of the genuine owner’s duplicate COT.

What is the effect of non-registration of the VD with respect to third persons?

-Third persons are not bound and the seller is still the registered owner of the land.

If ROD has doubts as to the steps to be taken in handling the registration, to deny or not, what is the

remedy of ROD?

a. Actually deny the registration

b. Elevate it en consulta to the administrator of LRA which means the registration has not

been denied or approved yet

If the document is denied of registration, what is the remedy of registrant?

-Elevate it en cosulta to administrator of LRA

Requirements with respect to elevation en consulta (Section 117):

a. Person elevating en consulta must be a party in interest

b. Filed within 5 days from receipt of notice of denial

c. Payment of consulta fees

d. Provided that the documents have not yet been withdrawn from the ROD

What is the remedy of denial of said consulta by the administrator?

-appeal by the party in interest to the CA

What is the effect sale of land to alien?

-depends.

If alien is a former natural born citizen of the Philippines, the sale is valid because such alien may

acquire or become transferees of lands. Why? Because allowed by Constitution and Foreign

Investments Act as amended.

Requisites under this:

a. Alien must be a former natural born citizen of the Philippines

b. He has legal capacity to enter into contracts

c. Land must be urban or rural land

d. Max area for urban land: 5,000sqm and max area for rural land: 3 hectares

e. Purpose must be for residential, business or any other purposes.

f. For spouses, privilege may only be availed one

g. If the transferee already has rural or urban land, he may acquire additional land but must

not exceed the area limit.

If alien is not a former natural born citizen of the Philippines, the sale is null and void because it

violates the constitution.

Hypo: A, an alien not a former natural born citizen of the Philippines, acquired an urban land. He

posits the defense that the sale is valid because the prohibition in the constitution applies only to

agricultural lands. Is the defense valid?

Answer: No because there are only 3 types of lands according to the constitution, to wit:

agricultural, mineral and timber land. So an urban land is an agricultural land.

Hypo: A, Filipino, sold his land to B, a foreigner not a former natural born citizen of the Philippines.

Since the resulting contract is null and void, A filed an action recover his land. If you were the judge,

would you grant the same?

Answer: No because of principle of in pari delicto.

In Pari Delictio means both are equally guilty. Then, the law will leave them where they are. Courts

will not disturb their present situation. Seller cannot be required to return purchase price and buy

cannot be required to return the land.

Who may recover the land in such a case?

-the government in an escheat proceeding through the Solicitor General.

Hypo: A, an alien, applied for his naturalization. Before it was approved, B sold his land to A. Later

on, his naturalization was approved. Is the sale valid or not?

Answer: It depends. A may become owner of the land provided he becomes naturalized before

institution of escheat proceedings. If there is already an escheat proceeding before he was

naturalized, A cannot become the owner there of.

Hypo: A, Filipino, bought a land using the money of B, an alien. Is the sale valid?

Answer:

General Rule: Yes it is valid because A merely used the money of B and thus, the land was registered

under his name.

Exception: When A is being used as dummy of B- violation of Anti-Dummy Law. In this case, B is

actually the buyer.

May an alien corporation and foreign religious corporations acquire lands?

-No.

May the Roman Catholic Church own property in the Philippines?

-Yes because the Catholic Church has no nationality. It is a corporation sole. Catholic Church is

composed of the parishioners and the parish priest is merely the administrator. Catholic Church in

the Philippines consists mostly of Filipino parishioners. Therefore, RCC as a corporation sole is

authorized to own lands in the Philippines.

Corporation sole is a corporation that is represented by one stockholder.

Why is the owner’s duplicate COT a safeguard against fraud?

-because voluntary transaction procured by forging signature of owner cannot be registered

without the owner’s duplicate COT. Forged instruments covering VD cannot be registered. As long

as owner keeps his duplicate COT, no instrument covering VD can be registered.

(First case) Is there a case where more than one owner’s duplicate COT is issued to just one owner?

May a second duplicate COT be given to the owner?

-No.

(Second case) How about in co-ownership?

-Yes.

Note: Two cases above are different. In the first case, there is only one owner. Hence, one duplicate

COT may only be issued. In the second case, there is more than one owner. Hence, each owner shall

be issued a duplicate COT.

What is the requirement for registration if there are several co-owners?

-All copies of the co-owner’s duplicate COT must be presented.

Section 53, last paragraph contemplates two documents:

a. Forged deed

b. Forged owner’s duplicate COT

What is the effect if a forged deed was registered?

-The registration is null and void.

Hypo: A and B entered into a contract of sale. A, being the seller, went o ROD to register the same

but the ROD merely noted the sale at the back of the owner’s duplicate COT. Is this sufficient?

Answer: It depends.

If the sale involves only a part of the land, it is sufficient for the meantime. Because to issue a COT

for the sold part requires a subdivision plan so the preliminary step is to note the transaction in the

COT.

If sale of the entire property, it is not sufficient. The COT must be cancelled and a new COT must be

issued to the buyer.

Section 53, last par: In all cases of registration 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. After the entry of the decree of registration on the original petition or application, any subsequent registration procured by the presentation of a forged duplicate certificate of title, or a forged deed or other instrument, shall be null and void.

General Rule: Registration of forged deed is null and void and conveys no title to land.

This case is an exception but for the exception to apply, three requirements must be complied with,

to wit:

a. The COT was entrusted/delivered to the forger.

b. The COT was already transferred from the name of the owner to the name of the forger.

c. Subsequently, the land was transferred to an innocent purchaser for value.

Note: This is the case where a forged deed may be a root of a valid title. The 3 requirements must be

complied with.

Rationale: Because it is through true owner’s negligence in entrusting her COT that paved way for

the commission of forgery. More than that, IPV has a better right because mirror doctrine is applied.

Maxim applicable in this case: As between two innocent persons, one of whom must suffer the

consequences of breach of trust, the one who made it possible, by his act of confidence, must bear

the loss.

Hypo: Supposing the COT was delivered by the true owner to B and B, in return, forged the

signature of A, the true owner, in a special power of attorney providing that he can sell and

mortgage the property of A. B sold the same to C. Is this another exception?

Answer: No because (a) it fails to comply with the second requirement such that the COT was still

under the name of A when it was sold to C and (b) C is not an IPFV because he was dealing with B

who does appears as agent.

According to SC, one who deals with an agent must inquire as to the authority of the agent and if no

inquiry is made, he is charged with the knowledge of the authority of the agent.

SPA is a voluntary instrument. Hence, it may be noted in the COT.

May agency be created verbally?

Case of Duran v. IAC

Facts: Duran is the owner of a lands and went to US. B, her mother, executed a deed of sale covering the lands of Duran in favour of her. She did this by forging the signature of Duran. Before Duran left, she gave her owner’s duplicate COTs to B. She registered the sale and consequently, COTs were issued under B’s name. B procured a loan and the OCTs were used as mortgage. B failed to pay the loan so the mortgagee foreclosed the property. There was a foreclosure sale and mortgagee acquired the property.

Issue:

WON the mortgage of the property was valid

Held:

Yes.

-Yes

What is the status of a sale made by an agent authorized verbally?

-Void because agency authorizing agent to SELL must be written

Sale made without authority?

-Unenforceable

INVOLUNTARY DEALINGS

What type of dealings is covered under Section 57?

-Involuntary dealings.

What is being conveyed under Section 57?

-conveyance of entire estate

Procedure for registration:

a. Owner’s duplicate COT must be surrendered to ROD

b. ROD shall cancel the COTs (both original and owner’s)

c. Issue a new COT to the grantee

In case a portion of estate only:

a. The deed of conveyance should be noted in the COT

b. Subdivision survey must be conducted and there will be a subdivision plan. The subdivision

plan must be approved by the Director of Land Management Bureau. There shall also be a

technical description of the land.

c. Subdivision land must be submitted to ROD.

If subdivision plan has not been submitted, what is prohibited?

- pending approval of said plan, no further registration or annotation of any subsequent deed

or other voluntary instrument involving the unsegregated portion conveyed shall be

effected by the Register of Deeds, except where such unsegregated portion was purchased

from the Government or any of its instrumentalities.

Supposing the property is subject of mortgage and mortgage was noted in the COT. Later on,

mortgagor sold the property. What should be done?

-The mortgage shall be carried over in the new COT issued to the buyer.

Why?

-Because of Section 59.

Section 59. Carry over of encumbrances. If, at the time of any transfer, subsisting encumbrances or annotations appear in the registration book, they shall be carried over and stated in the new certificate or certificates; except so far as they may be simultaneously released or discharged.

How should land be described in the deed so that it may be registered?

-the deed must establish the identity of the property.

Note: Best description is the technical description.

What if there is discrepancy between area and boundaries?

-the boundaries described shall prevail.

Exceptions of Rule in Double Sale:

a. If the land is a registered land but one of the sales is registered in the book for unregistered

land.

Ratonale: The registration is legally ineffective.

b. If one of the sales is invalid.

c. If the same property is sold by different sellers.

d. If the property covered by the sale is unregistered land.

Section 113

Hypo: A, owner, sold his land to B. The land is an unregistered land. The sale took place on May 12,

2010 but it was not registered. A sold the same land to C on June 15, 2010 and the deed of sale was

registered on the same date. C has no notice of the sale between A and B. Who has a better right?

Answer: B because of Section 113.

The sale between A and B is binding even if not registered. The title has already been transferred to

B. Before the sale between A and C, B was already the owner of the property. Hence, A cannot sell

the same and C cannot acquire the same (Spouses Abrigo v. De Vera).

Maxim: You cannot give what you do not have.

Note: This also applies if the second sale was an execution sale.

Hypo: A, owner, sold his land to B. The land is a registered land. The sale took place on May 12,

2010 but it was not registered. A sold the same land to C on June 15, 2010 and the deed of sale was

registered on the same date. C has no notice of the sale between A and B. Who has a better right?

Answer: C because Article 1544 shall apply.

INVOLUNTARY DEALINGS

What is an involuntary dealing?

-dealing that is done against the will of the owner.

Examples:

Section 113 (b): It shall be understood that any recording made under this section shall be without prejudice to a third party with a better right.

This case was taken from Act No. 3044.

a. Lien or Levy on Execution

b. Lien on Real Tax

c. Condemnation Proceedings by virtue of eminent domain

Three kinds of attachment:

a. Preliminary attachment- applied before commencement of action or during the

proceedings.

b. Garnishment- made when the property of the defendant or the property to be attached is

with a third person not party to the case. The third person is called a garnishee.

Example: Money of a defendant in banks.

c. Levy on Execution- issued after a final and executor judgment in order to satisfy the

judgment.

How is ID registered?

-Under Section 69, An attachment, or a copy of any writ, order or process issued by a court of

record, intended to create or preserve any lien, status, right, or attachment upon registered land,

shall be filed and registered in the Registry of Deeds for the province or city in which the land lies,

and, in addition to the particulars required in such papers for registration, shall contain a reference

to the number of the certificate of title to be affected and the registered owner or owners thereof,

and also if the attachment, order, process or lien is not claimed on all the land in any certificate of

title a description sufficiently accurate for identification of the land or interest intended to be

affected. A restraining order, injunction or mandamus issued by the court shall be entered and

registered on the certificate of title affected, free of charge.

What are the purposes of preliminary attachment?

a. Establishes a security for the satisfaction of judgment that may be rendered. So it’s like an

involuntary mortgage.

b. Creates a lien or encumbrance on the land.

Is the owner’s duplicate COT required in registration of ID?

-No because the owner’s duplicate COT is not immediately required to be presented upon

registration.

After registration, what should the ROD do?

-Under Section 71, if an attachment or other lien in the nature of involuntary dealing in registered

land is registered, and the duplicate certificate is not presented at the time of registration, the

Register of Deeds shall, within thirty-six hours thereafter, send notice by mail to the registered

owner, stating that such paper has been registered, and requesting him to send or produce his

duplicate certificate so that a memorandum of the attachment or other lien may be made thereon.

What if owner refuses?

-If the owner neglects or refuses to comply within a reasonable time, the Register of Deeds shall

report the matter to the court, and it shall, after notice, enter an order to the owner, to produce his

certificate at a time and place named therein, and may enforce the order by suitable process.

If owner still refuses after order of court?

-owner shall be held in contempt.

When is the property considered attached? When is registration considered accomplished?

-when the attachment is noted/entered in the Primary Entry Book because of Section 56.

What is the consequence if the attachment is noted in the Entry Book?

-It serves as constructive notice to all persons.

What is the significance of the entry? Assuming there are several creditors who secured levy on

attachment on the same property. How to determine rights of each attaching creditor?

-The determination of priority of preferential right is based on the entry in the PEB. Because the

notation on the PEB is based in the order of reception.

May the attached property be the subject of voluntary transaction?

-Yes because the judgment debtor is still the owner of the property.

What happens if the debtor sells the property while it was already attached by the creditor?

-A new COT will be issued by the ROD in the name of the buyer and there will be an annotation in

the COT of liens and encumbrances, in this case, levy on attachment.

Why?

-Because of carryover of encumbrances in the new COT under Section 59.

In effect, what did buyer acquire?

-Title to the land subject to such attachment.

Hypo: D owns land which was subject to several involuntary transactions. A was able to secure a

writ of attachment on the property on January 2009. The claim of A was 10m. B obtained a levy on

execution against D and was registered on February 14, 2009. The judgment awards 5m. C obtained

a levy on execution against D and was registered on March 2009 and the judgment awards 2m. D’s

land has a value of 20m. Who among the creditors would have a better right on the property of D?

First case: A v. D

Second case: B v. D

Third case: C v. D

Answer: A because he has the earliest date of registration. A then called the senior lien holder.

B and C are junior lien holders. B is the first junior lien holder and C is the second lien holder.

The priority of rights is determined by the date of registration because of the principle “primus

tempore, potior jure”.

May B ask that the property be sold in an execution sale notwithstanding the writs of execution?

-Yes.

Assuming X bought the land for 5m (5m because 5m covers the credit of B). What did he acquire?

-title to the land subject to the attachment lien which means that X only acquires the RIGHT OF

REDEMPTION OF B. (so this is not available if you are the counsel of X.) So X acquires a right

inferior to A.

Note: even if X bought the land, A can still ask that the land be sold on execution because (again) he

is the senior lien holder.

Supposing A obtained a favourable judgment and the land was sold on execution. In the auction

sale, A is the highest bidder. If you were the lawyer of A, what amount will you advise him to bid?

-10m because the bid is actually the offer to pay the debt of D. Since the debt of D to A is 10m, the

bid of A should just be 10m since the execution of sale is a consequence of the judgment in favour of

A.

Note: The rule is to bid the amount of debt or the amount of the property, whichever is lower.

If the amount of the land is just 8m, A should just bid 8m. In that case, there’s still a deficiency

which means A can still go against D for 2m. Hence, A can attach other property of D.

What is the effect of acquisition of A?

-Under the law, the junior liens holders as well as the judgment debtor have the right of

redemption. So in this case, C,D and B.

What is the period of right of redemption?

-1 year from the registration of the sheriff’s certificate of sale.

What does right of redemption mean?

-acquire the property by paying the purchase price in the auction sale.

Since X acquired the rights of B, how much should X pay to redeem the land?

-10m + interest + expenses of sale + 5m

Note: This rule applies if it was B who redeemed the property assuming there was no sale to X.

If C wants to redeem the property, how much should the redemption price be?

-10m + 5m + interest + expenses + 2m

If D wants to redeem the property, how much?

-pay all purchase prices.

Note: D can sell his right of redemption.

Supposing nobody redeemed the property, what will happen?

-A, as the highest bidder, becomes the absolute owner upon expiration of period of redemption

under Section 75.

Procedure: Consolidation of title to A.

If A becomes the absolute owner of property as a consequence of his bid, what is the effect of the

sale?

Section 75. Application for new certificate upon expiration of redemption period. Upon the expiration of the time, if any, allowed by law for redemption after registered land has been sold on execution taken or sold for the enforcement of a lien of any description, except a mortgage lien, the purchaser at such sale or anyone claiming under him may petition the court for the entry of a new certificate of title to him.

-it retroacts to the date of levy of attachment because the sale on execution is merely a sequence of

the attachment. So all liens are wiped out.

Hypo: D mortgaged his property to F for 10m. The mortgage was not registered but A had

knowledge of the mortgage. Who between A and F have a better right?

-F because he would be an IPFV.

If knowledge of A of the mortgage is before his registration of lien, A is in bad faith.

If knowledge of A of such is after registration, A is in good faith. If he is in GF, he is then an IPFV.

Supposing A’s lawyer has knowledge, is his knowledge imputable to A?

-No.

What if court orders attachment of a property not owned by judgment debtor?

-null and void because court has no jurisdiction over that property.

Note: Right of Inheritance and right of redemption may be subject of attachment because they are

alienable real rights.

TAX SALE

What is a tax sale?

-consequence of tax lien (i.e. non-payment of real estate tax).

What is its nature?

-proceeding in personam

Is Real Estate Tax Lien required to be registered?

-No because under Section 44, it is one of the statutory liens.

Note: Since tax sale is just like auction sale, it is required that notice be personally served (by mail)

to the delinquent tax payer.

What is the purpose of notice?

-to comply with due process and give him right to be heard.

What is the effect if there is no notice?

-the tax sale would be null and void because it is a mandatory requirement.

Note: publication of tax sale is no sufficient. NOTICE PERSONALLY SERVED (by mail) to the

taxpayer is A MANDATORY REQUIREMMENT.

Remedy after redemption period expired (Ligon vs. CA)

In a voluntary sale, plaintiff must file an action for cancellation of title

During the pendency of the case, the plaintiff must file a motion to order the registered

owner to surrender the Owner’s Duplicate Certificate of Title (ODCOT)

If the registered owner does not surrender the title, the court will order the cancellation of

the title (Sec. 107)

If it is an involuntary transaction, mere motion during the pendency of the action is not

enough, the plaintiff must file a separate petition (Sec. 107)

Adverse Claim

Requisites of adverse claim

1. Claimant has a right or interest over a registered land

2. Claims is adverse to registered owner arising subsequent to date of original

registration

3. No other provision in the law registering the said claim

Procedure to register and adverse claim:

1. Make a sworn statement setting fully the alleged right

2. Present it to the RD

RD would determine whether or not an affidavit of adverse claim is registrable or not. He

will determine the sufficiency of the adverse claim

Legal requirements of the affidavit (70):

1. Alleged right o interest as basis of adverse claim – most important

2. How or under whom it is acquired

3. Reference to number of COT

4. Name of registered owner

5. Description of the land

Remedy if the affidavit of adverse claim is denied by RD: Appeal en consulta to RD

The following are the requirements to elevate consulta:

1. Elevates denial through consulta to LRA administrator

2. Whom? Party in interest

3. When? Within 5 days from receipt of denial

4. Must pay consulta fee

5. Provided that document has not been withdrawn from RD Example of adverse claim: contract to sell

There is reservation of ownership to the vendor and only upon full payment of the price

shall an absolute sale be executed

Assume that the buyer has already paid in full but the seller refused to execute an absolute

sale

In the meantime, there is danger that the seller might sell the same property to another

because he still holds the ODCOT

The remedy of the buyer would be to file action for specific performance

Before that remedy is filed in court, the buyer can file an adverse claim so that the property

will not be disposed to an IPV

Once it is filed, any person dealing with the land will be notified of the adverse claim of the

buyer and those who still purchases the land shall not be IPVs

Adverse claim does not apply to purely personal claims and it must affect the registered

land

Ex: Unpaid commission of an agent and collection of sum of money are a personal claim and

do not affect the land

Thus, such are not considered adverse claims

Interest of presumptive heirs are also not an adverse claim because it is dependent only

upon the death of the parent and not an interest on the land

Nature and purpose of adverse claim

1. It is a measure designed to protect the interest of a person over a piece of land where

registration of interest is not provided by law

2. It serves as a notice and warning to third parties dealing with property

Nature of adverse claim springs from Sec 51 where registration is the operative act that

coveys or affects the land for third persons

Adverse claim is not an established claim itself. It is merely a notice to third persons that

there is a claim adverse to registered owner

Ther eis still a need for judicial determination of the issue of ownership so filing of a case is

still required

Period of adverse claim

Sec 70 states that adverse claim shall be effective for 30 days

The period is not self-executory

The RD will not cancel the annotation of adverse claim automatically after 30 days even if

there is a petition filed in RD

Only way to cancel an adverse claim is by court order for cancellation

That adverse claim is effective within 30 days but the annotation remains in the COT unless

there is proper court order

To limit to 30 days the effectivity of the adverse claim automatically will defeat the purpose

of the inscription of the adverse claim

Lis Pendens

If there is an action affecting the title of the land pending in court, a lis pendens can be

registered by the plaintiff to protect his interests

Lis pendens – announcement to the whole world that the property is in litigation and serves

as a warning that one who acquires interest over the property takes it as his own risk

Lis pendens is different from litis pendentia

Litis pendentia – ground for motion to dismiss as there is another pending case with the

same motion/cause/parties in another court

In lis pendens, there is no need to file a motion in court. The party can immediately file a

petition of notice of lis pendens in the Registered of Deeds (RD)

The followings actions affecting the land or the use or occupation or buildings would be:

1. Recovery of possession of real estate

2. Quite title

3. Remove cloud on title

4. Partition

5. Any other proceedings directly affecting title to land

Example of actions not directly affecting title of land:

1. Attachment or levies of execution

2. Proceedings for probate of wills

3. Administration of estate of a deceased

How to file lis pendens

1. The plaintiff shall file a request in court for the issuance of a notice of lis pendens

a. A defendant can also file for a motion for notice of lis pendens if he has an

affirmative relief in his answer

2. The notice of lis pendens shall be filed to the RD where the RD

3. RD shall annotated on the back of the COT the notice of lis pendens

a. There is no need to annotate the notice on the ODCOT

Contents of notice of lis pendens

1. State institution of action or proceeding

2. There court where it is pending

3. Date of institution

4. Reference to the number of COT

5. Description of the land

6. Registered owner of the land

Effect of registration of notice

1. Keep the subject matter of litigation within the power of the court until final judgment

2. Prevent the defeat of the final judgment due to subsequent alienations during the pendency

of the case

3. Serve as a notice to third person that the land is subject to litigation

4. Third person shall be given constructive notice and purchasers shall not be considered in

GF

Peña: Notice lis pendens is not a right or lien as it is only a contingency that depends on the

outcome of the proceeding

If there is an alienation pending the proceeding even though there is lis pendens, the

purchase can still acquire the property provided that the judgment is in favor of the

defendant (registered owner)

Effect when there is no lis pendens:

1. The judgment or proceeding to vacate or reverse any judgment shall only affect the

parties

2. It shall not affect third persons

Cancellation of lis pendens

Before judgement:

1. By court order:

After showing that the notice is for the purpose of molesting the adverse

party

It is not necessary to protect the rights of the party who cause the

registration of notice

2. By verified petition of party before the RD who caused the registration of the notice

After judgment in favor of defendant or other disposition as to terminate rights of plaintiff:

By registration of certificate of clerk of court stating the manner of disposal of the

proceeding

The plaintiff can appeal the cancellation of lis pendens

An adverse claim and lis pendens can exist concurrently

Lost Owner’s Duplicate Certificate of Title (ODCOT) (109)

Not the same as reconstitution proceedings as that is Sec. 110 where the OCOT under

custody of RD is lost

Procedure in case there is lost or stolen ODCOT:

1. Notify RD by executing affidavit of loss or destruction of ODCOT

This shall be registered and annotated in Original Certificate of Title (OCOT)

Sent by the owner to RD

Filed as soon as loss or theft is discovered

2. Secure a certified true copy of OCOT showing the annotation

3. File a petition for replace of ODCOT in court

No publication requirement

Only posting of order and setting of date of hearing

It must be established the ODCOT was loss or stolen before court issue an order to the RD to

prepare a replacement copy of ODCOT

If the ODCOT is not actually lost or destroyed then the court hearing the petition for

replacement does not acquire jurisdiction

Any order issued by the court, such as order to issue replacement copy, shall be void

Ex: Mortgagor filed for petition for replacement even if the ODCOT is not actually lost and is

in the hands of the mortgagee. The court hearing the case does not acquire jurisdiction

However, even if the replacement copy of ODCOT issued by the court is void due to lack of

court jurisdiction, it is still considered as genuine copy

The replacement copy is legally void but as to form, it is considered genuine

It can be used in fraudulent transactions

Notice to OSG of petition for replacement is not required and not jurisdictional

Petition for amendment or alteration of certificates (108)

General rule: no erasure, amendment or alteration of certificate shall be made

Exceptions:

1. Registered interest whether vested, contingent, or expectant have been terminated

or ceased

2. Interest which have risen or created do not appear on the certificate

3. Error, omission or mistake that was made in entering certificate or memorandum

4. Name of any person on certificate has been changed

5. Registered owner is married or marriage terminated or where heirs or creditors are

affected

6. Corporation owning land has been dissolved

The amendment is limited in the sense that court has no jurisdiction to reopen judgment or

decree of registration

Ex: it cannot change description of the land

However, if Life Homes Realty vs. CA, the court allowed the correction of the technical

description because of the defects in the survey plan prepared for the ordinary land

registration proceedings

The technical description may be corrected after cadastral survey

Such amendment is allowed as it is a defect on the survey plan affecting the land

Actions done by court in pursuant to Sec. 108

1. May order entry or cancellation of new certificate of title depending on ground alleged in

petition for amendment of COT

2. May order entry or cancellation of memorandum upon a certificate

Ex: Servient estate acquired property of dominant estate, the easement can be cancelled

on the back of COT by way of petition of amendment

3. Grant any order or relief upon terms and conditions as the court may deem proper

Reconstitution of Loss or Destroyed OCOT (110)

This is not the certificate issued for the first time but the COT under the custody of the RD.

Thus the COT here can either be an OCT or TCT

Procedure of reconstitution:

1. Judicial – RA 26 or Sec 110 of PD 1529

2. Administrative – RA 6732

Reconstitution – restoration of instrument, OCOT. Restoration of an instrument which is

supposed to be loss or destroyed in original form or condition

Purpose of reconstitution: to reproduce lost or destroyed OCOT after proper proceedings in

the same form and condition before the loss or destruction

Administrative Reconstitution

RA 6732 was enacted due to the fire of the RD in Quezon City in 1988 where many OCOT

were burned

Administrative reconstitution is extra-judicial

No petition filed in court. The petition is filed in LRA

The following conditions must concur before there is administrative reconstitution:

1. Substantial loss or destruction of OCOT due to (1) fire, (2) flood, or other force majeure

2. Number of OCOT loss or damages would be at least 10% of total number of OCOT in

possession of RD

3. Number of OCOT lost or damaged shall not be less than 500 OCOT

RA 6732 was given retroactive effect for 15 years until 1974

Source of administrative reconstitution is limited to ODCOT or CDCOT

Judicial reconstitution

Procedure:

1. The court, after receipt of petition for reconstitution, shall set date of hearing

2. Publish notice of initial hearing twice in successive issue of the official gazette

No requirement of publication of newspaper

3. Notice of initial hearing must be posted in main building of provincial, city or

municipal hall where land is situated

4. Notice of initial hearing must also be sent by registered mail to every person named

in the notice (such as occupants, adjoining owners)

Source of judicial reconstitution

1. OCT:

a. ODCOT

b. CDCOT, or mortgagee’s or lesee’s

c. Certified copy of COT

d. Authenticated copy of decree of registration or patent

e. Document showing that the property is mortgaged, leased or encumbered and that

the original had been registered

f. Any other document, based on judgment of court, proper basis of reconstitution

2. TCT:

a. Same grounds with an addition of: deed of transfer showing that original had been

registered

Publication twice in successive in OG is deemed mandatory jurisdiction requirement

LRA has no jurisdiction to declare that COT is sham or to order cancellation of title in

administrative reconstitution

Why? Power is lodge to the courts

LRA administrator does not exercise original and exclusive jurisdiction involving ownership

and possession of land

If the RD cannot produce the COT, then the RD can held criminally liable for violating RA

7613, Code of conduct and ethical standards for government officials and employees

Aggrieved party can send a letter to the RD to produce the OCOT and failure to do so within

15 days, there can be a criminal case filed

That OCOT must be a part of the public records and open for inspection

Just like in Sec 109, if the OCOT is not actually lost but is misplaced, then courts do no

acquire jurisdiction in reconstitution case

Public Lands and Patens (Sec 103 and CA 141)

Types of Land Registration Proceedings: 1. Judicial

a. Judicial confirmation of incomplete or imperfect titles b. Voluntary/ordinary land registration c. Cadastral proceedings d. RA 8371 or the indigenous rights act

2. Administrative a. Patents

Whenever public land is alienated, granted or conveyed by the government to any person,

the same shall be brought under the operation of PD 1529

It shall be the duty of the official issuing the instrument of alienation, grant, patent or

conveyance, in behalf of the Government, to cause such instrument to be filed in RD

Upon presentation of such patent to the RD, a COT shall be issued by the RD

Since it is for the first time, what will be issued is the OCOT

Act of registration shall be the operative act that shall convey and affect the land insofar as

third persons are concerned

Requirements before the patent is registered

1. The land covered by the patent is an alienable and disposable public land

2. Maximum area is 12hc

3. Filipino citizenship

Under Constitution, private corporations no longer allowed to be grantees of public land

They can only lease up to 1000hc for 25yrs and renewable for 25yrs

Laws covering patents

1. CA 141

2. PD 27 (emancipation patents)

3. CARL

4. Homestead Act

Types of land patent

1. Homestead patent

2. Free patent

3. Sales patent

4. Emancipation patent

5. Special patents – granted to non-Christian

6. RA 10023 – Grant of land patent for residential purposes

Homestead patent

Grantee must comply with requirements of the law like residency and cultivation

requirement

Qualified homesteader after complying conditions will be issued a homestead patent

The said homestead patent shall be the basis of the issuance of OCOT when presented to the

RD and after payment of fees

Under Homestead Law, maximum area is 24hc, but under the constitution, it is only 12hc

Free patents

No longer effective as period for filing application for free patent is already ended

Free patent – when land possession can be traced to predecessors (Mathay vs. CA)

Requirements for free patent:

1. Natural born Filipino citizen

2. Not the owner of more than 12hc of land

3. Resided in the land for at least 30 years prior to effectivity of amendatory act RA

6940

Land covered in free patent must be:

1. Agricultural public lands subject to disposition

2. Applicant paid real estate taxes

3. Not occupied by third persons

Sales Patent (24-28 of CA 141)

Sales patent – issued by the government covering a public agricultural land which is

alienable and disposable to the highest bidder at a public auction

Qualifications: Filipino citizen of legal age

Even if not of legal age, as long as head of the family

There shall be bidding in public auction

The highest bidder shall be issued the sales patent and shall be declared purchaser

Another section in CA 141 where public land may also be granted through sales patent

Chapter VIII, Sec 58-68 – Concessions of Public Land of CA 141

These land must be agricultural lands suitable to residential, commercial or industrial

purposes

Same qualifications and limitations shall apply

Effect of registration of patents

Without registration of patent, it shall only be binding between the government and the

grantee

It shall not be indefeasible and the land can be acquired by adverse possession or

prescription

The OCOT issued pursuant to the land patent partakes nature of COT issued in judicial

proceedings

Land covered must be a part of public domain which is alienable and disposable

If the land is already private, then patent issued is already null and void also

The Director of the LMB shall be the one issuing the patent in favor of the applicant

The OCOT issued, 1 year period after the issuance of the patent, shall become indefeasible,

incontrovertible and imprescriptible

This is in same application such as in ordinary land registration proceedings wherein 1 year

after issuance of decree of registration, the title shall now be indefeasible, incontrovertible

and imprescriptible

Restrictions on land patents

In homestead patent, the homesteader cannot sell or mortgage the land under the patent

within 5 years

If he alienates or encumbers within said period, the transaction is null and void as it is in

violation of the restriction

Purpose of the law – keep the property in the hands of the landless

The prohibition to alienate and encumber is mandatory and any land gained in violation of

this cannot be acquired by prescription or laches

Transferee in violation of homestead law cannot gain land by prescription even if 30 years

Prohibition covers conveyance in favor of children of descendants

If the homesteader alienates after the prohibition period of 5 years, he shall be granted the

right of redemption for 4 years from the date of alienation

If he mortgages the property and it is closed extra-judicially, then there is one year

redemption period

So therefore, if the homestead land is foreclosed in the mortgage, the homesteader has 1

year to redeem the property based on the Mortgage Law and afterwards, he has an

additional 5 years to redeem it again based on the Homestead Law

Effect of violation of restrictions under Homestead Law

1. Alienation or encumbrance is null and void

2. Annuls or cancels the grant title, patent or permit originally issued

3. Cause for reversion of the property and its improvements to the State

Remedies against illegal or improper issuance of land patents

1. Reversion suit - instituted by the government

2. Cancellation of title – filed by the private land owner covered by the patent (direct action)

3. Action for reconveyance – remedy in case of breach of constructive or implied trust

Reversion suit – not self-executing and is intended to have land reverted back to the State

Reversion suits can be done when:

1. Violation of patent conditions

2. Land granted is non-registrable

3. Failure of grantee to comply with requirements of the law

4. Expanded area than original grant

5. Violation of the Constitution

Defenses not available in reversion:

1. Indefeasibility of title

2. Prescription, laches and estoppel