EXTRINSIC FRAUD - Connotes any

fraudulent scheme executed by a

Sec. 32. Review of decree of registration;
prevailing litigant outside the trial of a
Innocent purchaser for value
case against the defeated party, or his
The decree of registration shall not be
agents, attorneys or witnesses, whereby
reopened or revised by reason of absence,
said defeated party is prevented from
minority, or other disability of any person
presenting fully and fairly his side of the
adversely, affected thereby nor by any
case.
proceeding in any court for reversing
INTRINSIC FRAUD - Acts of a party in a
judgments, subject, however, to the right of
litigation during the trial, such as the use
any person, including the government and the
of forged instruments or perjured
branches thereof, deprived of land or any
testimony, which did not affect the
estate or interest therein by such adjudication
presentation of the case, but did prevent
or confirmation of title obtained by actual
a fair and just determination of the case
fraud, to file in the proper Court of First
Instance a petition for reopening and review of May a petition for review of a decree under
Section 38 of Act 496 (now Section 32 of PD
the decree of registration, but in no case shall
such petition be entertained by the court where 1529) be filed by an oppositor who has
abandoned his opposition in a land registration
an innocent purchaser for value has acquired
case after a decision has been rendered and a
the land or an interest therein, whose rights
decree of registration issued?
may be prejudiced. Whenever the phrase
NO. The person(s) contemplated under
innocent purchaser for value or an equivalent
phrase occurs in this Decree, it shall be
Section 38 of Act 496 (now Sec 32 of PD
deemed to include an innocent lessee,
1529), to be entitled to a review of a
mortgagee, or other encumbrancer for value.
decree of registration, are those who
Upon the expiration of said period of one year,
were fraudulently deprived of their
the decree of registration and the certificate of
opportunity to be heard in the original
title issued shall become incontrovertible. Any
registration case.
person aggrieved by such decree of registration When Property is Transferred to an
in any case may pursue his remedy by action
Innocent Purchaser for Value
for damages against the applicant or any other INNOCENT PURCHASER FOR VALUE one who
persons responsible for the fraud.
acquired the property for a valuable
Grounds for Review
consideration not knowing that the title of the
This remedy is available to an aggrieved vendor or grantor was defective or void [Rivera
vs Moran (GR No. L-24568 March 2, 1926)]. It
party within ONE YEAR after the date of
includes innocent lessee, mortgagee or other
entry of the decree of registration
Applicant must have a estate or interest encumbrancer for value.
Where the certificate of registration was valid
in the land
and the land in question was properly brought
No innocent purchaser for value has
under the operation of the Torrens system, the
acquired an interest therein
concept of innocent purchaser for value
There must be an ACTUAL FRAUD or
properly comes into play. But where the land in
EXTRINSIC FRAUD
question was never brought under the
ACTUAL FRAUD intentional omission of a fact
operation of the Torrens system , the concept of
required by law to be stated in the application
innocent purchaser for value cannot come into
or a willful statement of a claim against the
play.
truth.
It is well-settled that where innocent third
persons, relying on the correctness of the
The purpose of the law in giving aggrieved
certificate of title thus issued, acquire rights
parties, deprived of land or any interest,
over the property, the court cannot disregard
through fraud in the registration, the
such rights and order the cancellation of the
opportunity to review the decree is to ensure
fair and honest dealing in the registration of the certificate. [Davao Grains, Inc. vs Intermediate
Appellate Court (G.R. No. 78209 March 31,
land
Extrinsic or Collateral Fraud Distinguished 1989)]
Everyone dealing with titled property whould
from Intrinsic Fraud
have to check on the validity or invalidity of the
original certificate of title would wreak havoc

REVIEW OF DECREE OF REGISTRATION

and impair public confidence on the Torrens

system. [Santos vs Court of Appeals (G.R. No.
90380 September 13, 1990)]
Conclusiveness of the Decree of
Registration
A land registration proceeding is in rem,
therefore, the registration is binding upon and
conclusive against all persons including the
government and its branches [Sorongon et al.
vs Makalintal et al. (45 OG 9 September 1949)]
Is it necessary that the Order of General
Default be first lifted before a Petition to Review
the Decree of Registration may be entertained?
NO. The law neither requires the lifting of
the decree of general default issued in
the case nor the attaching of any
affidavit of merit to the petition for
review. As long as there has been fraud
in obtaining the decree of registration,
by reason of which another person has
been deprived of land or any interest
therein and such person filed his petition
for review within one year after the entry
of the decree, then the decree may be
opened
Effect of the Expiration of the Period for
Review
Upon the expiration of the one-year
period, the decree of registration and the
certificate of title issued shall become
incontrovertible.
After one year from the date of the
degree, the sole remedy of the
landowner whose property has been
wrongfully or erroneously registered in
another's name is not to set aside the
decree, but, to bring an ordinary action
in the ordinary court of justice for
reconveyance or, if the property has
passed into the hands of an innocent
purchaser for value, for damages.
[Gonzales vs Intermediate Appellate
Court (GR No. 69622, January 29, 1988)]
Collateral Attack on the Decree and Title
not allowed
Attack must be direct and not by a
collateral proceeding. The validity of the
certificate of title in this regard can be
threshed out only in an action expressly
filed for the purpose. [Ybaez vs
Intermediate Appellate Court (G.R. No. L68291, March 6, 1991)
Made through an action or proceeding
the main object of which is to annul, set
aside, or enjoin the enforcement of such

judgment, if not yet carried into effect ;

or, if the property has been disposed of,
the aggrieved party may sue for
recovery

Reconveyance of property

It is the sole remedy of the land owner

whose property has been wrongfully or
erroneously registered in another's name
is, after one year from the date of the
decree, not to set aside the decree, as
was done in the instant case, but,
respecting the decree as incontrovertible
and no longer open to review, to bring an
ordinary action in the ordinary court of
justice for reconveyance or, if the
property has passed into the hands of an
innocent purchaser for value, for
damages. [Director of Lands et al. vs
Register of Deeds of Rizal et al. (G.R. No.
L-4463, March 24, 1953)
The term reconvey means to convey
back to former place, or to transfer back
to former owner, as an estate, and
reconveyance being a transfer of realty
back to the original or former grantor.
(Lacorte vs. CA, 286 SCRA 24)
Requisites for Reconveyance
To warrant a reconveyance of the land,
the following requisites must concur:
(1) the action must be brought in the
name of a person claiming ownership or
dominical right over the land registered
in the name of the defendant;
(2) the registration of the land in the
name of the defendant was procured
through fraud or other illegal means;
(3) the property has not yet passed to an
innocent purchaser for value; and
(4) the action is filed after the certificate
of title had already become final and
incontrovertible [New Regent Sources,
Inc. v. Tanjuatco, (GR No. 168800, April
16, 2009)]
Nature of Action for Reconveyance
Action for reconveyance is an action in
personam, judgment therein is binding
only upon the parties properly impleaded
and duly heard or given an opportunity
to be heard. [ Ching vs Court of Appeals
(G.R. No. L-59731, January 11, 1990)]
When may an Action for Reconveyance be
Filed
Action based on fraud - four years
(Article 1391, New Civil Code)

 Action based on implied trust - ten years

(Article 1144, New Civil Code)
Action based on a void contract
imprescriptible (Article 1410, New Civil
Code)

A registered owner may be barred from

recovering possession of the property by virtue
of laches.
The person who was deprived of his property
by fraud, whether actual or constructive, and
was not at fault, may file such personal action
for reconveyance