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WEEK 10 VOLUNTARY DEALINGS CHAPTER V.

SUBSEQUENT REGISTRATION VOLUNTARY DEALINGS Notes FORMAL REQUIREMENTS OF CONTRACTS INVOLVING REAL PROPERTY a. consent of contracting parties b. object certain which is the subject matter of the contract c. cause of the obligation which is established article 1356 contracts shall be obligatory in whatever form they may have been entered into exception Article 1358 the following must appear in a public document 1. creation, transmission, modification or extinguishment of real rights over immovable property 2. cession, repudiation or renunciation of hereditary rights or those of the conjugal partnership of gains 3. power to administer property 4. the cession of acts or rights proceeding from an act appearing in a public document All contracts where the amount involved exceeds 500 pesos must be in writing Contract of sale title passes 1. upon delivery of the thing sold Recovery of ownership 2. until and unless the contract is Rescinded contract of sell

brevi manu), seller remains in possession of property in a different capacity ( tradition constitutum possessorium ) REGISTRATION OF DOCUMENT MINISTERIAL ON THE PART OF THE REGISTER OF DEEDS AS BETWEEN THE PARTIES, REGISTARTION IS NOT ESSENTIAL FOR VALIDITY OF SALE - For actual notice is equivalent to registration - - the purpose of registration is merely to notify the interest of strangers to a given transaction, who may be ignorant thereof, and non registration of the deed evidencing said transaction does not relieve the parties thereto of their obligation thereunder PAYMENT OF TAXES PREREQUISITE TO REGISTRATION RA NO. 456 -prohibits the registrations of documents affecting real property which is delinquent in the payment of taxes REGISTRATION IS CONSTRUCTIVE NOTICE TO THIRD PERSON -it is the act of registration which creates the constructive notice to the whole world and binds third person. Purchaser is not required to explore further than what title indicates for hidden defects Exception - When the party concerned has actual knowledge of facts and circumstances that would impel a reasonably cautious man to make inquiry Rule with respect to banks - Must exercise more care and prudence in dealing with registered land - Because their business is one affected with public interest - Before approving loan must send representatives to the land offered to investigate who are the true owners Issuance of TCT without production of owners duplicate title unwarranted Contents of instrument presented fro registration a. Full name b. Nationality c. Status d. Residence Primary entry book or day book Record of all instrument including copies of writs and processes affecting registered land which are entered by the RD

1. Upon full payment of purchase price

2. Title remain in seller and in case of nonpayment it is not a breach but prevents the obligation of vendor to convey title

DELIVERY AS A MODE OF TRANSMISSION, REAL OR CONSTRUCTIVE Sale by itself does not transfer ownership; the most that sale does is to create the obligation to transfer ownership. It is tradition or delivery, as a consequence of sale, that actually transfers ownership. Two principal modes of delivery 1. actual delivery placing the thing sold in the control and possession of vendee 2. legal or constructive example; execution of public instrument, delivery of the keys, mere consent or agreement if the movable cannot be yet be transferred ( tradition longa manu), the buyer already had the possession even before the sale ( tradition

Deeds entered in the day book considered registered from the moment they are noted Procedure in registering deed of conveyance - Party shall execute the proper deed of conveyance in proper form and present together with owners duplicate to the RD - The RD shall enter in the registration book and prepare a new certificate Carrying over of encumbrances in the new certificate Innocent Purchaser for Value 1. Chu, Sr. et. Al vs Benelda Estate Devt . Corp. March 1, 2001 Remedial Law; Cause of action defined. A cause of action is defined as an act or omission by which a party violates a right of another. Land Titles; a person dealing with registered land may safely rely on the correctness of the certificate of title issued therefor and the law will in no way oblige him to go behind the certificate to determine the condition of the property Innocent Purchaser for value defined. One who buys the property of another, without notice that some other person has right or interest in such property and pays a full price for the same, at the time such property or before he has notice of the claims or interest of some other person in the property. A title procured through fraud and misrepresentation can still be the source of a completely legal and valid title if the same is in hands of an innocent purchaser for value. 2. Insurance Services & Comml Traders vs Ca Oct 2, 2000 Land Titles; Sales, Words and Phrases; An innocent Purchaser for value is one who purchase a titled land by virtue of deed executed by the registered owner himself, not by a forged deed. Root of Valid Title 3. Lim vs Chuatoco 453 scra 308 Land Titles; Land registration; certificate is not conclusive evidence of title, registration does not vest title, it

is merely evidence of such title over a particular property. Forged or fraudulent document may become the root of a valid title, if the property has already been transferred from the name of the owner to that of the forger. Section 53 Pd 1529 4. Heirs of Manlapat vs ca 459 scra 412 Land Titles; Contracts; Where a party has knowledge of a prior existing interest which is unregistered at the time he acquired a right to the same land, his knowledge of that prior unregistered interest has the effect of registration as to him. Section 53 of PD 1529 has never been clearer that as long as the owners duplicate certificate is presented to the Register of Deeds together with the instrument of conveyance, such presentation serves as conclusive authority to the Rd to issue a transfer certificate or to make a memorandum of registration in accordance with the instrument. Conjugal Property 5. Aggabao vs Parulan September 1, 2010 Civil Law; Family Code; Conjugal Property; any alienation or encumbrance of conjugal property made during the effectivity of family Code is governed by Article 124 of the family Code The power of administration does not include acts of disposition or encumbrance, which are acts of strict ownership. In the absence of other spouses consent, the transaction should be construed as a continuing offer or perfected as a binding contract upon the acceptance by the other spouse or upon authorization by the court before the offer is withdrawn by either or both offerors Article 124 of the Family Code categorically requires the consent of both spouses before the conjugal property may be disposed by sale, mortgage or other modes of disposition 6. Abalos vs Macatangay sept 30, 2004

Conjugal Partnership; Under the Civil Code, the husband, as the administrator of the conjugal partnership cannot validly alienate or encumber any real property of the conjugal partnership without wifes consent and vice versa. The right of the husband or wife to one-half of the conjugal assets does not vest until the dissolution of the marriage, when it is finally determined that, after settlement of conjugal obligations. There are assets left which can be divided between the spouses or their respective heirs. The sale of the husband of property belonging to the conjugal partnership without the consent of the wife when there is no showing that the latter is incapacitated is void ab initio because it is in contravention of the mandatory requirement of article 166 of the Civil Code. As an exception, the husband may dispose of conjugal property without the wifes consent if such sale is necessary to answer for conjugal liabilities mentioned in article 161 and 162 of the Civil Code. WEEK 11 MORTGAGES AND LEASES Notes: Essence of Mortgage The property has been identified or set apart from from the mass of the property of the debtor- mortgagor as security for the payment of money or fulfillment of obligation to answer the amount of indebtedness, in case od default of payment. Object of mortgage 1. Immovables 2. Alienable real rights in accordance with the laws imposed upon immovables Requisites of Mortgage 1. Constituted to secure full payment of principal obligation 2. Pledgor or mortgagor is the absolute owner 3. Have the free disposal or authority disposed the property Characterisctic of Mortgage Real right binds purchaser who knows of it existence Accessory contract principal obligation is void the mortgage is also void Indivisible

Inseparable adheres to the property regardless of who its owner may subsequently be. Real property mortgage on real property is by itself real property also Limitation on ownership Equitable Mortgage Article 1602 a. When the price of the sale is is unusually inadequate b. When the vendor remains in possession as lessee or otherwise c. After expiration of right of repurchase another instrument is executed to extend the right d. When the purchaser retains for himself a part of the purchgase price e. When the vendor binds himself to pay the taxes on the thing sold f. Where it may fairly be inferred that the real intention is to secure the payment of debt or performance of any other obligation. Unrecorded mortgage is valid and binding upon the parties Rights of innocent mortgagee for value Must be respected and protected, even if the mortgagor obtained his title through fraud. The remedy is to bring action against those who caused fraud , and if the latter is insolvent against the Treasurer of the Philippines for recovery of damages against the Assurance Fund. Effect of lis pendens Announcement to the whole world that a particular property is in litigation, and serves as a warning that one who acquires an interest over the said property does so at his own risk, so that he gambles on the result of the litigation over said property Effect of forged deed Where the mortgage is admittedly a forgery and a registered owner has not been shown to have been negligent or in connivance with the forger, the mortgage cannot be enforced against the owner Unrecorded sale of a prior date vs Recorded mortgage on a later date Former is preferred to the latter for the reason that if the original owner had parted with his ownership of the thing sold then he no longer had the ownership and free disposal of the thing so as to be able to mortgage it again Rights of the second mortgagee To exercise right of repurchase when the first mortgagee foreclose the property and to

apply to the payment of its credit the excess of the proceeds of the sale after the payment of the credit of the first mortgagee If the credit of the first mortgagee absorbs the entire proceeds of sale the mortgage in favor of the 2nd mortgagee is extinguished because it cannot be enforced beyond the total value of property. Effect of Mortgage if Torrens Title is nullified The mortgage will not be cancelled where it shown that the mortgagee relied on the validity of title of the mortgagor and therefore acted in good faith Mortgage discharged only upon full payment of indebtedness A mortgage given to secure advancements is a continuing security and is not discharged by repayment of the amount named in the mortgage. Until the amount of the advancement are paid. Concept of Foreclosure Process by which mortgagee acquires an absolute title to the property of which he had previously been only a conditional owner or a mere lien or encumbrance Remedies in case of default 1. Foreclose the mortgage OR 2. File an ordinary action to collect debt Prescription - within ten years from the time the right of action accrues, or default in payment Options of secured Creditor in case of death of the debtor 1. To waive the mortgage and claim the entire debt to the estate of debtor 2. To foreclose the mortgage judicially and prove any deficiency as an ordinary claim 3. Rely on mortgage exclusively without right to file claim for any deficiency Procedure in case of judicial foreclosure of Mortgage 1. Certified copy of final order of the court confirming the sale should be filed and registered in RD 2. If the mortgagor fails to redeem the property his certificate of t title shall be cancelled and a new certificate shall be issued to the purchaser 3. However if the property is redeemed, the mortgagor certificate of title shall stand uncancelled but the certificate of sale , the order confirming it and the deed of redemption shall be filed in RD

and a brief memorandum noted on the mortgagors title 4. If no redemption is made, the final deed of sale executed by the sheriff shall be registered in RD and the mortgagors title shall be cancelled and a new title issued to purchaser Basic Rules on Judicial Foreclosure 1. It is the confirmation by the court of the auction sale that would divest the mortgagors of their rights to the mortgaged lot and that would vest such right in the purchaser 2. The clause subject to such right of redemption as may be allowed by law has no application to a case where the mortgagor did not exercise his right of redemption under Sec 78 of the General banking law 3. A foreclosure sale is not complete until confirmed 4. In order that a foreclosure sale may be validly confirmed by the court, it is necessary that a hearing be given the interested parties 5. The acceptance of bid at the foreclosure sale confers no title on purchaser until confirmed by court 6. The confirmation retroacts to the date of sale 7. An order of confirmation void for lack of notice and hearing may be set aside anytime 8. After confirmation of the sale, made after hearing and with due notice to the mortgagor, the latter cannot redeem anymore unless the mortgagee is a banking institution 9. It is after the confirmation that the mortgagor loses all interest in the mortgaged property Equity of Redemption and Right of Redemption distinguished Equity of Redemption right of the mortgagor to redeem the mortgaged property after his default in payment but before the confirmation of sale Right of Redemption right of mortgagor to repurchase the property even after the confirmation of sale , in cases of foreclosure of banks, within one year from registration of sale Time and Manner of redemption The redemptioner may redeem the property at anytime within 1 year from date of registration of certificate of sale by: 1. Paying the purchaser the amount of his purchase 2. With 1% per month interest up to time of redemption together with amount of

any assessment or taxes which the purchaser may have paid after purchase Procedure in case of Judicial Foreclosure 1. The sheriff certificate sale shall be filed with RD and a brief memorandum thereof entered on the mortgagors certificate of title 2. In case of redemption by the mortgagor, the mortgagor certificate of title shall stand uncancelled but the certificate of sale , the order confirming it and the deed of redemption shall be filed in RD and a brief memorandum noted on the mortgagors title 3. If no redemption is made, the final deed of sale executed or his certificate of non-redemption shall be filed with the RD who shall thereupon cancel the mortgagors certificate of title and issue a new title Governing Law Act 3135 as amended by Act No. 4118 - Extrajudicial foreclosure sales are proper only when so provided in the REM contract. - The property sold may be redeemed within 1 year from and after the date of sale The General Banking Act - Limits the amount of loan that may be given by banks and banking or credit institution to not more than 70% of the appraised value of the property given as security Personal Notice Not Necessary -posting of notices of sale in at least 3 public places of the municipality where the property is situated AND - Publication in a newspaper of general circulation Effect of Foreclosure of a prior mortgage on subordinate liens A subsequent lien holder acquires only the right of redemption vested in the mortgagor and his rights are strictly subordinate to the superior lien of anterior mortgage -Second mortgagee is limited to the right to redeem by paying off the debt secured by the first mortgage Writ of possession; issuance ministerial An order whereby the sheriff is commanded to place a person in possession of a personal or real property - Maybe issued either: a. Within the one year redemption period upon filing a bond equivalent to 12 months used of property b. After the one year redemption period without need of a bond - Not later than 30 days after the purchaser was given possession

debtor may petition the sale to set aside or the writ be cancelled Cases where writ of possession may be issued a. Land registration proceeding b. Extrajudicial foreclosure of realty mortgage except a third party is in possession and who is claiming adverse right c. In case of extrajudicial foreclosure provided the mortgagor is in possession of the property and no 3rd person intervened d. In execution sales - Writ should not issue if the validity of the levy and sale is in issue in another case Power of Attorney; Trust A special power of attorney refers to clear mandate specifically authorizing the performance of an act, and must therefore be distinguished from an agency couched in general terms - The authority of the agent must be in writing - A special power to sell excludes the power to mortgage and vise versa - A SPA is necessary to lease any real property to another person for more than one year - It is a continuing one and absent avaid revocation duly furnished to mortgagee the same continue with force and effects - Shall be registered in RD Remedy of mortgagee in case of mortgagors death (Rules of Court) 1. To waive the mortgage and claim the entire debt to the estate of debtor 2. To foreclose the mortgage judicially and prove any deficiency as an ordinary claim 3. Rely on mortgage exclusively without right to file claim for any deficiency Trust defined Fiduciary relationship with respect to property which involves the existence of equitable duties imposed upon the holder of the title of property to deal with it for the benefit of another Express Trust - Created by the parties Implied trust - Being by operation of law - Can be contrastive or resulting trust Constructive Trust - Imposed where a person holding a title to a property is subject to an equitable duty to convey it to another on the ground that he would unjustly enriched himself if he will be permitted to retain it

Duty to convey arises because it was acquired through fraud, duress, undue influence, mistake

Resulting Trust - Arises where a person makes or causes to be made a disposition of property under circumstances which raise an inference that he does not intend that the person taking or holding the property should have beneficial interest in the property A party acquiring property by mistake considered a trustee of an implied trust No trust can result in favor of a party who is guilty of fraud or violates public policy No particular form required Not necessary that there is a document expressly provides trust it being sufficient that a trust is clearly intended Prescriptive period of express and resulting implied trust 10 years from the repudiation of trust Requisites a. Trustee has performed unequivocal acts of repudiation amounting to an ouster of beneficiary b. Such positives acts of repudiation have been made known to beneficiary c. The evidence thereon is clear and conclusive In implied Trust laches constitute the bar to an action to enforce the trust Elements of Laches 1. Conduct on the part of defendants, or of one under whom he claims 2. Delay in asserting rights though known to complainant the acts of of defendant 3. Lack of knowledge or notice on the part of defendant that the complainant would assert the right on which he bases his suit 4. Injury or prejudice to the defendant in the event relief is accorded to the complainant c. Act 3135 d. Rul3 68, Revised Rules of Court REAL ESTATE MORTGAGE 1. RB of Oroquieta vs CA November 10 1980 Mortgages; Where a bank sought a judicial foreclosure rather than foreclosure of mortgage under the General banking Act, confirmation by the Court of the auction sale under Rule 68 is necessary.

A foreclosure sale is not complete until it is confirmed, and before said confirmation, the court retains control of the proceedings by exercising a sound discretion in regard to it, either granting or withholding the confirmation as the rights and interst of the parties and the ends o f justice nay require. In judicial confirmation of auction sale, a hearing with notice to mortgaged debtor, mortgaged creditor, and purchaser at the auction sale is indispensable. Present and future loans 2. Quintanilla vs Ca 279 scra 397 Contracts; loans; mortgages; foreclosure of mortgage; an action to foreclose mortgage is limited to the amount mentioned in the mortgaged, but where on the four corners of the mortgage contracts the intent of the contracting parties is manifest that the mortgage property shall also answer for future loans or advancements, then the same is valid and binding between the parties. Words and Phrases; the phrase as well as those that the Mortgagee may extend to mortgagor clearly means that the mortgage is not limited to just fixed amount but also covers other credit accommodations in excess thereof. WEEK 12 Tenancy relationship 1. Victorio vs Ca March 28 2001 Agrarian relations; Tenancy; Requisites a. The parties are the landowner and the tenant b. The subject is agricultural land c. There is consent among the parties d. The purpose is agricultural production e. There is personal cultivation f. There is sharing of harvest All these requisites must concur in order to create tenancy relationships between the parties Alien 2. Moreno-Lentfer vs Wolf 441 scra 584 Constitutional law; Land titles; Aliens; the Constitutional prohibition against aliens owning land in the Philippines has no actual bearing in a case which merey involves a lease of land where the foreigners house stands.

Implied Trust; date of issuance of certificate of Title 3. Alfredo vs Borras 404 scra 145 Civil Procedure; Actions; Reconveyance; Prescription; An action for reconveyance based on an implied trust prescribes in ten years. The ten year prescription period applies only if there is an actual need to recover the property as when the plaintiff is not in possession of the property. If the plaintiff, as the real owner is in possession of the property, the prescriptive period to recover title and possession of the property does not run against him. It is imprescriptible. The prescriptive period is reckoned from the date of the issuance of the certificate of title Land Registration; torrens Title; Indefeasibilty; Fraud; the principle of indefeasibilty of title does not apply where fraud attended the issuance of title. It does not extend to transferee who takes the certificate of title with notice of flaw in his title. Implied Trust; Actual delivery 4. GSIS vs Santiago 414 scra 563 Civil Law; Reconveyance; Prescription; An action for reconveyance of real property based on fraud prescribes in 4 years from the discovery of fraud, such discovery is deemed to have taken place upon the issuance of certificate of title over the property. An action for reconveyance based on implied trust prescribes in 10 years from the alleged fraudulent registration on date of issuance of certificate of title over the property. Court reckoned the prescriptive period for filing of the action for reconveyance based on implied trust from the actual discovery of fraud. Involuntary dealings Notes: Nature of attachment Attachment is the legal process of seizing anothers property in accordance with a writ or judicial order for the purpose of securing satisfaction of a judgment yet to be rendered - Shall be filed and registered in RD and shall contain a reference to the number of COT to be affected the registered owner and the description of the land and interest therein Grounds upon which attachment may issue (Rule 57 of the Rules of Court)

a. In an action to recover possession of property unjustly taken b. In an action against a party who has been guilty of fraud in contracting the debt c. Action against a party who has disposed, removed with intent to defraud his creditors - Preliminary attachment may validly applied for and granted ex parte before the defendant is summoned How Attachment Effected An attachment levied on real estate not duly recorded in the RD is not an encumbrance on the attached property, nor can such attachment unrecorded in the registry, serve as a ground for decreeing the annulment of the sale of property, at the request of another creditor Knowledge of a prior unregistered interest is equivalent to registration Discharge of attachment Upon giving a counterbond Adverse Claim; Purpose - To apprise third person that there is controversy over the ownership of the land and to preserve and protect the right of the adverse claimant during the pendency of the controversy - Registered by filing a sworn statement in the RD setting forth the basis of the claimed right together with other pertinent data - In order to be avail of it must be shown that there is no other provision in the law for the registration of the claimants alleged right Requisites of adverse Claim 1. The adverse claimant must state the ff in writing: a. His alleged right or interest b. How and under whom such alleged right is acquired c. The description of the land d. The number of COT 2. The statement must be signed and sworn before a notary public or other officer authorized to administer oath 3. The claimant should state his residence or the place which all notices should be served upon him Adverse Claim not ipso facto cancelled after 30 days; hearing necessary Foreclosure sale retroacts to registration of mortgage Dissolution of attachments or liens and registration thereof The certificate or instrument shall be registered to give effect thereof

If dissolved by order of court the certificate of clerk of court as to the entry of such order shall also be registered Tax delinquency sale requires personal notice to tax payer - Because sale of private land for nonpayment of taxes being in personam- it is essential that there be actual notice to tax payer Nature and purpose of lis pendens - Refers to the jurisdiction power or control which a court acquires over a property involved in a suit, pending the continuance of the action, and until final judgment - Purpose 1. To protect the right of the property causing the registration 2. To advise 3rd person who purchase the property that he do so at their peril and subject to the result of the litigation Notice of lis pendens, when appropriate; 1. Action to recover possession of real estate 2. Action to quiet title 3. Action to remove clouds thereon 4. Action for partition 5. Any other proceedings of any kind in court directly affecting the title to the land when not proper 1. Preliminary attachment 2. Proceeding for the probate of will 3. Levies on execution 4. Proceedings for administration of estate of deceased persons 5. Proceedings which the only object is the recovery of money judgment Contents of Notice of Lis pendens a. Statement of the institution of action b. Court where the same is pending c. Date of its institution d. Reference to the number of COT e. Adequate description of the land and registered owner Cancellation of Lis pendens a. Upon order of the court b. Upon action of the Rd at the instance of the party who caused the registration 5. Republic vs Saludares When writ of attachment has been levied on real property or any interest therein belonging to the judgment debtor, the levy creates a lien which nothing can destroy but its dissolution, a rule likewise applicable to a writ of sequestration. By an order of attachment the sheriff seizes property of defendant in a civil suit so that it

may stand as security for the satisfaction of any judgment that may be obtained, and not disposed of, dissipated, or lost intentionally or otherwise pending action. WEEK 13 Chapter VI Registration of Judgments Notes: Registration of judgment Only portion of the land described in COT is affected by judgment the certificate of clerk of court shall contain a description of the portion involved Partition generally - Separation, division and assignment of the thing held in common among those to whom it may belong - Every co heir may demand partition anytime unless the testator forbids its partition which shall not exceed 20 years as provided in article 494 - Should a thing be indivisible it may be adjudicated to one heir provided he shall pay the others the excess in cash - Title covers one piece of land which have been divide between 2 or more heir- the title shall be delivered to one having the largest interest - If the interest is the same- the oldest shall have the title - If the parties unable to agree upon partition the court shall by order appoint not more than 3 competent and disinterested person as commissioners to make the partition Judicial partition - Setting forth in the complaint the nature and extent of his title and an adequate description of the real estate of which partition is demanded and joining as defendants all other persons interested in the properties - If the trial court finds that the plaintiff has right thereto he shall order the partition - Copy of such final judgment certified by the clerk of court shall be register with the proper RD Extrajudicial Partition between heirs - May divide the estate among themselves as they see fit without securing letters of administration by means of public instrument filed in Rd - If sole heir- adjudicate to himself the entire estate by means of affidavit filed in RD - In both instances they should file bond in an amount equivalent to the value of the personal property involved as certified to under oath by parties and conditioned upon the payment of any

just claim that may be filed under Sec 4 Rule 74 - Presumption that deceased left no creditor if no creditor files a petition for letters of administration within 2 years after the death of decedent Statute of Frauds inapplicable in partition Partition is not exactly a conveyance of property for the reason that it does not involved transfer of property from one to the other but rather confirmation of title or right of property by heir Action for Partition imprescriptible; Exception - When one of the co owner has possessed the property as exclusive owner for a period sufficient to acquire it by prescription Stages in judicial partition 1. Determination of whether or not co ownership in fact exist and a partition is proper 2. When the parties unable to agree upon the partition ordered by the court appointment of 3 commissioners Partition of Land subject of Mortgage Carry over and annotate such encumbrance on the COT that may be issued Insolvency Proceedign: in rem Preference of Credits Not limited to insolvent Debtors - 2 or more credits with respect to the same real property satisfied pro rata - Mortgages credits in order to be given preference shall be recorded in RD Notice of insolvency; powers of assignee It shall be the duty of the officer serving the notice of the institution of such proceedings to file a copy thereof with the office of the RD - Assignee appointed by court entitled to the entry of new certificate Eminent Domain, generally Inherent power of the state that enables it to forcibly acquire private lands intended for public use upon payment of just compensation - It is only where the owner is unwilling to sell the property that the power of eminent domain come into play Basic requirements 1. Public use 2. Just compensation Requirements 1. The expropriator must enter a private property 2. Entry must be for more than momentary period 3. The entry must be under legal authority 4. The property must be devoted for public use

5. The utilization must be in a such a way to oust the owner and deprive him of the beneficial enjoyment of property The expropriation of LGU must be through an ordinance not mere resolution Compensation in agrarian reform Cases (Small Landowners of the Phils case) 1. Cash payment 2. Shares of stocks 3. Tax credits 4. LBP bonds When to determine value of Compensation The price at the time the property was taken and appropriated by the government - When the taking of the property takes place subsequent to the filing of complaint for eminent domain should be determined at the time of filing of complaint Prescriptive Period to annul deed of extrajudicial partition 4 years from the registration of deed of extrajudicial settlement Letters testamentary and administration, to whom issued No person is competent to serve as executor or administrator who: a. Is a minor b. Not resident of the Phils c. Is in the opinion of the court unfit to execute the trust by reason of drunkenness, improvidence etc. If no executor is named in the will administration shall be granted to the: a. Surviving husband or wife or next of kin b. If (a) neglects for 30 days after the death of the person to apply for administration it may be granted to one or more principal creditors, if competent and willing to serve c. No (b) to such other person the court may select Filling of letters of administration and will Before the executor may deal with the land he shall file with RD a certified copy of his letters of administration and thereupon the RD shall enter upon the certificate a memorandum thereof Dealings by the administrator subject by the approval by the Court Regulations for Granting Authority to sell, mortgage or encumbrance estate 1. The executor shall file a written petition setting forth: a. Debts due b. Expenses of administration c. The value of personal estate -

d. The situation of the estate to be sold, mortgage or encumbered 2. The court shall thereupon fix the time and place for hearing such petition giving notice to interested persons or by publication 3. If the court requires it, the executor shall give an additional bond conditioned that he will account the proceeds of the transaction 4. If there is compliance with the requirements the court may authorixe the execiutor to sel or mortgage the property 5. If the estate is to be sold in auction the notice of hearing shall be governed by the rovisions of notice of execution sale 6. The order of the court shall be recorded in Rd Lis Pendens 1. Po lam vs Ca December 6 2000 Chapter VII Assurance fund Notes: Claims against assurance Fund; Requisites a. That the person sustain loss or damage or is deprived of any estate or interest in land b. On account of bringing the land under the operations of Torrens System arising after original registration c. Through fraud, error, omission or misdescription in the COT d. Without negligence on his part e. Is barred or precluded from bringing action for recovery of such land or estate or interest therein Contribution to Assurance Fund of 1% of the assessed value of the real estate on the basis of last assessment for taxation purposes shall be paid to RD upon entry of COT, original registration of COT and subsequent transfer - If the property is not yet been assessed for taxation purposes the value shall be determined by sworn declaration of 2 disinterested person Custody and Investment of Fund All money received by Rd shall be paid to national Treasurer Against whom claim for damages may be filed a. If the action is brought for recovery of loss or damage caused by the court personnel or RD shall be brought against the RD and national Treasurer b. Action caused by other person against the RD, National treasurer and such person as co defendant - It shall be the duty of the Solicitor General to represent the Government

in all suits for recovery of damages against the Assurance Fund How Judgment is satisfied a. Execution shall first issue against the person who have been joined as co defendant, if unsatisfied then it would be against the Assurance Fund b. The government shall be subrogated to the rights of the plaintiff against any other person or securities - Plaintiff cannot recover as compensation more than the fair market value at the time of the loss When assurance fund not liable a. Loss or damage by breach of trust b. mistake in survey Prescriptive Period 6 years from the time right of action accrues 2. De Guzman v National treasurer, Aug 3 2000 Chapter VIII Registration of Patents RA 10023 (Free Patent Act) WEEK 14 Chapter VIII Registration of Patents Notes: Where disposable public land granted by the government by virtue of public land patent, the patent is recorded and the corresponding COT is issued to grantee - Thereafter the land is automatically brought within the operation of PD 1529 - They become private property which can no longer be the subject o subsequent disposition by Director of Lands Imperium and Dominium Imperium- authority possessed by the state in the concept of sovereignty Dominium- the state capacity to own or acquire property Classification of Lands of Public Domain under the Constitution a. Agricultural b. Forest or timber c. Mineral lands d. National parks Differences Between the Property registration decree and the Public Land Act a. There exist already a title which to be confirmed by the court - The possessors claim an interest only in the land by virtue of their imperfect title b. The court may dismiss the application for registration without prejudice to the right to file for registration of the same land

-the court has jurisdiction or power to adjudicate land in favor of conflicting claimants c. the only risk that an applicant runs is to have his application denied - Applicant runs the risk of losing the land applied for Modes of disposition a.for homestead settlement b. by sale c. by lease d. by confirmation of imperfect title Homestead Patent - Any citizen of the Philippines - Over the age of 18 years old or head of family - Enter of a homestead of not exceeding 12 hectares - Must have cultivated and improved at least 1/5 of the land - Resided for at least 1 year in the municipality - Upon payment of required fee Sales Patent - Any citizen of the Philippines - Of lawful age or head of family - May purchase a tract of public agricultural land not to exceed 12 hectares - The purchase price may be paid in full or in not more than 10 equal installments from the date of award - Actual occupancy and cultivation of at least 1/5 of the land Land for residential, commercial or industrial purposes a. Lands reclaimed by government b. Foreshore - Shall be disposed by lease only c. Marshy lands d. Lands not included in any of the foregoing classes May be sold on the condition that the purchaser shall make improvement within 18 months from the date of award Direct sale of Lands for Residential Purposes Conditions - Any Filipino citizen of legal age - Who is not the owner of home lot in the municipality in which he resides - Given preference to purchase the land of not more than 1000 sq. m. - At a pice fixed by Dir of Lands with the approval of Sec of Agriculture and Natural resources - Essential condition that the occupants has constructed his house on the land and actually resided therein - 10% of the purchase price shall be paid upon the approval of the sale - And the balance be paid in10 equal annual installment

Lands within military reservations - Priority to purchase given to bonafide occupants and then to war veterans Fee Patent - Natural born citizen of the Phils - Not the owner of 12 hectares - Constinously occupied and cultivated either by himself or gis predessor in interest a tract of agricultural public land for at least 30 years - Paid the real taxes Entitled to have free patent issued to him of such land not to exceed 12 hectares Sale of Friar Land different from sale of Public lands Public lands - A person who desire to acquire land must first apply for the parcel of land desired - Thereafter the land is open for bidding - If the land is awarded to applicant, he is given a right of entry to occupy the land and cultivate and improve it - It is only after satisfying the requirements of cultivation and improvement of 1/5 of the land that the applicant is given a sales patent - If the applicant dies and the widow remarries, both she and the second husband is entitled to land Friar Lands - The purchaser become the owner upon issuance of the certificate of sale in his favor - Subject only to cancellation thereof in case of nonpayment of price - If a holder of certificate dies before payment of price the certificate is assigned to his widow but if no widow to his heirs at law Vested Rights defined Some right or interest in property that has become fixed and established and is no longer open to doubt or controversy Certificate of title issued pursuant to patent indefeasible Title cannot be defeated by adverse possession Director of Lands Has continuing authority to investigate fraudulent issuance of patent Under section 91 of Public Land Act, the Director of lands has the duty to investigate of any alleged fraud in securing a free patent and a corresponding title to a public land and to file corresponding court action for reversion Government may initiate action for cancellation of title and reversion

Section 101 of Public Land Act provides a remedy whereby lands of public domain fraudulently awarded to the applicant may be reverted back to its original owner, the government - An action for reversion has to be instituted by Solicitor General Private Party cannot bring an action for reversion Action for reversion not barred by prescription Prescription does not run against the state Prohibition against alienation of lands acquired under the homestead and free patent - 5 years from the date of/ issuance of patent and before 25 years after issuance of title shall be valid without the approval of sec of Agriculture and Natural resources (approval is merely directory and its absence does not invalidate the alienation made after the prohibitory period) - Crops on the land may be mortgaged or pledge Except: - In favor of the Government or any of its branches, units or institutions or legally constituted banking corporations Even if only part of the property has been alienated within the prohibited period such alienation is sufficient to cause for reversion Repurchase by applicant or his heirs Section 119 of Public Land Act provides that every conveyance of land acquired under free patent or homestead shall be subject to repurchase by applicant or his heirs within 5 years from the date of execution of deed of sale and not from the date of registration in the office of RD A homestead is exempt from CARP coverage Rule when homestead is the subject of mortgage The period of redemption begins to run from the day after the expiration of the one year period of repurchase allowed in extrajudicial foreclosure - All in all the homesteader is given 6 years to repurchase the land Repurchase may be barred by laches Effect of void conveyance Conveyance is void and the cancellation of grant and reversion of the property Rule of Pari delicto not applicable 1. Lopez vs Ca 398 scra 550 2. Flores vs Bagaoisan April 15 2010 3. Kionasala 378 scar 206

Homestead vs Free Patent 4. Republic vs Ca March 9 2001 5. Garingan vs Garingan 455 scra 480 6. Tancuntin vs Gempesaw 440 scra 431 Emancipation Patent 7. Vda. Dela Cruz vs Abille Feb 26 2001 WEEK 15 Chapter X CLOA, Patent, non Tenancy Notes The following lands are covered by the CARP a. All alienable and disposable lands of public domain b. All lands of public domain in excess of retention limits c. All other lands owned by the Government devoted for agriculture d. All private lands devoted to agriculture regardless of the agricultural products raised Retention limits - 5 hectares for landowners - 3 hectares may be awarded to each child of landowner subject to the following qualifications: a. He is at least 15 years of age b. He is actually tilling or directly managing the land The right to choose the area to be retained which shall be compact and contiguous shall pertain to landowner - In case the tenant chooses to remain in the retained area he shall be considered as leaseholder and shall lose his right to become beneficiary - In case the tenant chooses to be a beneficiary of another agricultural land he loses his right to be leaseholder of the retained area - The tenant must exercise this option within a period of 1 year from the time landowner manifest his choice of area of retention Exemptions and exclusions a. Lands actually used for parks wildlife, forest etc. b. Private lands used for prawn farms and fishponds c. Lands found necessary to: - National defense, school sites experimental farm station - Church sites, mosque burial grounds and cemetery - Penal farms actually worked by inmates - Government Research and quarantine center

All lands within 18% slope and over except those already developed Only agricultural lands are subject to agrarian reform coverage Meaning of agricultural land and agricultural activity Agricultural land - Land devoted to agricultural activity Agricultural activity - Cultivation of the soil, planting of crops, growing of fruit trees Lands converted to non agricultural uses prior to the effectivity of Carl are outside its coverage Farm used for raising livestock, poultry and swine not covered - Because it is industrial activity RTC as special Agrarian courts Exclusive jurisdiction 1. Petition for determination of just compensation 2. Prosecution of all criminal offenses under the Act Decision of special Agrarian courts appealable to the CA Distinctive features of PD 27 and RA 6557; exemption distinguished from retention Exemption from coverage of OLT lies if: a. Land is not devoted to rice or corn crops even if it is tenanted b. The land is untenanted even though it is devoted to rice and corn crops Agricultural Tenancy - Physical possession by a person of land devoted to agriculture belonging to another for the purpose of production through the labor of the former in a consideration that the former agrees to share the harvest with the latter or to pay a price certain Quantum of proof to determine if the person is tenant Substantial evidence Extinguishment of agricultural leasehold relation 1. Abandonment of the landholding without the knowledge of agricultural lessor 2. Voluntary surrender of landholding by the agricultural lessee, written notice shall be served 3 months in advance 3. Absence of the person under section 9 to succeed to the lessee Disturbance Compensation Arises only where the peaceful enjoyment and possession by the agricultural tenants or lessees is disturbed or interrupted by the owner/lessor

Equivalent to 5 years rental on his landholding State not liable for disturbance compensation Modes of acquisition a. Operation Land Transfer b. Voluntary offer to sell c. Voluntary land transfer/direct payment scheme d. Compulsory acquisition e. Voluntary stick distribution in case of corporate farms Operation land transfer - Mode by which ownership of tenanted rice and corn land is transferred to tenant beneficiaries Voluntary Offer to Sell - Scheme whereby the land owners voluntary offer their agricultural land for coverage - Landowners entitled to additional 5% cash payment except banks and other financial institutions - Not automatically accepted by DAR it may be rejected if the land has a slope of more than 18% and no person willing to be agrarian reform beneficiaries Voluntary land Transfer/ Direct payment scheme - Whereby the landowner and the beneficiary enter into voluntary agreement for the direct transfer of the lands to the latter Compulsory Acquisition - Land is expropriated by the state a. Notice to landowners by personal delivery or registered mail and posting in conspicuous place in the municipal building and barangay hall b. Within 30 days from receipt of notice the landowner shall inform the DAR of his acceptance or rejection c. If the landowner accepts the offer, LBP shall pay the landowner the purchase price within 30 days after execution of deed of transfer in favor of the government d. In case of rejection, DAR shall conduct summary administrative proceeding to determine the compensation for land requiring the LBP and landowner to submit evidence as to the just compensation within 15 days from receipt of notice. After the lapse of 15 days the matter is deemed submitted for resolution - DAR shall decide the case within 30 days after it is submitted for decision e. Upon receipt of payment or in case of rejection upon deposit with an accessible bank, DAR shall take

immediate possession of property and shall request the RD to issue TCT Determination of Just Compensation a. Cost of acquisition of land b. Current value of like properties c. Nature actual use and income of land d. Sworn valuation by the owner e. Tax declaration and assessment of government assessors f. Social and economic benefits contributed by farmer and by the government to the property g. Nonpayment of taxes No deposit required where the State is the expropriator - Because the compensation is a public charge, the good faith of the public is pledge for its payment and all the resources of taxation may be employed to raise the amount Appeal taken to the CA via petition for review - Petition for review and not an ordinary appeal is the proper action is the proper procedure in effecting an appeal from decision of RTC as special agrarian court in cases involving the determination of just compensation a. CARP (RA 6657) and Carp Extension ( RA 7000) 1. 2. 3. 4. Alangilan vs DAR April 2010 Darab vs Abdulwahid 547 scra 58 Laynesa vs uy 547 scra 200 Hacienda luisita November 2011

Section 109 governs replacement of lost duplicate title a. Registered owner shall send notice under oath to RD b. Filing in court c. The petition shall state facts and circumstances surrounding such loss d. Court set the petition for hearing after notice to RD and interested parties e. After hearing direct the issuance of new COT which shall contain memorandum that it is issued in place lost title Petition for Replacement; where filed RTC where the land lies Judicial Reconstitution under RA 26 Judicially reconstituted title not subject to reservation that it shall be without prejudice to any party whose interest is duly annotated in the original at the time of loss but which notation has not been made on reconstituted title Reconstitution denotes restoration of the lost title in its original form and condition Sources of reconstitution For original COT a. Owners duplicate COT b. Co owners, mortgagee duplicate of the COT c. Certified copy of COT d. Authenticated copy of decree of registration e. A document on file in the RD by which property the description of which is given in said document f. Any other document which in the judgment of court is sufficient basis for reconstitution For TCT a. Owners duplicate COT b. Co owners, mortgagee duplicate of the COT c. Certified copy of COT d. The deed of transfer or other document on file in the Rd containing the description of RD e. A document on file in the RD by which property the description of which is given in said document f. Any other document which in the judgment of court is sufficient basis for reconstitution For liens and encumbrances Sources a. Annotations or memoranda appearing on the owners lessees duplicate b. Registered document on file with the RD c. Any other document which in the judgment of court is sufficient basis for reconstitution of liens and encumbrances

WEEK 16 Chapter X Petitions after Original registration Notes Remedy where duplicate certificate is withheld a. File petition in court b. Court may order annulment of said certificate and issue new one which contain a memorandum of annulment of the outstanding duplicate Petition to surrender title may be filed as an incident to main case Authority of the Court to order surrender owners certificate of title Petition to amend and alter certificates Where to file; - RTC where the land is situated No amendment or alteration of decree is permitted except upon order of court No time limit to file petition to annotate a deed of sale at the back of COT

Where to file petition; Contents RTC The petition shall state: a. The owners duplicate COT had been lost b. No co owners duplicate had been issued c. Location, area and boundaries of the property d. Nature and description of the buildings and improvements which do not belong to the landowner and the name of the owner of the buildings e. Names of occupants and adjoining owners or person who has interest over the property f. Detailed description of the encumbrance g. Statement that no deeds affecting the property have been presented for registration - If sources is section 2 (f) and 3 (f0 the petition shall be further accompanied with a plan and technical description of the property duly approved by the administrator, LRA Requirements of Notice by publication, posting and mailing - Twice in successive issue in Official gazette - Posting in the entrance of provincial and municipal building at least 30 days prior to date of hearing - Mailing of notice to every person named at least 30 days prior to date of hearing All petitions for reconstitution shall be directly filed in duplicate in clerk of Court of the RTC serving copy thereof to the following a. RD concerned b. Dir of lands c. Solicitor general d. Corresponding city or provincial fiscal Publication; effect of defective or lack of publication Order of reconstitution is null and void Reconstitution improper where there is no title to be reconstituted, or where original COT in fact exists Register of Deed not a proper party to file reconstitution - Reconstitution may now be filed only by the registered owner, his assigns or any person who has interest in the property Writ of possession not proper in reconstitution proceedings Administrative reconstitution - governed by RA no. 6732

may be availed only in case substantial loss due to fire, flood other force majeure - the number of COT lost should be least 10% of the total number possession of the RD - in no case shall the number of COT less than 500 Sources of reconstitution; contents petition Sources is sect 2(a), 3(a), 2(b) and 3(b)

of or at in be of

Contents 1. no deed or other instrument affecting the property has been presented for registration 2. that the owners COT is in due form without any alteration 3. the COT is not subject of litigation 4. That the COT was in full force and effect at the time it was lost 5. That the COT is covered by tax declaration 6. That real estate taxes has been fully paid up to at least 2 years prior to filing of petition - If the source is section 2(b) or 3(b) the affidavit should further state that the owners duplicate has been lost and the circumstances under which it was lost Function of LRA to review and adjudicate - Has the jurisdiction to act on petition for administrative reconstitution - Has to authority to revise, review, reverse on appeal the decision of reconstituting officer Remedies of aggrieved party 1. Appeal to LRA 2. Petition for review on the ground of fraud, accident, mistake or excusable negligence in RTC within 60 days from notice of decision and not more than 6 months from the promulgation thereof Chapetr XII Forms Notes Forms in conveyancing The commissioner of LRA shall prepare convenient blank forms - Such instrument shall be signed by the person in the presence of at least 2 witnesses who shall likewise sign thereon - Each page shall be signed on the left margin by the person executing the same and the witnesses Chapter XIII Dealings with Unregistered land Notes Recording shall be without prejudice to a third party who has better right

As between unrecorded sale of prior date and recorded sale of later date the former will prevail Chapter XIV Registration of Chattel Mortgages Notes Chattel mortgage, generally - Personal property is recorded in the Chattel mortgage register as security of the performance of an obligation Mortgage of motor vehicle Should not only be registered in the Chattel Mortgage registry but also in LTO Chapter XV Consultas Notes Consultas Where the instrument is denied registration, the RD shall notify the applicant in writing setting forth the defect of instrument - If the applicant is not agreeable to such ruling, without withdrawing the document to Registry elevate the matter by consulta within 5 days from notice of the denial in LRA upon payment of consulta fee - The RD shall make memorandum of the pending consulta on the COT which shall be cancelled by RD after final resolution - The party may appeal to CA if he disagrees to the resolution of LRA a. SEcs 2,5,7 to 9, RA 26 b. RA 6732 Administrative Reconstitution Replacement 1. Espino vs Sps. Bulut May 2011 2. New Durawood Co. vs Ca Feb 20 1996 Civil law; Land registration; Sec 109 of PD 1529 is the law applicable in petitions for issuance of owners duplicate certificate of title which are lost stolen or destroyrd , RA 26 applies only in cases of reconstitution of lost or destroyed original certificate on file with the RD. Newly issued duplicates are null and void where the certificate is not in fact destroyed or lost. Due notice under oath of the loss or theft of the owners duplicate shall be sent by the owner or someone in his behalf to the RD under Sec 109 of PD 1529 In case of refusal or failure of the holder to surrender the owners duplicate certificate of title, the remedy is to file a petition in court to compel surrender of the same to the RD

Amemdement; Erroneous Inclusion 3. DBP vs Ca 331 scra 267 Land registration; if a person obtains a title under the Torrens system, which includes by mistake or oversight which can no longer be registered under the system, he does not by virtue of said certificate alone became the owner of the land illegally included Land erroneously included in the certificate of title of another must be reconveyed in favor of the true and actual owner thereof, reconveyance being clearly the proper remedy provided it should not have passed to the hands of innocent purchaser for value. Reconstitution 4. Puzon vs Sta. Lucia Realty and Devt March 6 2001 Land Registration;Land Titles; Republic Act 26; The requirement under Section 12 and 13 does not apply to all petition for judicial reconstitution, but only to those based on any of the sources enumerated in section 2(c), 2(d), 2(e), 2(f), 3(c), 3(d), 3(e) and 3(f) Requirement of notices to owners adjoining lots found in Section 13 does not apply to petitions based on an existing ownersd duplicate Transfer Certificate of Title. In petition for reconstitution falling under Section 9 and 10 of RA 26 where the source is the owners duplicate copy, notices to adjoining owners and to actual occupants of the lnad are not required. 5. Republic vs Estipular July 2000 Reconstituion of Land Titles; among the conditions explicitly required by law is publication of the petition twice in successive issues of the Official Gazette and its posting at the main entrance of the provincial and of the municipal building of the municipality or city in which the land is situated, at least 30 days prior to the date of hearing. The publication of the Notice of Hearing in the Official Gazette does not justify failure to comply with the legal requirement of posting the notice at the main entrance of both the municipal and provincial building. 6. Rexlon vs Ca 379 scra 306 Reconstitution of Titles; If an owners duplicate copy of certificate of title has not been lost but is in fact in the possession of

another person, the reconstituted title is void and the cort rendering the decision has not acquired jurisdiction the decision may be attacked anytime. Wrong registration Abrigo vs De Vera432 scra 544 Sales; double sales; land title and Deeds; a double sale of immovable transfer ownership to: 1. First registrant in good faith 2. Possessor in good faith 3. Buyer who in good faith presents oldest title A registration must be done in the proper registry in order to bind the land where the property in dispute is already registered under the Torrens system, registration of the sale under Act 3344 is not effective for purposes of article 1544 of the Civil Code. Constructive notice to the second buyer through registration under Act 3344 does not apply if the property is registered under the Torrens System. Register of Deeds 8. Herce, jr vs Municipality of Cabuyao Ordinary decree book; Being a public document, the Ordinary decree Book is prima facie proof of the entries appearing therein. Prescription does not run against the government.