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operate to divest the right of D who is not and has never been a party to the

Finals Reviewer in Land Titles and Deeds litigation, either as plaintiff or as defendant.
CERTIFICATE OF TITLE Sale by co-owners
A Torrens title is the certificate of ownership issued under the Torrens system Under Article 493 of the Civil Code, the owner of an undivided interest in the
of registration by the government, thru the Register of Deeds naming and property has the right to freely sell and dispose of only his rights, participation
declaring the owner in fee simple of the real property described therein, free and interest in an undivided property held in common with others, but has no
from all liens and encumbrances except such as may be expressly noted right to sell a specifi c part, by metes and bounds, of the property. The sale or
thereon or otherwise reserved by law. other disposition can affect only his undivided share, and the transferee gets
only what corresponds to his grantor in the property owned in common.
Who has right to possess owners duplicate certificate.
Section 41 of Act No. 496, as amended by P.D. No. 1529, provides that the it was held that a co-heir who signs a deed of sale executed by the other co-
owners duplicate certificate shall be issued by the Register of Deeds in the heirs conveying the community property in favor of someone, not as vendor
name of the person in whose favor the land was decreed, and further disposes but only as an instrumental witness, without objecting to the sale of his
that said duplicate shall be delivered to the registered owner. alleged share in the property, is bound by the conveyance, and he cannot
afterwards sue for partition after the vendee has already acquired ownership of
Protection of innocent third person. the property by adverse possession.
Where innocent third persons, relying on the correctness of the certificate of
title thus issued, acquire rights over the property, the court cannot disregard Registration of sale with right of legal redemption
such rights and order the total cancellation of the certificate. right of legal pre-emption or redemption that may be exercised within
CASE thirty days from the date of written notice by the vendor.
Evidence in the case at bar discloses that when petitioner purchased the
subject property on June 10, 1970, the title thereto was in the name of her Torrens title not subject to prescription.
vendor Rafaela Donato alone. The rule that all persons dealing with property No title to registered land in derogation to that of the registered owner shall be
covered by Torrens certificate of title are not required to go beyond what acquired by prescription or adverse possession.
appears on the face of the title is well-settled. The remedy of the defrauded
party is to bring action for damages against those who caused the fraud or Right to recover possession equally imprescriptible.
were instrumental in depriving him of the property. In the case at bar, because To a registered owner under the Torrens system, the right to recover
the action prescribes in 10 years from the issuance of the Torrens title over the possession of the registered property is equally imprescriptible, since
property, the action is said to have already prescribed because it was fi led 15 possession is a mere consequence of ownership.
years after the issuance to TCT No. T-32682.

An innocent purchaser for value or any equivalent phrase shall be

deemed, under the Torrens system, to include an innocent lessee, mortgagee; Evidentiary value of certifi cate of title
or other encumbrancer for value. A certifi cate of title is conclusive evidence with respect to the ownership of the
land described therein, and other matters which can be litigated and decided in
Good faith, how determined. land registration proceedings.
Good faith, or the lack of it, is in its last analysis a question of intention; but, in
ascertaining the intention by which one is actuated on a given occasion, we Torrens title not subject to collateral attack.
are necessarily controlled by the evidence as to the conduct and outward acts Torrens title can be attacked only for fraud, within one year after the date of the
by which alone the inward motive may, with safety, be determined. So it is that issuance of the decree of registration. Such attack must be direct, and not by a
the honesty of intention, the honest lawful intent, which constitutes good collateral proceeding The title represented by the certificate cannot be
faith, implies freedom from knowledge and circumstances which ought to put a changed, altered, modified, enlarged, or diminished in a collateral proceeding.
person on inquiry, and so it is that proof of such knowledge that overcomes
the presumption of good faith in which the courts always indulge in the VOLUNTARY DEALINGS WITH REGISTERED LANDS
absence of proof to the contrary. Good faith, or the want of it, is not visible,
tangible fact that can be seen or touched, but rather a state or condition An innocent purchaser for value of registered land becomes the registered
of mind which can only be judged of by actual or fancied tokens or owner and in the contemplation of law the holder of a certificate thereof
signs. the moment he presents and files a duly notarized and lawful deed of sale
It has been held that a purchaser in good faith is one who buys the property and the same is entered on the day book and at the same time he
of another without notice that some other person has a right to or interest on surrenders or presents the owners duplicate certificate of title to the
such property and pays a full and fair price for the same at the time of such property sold and pays the full amount of registration fees, because what
purchase or before he has notice of the claim or interest of some other person remains to be done lies not within his power to perform . The Register of
in the property. Deeds is in duty bound to perform it. We believe that is a reasonable and
practical interpretation of the law under consideration a construction which
When actual knowledge of purchaser does not constitute bad faith. would lead to no inconsistency and injustice.
In a case where A sold the same property fi rst to B and then to C, C as a FORMAL DETAILS REQUIRED OF VOLUNTARY INSTRUMENTS.
purchaser in good faith for value registered the deed and obtained a title in his requires that every deed or other voluntary instrument presented for
name, free from all liens and encumbrances. registration shall contain or have endorsed upon it the full name, nationality,
Thereafter, C sold the same property to D who relied on Cs good title. But place of residence, post office address of the grantee or other person acquiring
before D finally acquired the property, he became aware of the fact that there or claiming an interest under such instrument, and every such instrument shall
was some trouble or pending litigation involving the same property between A also state whether the grantee is married or unmarried, and, if married, the full
and B, the information having been relayed to him by the tenant of the place. name of the husband or wife. If the grantee is a corporation or association, the
From these facts two questions have been raised, namely: (1) whether D is a deed must show that such corporation or association has the requirements
purchaser in good faith, notwithstanding his knowledge of the pending prescribed by existing law for acquiring public land, in case the land sold or
litigation; and (2) whether D acquired valid title to the property free from lien or conveyed was originally public land. This latter requirement may be expressed
encumbrance. in the deed by means of a statement to the effect that such corporation or
With respect to the fi rst question, it was held that D is still a purchaser in good association has at least sixty (60) percent of its capital belonging to Filipinos.
faith, notwithstanding his knowledge of the pending litigation, because of the
fact that C from whom he bought the property was not a party to the litigation. Register of Deeds not authorized to determine whether or not fraud was
D stepped only into the shoes of C, a previous purchaser in good faith, and committed in the deed sought to be registered. The duties enjoined upon
thereby he became entitled to all the defenses available to C, including those the Register of Deeds by Section 57 of the Land Registration Act are clearly
arising from the acquisition of the property in good faith and for value. With ministerial and mandatory in character, not only as indicated by the auxiliary
respect to the second question, it was held that C acquired valid title to the shall but by the nature of such functions required to be performed by him.
property, in view of Article 1544 of the Civil Code providing that registration in
the Registry of the real property the ownership of which is claimed by different nature of such functions required to be performed by him.
persons shall have the effect of transferring ownership thereof to the party The requirements for deeds and other voluntary instruments of
who, in good faith, fi rst recorded it in the Registry of Property. Furthermore, conveyance to be registrable there under are specified in the law, thus:
Article 526 of the Civil Code provides that He is deemed a possessor in good (1) The presentation of the owners duplicate certificate whenever any duly
faith who is not aware that there exists in his title or mode of acquisition any fl executed voluntary instrument is filed for registration;
aw which invalidates it. Again, under Section 39 of Act No. 496, as amended (2) the payment of the prescribed registration fees and the requisite
by Act No. 2011, every person receiving a certifi cate of title in pursuance of a documentary stamps;
decree of registration, and every subsequent purchaser of registered land who (3) the evidence of full payment of real estate tax as may be due; and
takes a certifi cate of title for value in good faith shall hold the same free of all (4) the inclusion of one extra copy of any document of transfer or alienation of
encumbrances except those noted on said certifi cate. When the pending real property, to be furnished the city or provincial assessor.
litigation between A and B is fi nally decided, the decision of the court cannot
Sales of Land to Aliens
Krivenko vs. Register of Deeds of Manila held that aliens are not allowed to (2) When the vendor remains in possession as lessee or otherwise;
acquire ownership of (3) When upon or after the expiration of the right to repurchase another
urban or residential lands in the Philippines, and as a consequence, all instrument extending the period of redemption or granting a new period is
acquisitions made in contravention of the prohibition since the fundamental law executed;
became effective are null and void per se and ab initio. (4) When the purchaser retains for himself a part of the purchase price;
(5) When the vendor binds himself to pay the taxes on the thing sold;
*** No entity, except the legislature itself, may add to or detract from or (6) In any other case where it may be fairly inferred that the real intention of the
otherwise alter or amend the requirements it has so enumerated and parties is that the transaction shall secure the payment of a debt or the
then only by the corresponding amendment of the existing statutes or the performance of any other obligation.
enactment of new ones. The local government cannot impose additional
requirements; and for a chartered city to add new requirements for registration Registration of mortgage; how effected.
not otherwise provided by statutory law in the matter is tantamount to The procedure in the registration of a mortgage is outlined in Section 61 of Act
amending or modifying the law, a power which is not vested in such a No. 496, as amended by P.D. No. 1529. The mortgage deed is fi led together
chartered city. with the owners duplicate certifi cate of title with the Register of Deeds of the
city or province where the land lies. Thereupon, this offi cial enters upon the
REAL MORTGAGE original certifi cate of title and the owners duplicate certifi cate a memorandum
MORTGAGE, according to Sanchez Roman, is a real right constituted to of the purport of the mortgage deed, the time of fi ling, and the fi le number of
secure an obligation upon real property or rights therein to satisfy with the the deed, signing the memorandum after the entry. He also notes down upon
proceeds of the sale thereof such obligation when the same becomes due and the mortgage deed the time of fi ling and a reference to the volume and page
has not been paid or fulfilled. of the registration book where it is registered.

Kinds of mortgages. *** that in a mortgage of real estate the improvements on the same are
1. conventional - or voluntary mortgage is one created by agreement of the included; therefore, all objects permanently attached to a mortgaged
parties. building or land, although they may have been placed there after the
2. legal mortgage - is one created by operation of law, wherein the creditor is mortgage was constituted, are also included.
given a mortgage on the property of his debtor, without the necessity of the
parties actually stipulating for it. May mortgage be registered without the owners duplicate
- as one required by express provision of law to be executed in favor of certain title?
persons to secure the performance of a principal obligation. Where a mortgage deed has been fi led for registration and the owners
3. judicial mortgage is one resulting from a judgment. duplicate certifi cate of title is being withheld by the owner or otherwise could
4. equitable mortgage is one that is not a mortgage in form but in substance a not be presented at the time of registration, the Register of Deeds may be
mere security for a debt or obligation. This commonly occurs in the case of requested to proceed in accordance with Section 72 of Act No. 496 (now
pacto de retro sales. Section 71, P.D. No. 1529), in which case he shall send within twenty-four
hours notice by mail to the registered owner, stating that such mortgage has
ESSENTIAL REQUISITES OF MORTGAGE. been registered, and requesting that the owners duplicate certifi cate be
POF produced in order that the corresponding memorandum of the mortgage could
(a) That it be constituted to secure the fulfillment of a principal obligation; be made thereon. If the owner neglects or refuses to comply within a
(b) That the mortgagor be the absolute owner of the thing mortgaged; reasonable time the Registrar may suggest the fact to the court, and the court,
(c) That the person constituting the mortgage has the free disposal of the after notice, may enter an order to the owner to produce his certifi cate at a
property, and in the absence thereof, that he be legally authorized for the time and place to be named therein, and may enforce the order by suitable
purpose. process.
DBP vs. CA Thus, a person who deliberately ignores a signifi cant fact that
would create suspicion in an otherwise reasonable person is not an innocent Stipulation against subsequent mortgage.
purchaser for value
stipulation not to make a new mortgage not being contrary to law, morals, or
Who may constitute a mortgage. public order, is valid and is, therefore, an obstacle to the registration of
It is only the absolute owner of the property who can constitute a valid subsequent mortgages in the registry of property.
mortgage on it.
*** whether the agreement that the mortgagor cannot sell the mortgaged
Consent of both parties not necessary to registration of mortgage. property without the consent of the mortgagee such that if it is sold
A mortgage may be registered at the instance of the mortgagee alone, even without his consent, valid or not?
over the objection of the mortgagor. Held:
It is not valid as it contravenes Article 2130, NCC which provides that a
Special characteristics of real mortgage. stipulation forbidding the owner from alienating the immovable mortgaged shall
The following are the special characteristics of a real mortgage: be void.
(a) Realty as subject matter: Only real property or alienable rights and
interests therein may be the subject matter of a mortgage. Thus, not only the Pactum commissorium - is a stipulation empowering the creditor to
land and improvements thereon may be mortgaged, but also the credits or appropriate the thing given as guaranty for the fulfi llment of the obligation in
rights of the mortgagee or other encumbrancers. the event the obligor fails to live up to his undertakings, without further
(b) Real right: A mortgage lien is a real right and as such it is good and binding formality, such as foreclosure proceedings, and a public sale.
against the whole world, and may be enforced by real action against all
persons who may have existing rights or interests in the same property, not Extrajudicial foreclosure of mortgage.
registered prior to the mortgage. A mortgage may be foreclosed extrajudicially only if there has been inserted in
or attached to the real estate mortgage a special power of attorney conferring
(c) Accessory obligation: As an obligation, a mortgage is only accessory and upon the mortgagee the power to sell the mortgaged property at public auction
presupposes the existence of a principal obligation. In the absence therefore of in the event of foreclosure, conformably to the procedure prescribed in Act No.
a principal obligation, a mortgage cannot stand. 3135, as amended by Act No. 4118.
(d) Indivisibility: Even though the debt secured may be divided among the A power to sell extrajudicially conferred upon the mortgagee is a power that
debtors or the creditors or their successors in interest, the mortgage shall survives the death of the mortgagor because it is an agency coupled with
remain as one and indivisible, unless there have been several things given in interest. To constitute such power coupled with interest, the rule is that there
mortgage and each of them guarantees only a determinate portion of the should coexist in the agent, along with the power given him, an interest or
obligation. estate in the thing to be disposed of. It is not meant an interest in the exercise
(e) Inseparability: The mortgage lien and the property affected are of the power but an interest in the property on which the power is to operate.
inseparable, so much so that whoever may subsequently acquire title to the As to the place of sale, it cannot be made legally outside of the province or city
mortgaged property is bound by the terms of the mortgage, whether the in which the property is situated; and in case the place within said province or
transfer be with or without the consent of the mortgagee. In other words, the city in which the sale is to be made is the subject of stipulation, such sale shall
mortgage, until discharged, follows the property to whomever it may be be made in said place or in the municipal building of the municipality in which
transferred no matter how many times over it changes hands as long as the the property or part thereof lies.
annotation is carried over. Publication is also required by posting notices of the sale for not less than
(f) Retention of possession. The mortgagor generallyretains possession of twenty days in at least three public places of the municipality or city where the
the mortgaged property inasmuch as a mortgage is a mere lien and title to the property is situated, and if such property is worth more than four hundred
property does not pass to the mortgagee. pesos, by publishing such notice once a week for at least three consecutive
weeks in a newspaper of general circulation in the municipality or city. In order
that a newspaper may be said to be of general circulation in a municipality, it
The contract shall be presumed to be an equitable mortgage, in any of must have regular subscribers, buyers and readers therein. The law does not
the following cases: require that notice of auction sale be given by the mortgagee to the mortgagor.
(1) When the price of a sale with right to repurchase is usually inadequate;
whenever any owner mortgages any motor vehicle as security for a debt or
Right of redemption in foreclosure of mortgage. other obligation, the creditor or person in whose favor the mortgage is made is
may redeem the same within the term of one year from and after the sale. required, within seven days, to notify the Chief of the Motor Vehicles Offi ce in
Reckoning point from the date of registration of the sale. writing to that effect, stating the registration number of the motor vehicle, date
of mortgage, names and addresses of both parties, and such other information
The pendency of an action questioning the validity of a mortgage cannot bar as may be required by said offi ce.
the issuance of the writ of possession after title to the property has been
consolidated in the mortgagee. Mortgage of after-acquired property valid.
CASE The problem of whether after-acquired property may be object of a chattel
The period of redemption is not interrupted by the fi ling of an action assailing mortgage has confronted stores open to the public for retail business, where
the validity of the mortgage, so that at the expiration thereof, the mortgagee the goods are constantly sold and substituted with new stock from time to time.
who acquires the property at the foreclosure sale can proceed to have the title
consolidated in his name and a writ of possession issued in his favor. To rule Large cattle as object of chattel mortgage; how described.
otherwise, and allow the institution of an action questioning the redemption Large cattle includes the horse, mule, ass, carabao, or other domesticated
would constitute a dangerous precedent. A likely offshoot of such a ruling is the member of the bovine family.
institution of frivolous suits for annulment of mortgage intended merely to give
the mortgagor more time to redeem the mortgaged property. (Union Bank of the description thereof shall include the brands, class, age, knots of radiated
the Philippines vs. CA) hair commonly known as
remolinos, or cowlicks, and other marks of ownership as described and set
forth in the certifi cate of ownership of said animal or animals,together with the
CHATTEL MORTGAGE - is a sale of personalty conveying the title to the number and place of issue of such certifi cates ofownership.
mortgagee under the condition that, if the terms of redemption are not
complied with, then the title becomes absolute in the mortgagee. Where to register chattel mortgage.
- it is a transfer of personal property as security for a debt or obligation in such a chattel mortgage shall be recorded in the offi ce of the Register of Deeds of
form that, upon failure of the mortgagor to comply with the terms of the the province or city where the mortgagor resides as well as where the property
contract, the title to the property will be in the mortgagee. is situated or ordinarily kept.
*** the true nature of a chattel mortgage as a sale only in form, while in
substance essentially a contract of security.
Government lien superior to mortgage lien.
Union Motors Corporation vs. CA, 361 SCRA 506, it was ruled that the Taxes due the government are preferred and superior to the mortgage lien.
accessory contract of chattel mortgage has no legal effect whatsoever
inasmuch as the mortgagors are not the absolute owners thereof, ownership of Effect of registration.
the mortgagor being an essen tial requirement of a valid mortgage contract. While registration adds nothing to the instrument, considered as the source of
The manifestations of ownership are control and enjoyment over the thing title of the mortgagee, it operates as a constructive notice of the existence of
owned. the chattel mortgage. The transaction
thereby becomes binding against third persons. An otherwise invalid or legally
Subject matter of chattel mortgage -- Only personal property defective document is not validated or cured of its legal defects by registration.
House as object of chattel mortgage
If the owner of the building is distinct and different from the owner of the land, it Mortgage binding on subsequent purchasers.
may be considered a Instruments of mortgage are binding, while they subsist, not only upon the
personal property upon stipulation of the parties, for the purpose of constituting parties executing them but also upon those who later, by purchase or
a chattel mortgage. So, also, where a building erected on land belonging to otherwise, acquire the mortgaged properties. The right of those who so acquire
another is merely superimposed on the soil or is sold for immediate demolition, said properties should not and cannot be superior to that of the creditor who
the same may be considered as movable or personal property. has in his favor an instrument of mortgage executed with the formalities of the
law, in good faith, and without the least indication of fraud.
Register of Deeds in respect to the registration of chattel mortgages are
purely of a ministerial character, and he is clothed with no judicial or quasi- Sale of chattel without consent of mortgagee.
judicial power to determine the nature of the property, whether real or personal, Art 319 par. 2 of RPC
which is the subject of the mortgage. Generally speaking, he should accept the incurs criminal responsibility. A mere stipulation in the deed of sale that it
qualifi cation of the property adopted by the person who presents the revokes the chattel mortgage and quashes, nullifi es and terminates all
instrument for registration and should place the instrument on record, upon proceedings, judicial or extrajudicial, arising out of and incident to the
payment of the proper fees, leaving the effects of registration to be determined transaction, does not and cannot have the effect of wiping out the criminal
by the court if such question should arise for legal determination. Registration liability.
adds nothing to the instrument, considered as a source of title, and affects
nobodys rights except as a species of constructive notice. Effect of failure to register.
Where there exists a chattel mortgage contract in due form, but for some
it was held that the view as above enunciated that the parties to a deed of reason or another it was not, as it should be, registered in the offi ce of the
chattel mortgage may agree to consider a house as personal property, for Register of Deeds concerned, the effect would be that it still remains a valid
purposes of such a contract, shall be deemed good only insofar as the chattel mortgage as against the mortgagor, his executors or administrators,54
contracting parties are concerned and is not applicable to strangers to the but void as against third persons, such as intervening purchasers or creditors
contract or to a case where there is no contract whatsoever with respect to the claiming liens by attachment, judgment or execution.
status of the house.
Affi davit of good faith; effect of omission.
Machinery and fixture as subject matter. The absence of such affi davit vitiates a mortgage as against creditors and
subsequent encumbrancers
Gen. Rule
Machinery and fi xture are personal property by their very nature Foreclosure of chattel mortgage; condition precedent.
Exemption: Before foreclosure may be resorted to, it is necessary as a condition precedent
if they are attached to real property or placed in a factory building or plant, with that there be a violation of the condition of the chattel mortgage and that at
the character of permanence according to their purpose and in such manner least thirty days shall have elapsed since then.
that they cannot be detached therefrom without causing destruction of, or
material injury to, the things real with which they are connected, they would be Procedure in foreclosure of chattel mortgage.
regarded as part of the real estate.
The procedure prescribed in Section 14 of the Chattel Mortgage Law for the
Exemption to the exemption: foreclosure of chattel mortgage may be outlined as follows:
if they are so placed by a tenant, or a usufructuary, or someone else having 1. Notices are posted for at least ten days in at least two public places in the
only a temporary right on the real property movable municipality where the mortgaged property is to be sold, designating the time,
place, and purpose of the sale.
An interest in a business mortgageable if properly described. personal 2. The mortgagee, his executor, administrator or assign, notifies in writing, at
property least ten days before the sale, the mortgagor or person holding under him and
Shares of stock as security of an obligation personal property other persons holding subsequent mortgages of the time and place of the sale,
Growing crops as personal property. said notice to be delivered personally to the party if
Growing crops, like ungathered sugar cane in the fi eld, are personal property residing in the same municipality or sent by mail if residing outside.
and as such may be subject matter of chattel mortgage. 3. The mortgaged property is sold at public auction by a public officer at a
Vessels are considered personal property under the civil law. public place in the municipality where the mortgagor resides or where the
property is situated,
Motor vehicle when object of chattel mortgage. as designated in the notice.
4. Within thirty days after the sale, the public official who conducted the sale
makes a return of his doings, the same to be filed and recorded with the Office
of the Register of Deeds where the mortgage has been recorded. The officers
return describing the articles sold and stating the amount received for each
article operates as a discharge of the lien created by the mortgage.
5. The proceeds of the sale will be distributed and applied to the following
(a) Cost and expenses of keeping and sale;
(b) Amount of demand or obligation secured by the chattel mortgage;
(c) Obligations due to persons holding subsequent mortgages, in their order,
(d) Balance turned over to the mortgagor or person holding under him on


ATTACHMENT is a writ issued at the institution or during the progress of an
action, commanding the sheriff or other public offi cer to attach the property,
rights, credits, or effects of the defendant to satisfy the demands of the plaintiff.

Attachment may be classifi ed into three kinds, namely:

(1) preliminary attachment; is that issued at the institution or during the
progress of an action.
(2) garnishment; plaintiff seeks to subject to his claim property of the
defendant in the hands of a third person called the garnishee, as well as
money owed by such third person to defendant. Garnishment proceedings are
usually directed to personal property.
(3) levy on execution. is the attachment issued after the fi nal judgment in
satisfaction thereof.