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Land Title and Deeds: Chapter 1: Background, Basic Concepts & General Principles
Land Title and Deeds: Chapter 1: Background, Basic Concepts & General Principles
LAND TITLE – evidence of right of owner or extent of his interest, by which means he can
maintain control and as a rule assert right to exclusive possession and enjoyment of property
DEED – instrument in writing which any real estate or interest therein is created, alienated,
mortgaged or assigned or by which title to any real estate may be affected in law or equity
1. Grantor
2. Grantee
3. Words of grant
4. Description of property
5. Signature of grantor
6. Witnesses
TYPES OF ESTATES :
1. FREEHOLD ESTATE – indicates title of ownership
a. Fee simple – absolute title; conferred without limitation, qualification or
restriction
b. Fee tail – pass title to grantee & his heirs
c. Life state – held for duration of life of grantee
RECORDING – does not guarantee the title; need to examine other docs
PURPOSE OF REGISTRATION:
1. Serve as constructive notice
2. Prevent fraudulent claims
3. Protect interest of strangers to transaction
ADVANTAGES :
1. Abolishes endless fees
2. Eliminates repeated examination of titles
3. Reduces records enormously
4. Instantly reveals ownership
5. Protects against encumbrances not noted on the Torrens certificate
6. Makes fraud almost impossible
7. It assures
8. Keeps up the system without adding to burden of taxation; beneficiaries of the system
pay the fees
9. Eliminates tax titles
10. Gives eternal title as state ensures perpetuity
11. Furnishes state title insurance rather than private title insurance
12. Makes possible the transfer of titles or of loans within the compass of hours instead of
a matter of days
PURPOSE OF TORRENS LAW: quiet title to land – once registered, owner might rest secure
NOTICE IN CONSPICUOUS PLACE IN LAND & BULLETIN BOARD OF MUNICIPALITY – 14 days before
hearing
HEARING – within 7 days after publication in OG
– 25 – 90 days from date of order
REQUISITES OF OPPOSITION:
1. Set forth objections to the application
2. State interest claimed by oppositor
GENERAL DEFAULT
If no person appears and answers within time prescribed
SPECIAL DEFAULT
Party appears at initial hearing without having filed an answer and ask court for time
to file answer but failed to do so within period allowed
DECREE – issued by land registration authority containing technical description of land; issued
after finality of judgment
1. Decrees dismissing application
2. Decrees of confirmation and registration
Final after 1 year after decree
Unless there in innocent purchaser for value
Subject only to appeal
Once final, cannot be subject to attack, deemed conclusive against the world
3. Put end to litigation
4. Purpose of Torrens system is protected
Amendment after 1 year is allowed – creation or extinguishment of new rights;
inclusion of new owners not allowed
JUDGMENT – decision of court constituting its opinion after taking into consideration the
evidence submitted
WRIT OF POSSESSION – order to sheriff to deliver the land to the successful party litigant; no
prescription
1. Against loser
2. Against anyone unlawfully & adversely occupying
RES JUDICATA:
1. Former judgment must be final
2. Rendered by court having jurisdiction over subject matter & parties
3. Judgment on merits
4. Identity of parties, subject matter and causes of action
TORRENS TITLE – certificate of ownership issued under the Torrens System of registration by
the government through road naming & declaring owner in fee simple of property described
therein free from all liens except those expressly noted
PROCESS :
1. Within 15 days from finality of order of judgment directing registration of title – court to
order Land registration Admin to issue decree of registration and certificate of title
2. Clerk of court will send order of court & copies of judgment
3. Administrator to issue decree of registration & original & duplicate of OCT – signed by
Administrator, entered & file decree of registration in LRA
4. Send to Register of Deeds – original & duplicate of title & certificate for entry in his
registration book
5. Enter in record book, dated, signed, numbered & sealed – take effect upon date of
entry
6. Register of Deeds to send notice to registered owner ready for delivery after payment
of fees
7. Register of Deeds shall send duplicate & note on each certificate of title to whom it is
issued
8. Original copy to be filed in Register of Deeds; bound in consecutive order
ANNOTATIONS AT BACK OF CERTIFICATE – need court order; otherwise null & void
OPERATIVE ACT – registration by owner; deed not registered – binding only between parties
PROCESS OF REGISTRATION:
1. File instrument creating or transferring interest and certificate of title with Register of
Deeds
a. Owner’s duplicate
b. Payment of fees & documentary stamp tax
c. Evidence of full payment of real estate tax
d. Document of transfer – 1 copy additional for city/provincial assessor
2. Register of Deeds shall make a memorandum on the certificate of title, signed by him
3. Issue TCT
VOLUNTARY DEALINGS
Need to present title – to record the deed in registry & to make memorandum on title
INVOLUNTARY DEALINGS
No presentation required; sufficient that annotation in entry book is sufficient
KINDS:
1. Conventional – agreed upon by parties
2. Legal – Created by operation of law
3. Judicial – results from a judgment
4. Equitable – pacto de retro in form but mortgage in essence
ESSENTIAL REQUISITES:
1. Constituted to secure fulfillment of principal obligation
2. Mortgagor be absolute owner of thing mortgaged
3. Person constituting mortgage has free disposal of property
SPECIAL CHARACTERISTICS :
1. Subject matter is realty
2. Real right – attaches to property wherever it is & whoever holds it
3. Accessory – presupposes existence of valid principal obligation; cannot stand alone
4. Indivisibility – even if debt is divisible; mortgage is not
5. Inseparability – mortgage lien is inseparable from property
6. Retention of possession - mortgagor retains possession
SUBJECT MATTER
Real property plus all its accessions unless contrary is stipulated
Future property – without legal effect
Future improvements – deemed included
Fruits & rents of mortgaged property deemed included
Continuing credit secured by mortgage valid
FORMS :
1. Private document – void & inexistent
2. Public instrument but not recorded – binding between parties but not 3 rd persons
without notice
3. Public document & registered – valid & binding to 3 rd parties
PARTIES IN FORECLOSURE SUIT: all persons claiming interest subordinate in right to mortgagee
FORECLOSURE
1. JUDICIAL
a. Mortgagee to petition in court for foreclosure
b. Court to render order for debtor to pay sum due within 90 days and if not paid
from date of service, property be sold at public auction
c. Notice & Publication
d. Public auction: sale to highest bidder
e. Sheriff to issue certificate confirming judicial foreclosure
f. File with Register of Deeds final decree of court confirming sale
g. Memo entered in certificate of title
h. If right of redemption exist, certificate of title of mortgagor not to be cancelled
but memorandum shall be entered upon the certificate duplicate & original
i. After expiry of 1 year redemption period & no redemption, title is consolidated to
new owner
j. Purchaser to be entitled to new certificate of title & memorandum endorsed on
mortgage deed
k. If there is redemption, memorandum to be annotated on certificate of title
2. EXTRA-JUDICIAL
Allowed only if stipulation between party authorizes extra-judicial foreclosure
Cannot be made legally outside of city where land lies
Publication required: post notices for 20 days in 3 public places where property
lies & if property is more than P400.00, publication must be for 3 consecutive
weeks in news paper of general circulation
If foreclosure by rural banks, exempt from publication in newspaper for loans
not exceeding 3,000.00
Registration of sale in Register of Deeds:
a. Deed of sale must be supported by certificate of sheriff that said sale
was conducted accordingly stating the date, time, place of sale, names
of creditor & debtor, description of property, name of highest bidder,
selling price
b. Present in Register of Deeds where land lies
c. Memorandum on back of certificate is made
d. After expiration of 1 year of redemption period – title is consolidated if no
redemption exercised: purchaser to file with Register of Deeds the deed
of sale & sworn statement attesting to fact that there is no redemption
e. New certificate of title issued in favor of vendee
f. If redeemed – notice of redemption shall be registered & accomplished
by way of memorandum on proper certificate of title
RIGHT OF REDEMPTION
Payment of purchase price plus 1% per month plus taxes if paid by purchaser
To be exercised within 1 year after registration of sale
RIGHT TO DEFICIENCY – allowed
DEED OF MORTGAGE :
Requires only description to enable parties & other persons to identify the subject
matter
EFFECT OF REGISTRATION:
1. Creates a lien – attaches to the property whoever holds it; binding on subsequent
purchasers
2. Constructive notice
SALE OF CHATTEL WITHOUT CONSENT OF MORTGAGEE – void; criminal act
ASSIGNMENT OF MORTGAGE
No need to be registered, permissive only & not mandatory
FORECLOSURE OF MORTGAGE
The must first be non-payment & at least 30 days have elapsed since then
Alternatives:
1. Judicial
2. Extra-judicial – only if there is stipulation/authority
PROCEDURE IN FORECLOSURE
1. Notice posted for 10 days in at least 2 public places in municipality where property is to
be sold designating the time, place and purpose of sale
2. Mortgagor is notified in writing at least 10 days before sale
3. Public auction
4. 30 days after sale, officer makes a return & file with Register of Deeds where mortgage
has been recorded
5. Officer’s return operates as a discharge of the lien created by the mortgage
6. Proceeds to be applied:
a. Cost of sale
b. Amount of obligation
c. Subsequent mortgages
d. Balance – mortgagor
LEASE – one of parties deliver possession of property to another who is obliged to pay rent for
use of such property
REGISTRATION OF LEASE
1. File with Register of Deeds the instrument creating lease together with Owner’s
Duplicate of certificate of title
2. Register of Deeds to register by way of memorandum upon certificate of title
3. No new certificate shall be issued
EFFECT OF REGISTRATION:
1. Creates a real right but without prejudice to rights of 3 rd persons
2. If not registered – valid as between parties but not to 3 rd persons without notice
ALIENS:
1. May be granted temporary rights for residential purposes
2. Limit: 25 years, renewable for another 25 years
TRUST – obligation of a person to whom legal title to property is transferred to hold the property
according to confidence reposed in him
2 KINDS:
1. Expressed – need to be in writing; cannot be proved by parole evidence
2. Implied – exist by operation of law; can be proved by parole evidence
a. Property is bought but paid by another party
b. Donation is made but donee have no beneficial interest thereon
c. Price of sale of property is loaned & conveyance is made to lender to secure
fulfillment of loan
d. Land passes by succession to a person but legal title is put in another’s name
e. 2 persons purchase property but placed only in one’s name
f. Guardian uses funds of ward to buy property
g. Property is acquired thru mistake or fraud
REGISTRATION OF TRUST
1. Sworn statement claiming interest by reason of an implied trust with description of land
& reference to number of certificate shall be registered in Register of Deeds
2. Provided not prohibited to do so by instrument creating the trust
ATTACHMENT
A writ issued at the institution or during progress of an action commanding the sheriff to
attach the property, rights, credits or effects of the defendant to satisfy demands of the
plaintiff
Kinds:
a. Preliminary
b. Garnishment
c. Levy on execution
REGISTRATION OF ATTACHMENT /OTHER LIENS
1. Copy of writ in order to preserve any lien, right or attachment upon registered land may
be filed with Register of Deeds where land lies, containing number of certificate of title
of land to be affected or description of land
2. Register of Deeds to index attachment in names of both plaintiff & defendant or name
of person whom property is held or in whose name stands in the records
3. If duplicate of certificate of title is not presented:
a. Register of Deeds shall within 36 hours send notice to registered owner by mail
stating that there has been registration & requesting him to produce duplicate so
that memorandum be made
b. If owner neglects or refuses – Register of Deeds shall report matter to court
c. Court after notice shall enter an order to owner to surrender certificate at time &
place to be named therein
4. Although notice of attachment is not noted in duplicate, notation in book of entry of
Register of Deeds produces effect of registration already
1. EXECUTION SALE
To enforce a lien of any description on registered land, any execution or affidavit
to enforce such lien shall be filed with Register of Deeds where land lies
Register in registration book & memorandum upon proper certificate of title as
adverse claim or as an encumbrance
To determine preferential rights between 2 liens: priority of registration of
attachment
2. TAX SALE
Sale of land for collection of delinquent taxes and penalties due the government
In personam (all persons interested shall be notified so that they are given
opportunity to be heard)
Notice to be given to delinquent tax payer at last known address
Publication of notice must also be made in English, Spanish & local dialect &
posted in a public & conspicuous place in place wherein property is situated & at
main entrance of provincial building
Sale cannot affect rights of other lien holders unless given right to defend their
rights: due process must be strictly observed
Tax lien superior to attachment
No need to register tax lien because it is automatically registered once the tax
accrues
But sale of registered land to foreclose a tax lien need to be registered
ADVERSE CLAIM
1. Make a statement in writing setting forth alleged interest, from whom acquired, how
acquired, no of certificate of land, name of registered owner, description of land in
which right/interest is claimed – signed & sworn to
2. Statement shall be entitled to registration as adverse claim on certificate of title
3. Effective for 30 days from date of registration
4. After 30 days, may be cancelled by filing of verified petition by party in interest
Any party may petition in court to cancel adverse claim
Court to grant speedy hearing
If adverse claim is adjudged invalid – may be cancelled
5. No 2nd adverse claim based on same ground shall be registered by same claimant
PURPOSE : keep subject matter within the power of the court until the entry of final judgment
Therefore creates merely a contingency & not a liens
EFFECT OF REGISTRATION:
1. Impossibility of alienating the property in dispute during the pendency of the suit – may
be alienated but purchaser is subject to final outcome of pending suit
2. Register of Deeds duty bound to carry over notice of lis pendens on all new titles to be
issued
PARTITION/SETTLEMENT OF ESTATE
1. JUDICIAL
After entry of final judgment of partition, copy certified by clerk of court to be
filed with Register of Deeds
Each owner to gave separate certificate of title (duplicate)
If ordered to be sold, purchaser shall be entitled to a certificate of title entered in
his name upon presentment of order confirming sale
2. EXTRAJUDICIAL
a. Decedent died intestate
b. No debts
c. Heirs are all of legal age, or minors represented by guardian
Heirs to execute public instrument to be filed with Register of Deeds
If disagree with each other, file in court ordinary action for partition
If there is only 1 heir, may adjudicate to himself entire estate via affidavit
to be filed with Register of Deeds
If there is movables involved, bond to be filed equivalent to value of
property as certified under oath by parties conditioned upon payment if
any just claim which may be filed by creditor within 2 years after
distribution
Publication in newspaper of general circulation for 3 weeks; not binding
to those without notice
Final after 2 years
State creates a fund for the compensation of persons injured by divesting/cutting off of
rights due to the indefensibility of title; following that act of registration is operative act
by which State transfers title; created to relieve innocent persons from harshness of
doctrine that certificate of title is conclusive evidence of an indefeasible title to land.
Money shall be under custody of the National treasurer; invest it until P+I aggregates to
500,000, excess shall be paid to the Assurance Fund; annual report of Treasurer to
Secretary of Budget
WHO IS ENTITLED :
1. Claimant must be
owner, purchaser or encumbrancer in good faith who suffered actual damage by loss of
land; in short – he is deprived of his land or interest therein
2. No negligence
attributable to him
3. Claimant is barred
from filing action to recover said land
4. Action to recover
from assurance fund has not prescribed
LIABILITY:
1. Satisfy claims from private persons first
2. When unsatisfied – secondary liable is the National Treasurer who shall pay thru
assurance fund; thereafter Government shall be subrogated to rights of plaintiff to go
against other parties or securities
MEASURE OF DAMAGES :
Based on amount not greater than fair market value of land
Amount to be recovered not limited to 500,000 which is maintained as standing fund
If fund is not sufficient, National Treasurer is authorized to make up for deficiency from
other funds available to Treasury even if not appropriated
OFFENSES :
1. Larceny
2. Perjury – false statement under oath
3. Fraudulent procurement of certificate: fine of not more than 10,000 or imprisonment of
5 years or both in discretion of court
4. Forgery: fine of not more than 10,000 or imprisonment of 10 years or both in discretion
of court
a. Forging of seal in Register of Deeds, name, signature or handwriting of any
officer of court of Register of Deeds
b. Fraudulent stamping or assistance in stamping
c. Forging of handwriting, signature of persons authorized to sign
d. Use of any document which an impression of the seal of the Register of Deeds
is forged
5. Fraudulent sale: sale of mortgaged property under the misrepresentation that it is not
encumbered; deceitful disposition of property as free from encumbrance: imprisonment
of 3 years or fine not exceeding 2,00 or both at discretion of court
PROCEDURE :
1. Official issuing instrument of conveyance to issue instrument
2. File instrument with Register of Deeds
3. Instrument to be entered in books and owner’s duplicate to be issued
4. Instrument – only contract between Government and private person and does not take
effect as conveyance if unregistered, it is registration which is operative act of
conveying land; evidence of authority for Register of Deeds to register
5. Fees to be paid by grantee
6. After issuance of certificate of title, land is deemed registered land within the purview of
the Torrens system
FISHPONDS
Before: included in definition of agriculture, conversion of agricultural land to fishponds does
not change character of land
Now: restricted meaning; fishponds has distinct category; cannot be alienated but may be
leased from government.
DIRECTOR OF LANDS
Quasi-judicial officer
Findings of fact conclusive on higher court with absence of fraud, mistake other than
error of judgment; but not with regards to finding of law
Empowered to alienate and dispose lands
Lease not included since lease does not transfer ownership; free-title grant: free
distribution of public lands to encourage people to cultivate; government furnishes the
applicant with tolls plus cash allowance to enable him to cultivate
PATENT
WHEN GOVERNMENT GRANT DEEMED ACQUIRED BY OPERATION OF LAW:
IS
1. Deed of conveyance issued by government patent/grant
2. Registered with Register of Deeds – mandatory: operative act to convey & transfer title
3. Actual physical possession, open & continuous
Land ceased to be part of public domain & now ownership vests to the grantee
Any further grant by Government on same land is null & void
Upon registration, title is indefeasible
RESTRICTIONS:
1. Cannot be alienated within 5 years after approval of application for patent
2. Cannot be liable for satisfaction of debt within 5 years after approval of patent
application
3. Subject to repurchase of heirs within 5 years after alienation when allowed already
4. No corporation, partnership, association may acquire unless solely for commercial,
industrial, educational, religious or charitable purpose or right of way subject to consent
of grantee & approval of Secretary of Natural resources
EXCEPTIONS :
1. Action for partition because it is not a conveyance
2. Alienations or encumbrances made in favor of the government
HOMESTEADER
If he dies, succeeded by heirs in the application
PURPOSE :
Another means to bring lands under operation of Torrens System
Ordinary registration is slow for lack of initiative on part of landowners, innovation was
conceived to hasten and accelerate registration
Government initiates that all lands within a stated region are up for registration –
whether or not owners are interested to settle their titles
NATURE OF PROCEEDINGS :
In rem
No defendant & no plaintiff
Compulsory
PROCEDURE :
1. CADASTRAL SURVEY
In opinion of Phil president pursuant to requirement of public interest, title of
land within a specified area needs to be settled and adjudicated
Order Director of Lands to make survey and plan
Director gives notice to persons claiming interest in lands & to gen public of day
of survey – published in OG and posted in conspicuous place on lands to be
surveyed
Geodetic engineers commences survey
During survey, boundaries are marked by monuments
2. FILING OF PETITION
After survey and plot been made, Director represented by Sol Gen institutes
cadastral proceeding by filing petition in court against holders, claimants,
possessors, occupants
Parcel of lots given their cadastral numbers
3. PUBLICATION OF NOTICE OF HEARING
Court to order date of hearing
LRA to notify public by publishing notice 1x in OG and 1x in newspaper of
general circulation & copy mailed to person whose address is known & other
copies posted in conspicuous place designated bylaw
4. FILING OF ANSWER
Any person claiming interest in any part of lands subject to petition is required to
file answer
Answer must give the ff details:
a. Age of claimant
b. Cadastral number of lot claimed
c. Name of barrio or municipality where lot is located
d. Name of owners of adjoining lots
e. If in possession & without grant – no of years in possession
f. If not in possession – state interest claimed
g. If assessed of taxation – assessed value
h. Any encumbrances affecting said lots
5. HEARING OF CASE
In any convenient place where land lies
Like an ordinary RTC trial
Conflicting claims are determined
Lots claimed are awarded to persons entitles – if they could prove title
If none could prove title – land is declared public domain
6. DECISION
Claimants are notified of decision
7. ISSUANCE OF DECREE AND CERTIFICATE OF TITLE
Upon order of court, LRA to enter decree of registration
Decree made basis for issuance of OCT
Decree are now being directly prepared and issued on regulation forms of such
certificate
CADASTRAL COURT DOES NOT AWARD DAMAGES , BUT MAY DIRECT SHERIFF TO DELIVER
POSSESSION
Provisions of land registration act applicable to cadastral proceedings
System of registration for unregistered land under the Torrens System (ACT 3344)
Before: covers voluntary dealings, now includes involuntary dealings
Effect if prospective; binds 3rd persons after registration but yields to better rights of 3 rd
person prior to registration (limited effect to 3 rd parties)
Reason: no strict investigation involved
Subsequent dealings – also valid if recorded
Register of Deeds keeps day book & a register; index system is also kept
Procedure:
1. Presentment of instrument dealing in unregistered land
2. If found in order – registered
3. If found defective – registration is refused writing his reason for refusal