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Notes: 1) An owner of registered land may: a. convey b. mortgage c. lease d. charge e. deal with the same in accordance with existing laws 2) Gen. Rule: no deed, mortgage, lease or other voluntary instrument shall take effect as a conveyance or bind the land. It shall operate only as a) a contract between the parties and b) as evidence of authority to the Register of Deeds. Exception: if it is a will purporting to convey or affect registered land 3) registration- it is an operative act to convey or affect the land insofar as 3rd persons are concerned; Whereoffice of the Register of Deeds for the province or city where the land lies. 4) Formal reqt s of contracts involving real property (see Art. 1356-1358) 5) Form is important for validity, convenience and enforceability. eg. sale of real estate 6) Limketkai Sons Milling, Inc. v. CA: Gen. Rule: a sale of land is valid regardless of the form it may have been entered into; Exception: if the law requires a document or special form 7) Delivery as a mode of transmission: real/actual- consists in the placing the thing sold in the control and possession of the vendee, legal/constructive8) Actual notice is equivalent of registration. 9) A verbal agreement of sale cannot be registered. 10) The right of the bank to the property is superior to that of the purchaser if the latter files an adverse claim to registered land only after the same was already mortgaged to the bank. 11) Registration of document is ministerial on the part of the Register of Deeds; Remedy- mandamus 12) Registration must first be allowed, and validity or effect litigated afterwards. 13) An instrument which seeks the reformation of an extrajudicial settlement of an estate consisting of registered land is a voluntary one. 14) As between the parties, registration is not essential for validity of sale. 15) RA No.456, Sec. 1- Payment of taxes is a pre-requisite to registration; When- w/in 15 days from the date of entry of said document in the primary entry book of the register of deeds, otherwise the entry is deemed cancelled. Sec. 2- Failure to furnish the RD w/ a copy of the document of transfer or alienation shall not invalidate an otherwise valid agreement. Sec. 52. Notes: 1) What are to be registered: a. conveyance b. mortgage c. lease d. lien e. attachment
f. g. h. i.
order judgment instrument entry affecting registered land
P a g e | 45 Where: office of the province or cit where the land lies to which it relates Why: it is constructive notice to all persons from the time of such registering, filing or entering. 2) Rule of Notice- it is presumed that the purchaser has examined every instrument of record affecting the tite. 3) Rule of Law- all persons must take notice of the facts w/ch the public contains. 4) Calalang v. Register of Deeds: a supervening claimant cannot claim a better right over land w/ch had been previously registered in the name of another; Garcia v. CA: prior est in tempore, prior est jure- he who is first in time is preferred right 5) notice of lis pendens- serves as a warning to a prospective purchaser or encumbrancer that the particular property is in litigation, and that he should keep his hands off the same, unless he intends to gamble on the results of the litigation. 6) Purchaser is not req d to explore further than what title indicates for hidden defects. 7) A purchaser who has knowledge of defect of his vendor s title cannot claim good faith. 8) Francisco v. CA, Santiago v. CA (see pp. 439-442), Jomoc v. CA (pp.442-443) 9) Gonzales v. IAC: the banks, before approving a loan, send representatives to the premises of the land offered as collateral and investigate who are the true owners thereof; Rationale- their business is one affected w/ public interest 10) estoppel- failure of a purchaser of a parcel of land in execution sale to question on time the entry or annotation made on the back of the sale. 11) Levin v. Bass, etc. Voluntary Involuntary An innocent purchaser for value of registered An entry in the day book is sufficient notice to all lands becomes the registered owner, and, in persons even if the owner s duplicate certificate of contemplation of law the holder of certificate of title is not presented to the Register of Deeds title, the moment he presents and files a duly notarized and valid deed of sale and the same is Does not have the effect of conveyance of entered in the day book and at the time he property. surrenders or presents the owner s duplicate of title covering the land and pays the registration fees. Writ of attachment annotated on the back of the Not necessary. Involuntary registration such as an owner s duplicate certificate of title is necessary. attachment, levy on execution and lis pendens, entry thereof on the day book is sufficient notice to all persons of such adverse claim. 12) Villasor v. Camon: a memorandum of the registration of voluntary instrument shall also be made by the Register of Deeds on the owner s duplicate certificate and on its original. 13) PNB v. Javellana: annotation is only necessary in voluntary transactions. eg. attachment, levy on execution, lis pendens Sec. 53 Notes: 1) Gen. Rule: no voluntary instrument shall be registered by the Register of Deeds unless the owner s duplicate certificate is presented with such instrument; Exceptions: a) in cases expressly provided for in PD 1529, b) upon order of the court, for cause shown 2) conclusive authority of Register of Deeds- a) production of the owner s duplicate certificate, b) entry of new certificate, c) making a memorandum of registration; new certificate/memorandum- binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value in good faith. 3) The owner may pursue all his legal and equitable remedies against the parties to such fraud w/o prejudice to the rights of any innocent holder for value of a certificate of title. 4) forged duplicate certificate of title, forged deed or other instrument- void
P a g e | 46 5) Surrender of withheld duplicate certificates; Whena. if it is necessary to issue a new certificate of title pursuant to any involuntary instrument w/ch divests the title of the registered owner against his consent b. if the voluntary instrument cannot be registered by reason of refusal or failure of the holder to surrender the owner s duplicate certificate of title 6) Annulment of owner s duplicate certificate and issuance of a new certificate of title; Whena. if the person withholding the duplicate certificate of title is not amenable to the process of the court; or b. if the outstanding owner s duplicate certificate cannot be delivered c. Content- memorandum of the annulment of the outstanding duplicate. 7) Abuyo v. De Suanzo: non-production of the owner s duplicate certificate of title may not invalidate a vendee s claim of ownership if the subsequent vendees of the same lot are unaware of the prior sale. 8) L.P v. Leviste & Co. v. Noblejas: an agreement to sell is a voluntary instrument as it is a willful act of the registered owner; hence the presentation of the owner s duplicate certificate of title is necessary. 9) Registration takes effect retroactively as of the date when the deed, or conveyance, was noted in the entry book of the Register of Deeds. 10) PNB v. Fernandez: issuance of TCT without production of the owner s duplicate is unwarranted and confers no right on the purchaser. 11) Blondeau v. Nano: a forged deed may be the root of a valid title in the hands of a bona fide purchaser or mortgagee; Rationale- public policy, expediency and the need of a statute of repose as to the possession of land *the registered owner s negligence or acquiescence, if not actual connivance, had made the possible commission of fraud. 12) PNB v. CA and Chu Kim Kit: Remedies- a) action for damages against those who caused the fraud, b) an action against the Treasurer of the Phils. may be filed for recovery of damages against the Assurance Fund. *the seller and the mortgagor were the registered owners of the subject property. 13) Fule v. de Legare: Gen. Rule- forged or fraudulent deed is a nullity and conveys no title; Exception- if the certificate of title was already transferred from the name of the true owner to the forger and was subsequently sold to an innocent purchaser. 14) Adriano v. Pangilinan: a mortgage is invalid if the mortgagor is not the registered owner of the property. 15) de Lara v. Ayroso: it is the buyer s duty to ascertain the identity of the man with whom they were dealing as well as his legal authority to convey. 16) Rule in case of double sale a. 1st registrant in good faith b. 1st possessor in good faith c. oldest title in good faith 17) Gatioan vs. Gaffud: the purchaser from the owner of the later certificate and his successors, should resort to his vendor for redress, rather than molest the holder of the first certificate and his successors, who should be permitted to rest secure in their title. 18) Gen. Rule: Art 2085 NCC- mortagagor should be the absolute owner of the property to be mortgage or else mortgage is null and void; Exception: doctrine of mortgagee in good faith; Rationale- public policy; How- 1) conducting a credit investigation, 2) inspection of the property, 3) meeting the persons who represented themselves to be the owners of the property before they entered into the transaction 19) Before a bank grants a loan on the security of a land, it must undertake a careful examination of the title as well as on the spot investigation of the land offered as security. Failure to do so: guilty of gross negligence and cannot be considered as mortgagee in good faith
P a g e | 47 Sec. 54 Note: Dealings with less than ownership, howfiling with the Register of Deeds of the following: i. instrument which creates or transfers or claims such interests ii. brief memorandum made by the Register of Deeds upon the certificate of title, and signed by him iii. similar memorandum on the owner s duplicate certificate of title *applies to cancellation or extinguishment of such interests Sec. 55 Contents of the instrument presented for registration1) full name 2) nationality 3) status 4) residence 5) postal address of the following: a. grantee b. person acquiring interest under such instrument 6) if corporation/association- a statement whether or not it is legally qualified to acquire private lands 7) changes in the names, residences and postal address of all the parties to the instrument Sec. 56 Who- Register of Deeds What- keep a primary entry book When- upon payment of the entry fee How- by entering in the order of their reception all instrument of copies of writs and processes filed with him relating to registered land. What- preliminary process of registration How- by noting in such book the date, hour and minute of the reception of all instruments, in the order w/ch they were received When registered- from the time so noted, and the memorandum of each instrument, when made on the certificate of title to w/ch it refers Notes: 1) national gov t/prov l and city gov t- exempted from the payment of such fees in the advance in order to be entitled to entry and registration 2) deed or other instrument filed with the RD shall bea. numbered and indexed b. endorsed with a reference to the proper certificate 3) records and papers relative to registered land- same as court orders w/ch shall be opened to the public subject to the regulations of the RD under the direction of the LRC. 4) deeds and voluntary instruments shall bea. presented with their respective copies b. attested and sealed by the RD c. endorsed with file number d. its copies be delivered to the person presenting them
P a g e | 48 5) Certified copies of all instruments filed and registered may also be obtained from the RD upon payment of prescribed fees. 6) how an innocent purchaser for value of registered land becomes the registered ownera. the moment he presents and files a duly notarized and lawful deed of sale b. the same is entered on the day book c. he surrenders or presents the owner s duplicate certificate of title to the property sold d. pays the full amount of registration fees A. CONVEYANCES AND TRANSFERS Sec. 57 Procedure in registration of conveyances1) the owner shall execute and register a deed of conveyance in form sufficient in law 2) the RD shall thereafter: a. make out in the registration book a new certificate of title to the grantee b. prepare and deliver to him an owner s duplicate certificate c. note upon the original and duplicate certificate i. date of transfera ii. volume and page of the registration book in w/ch the new certificate is l iii. reference by number to the last preceding certificate 3) the original and the owner s duplicate of the grantor s certificate shall be stamped cancelled 4) the deed of conveyance shall be filed and indorse w/ the number and the place of registration of the certificate of title of the land conveyed Sec. 58 Procedure where conveyance involves portion of the land1) the RD shall enter transfer certificate to the grantee upon the verification and approval of the a) plan of such land showing all the portions or lots into w/ch it has been subdivided and b) corresponding technical descriptions as pursuant to Sec. 50 2) such deed may only be annotated by way of memorandum upon the grantor s certificate of title, original and duplicate Purpose: a) serve as a notice to 3rd persons of the fact that certain unsegregated portion of the land described therein has been conveyed; and b) shows the grantee s title to the portion conveyed to him, pending the actual issuance of the corresponding certificate in his name 3) upon the approval of the plan and technical descriptions, the original of the plan, together w/ a certified copy of technical descriptions shall be filed w/ the RD for annotation in the corresponding certificate of title 4) said officer shall: a. issue a new certificate of title to the grantee for the portion conveyed b. the grantor s certificate may be cancelled totally and a new one issued to him describing therein the remaining portion if he so desires 5) pending approval of said plan- no further registration or annotation of any subsequent deed or other voluntary instrument involving the unsegtregated portion conveyed shall be effected by the RD; Exception- if such unsegregated portion was purchase from the Gov t or any of its instrumentalities. 6) if the land has been subdivided into several lots which is designated by numbers or letters, the RD may: a. enter on said certificate and on its owner s duplicate a memorandum of such deed of conveyance b. issuance of the transfer of certificate to the grantee for the lot/s thus conveyed c. grantor s certificate is cancelled as to such lot/s
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Sec. 59 What: subsisting encumbrances or annotations appearing in the registration book When: at the time of any transfer How: they shall be carried over and stated in the new certificate/s Exception: if they may be simultaneously released or discharged Rationale- to show that the grantee obtained the land/portion thereof subject to subsisting encumbrances attached to the title of his grantor wi Note: Noblejas case- if a notice of lis pendens filed by a claimant refers to a lot different from that covered by the adverse claim of another, the lis pendens, notwithstanding its prior registration, cannot be carried over to the new title to be issued to the adverse claimant. B. MORTGAGES AND LEASES Sec. 60 Notes: 1) Mortgage and leases shall be registered in the manner and provided in Sec. 54 of this Decree. 2) No mortagagee s or lessees duplicate certificate of title shall be issued by the RD. 3) Those issued prior to the effectivity of PD 1529 are deemed cancelled and the holders thereof shall surrender the same to the RD. 4) mortgage- security for the payment of money or the fulfillment of an obligation to answer for the amount of indebted, in case of default of payment. Objects: a) immovables b) alienable real rights in accordance w/ the laws imposed upon immovables real mortgage- a contract in w/ch the debtor guarantees to the creditor the fulfillment of a prinicipal obligation, subjecting for the faithful compliance therewith a real property in case of nonfulfillment of said obligation at the time stipulated Requisites (Art. 2085, CC): a) that they should be constituted to secure the fulfillment of a principal obligation; b) that the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged; c) that the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose Characteristics (accdg. to Paras) a) real right b) accessory contract c) indivisible d) inseparable e) real property f) limitation on ownership Mortgagor must be the owner of the property mortgaged. A mortgagee has no right to eject the occupants of the property mortgaged; Exception- if he purchases the same at a public auction and the property is not redeemed within the prescribed period. Third persons who are not parties to a loan may secure the latter by pledging or mortgaging their own property. Mortgage lien is a right in rem w/ch follows the property. It subsists notwithstanding a change in ownership (Ligon v. CA)
5) 6) 7) 8)
P a g e | 50 9) Equitable mortgage- one, which although lacking in some formality, form or words, or other requisites demanded by a statute, nevertheless reveals the intention of the parties to charge a real property as security for a debt, and contains nothing impossible or contrary to law. Requisites: a) the parties entered into a contract denominated as a contract of sale; and b) that their intention was to secure an existing debt by way of mortgage. Application (Art. 1602, CC): a) when the price of the sale is unusually inadequate; b) when the vendor remains in possession as lessee or otherwise; c) when upon or after the expiration of the right to repurchase another instrument extending the period of redemption or granting a new period is executed d) when the purchaser retains for himself a part of the purchase price; e) when the vendor binds himself to pay the taxes on the thing sold; and f) where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation 10) con pacto de retro- mortgage/loan; sale with right to repurchase- equitable mortgage Sec. 61 Who: Register of Deeds What: shall enter upon the original of the certificate of title and also upon the owner s duplicate certificate a memorandum thereof a) date and time of filing b) file number assigned to the deed c) signature d) deed- 1) date and time of filing, 2) reference to the volume, 3) oage of the registration book in w/ch it is registered Notes: 1) 2) 3) 4) 5) 6) 7) 8)
Recorded mortgage is a right in rem. mortgage-surety bond = in personam Unrecorded mortgage is valid and binding upon the parties. Art. 2128, CC- the mortgage credit may be alienated or assigned to 3rd person, in whole or in part, w/the formalities req d by law The subsequent declaration of a title as null and void is not a ground for nullifying the mortgage right of a mortgagee in good faith. Innocent purchaser for value includes innocent lessee or mortgagee. forged deed- null and void Reyes v. de Leon: unrecorded sale of a prior date is preferred than that of a recorded mortgage on a later date; Rationale- if the original owner had parted w/ his ownership of the thing sold then he no longer had the ownership and free disposal of that thing so as to be able to mortagage it again. Judicial declaration as to the existence of a lien is sufficient. El Hogar Filipino v. PNB: rights of the second mortgagee- a) rights of repurchase, b) apply to the payment of its credit the excess of the proceeds of the sale after the payment of the credit of 1st mortagee