Pre-Week Lecture on Land Titles & Deeds

By Dean Albano
October 9, 2013
(yellow-highlighted – emphasized in pre-week)

Note: Significance of the date June 12, 1945

P.D. 892- those lands granted during the spanish colonization were allowed to be registered under the land
registration laws.

P.D. 1529 consolidated all the registration laws. Requires registration of all properties under this decree which makes
the title imprescriptible.

Under this decree, the proceeding is one in rem. It binds the whole world. Everybody is deemed impleaded. File
confirmation of imperfect title. The moment the title of the applicant is confirmed and a decree of registration is
issued, 1 year thereafter, the title becomes imprescriptible. Any opposition thereto can only be made thru a
collateral attack.

Effect of confirmation of registration- quiet the title as against third persons

Purpose of registration: Mirror Doctrine: one can rely on the face of the title in case of any dealing with the property
(ex. Sale)- as duly supported by the provision in the contract of sale that one dealing with sale of real property
covered by a Torrens title, he can just rely on the face of the title. Exception: bank and other financial institutions.

New development re: mirror doctrine- ex. If the title is questionable (the title contains the letter “R” which means
“reconstituted”/ or an anomaly is suspected from the sale transaction, one is called upon to investigate or inquire.

In the above case, who has a better right?

Acquisition of lands in PH

Patrimonial property/alienable land- subject to acquisition, provided that said land is no longer intended for public
use

Forest land/timber land/mineral land/military reservation- not subject to acquisition by private individuals. If
someone acquires any kind of the aforesaid land thru inheritance, title thereto is not valid. A petition for the
reversion of property to the state will be done.

Even one is in possession of a property, no matter how long, prescription cannot be invoked. Petition for reversion
by the state can be made at anytime (imprescriptible) and whoever is in actual possession thereof.

Agricultural land being held by the state-

For a government property to be alienable/disposable, it is required that there must be an express declaration that
the subject property is no longer intended for public use/service or utilize for the development for nation’s wealth
or the property is already converted into a patrimonial property- to make it alienable/disposable property. Mere
reclassification of the government property to patrimonial property is not sufficient. If above express declaration is
completely complied with, the property is now open, continuous and public possession. In this case, the period of
actual possession can be tacked with the period the predecessor possessed the same.

Case of Rapongi Property in Japan- attempted by Pres. Cory Aquino to sell- SC ruled that this cannot be sold because
it is intended for public service. As long as the Congress did not enact a legislation reclassifying the property into
alienable land, it cannot be sold.

Application for confirmation of imperfect title

Who may apply for registration:

 1. One is in OCCEN (open, continuous, complete, exclusive and notorious- double check!) possession of the
property

A sole corporation can acquire an alienable land in the Philippines.

Petition for reversion of property- a real action; jurisdiction depends on the assessed value of the property.

If assessed value does not exceed P50k, file with MTC, even if the application for confirmation of title was filed with
the RTC. MTC in this case, does not nullify the RTC’s decision (hence, not an interference of the decision of higher
court by a lower court), but merely order for the reconveyance of the property.

Acquisition by Prescription

A property already covered by a Torrens title is imprescriptible, hence, cannot be claimed by one by prescription.

Period of prescription:
1. 30 years

By accretion, the owner of the land adjoining the river bank owns any increase in the land area if due to natural
current of water. The owner is qualified to apply for registration of the property acquired by accretion. But this
requires an application for confirmation of an imperfect title.

This increased area is subject to acquisition by another person thru prescription of 30 years (example: a neighbour
claiming the same- as long as the requirements on open, continuous…. Are met)

If a neighbour claims ownership of the land added to the owner’s land by accretion by prescription ( no registration
for the period of 30 years). The owner cannot claim that the torrens title with phrase “more or less” does not
automatically cover the increased portion caused by accretion. A separate registration for the increased portion
should be made.

The possessor’s petition will be granted. Under the law, the owner of land adjoining the river bank owns the
increased portion brought by accretion. Need not perform to perform an act to acquire the land. However, the
increase d portion is open to acquisitive prescription. A separate registration is required pertaining to the increased
portion. It is necessary that the increased portion must be covered by an independent and separate title.

A property received by donation or by inheritance, file an application for confirmation if unregistered in order to
facilitate the transfer of ownership under one’s name.

If someone happens to register a timber land and petition was filed to confirm imperfect title, will the judge grant
the petition?

The judge will decide in favour of the state, timber/forest land, title secured by the private person is void, it is not
imprescriptible.

Action for reversion of property shall be filed with either MTC or RTC, depending on the assessed value of the
property. This is an action involving title to or possession of property which can be filed with either MTC or RTC,
depending on the assessed value of the property.

In an action for reversion by the State, the court does not in effect nullify the court’s decision re: confirmation of title
but merely ordering the reconveyance of the title because the title secured by the petitioner has always been void. It
does not violate the principle on judicial stability.

Error of director of lands in classifying the alienable land of public domain, reversion still applies.

In an application for registration involving alienable land of public domain, an opposition is asking for affirmative
relief, claiming that he is the real owner not the petitioner. If the oppositor can prove his right completely, instead
the confirmation will be granted to the applicant, the confirmation will be awarded to the oppositor. No res judicata
in this case.

Once judgment was issued re: confirmation of title of the applicant, this will be forwarded to LRA (which will issue
the decree of registration). If aggrieved by the decision, one can move for the re-opening of the case.

GR: confirmation of imperfect title after 1 year, title becomes imprescriptible. Exception: if office of solicitor general
was not furnished with the copy of the decision re: confirmation of imperfect title. In this case, the title is not yet
considered imprescriptible.

Register of Deeds will issue torrens Title.

Remedies in land registration cases:

1. New trial- grounds Rule 37 (FAME and newly discovered evidence)

2. Appeal from the judgment
3. If judgment is final and executor, lost right of appeal, Petition for relief from judgment
4. Re-opening from the 1 year period
5. Reconveyance after 1 year
6. Action for damages against the person who defrauded and land assurance fund.

What court has jurisdiction over the subject matter of land registration? (check recording no.38 39

Court in the place where the property is situated. Delegated to MTC/MCTC then appeal to court of appeals.

Prove the open, continuous, exclusive and notorious possession of the land by prescription.

As private prosecutor, cannot invoke state interest. Only the Solicitor General can invoke it.

An application for confirmation of imperfect title by a non-citizen maybe granted if he was still a Filipino citizen when
the property was actually acquired, meaning, he was still qualified to acquire the property then.

Jurisdiction of the MTC- merely an RTC-delegated authority. Hence, appeal thereto should be made with the CA, not
RTC.

Tracing cloth- a document which is intended to identify the land subject of registration. But the court now admits the
blue print.

One’s interest over the property must be specifically stated in the application. An individual cannot invoke the
interest of the state over a property. It will be done thru the Sol Gen.

If there is an oppositor against one applying for confirmation of imperfect title, the latter can ask for affirmative
relief.

If documents submitted to support one’s application for confirmation of imperfect title is incomplete, the application
will be dismiss but can be re-filed.

Decree of registration is issued by the LRA and will be forwarded to the Register of Deeds. ROD will transcribe the
technical description then will process and release the title.

Decision is promulgated by the court while decree of registration is issued by the LRA.

Issuance of the OCT (original certificate of title) ends the process of application for confirmation of imperfect title.
Motion to re-open the decree of registration within 1 year from the date of issuance of said decree- remedy in case
the owner is deprived of the property (ex. In case of fraud). After decree of registration was issued and 1 year period
lapsed, the title becomes indefeasible/imprescriptible/incontrovertible, hence, the remedy to re-open the decree is
no longer availing. Except: if Sol Gen was not furnished with a copy of the decree of registration.

After lapse of 1 year, remedy is reconveyance of the property. If already sold to an innocent purchaser for value,
reconveyance is not availing. Remedy if to file an action for damages against the person who defrauded you or claim
against the assurance fund.

Title of the property is not a mode of acquisition of property but merely evidences ownership of property. It
quiets/silences other claimants.

When to file a motion for new trial?

When to file a motion for recon?

- When the evidence presented is not sufficient to confirm the title

When to Appeal?

Rule 38- Petition for relief from judgment (appeal lost due to FAME)
- Period of filing

Fresh 15 days period is likewise applicable in land registration cases.

The order, being not interlocutory, one can file an appeal.

Publication is required.

Rule 47- declaration of nullity due to lack of due process

Certificate of Title- evidence of ownership

Can a corporation file for confirmation of imperfect title of alienable land of public domain?

As Director of Lands- corporation cannot file a confirmation of imperfect title of alienable land of public domain. It
can only lease.

As a Judge, the petition for confirmation or registration of the property will be granted. It is true that corporation
cannot acquire an alienable land of a public domain. Corporation cannot own but can only lease. This is not
applicable because what the Corporation acquired from Mr. A is no longer a public land but a private property
owned by private individual, hence, the application for registration of the property under the name of the
corporation is a mere confirmation of imperfect title that was acquired by a private individual not as registration of
the public land under the corporation’s name. Hence, a public land subsequently acquired by a private individual
maybe purchased and owned by a corporation.

Can a corporation acquire an alienable land of a public domain? – No. It can only hold a parcel of land by way of
lease.

Note: Iglesia ni Kristo v Bartolome- abandoned by Director of Lands v CA (which also abandoned the Meralco case)
A property of public domain which was converted, by operation of law, into a private property, and subsequently
sold to a corporation qualifies the latter to acquire the same, having not acquired a property of public domain. While
it used to be part of public domain, its subsequent conversion ipso jure into private property qualifies the
corporation to acquire it.

Who can acquire lands in PH?

1. Filipinos
2. Dual citizens are entitled to the same rights (civil/political) as to that of a Filipino citizen. No limit as to the
number /area of lands to be acquired.

General Rule: Foreigner- not eligible to own lands in PH. But this is not an absolute rule. By inheritance, aliens can
acquire property (hereditary succession by intestate, not testate as this will violate the provision of the constitution).

A property acquired by a foreigner out of his personal fund and subsequently married a Filipina, hence, the said
property became part of the conjugal partnership of gains, SC ruled that the acquisition is not valid. What is material
is the qualification of the purchases at the time of acquisition of land.

Instances when alien can acquire land in PH:

1. Acquisition of land in the Philippines by a foreigner thru intestate succession is valid. Note that it should be
intestate succession, not testate (because thru the Will, it might circumvent the prohibition set by law).

A foreigner who acquired a property as such but subsequently naturalized, the acquisition is still invalid.

Property acquired by a Filipino citizen who subsequently lost Ph citizenship, can still register the land because the
application for registration is only a mere confirmation of the imperfect or incomplete title. (republic vs court of
appeals).

Reclaimed area- cannot be sold to a corporation, but can be leased. Unless it is reclassified into patrimonial property
of the State, hence can be transferred to a private person.

2. A former natural born citizen of the PH who embraced foreign citizenship, went back to PH and acquired
land- he can do so as allowed by PH law. (maximum 5,000 sqm urban land and 3 hectares if rural land. 

If naturalized Fiipino who subsequently acquired another foreign citizenship, not qualified because the law
requires a natural born citizen.

If a foreigner marries a Filipina, and acquired land under the name of said Filipina, it cannot become part of
the conjugal partnership because it circumvents the intent of the constitituion. Except: acquisition by
inheritance (intestate).

How does the Republic of the Philippines acquire property?

1. Thru escheat proceedings

Instances when escheat proceedings take place:

1. (Check recording # 24)
2. In case a deceased left a property without a will and no qualified heir up to 5 th civil degree.
3. Expropriation – the state must take the property in the concept of an owner, not a mere lessee
4. CARP- policy: to promote the welfare of the people

Voluntary dealings over a parcel of land

 1. Sale of property

A property was sold by someone who stole the Certificate of Title and signature of the seller was forged.- action
to recover the property by the real/true owner is imprescriptible.

Exception: Clean title (covered by a torrens title), was sold to a buyer in good faith. The property cannot be
recovered by the real owner. If void title appears to be a clean title and passes to the buyer in good faith and
for value, the sale is valid and cannot be recovered by the real owner. A void title can be the root of a valid
title if it is a clean title which passes to the purchaser in good faith and for value. The law further require that
the buyer in good faith and for value must also be a registrant in good faith.

In case a bank or any other financial institution is the buyer or a mortgagee of a land covered by Torrens title, it
has to exercise a higher degree of diligence to inquire/investigate upon the title of the seller / mortgagor. It
cannot simply rely on the face of the title.

2. Donation. Art 751 does not state that one cannot donate a property which he does not own. However, the
provision which states that future property cannot be donated tells us that one cannot donate something
which he does not own.
3. Succession

NOTE: In both donation and succession, if there is a defect in the title over the property, one may file for an
application for the confirmation of imperfect title.

Mere entry of the sale in the Register of Deeds without complete payment of proper fees, levy will prevail
over sale.

Entry of the deed of sale in the ROD with complete payment of proper fees, it now becomes a constructive
notice to the whole world. In case of controversy arising from double sale, the one who first caused the
entry has a better right to the property.

Who can apply for homestead patent? Coverage- 12 hectares. If there is a homestead patent and sold it w/in the 5
year limit rule, even with the consent/approval of the director of lands, the sale is void.

Patent law in land registration is an exercise of police power because it restricts the sale thereof w/in the 5 year
period.

Sale of a land covered by homestead patent after the 5 year period also allows for a 1 year redemption period.

Certificate of Title- evidence of ownership. Quiets claim of others against the property.

4. Mortgage- mortgagee may not be the owner of the property (ex. Agent)

Foreclosure of mortgage- in case of deficiency, the accommodation mortgagor is not liable.

In case of an accommodation mortgagor, whether it’s a chattel mortgage, the limit of his liability is up to the
extent of the value of the property.

In chattel mortgage, there is no such continuing mortgage (because of the requirement of Affidavit of Good
Faith). Unlike in real estate mortgage, continuing mortgage is allowed.

In a Contract of Mortgage, the mortgagor is not prohibited to sell the property even w/out the consent of
the mortgagee. To prevent him is a void stipulation being in contrary to public policy. Exception: in case of
2nd mortgage, the consent of the 1st mortgagee is required in order to have a valid 2 nd encumbrance/2nd
mortgage of the property.

Notice of foreclosure of property- to give chance to the mortgagee to pay his obligation
 In case the mortgagor dies, the mortgagee can either:
1. Sell and recover from the proceeds
2. Foreclose

After foreclosure, one may file a motion for the issuance of writ of possession. Issuance of the writ of possession is
ministerial/ex parte. The mortgagor cannot file for an injunctive relief. In case later, it will be found out that the
mortgage constituted upon the property is void, reversion of property will be made.

Foreclosure need not be published. It is sufficient that the notice will be posted in a conspicuous place.

Fraudulent transfer of property with the use of abuse of trust or confidence (breach of implied trust)- in implied
trust, there is no requirement for an express repudiation of trust. The 10 year period shall be reckoned from the date
of the registration of the property (note: not from the discovery of fraud). Beyond this period, an action for
reconveyance is deemed prescribed. Except when one is in actual possession of the property, in which case, the
action for reconveyance is imprescriptible.

In case of an Express Trust, repudiation is required. Mere transfer of property under one’s name does not mean
repudiation of trust. The repudiation must be communicated and evidence of repudiation is required. Upon express
repudiation, the 10 year period will commence to run.

Donation of property- if unregistered, the donee can apply for registration of the said property.

To be valid, it must follow the form/solemnity required by law.

Notice of acceptance must be noted in the Deed of Donation.

Distinguish intervivos and mortis causa (like a will).

Essence of donation inter vivos- it is irrevocable.

Mortis cause- revocable in nature

Formalities of Donation intervivos—like a contract; mortis cause- follow the formalities of mortis causa.

Deed of donation executed during the lifetime of the donor but stipulated there on reservation of the right of donor
over the usufruct- still a donation inter vivos.

Did the donor intend to reduce its estate during his lifetime. If not, then, it’s a donation inter vivos.

Donation made by an insane donor but becomes sane when the donee made known to the donor of his acceptance
of the donation.- valid donation; but if this is an ordinary contract, this is void.

Know the formalities of donation.

Double sale- know the rules

Acquisition of unregistered property- the one with the most superior right is the first sale. The rule on double sale
that the purchaser in good faith and for value who registered it first than the other buyers is not applicable.

Mortgage contract which stipulates that the property cannot be sold by the mortgagor- void; cannot be sold
without consent of the mortgagee- valid; continuing mortgage over an immovable property- valid; chattel
mortgage cannot be considered a continuing mortgage because of the inclusion of the Affidavit of Good Faith.

Foreclosure with balance- 3rd person in an accommodation mortgage is the value of his property, hence, not liable
to pay the unpaid balance.

Deficiency in the foreclosure of mortgage, abandon the mortgage and claim it against the estate of the decedent.