A.

Systems of Land Registration in the Philippines

The Registry of Property has for its object the inscription or annotation of acts and contracts
relating to the ownership and other rights over immovable property. (Article 703, Civil Code)

The term “Register” may refer to:

a. The act of recording or annotating;

b. The book of registry;
c. The office concerned; or
d. The official concerned.1

There are three systems of registration in the Philippines, namely Registration under the Land
Registration Act (Torrens System) as amended by Presidential Decree No. 1529, Registration under the
Spanish Mortgage Law, and Revised Administrative Code – Homestead / Sales Patent.

1. Torrens System under the Land Registration Act as amended by Presidential Decree No. 1529:

Torrens System is “A system for establishing title to real estate in which a claimant first
acquires an abstract of title and then applies to a court for the issuance of a title certificate, which
serves as conclusive evidence of ownership.” 2

Generally, the Torrens System refers to the system of “registration of transactions with
interest in land whose object is, under governmental authority, to establish and certify to the
ownership of an absolute and indefeasible title to realty, and to simplify its transfer.” This system
was devised and first introduced in South Australia by Sir Robert Torrens in 1857. 3

A homestead patent granted in accordance with the Public Land Act is registered under the
Torrens System, the certificate of title issued in virtue of said patent has the force and effect of a
Torrens Title under the Land Registration Act. Corollary thereto, the Director of Lands, being a
public officer, has in his favor the presumption of regularity in issuing the homestead patent. 4

A land registration proceeding is in rem and, therefore, the decree of registration is binding
upon and conclusive against all persons including the Government and its branches, irrespective of
whether or not they were personally notified of the filing of the application for registration or have
appeared and filed an answer to said application, because all persons are considered as notified by
the publication required by law.5

The real purpose of that system is to quiet title to land; to put a stop forever to any
question of the legality of the title, except claims which were noted at the time of
registration, in the certificate, or which may arise subsequent thereto. That being the
purpose of the law, it would seem that once a title is registered the owner may rest secure,
without the necessity of waiting in the portals of the court, or sitting in the "mirador de su
casa," to avoid the possibility of losing his land.6

1 Paras, E. (2008). Civil Code of the Philippines Volume II. (16th Ed.). Manila, Philippines: Rex Bookstore, Inc.
2 Torrens system. (2004). In Black’s Law Dictionary. (8th ed.).St. Paul, MN: Thomson/West
3 Grey Alba v. De la Cruz (16 September 1910)
4 Bernales v. IAC (28 June 1988)
5 Cacho v. Court of Appeals (3 March 1997)
6 Legarda v. Saleeby (2 October 1915)
 Stated simply, the registration of property is to (1) avoid possible conflicts of title in
and to real property, and (2) “facilitate transactions relative thereto by giving the public the
right to rely upon the face of the Torrens certificate of title and to dispense with the need of
inquiring further, except when the party concerned has actual knowledge of facts and
circumstances that should impel a reasonably cautious man to make such further inquiry.”
It was therefore adopted in this country since it is the most effective measure to guarantee
the integrity of land titles.7

However, the purpose of land registration is not the acquisition of lands but only the
registration of title which the applicant already possessed over the land. Registration was
never intended as a means of acquiring ownership.8

2. Spanish Mortgage Law

On 16 February 1976, Presidential Decree No. 892 was issued decreeing the discontinuance
of the system of registration under the Spanish Mortgage Law and the use of Spanish titles as
evidence in land registration proceedings. It was needed to do so since recording under this system
was practically nil and has become obsolete.

Presidential Decree No. 1529 reiterates the discontinuance of the system of registration under
the Spanish Mortgage Law—provides also that the books of registration for unregistered lands
under Section 194 of Administrative Code, as amended by Act No. 3344, shall continue to be in
force, but all instruments dealing with unregistered lands shall henceforth be registered under
Section 113 of of the Decree. However, any recording under Section 113 of Presidential Decree
No. 1529 shall be without prejudice to a third person with a better right.

3. Revised Administrative Code – Homestead / Sales Patent:

Under Action 103 of Presidential Decree No. 1529, it provides, “Whenever public land is by
the Government alienated, granted or conveyed to any person, the same shall be brought forthwith
under the operation of this Decree. It shall be the duty of the official issuing the instrument of
alienation, grant, patent or conveyance in behalf of the Government to cause such instrument to be
filed with the Register of Deeds of the province or city where the land lies, and to be there
registered like other deeds and conveyance, whereupon a certificate of title shall be entered as in
other cases of registered land, and an owner’s duplicate issued to the grantee. The deed, grant,
patent or instrument of conveyance from the Government to the grantee shall not take effect as a
conveyance or bind the land, but shall operate only as a contract between the Government and the
grantee and as evidence of authority to the Register of Deeds to make registration. It is the act of
registration that shall be the operative act to affect and convey the land, and in all cases under this
Decree, registration shall be made in the Office of the Register of Deeds of the province or city
where the land lies. The fees for registration shall be paid by the grantee. Af- ter due registration
and issuance of the certificate of title, such land shall be deemed to be registered land to all intents
and purposes under this Decree.”

This provision is a restatement of Section 122 of Act No. 496 (Land Registration Act).
Correspondingly, Section 107 of Com. Act No. 141 (Public Land Act) provides that the actual
conveyance of land covered by all public land patents or certificates of land grant shall be effected

7 Aquino A. (2007). Land Registration and Related Proceedings. (4th Ed.) Manila, Philippines: Rex Bookstore, Inc.
8 ibid.
 only as provided in the said Section 122 of Act No. 496, that is, after the registration thereof in the
Office of the Register of Deeds concerned. 9

a. Homestead Patent

A homestead patent may be issued to any citizen of this country over the age of 18
years or the head of a family, “who does not own more than twenty-four hectares of land in
the Philippines or has not had the benefit of any gratuitous allotment of more than twenty-
four hectares of land since the occupation of the Philippines by the United States” (Section
12, Public Land Act), and who has complied with the residence and cultivation requirements
of the law. The applicant is thus required to have resided continuously for at least one year in
the municipality where the land is situated, and must have cultivated at least one-fifth of the
land applied for (Sections 13 and 14, supra). In view of the Constitutional limitation on the
number of hectares to be granted, the 24 hectares stated in the aforequoted Section 12 should
be understood to refer to only 12 hectares.10

b. Sales Patent

i. Only citizens of the Philippines of lawful age, and such citizens not of lawful age
who is a head of a family, may purchase public agricultural land of not more than 12
hectares. Private corporations or associations are not qualified to purchase such land
(Section 22, Public Land Act, in relation to Art. XII, Section 3, Constitution). The land
applied for is sold at public auction, and the highest bidder to whom the land shall be
awarded, whether he be the applicant or any other Filipino citizen, is thereafter required to
have at least 1/5 of the land broken and cultivated within 5 years from the date of the
award. A sales patent may be issued to him only after full payment of the purchase price
and the awardee shall have established his actual occupancy, cultivation, and
improvement of at least 1/5 of the land until the date of such final payment. (Sections 24
to 28, Public Land Act)
ii. Agricultural lands, which are suitable for residential, commercial or industrial
purposes, not exceeding more than 12 hectares, may also be sold to citizens of the
Philippines who meet the qualification to purchase public lands for agricultural purposes.
The land is sold at public auction and awarded to the highest bidder. A sales patent may
be issued to him after full payment of the purchase price and after he shall have
completed the construction of permanent improvements appropriate for the purpose for
which the land is purchased within 18 months from date of the award.
iii. Republic Act No. 730, which took effect on June 18, 1952, permits the sale without
public auction of public lands for residential purposes to “any Filipino citizen of legal age
who is not the owner of a home lot in the municipality in which he resides and who has in
good faith established his residence on a parcel of land of the public domain of the
Republic of the Philippines which is not needed for the public service,” of not more than
one thousand square meters at a price to be fixed by the Director of Lands with the
approval of the Secretary of Agriculture and Natural Resources (now Secretary of
Environment and Natural Resources). The law further makes it “an essential condition of
this sale that the occupant has constructed his house on the land and actually resided
therein (Sec. 1 thereof).”
iv. This Act which authorizes private sale without public bidding, is an exception to
the general rule that sale should be by bidding. But this Act applies only if the area
applied for does not exceed one thousand (1,000) square meters and the purchaser has the
9 Aquino A. (Supra)
10 Aquino A. (Supra)
 qualifications specified therein.2 Moreover, as amended by P.D. No. 2004 lands acquired
under this law “shall not be subject to any restrictions against encumbrance or alienation
before and after the issuance of the patents thereon. 11

4. Characteristics of Certificate of Title:

a. Indefeasibility Principle

The rule that a homestead patent, once registered under the Registration Act, becomes
indefeasible as a Torrens Title is only true and correct if the parcel of agricultural land
patented or granted as homestead by the government after the requirements of the law had
been complied with was a part of the public domain. If it is not but a private land the patent
or homestead patent are a nullity.12

It is a rule in this jurisdiction that once a public land has been brought under the Land
Registration Act, the Torrens title issued thereto is indefeasible. It is entitled to the same
regard as one issued in a judicial proceeding. 13

c. Multiple Certificates

It is a settled rule that when two certificates of title are issued to different persons
covering the same land in whole or in part, the earlier in date must prevail, and, in case of
successive registrations where more than one certificate is issued over the land, the person
holding a prior certificate is entitled to the land as against a person who relies on a
subsequent certificate. The titles of the petitioners, having emanated from an older title,
should thus be upheld.14

d. Direct versus Indirect Attack

A direct attack against a judgment is made through an action or proceeding the main
object of which is to annul, set aside, or enjoin the enforcement of such judgment, if not yet
carried into effect; or, if the property has been disposed of, the aggrieved party may sue for
recovery. A collateral attack is made when, in another action to obtain a different relief, an
attack on the judgment is made as an incident in said action. 15

e. State to File Action for Reversion

While title issued on the basis of a patent is as indefeasible as one judicially secured,
such indefeasibility is not a bar to an investigation by the Director of Lands as to how such
title had been acquired, if the purpose of such investigation is to determine whether or not
fraud had been committed in securing such title, in order that the appropriate action for
reversion may be filed by the Government.16

11 Aquino A. (Supra)
12 Iglesia ni Kristo v. CFI of Nueva Ecija (25 July 1983)
13 Garingan v. Garingan, 12 April 2005
14 Sanchez v. Quinio (15 July 2005)
15 Teoville v. Ferreira (8 June 2005)
16 Sherwill Development v. Sitio Sto. Nino Residents (28 June 2005)
 If indeed there had been any fraud or misrepresentation in obtaining the title, an action
for reversion instituted by the Solicitor General would be the proper remedy. 17

B. Purposes of Registration
1. to give true notice of the true status of real property and real rights thereto；
2. to prejudice third persons （unless they have actual knowledge of the transaction concerned); 18
3. to record acts or contracts （transmissions and modifications of ownership and other real rights
over real properties （Art. 708）；
4. to prevent the commission of frauds, thus insuring the effectivity of real rights over real
property.19

C. Registration as a System of Notification, not a Mode of Acquiring Ownership: Mirror Principle

Registration is not a mode of acquiring ownership, for it is not one of those enumerated under
Art. 712. It is simply a means of notification.20 However, if a parcel of land registered under the Torrens
System is sold, but the deed of sale if itself not registered, the deed does not constitute a conveyance
which would bind or affect the land, because the registration of voluntary sale of land is the operative act
that transmits or transfers title.21

Mirror Doctrine. Mirror doctrine provides that every person dealing with registered land may
safely rely on the correctness of the certificate of title issued therefor and is in no way obliged to go
beyond the certificate to determine the condition of the property. 22

Cases：
1. Navotas Industrial vs. Cruz
G.R. NO. 159212. September 12, 2005
An agreement to sell is a voluntary instrument as it is a willful act of the registered owner. As
such voluntary instrument, Section 50 of Act No. 496 expressly provides that the act of registration shall
be the operative act to convey and affect the land. And Section 55 of the same Act requires the
presentation of the owner's duplicate certificate of title for the registration of any deed or voluntary
instrument. As the agreement to sell involves an interest less than an estate in fee simple, the same should
have been registered by filing it with the Register of Deeds who, in turn, makes a brief memorandum
thereof upon the original and owner's duplicate certificate of title. The reason for requiring the production
of the owner's duplicate certificate in the registration of a voluntary instrument is that, being a willful act

17 Republic of the Philippines v. Court of Appeals (14 November 1997)

18 Art. 709；Tuason v. Reyes, 48 Phil. 844
19 PARAS; Property (1999), p.707
20 Bautista v. Dy Bun Chin, 49 O. G. 179
21 Camdida Villaluz, et al. v. Juan Neme, et al., L-14676, Jan. 31, 1963；Tuazon v. Raymundo, 28 Phil. 635
22 DY v. ALDEA. G.R. No. 219500, August 09, 2017
of the registered owner, it is to be presumed that he is interested in registering the instrument and would
willingly surrender, present or produce his duplicate certificate of title to the Register of Deeds in order to
accomplish such registration. '

2. Lucena v. CA
G.R. No. L-77468. August 25, 1999
From the records, it appears that title to the property was issued in the rural bank’s name only on
July 8, 1975, when the bank’s affidavit of consolidation of ownership dated June 26, 1975 was registered
with the Registry of Deeds of Oriental Mindoro. Said registration was the operative act to prompt the
Register of Deeds to cancel the title in the name of petitioners and to issue a new one in the name of the
rural bank.

3. RURAL BANK OF STA. IGNACIA, INC., v. DIMATULAC

G.R. No. 142015. April 29, 2003
The rule that persons dealing with registered lands can rely solely on the certificate of title does
not apply to banks. The degree of diligence required of banks is more than that of a good father of a
family; in keeping with their responsibility to exercise the necessary care and prudence in dealing even
with a registered or titled property. The business of a bank is affected with public interest, holding in trust
the money of the depositors, which the bank should guard against loss due to negligence or bad faith. For
this reason, the bank is not allowed to rely merely on the protective mantle of the land registration law,
which is normally accorded only to purchasers or mortgagees for value and in good faith.