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Statement of the Code Commission Explaining The cloud or doubt on title exists because:
the REASON for the Chapter on Quieting of Title: a) Of an instrument (deed or contract) or record or
a) Sec 377 of the Code of Civil Procedure claim or encumbrance or proceeding (PRICE)
provides that actions to remove a cloud
from the title to real estate shall be brought b) which is apparently valid or effective
in the province where the land is situated.
c) But is, in truth and in fact, invalid, ineffective,
b) No provision of the substantive law states voidable, or unenforceable or extinguished
under what conditions the action may be (or terminated) or barred by extinctive
brought prescription
when the instrument is not valid on its face, c) but also for the benefit of both
the remedy does not apply
TEST whether invalid on its face: d) so that he who has the right would see
If a person sued for ejectment on the every cloud of doubt over the property
strength of the contract, does he have to dissipated
produce evidence in order to defeat the
action? e) and he could afterwards without fear
- If no evidence other than the contract is introduce the improvements he may desire,
needed, it is because the contract is to use, and even to abuse the property as
invalid on its face. he deems best.
- if evidence is STILL NEEDED, it is
because the contract is apparently
valid. Reasons for allowing the action:
Test is would the owner of the property in 1) the prevention of litigation (eventual
an action at law brought by the adverse litigation)
party and founded upon the instrument or 2) protection of the true title and possession
claim, be required to offer evidence to 3) promotion of right and justice
defeat recovery?
- If proof would be essential, the cloud
exists Some Decided Doctrines where it was held that
- If proof is not needed, no cloud is cast. there existed a Cloud over the Title
a) An agent, with the written authority of his
National Grains Authority vs IAC principal to sell the latter’s property, sold the
same AFTER the death of the principal but
Real purpose of the Torrens System is to quiet antedated the contract of sale.
title to land and to stop forever any question as b) If the contract is forged
to its legality. c) A contract by an incapacitated person
An indirect or collateral attack on a Torrents d) A mortgage valid on its face and will cause
Title is not allowed prejudice although in reality invalid
Exception: where a person obtains a certificate
of title to land belonging to another and he has
full knowledge of the rights of the true owners. Requisite needed to bring an action to PREVENT a
he is guilty of fraud and may thus be cloud (action or Bill QUIA TIMET)
compelled to transfer the land to the
defrauded owner so long as it has not It must be made clear that there is a fixed
passed to the hands of an INNOCENT determination on the part of the defendant to
PURCHASER for VALUE. create a cloud
Not sufficient that the danger is merely
speculative
Rights of a Property Owner to have CLOUDS e.g.
ELIMINATED:
if the sheriff threatens to attach property which is Gallar vs Hussain
exempted from attachment, an action to prevent a Hussain sold a retro in a private instrument a
cloud on title will prosper parcel of land to Chichirita, but the right of
repurchase not exercised. Buyer sold land to
another who in turn sold and delivered the
Does the Action to Quiet Title Prescribe? same in 1919 to Gallar. Gallar sued in 1960
It depends: (after 41 yrs) the heirs of Hussain to compel
them to execute a formal deed of conveyance
1) If the plaintiff is IN POSSESSION of the so that Gallar could obtain a transfer certificate
property, the action DOES NOT PRESCRIBE. of title
Heirs interposed the defense of prescription
While the owner continues to be liable to an Gallar’s suit an action to QUIET TITLE
action, proceeding or suit upon the adverse because Gallar was the owner and the sale
claim, he has a continuing right to be had been consummated, despite the fact
given aid by the court to ascertain and that the transactions had all been merely in
determine the nature of such claim and its private instruments
effect on his title, or to assert any The suit had not prescribed, as the plaintiff
superior equity in his favor. is in possession
But if Heirs of Hussain had been in
He may WAIT until his possession is possession, Gallar’s suit would not have
disturbed or his title is attacked before prescribed for then the action would not be
taking steps to vindicate his right one to quiet title, but one to recover real
property
A buyer of land in 1931, who possesses it
from that date may still compel the seller’s Vda. De Cabrera vs. CA
successors-in-interest to execute the proper
deed of conveyance in 1954, so that the Action for reconveyance of a parcel of land
deed may be registered based on IMPLIED or CONSTRUCTIVE
TRUST prescribes in 10 years, the point of
2) If the plaintiff is NOT IN POSSESSION of the reference being the date of registration of the
property, the action MAY PRESCRIBE: deed or the date of the issuance of the
certificate of title over the property
Even if the action is brought within the this is only applicable when the plaintiff or
period of limitations, it may be barred by person enforcing the trust is NOT in
LACHES, where there is no excuse offered possession of the property, since if a person
for the failure to assert the title sooner claiming to be the owner is in actual
possession of the property, as the defendants
If somebody else has possession, the are in the instant case, the right to seek
period of prescription for the recovery of the reconveyance, which in effect, seeks to quiet
land is either 10 or 30 years, depending on title to the property does not prescribe
ORDINARY or EXTRAORDINARY
prescription.
Art. 477
Even if brought within the prescriptive The plaintiff must have LEGAL or EQUITABLE
period, the action may no longer prosper if TITLE to, or interest in the real property which is
there has been an unreasonable or the subject matter of the action. He need not be in
unjustified delay in filing the suit ---- possession of said property.
estoppel by LACHES
Necessity for the Title of the Plaintiff
As a general rule, an action to quiet title does not The plaintiff must either have the legal
prescribe (Berico vs CA) (registered) ownership or the equitable
(beneficial) ownership. Otherwise, the action will continued ownership, Y may bring the action to
not prosper. quiet title.
A possessed B’s land in bad faith adversely,
One who has complied with all the terms and publicly and continuously for 30 yrs. A is
conditions which entitle him to a homestead patent, now therefore the owner. If B still insists on
even without a right on the land is to be regarded his ownership, A may bring the action to quiet
as EQUITABLE OWNER (Nieto vs Quines) title. In this case, B can really not recover the
land anymore from A.
A owns a piece of land mortgaged to Y. If later
Non-necessity of Possession the mortgage is extinguished because of the
in possession Not in possession statute of limitations, A may bring the action to
quiet title or remove the cloud for it is evident
that the mortgage no longer exists.
prescription Does not prescribe Period prescribes
Art 479. The plaintiff must return to the
defendant all benefits he may have received
from the latter, or reimburse him for expenses
Rights *to remove cloud *to remove or that may have redounded to the plaintiff’s
*to prevent cloud prevent cloud
benefit.
*may also bring the
ordinary actions of
-ejectment Duty of Plaintiff to Make Certain
-publiciana Reimbursement
-reivindicatoria A bought land thru an agent whose authority
was NOT in writing. A then built a fence around
the land. In an action to quiet title, the principal
With my brother’s authority, and as a result of a will win, but he must REIMBURSE A for the
TRUST AGREEMENT, I registered the land of my expenses for the fence, since this has
brother in my name. Neither of us is in actual redounded to his benefit.
possession. Who may bring action to quiet title Any expense made by A for the execution or
against a stranger? registration of the contract must be
Ans. reimbursed
Either my brother or me, since my brother
has the equitable title, while I have the legal title. General Rule based on Equity
Neither of us needs possession before the action Whenever the plaintiff is shown to be legally or
is brought morally bound to restore or reimburse he must do
so.
He who comes to equity must do equity and
Art. 478 because the precise purpose of the action is
There may also be an action to quiet title or merely to quiet title and NOT to obtain some
remove a cloud therefrom when the contract, pecuniary benefits.
instrument, or other obligation has been
extinguished or has terminated or has been
barred by extinctive prescription.
Examples:
Y gave X ownership over a piece of land for 5
years. At the end of that time, if X insists on his