Professional Documents
Culture Documents
Case Digests
2015-2016
FEU JD Block JD4202
1 Cruz vs Sec of the DENR 347 SCRA 128 12/6/2000 Aguilar,
Charles Tito R.
FACTS:
Petitioners Isagani Cruz and Cesar Europa filed a suit for prohibition and mandamus as citizens
and taxpayers, assailing the constitutionality of certain provisions of Republic Act No. 8371,
otherwise known as the Indigenous People’s Rights Act of 1997 (IPRA) and its implementing
rules and regulations (IRR). The petitioners assail certain provisions of the IPRA and its IRR on
the ground that these amount to an unlawful deprivation of the State’s ownership over lands of
the public domain as well as minerals and other natural resources therein, in violation of the
Regalian Doctrine embodied in section 2, Article XII of the Constitution.
ISSUE:
Whether the provisions of IPRA contravene the Constitution?
RULING:
No, the provisions of IPRA do not contravene the Constitution. Examining the IPRA, there is
nothing in the law that grants to the Indigenous Cultural Communities (ICC)/Indigenous Peoples
(IP) ownership over the natural resources within their ancestral domain. Ownership over the
natural resources in the ancestral domains remains with the State and the rights granted by the
IPRA to the ICCs/IPs over the natural resources in their ancestral domains merely gives them,
as owners and occupants of the land on which the resources are found, the right to the small
scale utilization of these resources, and at the same time, a priority in their large scale
development and exploitation.
Additionally, ancestral lands and ancestral domains are not part of the lands of the public
domain. They are private lands and belong to the ICCs/IPs by native title, which is a concept of
private land title that existed irrespective of any royal grant from the State. However, the right of
ownership and possession by the ICCs/IPs of their ancestral domains is a limited form of
ownership and does not include the right to alienate the same.
ISSUE:
Whether unclassified lands of the public domain are automatically deemed agricultural land,
therefore making these lands alienable.
RULING:
No. To prove that the land subject of an application for registration is alienable, the applicant
must establish the existence of a positive act of the government such as a presidential
proclamation or an executive order, an administrative action, investigative reports of the Bureau
of Lands investigators, and a legislative act or statute.
A positive act declaring land as alienable and disposable is required. In keeping with the
presumption of state ownership, the Court has time and again emphasized that there must be a
positive act of the government, such as an official proclamation, declassifying inalienable public
land into disposable land for agricultural or other purposes.
The Regalian Doctrine dictates that all lands of the public domain belong to the State, that the
State is the source of any asserted right to ownership of land and charged with the conservation
of such patrimony.
All lands not otherwise appearing to be clearly within private ownership are presumed to belong
to the State. Thus, all lands that have not been acquired from the government, either by
purchase or by grant, belong to the State as part of the inalienable public domain.
ISSUE:
Whether the respondent sufficiently complied with the required period and acts of possession?
Whether the respondent was able to show that the land subject of her application was alienable
and disposable land of the public domain?
RULING:
The court held that Commonwealth Act 141 requires that before one can register one’s title over
a parcel of land, the applicant must show that he, by himself or through his predecessors-in-
interest, has been in open, continuous, exclusive and notorious possession and occupation of
the subject land under a bona fide claim of ownership since June 12, 1945 or earlier; in adverse
possession over the land for at least 30 years and the land subject of the application is alienable
and disposable land of the public domain. Petitioner was right to contend that the respondent
did not prove by incontrovertible evidence that she possessed the property in the manner and
time required by law. She did not provide the exact period when her predecessors-in-interest
started occupying the property. No extrajudicial settlement of the property from its previous
owners was shown and she did not show any relationship between the parties where she
obtained her deed of sale. She further did not present any certification from appropriate
government agency to show that the property is re-classified as disposable and alienable land
of the public domain. It is incumbent for an applicant of a land registration to provide these
incontrovertible evidences to support her claim for her application. In the absence of these
evidences, her application shall fail. Hence the petition was granted and her application was
denied.
Held:
NO. It is unconstitutional insofar as it authorizes service contracts. Although the statute employs
the phrase “financial and technical agreements” in accordance with the 1987 Constitution, it
actually treats these agreements as service contracts.
It follows that the WMCP FTAA entered into under such Act is also unconstitutional.
All provisions of the DENR AO 96-40 not in conformity with the Decision are also invalidated.
Following the literal text of the Constitution, assistance accorded by foreign-owned
corporations in the large-scale exploration, development, and utilization of petroleum, minerals
and mineral oils should be limited to “technical” or “financial” assistance only. Contrary to this,
the WMCP FTAA allows WMCP, a fully-foreign-owned mining corporation, to extend more than
mere financial or technical assistance to the State, for it permits WMCP to manage and operate
every aspect of the mining activity.
In Section 33, Chapter VI the underlying assumption is that the foreign contractor
manages the mineral resources, just like the foreign contractor in a service contract.
Chapter XII grants foreign contractors in FTAAs the same auxiliary mining rights that it
grants contractors in mineral agreements.
An FTAA contractor “has or has access to all the financing, managing, and technical
expertise…”, suggesting that some management assistance is prescribed.
Section 1.3 of the WMCP FTAA grants WMCP “the exclusive right to explore, exploit,
utilize, process and dispose of all Minerals products and by-products thereof that may be
produced from the Contract Area.”
Under Section 1.2, WMCP shall provide all “financing, technology, management and
personnel necessary for the Mining Operations”.
All in all, WMCP is granted beneficial ownership over natural resources that properly
belong to the State and are intended for the benefit of the citizens.
Casus omisus pro omisso habendus est. The phrase “management or other forms of
assistance” in the 1973 Constitution was deleted in the 1987 Constitution, which allows only
“technical or financial assistance”. The omission was intentional and purposeful.
The phrase “service contracts” has likewise been deleted in the 1987 Constitution. This
omission is indicative of a difference in purpose. The concept of “technical or financial
assistance” agreements is not identical to that of “service contracts”. The drafters, as evidenced
from their deliberations, intended to do away with service contracts which were used to
circumvent the capitalization (60%-40%) requirement. It was intended to be a safeguard to
prevent abuses. Service contracts are not allowed.
The CONCOM took into consideration the “Draft of the 1986 UP Law Constitutional
Project” when it adopted the concept of “agreements…involving either technical or financial
assistance”.
The UP Law draft proponents viewed service contracts under the 1973 Constitution as
grants of beneficial ownership of the country’s natural resources to foreign owned corporations.
While in theory, the State owns these natural resources – and Filipino citizens, their
beneficiaries – service contracts actually vested foreigners with the right to dispose, explore for,
develop, exploit, and utilize the same. This is clearly incompatible with the constitutional ideal of
nationalization of natural resources, with the Regalian doctrine, and with Philippine sovereignty.
But the proponents still recognized the need for capital and technical know-how in the
large-scale exploitation, development and utilization of natural resources. Thus, they proposed a
compromise: “agreements…involving either technical or financial assistance”. This compromise
is deemed to be more consistent with the State’s ownership of and its “full control and
supervision” over such resources.
The constitutional provision allowing the President to enter into FTAAs with foreign-
owned corporations is an exception to the general rule that participation in the nation’s natural
resources is reserved exclusively to Filipinos. Such provision must be construed strictly against
non-Filipinos.
Issue:
Whether the final decree of confirmation and registration be reopened and the term “judgment”
is within the meaning of section 513 of the Code of Civil Procedure.
Held:
Yes, the final decree of confirmation and registration can be reopened. The final "decree of
confirmation and registration" cannot be reopened except for the reasons and in the manner
stated in section 38 of the Land Registration Act. The final "decree of confirmation and
registration" provided for in the Land Registration Act is not a judgment within the meaning of
section 513 of the Code of Civil Procedure and that section is not applicable to decisions
covered or confirmed by such final decrees. The remedy provided for in section 513 of the Code
of Civil Procedure may, in land registration matters, be applied to judgments not confirmed by
final decrees.
Whether the petitioner has a better title over the wall and the land occupied by it.
Held:
Yes, the petitioner has a better title over the property. In a case where two certificates of
title include or cover the same land, the earlier in date must prevail as between the original
parties, whether the land comprised in the latter certificate be wholly or only in part comprised in
the earlier certificate. In successive registrations where more than one certificate is issued in
respect of a particular interest in land, the person holding under the prior certificate is entitled to
the land as against the person who obtained the second certificate. The decree of registration is
conclusive upon and against all persons.
The real purpose of the torrens system of land registration 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 the title was registered, the owner might 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. The proceeding for the registration of land under
the torrens system is a judicial proceeding, but it involves more in its consequences than does
an ordinary action.
The registration under the torrens system and the issuance of a certificate of title do not
give the owner any better title than he had. He does not obtain title by virtue of the certificate.
He secures his certificate by virtue of the fact that he has a fee simple title. If he obtains a
certificate of title, by mistake, to more land than he really and in fact owns, the certificate should
be corrected. If he does not already have a perfect title, he can not secure his certificate. Having
a fee simple title, and presenting sufficient proof of that fact, he is entitled to a certificate of
registration. The certificate of registration simply accumulates, in one document, a precise and
correct statement of the exact status of the fee simple title, which the owner, in fact, has. The
certificate, once issued, is the evidence of the title which the owner has. The certificate should
not be altered, changed, modified, enlarged or diminished, except to correct errors, in some
direct proceedings permitted by law. The title represented by the certificate can not be changed,
altered, modified, enlarged or diminished in a collateral proceeding.
ISSUE/S:
Whether or not defendant herein had acquired the lot in question in the aforementioned
expropriation proceedings.
HELD/RATIO:
The Court held that defendant was not able to sufficiently prove that they have acquired
the legal title over Lot 378. Several circumstances indicate that the expropriation had not been
consummated.
First, there, the entries in the docket pertaining to the expropriation case refer only to its
filing and the publication in the newspaper of the notices. Second, there was an absence of a
deed of assignment and of a TCT in favour of the Province as regards Lot 378. Third, the
property was mortgaged to Bacolod-Murcia Milling Co. Lot 378 could not have been
expropriated without the intervention of the Milling Co. And yet, the latter was not made a party
in the expropriation proceedings. And fourth, a second mortgage was constituted in favour of
the Back, which would not have accepted the mortgage had Lot 378 not belonged to the
mortgagor. Neither could said lot have been expropriated without the Bank’s knowledge and
participation.
Furthermore, in the deed executed by the Bank promising to sell the Hacienda
Mandalagan to Carlos Benares, it was explicitly stated that some particular lots had been
expropriated by the Provincial Government of Negros Occidental, thus indicating, by necessary
implication, that Lot 378 had not been expropriated.
On Sept. 8, 1973, an application for land registration was filed by respondent Garcia in
the CFI of Bataan. A copy of the application was forwarded to the SolGen thru the director of
Lands. On Feb. 19, 1974, the Director of lands filed an opposition to this application, and at the
same time the SolGen entered his appearance and authorized the Provincial Fiscal to appear
on his behalf at the hearing of the same. Subsequently, respondent IMPERIAL DEVELOPMENT
CORP., with the conformity of the respondent Garcia, filed a Motion to Substitute Party
Applicant from Maria Garcia to Imperial Corp without amending the boundaries of the area
stated in the original application. Said motion was granted by the respondent Judge Santiago.
A notice of initial hearing was sent by respondent Judge to all parties concerned, with
the warning that a party who failed to appear would be declared in default. The same notice was
likewise published in the Official Gazette and posted by the sheriff as required by law.On Jan.
23, 1975, the date of the initial hearing, neither petitioner nor his counsel was present; an order
of general default was issued by the respondent Judge on the same date. After the reception of
the evidence for the applicant before the clerk of court, the respondent Judge rendered the
questioned decision and adjudicated the lands in favor of the respondent corporation.
Thereafter, petitioner filed a Motion for New Trial on the grounds that the failure of his
counsel to appear at the initial hearing was excusable,a nd that the decision was contrary to
facts and to law. The motion was however denied.
ISSUE/S
WON respondent Judge Santiago erred in decreeing the following orders and decisions:
1. Admitting the Amended Application for Registration and adjudicating the parcels of land in
favor of respondent corporation,
2. Declaring the Director of Lands in default,
HELD/RATIO:
The petition is Granted. The Supreme Court is not convinced with the conclusion of the
respondent Judge and with the arguments of the respondent corporation that the latter, through
its predecessors-in- interest, has been in open, continuous, exclusive, and notorious possession
and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition
or ownership, for at least thirty years.
The pertinent provision of law which states: “If no person appears and answers within
the time allowed, the court may at once upon motion of the applicant, no reason to the contrary
appearing, order a general default to be recorded …,” cannot be interpreted to mean that the
court can just disregard the answer before it, which has long been filed, for such an
interpretation would be nothing less than illogical, unwarranted, and unjust.
Especially in this case where the greater public interest is involved as the land sought to
be registered is alleged to be public land, the respondent Judge should have received the
applicant’s evidence and set another date for the reception of the oppositor’s evidence. The
oppositor in the Court below and petitioner herein should have been accorded ample
opportunity to establish the government’s claim. In view of the basic presumption that lands of
whatever classification belong to the State, courts must scrutinize with care applications to
private ownership of real estate.
Section 48, paragraph b, of the Public Land Act, to wit:
SEC. 48. The following described citizens of the Philippines, occupying lands of the
public domain or claiming to own any such lands or an interest therein, but whose titles have not
been perfected or completed, may apply to the Court of First Instance of the province where the
land is located for confirmation of their claims, and the issuance of a certificate of title therefor,
under the Land Registration Act, to wit:…
(b) Those who by themselves or through their predecessors-in-interest have been in
open, continuous, exclusive and notorious possession and occupation of agricultural lands of
the public domain, under a bona fide claim of acquisition or ownership, for at least thirty years
immediately preceding the filing of the application for confirmation of title except when
prevented by war or force majeure. These shall be conclusively presumed to have performed all
the conditions essential to a Government grant and shall be entitled to a certificate of title under
the provisions of this chapter.
ISSUE/S:
HELD/RATIO:
Yes. The Writ of possession could properly issue despite the not inconsiderable period
of time that had elapsed from the date of the registration decree, since the right to the same
does not prescribe. The appellees must be declared to be entitled to the writ over the subject
lot, despite the lapse of many years, their rights thereto being imprescriptible, in enforcement of
the decree of registration and vindication of the title issued in favour of the predecessor-in-
interest. The writ may be correctly enforced against the appellants. The appellants, it must be
said, have succeeded in prolonging the controversy long enough. They should not be allowed to
continue doing so.
Issue:
In order that an alienable and disposable land of the public domain may be registered
under Section 14(1) of Presidential Decree No. 1529, otherwise known as the Property
Registration Decree, should the land be classified as alienable and disposable as of June 12,
1945 or is it sufficient that such classification occur at any time prior to the filing of the applicant
for registration provided that it is established that the applicant has been in open, continuous,
exclusive and notorious possession of the land under a bona fide claim of ownership since June
12, 1945 or earlier?
Ruling:
In connection with Section 14(1) of the Property Registration Decree, Section 48(b) of the Public
Land Act recognizes and confirms that “those who by themselves or through their predecessors
in interest have been in open, continuous, exclusive, and notorious possession and occupation
of alienable and disposable lands of the public domain, under a bona fide claim of acquisition of
ownership, since June 12, 1945” have acquired ownership of, and registrable title to, such lands
based on the length and quality of their possession.
Since Section 48(b) merely requires possession since 12 June 1945 and does not require that
the lands should have been alienable and disposable during the entire period of possession, the
possessor is entitled to secure judicial confirmation of his title thereto as soon as it is declared
alienable and disposable, subject to the timeframe imposed by Section 47 of the Public Land
Act.
The right to register granted under Section 48(b) of the Public Land Act is further confirmed by
Section 14(1) of the Property Registration Decree.
Issue:
Whether or not the court has jurisdiction to order the registration of a deed of sale
Ruling:
With reference to Section 112 of the Land Registration Act (now Section 108 of P.D. No. 1529),
the court is no longer fettered by its former limited jurisdiction which enabled it to grant relief
only in cases where there was "unanimity among the parties" or none of them raised any
"adverse claim or serious objection." Under the amended law, the court is now authorized to
hear and decide not only such noncontroversial cases but even the contentious and substantial
issues, such as the question at bar, which were beyond its competence before.
12 Arceo vs CA 185 SCRA 489 5/8/1990 Batulan, Kervin
Facts:
Spouses Arceos owned unregistered parcels of land, they had a son named Esteban
who has five children. One of Esteban’s children named Jose who was then married to Virginia
Franco. Jose and Virginia had then six children. Before the spouses Arceo passed away, they
executed a deed of donation in favor of Jose covering the subject disputed land.
Sometime in 1972, Virgina together with her children filed an application for registration
of the subject land with the cadastral court. The same was contested by the other heirs, hence
the court denied the petition and distributed the land according to the law. Soon thereafter, the
decision was appealed to the Court of Appeals which affirmed the decision of the lower court.
Hence, the petitioners now argue with the Supreme Court that the cadastral court was bereft of
the power to determine conflicting claims of ownership, and that its authority was solely to
confirm an existing title, and that anyway, all the lots should have been awarded to them by
virtue of open, continuous, exclusive, and notorious possession since 1941 (1942, when Jose
took possession of the parcels) or otherwise, by acquisitive prescription.
Issue:
Whether the Regional Trial Court has jurisdiction over the matter
Ruling:
The Supreme Court ruled that under Section 2 of the Property Registration Decree, the
jurisdiction of the Regional Trial Court, sitting as a land registration court, is no longer as
circumscribed as it was under Act No. 496, the former land registration law. The Supreme Court
said that the Decree “has eliminated the distinction between the general jurisdiction vested in
the regional trial court and the limited jurisdiction conferred upon it by the former law when
acting merely as a cadastral court.” The amendment was aimed at avoiding multiplicity of suits,
the change has simplified registration proceedings by conferring upon the required trial courts
the authority to act not only on applications for registration’ but also ‘over all petitions filed after
original registration of title, with power to hear and determine all questions arising from such
applications or petitions.
Issue:
1. Whether or not the RTC has jurisdiction to hear and try the case?
2. Whether or not the RTC has to wait for the decision of the DENR in the petition for
cancellation of survey plan in order to proceed with the proceedings?
Held:
1. Yes.
2. No.
It is well to note at this point that, in its bid to avoid multiplicity of suits and to promote the
expeditious resolution of cases, Presidential Decree (P.D.) No. 1529 eliminated the distinction
between the general jurisdiction vested in the RTC and the latter’s limited jurisdiction when
acting merely as a land registration court. Land registration courts, as such, can now hear and
decide even controversial and contentious cases, as well as those involving substantial
issues.22 When the law confers jurisdiction upon a court, the latter is deemed to have all the
necessary powers to exercise such jurisdiction to make it effective.23 It may, therefore, hear
and determine all questions that arise from a petition for registration.
In view of the nature of a Torrens title, a land registration court has the duty to determine
whether the issuance of a new certificate of title will alter a valid and existing certificate of
title.24 An application for registration of an already titled land constitutes a collateral attack on
the existing title, 25 which is not allowed by law.26 But the RTC need not wait for the decision of
the DENR in the petition to cancel the survey plan in order to determine whether the subject
property is already titled or forms part of already titled property. The court may now verify this
allegation based on the respondent’s survey plan vis-à-vis the certificates of title of the petitioner
and its predecessors-in-interest. After all, a survey plan precisely serves to establish the true
identity of the land to ensure that it does not overlap a parcel of land or a portion thereof already
covered by a previous land registration, and to forestall the possibility that it will be overlapped
by a subsequent registration of any adjoining land.
No. Since the existence or non-existence of applicants' registrable title to Lot 11 is decisive of
the validity or nullity of the homestead patent issued as aforestated on said lot the court a quo's
jurisdiction in the land registration proceedings could not have been divested by the homestead
patent's issuance. Proceedings for land registration are in rem whereas proceedings for
acquisition of homestead patent are not. A homestead patent, therefore, does not finally dispose
of the public or private character of the land as far as courts upon proceedings in rem are
concerned.
Issue:
Whether or not the land in question can be the subject of registration proceeding before the
RTC?
Held:
No. Admittedly the controversial area is within a timberland block as classification of the
municipality and certified to by the Director of Forestry as lands needed for forest purposes and
hence they are portions of the public domain which cannot be the subject of registration
proceedings. Clearly therefore the land is public land and there is no need for the Director of
Forestry to submit to the court convincing proofs that the land in dispute is not more valuable for
agriculture than for forest purposes, as there was no question of whether the land is forest land
or not.
ISSUE:
Whether the Land Registration Court can adjudge the registration of a land of the public domain.
HELD:
No. The Land Registration Court has no jurisdiction over non-registerable properties, such as
public navigable rivers which are parts of the public domain, and cannot validly adjudge the
registration of title in favor of a private applicant. Hence, the judgment of the Court of First
Instance of Pampanga as regards the Lot No. 2 of Certificate of Title No. 15856 in the name of
petitioners may be attacked at any time, either directly or collaterally, by the State which is not
bound by any prescriptive period provided for by the Statute of Limitations. The right of
reversion or reconveyance to the State of the public properties fraudulently registered and which
are not capable of private appropriation or private acquisition does not prescribe.
RA 1899 authorized the reclamation of foreshore lands by chartered cities. Invoking the
provision of RA 1899, Pasay City Council passed an ordinance for the reclamation of 300
hectares of foreshore lands, empowering the City Mayor to award and enter into reclamation
contracts, and prescribing terms and conditions therefor. The ordinance was amended
authorizing the Republic Real Estate Corporation (“RREC”) to reclaim foreshore lands of Pasay
City under certain terms and conditions. The Republic of the
Philippines (“Republic”) filed a Complaint for Recovery of Possession and Damages with Writ of
Preliminary Preventive Injunction and Mandatory Injunction before the Court of First Instance of
Rizal. The complaint was amended questioning subject Agreement between Pasay City and
RREC on the grounds that the subject matter of such Agreement is outside the commerce of
man, that its terms and conditions are violative of RA 1899, and that the said Agreement was
executed without any public bidding. CFIC issue an order that the defendants, their agents, and
all persons claiming under them, to refrain from ‘further reclaiming or committing acts of
dispossession or despoliation over any area within the Manila Bay or the
Manila Bay Beach Resort.’ It also issued a writ of preliminary injunction which enjoined the
defendants, RREC and Pasay City, their agents, and all persons claiming under them “from
further reclaiming or committing acts of dispossession.” The CFIC ruled in favor of Pasay City
and RREC. Republic appealed to CA. Before appeal could be resolved, PD 3-A was issued,
thus: “The provisions of any law to the contrary notwithstanding, the reclamation of areas under
water, whether foreshore or inland, shall be limited to the National Government or any person
authorized by it under a proper contract. All reclamations made in violation of this provision shall
be forfeited to the State without need of judicial action. Contracts for reclamation still legally
existing or whose validity has been accepted by the National Government shall be taken over by
the National Government on the basis of quantum meruit, for proper prosecution of the project
involved by administration.” Republic and the Construction Development Corporation of the
Philippines (“CDCP”) signed a Contract for the Manila-Cavite Coastal Road Project (Phases I
and II) which contract included the reclamation and development of areas covered by the
Agreement between Pasay City and RREC. Then, there was issued Presidential Decree No.
1085 which transferred to the Public Estate Authority (“PEA”) the rights and obligations of the
Republic of the Philippines under the contract between the Republic and CDCP. CA Affirmed
the Decision of the CFIC and RREC has the option to buy 60% of 21 hectares of land already
reclaimed. Pasay City and RREC filed a motion that 55 hectares had been reclaimed. CA
modified its decision and ordered the turn-over to Pasay City of the ownership and possession
of 9 lots titled in the name of CCP.
ISSUE:
Whether the CA is correct in deciding that the ownership and possession of the 9 titled lots be
turned-over Pasay City.
HELD:
No. A notice of lis pendens is necessary when the action is for recovery of possession or
ownership of a parcel of land. In the present litigation, RREC and Pasay City, as defendants in
the main case, did not counterclaim for the turnover to Pasay City of the titled lots
aforementioned. What is more, a torrens title cannot be collaterally attacked. The issue of
validity of a torrens title, whether fraudulently issued or not, may be posed only in an action
brought to impugn or annul it. Unmistakable, and cannot be ignored, is the germane provision of
Section 48 of P.D. 1529, that a certificate of title can never be the subject of a collateral attack.
It cannot be altered, modified, or cancelled except in a direct proceeding instituted in
accordance with law.
ISSUES:
a) Whether the 1969 Document is a contract recognized under the non-impairment clause
by which the government may be bound for the issuance of the IFMA.
b) Whether PICOP complied with the LGC requirement of obtaining prior approval of the
Sanggunian concerned by submitting a purported resolution of the Province of Surigao del Sur
indorsing the approval of PICOP’s application for IFMA conversion.
HELD:
a) No. A timber license is an instrument by which the State regulates the utilization and
disposition of forest resources to the end that public welfare is promoted. A timber license is not
a contract within the purview of the due process clause; it is only a license or a privilege, which
can be validly withdrawn whenever dictated by public interest or public welfare as in this case.
‘A license is merely a permit or privilege to do what otherwise would be unlawful, and is not a
contract between the authority, federal, state, or municipal, granting it and the person to whom it
is granted; neither is it a property or a property right, nor does it create a vested right; nor is it
taxation’. Thus, this Court held that the granting of license does not create irrevocable rights,
neither is it property or property rights. Since timber licenses are not contracts, the non-
impairment clause cannot be invoked.
b) No. The approval of the Sanggunian concerned is required by law, not because the local
government has control over such project, but because the local government has the duty to
protect its constituents and their stake in the implementation of the project. Again, Section 26
states that it applies to projects that “may cause pollution, climatic change, depletion of
nonrenewable resources, loss of crop land, rangeland, or forest cover, and extinction of animal
or plant species.” The local government should thus represent the communities in such area,
the very people who will be affected by flooding, landslides or even climatic change if the project
is not properly regulated, and who likewise have a stake in the resources in the area, and
deserve to be adequately compensated when these resources are exploited. Indeed, it would be
absurd to claim that the project must first be devolved to the local government before the
requirement of the national government seeking approval from the local government can be
applied. If a project has been devolved to the local government, the local government itself
would be implementing the project. That the local government would need its own approval
before implementing its own project is patently silly.
Issue:
1. Whether or not the alleged tax declarations and tax receipts are sufficient to defeat the title
over the property in the names of petitioner’s predecessors-in-interest [Spouses] Clemente
Ermac and Anunciacion Suyco
2. Whether or not laches has set in on the claims by the respondents on portions of Lot No. 666
First Issue:
Ownership of the Disputed Lot
Petitioners claim that the CA erred in relying on the hearsay and unsubstantiated testimony of
respondents, as well as on tax declarations and realty tax receipts, in order to support its ruling
that the land was owned by Claudio Ermac.
We are not persuaded. The credence given to the testimony of the witnesses for respondents is
a factual issue already passed upon and resolved by the trial and the appellate courts. It is a
hornbook doctrine that only questions of law are entertained in appeals by certiorari under Rule
45 of the Rules of Court. The trial court’s findings of fact, which the CA affirmed, are generally
conclusive and binding upon this Court.19
Moreover, while tax declarations and realty tax receipts do not conclusively prove ownership,
they may constitute strong evidence of ownership when accompanied by possession for a
period sufficient for prescription.20 Considering that respondents have been in possession of
the property for a long period of time, there is legal basis for their use of tax declarations and
realty tax receipts as additional evidence to support their claim of ownership.
Second Issue:
Prescription and Laches
Petitioners assert that the ownership claimed by respondents is barred by prescription and
laches, because it took the latter 57 years to bring the present action. We disagree.
When a party uses fraud or concealment to obtain a certificate of title to property, a constructive
trust is created in favor of the defrauded party. Since Claudio Ermac has already been
established in the present case as the original owner of the land, the registration in the name of
Clemente Ermac meant that the latter held the land in trust for all the heirs of the former. Since
respondents were in actual possession of the property, the action to enforce the trust, and
recover the property, and thereby quiet title thereto, does not prescribe.
Because laches is an equitable doctrine, its application is controlled by equitable
considerations.23 It cannot be used to defeat justice or to perpetuate fraud and injustice.24 Its
application should not prevent the rightful owners of a property to recover what has been
fraudulently registered in the name of another.
WHEREFORE, the Petition is hereby DENIED and the assailed Decision AFFIRMED. Costs
against petitioners.
Subject of the instant controversy is Lot No. 3946 of the Currimao Cadastre.
On November 19, 1998, Iglesia Ni Cristo (INC), represented by Erao G. Manalo, as corporate
sole, filed its Application for Registration of Title before the MCTC in Paoay-Currimao.
Appended to the application were the sepia or tracing cloth of plan Swo-1-001047, the technical
description of subject lot,[3] the Geodetic Engineers Certificate,[4] Tax Declaration No. (TD)
508026[5] covering the subject lot, and the September 7, 1970 Deed of Sale[6] executed by
Bernardo Bandaguio in favor of INC.
The Republic, through the Office of the Solicitor General (OSG), entered its appearance and
deputized the Provincial Prosecutor of Laoag City to appear on its behalf. It also filed an
Opposition to INCs application.
Issue:
WON THE COURT OF APPEALS ERRED ON A QUESTION OF LAW IN AFFIRMING THE
[MCTC] DECISION GRANTING THE APPLICATION FOR LAND REGISTRATION
Held:
President Marcos through a presidential decree created PEA, which was tasked with the
development, improvement, and acquisition, lease, and sale of all kinds of lands. The then
president also transferred to PEA the foreshore and offshore lands of Manila Bay under the
Manila-Cavite Coastal
Road and Reclamation Project.
Thereafter, PEA was granted patent to the reclaimed areas of land and then, years later,
PEA entered into a JVA with AMARI for the development of the Freedom Islands. These
two entered into a joint venture in the absence of any public bidding.
Later, a privilege speech was given by Senator President Maceda denouncing the
JVA as the grandmother of all scams. An investigation was conducted and it was concluded
that the lands that PEA was conveying to AMARI were lands of the public domain; the
certificates of title over the
Freedom Islands were void; and the JVA itself was illegal. This prompted Ramos to form an
investigatory committee on the legality of the JVA.
Petitioner now comes and contends that the government stands to lose billions by the
conveyance or sale of the reclaimed areas to AMARI. He also asked for the full
disclosure of the renegotiations happening between the parties.
ISSUE:
W/N stipulations in the amended JVA for the transfer to AMARI of the lands, reclaimed
or to be reclaimed, violate the Constitution.
HELD:
The ownership of lands reclaimed from foreshore and submerged areas is rooted in the
Regalian doctrine, which holds that the State owns all lands and waters of the public domain.
The 1987 Constitution recognizes the Regalian doctrine. It declares that all natural resources
are owned by the State and except for alienable agricultural lands of the public domain,
natural resources cannot be alienated.
The Amended JVA covers a reclamation area of 750 hectares. Only 157.84 hectares of the
750 hectare reclamation project have been reclaimed, and the rest of the area are still
submerged areas forming part of Manila Bay. Further, it is provided that AMARI will
reimburse the actual costs in reclaiming the areas of land and it will shoulder the other
reclamation costs to be incurred.
The foreshore and submerged areas of Manila Bay are part of the lands of the public domain,
waters and other natural resources and consequently owned by the State. As such,
foreshore and submerged areas shall not be alienable unless they are classified as
agricultural lands of the public domain. The mere reclamation of these areas by the PEA
doesn’t convert these inalienable natural resources of the State into alienable and
disposable lands of the public domain. There must be a law or presidential
proclamation officially classifying these reclaimed lands as alienable and disposable if the
law has reserved them for some public or quasi-public use.
Held/Ratio:
NO, Oh Cho is not entitled to a decree of registration because the earliest possession of the
subject land by Oh Cho’s first predecessor in interest began in 1880 and because his immediate
predecessors failed to apply for registration.
All lands that were not acquired from the Government, either by purchase or by grant, belong to
the public domain, unless the land has been in the possession of an occupant and
predecessors in interest since time immemorial since such possession would justify the
presumption that the land had never been a private property even before the Spanish conquest.
As such, the applicant does not qualify under the exception.
Oh Cho is neither entitled to a decree of registration under the provisions of the Public Land Act
since he is an alien disqualified from acquiring lands of public domain.
Arguably, Oh Cho’s immediate predecessors in interest could have been entitled to a decree of
registration had they applied for registration; consequently, the right of the immediate
predecessors in interest to a decree of registration must be deemed to also have been acquired.
However, Oh Cho’s immediate predecessors failed to apply for registration. As such, they did
not have any vested right in the lot amounting to title, which was transmissible to the applicant.
Judgment was reversed and the application for registration was dismissed.
23 Diaz vs Republic 181502 2/2/2010 Castillo, Kaycelle
Facts:
Flora Garcia filed an application for registration of a vast tract of land in Laur, Nueva Ecija and
Palayan City in 1976, alleging that she possessed the land as owner and worked, developed,
and harvested the agricultural products and benefits from the land continuously, publicly, and
adversely for more or less 26 years. The Republic of the Philippines opposed such application
because the subject land was inalienable as part of public domain for being within Fort
Magsaysay Military Reservation established in 1955.
In an earlier case (Reyes case) involving the same land, the Supreme Court already ruled that
such property was inalienable as it formed part of the military reservation. Also, the existence of
the possessory information title to which the applicant in the Reyes case anchored its claim,
was not proven. In said case therefore, the decree of registration issued was declared null and
void.
Despite the Reyes case, the CFI ruled in favor of Garcia in the present case. The Republic
appealed the decision to the CA, who reversed the CFI decision, ruling that the Reyes case
shall apply in Garcia’s case since both cases involve the same property. The CA concluded that
Garcia did not validly acquire title to the land since her ownership to the land traces to the same
possessory information title, the probative value of which was already passed upon by the SC
and because the land was situated inside military reservation.
Meanwhile, the CA approved a compromise agreement between the Republic and petitioner
Diaz, who substituted applicant Garcia, excluding from the claim a portion of the land
supposedly not within the military reservation. The OSG however moved for reconsideration
informing the CA that the land subject of the amicable settlement was still within the military
reservation. The CA annulled the compromise agreement. The SC denied the petition for review
filed by Diaz, as well as the first two MR filed. Hence, the present letter of petitioner deemed by
the SC as a third MR.
Issue:
Whether the registration of land subject of the compromise agreement between Diaz and
Republic should be granted, considering that in a previous case involving the same property,
the Supreme Court ruled that the subject land is inalienable for being part of a military
reservation, and the existence of the possessory information title, to which applicant Garcia’s
claim of title can also be traced, was not proven.
Held/Ratio:
NO, the decree of registration could not be granted since the SC Order in Reyes case
dismissing the application for registration and declaring the land as part of public domain bars
the claim of applicant Garcia and present petitioner Diaz. Petitioner’s contended private rights
over the land could not be respected because the SC had already recognized the same land to
be public forest even before the FMMR was established.
In registration cases filed under the provisions of the Public Land Act for the judicial confirmation
of an incomplete and imperfect title, an order dismissing an application for registration and
declaring the land as part of the public domain constitutes res judicata, not only against the
adverse claimant, but also against all persons. It was incumbent upon the lower court to respect
the SC ruling in Reyes case.
Before the military reservation was established, evidence showed that the subject land is largely
forested and mountainous. It was ruled in Reyes case that forest lands are not registrable under
the Public Land Act. The inclusion of a forest land in a title, whether issued using Spanish
sovereignty or under the present Torrens system of registration, nullifies the title. Forest lands
may only be registered when they have been reclassified as alienable by the President in a
clear and categorical manner (upon the recommendation of the proper department head who
has the authority to classify the lands of the public domain into alienable or disposable, timber
and mineral lands) coupled with possession by the claimant as well as that of her
predecessors-in-interest. Since petitioner did not produce such evidence, her occupation
thereof, and that of her predecessors-in- interest, could not have ripened into ownership of the
subject land because prior to the conversion of forest land as alienable land, any occupation or
possession thereof cannot be counted in reckoning compliance with the thirty-year possession
requirement under the Public Land Act.
Moreover, the fact that the possessory information title on which Diaz bases their claim of
ownership was found to be inexistent in Reyes case, thus rendering its probative value
questionable, further works against granting the decree of registration applied for.
Carino is an Igorot, and possessed the subject land for more than 30 years before the Treaty of
Paris. He and his ancestors had held the land for years. The local community recognizes them
as the owners of the said land. His grandfather lived upon it and maintained fences around the
property. His father raised cattle on the property and he had inherited the land according to
Igorot custom. However, no title was issued to them from the Spanish Crown. He tried twice to
have it registered during the Spanish occupation but was not successful. In 1901 he filed a
petition alleging ownership of the land but he was only granted a possessory title.
Relevant Laws:
• Philippine Commission’s Act No. 496
• Philippine Commission’s Act No. 926 (An Act Prescribing Rules and Regulations
Governing the Homesteading, Selling, and Leasing of Portions of the Public Domain of the
Philippine Islands) – this law dealt with acquisition of new titles and perfecting of titles begun
under the Spanish law. Benguet was one of the excluded provinces under this Act.
Carino’s contention: he could register the land under Philippine Commissions Act no. 496 which
covered the entire Philippine archipelago.
Government’s contention: Spain had title to all the lands in the Philippines except those it saw fit
to permit private titles to be acquired. There was a decree issued by Spain that required
registration within a limited time but Carino’s land wasn’t registered, hence, such land became
public land.
Issue:
Primary: Whether Carino could register title to the land albeit Benguet was excluded from Phil
Com Act No. 926.
Based on the issue: Whether Carino owns the land.
Held/Ratio:
The natives were recognized by the Spanish laws to own some lands, irrespective of any royal
grant. They didn’t intend to turn all the inhabitants into trespassers. Principle of prescription was
admitted: that if they weren’t able to produce title deeds, it is sufficient if they show ancient
possession, as a valid title by prescription.
Although there was a decree in June 25, 1880 that required everyone to get a document of title
or else lose his land, it does not appear that it meant to apply to all but only those who
wrongfully occupied royal lands. It doesn’t appear that the land of Carino was considered as
Royal land nor was it considered to have been wrongfully occupied. Two articles of the same
decree provided that titles would be attributed to those who may prove possession for the
necessary time. There were indications that registration was expected but it didn’t mean that
ownership actually gained would be lost. The effect of the proof was not to confer title to them
but to establish it.
NCIP granted private respondent’s application and was affirmed by the CA.
Issues:
1. Whether or not NCIP has jurisdiction or authority to issue temporary restraining orders
and writs of injunction
Ruling:
1. Yes, NCIP has the authority to issue temporary restraining orders and writs of injunction.
Under Sec. 5, Rule III of the NCIP Administrative Circular No. 1-03:
The NCIP through its Regional Hearing Offices shall exercise jurisdiction over all claims
and disputes involving rights of ICCs/IPs and all cases pertaining to the implementation,
enforcement, and interpretation of R.A. 8371.
The allegations in the petition prove the nature of the action and the jurisdiction of a
particular tribunal, squarely qualify it as a dispute(s) or controversy(s) over ancestral
lands/domains of ICCs/IPs within the original and exclusive jurisdiction of the NCIP-RHO.
Sec. 69 of IPRA & Section 82, Rule XV of NCIP Administrative Circular No. 1-03 says
NCIP may issue temporary restraining orders and writs of injunction without any prohibition
against the issuance of the writ when the main action is for injunction. The power to issue
temporary restraining orders or writs of injunction allows parties to a dispute over which the
NCIP has jurisdiction to seek relief against any action which may cause them grave or
irreparable damage or injury. In this case, the Regional Hearing Officer issued the injunctive writ
because its jurisdiction was called upon to protect and preserve the rights of private
respondents who are undoubtedly members of ICCs/IPs.
1. No, private respondents are not entitled to the relief granted by the Commission.
Proclamation No. 15, however, does not appear to be a definitive recognition of private
respondents ancestral land claim. The proclamation merely identifies the Molintas and
Gumangan families, the predecessors-in-interest of private respondents, as claimants of a
portion of the Busol Forest Reservation but does not acknowledge vested rights over the same.
Proclamation No. 15 explicitly withdraws the Busol Forest Reservation from sale or settlement.
The fact remains, too, that the Busol Forest Reservation was declared by the Court as
inalienable in Heirs of Gumangan v. Court of Appeals. The declaration of the Busol Forest
Reservation as such precludes its conversion into private property. The courts are not endowed
with jurisdictional competence to adjudicate forest lands.
RTC denied while the CA reversed the decision and ruled in favor of the respondents.
Issue:
Whether the character of respondents’ possession and occupation of the subject
property entitles them to avail of the relief of prohibitory injunction.
Ruling:
Yes, the character of possession and ownership by the respondents over the contested
land entitles them to the avails of the action. A right in esse means a clear and unmistakable
right. A party seeking to avail of an injunctive relief must prove that he or she possesses a right
in esse or one that is actual or existing. It should not be contingent, abstract, or future rights, or
one which may never arise.
From these findings of fact by both the trial court and the Court of Appeals, only one
conclusion can be made: that for more than thirty (30) years, neither Guaranteed Homes, Inc.
nor the local government of Parañaque in its corporate or private capacity sought to register the
accreted portion. Respondents are deemed to have acquired ownership over the subject
property through prescription. Respondents can assert such right despite the fact that they have
yet to register their title over the said lot. It must be remembered that 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. A decree of registration merely confirms, but does not confer, ownership.
Confirmation of an imperfect title over a parcel of land may be done either through
judicial proceedings or through administrative process. Respondents’ application for sales
patent, however, should not be used to prejudice or derogate what may be deemed as their
vested right over the subject property. The sales patent application should instead be
considered as a mere superfluity particularly since ownership over the land, which they seek to
buy from the State, is already vested upon them by virtue of acquisitive prescription. Moreover,
the State does not have any authority to convey a property through the issuance of a grant or a
patent if the land is no longer a public land. Nemo dat quod dat non habet. No one can give
what he does not have. Such principle is equally applicable even against a sovereign entity that
is the State.
Ruling:
ISSUE:
WON the issuance of a decree of registration to PID Corporation and Tamayo is valid despite
the Appeal filed by the Petitioner.
HELD:
No. Execution pending appeal is not applicable in a Land Registration proceeding. It is fraught
with dangerous consequences. Innocent purchasers may be misled into purchasing real
properties upon reliance on a judgement w/c may be reversed on appeal.
A torrens title issued on the basis of a judgement that is not final is a NULLITY, as it is violative
of the explicit provisions of the Land Registration Act which requires that a decree shall be
issued only after decision adjudicating the title becomes final and executory.
HELD:
LRC lacks jurisdiction to the area and parcel added on the amended plan. Under Sec. 23 of Act
496, the registration court may allow or order an amendment of the application for registration
when it apperas to the court that the amendment is necessary and proper. Under Sec 24 of
same act, the court may at anytime order an application to be amended by striking out one or
more parcels or by severance of the application. The rule is, if the amendment is consist of an
inclusion of area or parcel of land not previously included in the original application for
registration a new publication of the amended plan must be made. The purpose of the new
publication is to give notice to all persons concerned regarding the amended application.
WIthout the new publication the registration court cannot acquire jurisdiction over the area or
parcel of land that is added to the area covered by the original application, and the decision of
the registration court would be nullity in so far as the decision concerns the newly included land.
ISSUE:
Whether or not the title can be dealt with in the name of a “third party”.
HELD:
Yes. First of all, it was proven that Mendoza caused the registration in the name of Cruz
pursuant to their contract of sale. Second, Mendoza overlooks Section 29 of the Land
Registration Act which expressly authorizes the registration of the land subject matter of a
registration proceeding in the name of the buyer (Cruz) or of the person to whom the land has
been conveyed by an instrument executed during the interval of time between the filing of the
application for registration and the issuance of the decree of title. A stranger or a third party may
be dealt with in the land registration proceedings. The only requirements of the law are: (1) that
the instrument be presented to the court by the interested party together with a motion that the
same be considered in relation with the application; and (2) that prior notice be given to the
parties to the case. And the peculiar facts and circumstances obtaining in this case show that
these requirements have been complied with in this case.
Issue:
Whether the publication in general circulation of the notice of hearing is a mandatory
requirement for land registration
Held:
Yes. Although the law only requires notice by publication in the Official Gazette, publication in a
newspaper of general circulation is still required. The reason is due process and the reality that
the Official Gazette is not widely read and circulated as newspaper and is oftentimes delayed.
33 Adviento vs Alvarez 562 SCRA 434 8/20/2008 Chua, Christian
Edmund
Facts:
Adviento allegedly acquired the property against the interest of Alvarez. He traced his title to a
person, who bought the property from Gaya. Alvarez allegedly constructed a building in the
subject property. Adviento filed a case for damages against Alvarez. The RTC and CA ruled in
favor of Alvarez. Among other faults of the Adviento, Adviento failed to give notice to the
respondents for the registration of the property.
Issue:
Whether publication of the notice is enough to inform the respondents about the registration of
the property
Held:
No. The applicable law for the case was Act No. 496. Under Act No. 496, applicants, who wants
to register an imperfect title, must provide notice to the contiguous owners, occupants and those
known to have interests in the property, among other requirements. In this case, the
respondents have interests in the property and Adviento admitted that notice was not provided
to the respondents. Hence, notice of publication was not enough to fulfill the requirements of
land registration.
Issue:
Whether the decision is not binding to the respondents because they were not parties in the
case
Held:
No. A land registration case is a proceeding in rem. The decision rendered is binding upon the
whole world.
ISSUE:
Whether the reopening of the cadastral case is jurisdictionally tainted by lack of publication.
HELD:
NO. Sec. 1 of R.A. No. 931 establishes the procedure for reopening cadastral proceedings.
Such procedure does not include publication. Neither publication is mentioned in any of the
provisions of the said law. Sec. 1 of the said law merely states that, “the competent Court of
First Instance, upon receiving such petition, shall notify the Government, through the Solicitor
General.”
If a prospective intervenor claims a piece of land by an alleged right that has occurred prior to
the institution of the original cadastral case, a proceeding in rem, he is to be deemed to have
received notice through publication therein made. If his rights are derived from government after
the land has been declared part of the public domain by the cadastral court, the notice to the
government of a reopening petition as provided by law, should suffice. For, the government is
supposed to take up the cudgels for a public land grantee, or, at the very least, notify the latter.
In sum, the subject matter of the petition for reopening – a parcel of land claimed by the
respondent – was already embraced in the cadastral proceedings filed by the Director of lands.
Consequently, the Baguio cadastral already acquired jurisdiction over the said property. The
petition need not be published. the authority of the cadastral court over the reopening
proceedings below is not impaired by failure of publication.
ISSUE:
HELD:
YES. Res judicata operates in the case at bar with its requisites present in the case: [a] the
former judgment must be final, [b] it must have been' rendered by a court having jurisdiction of
the subject matter and of the parties, [c] it must be a judgment on the merits and [d] there must
be between the first and second actions identity of parties, of subject matter and of cause of
action. The inclusion of private respondent Cayaba's co owner, Bienvenido Noriega, Sr., in the
application for registration does not result in a difference in parties between the two cases. One
right of a co owner is to defend in court the interests of the co ownership. Although the first
action was captioned for the recovery of possession, possession is sought based on ownership,
thus the action was one in the nature of accion reinvidicatoria. The second action is for
registration of title where the registration is sought based on one’s ownership over the property.
The difference between the two is that the plaintiff seeks to exclude other persons from
ownership over the property in the first action while it seeks to exclude the whole world in the
second action. The cause of action however remains the same. The employment of two
different actions does not allow one to escape against the principle of res judicata where one
and the same cause of action cannot be litigated twice. Although the first action was litigated
before a competent court of general jurisdiction and the other over a registration court is of no
significance since that both courts should be of equal jurisdiction is not a requisite for res
judicata to apply. For convenience, the SC should decide whether to dismiss the application for
registration or the opposition thereto. Because the conflicting claims of both parties have been
settled and decided by the court previously, it upheld the finality of its decision and dismissed
the petition.
Whether the respondent is able to provide sufficient and substantial evidence as complying with
the requirement of law for confirmation of her ownership of the land in dispute.
HELD:
NO. The most basic rule in land registration cases is that “no person is entitled to have land
registered under the Cadastral or Torrens system unless he is the owner in fee simple of the
same, even though there is no opposition presented against such registration by third persons.
In order that the petitioner for the registration of his land shall be permitted to have the same
registered, and to have the benefit resulting from the certificate of title the burden is upon him to
show that he is the real and absolute owner, in fee simple. Equally basic is the rule that no
public land can be acquired by private persons without any grant, express or implied, from
government. A grant is conclusively presumed by law when the claimant, by himself or through
his predecessors in interest, has occupied the land openly, continuously, exclusively, and
under a claim of title since 26 July 1894 or prior thereto. The doctrine upon which these rules
are based is that all lands were not acquired from government, either by purchase or by grant,
belong to the public domain.
It is incumbent upon the private respondent to prove that the alleged 20 year or more
possession of Diaz and Vinluan which supposedly formed part of the 30 year period prior to the
filing of the application, was open, continuous, exclusive, notorious and in concept of owners.
This burden, private respondent failed to discharge to the satisfaction of the court. The bare
assertion that Diaz and Vinluan had been in the possession of the property for more than 20
years found in private respondent’s declaration is hardly the “well nigh incontrovertible”
evidence required in cases of this nature. Private respondent should have presented specific
facts that would have shown the nature of such possession. The phrase “adverse, continuous,
open, public and peaceful and in concept of owner” by which she described her own possession
in relation to that of her predecessors in interest are mere conclusions of law which require
factual support and substantiation.
Private respondent having failed to prove by convincing, positive proof that she has complied
with the requirements of the law for confirmation of her title to the land applied for, it ws error on
the part of the lower court to have granted her application.
FACTS
In a compromise agreement entered into between different parties in an application for
registration of lot 7454 situated in the Municipality of Santiago, province of Isabela now
transferred to Nueva Vizcaya, Judge Sofronio G. Sayo (respondent) approved and confirmed
such and the title and ownership of the parties in accordance with its terms on March 5, 1981.
The Solicitor General has taken the present recourse in a bid to have the decision on March 5,
1981 annulled as being patently void and rendered in excess of jurisdiction or with grave abuse
of discretion contending that:
b) The fact that the lot 7454 was never claimed to be public land by the Director of Lands in
the proper cadastral proceedings
c) The prewar certification of the National Library appearing in the Bureau of Archives that
the property in question was registered under the Spanish system of land registration as private
property owned by Don Liberato Bayaua, applicants predecessors-in-interest.
d) The proceedings for registration brought under Act 496 (Torrents Act) presupposes that
there is already a title to be confirmed by teh court, distinguishing it from proceedings under the
Public Land Act where the presumption is always that the land involved belongs to the State.
ISSUE
Whether or not the subject land belongs to the respondents as part of their private property.
HELD/RATIO
No. The respondents failed in showing by clear and convincing evidence that the property
involved was acquired by him or his ancestors either by composition title from the Spanish
Government or by possessory information title, or any other means for the proper acquisition of
public lands. The applicant must present competent and persuasive proof to substantiate his
claim; he may not rely on general statements, or mere conclusion of law other than factual
evidence of possession and title. Hence, the property must be held to be part of the public
domain.
Th principal document relied upon and presented by the applicant to prove the private character
of the land was a photocopy of a certification of the National Library to the effect that the
property in question was registered under the Spanish System of land registration as private
property of Don Liberato Bayaua. But the court ruled that Spanish document cannot be
considered a title to property, it not being one of the grants made during the Spanish regime and
obviously not constituting primary evidence of ownership.
The argument that the initiation of an application for registration of land under the Torrens Act is
proof that the land is of private ownership cannot be given merit. It is precisely the character of
the land as private which the applicant has the obligation of establishing. In the absence of any
adverse claim to show a proper title for registration, the applicant is not assured of a favorable
decree by the Land Registration Act 496.
Further, the decision of the Registration Court is based solely on the compromise agreement of
the parties.The compromise agreement included private persons who had not adduced any
competent evidence of their ownership over the land subject of the registration proceeding.
What was done was to consider the compromise agreement as proof of title of the parties taking
part therein, a totally unacceptable proposition.
As to the Informacion posesoria invoked by the respondents, it requires condition such as
inscription in the Registry of Property and actual, public, adverse and uninterrupted possession
of the land for 20 years to be considered a mode to acquire public lands. The proof of fulfillment
of these conditions are absent, hence, cannot be considered as anything more than prima facie
evidence of possession.
Under the regalian doctrine, all lands not otherwise appearing to be clearly within private
ownership are presumed to belong to the state. Hence, it is that all applicants in land
registration proceedings have the burden of overcoming the presumption that the land thus
sought to be registered forms part of the public domain.
It thus appears that the compromise agreement and the judgment approving it must be, as they
are hereby, declared null and void and set aside.
FACTS
Petitioner Charles L. Ong in his behalf and as duly representative of the brothers Roberto,
Alberto, and Cesar files and Application for Registration of Title over a lot situated in Brgy.
Anolid, Mangaldan, Pangasinan. They alleged that they are the co-owners of the lot and an
exclusive property purchased from spouses Tony Bautista and Alicia Villamil on August 24,
1998. That they and their predecessors-in-interest have been in an open, continuous and
peaceful possession of the subject lot in the concept of owners for more than thirty (30) years.
The Office of the Solicitor general opposed the application contending that the applicants nor
their predecessors-in-interest have been in an open, continuous, exclusive and notorious
possession and occupation of the subject lot as required by the Section 48(b) of Commonwealth
Act No. 141, as amended by Presidential Decree (PD) No. 1073. Also the applicants failed to
adduce any muniment of title to prove their claims; that the tax declaration appended to the
application does not appear genuine and merely shows pretended possession of recent vintage;
that the application was filed beyond the period allowed under PD No. 892 and that the subject
lot is part of the public domain which cannot be the subject of private appropriation.
The trial court rendered a decision in favor of the petitioner and his brothers. In an appeal to the
supreme court , the decision was reversed and set aside. The CA ruleed that despite the land
being of public domain, it is part of those disposable and alienable lands and is incumbent upon
the applicant to prove that they possessed the lot in the nature and for the duration required by
law. However, petitioner failed to prove that he or his predecessors-in-interest have been in
adverse possession of the lot in the concept of owner since June 12, 1945. It was also noted
that the earliest tax declaration presented is dated 1971. Hence, could not fairly claim posession
of the land prior to 1971. Neither they can prove that they actually occupied the lot prior to the
filing of the application.
ISSUE
Whether or not Ong and his brothers and their predecessors-in-interest have been in an open,
continuous and notorious and peaceful possession of the subject lot in the concept of owners
for more than thirty (30) years.
HELD/RATIO
No. Petitioner failed to prove that he and his predecessors-in-interest have been in an open,
continuous and notorious and peaceful possession of the subject lot since June 12, 1945. The
records shows that petitioners bought the lot from spouses Tony Bautista abd Alicia Villamil on
August 24, 1998 who in turn purchased the same from spouses Teofilo Abellera on Jnauary 16,
1997. The latter bought the subject lot from Cynthia cacho et al on July 10, 1979. The earliest
tax declaration submitted was issued in 1971 in the name of of spouses Cacho. If to tack the
petitioners claim of ownership with his predecessors in 1971, still it would fall short of the
required possession from June 12, 1945.
Moreover, petitioner’s evidence failed to establish specific acts of ownership to substantiate the
claim that he and his predecessors-in-interest possessed and occupied the subject lot in the
nature and duration required by law. Petitioners admitted that none of them occupied the
subject lot. No improvements were made thereon and the most that they did was to visit the lot
on several occasions. Tony Bautista, petitioner’s predecessor-in-interest also testified that they
also never actually occupied the lot.
As held in Republic vs Alconaba: “ the law speaks of possession and occupation. Since these
words are separated by the conjunction and the clear intention of the law is not to make one
synonymous with the other. Possession is broader than occupation because it includes
constructive possession. When, therefore, the law adds the word occupation, it seeks to delimit
the all encompassing effect of constructive possession. Taken together with the words open,
continuous, exclusive and notorious, the word occupation serves to highlight the fact that for an
applicant to qualify, his possession must not be a mere fiction. Actual possession of a land
consists in the manifestation of acts of dominion over it of such a nature as a party would
naturally exercise over his own property.
FACTS
Respondents Guinto-Aldana filed with the RTC of Las Pinas City an application for registration
of title over teo pieces of land in talango Pamplona Uno. Las Pinas City. They professed
themselves to be co-owners of these lots having acquired them by successsion from their
predecessors (parents of the respondents) who in turn had acquired the property under a 1969
documents denominated as “Kasulatan sa Paghahari ng Lupa na Labas sa Hukuman na may
Pagpaparaya at Bilihan”. Under this document, the parents of the respondent acquired such in
for a consideration in his respective share from Romualdo Guinto. They also alleged that until
the time of the application, they and their predecessors-in-interest have been in an actual, open,
peaceful, adverse, exclusive and continuous possession of these lots in the concept of owner
and that they had consistently declared the property in their name for purposes of real estate
taxation.
In support of their application, respondents submitted the blueprint of plans well as copies of the
Technical descriptions of each lot, certification from the geodetic engineer and the pertinent tax
declarations together with the receipts of payment therefor. They averred that the property’s
original tracing cloth plan had previously been submitted to the RTC of Las Pinas on a previous
registration case in an LRC case No. LP -125.
Opposing the application. Petitioner through the Office of the City Prosecutor, advanced that the
land sought to be registered were inalienable lands of the public domain; that neither of the
respondents nor their predecessors-in-interest had been in prior possession thereof; and that
the muniment of title and the tax declaration submitted to the court did not constitute competent
and sufficient evidence of bona fide acquisition or of a prior possession in the concept of owner.
Petitioner Zenaida Guinto-Aldana,in her testimony declared that the subject land was owned by
her family since she was 5 years of age and her grandparents had lived in the lots until teh
death of her grandmother in 1961. That aside from her grandparents, there are caretakers who
had tilled the land and who had lived until sometime between 1980-1990. She remembered that
her grandmother constructed a house on the property. That sometime on 1970, her family built
an adobe fence around the perimeter and on 1990s they reinforced it with hollow blocks and
concrete after an inundation caused by the flood. She claimed that she and her father had been
religiously paying real estate taxes shown in the tax declarations and tax receipts submitted to
the court. Zenaida’s claim or prior open, exclusive and continuous possession of the land was
corroborated by Josefina Luna, one of the adjoining lot owner, who strongly declared that
Zenaida’s parents are the owner of the land had not of her knowledge that she came to know of
any other claim.
The Regional Trial Court on July 10, 2003 rendered a decision denying the application for
registration. It found that respondents failed to establish with certainty the identity of the lots
applied for registration because of failure to submit to the court the original tracing cloth plan s
mandated by the Presidential Decree no. 1529.
Upon appeal, the CA reversed the decision of the RTC. In the petition to the SC, Petitioner
avers that the CA committed an error as Section 17 of PD No. 1529 states that the submission
in court of the original tracing cloth plan of the property sought to be registered is a mandatory
requirement in registration proceedings in order to establish the exact identity of the property.
Invoking Del Rosario vs Republic of the Philippines, petitioner believes that respondents are not
relieved of their procedural obligation to adduce in evidence the original copy of the plan,
because they could have easily retrieved it from the LRA and presented it in court. It suggests
that the blueprint submitted cannot be an approximate substantial compliance of the Section 17
of PD no. 1529 and is illegible ad unreadable for it does not even bear the certification of the
lands Management Bureau. Further, it also attacks claim of the respondent’s prior possession
as there was no clear and convincing evidence to show proof.
ISSUE
1) Whether or not blue print, technical specifications and tax declaration and real estate
payments are sufficient evidence to provide identification of the subject land claimed of
ownership in compliance of the Section 17 of PD 1529.
2) Whether or not the respondents has exercised acts of dominions over the land under a
bonafide claim of ownership since June 12, 1945 or earlier.
HELD/RATIO
1) Yes. If the reason for requiring an applicant to adduce in evidence the original tracing
cloth plan is merely to provide a convenient and necessary means to afford certainty as to the
exact identity of the property applied for registration and to ensure that the same does not
overlap with the boundaries of the adjoining lots, there stands to be no reason why a registration
application must be denied for failure to present the original tracing cloth plan, especially when it
is accompanied by pieces of evidence- such as a duly executed blueprint of the survey plan and
a duly executed technical description of the property which may likewise substantially and with
as much certainty prove the limits and extent of the property sought to be registered.
As laid down in the doctrinal precept laid down in the republic of the Philippines V CA
and in the later cases of spouses Recto vs Republic of the Philippines and Republic of
the Philippines vs Hubilla, that while the best evidence to identify a piece of land for
registration purposes is the original tracing cloth plan, blueprint copies and other evidence
could also provide sufficient identification. Therewith, the submission of the respondents of the
blueprint plan together with the technical description of the property operates as substantial
compliance with the legal requirements of the law. It was noted that the blueprint
submitted proceeded officially from the Land Management services and bears the
approval of Surveys division Chief and was endorsed by the Community Environment
and Natural resources Office of the DENR. This accompanied by the technical
descriptions of the lot executed and verified also by the Geodetic Engineer.
2) Yes. Respondents had established evidence that she and her predecessors-in-interest
have exercised acts of dominion over the land complying the number of more than 30 years in
an open, continuous, exclusive and notorious possession and occupation of the land.
From the records, possession of the respondents of the said land dates back to 1937 and had
been declared for taxation by Zenaida’s father. Such declaration for tax purposes continues up
to 1979, 1985 then to 1994. The respondents could have served further proof of declarations if
not for the filed being burned as certified by the Office of the Rizal Provincial Assessor when a
fire broke out in that certain office. Also, respondent’s receipt for tax expenditures between 1977
and 2001 are likewise fleshed out in the records and in these documents the herein
respondents are the name owners of the property with Zenaida being identified as the one who
delivered the payment in 1994 receipts.
These unbroken chain of positive acts exercised by respondent’s predecessors as
demonstrated by these pieces of evidence, yield no other conclusion than that as early as1937,
they had already demonstrated an unmistakable claim to the property.
No. Petitioner failed to prove that he and his predecessors-in-interest have been in an open,
continuous and notorious and peaceful possession of the subject lot since June 12, 1945. The
records shows that petitioners bought the lot from spouses Tony Bautista and Alicia Villamil on
August 24, 1998 who in turn purchased the same from spouses Teofilo Abellera on January 16,
1997. The latter bought the subject lot from Cynthia cacho et al on July 10, 1979. The earliest
tax declaration submitted was issued in 1971 in the name of of spouses Cacho. If to tack the
petitioners claim of ownership with his predecessors in 1971, still it would fall short of the
required possession from June 12, 1945.
Moreover, petitioner’s evidence failed to establish specific acts of ownership to substantiate the
claim that he and his predecessors-in-interest possessed and occupied the subject lot in the
nature and duration required by law. Petitioners admitted that none of them occupied the
subject lot. No improvements were made thereon and the most that they did was to visit the lot
on several occasions. Tony Bautista, petitioner’s predecessor-in-interest also testified that they
also never actually occupied the lot.
As held in Republic vs Alconaba: “ the law speaks of possession and occupation. Since these
words are separated by the conjunction and the clear intention of the law is not to make one
synonymous with the other. Possession is broader than occupation because it includes
constructive possession. When, therefore, the law adds the word occupation, it seeks to delimit
the all encompassing effect of constructive possession. Taken together with the words open,
continuous, exclusive and notorious, the word occupation serves to highlight the fact that for an
applicant to qualify, his possession must not be a mere fiction. Actual possession of a land
consists in the manifestation of acts of dominion over it of such a nature as a party would
naturally exercise over his own property.
Land registration proceedings are governed by the rule that while tax declarations and tax realty
tax payments are not conclusive evidence of ownership, they are a good indication of
possession in the concept of owner these documents such as tax declarations and realty tax
payments constitute at least proof that a holder has a claim of title over the property, for no one
in his right mind would be paying taxes for a property that is not in his actual or at least
constructive possession. It announces his adverse claim against all other parties who may have
conflict with his interest.
Indeed the respondents have been in possession of the land in the concept of an owner which
makes the right thereto unquestionably settled and hence, deserving protection under the law.
Issue/s:
1. WON the land was not sufficiently identified by presenting a blueprint copy of the survey
plan?
2. WON the nature and length of possession required by law had not been adequately
established
Held/Ratio:
1. NO.
As a rule, the best evidence to identify a piece of land for registration purposes was the original
tracing cloth plan from the Bureau of Lands, however, blueprint copies and other evidence could
also provide sufficient identification.
Here, there was a considerable compliance with the requirement of the law as the subject
property was sufficiently identified with the presentation of the blueprint copy which was certified
by the Bureau of Lands including the technical description that goes with it. Hence, the subject
land was sufficiently identified by the blueprint copy of the survey plan.
2. YES.
As a rule, the applicant must present specific acts of ownership to substantiate the claim and
cannot offer general statements which are mere conclusions of law that factual evidence of
possession.
Here there is not enough evidence to support his claim except his own unsupported
declarations.
The petition was GRANTED. Although the subject property was sufficiently identified, the
applicant has failed to prove the peaceful, exclusive, continuous and open possession
necessary to support his claim of ownership. Hence, the registration was denied.
Issue/s:
WON the issuance of a writ of possession was proper. (procedure and reconstitution of original
certificate of title)
Held/Ratio:
NO. As a rule, writ of possession may be issued only in the following cases; 1)land registration
proceeding; 2)extra-judicial foreclosure of REM; 3)judicial foreclosure of mortgage, a quasi in
rem proceeding, provided that the mortgagor is in possession of the mortgaged realty and no
third person, not a party to the foreclosure suit, had intervened; 4)execution sales. In land
registration case, a writ of possession may be issued only pursuant to a decree of registration in
an original land registration proceedings “not only against the person who has been defeated in
a registration case but also against anyone adversely occupying the land or any portion thereof
during the proceedings up to the issuance of the decree. However, it cannot be issued in a
petition for reconstitution of an allegedly lost or destroyed certificate of title. Reconstitution does
not confirm or adjudicate ownership over the property covered by the reconstituted title as in
original land registration proceedings where, in the latter, a writ of possession may be issued to
place the applicant-owner in possession. The purpose of the reconstitution of any document,
book or record is to have the same reproduced, after observing the procedure prescribed by law
in the same form they were when the loss or destruction occurred. A person who seeks a
reconstitution of a certificate of title over a property he does not actually possess cannot, by a
mere motion for the issuance of a writ of possession, which is summary in nature, deprive the
actual occupants of possession thereof. Possession and/or ownership of the property should be
threshed out in a separate proceeding. Here, petitioners were not mere possessors of the
properties covered by the reconbsituted titles, they are possessors under claim of ownership.
Actual possession under claim of ownership raises a disputable presumption of ownership.
Hence, the writ of possession was not proper.
Petition GRANTED.
Issue/s:
1. WON the principles of prescription and laches applies to the decision in a land registration
cases.
2. WON the judgment in Land Registration cases may be executed on mition or enforced by
action within the purview of Rule 39.
Held/Ratio:
1. NO. In the case of Sta. Ana v. Menla (Sta. Ana Doctrine), the court extensively explained that
the provision of Sec. 6 Rule 39 refers to civil actions and is not applicable to special
proceedings, such as a land registration case. This is so because a party in a civilaction must
immediately enforce a judgment that is secured as against the adverse party, and his failure to
act to enforce the same within a reasonable time as provided in the Rules makes the decision
unenforceable against the losing party. In special proceedings, the purpose is to establish a
status, condition or fact; in land registration proceedings, the ownership by a person of a parcel
of land is sought to be established. After the ownership has been proved and confirmed by
judicial declaration, no further proceeding to enforce said ownership is necessary, except when
the adverse or losing party had been in possession of the land and the winning party desires to
oust him therefrom. Further, There is nothing in the law that limits the period within which the
court may order or issue a decree. The reason is xxx that the judgment is merely declaratory in
character and does not need to be asserted or enforced against the adverse party. Furthermore,
the issuance of a decree is a ministerial duty both of the judge and of the Land Registration
Commission; failure of the court or of the clerk to issue the decree for the reason that no motion
therefor has been filed cannot prejudice the owner, or the person in whom the land is ordered to
be registered.
2. NO. Sec. 39 of PD 1529, lays down the procedure that interposes between the rendition of
judgment and the issuance of certificate of title. No obligation whatsoever is imposed by Section
39 on the prevailing applicant or oppositor even as a precondition to the issuance of the title.
The obligations provided in the Section are levied on the land court (that is to issue an order
directing the Land Registration Commissioner to issue in turn the corresponding decree of
registration), its clerk of court (that is to transmit copies of the judgment and the order to the
Commissioner), and the Land Registration Commissioner (that is to cause the preparation of the
decree of registration and the transmittal thereof to the Register of Deeds). All these obligations
are ministerial on the officers charged with their performance and thus generally beyond
discretion of amendment or review. The failure on the part of the administrative authorities to do
their part in the issuance of the decree of registration cannot oust the prevailing party from
ownership of the land. Neither the failure of such applicant to follow up with said authorities can.
Petition DENIED
HELD:
It is evident from all three titles─CLT’s, Hipolito’s and Dimson’s—that the properties they purport
to cover were “originally registered on 19 April 1917” in the Registration Book of the Office of the
Register of Deeds of Rizal. These titles could be affirmed only if it can be proven that OCT No.
994 registered on 19 April 1917 had actually existed. CLT were given the opportunity to submit
such proof but it did not. The established legal principle in actions for annulment or
reconveyance of title is that a party seeking it should establish not merely by a preponderance
of evidence but by clear and convincing evidence that the land sought to be reconveyed is his.
In an action to recover, the property must be identified, and the plaintiff must rely on the strength
of his title and not on the weakness of the defendant's claim.
Considering that CLT clearly failed to meet the burden of proof reposed in them as plaintiffs in
the action for annulment of title and recovery of possession, there is a case to be made for
ordering the dismissal of their original complaints before the trial court.
As it appears on the record, OCT No. 994, the mother title was received for transcription by the
Register of Deeds on 3 May 1917 based from the issuance of the decree of registration on 17
April 1917. Obviously, April 19, 1917 is not the date of inscription or the date of transcription of
the decree into the Original Certificate of Title. Thus, such date cannot be considered as the
date of the title or the date when the title took effect. It appears that the transcription of the
decree was done on the date it was received by the Register of Deeds of Rizal on May 3, 1917.
There is a marked distinction between the entry of the decree and the entry of the certificate of
title; the entry of the decree is made by the chief clerk of the land registration and the entry of
the certificate of title is made by the register of deeds. The certificate of title is issued in
pursuance of the decree of registration. It was stressed that what stands as the certificate of the
title is the transcript of the decree of registration made by the registrar of deeds in the registry.
Moreover, it is only after the transcription of the decree by the register of deeds that the
certificate of title is to take effect.
Hence, any title that traces its source to OCT No. 994 dated 17 April 1917 is void, for such
mother title is inexistent. The fact that CLT titles made specific reference to an OCT No. 994
dated 17 April 1917 casts doubt on the validity of such titles since they refer to an inexistent
OCT. This error alone is, in fact, sufficient to invalidate the CLT claims over the subject property
if singular reliance is placed by them on the dates appearing on their respective titles.
The Court hereby constitutes a Special Division of the Court of Appeals to hear the case on
remand. In ascertaining which of the conflicting claims of title should prevail, the Special
Division is directed to make further determinations based on the evidence already on record and
such other evidence as may be presented at the proceedings before it.
WHEREFORE, the instant cases are hereby REMANDED to the Special Division of the Court of
Appeals for further proceedings.
However, the sale in favor of Leonarda was not registered. Thus, no title was issued in
her name. The subject property remained in the name of the Burgos siblings who also continued
paying the real estate taxes thereon.The RTC rendered its decision declaring that the Deed of
Sale in favor of Delos Reyes was falsified as the signatures of the spouses Rufloe had been
forged. The trial court ruled that Delos Reyes did not acquire ownership over the subject
property. Such was the state of things when the Rufloes filed their complaint for Declaration of
Nullity of Contract and Cancellationof Transfer Certificate of Titles against respondents
Leonarda and the Burgos siblings, and Delos Reyes.
The trial court rendered a decision declaring that Leonarda and the Burgos siblings were
not innocent purchasers for value and did not have a better right to the property in question than
the true and legal owners, the Rufloes. The trial court also held that the subsequent conveyance
of the disputed property to Leonarda by the Burgos siblings was simulated to make it appear
that Leonarda was a buyer in good faith. The CA reversed and set aside that of the trial court,
declaring in the process that respondents were purchasers in goodfaith and for value. Thus, this
petition.
ISSUE/S:
(1) Whether the sale of the subject property by Delos Reyes to the Burgos siblings and the
subsequent sale by thesiblings to Leonarda were valid and binding; and
(2) Whether respondents were innocent purchasers in good faith and for value despite the
forged deed of sale of their transferor Delos Reyes
HELD/RATIO:
Petition Granted. The issue concerning the validity of the deed of sale between the
Rufloes and Delos Reyes had already been resolved with finality which declared that the
signatures of the alleged vendors, Angel and Adoracion Rufloe, had been forged. It is
undisputed that the forged deed of sale was null and void and conveyed no title. It is a well-
settled principle that no one can give what one does not have, nemo dat quod non habet. One
can sell only what one owns or is authorized to sell, and the buyer can acquire no more right
than what the seller can transfer legally. Due to the forged deed of sale, Delos Reyes acquired
no right over the subject property which she could convey to the Burgos siblings. All the
transactions subsequent to the falsified sale between the spouses Rufloe and Delos Reyes are
likewise void, including the sale made by the Burgos siblings to their aunt, Leonarda.
As a general rule, every person dealing with registered land, as in this case, may safely
rely on the correctness of the certificate of title issued therefor and will in no way oblige him to
go beyond the certificate to determine the condition of the property. However, this rule admits of
an unchallenged exception: . . . a person dealing with registered land has a right to rely on the
Torrens certificate of title and to dispense with the need of inquiring further except when the
party has actual knowledge of facts and circumstances that would impel a reasonably cautious
man to make such inquiry or when the purchaser has knowledge of a defect or the lack of title in
his vendor or of sufficient facts to induce a reasonably prudent man to inquire into the status of
the title of the property in litigation.
This simulated sale is the handiwork of Amado who apparently acted advisedly to make
it appear that his sister Leonarda as the second transferee of the property is an innocent
purchaser for value. Since he or his children could not plausibly assume the stamp of a buyer in
good faith from the forger Elvira Delos Reyes.
Issue:
Whether the Title No. 1089 held by the plaintiffs-appellees (Pajomayo) which was issued
in virtue of the homestead patent should prevail over the Title No. 14034 held by the
defendants-appellants (Manipon) which was issued in connection with the cadastral
proceedings.
Held:
Yes, Title No. 1089 should prevail. The Court held the trial court correctly ruled that
plaintiff's O.C.T. No. 1089 prevails over defendants' O.C.T. No. 14034, the former having been
issued on 27 November 1931, or prior to the issuance of the latter on 1 April1957.
The plaintiffs base their claim of title to the land in question, on Original Certificate of Title No.
1089 issued to their father, Diego Pajomayo, on November 27, 1931 in virtue of a free patent
that was granted to him. Once a homestead patent granted in accordance with the Public Land
Act is registered pursuant to Section 122 of Act 496, as amended, the Certificate of Title issued
in virtue of said patent has the force and effect of a Torrens Title under the Land Registration
Act.
When one of the two titles is held to be superior over the other, one should be declared null and
void and should be ordered cancelled. And if a party is declared to be the owner of a parcel of
land pursuant to a valid certificate of title said party is entitled to the possession of the land
covered by said valid title. The decree of registration issued in the cadastral proceedings does
not have the effect of annulling the title that had previously been issued in accordance with the
provisions of the land Registration Law (Act 496).
Respondent filed a Motion to dismiss the application alleging that the land described in the
application was different from the land being claimed for titling. The motion was however,
denied. A motion for reconsideration and second urgent motion for reconsideration were
subsequently filed by respondent, but both were denied by the RTC.
Upon presentation of evidence by the parties, the RTC granted the application of the petitioner.
Respondent filed a motion for reconsideration which was denied by the RTC, hence, respondent
appealed to the CA.
The CA held, among others, that petitioner was not able to comply with the requirement of
possession and occupation under Section 14 (1) of P.D. No. 1529. Her admission that the
subject lot was not physically turned over to her due to some objections and oppositions to her
title suggested that she was not exercising any acts of dominion over the subject property, an
essential element in the requirement and occupation contemplated under Section 14 (1) of P.D.
No. 1529.
Issue:
Whether the petitioner is entitled to the subject property as evidenced by the alleged
deed of absolute sale and despite respondent’s possession of the subject property.
Held:
No, the petitioner is not entitled to the subject property. The Court held that the subject land is
already registered under OCT No. OP-1840 (Patent No. 042118-03-6111) of the Registry of
Deeds of Cavite, under the name of respondent Felicidad Mardo.
In addition, the Court held that the applicants for registration of title under Section 14(1) must
sufficiently establish: (1) that the subject land forms part of the disposable and alienable lands of
the public domain; (2) that the applicant and his predecessors-in-interest have been in open,
continuous, exclusive and notorious possession and occupation of the same; and (3) that it is
under a bona fide claim of ownership since June 12, 1945 or earlier. (Republic v. Manimtim,
G.R. No. 169599, March 16, 2011)
The CA denied the application on the issue of open, continuous, exclusive and notorious
possession and occupation of the subject land. It was of the view that she could not have
complied with the requirement of possession and occupation under Section 14(1) of P.D. No.
1529 considering that she admitted that it was not physically turned over to her.
Held:
No, the title of the petitioner will not prevail. The Court held the validity of petitioner’s
title, having been settled with finality in Civil Case No. 15357, could no longer be reviewed.
Because the doctrine of res judicata provides that a final judgment on the merits rendered by a
court of competent jurisdiction, is conclusive as to the rights of the parties and their privies and
constitutes as an absolute bar to subsequent actions involving the same claim, demand, or
cause of action.
The Court also held that it cannot allow the petitioner to maintain his title and benefit from the
fruit of his and his predecessors’ fraudulent acts at the expense of the respondents who are the
rightful owners of the subject property. The Torrens system of registration cannot be used to
protect a usurper from the true owner, nor can it be used as a shield for the commission of
fraud, or to permit one to enrich oneself at the expense of others.
Notwithstanding the indefeasibility of the Torrens title, the registered owner can still be
compelled under the law to re-convey the property registered to the rightful owner under the
principle that the property registered is deemed to be held in trust for the real owner by the
person in whose name it is registered.
An action for re-conveyance based on an implied or constructive trust prescribes in ten (10)
years from the issuance of the Torrens title over the property. There is, however, an exception
to this rule where the filing of such action does not prescribe, i.e., when the plaintiff is in
possession of the subject property, the action, being in effect that of quieting of title to the
property, does not prescribe.
Held/Ratio:
No.
In cadastral proceedings any person claiming any interest in any part of the lands object of the
petition is required by Section 9 of Act No. 2259 to file an answer on or before the return day or
within such further time as may be allowed by the court. In the absence of successful
claimants, the property is declared public land.
In this case, private respondents apparently either did not file their answers in the aforesaid
cadastral proceedings or failed to substantiate their claims over the portions they were then
occupying, otherwise, titles over the portions subject of their respective claims would have been
issued to them. The Cadastral Court must have declared the lands in question public lands, and
its decision had already become final and conclusive.
Issue:
Whether a final decree in an ordinary land registration case can be set aside by a subsequent
decree of the Court in a cadastral case.
Held/Ratio:
No.
The title to the land is fully as well settled and adjudicated, within the meaning of the Cadastral
Act, by a final decree in an ordinary land registration case as it would be by a similar decree in a
Cadastral case. Obviously, it cannot have been the intention of the Legislature to provide a
special proceeding for the settlement and adjudication of titles already settled and adjudicated.
In this case, the subsequent filing of a cadastral case does not give the court the jurisdiction to
decree again the registration of land already decreed in an earlier land registration case and a
second decree for the same land is null and void. The jurisdiction of the court in cadastral cases
over lands already registered is limited to the necessary correction of technical errors in the
description of the lands.
Issue:
Whether lands declared as public land in a cadastral proceeding may still be a subject of a
judicial confirmation of title.
Held/Ratio:
Yes.
A judicial declaration that a parcel of land is public, does not preclude even the same applicant
from subsequently seeking a judicial confirmation of his title to the same land, provided he
thereafter complies with the provisions of Section 48 of Commonwealth Act No. 141, as
amended, and as long as said public land remains alienable and disposable (now sections 3
and 4, P.D. No. 1073).
This is an appeal by Anacleto P. Navarro from the order of the Court of First Instance of Manila,
dismissing his application for registration of 2 residential lots in Malate. The Director of Lands
interposed an opposition claiming that both lands belong to the State. Navarro submitted an
evidence wherein the Director of Lands filed a motion to dismiss on 2 grounds: 1) that the
application was barred by prior judgment and 2) that the same was improper as an application
for judicial confirmation of imperfect title under the Public Land law which is only applicable to
public agricultural lands and not to those which are residential in character.
It appears that sometime in 1950 the Director of Lands filed a cadastral proceeding in the Court
of First Instance of Manila to settle and adjudicate title to the same lots in question. The State
claimed it as part of the public domain.
Issue/s:
Whether the lots applied for are part of the public domain or have so far been possessed by
appellant that he must be deemed to have acquired title thereto which is sufficient for
registration in his name?
Held/Ratio:
Spouses Francisco lahora and Toribia Moralizon brought this appeal to this court from the order
of the Court of First Instance of Davao dismissing their petition with the lot in issue (Lot No.
2228) on the ground of previous registration.
The records show that appellants petitioned the Court of First Instance of Davao for registration
of 9 parcel of lands located in Manay, Davao, ½ of which was acquired by Toribia Moralizon by
inheritance and the other half by purchase and by continuous, open, public and adverse
possession in the concept of owner. One of the said parcels of land was identified as lot no.
2228. Such petition was opposed by Emilio Dayanghirang Jr. claiming that the lot no. 2228
belonged to him in his wife covered by OCT P-6055 in his wife’s name. The Director of Lands
also alleged that the applicants never had a sufficient title over the lands, nor have they been
open, continuous and notorious possession for at least 30 years.
ISSUE/S:
(1) Whether the patent issued to the wife of Emilio Dayanghirang Jr. as well as the original
certificate of title obtained by her were null and void?
(2) Whether the same lot can be the subject of two registration proceedings?
RATIO/S:
(1) No, the patent and original certificate of title issued to Dayanghirang Jr.’s wife is valid.
The rule in this jurisdiction, regarding public land patents and the character of the certificate of
title that may be issued by virtue thereof, is that where land is granted by the government to a
private individual, the corresponding patent therefor is, recorded, and the certificate of title is
issued to the grantee; Thereafter, the land is automatically brought within the operation of the
Land Registration Act, the title issued to the grantee becoming entitled to all the safeguards
provided in Section 38 of the said Act. In other words, upon expiration of one year from its
issuance, the certificate of title shall become irrevocable and indefeasible like a certificate
issued in a registration proceeding.
(2) No, the same lot cannot be the subject of 2 registration proceedings.
In the present case, Lot No. 2228 was registered and titled in the name of oppositor’s wife as of
21 June 1956, nine (9) years earlier. Clearly, appellants’ petition for registration of the same
parcel of land on 26 November 1965, on the ground that the first certificate of title (OCT No.
P6053) covering the said property is a nullity, can no longer prosper. Orderly administration of
justice precludes that Lot 2228, of the Manay Cadastre, should be the subject of two registration
proceedings. Having become registered land under Act 496, for all legal purposes, by the
issuance of the public land patent and the recording thereof, further registration of the same
would lead to the obviously undesirable result of two certificates of title being issued for the
same piece of land, even if both certificates should be in the name of the same person. And if
they were to be issued to different persons, the indefeasibility of the first title, which is the most
valued characteristics of Torrens Titles, would be torn away.
For this reason, the Supreme Court has ruled in Pamintuan vs. San Agustin, 43 Phil. 558, that in
a cadastral case the court has no jurisdiction to decree again the registration of land already
decreed in an earlier case; and that a second decree for the same land would be null and void.
Ratio
Yes, the lower court erred in assuming jurisdiction over the applicatition for registration f title and
in ruling that Vivencio Angels has a registrable title over the lot.
In the first place, in Land Registration Case No. 1196, GLRO Rec. 50288, entitled “Isabelo
Lorenzo et al. vs. The Director of Lands, et al. the Court of First Instance of Rizal had already
declared subject property as a public land. That the decision had long become final and,
therefore, cannot be disturbed anymore on the ground of res judicata. And, Republic Act 931
does not apply to persons claiming title to land which has been declared public land in an
ordinary registration proceeding.
The fact that he had filed a homestead application over the property is an admission that their
possession was not in the concept of an owner.
ISSUE:
Whether respondent, a private corporation, is qualified to apply for registration of the land under
the Public Land Act.
HELD/RATIO:
No, respondent TAN Properties is not qualified.
The well-entrenched rule is that all lands not appearing to be clearly of private dominion
presumably belong to the State. The onus to overturn, by incontrovertible evidence, the
presumption that the land subject of an application for registration is alienable and disposable
rests with the applicant.
It is not enough for the PENRO or CENRO to certify that a land is alienable and disposable. The
applicant for land registration must prove that the DENR Secretary had approved the land
classification and released the land of the public domain as alienable and disposable, and that
the land subject of the application for registration falls within the approved area per verification
through survey by the PENRO or CENRO. In addition, the applicant for land registration must
present a copy of the original classification approved by the DENR Secretary and certified as a
true copy by the legal custodian of the official records. These facts must be established to prove
that the land is alienable and disposable. Respondent failed to do so because the certifications
presented by respondent do not, by themselves, prove that the land is alienable and disposable.
The 1987 Constitution absolutely prohibits private corporations from acquiring any kind of
alienable land of the public domain. In Chavez v. Public Estates Authority, the Court traced the
law on disposition of lands of the public domain. Under the 1935 Constitution, there was no
prohibition against private corporations from acquiring agricultural land. The 1973 Constitution
limited the alienation of lands of the public domain to individuals who were citizens of the
Philippines. Under the 1973 Constitution, private corporations, even if wholly owned by Filipino
citizens, were no longer allowed to acquire alienable lands of the public domain. The present
1987 Constitution continues the prohibition against private corporations from acquiring any kind
of alienable land of the public domain.
What is determinative for the doctrine in Director of Lands to apply is for the corporate applicant
for land registration to establish that when it acquired the land, the same was already private
land by operation of law because the statutory acquisitive prescriptive period of 30 years had
already lapsed. The length of possession of the land by the corporation cannot be tacked on to
complete the statutory 30 years acquisitive prescriptive period. Only an individual can avail of
such acquisitive prescription since both the 1973 and 1987 Constitutions prohibit corporations
from acquiring lands of the public domain.
In applying for land registration, a private corporation cannot have any right higher than its
predecessor-in-interest from whom it derived its right.—Under RA 9176, the application for
judicial confirmation is limited only to 12 hectares, consistent with Section 3, Article XII of the
1987 Constitution that a private individual may only acquire not more than 12 hectares of
alienable and disposable land.
Maria Florentino filed an answer claiming several lots including Lot No. 3044.
On August 16, 1930, the cadastral court awarded Maria Florentino Lot No. 3044.
On August 29, 1930, pending the issuance of the final decree of registration and the original
certificate of title to Maria Florentino, a homestead patent covering Lot No. 3044 was granted to
Bartolome Quines, and issued Original Certificate of Title in his name.
Six months thereafter, or on March 12, 1931, the same Register of Deeds issued Original
Certificate of Title No. 11982 in the name of Maria Florentino covering the lots awarded to her,
including Lot No. 3044.
Sometime in 1952, Maria Florentino sold all the lots to Arturo Nieto, who subsequently secured
the issuance of Transfer Certificate of Title in his name. On the other hand, Quines executed a
deed of sale on 1953 transferring Lot No. 3044 to Atty. Miguel P. Pio.
Nieto filed a complaint against Quines that the homestead patent and Original Certificate of Title
No. 623 were obtained through fraud and misrepresentations, prayed that the patent and title be
cancelled and that the title issued in plaintiff's name be declared as the true and valid title over
the lot in dispute.
Lower court rendered judgment in defendants' (Quines and Pio) favor dismissing the complaint.
Nieto appealed directly to the Supreme Court.
ISSUE:
Whether the title issued to a homestead applicant prevail over a subsequent registration of an
awardee in cadastral court proceedings.
HELD/RATIO:
Yes. As a homestead applicant, the defendant religiously complied with all the requirements of
the Public Land Act and, on August 29, 1930, a homestead patent was issued in his favor.
Also, the defendant having complied with all the terms and conditions which would entitle him to
a patent, Bartolome Quines, even without a patent actually issued, has unquestionably acquired
a vested right on the land and is to be regarded as the equitable owner thereof. (Balboa vs.
Farrales, 51 Phil. 498). Under these circumstances and applying by analogy the principles
governing sales of immovable property to two different persons by the same vendor, Bartolome
Quines' title must prevail over that of Maria Florentino not only because he had always been in
possession of the land but also because he obtained title to the land prior to that of Maria
Florentino.
Held:
No. Respondents' claim of acquisitive prescription over the subject property is baseless. Under
Article 1126 of the Civil Code, acquisitive prescription of ownership of lands registered under the
Land Registration Act shall be governed by special laws. Correlatively, Act No. 496, as
amended by PD No. 1529, provides that no title to registered land in derogation of that of the
registered owner shall be acquired by adverse possession. In the instant case, proof of
possession by the respondents is immaterial and inconsequential.
Issue:
Whether the certificates of title may be cancelled because of DAR’s failure to issue sufficient
notice.
Held:
No. A certificate of title becomes indefeasible and incontrovertible upon the expiration of one
year from the date of the issuance of the order for the issuance of the patent as in the present
case. Land covered by such title may no longer be the subject matter of a cadastral proceeding,
nor can it be decreed to another person. After the expiration of the one year period, a person
whose property has been wrongly or erroneously registered in another’s name may bring an
ordinary action for reconveyance, or if the property has passed into the hands of an innocent
purchaser for value, Section 32 of the Property Registration Decree gives petitioners only one
other remedy, i.e., to file an action for damages against those responsible for the fraudulent
registration
Whether Ouano’s title may be revoked on the basis of the Director of land’s decision.
Held:
No. It was erroneous for petitioners to question the Torrens Original Certificate of Title issued to
private respondent over Lot No. 986 in Civil Case No. 671, an ordinary civil action for recovery
of possession filed by the registered owner of the said lot, by invoking as affirmative defense in
their answer the Order of the Bureau of Lands, dated July 19, 1978, issued pursuant to the
investigatory power of the Director of Lands under Section 91 of Public Land Law (C.A. 141 as
amended). Such a defense partakes of the nature of a collateral attack against a certificate of
title brought under the operation of the Torrens system of registration pursuant to Section 122 of
the Land Registration Act, now Section 103 of P.D. 1259. The case law on the matter does not
allow a collateral attack on the Torrens certificate of title on the ground of actual fraud. The rule
now finds expression in Section 48 of P.D. 1529 otherwise known as the Property Registration
Decree. In the instant case, the public land certificate of title issued to private respondent
attained the status of indefeasibility one (1) year after the issuance of patent on April 15, 1963,
hence, it is no longer open to review on the ground of actual fraud. Consequently, the filing of
the protest before the Bureau of Lands against the Homestead Application of private respondent
on January 3, 1975, or 12 years after, can no longer reopen or revise the public land certificate
of title on the ground of actual fraud. No reasonable and plausible excuse has been shown for
such an unusual delay. The law serves those who are vigilant and diligent and not those who
sleep when the law requires them to act.
ISSUE:
Whether the Sheriff’s foreclosure is valid.
HELD:
Yes. Mere inadequacy of the price obtained at the sheriff's sale unless shocking to the
conscience will not be sufficient to set aside the sale if there is no showing that, in the event of a
regular sale, a better price can be obtained. The reason is that, generally, and, in forced sales,
low prices are usually offered. The records further show that two (2) days after the execution of
the deed of mortgage for P10,000 in favor of the PNB — Francisco Soriano received P2,000
from plaintiff, Francisco Soriano received a letter informing him that the PNB mortgage on the
Parañaque property would be foreclosed, unless the debt guaranteed therewith were settled;
that, accordingly, his children came to know of the mortgage in favor of the PNB; that said
mortgage was transferred to the RFC. Under these circumstances, it is difficult to believe that
Sorianos did not know then of the mortgage constituted by Francisco Soriano in favor of the
RFC. Their aforementioned failure to contest the legality of the mortgage for over five (5) years
and these attempts to redeem the property constitute further indicia that the same belonged
exclusively to Francisco Soriano, not to the conjugal partnership with his deceased wife,
Tomasa Rodriguez. Apart from the fact that said attempts to redeem the property constitute an
implied admission of the validity of its sale — and, hence, of its mortgage to the RFC — there
are authorities to the effect that they bar the Sorianos from assailing the same.
HELD:
Yes. A co-owner may dispose of under Article 493 is only his undivided aliquot share, which
shall be limited to the portion which may be allotted to him upon the termination of the co-
ownership. He has no right to divide the property into parts and then convey one part by metes
and bounds. The title is the final and conclusive repository of the rights of the new co-owners.
The question of whether or not the deed of sale should be annulled must be considered in
conjunction with the title issued pursuant thereto. Since, according to this title, what appellee
acquired by virtue of the sale is only an undivided half-share of the property, which under the
law the vendor Ramon Mercado had the absolute right to dispose of, the trial court committed
no error in dismissing the action.
HELD:
YES. It is basic that a person dealing with registered property need not go beyond, but only has
to rely on, the title of his predecessor-in-interest. Since "the act of registration is the operative
act to convey or affect the land insofar as third persons are concerned," it follows that where
there is nothing in the certificate of title to indicate any cloud or vice in the ownership of the
property, or any encumbrance thereon, the purchaser is not required to explore farther than
what the Torrens title upon its face indicates in quest for any hidden defect or inchoate right that
may subsequently defeat his right thereto. It is enough that petitioner had examined the latest
certificate of title which in this case was issued in the name of the immediate transferor, the
spouses Rodolfo. The purchaser is not bound by the original certificate but only by the
certificate of title of the person from whom he had purchased the property. Registration in the
public registry is notice to the whole world. Every conveyance, mortgage, lease, lien,
attachment, order, judgment, instrument or entry affecting registered land shall be, if registered,
filed or entered in the Office of the Register of Deeds of the province or city where the land to
which it relates lies, be constructive notice to all persons from the time of such registering, filing
or entering.
On the other hand, respondent alleged that Lot 1436 was sold by the petitioners and their father
which was covered by a Deed of Definite Sale and Salcedo came into ownership. Salcedo sold
the property to respondent.
ISSUE:
(1) Whether or not the petitioners’ duplicate certificate of title is valid and subsisting
(2) Whether or not the petitioners are entitled to the possession of the property
HELD:
(1) The CA correctly ruled that the duplicate certificate of title on petitioners’ possession is valid
and subsisting. The Court had already ruled in Serra Serra v CA that if a certificate of title has
not been lost but is in fact in the possession of another person, the reconstituted title is void and
the court rendering the decision has not acquired jurisdiction over the petition for issuance of a
new title. Since the owner’s duplicate copy of OCT No. 7864 earlier issued to Erlinda is still in
existence, the lower court did not acquire jurisdiction over respondent’s petition for
reconstitution of title. The duplicate certificate of title subsequently issued to respondent is
therefore void and of no effect.
(2) The Court rules in the negative. Petitioners are no longer entitled to recover possession of
the property by virtue of the equitable defenses of laches. In our jurisdiction, it is an enshrined
rule that even a registered owner of property may be barred from recovering possession of
property by virtue of laches.
The petitioners’ inaction for 45 years reduced their right to recover the subject property into a
stale demand.
The main defense is plaintiff’s right of action has already prescribed by virtue of the possession
of the land by the defendant and his predecessors in interest for a period of 37 years. This
defense was overruled by the court a quo on the ground that as the land is registered, with a
certificate of title in the name of patentee Domingo Mejia, title thereto may not be acquired by
the defendant and his predecessors in interest against said registered owner. This ruling is
evidently based on Section 46 of the Land Registration Act, which provides that “no title to
registered land in derogation to that of the registered owner shall be acquired by prescription or
adverse possession.
ISSUE:
ISSUE:
Whether or not the trial court has jurisdiction to issue the Joint Order which directed the
cancellation of the petitioner’s title over Lot 54 and 75
HELD:
Here, while it may be true that Civil Case No. C760 was originally an action for specific
performance and damages, nonetheless the case cannot constitute a collateral attack on the
petitioner’s title which, to begin with, was irregularly and illegally issued. It bears stressing that
the source of GAUF’s title was the Compromise Agreement purportedly executed by Gregorio
Bajamonde, et al. which were declared null and void. Well settled is the rule that the
indefeasibility of a title does not attach to titles secured by fraud and misrepresentation. In view
of these circumstances, it was as if no title at all was ever issued in this case to the petitioner
and therefore this is hardly the occasion to talk of collateral attack against a title.
The Court agree with the CA that the trial court had jurisdiction to annul petitioner’s title. It must
be emphasized that, notwithstanding the original denomination of the said action as one for
specific performance and damages, it was petitioner GAUF no less which sought to intervene in
Civil Case No. C760 and claimed that it has rights or interests in the subject matter being
litigated therein. It is undeniable that petitioner’s TCT was issued in enforcement of a partial
decision in Civil Case No. C760. As it were, the validity of petitioner’s title was an issue litigated
in Civil Case No. C760 on account of the presentation therein of the Compromise Agreement
which, to stress, was the springboard of petitioner’s title. Hence, when that same Compromise
Agreement and the Partial Decision in connection therewith were eventually nullified, the trial
court acted very much within its jurisdiction in ordering the cancellation of petitioner’s title in the
same Civil Case No. C760.
4. Whether or not the confirmation of sale executed by Antonio in favor of Luisa existed; and
Ruling:
The Court ruled in favor of Lim and declared that the petition has no merit.
Action for cancellation of title is not an attack on the title. The attack is direct when the objective
is to annul or set aside such judgment, or enjoin its enforcement. On the other hand, the attack
is indirect or collateral when, in an action to obtain a different relief, an attack on the judgment is
nevertheless made as an incident thereof. Lim was asserting only that the existing title
registered in the name of the petitioners predecessors had become inoperative due to the
conveyance in favor of Lim’s mother, and resultantly should be cancelled. Lim did not thereby
assail the validity of OCT or challenge the judgment by which the title of the lot involved had
been decreed.
Prescription was not relevant. Prescription, in general, is a mode of acquiring or losing
ownership and other real rights through the lapse of time in the manner and under the
conditions laid down by law. However, prescription was not relevant to the determination of the
dispute herein, considering that Lim did not base his right of ownership on an adverse
possession over a certain period. He insisted herein, instead, that title to the land had been
voluntarily transferred by the registered owners themselves to Luisa, his predecessor-in-
interest. Lim showed that his mother had derived a just title to the property by virtue of sale; that
from the time Luisa had acquired the property in 1937, she had taken over its possession in the
concept of an owner, and had performed her obligation by paying real property taxes on the
property, as evidenced by tax declarations issued in her name; and that in view of the delivery
of the property, coupled with Luisa’s actual occupation of it, all that remained to be done was
the issuance of a new transfer certificate of title in her name.
Issue:
Whether the sale of patented lands perfected within the prohibited five (5) year period is null and
void.
Held/Ratio:
Yes.
In the Section 118 of the Commonwealth Act No. 141, as amended, prohibits the alienation or
encumbrance within a period of five (5) years from the date of issuance of the patent lands
acquired under free patent or homestead; In the present case, it is clear that the deeds were
executed within the prohibited period of 5 years. The free patent was issued August 12, 1965
and the Deeds of Sale were executed May 24, 1964, January 4 and October 6, 1965, assuming
the authenticity of the said Deeds of Sale still it is considered within the prohibited period.
Therefore, no title passed from the Egaos to Marfori which could be validly transferred to herein
respondents Bontilao and Dignos.
Whether the title to the real property is passed to an innocent purchaser by a deed of sale in his
favor executed in the name of the owners by one falsely claiming to be said owners’ duly
appointed and authorized attorney-in-fact.
Held/Ratio:
No.
The innocent purchaser for value protected by the law is one who purchases a titled land by
virtue of a deed of sale executed by the registered owner himself and not by virtue of a forged
deed. It is also ruled the case of Joaquin vs Madrid that, in order that the holder of a certificate
for value issued by a virtue of the registration of a voluntary instrument may be considered a
holder in good faith for value, the instrument registered should not be forged. When the
instrument presented is forged, even if accompanied by the owner’s duplicate certificate of title,
the registered owner does not thereby lose his title and neither does the assignee in the forged
deed acquire any right or title to the property.
Therefore, the deed of sale of September 8, 1972 executed by Isaias Ngoho as purported
attorney-in-fact of the petitioners in favor of Cags is declared null and void.
The mortgage was subsequently foreclosed due to the mortgagors’ failure to settle their
obligation. Ernesto Alzona was the highest bidder and caused the cancellation of the OCT in the
name of Maria and acquired a Transfer Certificate of Title in his name. Upon the knowledge of
the said cancellation of OCT, the petitioners caused the inscription of an adverse claim on the
title of the property. They alleged that the Real Estate Mortgage was not executed by the owner
of the property hence it is void, while the respondents alleged that they mortgagee in good faith.
Issue:
Whether Dominador is a mortgagee in good faith to validly transfer the title to the highest bidder.
Held/Ratio:
Yes.
The mortgagee is considered as a mortgagee in good faith. Under this doctrine, even if the
mortgagor is not the owner of the mortgaged property, the mortgage contract and any
foreclosure sale arising therefrom are given effect by reason of public policy. The principle is
based on the rule that all persons dealing with property covered by a Torrents Certificate of
Title, as buyers or mortgagees; are not required to go beyond what appears on the face of the
title and in the absence of any sign that might arouse suspicion, the mortgagee has no
obligation to undertake further investigation. However, those persons who are engaged in real
estate or financing business like herein respondents Ernesto and Dominador to be considered
as mortgagees in good faith, jurisprudence requires that they should take the necessary
precaution expected of a prudent man to ascertain the status and condition of the properties
offered as a collateral and to verify the identity of the persons they transact business with,
particularly those who claim to be the registered property owners.
In the present case, Ernesto sufficiently established that he acted in good faith in exercising due
diligence in ascertaining the status of the property by visiting the property and he also identify
the owners and occupants, it was Estela and the persons represented themselves as Bernardo
and Maria who perpetrated the fraud, hence Ernesto and Dominador are mortgagees in good
faith and are entitled to the protection of the law.
The Register of Deeds refused to issue a new title to Villanueva without carrying over
ISSUE:
Whether Villanueva's adverse claim is, in fact, registerable, and if so, whether it can be
preferred over the attachments.
HELD:
No, Villanueva merely filed an adverse claim based on said agreement to sell considering that
Section 62 of the Land Registration Act prescribes the procedure for the registration of
Villanueva's interest less than an estate in fee simple on the disputed lot and there being no
showing of her inability to produce the owner's duplicate certificate, the remedy provided in
Section 110 of Act 496, which was resorted to by Villanueva, is, therefore, ineffective for the
purpose of protecting her right or interest on the disputed lot.
Adverse claim filed by Villanueva was not valid, the same did not have the effect of a
conveyance of her right or interest on the disputed lot and could not prejudice any right that may
have arisen thereafter in favor of third parties. Consequently, the attachments of Berthelsen,
Leviste, and that in Civil Case No. 2489-P of the Court of First Instance of Rizal covering the
disputed lot are superior to that acquired by Villanueva and will have to be carried over to the
new title to be issued in her favor.
(1)Sales Patent No. 4576 was issued to Bugayong, the land it covered was still within the forest
zone, classified under Project No. 1, LC-47; it was released as alienable and disposable land
only on March 25, 1981
(2) the land was marshy and covered by sea water during high tide;
ISSUE:
Whether CA erred in not finding that petitioner Land Bank of The Philippines mortgage right and
interest as an innocent purchaser (mortgagee) for value and in good faith over the subject land
is valid and subsisting in accordance with the law and existing jurisprudence in our country.
HELD:
No, LBP has no valid and subsisting mortgagees interest over the land
It has been established and admitted by LBP that:
(1) the subject land mortgaged to it by Lourdes Farms, Inc. is covered by TCT No. T-57348;
and
(2) the said TCT is derived from OCT No. P-2823 issued to Bugayong
It was ascertained the land it covered was still within the forest zone. It was declared as
alienable and disposable only on March 25, 1981.
The mortgagor, Lourdes Farms, Inc. from which LBP obtaining its alleged interest has never
been the owner of the mortgaged land. Acquisition of the subject land by Lourdes Farms, Inc. is
legally impossible as the land was released as alienable and disposable only on March 25,
1981. Hence, LBP acquired no rights over the land. Since Lourdes Farms, Inc. is not the owner
of the land, it does not have the capacity to mortgage it to LBP.
Private respondents Constantino B. Acosta and Eva Acosta signed a Land Purchase
Agreement wherein herein Petitioner St. Dominic Corporation sold to the former Lot No. 1-A, S-
2, Block 8, covered by T.C.T. No. 842,00, Quezon City.
The Acostas were about 7 months in money debt of the corresponding monthly payments due,
when they sent to the St. Dominic Corp. two separate money orders on. These payments were
rejected by the St. Dominic Corporation in a letter sent to the Acostas by its Corporate Secretary
because their contract had been cancelled said Corporate Secretary had sent to the Private
Respondents herein a letter informing the latter that their contract had been cancelled one
month after their final notice, and that postal money order sent by the Acostas were sent back to
them.
Private Respondents Acostas instituted in the then CFI of Manila an action against the St.
Dominic Corporation to compel the latter to accept payment of the lot in question. Later a
decision was rendered in said case adverse to the Acostas.
Acostas appealed the same to the then Court of Appeals. The CA rendered its decision, setting
aside the decision of the CFI of Manila.
The petitioner corporation sought reconsideration of the appellate court's decision.
ISSUE:
Whether IAC erred in not finding that it is legally impossible for the petitioner, without its fault, to
transfer to the Acostas the title to land in question, it having been transferred to a third party.
HELD:
The respondents did not have a notice of lis pendens annotated on the title of the property
during the whole time that said property was in litigation.
A notice of lis pendens in an announcement to the whole world that a particular piece of real
property is in litigation and serves as a warning that one who acquires an interest over said
property does so on his own risk or that he gambles on the result of the litigation over said
property.
Since the private respondents failed to file such notice, the subsequent purchaser for value
cannot be prejudiced by the outcome of the litigation and in the absence of proof of any fraud on
his part, such purchaser is presumed to have acquired his title in good faith and for a valuable
consideration. The rule is elementary that fraud is not presumed. Private respondents were
given by the Court of Appeals only until December 29, 1981 to pay the remaining balance of
unpaid installments. Actual consignment was made on October 25, 1982 or almost ten (10)
months late.
Innocent third party who has the title to the land and who has built a residence on it should be
respected and protected in his possession and ownership. The petitioner should, however, pay
damages to the private respondents after returning all amounts it has received from them.
No. The rule is that a secured creditor holding a real estate mortgage has three options in case
of death of the debtor. These are:
(1) to waive the mortgage and claim the entire debt from the estate of the mortgagor as an
ordinary claim;
(2) to foreclose the mortgage judicially and prove any deficiency as an ordinary claim; and
(3) to rely on the mortgage exclusively, foreclosing the same at anytime before it is barred
by prescription, without right to file a claim for any deficiency.
Issue:
Whether the pendency of a civil case challenging the validity of the credit agreement, the
promissory notes and the mortgage can bar the issuance of a writ of possession after the
foreclosure and sale of the mortgaged properties and the lapse of the one-year redemption
period.
Ruling:
There are however exceptions to the rule that issuance of a writ of possession is a ministerial
function, as follows:
The petitioner's case does not fall under any of the above-mentioned exceptions.
Issue:
a. Whether the actual publication of the notice of the petition in the Official Gazette 47 days
after the hearing, instead of "at least 30 days prior to the date of hearing" was sufficient to vest
jurisdiction in the court to hear and determine the petition.
b. Whether the Register of Deeds of Malabon is the proper party to file the petition for
reconstitution
Ruling:
a. No, it did not. The purpose of the publication of the notice of the petition for
reconstitution in the Official Gazette is to apprise the whole world that such a petition has been
filed and that whoever is minded to oppose it for good cause may do so within 30 days before
the date set by the court for hearing the petition. It is the publication of such notice that brings in
the whole world as a party in the case and vests the court with jurisdiction to hear and decide it.
Where there is a defect in the publication of the petition, such defect deprives the court of
jurisdiction.
b. No. Section 6 of Republic Act No. 26, which allowed the Register of Deeds to motu
proprio reconstitute a lost or destroyed certificate of title from its corresponding owner's
duplicate certificate, was expressly repealed or declared to be "inoperative" by Section 6 of
Republic Act 6732, approved on July 17, 1989. A petition for reconstitution may now be filed
only by "the registered owner, his assigns, or any person who has an interest in the property"
(Section 12, Republic Act No. 26).
Issue:
Rationale:
Republic Act No. 26 entitled "An act providing a special procedure for the reconstitution of
Torrens Certificates of Title lost or destroyed" approved on September 25, 1946 confers
jurisdiction or authority to the Court of First Instance to hear and decide petitions for judicial
reconstitution. The Act specifically provides the special requirements and mode of procedure
that must be followed before the court can properly act, assume and acquire jurisdiction or
authority over the petition and grant the reconstitution prayed for. These requirements and
procedure are mandatory. The Petition for Reconstitution must allege certain specific
jurisdictional fact and the notice of hearing must be published in the Official Gazette and posted
in particular places and the same sent or notified to specified persons. Sections 12 and 13 of
the Act provide specifically the mandatory requirements and procedure to be followed.
As the Court have earlier quoted in fun the petition for reconstitution in Reconstitution Case No.
504P and substantially the Notice of Hearing issued by the court published in the Official
Gazette together with the Certification of Posting by the Deputy Sheriff, it would not be a difficult
task to check and verify whether the strict and mandatory requirements of Sections 12 and 13 of
Republic Act No. 26 have been faithfully complied with by therein petitioners Pascuals, now the
private respondents here.
Upon a cursory reading of both the petition for reconstitution and the notice of hearing, it is at
once apparent that Tahanan has not been named, cited or indicated therein as the owner,
occupant or possessor of property adjacent to Lot 2, title to which is sought to be reconstituted.
Neither does the petition and the notice state nor mention that Tahanan is the occupant or
possessor of a portion of said Lot 2. The result of this omission or failure is that Tahanan was
never notified of the petition for reconstitution and the hearings or proceedings therein.
We also find that the Notice of Hearing directed that copies thereof be posted only in the bulletin
board of the Court of First Instance of Pasay City and no more, whereas the law specifically
require that the notice of the petition shall be posted on the main entrance of the municipality or
city on which the land is situated, at the provincial building and at the municipal building at least
30 days prior to the date of hearing. In the instant case as certified to by Deputy Sheriff Arsenio
C. de Guzman, the Notice of Hearing was posted on the bulletin board of the Court of First
Instance of Rizal, Pasay City Branch located at the Hall of Justice, City Hall Building, Pasay
City. Evidently, the Notice of Hearing was not posted at the main entrance of the provincial
building in Pasig, Rizal. It was not posted at the main entrance of the municipal building of
Muntinlupa where the land is now comprised in Barrio Cupang, or at least in the municipal
building of Paranaque where Barrio San Dionisio was then embraced.
Issue:
Whether the petition for reconstitution should be granted. The trial court did not acquire
jurisdiction over t
Ruling:
Issue:
RA 26 lays down the specific procedure for the reconstitution of lost or destroyed Torrens
certificates of title. It confers jurisdiction upon trial courts to hear and decide petitions for judicial
reconstitution. However, before said courts can assume jurisdiction over the petition and grant
the reconstitution prayed for, the petitioner must observe certain special requirements and mode
of procedure prescribed by law.
Perusal of respondents’ Petition for Reconstitution, for the purpose of verifying whether the strict
and mandatory requirements of RA 26, particularly Section 12 (b) and (e) thereof, have been
faithfully complied with, would reveal that it did not contain an allegation that no co-owner’s,
mortgagee’s or lessees duplicate had been issued or, if any had been issued, the same had
been lost or destroyed. The petition also failed to state the names and addresses of the present
occupants of Lot 54. Correspondingly, the Notice of Hearing issued by the court a quo did not
also indicate the names of the occupants or persons in possession of Lot 54, in gross violation
of Section 13 of RA 26. Because of these fatal omissions, the trial court never acquired
jurisdiction over respondents’ petition. Consequently, the proceedings it conducted, as well as
those of the CA, are null and void.
ISSUE:
Whether Judge Matas acted without jurisdiction in taking cognizance of Miscellaneous Case No.
1626.
HELD:
Administrative order No. 7 defines the territorial jurisdiction of RTC in Regions 1 to 12 of RTC
Davao Del Norte. Br. 1 and 2 has jurisdiction over Kapalong and Br. 4 has jurisdiction over Sto.
Tomas. Branch 1 of RTC of Davao del Norte the presided by Judge Matas has jurisdiction ocer
Mis. 1626. Sec. 2 of Pd 1529 states that CFI shall have jurisdiction over all applications for
original registration of title to lands including and interest therein and over all petitions filed after
original registration of title. Also, Sec. 17 of PD 1529 provides that the application for land
registration shall be filed with CFI, now RTC. Of the province or municipality where the land lies.
Petition for replacement of lost certificates as in Mis. 1626 was properly taken cognizance by Br.
1 of RTC Davao del Norte since the petition stated that lots covered by the lost duplicate are
situated in Kapalong and Sto. Tomas which are both in the province of Davao del Norte. If at all,
there was an unwitting violatiom of Adm. Order 7 which places Kapalong within either Br. 1 or 2
and Sto. Tomas with Br. 4. He exceeds the territorial area of his branch for at the time Mis. 1626
was filed, Sto. Tomas which was composed of the barrios of Kapalong was not yet declared as
non existent. The error consisted merely of the impropriety of the venue of the petition.
ISSUES:
1. Whether a court has jurisdiction to issue a new owner's duplicate of Torrens Certificate of
Title, when in fact, the existing owner's copy has not been lost or destroyed.
2. which law governs the issuance of new owner's duplicate certificate of title in lieu of lost
ones?
HELD:
Petition was granted. The owner's duplicate of certificates of title were in the possession of the
petitioner's chairman of the board and the certificates were not in fact lost or destroyed, hence,
there was no necessity for the petition filed in the trial court for the issuance of new owner's
duplicate copy of certificate of title. The court never acquired jurisdiction to order the issuance of
new certificates. Thus, the newly issued duplicates are null and void. The remedy in case of
refusal or failure of the holder to surrender the owner's duplicate certificates of title is a petition
in court to compel surrender of the duplicate certificate to the RD and not a petition for
reconstitution.
Section 109 of PD 1529 is the law applicable in petitions for issuance of a new owner's duplicate
certificate of title which was lost or stolen or destroyed. RA 26 applies only in cases of
reconstitution of lost or destroyed original certificates on file with the RD.
The RTC of Pasig ruled in favor of Alcazar, declaring the owner’s duplicate copy of title null and
void and ordering the Registry of Deeds of Pasig to issue a new Owner’s Duplicate of Transfer
Certificate of Title based on the original thereof on file in its office. The RTC Decision has
become final and executory.
Respondent Arante filed with the Court of Appeals a Petition for Annulment of Final Decision
contending that the RTC had no jurisdiction to entertain Alcazar’s petition because the subject
owner’s duplicate title was not in fact lost but actually exists. She alleged that the petitioners
obtained a loan from her and as a security, they executed a real estate mortgage over the
subject property. She added that the petitioners personally delivered and turned over the
original owner’s duplicate copy of title. Due to the failure of the petitioners to pay their loan,
respondent decided to register the mortgage with the Register of Deeds of Pasig but she was
informed that the petitioners had caused to be annotated to the copy of TCT on file, an affidavit
stating the owner’s duplicate copy thereof was lost.
Issue: Whether the RTC has jurisdiction over the action for reconstitution filed by the petitioners.
Held/Ratio:
NO, the RTC has no jurisdiction. When the owner’s duplicate certificate of title has not been
lost, but is in fact in the possession of another person, then the reconstituted certificate is void,
because the court that rendered the decision had no jurisdiction. Reconstitution can validly be
made only in case of loss of the original certificate. Thus, with proof and with the admission of
petitioners that the owner’s duplicate copy of the TCT was actually in the possession of
respondent, the RTC Decision was properly annulled for lack of jurisdiction.
A judgment was rendered in Civil Case No. 3145 in favor of Devilles, declaring the sale in Case
No. 2614 null and void and ordering the issuance of a new certificate of title in favor of Devilles.
Devilles sold the property to Spouses Aguilar and Gliceria Vda. de Aguilar, herein respondent.
Instead of surrendering the owner’s duplicate of TCT No. 8578 to the Register of Deeds, as
required, Manila Trading sold the property, subject to the Lis Pendens, to Julius Reese. Reese
presented to the court a petition under Act 496 for cancellation of the annotation of lis pendens.
According to him, the lis pendens may not adversely affect him because the Supreme Court
decision in Case No. 3145 was not shown to the Register of Deeds until after 21 years, contrary
to Sec. 79 of the Land Registration Law.
Issue:
Whether Reese may invoke the ground of non-enforcement and prescription of the Supreme
Court decision in Civil Case No. 3145 to bar the issuance of a new TCT in favor of respondent.
Held/Ratio:
NO. Sec. 79 does not say that if the judgment is not registered within 60 days, the notice will not
be binding. And even if it said so, the judgment will not be binding only as against persons other
than the parties to the suit. It is still binding on the parties (the Capules) and their successors
(Manila Trading and Reese), particularly because the titles of these successors bear the
annotation relating to the lis pendens.
Although action on a judgment prescribes after ten years, the period begins from the time such
judgment becomes final and no proof exists as to the date when the judgment in Case No. 3145
became final. And then, in so far as Reese's attempt to get possession, the decision may be
invoked in defense as res judicata which does not prescribe.
Reese may not object on the ground of non-enforcement and prescription of the SC decision,
because if any one could object thereto, it was the Register of Deeds who was called upon to
implement the order of cancellation and issuance; and yet he has shown willingness to comply.
It is true that in complying, the Register is now requiring Reese in turn to surrender his title. But
the latter may not properly refuse, because he received such title from the Register upon his
undertaking to respect the outcome of the litigation, the title being expressly subject thereto, by
the annotation of lis pendens.
Manila Trading’s refusal or failure to surrender the title, upon the request of the Register of
Deeds, gave Devilles’ successors the right to petition the court for appropriate orders.
IDP contended that it was INK which violated the contract by delaying the payment of the
purchase price and prayed that the contract of sale be rescinded and revoked.
The trial court rendered a partial judgment, granting the reliefs prayed for by INK except
damages. INK filed a motion praying that petitioner Ligon, who was in possession of the
certificates of title over the properties, be directed to surrender the certificates to the Register of
Deeds for the registration of the Absolute Deed of Sale in its name. INK alleged that the
document could not be registered because of the refusal and/or failure of petitioner to deliver
the certificates of title despite requests.
The trial court granted the motion of INK and ordered petitioner to surrender to INK the owner’s
copy of the certificates of title for the registration of the Absolute Deed of Sale in INK’s name
and the annotation of the new mortgage executed in favor of petitioner on the new transfer
certificates of title to be issued to INK.
Issue:
Whether INK has a superior right to the possession of the owner’s copies of the certificates of
title.
Held/Ratio:
YES. Under our land registration law, no voluntary instrument shall be registered by the
Register of Deeds unless the owner’s duplicate certificate is presented together with such
instrument, except in some cases or upon order of the court for cause shown. In case the
person in possession of the duplicate certificates refuses or fails to surrender the same to the
Register of Deeds so that a voluntary document may be registered and a new certificate issued,
Sec. 107, Chapter 10, of P.D. No. 1529 states:
Surrender of withheld duplicate certificates.—Where it is necessary to issue a new certificate of
title pursuant to any involuntary instrument which divests the title of the registered owner against
his consent or where a voluntary instrument cannot be registered by reason of the refusal or
failure of the holder to surrender the owner’s duplicate certificate of title, the party in interest
may file a petition in court to compel surrender of the same to the Register of Deeds. The court,
after hearing, may order the registered owner or any person withholding the duplicate certificate
to surrender the same and direct the entry of a new certificate or memorandum upon such
surrender. If the person withholding the duplicate certificate is not amenable to the process of
the court, or if for any reason the outstanding owner’s duplicate certificate cannot be delivered,
the court may order the annulment of the same as well as the issuance of a new certificate of
title in lieu thereof. Such new certificate and all duplicates thereof shall contain a memorandum
of the annulment of the outstanding duplicate.
Sec. 2 of P.D. No. 1529 eliminated the distinction between the general jurisdiction vested in the
regional trial court and the limited jurisdiction conferred upon it by the former law when acting
merely as a cadastral court. Aimed at avoiding multiplicity of suits the change has simplified
registration proceedings by conferring upon the regional trial courts the authority to act not only
on applications for original registration but also over all petitions filed after original registration of
title, with power to hear and determine all questions arising upon such applications or petitions.
Even while Sec. 107 of P.D. 1529 speaks of a petition which can be filed by one who wants to
compel another to surrender the certificates of title to the Registry of Deeds, this does not
preclude a party to a pending case to include as incident therein the relief stated under said
section, especially if the subject certificates of title to be surrendered are intimately connected
with the subject matter of the principal action.
The principal action filed by INK was for specific performance with damages based on a
document of sale. Such action was well within the exclusive jurisdiction of the Regional Trial
Court. When IDP did not question the genuineness and validity of said deed of sale and its
obligations thereunder, the summary judgment issued by the court granting the reliefs sought by
INK was also an exercise of its general jurisdiction. Hence, when INK filed a motion for the
issuance of an order from the same court to compel the holder of the duplicate certificates of
title to surrender the same to the Register of Deeds for the registration of the deed of sale
subject of the principal action, the motion was a necessary incident to the main case.
ISSUE:
Has Fernandez acquired better title than PNB over the lot in question despite its failure to
surrender the owner’s duplicate certificate of title to the Registry of Deeds?
HELD:
No. By his failure to present the owner’s duplicate certificate of title to the Registry of Deeds, as
required by Sec. 55 of Act No. 496, that resulted to the deed of sale with Leonor Villaranda not
being registered in TCT 2207, Simon Fausa did not acquire any right to the issuance of a new
transfer certificate of title in his favour with respect to the interest of Leonor Villaranda.
PNB acquired better title to the property based on the foregoing and since it has acquired first
the interest over the property that Jose Fernandez.
Domingo Pilares filed for collection of sum of money against Ernesto Uychocde. On June 25,
1980, a Compromise Agreement was entered into by the parties in the said case under which
Uychocde acknowledged his monetary obligation to Pilares amounting to P27,800 and agreed
to pay the same in two years from June 25, 1980.However, Uychocde failed to comply with his
undertaking in the compromise agreement so Pilares moved for the issuance of a writ of
execution to enforce the decision based on the compromise agreement. The court granted it so
Sheriff Garcia presented said notice of levy on execution before the Register of Deeds of
Marikina and the same was annotated at the back of TCT No. 79073.
Meanwhile, spouses Uychocde agreed to sell a parcel of residential land to spouses Sajonas on
installment basis as evidenced by a Contract to Sell. On August 27, 1984, the Sajonas couple
caused the annotation of an adverse claim based on the said Contract to Sell on the title of the
subject property.Upon full payment of the purchase price, the Uychocdes executed a Deed of
Sale involving the property in question in favor of the Sajonas couple on September 4, 1984.
Hence TCT No. N79073 was cancelled and TCT No. N109417 was issued in the name of the
Sajonas couple. The notice of levy on execution annotated by defendant sheriff was carried
over to the new title. The Sajonas spouses demanded the cancellation of the notice of levy on
execution upon Pilares but Pilares refused to cause the cancellation of said annotation.
Issue:
Whether the adverse claim inscribed in the Transfer Certificate of Title No. N190417 still in force
when Sheriff Garcia caused the notice of levy on execution to be registered and annotated in
the said title
Held:
Yes. In ascertaining the period of effectivity of an inscription of adverse claim, we must read the
law in its entirety. Sentence three, paragraph two of Section 70 of P.D. 1529 provides: “The
adverse claim shall be effective for a period of thirty daysfrom the date of registration.”
At first blush, the provision in question would seem to restrict the effectivity of the adverse claim
to thirty days. But the above provision cannot and should not be treated separately, but should
be read in relation to the sentence following, which reads: “After the lapse of said period, the
annotation of adverse claim may be cancelled upon filing of a verified petition therefor by the
party in interest.”
If the rationale of the law was for the adverse claim to ipso facto lose force and effect after the
lapse of thirty days, then it would not have been necessary to include the foregoing caveat to
clarify and complete the rule. For then, no adverse claim need be cancelled. If it has been
automatically terminated by mere lapse of time, the law would not have required the party in
interest to do a useless act.
It should be noted that the law employs the phrase“may be cancelled,” which obviously
indicates, as inherent in its decision making power, that the court may or may not order the
cancellation of an adverse claim, notwithstanding such provision limiting the effectivity of an
adverse claim for thirty days from the date of registration. The court cannot be bound by such
period as it would be inconsistent with the very authority vested in it. A fortiori, the limitation on
the period of effectivity is immaterial in determining the validity or invalidity of an adverse claim
which is the principal issue to be decided in the court hearing. It will therefore depend upon the
evidence at a proper hearing for the court to determine whether it will order the cancellation of
the adverse claim or not. To interpret the effectivity period of the adverse claim as absolute and
without qualification limited to thirty days defeats the very purpose for which the statute provides
for the remedy of an inscription of adverse claim, as the annotation of an adverse claim is a
measure designed to protect the interest of a person over a piece of real property where the
registration of such interest or right is not otherwise provided for by the Land Registration Act or
Act 496 (now P.D. 1529 or the Property Registration Decree), and serves as a warning to third
parties dealing with said property that someone is claiming an interest on the same or a better
right than the registered owner thereof.
Hence, the disputed inscriptions of adverse claim on the Transfer Certificate of Title No. N79073
was still in effect on February 12, 1985 when Quezon City Sheriff Roberto Garcia annotated the
notice of levy on execution thereto.
104 Register of Deeds vs Nicandro 111 Phil. 989 4/29/1961
Taguiling, Chrislyn Faith
Facts:
People's Homesite and Housing Corporation (PHHC) sold to the Rehabilitation Finance
Corporation, now the Development Bank of the Philippines (DBP), 159 lots which were included
in a larger parcel of land covered by TCT No. 1356. Subsequently, without the knowledge of the
DBP:
1) the 159 lots were segregated and a new transfer certificate of title No. 36533 covering
the same was issued;
2) that the subdivision plan segregating them was not annotated on the bigger title No.
1356; 3) the fact that title No. 1356 was pro tanto cancelled by the new title No. 36533.
4) PHHC sold 2 parcel of lands which were among the 159 lots already sold to the appellant
DBP
A month later, Honesto C. Nicandro and Elisa F. Nicandro presented to the Register of Deeds
for registration two deeds of sale executed by the PHHC in their favor yet were denied
registration. Hence, Nicandros filed affidavits of adverse claim over the two lots, which were
annotated on TCT No. 3653 to protect their right.
DBP on the other hand, discovering that the lots it had purchased are already covered by TCT
No. 36533, caused the annotation thereon of its deed of sale of October 20, 1955.
Issue:
It is clear from the above quotation that for this special remedy (adverse claim) to be availed of,
it must be shown that there is no other provision in the law for registration of the claimant's
alleged right or interest in the property. The herein claim of the Nicandros is based on a
perfected contract of sale executed in their favor by the lawful owner of the land.
Considering that the Land Registration Act specifically prescribes the procedure for registration
of a vendee's right on a registered property, the remedy provided in Section 110. Which was
resorted to and invoked by appellees, would be ineffective for the purpose of protecting their
said right or interest on the two lots.
Furthermore, the adverse claim of the Nicandros was annotated on TCT No. 35633 only on
February 17, 1959 and the sale to the DBP was registered as of January 15, 1959, the
certificate of title on the two lots in controversy should be issued in favor of the first registrant,
the DBP.
Issue:
Held:
Yes. The basis of Civil Case No. 3496 is a deed of absolute sale dated July 7, 1956, allegedly
executed by Simon Maghanay in favor of Juezan. This document is also the basis of the
Affidavit of Adverse Claim ordered cancelled by the trial court. The purpose of said adverse
claim is to protect the interest of the appellant pending this litigation. Thus, considering that a
notice of lis pendens had been annotated on T.C.T. No. T7601 Vi, the Court finds no basis for
maintaining the adverse claim. This Court sees no reason for disturbing the questioned order of
the trial court dated August 25, 1967 directing the cancellation of the Juezan’s adverse claim at
the back of transfer certificate of Title No. T7601. The notice of lis pendens filed by Juezan
affecting the same property in connection with Civil Case No. 3496 is sufficient.
ISSUE:
Whether or not the adverse claim is still valid
RULING:
“Whoever claims any part or interest in registered land adverse to the registered owner,
arising subsequent to the date of the original registration, may, if no other provision is made in
this Decree for registering the same, make a statement in writing, setting forth fully his alleged
right or interest, and how or under whom acquired, a reference to the number of the certificate
of title of the registered owner, and a description of the land in which the right or interest is
claimed.
The statement shall be signed and sworn to, and shall state the adverse claimant’s
residence, and a place at which all notices may be served upon him. This statement shall be
entitled to registration as an adverse claim on the certificate of title. The adverse claim shall be
effective for a period of thirty days from the date of registration. After the lapse of said period,
the annotation of adverse claim may be cancelled upon filing of a verified petition therefor by the
party in interest. Provided, however that after cancellation, no second adverse claim based on
the same ground shall be registered by the same claimant.”
In the same case, we held that for as long as there is yet no petition for its cancellation, the
notice of adverse claim remains subsisting: Thus:
“At first blush, the provision in question would seem to restrict the effectivity of the
adverse claim to thirty days. But the above provision cannot and should not be treated
separately, but should be read in relation to the sentence following, which reads:
After the lapse of said period, the annotation of the adverse claim may be cancelled
upon filing of a verified petition therefor by the party in interest.
If the rationale of the law was for the adverse claim to ipso facto lose force and effect
after the lapse of thirty days, then it would not have been necessary to include the foregoing
caveat to clarify and complete the rule. For then, no adverse claim need be cancelled. If it has
been automatically terminated by mere lapse of time, the law would not have required the party
in interest to do a useless act.”
In a petition for cancellation of adverse claim, a hearing must first be conducted. The hearing
will afford the parties an opportunity to prove the propriety or impropriety of the adverse claim
RULING:
NO. The applicable law in the case at bar is still Section 110 of Act No. 496, otherwise known as
the Land Registration Act despite the modification introduced by Section 70 of Presidential
Decree No. 1529.
c. the description of the land in which the right or interest is claimed, and
d. the certificate of title number
2. the statement must be signed and sworn to before a notary public or other officer
authorized to administer oath; and
3. The claimant should state his residence or the place to which all notices may be served
upon him.
The lower court quoted in part the adverse claim filed by the plaintiffs, to wit:
“That this adverse claim is being filed prior to the filing of a court action because all the
properties above¬ described formerly belong to my husband, the late Augusto Lozano.”
However, the lower court noted that “the adverse claim filed and annotated on the back of the
title of Marciana de Dios and later to the title of the herein defendant, did not meet the
requirements provided for in Section 110 of Act 496, that is setting forth fully how or under
whom the heirs of Lozano acquired the property.
We adhere to the lower court’s findings and find appellee’s position meritorious. A cursory
reading of the afore quoted adverse claim filed by the plaintiffs shows that the same has failed
to comply with the formal requisites of Section 110 of Act 496, more specifically the appellants’
failure to state how and under whom their alleged right or interest is acquired. Thus, the effect of
such non¬compliance renders the adverse claim non-¬registrable and ineffective.
In a case where the adverse claim filed for registration did not fully comply with the formal
requisites of Section 110 of Act No. 496, or more specifically, there being no description of the
land in which right or interest is claimed nor the place to which all notices may be served upon
the adverse claimant given, such adverse claim could not be registered. (LRC Consulta No.
144, Register of Deeds of Quezon City, pet., February 18, 1957)
____________________________________________________________________________
__
However, on 26 July 1930, the cadastral court issued another decree of registration excluding
Lots 2 and 3 from the decree of registration issued to Felomina.
____________________________________________________________________________
__
The cadastral court amended Felomina’s decree of registration because Vicente and Felisa had
already obtained a homestead patent over Lots 2 and 3.
____________________________________________________________________________
__
Despite the amended decree of 26 July 1930, Felomina was still able to have the title of Lot 2
reconstituted by invoking GLRO Case No. 15426.
____________________________________________________________________________
__
The reconstituted title of Lot 2, OCT No. RO¬8932, was issued to Felomina.
____________________________________________________________________________
__
ISSUE:
Whether or not the heirs of Napoleon has a right on the property
RULING:
The heirs of Napoleon has no right over the property.
____________________________________________________________________________
__
A homestead patent, once registered under the Land Registration Act, becomes as indefeasible
as a Torrens Title.
____________________________________________________________________________
__
Respondents’ parents, Vicente and Felisa, owned Lots 2 and 3 by virtue of a homestead patent.
Felomina had no right over Lot 2.
____________________________________________________________________________
__
Reconstitution is simply the restoration of a lost or destroyed instrument or title to its original
form and condition. Felomina had nothing to reconstitute as no certificate of title was ever
issued to her over Lot 2. Luis, from whom Napoleon purchased Lot 2¬A, was just as guilty as
his aunt Felomina in defrauding respondents.
____________________________________________________________________________
__
Luis was definitely not a buyer in good faith. Respondents were still in possession of Lot 2 when
Luis supposedly purchased the lot from Felomina and when Luis had the lot subdivided and the
subdivided lots titled.
____________________________________________________________________________
__
The only way for the heirs of Napoleon to validly claim Lot 2¬A is to prove that Napoleon
purchased Lot 2¬A in good faith.
____________________________________________________________________________
__
The trial and appellate courts ruled that Napoleon was not a purchaser in good faith. We agree
with the two courts.
____________________________________________________________________________
__
The trial and appellate courts pointed out that as early as 1966, there was already a brewing
dispute between respondents and Luis over Lot 2.Maria, Napoleon’s widow, testified that she
was with Napoleon when Luis sold to them Lot 2¬ A. Maria asserted that she was familiar with
the history of Lot 2¬A and the supposed previous owners Luis and Felomina. It was thus
impossible for Napoleon and Maria not to have known of the Bureau of Lands’ pending
investigation at the time Luis sold to them Lot 2¬A.
____________________________________________________________________________
__
The controversy between respondents and Luis should have prompted Napoleon to inquire into
the status of Luis’ title over Lot 2¬A. A purchaser cannot close his eyes to facts that should put
a reasonable man on his guard and still claim that he acted in good faith.
A holder in bad faith of a certificate of title is not entitled to the protection of the law.
____________________________________________________________________________
__
Assuming that Napoleon was unaware of the conflict over Lot 2¬A at the time of the execution
of the deed of sale, Napoleon was, however, already charged with knowledge of the flaw in Luis’
title at the time of the registration of the sale. Inscriptions of an adverse claim dated 23
November 1970 and lis pendens dated 14 September 1971 were already annotated on Luis’ title
over Lot 2¬A when Napoleon registered the Deed of Sale on 16 December 1971.
The notice of lis pendens is an announcement to the whole world that a particular real property
is in litigation. The inscription serves as a warning that one who acquires an interest over
litigated property does so at his own risk, or that he gambles on the result of the litigation over
the property. By disregarding the inscriptions and pursuing the registration of the sale,
Napoleon assumed the risk of losing Lot 2¬A to respondents. Napoleon’s heirs, being merely
the juridical continuation of his personality, hold Lot 2¬A in trust for respondents.
Issue:
May the Register of Deeds refuse to register an application for a notice of lis pendens on the
ground that the applicant does not have any title or right of possession over the subject
properties?
Held:
The notice of lis pendens is an announcement to the whole world that a particular real property
is in litigation, and serves as a warning that one who acquires an interest over said property
does so at his own risk, or that he gambles on the result of the litigation over said property.[13]
The registration of a notice of lis pendens is governed by Section 24, Rule 14 of the Rules of
Court:[14]
Sec. 24. Notice of lis pendens. In an action affecting the title or the right of possession of real
property, the plaintiff, at the time of filing the complaint, and the defendant, at the time of filing
his answer, when affirmative relief is claimed in such answer, or at any time afterwards, may
record in the office of the registrar of deeds of province in which the property is situated a notice
of the pendency of the action, containing the names of the parties and the object of the action or
defense, and a description of the property in that province affected thereby. From the time only
of filing such notice for record shall a purchaser, or incumbrancer of the property affected
thereby, be deemed to have constructive notice of the pendency of the action, and only of its
pendency against parties designated by their real names.
The notice of lis pendens hereinabove mentioned may be cancelled only upon order of the
court, after proper showing that the notice is for the purpose of molesting the adverse party, or
that it is not necessary to protect the rights of the party who caused it to be recorded.
TO REQUIRE THAT AN APPLICANT MUST PROVE HIS OWNERSHIP OR HIS INTEREST
OVER THE PROPERTY SOUGHT TO BE AFFECTED WITH THE NOTICE OF LIS PENDENS
WILL UNDULY RESTRICT THE SCOPE OF THE RULE. IN SUCH CASE, A PARTY
QUESTIONING THE OWNERSHIP OF THE REGISTERED OWNER WILL LITIGATE HIS OR
HER CASE WITHOUT AN ASSURANCE THAT THE PROPERTY WILL BE PROTECTED
FROM UNWANTED ALIENATION DURING THE PENDENCY OF THE ACTION, THEREBY
DEFEATING THE VERY PURPOSE AND RATIONALE OF THE REGISTRATION.KYLE
WHEREFORE, THE PETITION IS HEREBY GRANTED. THE ASSAILED DECISION IS
REVERSED AND SET ASIDE. THE LAND REGISTRATION AUTHORITY IS HEREBY
ORDERED TO ANNOTATE THE APPLICATION FOR A NOTICE OF LIS PENDENS IN TCT
NOS. 262631, 273873 AND 277938. NO COSTS.
SO ORDERED
San Lorenzo Development Corporation (Petitioner) filed a Motion for Intervention. San Lorenzo
alleged that in May 1989, the subject two parcels of land had been sold to it in a Deed of
Absolute Sale with Mortgage. It alleged that it was a buyer in good faith and for value and
therefore it had a better right over the property.
Babasanta argued that San Lorenzo could not have acquired ownership of the property and
emphasized that at the time San Lorenzo registered the sale in its favor in June 1990, there was
already a notice of lis pendens annotated on the titles of the property, which was made as early
as in June 1989. Hence, petitioner’s registration of the sale did not confer upon it any right.
Issue:
Whether the registration of the sale after the annotation of the notice of lis pendens obliterate
the effects of delivery and possession in good faith, which admittedly had occurred prior to
San Lorenzo’s knowledge of the transaction in favor of Babasanta.
Held/Ratio:
NO, because from the time of execution of the first deed up to the moment of transfer and
delivery of possession of the lands to San Lorenzo, it had acted in good faith; and as such, the
subsequent annotation of lis pendens has no effect at all on the consummated sale
between San Lorenzo and the Spouses Lu.
As early as February 1989, the Spouses Lu executed the Option to Buy in favor of
San Lorenzo upon receiving option money from it. After San Lorenzo had paid more than half
of the agreed purchase price, the Spouses Lu subsequently executed a Deed of Absolute Sale
in May 1989 in favor of San Lorenzo. At the time both deeds were executed, San Lorenzo
had no knowledge of the prior transaction of the Spouses Lu with Babasanta.
San Lorenzo qualifies as a buyer in good faith since there is no evidence extant in the records
that it had knowledge of the prior transaction in favor of Babasanta. At the time of the sale of
the property to San Lorenzo, the vendors were still the registered owners of the property and
were in fact in possession of the lands.
Issue:
Whether or not the notice of lis pendens annotated on the titles may be cancelled
Ruling:
Yes.
According to Section 24, Rule 14 of the Rules of Court and Section 76 of Presidential
Decree No. 1529, a notice of lis pendens is proper in the following cases, viz.:
YES. It is not disputed that appellants were never notified of the petition which initiated these
proceedings although they were mentioned therein as co-owners of the land to be subdivided.
The court, however, expressed the opinion that such notice was not necessary because the
purpose of the petition was merely to subdivide a parcel of land which is already covered by a
certificate of title among its new owners and that this can be done by merely filing with the Chief
of the General Land Registratin Office a subdivision plan and that, once the plan is approved,
the Register of Deeds may issue new certificates of title in pursuance of section 44 of Act No.
496, as amended by Republic Act No. 440. The court expressed the view that notice of hearing
is only necessary if there are streets or passageways included in the subdivision in which case
a petition shall be filed by the registered owner and the court shall not act thereon "after notice
and hearing as required by law. In the present case, the court intimated, no such street or
passageway is involved and so notice of hearing is unnecessary.
Issue:
Whether the CIty of Tagaytay can file an original registration on a property already covered by
an original certificate of title.
Held:
No. The previous decree and the certificate of title duly registered are binding upon all, including
the City of Tagaytay. The remedy for the City of Tagaytay is to secure first the Court's approval
of the subdivision plan segregating Lot No. 1. Then, have the deed of purchase registered and
secure the transfer certificate of title.
ISSUE:
Whether the TCTs which cover the increased area in question totaling 82,125 sqm shall be
cancelled.
HELD:
YES. The increased area in question, which is not a registered land but formerly a river bed, is
so big as to give allowance for a mere mistake in area of the original registration of the tracts of
land of the defendant appellant formerly belonging to and registered in the name of their
grandfather. In order to bring this increase in area, which the parties admitted to have been a
former riverbed of the Davao River, under the operation and coverage of the Land Registration
Law, Act 496, proceedings in registration of land title should have been filed instead of an
ordinary approval of subdivision plan. Under Sec. 44 of Act 496, which the
predecessor in interest of the herein defendant appellant took, is good only insofar as it
covers previously registered lands. In this case, part of the tracts of the land, particularly the
area of 82,127 sqm, has not yet been brought under the operation of the Torrens System.
Worse still, the approval of the subdivision plans was without the notice to all parties in interest,
more particularly the Director of Lands. For an applicant to have his imperfect or incomplete title
or claim to a land to be originally registered Act 496 provided certain requisites to be satisfied
and in this case, the said requisites were not complied with. Thus, the judgment appealed is
affirmed.
On March 19, 1981, the private respondent filed a case for unlawful detainer before the
Metropolitan Trial Court of Manila.The inferior court dismissed the case. The dismissal was both
affirmed by the Regional trial court and the Court of Appeals.
Petitioners ,on the other hand, claimed that on July 23, 1949, Ong Ching Po bought the parcel
of Land from Ong Joi Jong evidenced by a photo copy of a Deed of Sale conveying therewith
the he is acceding to the request of Mr. Ong Ching Po to sign another document in favor of
Soledad Parian forthe purpose of facilitating the issuance of the new title by the Register of
Deeds and for the reason that he is not yet a Filipino.
On December 12, 1985, petitioners Ong Ching Po and his children filed an action for re
conveyance and damages against private respondent in the RTC of Manila.
On July 26, 1986, private respondent filed an action for quieting of title against Ong Ching Po.
Upon the motion, the case was consolidated and on May 30, 1990, the TC rendered a decision
in favor of private respondent. On appeal by the petitioners to the CA, the court affirmed the
decision of the RTC. Hence the petition to the SC.
ISSUE
1) Whether or not Ong Ching Po as a Chinese citizen can validly acquire the land executed
under the Deed of Sale.
HELD/RATIO
1) No. An Alien is disqualified from acquiring lands in the Philippines. The Supreme Court
did not go along with the claim of the petitioner that Ong Ching Po merely used the private
respondent as a dummy to have the title over the parcel of land registered in her name because
being an alien he was disqualified to own real property in the Philippines. To sustain such
contention is a violation of the nationalization laws. Assuming that the Deed of sale is in
existence and was duly executed, still the petitioner cannot claim ownership of the land by virtue
of Section 5 Article XIII of the 1935 Constitution which provides that “ save in cases of
hereditary succession, no private agricultural land shall be transferred or assigned except to
individuals, corporations or associations qualifies to acquire or hold lands of the public domain
the Philippines,” this was further reiterated in the Section 14 Article XIV of the 1973 Constitution
and adopted in the 1987 Constitution, Section 7, Article XII which further states that “save in
cases of hereditary succession, no private lands shall be transferred or conveyed except to
individuals, corporations or associations qualified to acquire or hold lands in the public domain
of the Philippines”.
The capacity to acquire private land is made dependent upon the capacity to acquire or hold
lands of public domain. Private land maybe transferred or conveyed to individuals or entities
“qualified to acquire lands of the public domain.”The 1935 constitution reserved the right to
participate in the “disposition, exploitation, development and utilization” of all “lands of the public
domain and other natural resources of the Philippines” for Filipino citizens or corporations at
least sixty percent of the capital of which was owned by Filipinos. Aliens, whether individuals,
corporation, have been disqualified from acquiring public lands; hence, they have also been
disqualified from acquiring private lands. Petitioner Ong Ching Po was a Chinese citizen;
therefore he was disqualified from acquiring and owning real property. Assuming that the
genuineness and due execution of the Deed of sale has been established, the same is null and
void, it being contrary to law.
2) Yes. The private respondent took possession of the land. Under the law, possession is
transferred to the vendee by virtue of the notarized deed of conveyance. Under Art 1498 of the
Civil Code of the Philippines, “when the sale is made through a public instrument, the execution
thereof shall be equivalent to the delivery of the object of the contract, if from the deed the
contrary does not appear or cannot clearly be inferred. If what the petitioners meant was that
the private respondent never lived in the building constructed on said land, it was because her
family had settled in Iloilo. It is markworthy that all the tax receipts were in the name of private
respondent and her husband. The rental receipts were also in the name of her husband.
The Dinglasans (vendors) sold the subject property to Lee Liong (vendee), a Chinese citizen.
Later on, the vendors filed an action against the heirs of the vendee for the annulment of sale
and recovery of the land assailing the validity of the sale on the ground of the constitutional
prohibition against aliens acquiring ownership private or public land. The RTC, CA and SC ruled
neither for the vendors and vendee applying the principle of pari delicto. Another case was filed
against the same defendants by the same plaintiffs but this was barred by res judicata as
decided by the SC. After the war, the widows, Elizabeth Manuel-Lee and Pacita Yu-Lee, of the
heirs of Lee Liong, both Filipino Citizens, herein petitioners filed with the RTC a petition for the
reconstitution of title of the subject property and granted the same. The Solicitor General filed a
petition for annulment of judgment of reconstitution. OSG contended that the petitioners were
not the proper parties in the reconstitution of title, since their predecessor-in-interest Lee Liong
did not acquire title to the lot because he was a Chinese citizen and was constitutionally not
qualified to own the subject land. CA ruled in favor of the OSG. Hence, this petition.
Issue/s:
WON the successors-in-interest (petitioners) of an Aliens has the right to acquire the subject
property.
Held/Ratio:
YES. The sale of the land was consummated in 1936, under the 1935 Constituion, aliens could
not acquire private agricultural lands, save in cases of hereditary succession. Here, Alien Lee
Liong is disqualified to acquire the land however ownership of the land cannot revert to the
original seller because of the principle of pari delicto. Now, the subject land is in the hands of
the petitioners, both Filipinos. The constitutional proscription on alien ownership of lands of the
public or private domain was intended to protect lands from falling in the hands of non Filipinos.
In this case, however, there would be no more public policy violated since the land is in the
hands of Filipinos qualified to acquire and own such land. “If land is invalidly transferred to an
alien who subsequently becomes a citizen or transfers it to a citizen, the flaw in the original
transaction is considered cured and the title of the transferee is rendered valid.” Thus, the
subsequent transfer of the property to qualified Filipinos may no longer be impugned on the
basis of the invalidity of the initial transfer. The objective of the constitutional provision to keep
our lands in Filipino hands has been achieved.
Petition GRANTED.
“In grateful acknowledgment of the personal services of the lessee to her,” Justina Santos
executed a contract of lease in favor of Wong, covering the entire property, including the portion
on which the house of Justina Santos stood.
She then executed another contract giving Wong the option to buy the leased premises. The
option was conditioned on his obtaining Philippine citizenship, a petition for which was then
pending in the Court of First Instance of Rizal. It appears, however, that this application for
naturalization was withdrawn when it was discovered that he was not a resident of Rizal. In
1958 she filed a petition to adopt him and his children on the erroneous belief that adoption
would confer on them Philippine citizenship. The error was discovered and the proceedings
were abandoned.
Later on, she executed two other contracts, one extending the term of the lease to 99 years,
and another fixing the term of the option of 50 years.
In two wills executed on, she bade her legatees to respect the contracts she had entered into
with Wong, but in a codicil of a later date she appears to have a change of heart. Claiming that
the various contracts were made by her because of machinations and inducements practised by
him, she now directed her executor to secure the annulment of the contracts. Action was filed,
and the court was asked to direct the Register of Deeds of Manila to cancel the registration of
the contracts
Both parties died during the pendency of the action. Wong was substituted by his wife, Lui She,
while Justina Santos was substituted by the Philippine Banking Corporation.
ISSUE:
Whether an alien may validly acquire lease right and an option to buy a real property.
HELD/RATIO:
No.
A lease to an alien for a reasonable period is valid. So is an option giving an alien the right to
buy real property on condition that he is granted Philippine citizenship. As this Court said in
Krivenko v. Register of Deeds:
“[A]liens are not completely excluded by the Constitution from the use of lands for
residential purposes. Since their residence in the Philippines is temporary they may be
granted temporary rights such as a lease contract which is not forbidden by the
Constitution. Should they desire to remain here forever and share our fortunes and
misfortunes, Filipino citizenship is not impossible to acquire.”
But if an alien is given not only a lease of, but also an option to buy, a piece of land, by virtue of
which the Filipino owner cannot sell or otherwise dispose of his property, this to last for 50
years, then it becomes clear that the arrangement is a virtual transfer of ownership whereby the
owner divests himself in stages not only of the right to enjoy the land (jus possidendi, jus utendi,
jus fruendi and jus abutendi) but also of the right to dispose of it (jus disponendi)—rights the
sum total of which make up ownership. It is just as if today the possession is transferred,
tomorrow, the use, the next day, the disposition, and so on, until ultimately all the rights of which
ownership is made up are consolidated in an alien. And yet this is just exactly what the parties
in this case did within the space of one year, with the result that Justina Santos’ ownership of
her property was reduced to a hollow concept.
As this Court said in Krivenko:
“It is well to note at this juncture that in the present case we have no choice. We are
construing the Constitution as it is and not as we may desire it to be. Perhaps the effect
of our construction is to preclude where they may build aliens admitted freely into the
Philippines from owning sites their homes. But if this is the solemn mandate of the
Constitution, we will not attempt to compromise it even in the name of amity or equity,
xxx
“For all the foregoing, we hold that under the Constitution aliens may not acquire private
or public agricultural lands, including residential lands, and, accordingly, judgment is
affirmed, without costs.”