QUIETING OF TITLE

Art. 476. Whenever there is a cloud on title to real property or any interest therein, by
reason of any instrument, record, claim, encumbrance or proceeding which is apparently
valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable,
and may be prejudicial to said title, an action may be brought to remove such cloud or to
quiet the title.

An action may also be brought to prevent a cloud from being cast upon title to real
property or any interest therein.

Cloud on Title
 It is a semblance of title, either legal or equitable, or a claim or a right in real property,
appearing in some legal form but which is, in fact, invalid or which would be inequitable
to enforce.
 Quieting of title assumes that the defect in the instrument, etc. is not apparent on its face
and has to be proved by extrinsic evidence. If the instrument is invalid/ineffective on its
face, there is no evidence required to prove the title or interest
 Requisites
o There is an instrument, record, claim, encumbrance or proceeding which is
valid or effective
o Such instrument, etc. is in truth, and in fact, invalid, ineffective, voidable, or
unenforceable, or has been extinguished or terminated, or has been barred by
extinctive prescription (A478)
o Such instrument, etc. may be prejudicial to said title.
 EXAMPLES:
o An absolutely fictitious contract of sale or sale with simulated consideration
o A sale by an agent without written authority or after expiration of his authority
o A forged contract
o A contract of sale or donation which has become inoperative because of non-
performance by the vendee or donee of a condition precedent (A1181)
o A voidable contract where consent was vitiated or entered w/o capacity (A1326)
Action to Quiet Title
 An action to remove cloud on or to quiet title is a remedy or proceeding which has for its
purpose an adjudication that a claim of title to realty or an interest thereon is invalid or
inoperative, or otherwise defective.
 An action which may be brought either to (a) remove a cloud on title to a real property
(b) prevent a cloud from being cast thereon (Art. 476)
 Legal title – Registered owner
 Beneficial title --
 Requisites for an action to quiet title to prosper:
o The plaintiff has a legal or an equitable title to, or interest in the real property
subject of the action (A477)
 o The deed, claim, or proceeding claimed to be casting cloud on his title must be
shown to be, in fact, invalid or inoperative despite its prima facie
appearance of validity or legal efficacy

Action to quiet title (Remove Cloud)
Purpose: to put an end to troublesome
litigation wrt property involved
First paragraph of 476
Remedial action involving adverse
claims
Action to remove the cloud on title
(Prevent Cloud)
Removal of a possible foundation of a
future hostile claim
Second paragraph of 476
Preventive action to prevent future
cloud on the title

By analogy, and as a matter of equity, the provisions may be applied to personalty under
exceptional circumstances with respect to certain types of property (e.g., vessels, motor
vehicles, certificate of stocks) which partake of the nature of real property or are treated to some
extent as realty because of registration requirements for ownership or transactions (e.g., chattel
mortgage) affecting them.

1. REAL PROPERTY OR AN INTEREST THEREIN → The action to quiet title applies to real
property only and not to personal property, and with respect to real property, it may refer only to
legal or equitable title or only an interest therein, such as usufruct, servitude, lease record, and
real mortgage, and need not be in possession of the property. (Art. 477)
2. CERTAIN TYPES OF PERSONAL PROPERTY → The law, however, does not expressly
exclude personal property from actions to quiet title.

By analogy, and as a matter of equity, the provisions may be applied to personalty under
exceptional circumstances with respect to certain types of property (e.g., vessels, motor
vehicles, certificate of stocks) which partake of the nature of real property or are treated to some
extent as realty because of registration requirements for ownership or transactions (e.g., chattel
mortgage) affecting them.

WHO, WHAT, WHERE, WHY

REAL PROPERTY
INSTRUMENT, RECORD, CLAIM, ENCUMBRANCE, PROCEEDING
APPARENTLY, VALID.
MAY BE PREJUDICIAL TO YOUR TITLE
TO REMOVE THE CLOUD / PREVENT THE CLOUD

Art. 477. The plaintiff must have legal or equitable title to, or interest in the real property
which is the subject matter of the action. He need not be in possession of said property.

Title and possession

  Title does not mean certificate title issued in favor of the person filing the suit.
o A legal title may consist in full ownership or in naked ownership which is
registered in the name of the plaintiff.
o If the plaintiff (e.g., cestui que trust) has the beneficial interest in the property the
legal title of which pertains to another (e.g., trustee), he is said to have equitable
title.
o An interest in property is any interest short of ownership, like the interest of a
mortgagee or a usufructuary

Art. 478. There may also be an action to quiet title or remove a cloud therefrom when the
contract, instrument or other obligation has been extinguished or has terminated, or has
been barred by extinctive prescription
When action allowed
 when the contract, instrument, or other obligation has been extinguished, or has
terminated, as where the right of the defendant to the property has been extinguished by
the happening of a condition subsequent (e.g., donation of land shall be cancelled upon
failure of donee municipality to build a school house thereon within a certain period)
 when the contract, instrument or other obligation has been barred by extinctive
prescription, as where the plaintiff has possessed in bad faith the property publicly,
adversely, and uninterruptedly for thirty years.

Art. 479. The plaintiff must return to the defendant all benefits he may have received from
the latter, or reimburse him for expenses that may have redounded to the plaintiff’s
benefit.

Restitution
 Plaintiff must return to the defendant all benefits he may have received from the latter, or
reimburse him for expenses that may have redounded to the plaintiff’s benefit

Art. 480. The principles of the general law on the quieting of title are hereby adopted
insofar as they are not in conflict with this Code.
 The cloud must not be created by the applicant nor is it his obligation to discharge or
remove

Art. 481. The procedure for the quieting of title or the removal of a cloud therefrom shall
be governed by such rules of court as the Supreme Court shall promulgate.
 Rule 63 (Declaratiory Relief)

Article 1134. Ownership and other real rights over immovable property are acquired by
ordinary prescription through possession of ten years.
Article 1137. Ownership and other real rights over immovables also prescribe through
uninterrupted adverse possession thereof for thirty years, without need of title or of good
faith.

Rules on Prescription
 If the plaintiff is not in possession of the property, he must invoke his remedy within the
proper prescriptive period of ten or thirty years depending on ordinary or extraordinary
prescription
 In addition to the action to quiet title, the plaintiff who is not in possession may also bring
an action for ejectment, or to recover the better right of possession, or to recover
ownership which must be brought within the proper statutory periods of limitation
governing such actions.
