QUESTIONS

ANSWER

1.        What is memorandum of encumbrances and where is it annotated?

At the dorsal side of a certificate of title is a memorandum of encumbrances affecting the property. It is here that all interests in
registered lands less than ownership, like a mere contract to sell for example, shall be entered by the Register of Deeds. It is not
necessary to issue a new certificate on the basis of an instrument which does not divest ownership or title from the owner or from
the transferee of the registered owner. A brief memorandum of the nature of the instrument entered on the certificate of title,
signed by the Register of Deeds, shall serve as notice to third persons of the instrument affecting the property. A similar entry
shall also be made on the owner’s duplicate certificate of title. The cancellation of such interests or rights shall also be recorded
in the same manner.

2.        What is its purpose?

It is a brief memorandum of the nature of the instrument entered on the certificate of title, signed by the Register of Deeds which
shall serve as notice to third persons of the instrument affecting the property. Its purpose is to show that the grantee obtained the
land or portion thereof subject to subsisting encumbrances attached to the title of his grantor.

3.        What happens if an encumbrance is not annotated?

Any encumbrance not annotated shall not affect and bind the land as against third persons.

4.        What is a homestead patent?

Homestead patent is one of the modes by which the public lands suitable for agricultural purposes are disposed of. Its object is to
provide a home for each citizen of the state, where his family may shelter and live beyond the reach of financial misfortune, and
to inculcate in individuals those feelings of independence which are essential to the maintenance of free institutions.

5.        If a land is considered private, can they no longer be eligible for a homestead patent?
No. (please refer to the preceeding number for the meaning of a homestead patent. The subject of a homestead patent is only
public lands suitable for agricultural purposes. Please see page 549 of Agcaoili book.

6.        Can someone purchase a free patent from another individual?

A grantee or a homesteader is prohibited from alienating to a private individual a land grant within 5 years from the time that the
patent or grant is issued. A violation of this prohibition renders the sale void. This prohibition, however, expires on the fifth year.
From then on until the next 20 years, the land grant may be alienated provided the Secretary of Environment and Natural
Resources approves the alienation. The Secretary is required to approve the alienation unless there are constitutional and legal
grounds to deny the approval. (Please see Agcaoili book page 561-562 for further explanation and also please take note on the
amendment under RA 11231 which removes the restrictions imposed).
RA 11231:
Section 3. Agricultural public lands alienated or disposed in favor of qualified public land applicants under Section 44 of
Commonwealth Act No. 141, as amended, shall not be subject to restrictions imposed under Sections 118, 119 and 121 thereof
regarding acquisitions, encumbrances, conveyances, transfers, or dispositions. Agricultural free patent shall now be considered as
title in fee simple and shall not be subject to any restriction on encumbrance or alienation.
7.        What is Lis Pendens?
Lis pendens literally means a pending suit. The doctrine of lis pendens refers to the jurisdiction, power or control which a court
acquires over property involved in a suit, pending the continuance of the action, and until final judgment. It merely creates a
contingency and not a lien. It does not produce any right or interest which may be exercised over the property of another. It only
protects the applicant’s rights which will be determined during trial.

8.        What is the difference between Lis Pendens and adverse claim?
On one hand, adverse claim is a notice to third persons that any transaction regarding the disputed land is subject to the outcome
of the dispute. Its purpose is to apprise third persons that there is a controversy over the ownership of the land and to preserve
and protect the right of the adverse claimant during the pendency of the controversy. On the other hand, lis pendens literally
means pending suit. It operates as a notice to the whole world that a particular real property is in litigation. The inscription serves
as a warning that one who acquires interest over litigated property does so at his own risk, or that he gambles on the result of the
litigation over the property. Its purpose is to protect the rights of the party causing the registration of the lis pendens and to advise
third persons who purchase or contract on the subject property that they do so at their peril and subject to the result of the
pending litigation.

9.        How can the adverse claim and lis pendens be discharged?
The adverse claim shall be effective for a period of 30 days from the date of registration and it may be cancelled. However, the
interested party must file with the proper court a petition for cancellation of adverse claim, and a hearing must also first be
conducted.

On the other hand, under Sec. 77 of P.D. 1529, a notice of lis pendens shall be deemed cancelled only upon the registration of a
certificate of the clerk of court in which the action or proceeding was pending stating the manner of disposal thereof if there was
a final judgment in favor of the defendant or the action was disposed of terminating finally all rights of the plaintiff over the
property in litigation (Isabelita Cunanan et al., v. Jumping Jap Trading Corporation et al., G.R. No. 173834, April24, 2009).
Requisites:
a. There should be a pledge, mortgage, antichresis of property by way of security for the payment of the principal obligation;
and
b. Stipulation for the automatic appropriation of the property in favor of the creditor upon default of the debtor/pledger
Any agreement in the nature of pactum commissorium is void, it being contrary to public policy. (page 458 of Agcaoili book)
 13.     What if there is an internal agreement, can that be valid despite pactum commissorium?
There is no prohibition if the internal agreement involves dacion en pago (payment with property). But if the agreement involves
a mortgaged property- then it is prohibited for it is pactum commissorium.

14.     What is the nature and purpose of an adverse claim?

Adverse claim: It is a notice to third persons that someone is claiming an interest on the property or has a better right than the
registered owner thereof, and that any transaction regarding the disputed land is subject to the outcome of
the dispute.

Purpose:
• to apprise third persons that there is a controversy over the ownership of the land and
• to preserve and protect the right of the adverse claimant during the pendency of the controversy.

15.     What are the requisites for the adverse claim?

1. Adverse claimant must state the following in writing:
a. His alleged right or interest;
b. How and under whom such alleged right of interest is acquired;
c. Description of the land in which the right or interest is claimed; and
d. Certificate of title number
2. Such statement must be signed and sworn to before a notary public or other officer authorized to administer oath; and
3. Claimant shall state his residence or place to which all notices may be served upon him.
16.     What are the remedies if one will refuse to have the property registered to the person who is the highest bidder?
Section 107. Surrender of withhold 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 not 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.

17.     Who are qualified to apply for sales patent?

(a) a Filipino citizen of lawful age or such citizen not of lawful age who is a head of a family; and
(b) who purchased public agricultural land of not more than 12 hectares. (source: GN)

18.     What are the incidents when aliens may own land in the Philippines?
1) Aliens who were formerly natural-born citizens of the Philippines. As transferees of a private land, they could apply for
registration in accordance with the mandate of Section 8, Article XII of the Constitution which states that notwithstanding the
provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a
transfereeof private lands, subject to limitations provided by law. (Republic v. CA and Lapina, G.R. No. 108998, August 24,
1994)

2) Under R.A. No. 4726, foreign nationals can own Philippine real estate through the purchase of condominium units or
townhouses. It expressly allows foreigners to acquire condominium units and shares in condominium corporations up to not more
than 40% of the total and outstanding capital stock of a Filipino owned or controlled corporation.

19.     What is reconveyance?

It is an action seeking to transfer or reconvey the land from the registered owner to the rightful owner. It is a legal and equitable
remedy granted to the rightful owner of land which has been wrongfully or erroneously registered in the name of another for the
purposes of compelling the latter to transfer or reconvey the land to him.

20.     Is reconveyance an action in rem or personam?

in personam

Action in Personam is an action in which judgment is sought against a person. The word 'in personam' derived from Latin word
'in personem' which means against a person. Judicial proceeding will be against a person and not against the property of that
person.

21.     Who is an innocent purchaser in good faith and for value?

A purchaser in good faith and for value is one who buys property of another, without notice that some other person has a right to,
or interest in, such property, and pays a full and fair price for the same, at the time of such purchase, or before he has notice of
the claim or interest of some other person in the property.

22.     How does the law protect innocent purchasers for value?
- By mirror doctrine---All persons dealing with a property covered by Torrens certificate of title are not required to go beyond
what appears on the face of the title. Where there is nothing on 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 further than what the Torrens
title upon its face indicates in quest for any hidden defect or inchoate right that may defeat his right thereto.

23.     What is the nature of Section 103, about patents?

-Patent- A patent grants the patent holder the exclusive right to exclude others from making, using, importing, and selling the
patented innovation for a limited period of time.
- Section 103. Certificates of title pursuant to patents. Whenever public land is by the Government alienated, granted or conveyed
to any person, the same shall be brought forthwith under the operation of this Decree. It shall be the duty of the official issuing
the instrument of alienation, grant, patent or conveyance in behalf of the Government to cause such instrument to be filed with
the Register of Deeds of the province or city where the land lies, and to be there registered like other deeds and conveyance,
whereupon a certificate of title shall be entered as in other cases of registered land, and an owner’s duplicate issued to the
grantee. The deed, grant, patent or instrument of conveyance from the Government to the grantee shall not take effect as a
conveyance or bind the land but shall operate only as a contract between the Government and the grantee and as evidence of
authority to the Register of Deeds to make registration. It is the act of registration that shall be the operative act to affect and
convey the land, and in all cases under this Decree, registration shall be made in the office of the Register of Deeds of the
province or city where the land lies. The fees for registration shall be paid by the grantee. After due registration and issuance of
the certificate of title, such land shall be deemed to be registered land to all intents and purposes under this Decree.

24.     What should I do if I lost my certificate of title?

go to court for reissuance of certificate of title.

25.     What is the difference between a certificate of title and title?

By title, the law refers to ownership which is represented by the original certificate of title or transfer certificate of title.
Ownership is different from a certificate of title. The certificate of title is only the best proof of ownership of a piece of land.

Title to real property refers to that upon which ownership is based. It is the evidence of the right of the owner or the extent of his
interest, by which means he can maintain control and assert right to exclusive possession and enjoyment of the property. A
certificate of title, on the other hand, is mere evidence of ownership it is not the title to the land itself. The certificate of title
accumulates, in one document, a precise and correct statement of the exact status of the fee simple title, which the owner has. The
Section 103. Certificates of title pursuant to patents. Whenever public land is by the Government alienated, granted or conveyed
to any person, the same shall be brought forthwith under the operation of this Decree. It shall be the duty of the official issuing
the instrument of alienation, grant, patent or conveyance in behalf of the Government to cause such instrument to be filed with
the Register of Deeds of the province or city where the land lies, and to be there registered like other deeds and conveyance,
whereupon a certificate of title shall be entered as in other cases of registered land, and an owner's duplicate issued to the grantee.
The deed, grant, patent or instrument of conveyance from the Government to the grantee shall not take effect as a conveyance or
bind the land but shall operate only as a contract between the Government and the grantee and as evidence of authority to the
Register of Deeds to make registration. It is the act of registration that shall be the operative act to affect and convey the land, and
in all cases under this Decree, registration shall be made in the office of the Register of Deeds of the province or city where the
land lies. The fees for registration shall be paid by the grantee. After due registration and issuance of the certificate of title, such
land shall be deemed to be registered land to all intents and purposes under this Decree.
44.     Can you lease a patent to someone else? Who should be able to apply?
rovisions shall not be subject to encumbrance or alienation from the date of the approval of the application and for a term of five
years from and after the date of issuance of the patent or grant nor shall they become liable to the satisfaction of any debt
contracted prior to the expiration of said period; but the improvements or crops on the land may be mortgaged or pledged to
qualified persons, associations, or corporations.

No alienation, transfer, or conveyance of any homestead after five years and before twenty-five years after issuance of title shall
be valid without the approval of the Secretary of Agriculture and Natural Resources, which approval shall not be denied except
on constitutional and legal grounds. (As amended by Com. Act No. 456, approved June 8, 1939.)"

x x x

"Sec. 121. Except with the consent of the grantee and the approval of the Secretary of Agriculture and Natural Resources, and
solely for educational, religious, or charitable purposes or for a right of way, no corporation, association, or partnership may
acquire or have any right, title, interest, or property right whatsoever to any land granted under the free patent, homestead, or
individual sale provisions of this Act or to any permanent improvement on such land. (As amended by Com. Act No. 615,
approved May 5, 1941)

Sec. 122. No land originally acquired in any manner under the provisions of this Act, nor any permanent improvement on such
land, shall be encumbered, alienated or transferred, except to persons, corporations, association, or partnerships who may acquire
lands of the public domain under this Act or to corporations organized in the Philippines authorized therefore by their charters.

Except in cases of hereditary successions, no land or any portion thereof originally acquired under the free patent, homestead, or
individual sale provisions of this Act, or any permanent improvement on such land, shall be transferred or assigned to any
individual, nor shall such land or any permanent improvement thereon be leased to such individual, when the area of said land,
added to that of his own, shall exceed one hundred and forty-four hectares. Any transfer, assignment, or lease made in violation
hereto shall be null and void. (As amended by Com. Act No. 615, Id.)"

45.     PD 11231 – Discuss the latest Law regarding patents

Platon Martinez Law

In order to stimulate wealth creation and economic development, Republic Act No. 11231 (RA No. 11231) lifted the restrictions
imposed by Commonwealth Act No. 141 (CA No. 141) on the registration, acquisition, encumbrance, transfer and conveyance of
lands covered by agricultural free patents.
Previously, Section 118 of the CA No. 141 prohibits the encumbrance or alienation of lands acquired under free patent, except to
the government or any of its branches, within five (5) years from the issuance of the patent or grant. Likewise, Section 119
provides that the applicant, his widow, or legal heirs can repurchase a land acquired under the free patent provisions within five
(5) years from the date of transfer or sale.
Moreover, corporations, associations, or partnerships are forbidden from acquiring any property right, title or interest on free
patent except when the grantee and the Secretary of Natural Resources approves of the conveyance solely for commercial,
industrial, educational, religious, charitable, or right of way purposes.
With the enactment of RA No. 11231, an agricultural free patent is now a title in fee simple free of any restriction on its
encumbrance or alienation. It applies retroactively such that any restrictions on the acquisition, encumbrances, or dispositions on
agricultural free patents issued prior to the enactment of RA No. 11231 shall be removed and immediately lifted.

46.     What are the grounds for the amendment of a certificate of title?
Under Section 108 of PD 1529, the proceeding for the erasure, alteration, or amendment of a certificate of title may be resorted to
in seven instances: (1) when registered interests of any description, whether vested, contingent, expectant, or inchoate, have
terminated and ceased; (2) when new interests have arisen or been created which do not appear upon the certificate; (3) when any
error, omission or mistake was made in entering a certificate or any memorandum thereon or on any duplicate certificate; (4)
when the name of any person on the certificate has been changed; (5) when the registered owner has been married, or, registered
as married, the marriage has been terminated and no right or interest of heirs or creditors will thereby be affected; (6) when a
corporation, which owned registered land and has been dissolved, has not conveyed the same within three years after its
dissolution; and (7) when there is reasonable ground for the amendment or alteration of title.

47.     Foreclosure sales—if i mortgaged my property to you and i failed to pay, and the property is sold at the public auction, if
the certificate of title was denied to be given/surrendered, what are the remedies?
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 withholding certificates 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 certificates of title in lieu thereof. Such new certificate and all duplicates thereof shall contain a memorandum
of the annulment of the outstanding duplicate the Regional Trial Court, after hearing, is authorized and empowered to order the
registered owner of the parcel of land in question or any person withholding the owner's duplicate copy of the certificate or
memorandum upon surrender thereof, otherwise if the person withholding said duplicate copy of the certificate is not amenable to
the process, the trial Court may order annulment of the same and issuance of a new certificates of title in lieu thereof. That is
what the Regional Trial Court did in this case. And that it did correctly and
properly.(G.R. No. 130380 March 17, 1999