As the law and the rules state, a Certificate of Title, whether it is a TCT or OCT [Original Certificate of

Title], is an indispensable requirement in applying for building permit for purposes of constructing
certain edifice or structure, such as buildings or towers, among others, in a specific parcel of land.

However, there may be a situation where a land is not yet covered by a Certificate of Title, as the same
has not yet been registered under the Torrens System of Registration. The law and the rules are silent
on this point.

The law presumes that when one is constructing something on a certain lot, it has the character of
permanence. Thus, such land must have a registered owner and the land itself must be registered under
the Torrens System of Registration.

This will obviate the possibility of conflicting claimants in the future, and the structures that have been
built thereon shall be secured from unscrupulous land grabbers.

Recommendations

Consequently, it is suggested that the company shall make sure that the property is a titled one. In the
event that property is unregistered, the next best thing to do is inquire upon the Register of Deeds
whether such property is registered under Act 3344.

This is the law that provides for a recording in the Registry of Deeds of lots which are not yet covered by
the Torrens System of Registration.

While, it may not an assurance to grant the application for building permit, you may present a
certification coming from the registry of deeds of the place where the land is located that the same is
recorded under the authority of Act. No. 3344, together with the other documentary requirements.

When Paula sold to Bernandita by Deed of Absolute Sale dated June 1, 1992 the parcel of land of which
the questioned lot formed part, ownership thereof was transferred to the latter in accordance with
Article 1496 of the Civil Code reading:

ART. 1496. The ownership of the thing sold is acquired by the vendee from the moment it is delivered
to him in any of the ways specified in articles 1497 to 1501, or in any other manner signifying an
agreement that the possession is transferred from the vendor to the vendee,

in relation to Article 1498 of the Civil Code reading:

ART. 1498. When the sale is made through a public instrument, the execution thereof shall be
equivalent to the delivery of the thing which is the object of the contract, if from the deed the contrary
does not appear or cannot clearly be inferred.