L a n d a s

Co l l a t e r a l
C r e d i t s
& C o l l e c t i o n s
 Land Value
A valuable piece of land was
sold for approximately the
equivalent of $0.50 U.S.
currency. That land is located in
Manhattan Island which is
about 13 miles long and two
miles wide. Its area is a little
more than 23 square miles.
 a s C o l l a t e r a l
Land i c s , l a n d t h a t y i e ld s r e n t is
In e c o n o m
a s s u p r a - m a r g i n al
e t im e s r e f e r r e d to
som a p r o d u ct
h a t d o e s n o t y ie l d
land . L a nd t
t o f c u l t iv a t i n g o r
i n v a l u e to th e c os
equal r g i n a l l a n d.
iz i n g it i ss u b - m a
otherw is e u ti l
Fun c t i o n o f L a n d
o f la n d i s th at i t
o b v io u s f u n c t io n
The most m " .
ta n d i n g r o o
provides "s te s a ll
io n , l an d c o n t r ib u
o f p r o d u c t
As a factor a t a r e u s e d in
m a te r i a l th in g s th
the or i gi n a l
d u c t i o n o f g o o d s.
the pro
Mo d e s o f
Ac q u i r i n g
i t l
T nd as e
La
Colla t e r a l
 Public Grant Private Grant Involutary Grant
Acquisition of public land of Voluntary transfer or Acquisition against consent
homestead patent, sales conveyances as deed of sale, of former owner, such as
patent, and miscellaneous deed of donation, deed of foreclosure or execution or
patents. exchange, deed of sale.
assignments.
Inheritance Reclamation Accretion
Acceptance of heredity Filing of submerged land Acquisition of more lands
succession. subject to government adjoining banks or rivers due
regulations and existing to gradual deposit of soil.
laws.
 Prescription
Acquisition of title by actual,
open continuous and
uninterrupted possession for
a period of time under claim
of title.
 Under the laws of the
Philippines, title of
TITLE OF
ownership over a piece of
land is evidenced by the
grant of Torrens Certificate
OWNERSHIP
of Title by the government.

Robert Richard
Torrens
He introduced the
system of ownership in
1859.
He is native of
Ireland who became an
Australian in his later
years.
 Proceedings
Survey of the land by the Preparation and filing of Setting the date for the Transmittal of the duplicate Publication of notice of
Bureau of Lands or by a the application for hearing of the application of the application and the filing the application, date
duly licensed surveyor. registration by the by the Court of competent date of initial hearing and place of the hearing
applicant. jurisdiction. together with the documents once in a newspaper of
attached thereto by the Clerk general circulation and once
of Court to the Land in the Official Gazette.
Registration Commission
(LRC), now Land
Registration Administration
(LRA). Lately, the LRA was
changed to the National
Land Title and Deeds
Registration Administration
(NALTDRA).
 Proceedings
Service of Notice upon Filing of the answer to Hearing of the case by Issuance of the order by Entry of the decree of
contiguous owners or the application by any the court. the Court declaring the registration in the
occupants and those person whether named judgment final and Registration
known to have an in the notice or not. instructing the Land Administration
interest in the property Registration
by the sheriff Administration to issue
the decree of registration
in accordance with
Section 39 of P.D. No.
1529.
 Proceedings
Sending a copy of the Transcription of the
decree of registration to decree of registration in
the corresponding the registration book and
Register of Deeds by the issuance of the
the Land Registration owner’s duplicate
Administration. certificate of title to the
applicant by the Register
of Deeds upon payment
of the prescribed fee.
All lands that are covered by the Transfer Certificate of Title could be used as
collateral, irrespective of kinds (residential, agricultural, raw land).

Their acceptance as collateral, among others, is anchored on the genuineness of the

title free from encumbrances. For the protection of the prospective lender, it
becomes incumbent and necessary for him to determine the genuineness of the
title, among other things, verifying the identity of the true owners.
 Other Terms
Titulong Malinis Task Appraisal Fair market value
Force
An interagency cooperative cleanup to It is an act of estimating, assessing, The highest price in terms of money
fight land titling frauds, an implicated evaluating, or rating. that a property will bring to the owner
admission of the magnitude of land When the existing title to support a if offered for sale in an open market.
titling frauds in the country. loan application is found to be
authentic, the next step is for
appraisers to conduct an ocular
inspection.
An appraisal can be used for loan
purposes, tax purposes, and the
purpose of knowing the fair market
value of a property that is proposed
for sale or resale.
 Important Factors

4. In the case of
agricultural land, its
1. A competent 2. Since land is a piece 3. Where the land is [Link] water is not only
nearness to transport
appraiser must be of immovable property, near transport facilities, important but moreover
facilities is a marked
endowed with an its location has an it is capable of being indispensable to all
advantage. It becomes a
exceptional degree of important bearing on its used for varied agricultural activities,
facilitating factor in the
intelligence and an value. purposes, as for nearness to such resourd
movement of goods from
analytical frame of instance, for commercial represent a plus factor.
the farm to the urbar
mind to enable him to or business purposes,
centers of population
perform his job well. apart from residential.
thereby resulting in
saving in transport cost
which is an unavoidable
expense in marketing.
 Important Factors

6. Topography. Land
that is characterized by 7 .Peace and Order. The
an uneven elevation prevailing peace and
tend to depress its order condition affects
market value. Such type the value of land.
of land may be serve as
a "catch-basin" catching
the water that fal during
the rainy days. As may
be expected buyers
shun away from this
kind of land.
Zonal Valuation
Different approaches to valuation of properties
have been introduced in this [Link] the case
of land, not only is its dictated by the interplay of
supply and demand but cover by the concept of
zonal valuation instituted by the government.
Th a n k
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