Ateneo Central Bar Operations: Civil Law Lecturer: Dean De Lose Angeles Subject: Land Titles The principles

on Land Titles and Deeds are based on the purpose of the Torrens System and that is to put some stability and allow the public to rely on title. 4 Benefits of Registration: 1. makes the title conclusive 2. makes the title imprescriptible 3. makes the title immune to collateral attacks 4. makes the title indefeasible (1 year after the issuance of the decree) Registration is not a mode of acquiring title. If a person does not have title, then mere registration of land under his name will not give him ownership over the land. If a person fraudulently registers the land, then, even if he gets a title, that title can be assailed. That title is NOT conclusive and indefeasible. Who may apply for registration? (Section 14, PD 1529) A. 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 ownership since June 12, 1945, or earlier. Requirements for application: 1. that the property must be alienable public land; 2. the applicants, by themselves, or through their predecessors-in-interest must have open, continuous, exclusive and notorious possession and occupation 3. such possession under a bona fide claim of ownership since June 12, 1945 or earlier. If the land is not alienable and disposable, even if it is registered, the registration is void. Mere possession is not sufficient because possession may be physical or constructive. There must also be occupation which means physical possession and introduction of improvements. Is mere possession of 30 years a ground for registration? A: No, because the possession must be from June 12, 1945 or earlier. There can be tacking of possession: applicants' possession and possession of their predecessors. When is public land alienable? A: It is alieanable once there is an official act of the executive declaring a land of the public domain open for private approriation Possession and Occupation must be: 1. Open - visible 2. Continuous uninterrupted 3. Exclusive possession to the exclusion of others 4. Notorious known to the public Can aperson in possession of a public land since 1977 up to the present, register in view of paragraph 1 Section 14 of the Land Registration Act? A: He can register BUT NOT under Section 14 [1] of the Land Registration Act. This is because one of the requirements is that possession must be one since June 12, 1945 or earlier. It can be acquired under paragraph 2, that is, by prescription since the prescriptive period is 30 years. Because of the Public Land Act, once a person occupy and possess a property for 30 years, openly, continuously, xclusively, notoriously, by operation of law the property becomes private and consequently, the person becomes the owner thereof. B. Those who have acquired ownership of private lands by prescription under the provision of existing laws. Here the land is already private. It can be acquired by acquisitive prescription, sale, succession, or donation. C. Those who have acquired ownership of private lands or abandoned river beds by right of accession or accretion under the existing laws. Accretion the gradual and imperceptible accumulation of land through the effects of the natural current of the river (which is adjacent to the banks of the rivers). A person constructed a dam or blockade and as a consequence, accumulation of deposit occurs in his property. Is hethe owner of the property? A: NO. This does not fall under the definition of accretion which requires such accumulation of deposit to be natural. Ownership of the accretion may be lost through extinctive prescription. It is, therefore, suggested that the accretion be registered in order for the ownership to be conclusive and imprescriptible. D. Those who have acquired ownership of land in any other manner provided for by law. Can corporations petiton to register land? A: It depends. If the land is public, the corporation

Ateneo Central Bar Operations: Civil Law cannot acquire it even if it is alienable. Under the Constitution, the corporation can only lease. (Note that if one is possessing a land through lease, one cannot possibly claim ownership). If the land is already private (because someone else already acquired it prior to the acquisition of the corporation), then the corporation may apply for registration QUALIFICATION: that this corporation is organized under Philippine laws and the capital of such corporation is at least 60% of which should be owned by Filipinos. Proof of payment of Land Taxes is not enough to acquire ownership. But payment of land taxes coupled with possession and occupation since June 12, 1945 (or earlier) is a ground for registration. This is because when one pays land taxes, then his concept of possession is one of ownership. Lakes, creeks, foreshore land, as a general rule are not registrable. But in one case decided by the Supreme Court, foreshore land which has been abandoned and is no longer needed for public use can be declared by the government as disposable. Remedies of Aggrieved Parties A. Prior to the Issuance of a Decree Motion for Reconsideration or Motion for New Trial File an appeal File a Petition for Review under Rule 38 of the Rules of Court on the ground of either (FAME) fraud, accident, mistake, excusable negligence. B. Once a decree has already been issued Petition for Review under Section 32 of PD 1529. Requisites: 1. owner is deprived of his dominical right 2. deprivation was through extrinsic fault, 3. he must file the petition within 1 year from the issuance of the decree, 4. provided that the property has not been transferred to an innocent purchaser for value. If one year have lapsed since the issuance of a decree: file an Action for Reconveyance. This happens when an owner is deprived of ownership to land due to actual fraud or breach of trust. 3 Possible Situations: 1. He may recover the land within 4 years from the discovery of fraud where there is a need to annul a fraudulent deed or document; or 2. within 10 years from the breach of an implied trust and the owner is not in possession counted from the time of the discovery of the breach; or 3. he may file it at any time if there is a breach of express trust or if there is a breach of implied trust but the owner is in possession of the property. This is because if he is in possession of the property, he may just file a Petition to Quiet Title which is imprescriptible. EXAMPLE OF BREACH OF IMPLIED TRUST: X and Y co-owns a property. X goes to the United States. While X is in the US, Y files an application for land registration claiming that he is the sole owner of the property. There is no opposition other than the government's. He submits his documents to prove his ownership without stating that you are a co-owner. As a result, a decision comes out stating that he is the owner of the land. The decision became final and a decree was issued. It is transcribed in a title and issued by the Register of Deeds. 7 years later, X comes back and discovers Y's title to the property. What is the remedy of X? A: X cannot file a petition for review since it is more than 1 year. X can file a petition for reconveyance of of the property provided that the property is still in his possession and has not been transferred to an innocent purchaser for value. EXAMPLE OF EXPRESS TRUST: In the previous example, if there is a deed or document stating that X and Y co-own the property and that X gave Y the authority to take care of the property. The Action for Reconveyance in this case is imprescriptible provided again that the property has not been transferred to an innocent purchaser for value. Express Trust involves a written contract, deed or document. What if there is a third party purchaser? A: Then a distinction should be made on whether or not the

Ateneo Central Bar Operations: Civil Law purchaser is in good faith. If he is in Suppose the owner asks for good faith, then that is the end of it replacement where the ODCT is not all. The only remedy is an action missing. Then the replacement is for damages. void. If the property is transferred to an If the Original is lost, then they ask for innocent purchaser for value, the remedy a reconstitution of the original under is an Action for Damages Act 26 (PLEASE VERIFY THIS) where 1. Against the one who brought about the publication and posting the fraud or breached the trust requirements must be followed. provided that it is filed within 4 years If the publication and posting from the discovery of the fraud or of requirements are not followed, the the breach of trust. reconstitution is void. 2. Against the assurance fund within 6 If, subsequent to the reconstitution, years. it turns out that the original was Requirements for Action for Damages: not lost, then the reconstituted 1. that the person had been copy is void. This is because the deprived unlawfully of the land. purpose of reconstitution is 2. There is no negligence on his designed to REPLACE the lost part original. 3. Reconveyance is not possible (because the land had been Innocent Purchaser for Value transferred to an innocent an innocent purchaser is one who buys purchaser of value). property without notice that some other 4. And the Action for Damages person has a right to or interest in such must be filed within 4 years property and pays a full and fair price for from the discovery of fraud or the property at the time of such purchase. breach of trust. Suppose X buys a property from seller S. Decree vs. Decision Later on, S sells the property for the A decision is one rendered by the judge second time to Y. What is the remedy of X? while the decree is one rendered by the A: X should immediately proceed to the Land Registration Authority. Register of Deeds and register the Deed of Certificates of Title Sale for X to be preferred over the second 2 CONFLICTING TITLES: When conflicting buyer Y . Apply the rules of Article 1544 of certificate of titles over the same land the Civil Code. Even if X has a knowledge exist, then the title earlier in date prevails of the sale to Y, X is still considered one unless there is a defect in title. who is in good faith. In a recent case, there were two titles where traced back to one OCT. If that Involuntary Transactions: Notice of Adverse is the case, who will prevail? Claim and Notice of Lis Pendens A: The one who holds the older TCT will Notice of Adverse Claim sworn statement prevail. that is filed with the Register of Deeds in DOUBLE SALES: order to protect the rights of the adverse Article 1544 of the Civil Code: If the claimant, and to put the public to notice same thing should have been sold to about this claim. This can be done if the different vendees [...] should it be claimant has a claim of real right on the immovable property, the ownership property itself. shall belong to the person acquiring it In PD 1529, it is stated there that a who in good faith first recorded it notice of adverse claim is effective in the Registry of Property. only for a 30-day period. HOWEVER, This applies only if the land and new decisions of the Supreme Court the deed of sale is registered under has stated that even after the 30-day the Torrens System. period has lapsed, if the notice of If the deed of sale is registered adverse claim has not yet been under Act 3344, then 1544 does cancelled by a petition, it is still not apply. effective. RECONSTITUTION As long as the notice of adverse claim Note that there are two copies of the is in effect, there are no innocent certificate of title: the original (which is purchasers for value (since it is with the register of deeds), and the deemed that they have notice of such owner's duplicate (ODCT). a claim). If the ODCT is lost, then the owner However, once there has been an should apply for a new ODCT under PD order to cancel the adverse claim, 1529. provided that

Ateneo Central Bar Operations: Civil Law there has been a petition that was filed If the basis of the reconstitution is the and a hearing was done, owner's duplicate, notice need not be then the notice of adverse claim given to the occupant or to the adjacent loses its effect. landowners.. The officers will be given Notice of Lis Pendens refers to pending notice in addition to the pubication and litigation involving the land. There must posting requirements also be real rights that is claimed over the If the basis of the reconstitution is other land. than the owner's duplicate, e.g. deed of The Notice of Lis Pendens can be sale, certified photocopy or other official removed on two grounds: document notices to adjacent owners and 1. If it was annotated merely to other persons interested, e.g. mortgagees, molest lesees should be given. 2. If it can be shown that even without the notice of lis pendens, the rights of the owner is Chain of Title Theory protected. Can a forged deed be a root for a valid When is registration effective? title? A: Registration for Involuntary transactions EXAMPLE 1 : Suppose X owns a piece of is effective once it is entered in the DAY land and he has a certificate of title. X BOOK of the Register of Deeds. In migrates to the US and leaves the title to voluntary transactions, registration Y . Y forges the deed of sale making appear becomes effective once the owner's that X sold the land to Y. Y presents the duplicte is submitted together with the forged deed and ODCT to the Register of payment of necessary fees and the Deeds. As a result, the Register of Deeds document in the proper form. Once it is cancelled X's title and issues a new title to registered in the DAY BOOK and is Y . Assuming that X comes back and finds annotated behind the title, the sale out the forgery and subsequent sale, Can (voluntary transaction) is deemed X recover the title from Y? registered and it would affect third parties. A: YES because the forged deed does not Amendment of title under Section 108 is give any rights to Y. permitted only when the registered interest EXAMPLE 2 (X negligent, Z not negligent): has terminated or there is a clerical error in Taking into consideration the facts in the certificate. For instance, a certificate, EXAMPLE 1, Y now sells the land to which contains a misspelled name can be a another person Z. Z now registers the land subject of a summary amendment to the presenting the TCT and the Deed of Sale certificate of title, and there is no serious to the Register of Deeds. Z successfully dispute on that matter, will not result in the obtains a title in his name. X comes back reopening of a decree and doesn't impare the and finds out. Can X recover from Z? rights of innocent purchaser. A: NO because in the meantime an Reconstitution may have for its subject the innocent purchaser for value was able to original title in the possesion of the register of get title to the property. As between X and deeds or the owner's duplicate, which used to Z, Z is not negligent since he is not aware be in the possesion of the owner. If therefore, of what happened. The one who is the original in the possesion of the register of negligent here is X for entrusting his title deeds is lost or destroyed for instance, to Y. through fire, or was stolen, the remedy may EXAMPLE 3 (X not negligent, Z negligent): be: X has title over a parcel of land. One night, Extrajudicial, however, it shall give a thief Y steals X's title. The thief goes to way to a better right the province and claims that he is X and Judicial under RA 26 sells X's title to Z. Y here, forges the signature of X. Z registers the property Notice requirements: with the forged deed and the genuine title 1. The order for a hearing for and successfully obtains a title in his reconstitution must be published in the name. Later on X, traces the title and goes Official Gazette after Z. Can X file an action for 2. Posting in the main door of the reconveyance against Z? provincial and municipal buildings A: YES. X is not negligent in this case. He 3. Notices, either personally or by lost title because of a fortuitous event. Z is registered mail, to the occupant, negligent since he failed to ascertain the adjacent landowners and to the identity of Y. Note that Z as the duty to government officers enumerated ascertain the identity of the seller and/or under RA 26 the owner. Sinc eZ is negligent, he cannot

Ateneo Central Bar Operations: Civil Law be considered as an innocent purchaser for value. EXAMPLE 4 (X not negligent, Z not negligent): Suppose Y steals the title from X, then Y forges the deed making it appear that X has sold the property to him. Y obtains title. Y later on sells the property to Z. In this case, Z is transacting with the right person because it appears in the title that the owner is already Y . Z is not aware that Y forged the deed of sale between him and X. Suppose that Z obtains a title by the Deed of Sale between Y and Z and the title obtained by Y from the Register of Deed. A: In this case, Z is not aware, neither was he negligent. X is also not negligent since it was stolen from him. In the Torrens System, Z would be preferred. Helpful Notes on determining Negligence in the previous examples If Y did not validly obtain title IN HIS NAME and Z relies on X's title and the impersonation of Y as X, then Z is negligent. This is because IT IS THE DUTY of Z as the buyer to ensure that the seller has the right to sell the property. OTHER DOCTRINES AND CASES Suppose there is an application for land registration, but before a adecision can come out, the applicant decides to sell the property. Must the new buyer, amend the petition, then start the application from scratch? A: That is not necessary. The only requirement is that a motion must be filed by the new buyer attacheing thereto, the instrument or the deed of sale and that prior notice must be given to all parties. The effect of the approval of this motion is that the new buyer is substituted for the original applicant. Suppose the applicant WITHDRAWS the application for land registration, will that terminate the proceedings? A: Not necessarily because if the oppositors, have filed strong oppositions or adverse claims, and they can prove that they are actually the owners, then the application and registration proceedings should continue so that the oppositors can prove their ownership over the land. Can the Land Registration Court have the authority or jurisdiction to order registration of land that has already been decreed in the name of another? A: NO because the Land Registration Court no longer has the jurisdiction and because that subsequent registration of an already titled land constitutes a collateral attack against the first title. Collateral Attack when there is an attack in another action to obtain a different relief, an attack of the judgment is mande as an incident in said action. Under the Land Registration Act (PD 1529) title becomes indefeasible after the expiration of 1 year from the entry of the decree of registration. When is the date when the decree of registration is made? A: The date of registration is when the decree of registration is received for transcription by the Register of Deeds. On the other hand, the original certificate of title is issued on the date when the decree of registration is transcribed by the Register of Deeds in the Registry books. A person who acquires a property through fraud becomes, by operation of law, a trustee of an implied trust for the benefit of the real owner who can seek reconveyance within 10 years from the time the certificate of title was issued. HOWEVER, there are cases which states that it should be counted from the date of discovery of the fraud. (NOTE THE DISPUTE IN RULINGS). A suit for quieting of title is a action QUASI IN REM. An ACTION QUASI IN REM is binding only on the parties. Fraud: Actual Fraud means intentional deception practices by means of misrepresentation, or concealment of a material fact. Constructive Fraud is construed as fraud because of its detrimental effect to the public interest even though the act is not done with the design to commit positive fraud. Extrinsic Fraud when the fraud prevents the party from having a day in court. this is necessary for a PETITION FOR REVIEW and ACTION OF RECONVEYANCE. Intrinsic Fraud fraudulent acts pertaining to an issue involved in the original action. The 4 year period to rescind a fraudulent contract is counted from the date of discovery of fraud not from the registration of conveyance. Suppose X is the adjacent owner of a property owned by Y. X was given notice of application for land registration by Y . When X went to court, he chanced upon Y who assured X that he is not claiming any part of the property of X. This prompted X to just go home. Contrary to Y's assurance, he claimed a portion of X's

Ateneo Central Bar Operations: Civil Law property. A decision became final, registering in the name of Y a portion of X's property. What is X's remedy? A: This involves actual and extrinsic fraud. His remedy is to file a petition for relief under Rule 38 of the Rules of Court provided no decree has been issuet by the Land Registration Authority. If there was a decree already issues, the remedy would be a petition for review under Section 32 of PD 1529. Laches: Laches - neglect to assert a right over a long period of time may prevent the recovery of titled property not in his name. This is an equitable defense. Reliance on the Title: A buyer may rely merely on the face of the title EXCEPT if there are suspicious circumstances Note that a buyer, at the very least, is required to do an ocular inspection of the land before buying. If a thief reconstitutes a title then sells it to buyer B, B is OBLIGED TO TAKE EXTRAORDINARY STEPS to ensure the valdity of the transaction if based on the reconstitution. Public Land Act If a party obtains a title through fraud by the pubic land act, by public policy, the law does not allow that party to benefit therefrom even after the lapse of 1 year. Ancestral Lands are not part of the lands of the publi domain. They are private and they belong to indigenous people. Reclaimed lands arenot available for sale to private parties. These lands are for public use and service. Friar lands are private or patrimonial property of the governement which can be alienated only upon compliance with the Friar Lands Act. Foreshore lands remains part of the public domain. It is outside the commerce of man. Foreshore lands is that part of the shore which is covered and uncovered by the sea. If the petitioner does not comply with the requirements of continuous occupation and cultivation of the public land, he is not qualified to apply for a free patent. Only the government through the Office of the Solicitor General can institute the proceedings. An action for the declaration of nullity of a Free Patent is not the same as reversion. Reversion the State becomes owner of land upon reversion In the Declaration of Nullity the State being the owner does not necessarily follow. As when the patent is issued over a private land. The State prohibits the sale or encrumbrance of homestead in 5 years after the grant of the patent.