Land Titles and Deeds Reviewer

2009
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Party-duh
Atty. Palabricas Lectures

HISTORY

Spanish Influence Legal significance to ownership of the
land
Regalian Doctrine all lands are owned by the
State

How lands were owned during the Spanish Era

1. Titulo Real (Royal Title) Land is given to
Spanish people to encourage them to settle in
the Philippines. Among those granted are:
a. Discoverers
b. Settlers

2. Special Grant Grant given by the governor
assigned in the Philippines. No special law is
required to empower governor to grant.

3. Adjustment Title given to a person who has
ownership of land but the land was not defined.
By virtue of such, he acquires ownership of
encroached land.

4. Title of Purchase applicable to lands of public
domain

5. Possessory Information Title title showing
possession of land


Regalian Doctrine Enshrined in the Constitution.

Section 2, Article 12

All lands of the public domain, waters, minerals,
coal petroleum, and other mineral oils, all forcer of
potential energy, fisheries, forests or timber, wildlife,
flora and fauna, and other natural resources are
owned by the State. With the exception of
agricultural lands, all other natural resources
shall not be alienated. The exploration,
development, and utilization of natural resources
shall be under the full control and supervision of the
state. The state may directly undertake such
activities, or it may enter into co-production, joint
venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at
least 60% of whose capital is owned by such
citizens. Such agreements may be for a period not
exceeding 25 years, renewable for not more than 25
years, and under such terms and conditions as
maybe provided by law




Exceptions to Regalian Doctrine:
1.) Religious and ecclesiastical properties are not
owned by the State. Such are held IN TRUST by
these religious organizations. (Bishop of Cebu
vs Mangaron)
2.) Native title - lands owned by indigenous people
since time Immemorial. RA 8173 or IPRA of
1997. (Cruz vs. DENR)


P.D. 1529 Property Registration Decree codifies all other laws
pertaining to title registration as it supersedes the same. However, all
other laws not inconsistent are still applicable.


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2009
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Torrens System

It is Judicial in character and not merely administrative in
nature.

It provides for a system for the registration of titles to lands
whereby the official certificate will always show the state of the title
and the person in whom it is vested.

Real purpose of Torrens system is to quiet title to land and to
stop forever any question as to its legality.

It does not vest title it merely confirms and records title
already existing and vested.

Origin

1. Spanish Mortgage Law of 1893 provided for a
systematic way of Registering titles

2. Act 926 of 1903 otherwise known as First Public Land
Law. Applicable to Public Lands. SUBSTANTIVE.
Among its functions are:

a. Providing for Homesteading
b. Issuance of Patents
c. Completion of imperfect title
d. System of Sales and Lease
e. Rids of Spanish concession

Act 2874 of 1918 Amendatory act of Act 926.

3. Torrens System of 1903 Otherwise known as Land
Registration Act. Copied verbatim the 1898 Torrens
System of Massachusetts by Robert Torrens, a South
Australian Registrar of Deeds. He was said to be
inspired by the Merchant Shipping Registration, and
applied the same to Land Registration

a. Description:
i. Government issues official certificate
showing ownership of title
ii. Subjects the same to liens or
encumbrances
iii. Indefeasible
iv. Incontrovertible after one year

b. Principles:
i. Best evidence of ownership
ii. Notice for the whole world that the
property belongs to the owner.
iii. Any claim over the land before issuance
of the Torrens title is deemed barred.
iv. Imprescriptible squatters will not
acquire ownership through prescription

Every person registering in good faith and for
value need not go beyond the title.
Person who fraudulently registers the land in his
name is holding the property as a trustee and
aggrieved party has option to recovery.


4. Act 141 of 1936 Amended 1903 Torrens System. More
substantial than procedural

5. Act 496 Land Registration act of 1903.
PROCEDURAL.

In a nutshell: Act 926 provided for the substantive
requirements seen in PD 1529, while Act 496
enumerated the procedures to be undertaken.


Land Titles and Deeds Reviewer
2009
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6. Cadastral Act of 1913 Derived from the opinions of the
President. Initiated by the President as instructed by
him.

7. P.D. 1529 The mother load. Otherwise known as
Property Registration Decree.

Sec. 2 Nature
In Rem or Against the whole world through
notice of publication, all interested parties may
oppose.
Courts of First Instance/ RTC has exclusive
jurisdiction
1. Filed in proper C.F.I. subject to
provisions of Judiciary Act of 1980 as
amended by RA 7691
There Could be a delegation of
jurisdiction when:
There is no controversy
The value of Land is
less than P100,000.
Value is determined by
affidavit of claimant or
declared value.
Pursuant to SC Administrative Circular 6-93-A,
of 1995:
o If the case is filed before the effectivity
of the circular, and there has been NO
HEARING yet, the case may be
delegated
o If the hearing has started, the case may
be delegated if the parties agree

The Torrens Title though indefeasible is not a
shield of fraud.
As between 2 innocent purchasers the one
who caused the wrong shall bear the loss.
o He who registers first is preferred as far
as 3
rd
persons are concerned
o As between two certificates of title
pertaining to the same land, the earlier
certificate prevails.
o A forged document may be the root of a
valid title when sold to an innocent
purchaser for value.
o Forgery must show that the name of the
supposed owner was changed to the
name of the forger.


Sec. 3 Spanish Mortgage Law is discontinued, all
lands without Torrens Title are deemed unregistered.

Sec.4-13 Agencies/Offices that control Torrens system.

DOJ LRA R.O.D.
o One Registry of Deeds for each
province
o One Registry of Deeds for each City


MAJOR STEPS IN REGISTERING LAND

I. APPLICATION
Sec 14-22 PD 1529
Section 14. Who may apply. The following persons may file
in the proper Court of First Instance an application for
registration of title to land, whether personally or through
their duly authorized representatives:

Land Titles and Deeds Reviewer
2009
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(1) 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.
(2) Those who have acquired ownership of private
lands by prescription under the provision of existing
laws.
(3) Those who have acquired ownership of private
lands or abandoned riverbeds by right of accession
or accretion under the existing laws.
(4) Those who have acquired ownership of land in
any other manner provided for by law.
Where the land is owned in common, all the co-owners shall
file the application jointly.
Where the land has been sold under pacto de retro, the
vendor a retro may file an application for the original
registration of the land, provided, however, that should the
period for redemption expire during the pendency of the
registration proceedings and ownership to the property
consolidated in the vendee a retro, the latter shall be
substituted for the applicant and may continue the
proceedings.
A trustee on behalf of his principal may apply for original
registration of any land held in trust by him, unless prohibited
by the instrument creating the trust.

Pertains to Original registration Involves land
of public domain that are alienable, its purpose
is to perfect the imperfect title held by the
possessor.
Section 14 is a colorable right
June 12 1945 does not pertain to the status of
Alienable and Disposable but rather to the
Bona Fide Ownership.
We have until December 31, 2020 to perfect
imperfect titles. So what are you waiting for?



Applicant Requisites:

1.) Filipino Citizen

Can a corporation be an applicant for
registration of land? Corporations cannot own
lands of Public Domain therefore cannot be an
applicant for original registration.
o BUT Filipino Corporations can own
private lands if land has already been
registered.
If owned previously by a private
individual, then sold to a Filipino
Corporation, the latter may
become an owner. This is
because the moment all the
requisites or application are
complied with, the owner may
be given ad GOVERNMENT
grant. (Republic vs Sineza)
In fact the corporation may
continue the application
proceedings when upon the
original registration of the owner

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of the land, such land becomes
a private land.
o BUT Foreign Corporations cannot own
public or private lands, whether
registered or not. (Director of Lands
vs. ACME Mineer and Plywood
Company).
o Foreigners cannot own lands in the
Philippines. (Rivenco vs Registry of
Deeds)


Who may acquire private lands?

1.) Filipino Citizen
2.) Alien through hereditary
succession
3.) Filipino Corporation
4.) Filipino who has lost citizenship
pertains to time when property
was acquired and not during
registration. (Republic vs.
Lipana)

2.) Must have by themselves or through their
predecessors in interest possessed and occupied
alienable and disposable land.

Unclassified Lands cannot be disposed. Only
Agricultural Lands
Only Agricultural Lands may be Alienable.
o Only the President and other
subordinate executive departments may
declare land alienable the Courts do
not have such power.

If land is not Alienable but occupied for a long
time, it still cannot be registered since the land
was not being occupied through a bona fide
claim.

Occupation of Predecessor-in-interest is
TACKED to the applicant, that it is not important
that the status of Alienable and Disposable
need not be since June 12, 1945. (Republic vs.
Naguit)


3.) Must be open, continuous, exclusive and
notorious under a bona fide ownership since June 12,
1945.

Not casual, nor merely for cultivation.
June 12, 1945, not pertaining to status.

4.) Application must be filed in the proper RTC

Applicable only to untitled lands
o Prescription:
Extraordinary 30 years
Ordinary - 10 years

Sec. 15 - Form

Signed
Writing
Under oath
State the description of the Land
Civil Status
Owners of Adjoining Lots

Sec. 16 Non Resident Applicant

Land Titles and Deeds Reviewer
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Apply through Representative

Sec. 17 Where to File

RTC

Sec. 18 Application for 2 or more parcels of land

Possible if located in the same place

Sec. 19 Amendments

If amendment is substantial i.e. expanding
boundaries, it is not valid unless published.

Sec. 22 Pending Registration
If application is on going, applicant may deal the
land but must attach the instrument and state
the relief/ prayer. As a result, court may approve
or issue a reconveyance.



II. PUBLICATION AND NOTICE
Sec. 23 PD 1529

What is being published is the order of the initial
trial, not the application for registration.
Nature of proceeding is in rem

1. Publication
a. Within 5 days upon receipt of application.
b. Court orders the publication
c. Once in Official Gazette and once n Newspaper
of General Circulation
d. Hearing shall not be held earlier than 45 days
and later than 90 days from the publication of
initial hearing.

Purpose of publication is two-fold
o To confer jurisdiction to the court
o Serve as a notice to all those concerned
of such registration

Publication is mandatory and jurisdictional
Purpose of publication in Newspaper of General
Circulation to reach audience not reached by
publication in O.G. because of its limited
circulation.
Amendments to application may be done with or
without publication.
o Substantial amendments such as
inclusion of additional land requires
republication.
o Exclusion of land is not substantial.

2. Mailing
a. Within 7 days after publication of said notice in
O.G.
b. Commissioner of Land Registration causes
mailing
c. What to Mail Notice of initial hearing
d. Who to mail:
i. Mailing to Persons named in the
application
ii. DPWH, Governor, Mayor if adjoining a
public road
iii. Minister of Agrarian Reform, Sol-Gen,
Director of Lands, DPWH, Director of
Forest Development, Director of Mines,
Director of Fisheries and Aquatic

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Resources If land borders on a body
of water

Mailing is binding despite failure of giving
personal notice since nature of proceeding is in
rem

3. Posting
a. Within at least 14 days before the date of initial
hearing.
b. Caused by the Sheriff
c. Posted in a conspicuous place on each parcel of
land included in the application and on the
bulletin board of municipal building.


III. OPPOSITION
Sec. 25 PD 1529

Any person who has interest in the property or
those mentioned in the notice may be an
oppositor.
A private individual may not represent the
government.
The Solicitor General may represent the
Government in such opposition, but may
delegate such power to prosecutors.

There are two types of default

o General no opposition was filed by
anyone
o Special an opposition was filed by an
aggrieved party, hence all others who
do not file their respective oppositions
are declared in Special default.

Default does not automatically relieve the
applicant the burden to prove ownership over
such property.
o He must rely on the strength of his
evidence and not on the weakness of
the oppositor.


IV. HEARING
Sec. 27 PD 1529

A. Involves the presentation of evidence, what to prove?
1. The court has jurisdiction
2. Applicant is the Owner
3. The identity of the Land
4. Land is alienable and disposable

1.) How to prove jurisdictional area?
i. Publication
1. Copy of NPGC
2. Affidavit of the Editor
3. Copy of OG
4. Affidavit of OG
ii. Mailing
1. Affidavit of LRA
iii. Posting
1. Certification of the
Sheriff

2.) How to prove ownership?
i. Imperfect title pursuant to Sec.
14

3.) How to prove Land Identity?
i. Survey and Description by
Bureau of Land Management


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4.) How to prove that Land is alienable
and disposable?
i. Declared by the President, or
through executive department.
1. Presidential
Proclamation
2. Executive orders
3. Circulars

V. JUDGMENT
Sec. 28 PD 1529

A. Two Types of Judgment
1.) Partial a portion is being contested i.e. the Land
Management approves subdivision plan. (Sec. 25
PD 1529)
2.) Conditional subject to a condition, as in required to
submit documents from time to time.

Clerk of Court delivers decision to LRA

VI. ISSUANCE OF DECREE OF REGISTRATION
Sec. 31 PD 1529

A. The Court after hearing, directs the LRA to issue the
decree of Registration
B. The LRA issues decree of registration bearing the
date, hour and minute of its entry. And SIGNED by the
commissioner.

VII. ISSUANCE OF CETRIFICATE OF TITLE

There are 2 certificates issued by the LRA
1. Original Judicial Registration forwarded to the
Registry of Deeds for the purpose of recording
liens.
2. Owners Certificate of Title


NON-REGISTRABLE LANDS

May not be registered regardless of number of
years of occupation
These are lands devoted to public service or use
regardless whether it is abandoned. (Laurel vs.
Garcia)
Only the president has the power to Declassify

Public Property May be disposed of by government, i.e.
land of public domain which may be subject to alienation
Government Property Cannot be subject to sale,
distribution.

Only public lands may be subject to cadastral
proceedings

Public Property includes
1. Foreshore Lands
2. Forest Lands
3. Watershed
4. Mangrove forest
5. Mangrove Swamps
6. Military and naval reserves

The determining factor is whether it is more valuable to
preserve the land or develop.

Reclamation only National Government may reclaim.
Reclaimed lands cannot be subject to private ownership
except through CONGRESSIONAL law, and even so, only
private citizens may avail.



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REMEDIES




1.) New Trial may be availed of before decision becomes final.
Decision becomes final after 15 days without appeal. Its purpose is
to set aside judgment.
The grounds for new trial are:
a. Fraud, accident, mistake or excusable
negligence.
b. Newly discovered evidence which would
alter the result of the trial
c. Awards of excessive damages

2.) Appeal must be initiated within 15 days after judgment

3.) Petition for Relief When decision is final, petition for relief may
be availed of within 60 days, not more than 6 months from
knowledge.

4.) Petition for Review May be filed by parties deprived of their
land by adjudication of title obtained by ACTUAL fraud.

Requisites:
1. Petitioner has a real and dominical right
2. He has been deprived thereof
3. Through fraud
4. Petition is within one year from issuance of the
decree.
5. The property has not yet passed to an innocent
purchaser for

A. Who?
Any person including the government deprived of
their land may file petition for review. He does not need to be
an oppositor from the get-go.

B. When?
He must file the petition not later than 1 year from
the date of entry of decree of registration. This decree
pertains to that mentioned in Sec. 31 PD 1529.
Fraud must be Actual or Extrinsic fraud.

Extrinsic Fraud- any fraudulent act of the successful
party in a litigation which is committed outside the trial of a
case against the defeated party whereby said defeated party
is prevented from presenting fully and fairly his side the
case.

Intrinsic Fraud acts of a party in a litigation during
the trial such as forged instruments, or perjured testimony
which did not affect the presentation of the case but did
prevent a fair and just determination of the case.

5.) Action for Reconveyance may be filed when a person is
holding the property in trust in order to reconvey the land. In order to
transfer title to true owner. It does not however change the decree
issued as it respects the incontrovertibility of he title. May be availed
of even after the lapse of one year.


6.) Damages May be instituted when after the lapse of one year,
the property is sold to an innocent purchaser for value. Aggrieved

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party may file an action for damages against the immediate party
causing the sale.

Innocent Purchaser for value one who has no notice that
some other person owns the land/property or any defect as to the
right of the person owning the property.

Reckoning time time when the transaction was
made. Hence if such defect comes into
knowledge, the buyer has the obligation to go
beyond the title, otherwise he will be in bad faith.
In case of Double sale the rules are:
o The one who registers first in good faith
is the rightful owner;
o The one who first possessed the
property in good faith is the rightful
owner;
o The one who presents the oldest title is
the rightful owner.

7.) Reversion An action filed by the government in the event when
part of the land awarded is actually non-registrable.

8.) Cancellation of Title An action filed when part of the property
awarded is property of other persons.

9.) Action for annulment of judgment or final order Grounded
on Extrinsic Fraud.

If remedy is used in previous actions, it shall not
be availed of anymore.

10.) Criminal Action in the event of perjury



CADASTRAL PROCEEDINGS

PURPOSE:
Another means to bring lands under operation of Torrens
System
Ordinary registration is slow for lack of initiative on part of
landowners, innovation was conceived to hasten and
accelerate registration
Government initiates that all lands within a stated region are
up for registration whether or not owners are interested to
settle their titles

NATURE OF PROCEEDINGS:
In rem
No defendant & no plaintiff
Compulsory

PROCEDURE:
1. CADASTRAL SURVEY
Conducted by the Director of Lands
2. FILING OF PETITION
After survey and plot been made, Director represented
by Sol Gen institutes cadastral proceeding by filing
petition in court against holders, claimants, possessors,
occupants
Parcel of lots given their cadastral numbers
3. PUBLICATION OF NOTICE OF HEARING
Court to order date of hearing
LRA to notify public by publishing notice 1x in OG and 1x
in newspaper of general circulation & copy mailed to
person whose address is known & other copies posted
in conspicuous place designated bylaw
4. FILING OF ANSWER
Any person claiming interest in any part of lands subject
to petition is required to file answer
5. HEARING OF CASE

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In any convenient place where land lies
Like an ordinary RTC trial
Conflicting claims are determined
Lots claimed are awarded to persons entitles if they
could prove title
If none could prove title land is declared public domain
6. DECISION
Claimants are notified of decision
7. ISSUANCE OF DECREE AND CERTIFICATE OF TITLE
Upon order of court, LRA to enter decree of registration
Decree made basis for issuance of OCT


CERTIFICATE OF TITLE

Sec. 44 Statutory Liens affecting title holder shall hold the title free
from all encumbrances except those noted on said certificate and
any of the following encumbrances which may be subsisting namely:
1. Those arising under the laws and Constitution which are
not require to appear of record in order to be valid
2. Unpaid real estate taxes levied and assessed within 2
years immediately proceeding the acquisition of any right
over the land by innocent purchaser for value without
prejudice to right of government to collect taxes payable
from that period
3. Public highway or private way established before the
registration
4. Any disposition of the property or limitation on the use
pursuant to Agrarian Reform

Sec. 46 General Incidents of Registered Land

Does not relieve registered land from any burdens.

Sec 47 Registered land not subject to prescriptions

Sec. 48 Direct vs. Collateral Attack

Direct filing an action to annul the judgment
Collateral Praying for a relief other than annulment,
questioning the validity is incidental

Sec. 49 Splitting of Title Administrative Proceeding, no need for
hearing
Purpose to provide for separate certificates of title to
several distinct parcels of land covered by only one
Certificate of Title
Steps:
1. Submit a written request to the Register of Deeds
2. Surrender Owners duplicate certificate
3. ROD will cancel Owners duplicate certificate and
Original Certificate
4. ROD will issue several certificates of title

Sec. 50 Subdivision and Consolidation Same as Splitting

Subdivision plan may become a judicial proceeding only
when 2 people do not agree to divide the land


SUBSEQUENT REGISTRATION

Voluntary Upon the parties choice
Involuntary Even against the will of the party

Is a contract of Sale executed abroad valid in the
Philippines? Yes, but it has to be authenticated first by the
Ambassador by putting a seal and signing the instrument
When is it deemed registered?
1. Submission of Deed of Sale
2. Sale has been entered
3. OCT surrendered

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4. Payment of filing fees
Actual issuance of Certificate is not the date of registration, it
retroacts to the date it is entered in the day books


Sec. 56 Primary Book Records of all instruments including writs
and processes pertaining to Registered Land.


VOLUNTARY DEALINGS

Sec. 57 CONVEYANCE

How to Register:

Secure and Submit
1. Deed of Conveyance
a. Need not be notarized, deed is a private contract
between the vendor and vendee
b. Notarization is a requirement only to bind third
persons
2. Owners Duplicate Certificate

After registration, the Register of Deeds will issue new certificates
1. Original Certificate of Title
2. Owners Duplicate Certificate of Title

Sec. 58 If only a portion of Land is to be conveyed

Seller must make a Survey Plan:
1. Stating the technical description of the Land to
be conveyed
2. Approved by the Land Management Bureau
3. Submit to the Register of Deeds

The owner has two Options
1. To have 2 separate Titles; or
2. To have a new title therefore, the title to the
portion of the land conveyed

Sec. 59 Conveyance is a Lien, it subsists and carried over to the new
title.


Sec. 60 MORTGAGE

Mortgage is not equivalent to Ownership, it is possession
less than ownership, hence there is no need of a new title. What is
required is an annotation.

Mortgage is a security, a contract to guarantee fulfillment of
a principal obligation.



Requisites:
1. It is to guarantee fulfillment of a principal obligation
2. Mortgagor is the Absolute Owner
Third persons may mortgage in favor
of a debtor if the former are not part of
the principal obligation
3. Mortgagor has free disposal of the property

Characteristics:

1. Constituted on a Real Property
2. Real Contract
3. Indivisible
4. Inseparable

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5. Limitation on Ownership
6. Accessory Contract


Indivisibility



If A mortgaged his part of the land in favor of a Mortgagee, is
Bs portion affected? Yes. Due to the characteristic of Indivisibility.


Inseparability

A Mortgage Lien is inseparable from property. Thus, if a
property is mortgaged and henceforth mortgaged again, the Lien on
the property still subsists.

Accessory

If there is no principal contract, such in the case of a contract
of Loan, there is no Accessory contract as in the case of the
mortgage conract.


The Mortgagor retains the possession because ownership is not
mortgaged, it does not transfer ownership or possession.

Equitable Mortgage
1. When the price of the sale is unusually inadequate;
2. When the vendor remains in possession as lessee or
otherwise;
3. When upon or after the expiration of the rights to
repurchase, another instrument extending the period of
the redemption or granting a new period is executed;
4. When the purchases retains for himself a part of the
purchase price;
5. When the vendor binds himself to pay the taxes on the
thing sold;
6. In any other case where it may be fairly inferred that the
real intention of the parties is that the transaction shall
secure the payment of a debt or the performance of any
other obligation.

SC: Equitable Mortgage is not a mortgage in form, but is
still a mortgage regardless of the name of the agreement.

Antichresis possession of land transferred to someone but
in favor of another person.


Chattel vs. Real Estate Mortgage

Differences

1. Chattel A mortgage on a Movable Property
2. Real Estate On an Immovable
3. Redemption No redemption on Chattel Mortgage,
Redemption possible in Real Estate
4. In Real Estate Mortgage, in terms of deficiency, balance
may be collected

FORECLOSURE

Sec. 63

Judicial - General Rule is that there is no RIGHT of Redemption
Extra Judicial RIGHT of Redemption is available


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There is no need to cancel the title
and mortgagee may even register
without the consent of the mortgagor.
May and alien be a mortgagee? Yes
and may even foreclose, but they
cannot own, hence they cannot be a
bidder in an auction sale.
How to Discharge Mortgage
1. Get a Release order or a
document pertaining to such
discharge from the mortgagee
2. The Register of Deeds will
cancel the annotation
Judicial - Governed by Sec. 68 of the
Rules of Court
Extra-judicial Governed by Sec. 63
of 1529


When the debtor fails to comply with the principal obligation,
the remedies are:
1. Foreclose the Mortgage
2. Seek for deficiency judgment
Creditor may only choose 1 remedy,
not both
Separate civil action waives potential
right afterwards

JUDICIAL FORECLOSURE

Steps:

1. File a complaint in the RTC where the land is situated
a. All who has interest on the land are included as
party
2. Filing of an Answer by those who have interest on the
land
3. Hearing
a. Determine the amount of the loan that is due
4. Judgment
5. Auction Sale
6. Certificate of Sale issued by the Sheriff
7. Hearing for confirmation of Certificate issued by the
Sheriff
8. Order confirming the sale
9. Redemption if available
Generally none in Judicial
Foreclosure, exceptions:
1. Banking Institutions
2. DBP
3. Rural Banks
4. Banking and Financial
Insitutions
If the following are mortgaged
individually, property cannot be
redeemed except through EQUITY
redemption.

Equity Redemption, made within 1 year from the
confirmation of the Sale


If the property is redeemed, the
ownership retroacts to the date of the
actual sale

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If the property is not redeemed upon
the expiration of the period,
mortgagee may execute the absolute
deed of sale
Upon Execution:
1. The deed shall be registered;
2. Certificate of Title shall be
cancelled;
3. New Certificate of Title is issued


EXTRA-JUDICIAL FORECOLOSURE
Allowed only if stipulated by the parties and expressly
provided by law.

Steps:

1. File for foreclosure of mortgage with RTC where the land
is situated through the Clerk of Court acting as the ex-
officio Sheriff.
2. Clerk of Court dockets and returns to examine the
application for Extra-Judicial foreclosure, after receiving
the Filing Fee
3. Publication of Notice of Auction Sale in 3 conspicuous
places
4. Raffle, the Sheriff the conducts the auction sale
5. Actual Auction sale
a. If the sale did not push through, there is a need
for republication of the notice
b. The Sheriff records the bidding
c. The Sheriff issues the certificate of Sale o the
highest Bidder

6. Mortgagee executes the deed of Sale.
The deed of sale is NOT absolute
because there is still a right of
redemption

There is a RIGHT of Redemption, within 1 year from the time
the certificate of Sale is registered. Reference must be made to the
stipulation inserted in a mortgage authorizing the sale in case of
default. Reason behind this is the Special Power of Attorney
authorizing the sale in case of default.

When is there default?
When the obligation becomes due, in spite of the demand
made by the creditor the debtor fails to comply.

If the only stipulation in the S.P.A. is to
mortgage, does it include the authority
to sell? Yes, authority is implied
Mortgagee executes the Deed of Sale
Sheriff conducts the auction Sale
Senior Mortgagee (1
st
) has a better
right than the Junior mortgagee (2
nd
)
When property is foreclosed, the
Junior Mortgagee has a right to
REDEEM, NOT to RETAIN

Section 64. Special Power of Attorney

SPA Authoriing a person to do a particular act, more
specifically in dealings with Real Estate.
The SPA in order to take effect must
be annotated to the title and
Registered, otherwise it cannot be
used.

INVOLUNTARY DEALINGS

Involves Involuntary Documents


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Cooperation of the owner is nor
necessary, and may even be done
against his will
1. Attachment
2. Lis Pendens
3. Adverse Claim

A. Preliminary attachment - Attachment initiated at the time
of filing the case. (Sec. 69)

Grounds:
1. Debtor is Insolvent
2. Debtor Absconds
Attachment must be registered to
have a preferential right over other
creditors
In the event that a favorable decision
is rendered, the debt is paid from the
property attached

Steps:
1. Secure order of attachment with
description of property from the
Register of Deeds
2. Notice that the property is
Attached
3. Leave order with the Occupant


B. Levy to go after the property for payment of debt

C. Garnishment attachment of money in possession of 3
rd

party, refers to money deposited in the bank.

Involuntary dealings are deemed
registered upon entry in the Day Book.
(DBP vs. ROD of Nueva Ecija)

Although they are not registered,
knowledge after the levy is equivalent
to registration

Although the knowledge came after
the Levy, purchaser may still be
considered innocent purchaser for
value since, at the time of the sale, he
was still in good faith.

Not all property are subject to Levy or
Attachment, it is in this light that
although the ROD s duty is
ministerial, ROD may refuse to
register if it cannot be levied.
Examples:

1. CA 459
2. Family Home exempt from
Execution

Preferential Right Determine the
date of Registration of Attachment as
it retroacts to the date of attachment
of lien. It must be referred back to the
date of registration of attachment.
Purpose of registration is to determine
who has a better right.

Adverse Claim

Purpose:
To apprise a third person of such
claim
Protect Interests of the adverse
complainant

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Characteristics:

Claim must be adverse to registered
land
Claim should arise subsequent to the
original registration
Claim is last resort, as it cannot be
registered in any other provision ex:
1. The Deed of Sale cannot be
registered as an adverse claim,
there is no other way to protect
your interest.
The lifespan of and adverse claim is
30 days, after which, it is not
automatically cancelled
Registered land, despite a notice of
adverse claim cannot be subject to
acquisitive prescription

Lis Pendens Pending Suit

If case is directly related to property, it
will affect the property
If the case is directly affecting the
land, it must be registered as Lis
Pendens.
Example:
1. Action for Declaring the Nullity
of Marriage
a. Lis Pendens is
necessary because the
property is directly
affected, the dissolution
of marriage will affect
the property rights of
the spouses
Action of Sum of Money no
requirement of Lis Pendens
Sum of money with Prayer for
Attachment
a. Based on the opinion of
Consulta, there should
be no Lis pendens since
attachment is merely
incidental.

PATENT

WHEN IS GOVERNMENT GRANT DEEMED ACQUIRED BY OPERATION OF
LAW:
1. Deed of conveyance issued by government patent/grant
2. Registered with Register of Deeds mandatory: operative act to
convey & transfer title
3. Actual physical possession, open & continuous
Land ceased to be part of public domain & now ownership
vests to the grantee
Any further grant by Government on same land is null & void
Upon registration, title is indefeasible

Terms:

Emporium power to govern subjects by the government
Dominium Power to use, dispose of natural resources, lands, by
the state
Public Domain Unappropriated, not owned
Public Land Disposable or Alienable
Ancestral Domain belongs to the indigenous

Delos Angeles vs. Santos - If public Land is granted to a private
person, the patent is null and void.


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Both Public Land Act and Torrens
system are not binding unless
registered.

The proceeding in Homestead patents
is administrative in nature. This,
notwithstanding, the requirement to
undergo the Torrens system still
persists.

PD 1529 applies when the subject
matter is aprivate land by virtue of an
imperfect title. (Sec. 14)

Title issued pursuant to registration of
patent is indefeasible when registered,
at it is deemed incorporated with
Torrens system; 1 year after issuance
of patent

HOMESTEAD PATENT

Aims:

Benevolent intention of government to
distribute disposable agricultural land to
destitute citizens for their home and
cultivation
As a matter of public policy, may be
repurchased even if after 5 years
provided not for profit

Right of repurchase not allowed if sold
within family & not for cultivating or living
but for speculation purpose
Procedure:

1. File a case with the Land Management Bureau
2. Upon approval, applicant will be authorized to take
possession
3. Within 6 months after approval, 1/5 of the land should be
cultivated.
4. Notice of intention of the applicant must be submitted,
and also the submission of Final proof of Possession of
1 year.
5. Survey shall be conducted
6. Patent shall be sent after payment of the fees

RESTRICTIONS:

Sec. 118 of Public Land Act
o Land cannot be alienated or conveyed within 5
years after the approval of the application for
patent. (Mandatory)
o There shall be no valid conveyance within 5 to
20 years from approval, if the conveyance is
made without the approval of the secretary of
DENR. (Directory)
EXCEPTIONS:

1. Those conveyed under the Rural Bank Laws
2. Those conveyed in favor of the Government



RIGHT OF REPURCHASE

The Land belongs to the Patentee, if the same dies, it
shall be transferred to his heirs.
Right of Repurchase may be availed of within 5 years
from the execution of the deed of conveyance
Mortgage:
o If it is extra-judicial foreclosure, Redeem within 1
year from approval of the sale

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o If it is judicial foreclosure, Redeem within 1 year
from confirmation of the sale.
o Hence under the Patent Law, the right of
redemption sums up to 6 years.

CONSULTA

A form of administrative Appeal
Pertains to removal of submitted documents
Happens when ROD is not sure what to do with the
issue
Remedy is to raise the issue to LRA for referral as to the
proper measure to be taken
Pursuant to Sec 17, if ROD denies the application, he
must put in writing. And within 5 days may appeal to
Consulta.


AGRARIAN REFORM LAW

P.D. 27 Agrarian Reform Law
Covers all lands planted with Rice and Corn

Emancipation Patent

o Gives retention area for land owners which shall
be 7 hectares.
o Transfers ownership to tenants, provided they
pay:
For the first 3 year-average of harvest,
modify by 2.5
Ensure that the landowner will not be
deprived of compensation

Sec. 104 Emancipation Patent

RA 6657 or the Comprehensive Agrarian Reform Law was enacted
amending P.D. 27

Covers lands regardless of kinds of crops
Redemption of Land owner
o Retention shall be 5 hectares
o Plus 3 hectares for each child, provided:
The child is more than 15 years old
The child must have actually tilled or
managed the land
The option to choose or retain or determine which land
to occupy belongs to the land owner, which shall be
exercised within 6 months from the grant otherwise,
BARO determines
If the landowner shall take the land and the land is
tenanted, the options of the tenant are:
1. The right to Remain and establish a leasehold
Agreement, as a result losing his right as
beneficiary.
2. Disregard the action hence becoming a
beneficiary

If land owner had already acquired 7 hectares from PD
27, will it diminish the right to get the 5 hectares from RA
6657? No, the law expressly so provides. Hence the law
recognizes that the land holdings of a homesteader may
amount to 12 hectares.
Once a person has complied with the requirements, he
will be issued a CLOA or a Certificate of Land
Ownership award.
o CLOA is equivalent to Emancipation Patent,
which must be registered in the ROD. After
which, a TCT will be issued.
o Such process puts the land under the Torrens
system because of the issuance of the certificate
of title. Consequently, holder may enjoy the
privileges granted by the Torrens title.

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CERTIFICATE OF TITLE

Sec. 109-110

Certificate of Title
An evidence of ownership

Sec. 109 Owners Certificate of Title
Importance of keeping the certificate of title
o A forger may validly convey the property under
the following circumstances:
The transfer was made in the name of
the forger
It was conveyed to an Innocent
Purchaser for value

Lost title, procedure for recovery:
1. Inform ROD of the loss/theft
2. File a petition for replacement of certificate,
similar to the procedure in applying Original
Certificate of Title, with the allegation of the
loss/theft.
3. Verified under oath
4. Notice and Hearing to ROD and other interested
parties
5. The court may direct issuance of a new
duplicate certificate of title, wherein no
publication is required.