RD, payment of the corresponding amount and the corresponding annotation done
Notes On Voluntary Dealings In Land Titles And Deeds by the RD is notice to third persons.
1. Sale, mortgage, lease, special power of attorney and trusts are examples of
voluntary dealings. They are entered voluntarily by the parties. Unlike an
involuntary dealings, the owner doesn’t want the transaction to be registered. The
owner wouldn’t want his property be subject of an attachment, adverse claim or
notice of lis pendens.
2. Registration is the necessary act for the transaction to bind third parties.
3. Actual knowledge is equivalent to registration. Registration is to give notice. If
the person knows about the transaction, it is deemed that the transaction has been
registered.
4. Registration should be done in the correct registry. If it is a titled property, there
is a separate book for titled property. If it is a dealing with unregistered property,
there is a different book for unregistered land. If you register in a different book,
there is no registration that is valid as against third persons.
5. The constructive notice mentioned in PD1959 is conclusive.
6. There is a distinction with regard voluntary and involuntary dealings with the
effectivity of registration. With involuntary dealings, once there is entry in the day
book and paid the needed fees and taxes, the RD issues the new title and cancels
the old one. Once there is compliance, the transaction is considered
registered. With voluntary dealings, entry in the day book is insufficient.
7. Mere entry in the day book/primary book is sufficient. It is often times that
owners don’t want to surrender their owner’s duplicate.
8. Carry-over of encumbrances. Suppose that you purchase property and there
was prior mortgages and notice of lis pendens. These encumbrances will be
carried over to the new certificate issued to the buyer.
9. Can you sell only a portion of your property? You can have it annotated. But if
the buyer would like a separate title, then he should submit a subdivision plan,
there should be a technical description. The old title would be cancelled and a new
title issued covering the portion sold.
10. Basically the procedure of registration for voluntary dealings can be
categorized into two—if it is an absolute sale or mortgage. If it is a sale, the deed
of sale and title should be submitted. There should also be proof of payment of real
estate taxes as well as registration fees and documentary stamp taxes. With that,
the Registry of Deeds shall make the corresponding entry that will cancel the old
certificate of title and issue a new one in favor of the buyer. If it
is merely an encumbrance however, the document shall only be presented to the
11. If it is judicial foreclosure, you register the order of the court confirming the
sale. If it is extrajudicial foreclosure, you register the order of the sheriff.
12. For implied trusts, read the case of Aznar Brothers. It has two kinds—resulting
trust and constructive trust. If it is an implied resulting trust, prescriptive period is
10 years from time of repudiation.
13. It is dependent on the facts and circumstances of the case on whether who
would have a better right, the owner or the mortgagee. But generally, when it is
through a forged deed, then the owner would have a better right over the property.
The forged deed is a nullity. On the other hand, when there is chain of
title, the innocent purchaser in value would have a better right.
14. Doctrine of mortgagee in good faith. If the property is mortgaged to an innocent
mortgagee, it is possible that he would have a better right over the property than
the real owner.
15. Even if the title is null and void, there is still validity of the mortgage. The
mortgagee has a right to rely on the title, provided there is nothing that would arise
suspicion on the part of the mortgagee.
DISTINCTION BETWEEN VOLUNTARY AND INVOLUNTARY REGISTRATION
INVOLUNTARY REGISTRATION VOLUNTARY REGISTRATION
An entry thereof—attachment, levy, An innocent purchaser for value of
notice of lis pendens, etc—in the registered land becomes the
day book is sufficient notice to all registered owner and in
persons even if the owner’s contemplation of law the holder of a
duplicate certificate of title isn’t certificate of title, the moment he
presented to the RD presents and files a duly notarized
and valid deed of sale and the same
is entered in the day book and at
the same time he surrenders or
presents the owner’s duplicate
certificate of title covering the land
sold and pays the registration fees,
because what needs to be done lies
not within his power to perform