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May a corporation own lands?

It depends.

1. Corporation sole can acquire by purchase a parcel of private agricultural land without violating the
constitutional prohibition since it has no nationality.

2. Corporation

a. Private Lands

i. At least 60% Filipino (Sec. 7, Art. XII, 1987 Constitution)

ii. Restricted as to extent reasonably necessary to enable it to carry out purpose for which it was
created

iii. If engaged in agriculture, it is restricted to 1,024 hectares.

b. Patrimonial property of the State (Sec. 3, Art. XII, 1987 Constitution)

i. Lease (cannot own land of the public domain) for 25 years renewable for another 25 years

ii. Limited to 1,000 hectares iii. Applies to both Filipinos and foreign corporations.

May a corporation apply for registration of a parcel of land

Yes, through lease not exceeding 1,000 hectares. Such lease shall not exceed twenty five (25) years and
renewable for not more than twenty five (25) years. (Sec. 3, Art. XII, 1987 Constitution)

Note: Determinative of this issue is the character of the parcels of land – whether they were still public
or already private – when the registration proceedings were commenced. If they are already private
lands, the constitutional prohibition against acquisitions by a private corporation would not apply.

What are the requisites for an action to quiet title?

1. Plaintiff must have a Legal or equitable title to, or interest in the real property which is the subject
matter of the action;

2. There must be Cloud in such title;

3. Such cloud must be Due to some

a. Instrument;

b. Record;
c. Claim;

d. Encumbrance; o

e. proceeding which is apparently valid but is in truth invalid, ineffective, voidable or unenforceable,
and is prejudicial to the plaintiff’s title; and

4. Plaintiff must

a. Return to the defendant all benefits he may have received from the latter; or

b. reimburse him for expenses that may have redounded to his benefit.

What are the requisites for existence of a cloud?

1. There is an Apparently valid or effective instrument.

2. But such instrument is in Truth:

a. Invalid;

b. ineffective;

c. voidable;

d. unenforceable;

e. has been extinguished or terminated;

f. has been barred by extinctive prescription.

3. Such instrument may be Prejudicial to the title.

What are the prescriptive periods for bringing an action to quiet title?

1. Plaintiff in possession – imprescriptible

2. Plaintiff not in possession – 10 years (ordinary) or 30 years (extra-ordinary)

Note: Laches is defined as the failure or neglect, for unreasonable and unexplained length of time, to do
that which by exercising due diligence, could or should have been done earlier. The negligence or
omission to assert a right within a reasonable time, warranting a presumption that the party entitled to
assert it either has abandoned it or declined to assert it. (Tijam v Sibonghanoy, L-21450, Apr. 15, 1968)
Is an action to quiet title imprescriptible?

Yes. Even though the Civil Code does not include an action to quiet title as one of those actions which
are imprescriptible, the SC in this case held that such action is imprescriptible. The basis of the court is
Art. 480. The imprescriptibility of an action to quiet title is a general principle from American
jurisprudence. (Bucton v. Gabar, G.R. No. L-36359, Jan.31, 1974)

DUTY OF SUBDIVISION OWNER TO SECURE RIGHT OF WAY

> Applies to an owner or developer of a subdivision without access to a public highway

> A municipal ordinance declaring a subdivision road open to public used by public authorities when
deemed necessary simply allows person other than the residents of the subdivision to use the road
when they are inside the subdivision but doesn’t give outsiders a right to open subdivision walls so they
can enter the subdivision from any point

> The closure of a dead end is part of one’s proprietary rights

DUTY OF OWNER TO DELIVER TITLE OF THE CONDOMINIUM UNIT

> Upon full payment of the purchase price, the seller is duty-bound to deliver the title of the unit to the
buyer

> Even with a valid mortgage over the lot, the seller is still bound to redeem said mortgage without any
cost to the buyer apart from the balance of the purchase price and registration fees

> Section 25 imposes an obligation on the part of the owner or developer in the event the mortgage over
the lot or unit is outstanding at the time of the issuance of the title to the buyer, to redeem the
mortgage and corresponding portion thereof within 6 months from such issuance

> The 6-month period will run from the full payment of the agreed price

Time of Completion of Subdivision or Condominium Plans

Time of Completion. Every owner or developer shall construct and provide the facilities, improvements,
infrastructures and other forms of development, including water supply and lighting facilities, which are
offered and indicated in the approved subdivision or condominium plans, brochures, prospectus, printed
matters, letters or in any form of advertisement, within one year from the date of the issuance of the
license for the subdivision or condominium project or such other period of time as may be fixed by the
Authority.
CONSEQUENCE OF DELAY

> Petitioner may be held liable for damages

EXTENSION OF TIME FOR COMPLETION

> A request for extension of time to complete development of condominium or subdivision project may
be granted only in cases where non-completion of the project is caused by fortuitous events, legal orders
or force majeure and with the written notice to lot or unit buyers without prejudice to the exercise of
their rights pursuant to Section 23 of this Decree

> The request for extension of time for completion shall be accompanied by a revised and financing
scheme thereof

LIABILITY OF OWNER FOR BREACH OF WARRANTIES- CONDOMINIUM UNIT BROCHURES

> Where the brochure that was disseminated indicated features that would be provided each
condominium unit, this forms part of the warranties of the petitioner as subdivision owner

> Hence, when the respondent relied on the brochure in its decision to purchase a unit, and the
petitioner failed to deliver certain items stated therein, then there was a clear violation of its warranties
and representations

MORTGAGE OF CONDOMINIUM WITHOUT KNOWLEDGE OF BUYER IS AN UNSOUND BUSINESS PRACTICE

> The buyer has a cause of action for annulment of the mortgage, the mortgage foreclosure sale, and the
condominium certificate of title that was issued to highest bidder

REGISTRATION OF SALE OF SUBDIVISION LOTS AND CONDOMINIUM UNITS

> Sales or conveyances of subdivision lots and condominium units shall be registered from the execution
thereof by the seller with the Register of Deeds of the province or city where the property is situated

> Except as otherwise provided for by law, the Housing and Land Use Regulatory Board may in
appropriate cases cause the RD to cancel the registration, entries or annotations on titles made in this
regard
PERIOD TO APPEAL IS 15 DAYS

> The period within which to appeal the decision of the Board of Commissioners of the Housing and
Land Use Regulatory Board to the Office of the President is 15 days from the receipt of the assailed
decision, pursuant to Section 15 of Presidential Decree 957

> The 30-day period mentioned in the Rules of Procedure of the HLURB is not applicable because special
laws providing for a remedy of appeal to the Office of the President must prevail over the Housing and
Land Use Regulatory Board Rules of Procedure

As correctly pointed out by the Office of the President, the period to appeal the decision of the HLURB
Board of Commissioners to the Office of the President has long been settled in the case of SGMC Realty
Corporation v. Office of the President,[6] as reiterated in Maxima Realty Management and Development
Corporation v. Parkway Real Estate Development Corporation,[7] where we ruled that the period of
appeal is 15 days from receipt thereof pursuant to Section 15[8] of PD No. 957 and Section 2[9] of PD
No. 1344 which are special laws that provide an exception to Section 1 of Administrative Order No. 18.
Thus:

x x x Administrative Order No. 18, series of 1987, issued by public respondent [Office of the President]
reads:

“Section 1. Unless otherwise governed by special laws, an appeal to the Office of the President shall
be taken within thirty (30) days from receipt by the aggrieved party of the decision/resolution/order
complained of or appealed from.”

As pointed out by the public respondent, the aforecited administrative order allows aggrieved party to
file its appeal with the Office of the President within thirty (30) days from receipt of the decision
complained of. Nonetheless, such thirty-day period is subject to the qualification that there are no other
statutory periods of appeal applicable. If there are special laws governing particular cases which provide
for a shorter or longer reglementary period, the same shall prevail over the thirty-day period provided
for in the administrative order. This is in line with the rule in statutory construction that an administrative
rule or regulation, in order to be valid, must not contradict but conform to the provisions of the enabling
law.

We note that indeed there are special laws that mandate a shorter period of fifteen (15) days within
which to appeal a case to public respondent. First, Section 15 of Presidential Decree No. 957 provides
that the decisions of the National Housing Authority (NHA) shall become final and executory after the
lapse of fifteen (15) days from the date of receipt of the decision. Second, Section 2 of Presidential
Decree No. 1344 states that decisions of the National Housing Authority shall become final and
executory after the lapse of fifteen (15) days from the date of its receipt. The latter decree provides that
the decisions of NHA is appealable only to the Office of the President. Further, we note that the
regulatory functions of NHA relating to housing and land development has been transferred to Human
Settlements Regulatory Commission, now known as HLURB. Thus, said presidential issuances providing
for a reglementary period of appeal of fifteen days apply in this case.[10]
1 G.R. No. 170695, 2006 April 7

TRANSFER OF OWNERSHIP OR CHANGE OF NAME OF A SUBDIVISION OR CONDOMINIUM

> A request for transfer of ownership and/or change of name may be granted only if there is a deed of
absolute sale over the subdivision or condominium project sought to be transferred and/or the name
thereof changed with an undertaking on the part of the transferee to assume full responsibility for the
completion of the development thereof

> Such request shall be published at the applicant’s expense in a newspaper of general circulation within
the city or municipality where the project at least one a week for two consecutive weeks

JURISDICTION OF THE NATIONAL HOUSING AUTHORITY

> The scope of the regulatory authority of the National Housing Authority is indicated in the second and
third paragraph of the preamble

o WHEREAS, subdivision owners, developers, operators, and/or sellers have reneged on their
representations and obligations to provide and maintain properly subdivision roads, drainage, sewerage,
water systems, lighting systems, and other similar basic requirements, thus endangering the health and
safety of home and lot buyers;

o WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent manipulations
perpetrated by unscrupulous subdivision and condominium sellers and operators, such as failure to
deliver titles to the buyers or titles free from liens and encumbrances, and to pay real estate taxes, and
fraudulent sales of the same subdivision lots to different innocent purchasers for value;

> Presidential Decree 1344 was passed providing—

o The National Housing Authority shall have exclusive jurisdiction to hear and decide cases of the
following nature:

> Unsound real estate businesses

> Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer
against the project owner, developer, broker or salesman, and

> Cases involving specific performance of contractual and statutory obligations filed by buyers of
subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman.

o The decision of the National Housing Authority shall become final and executory 15 days from the date
of its receipt. It is appealable only to the President of the Philippines and in the event the appeal is filed
and the decision isn’t reversed and/or amended within 30 days, the decision is deemed affirmed. Proof
of the appeal of the decision must be furnished the National Housing Authority.
> On the issue of affirmance-by-inaction failure on the part of the President to act upon an appeal
doesn’t necessarily mean that the appealed decision automatically becomes final and executory. Access
to the courts of law may still be made as mentioned above. Therefore, such decision is far from being
final and executory.

FUNCTIONS OF THE National Housing Authority NOW TRANSFERRED TO THE Housing and Land Use
Regulatory Board

> The regulatory functions of the NHA are now transferred to the HLURB such as jurisdiction over
unsound real estate businesses and claims involving refund and any other claims filed by subdivision lot
or condominium unit buyer against the project owner, developer, broker or salesman

> The functions of the Human Settlements Regulatory Commission— sole regulatory body for housing
and land development—are transferred also to the HLURB

SPECIFIC FUNCTIONS OF THE Housing and Land Use Regulatory Board

1. Unsound real estate businesses

2. Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer
against the project owner, developer, broker or salesman, and

3. Cases involving specific performance of contractual and statutory obligations filed by buyers of
subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman.

WRIT OF EXECUTION

> As soon as the decision of the Housing and Land Use Regulatory Board becomes final, it shall, on
motion of the interested party, issue a writ of execution enforceable in accordance with the provisions of
the Rules of Court

> Upon the failure of the Housing and Land Use Regulatory Board to act on the motion, a petition for
mandamus may be filed to compel it to perform its purely ministerial duty by enforcing its final and
executory decision

COURT HAS JURISDICTION WHEN ISSUE INVOLVES OWNERSHIP OF PROPERTY


ORDINARY COURTS DON’T HAVE JURISDICTION OVER COLLECTION OF UNPAID INSTALLMENTS

SUMMARY OF CASES OR INCIDENTS WHERE Housing and Land Use Regulatory Board HAS JURISDICTION
(FAJARDO V. BAUTISTA)

1. For a determination of the rights of the parties under a contract to sell a subdivision lot

2. For the delivery of title against the subdivision owner

3. For the refund of reservation fees for the purchase of subdivision lot

4. For specific performance filed by the lot buyer against the seller of a subdivision lot

5. For the annulment of the mortgage constituted by the project owner without the buyer’s consent, the
mortgage foreclosure sale, and the condominium certificate of title issued to the highest bidder at the
said foreclosure sale

6. For the collection of the balance of the unpaid purchase price of a subdivision lot filed by the
developer of a subdivision against the lot buyer

7. For incidental claims for damages

WHEN A PERSON AUTOMATICALLY CEASES AS A STOCKHOLDER IN A CONDOMINIUM CORPORATION

> Section 10—membership in a condominium corporation regardless of whether it is stock or non-stock


corporation, shall not be transferable separately from the condominium unit of which it is an
appurtenance. When a member or a stockholder ceases to own a unit in the project in which the
condominium corporation owns or holds the common area, he shall automatically cease to be a member
or stockholder of the condominium corporation.

THE OWNER OF A UNIT IS CONSIDERED A SHAREHOLDER IN THE CONDOMINIUM CORPORATION

> Any transfer or conveyance of a unit or an apartment, office or store or other space therein, shall
include the transfer or conveyance of the undivided interest in the common areas or in a proper case,
the membership or share holdings in the condominium corporation

> Not every purchaser of a condominium unit is a shareholder of the condominium corporation. The
Condominium Act leaves it to the master deed the determination of when the shareholding will be
transferred to the purchaser of a unit

> The provisions of this Act shall apply to property divided or to be divided into condominium only if
there shall be recorded in the Register of Deeds of the province or city in which the property lies, and
duly annotated in the corresponding certificate of title of the land, xxx an enabling or master deed which
shall contain, among others, the following: xxx A statement of the exact nature of the interest acquired
or to be acquired by the purchased in the separate units and the common areas of the condominium
projects. Where title to or to appurtenant interests in the common areas is to be held by a condominium
corporation, a statement to this effect shall be included

> Inasmuch as ownership is conveyed only upon full payment of the purchase price, it necessarily follows
that a purchaser of a unit who hasn’t paid the full purchase price is not the owner of the unit and
consequently is not a shareholder of the Condominium Corporation

Petitions Involving Certificate Of Title

1. There are 4 petitions—petition for surrender of title, petition for correction, amendments, or
alterations in the certificate of title, petition for the issuance of new owner’s duplicate of title, petition
for reconstitution

2. Petition for the surrender of the owner’s duplicate of title—the law speaks of two instances. The first
one involves involuntary transactions and the other one, voluntary transactions. In both instances the
procedure is to file a petition in the Regional Trial Court for the owner to surrender the owner’s duplicate
of title.

3. If the owner’s duplicate of title is lost, the law requires that notice under oath be given to the RD.
There should be a verified affidavit that will serve as notice to the RD that the particular owner’s
duplicate is lost. This will prevent any transaction that may arise from the loss of the owner’s duplicate.
This particular petition would prosper and the corresponding duplicate issued will be valid if the owner’s
duplicate is really lost. When the owner’s duplicate is still existing upon filing of petition, the court
doesn’t acquire jurisdiction and the proceedings are null and void. The title is null and void and thus, can
be attacked collaterally.

4. Petition for reconstitution is filed when the certificate of title has been lost or destroyed. This pertains
to original and transfer certificates of title as well as encumbrances and liens. Purpose is to bring back to
its original form and state. No addition nor reductions. If it is found out that the certificate is not lost or
destroyed, court doesn’t attack jurisdiction and proceedings are null and void.

5. There are two kinds of restitution—judicial and administrative. Judicial is when you file a petition in
court. Administrative is when you file the petition with the RD. It is easier with the Register of Deeds as
you have to file it with the reconstituting officer of the Register of Deeds only.

6. The court in entertaining petitions for reconstitution should be careful and cautious. Section 12 and 13
are mandatory requirements. Section 12 refers to the contents requirement as 13 refers to the
publication requirements.
7. The reconstitution proceedings are proceedings in rem.

8. Section 2 and 3 of RA 26 will tell the different documents or evidence that you can submit for a
petition for reconstitution can prosper. Sources found in the law are in a hierarchy of preference. First
and foremost in this list, may it be for the original or transfer certificates of title is the owner’s duplicate
of title.

9. The phrase “Any other document” will pertain to documents similar to those previously enumerated.
An example is a case pertaining to an action for the recovery of possession. The court decision contained
the technical description of the land and whatnot as would pertain to any other document that warrants
reconstitution.

10. Administrative reconstitution is warranted in cases where the number of certificates lost is not less
than 500 and the cause of the loss or destruction is by fire, flood or any other force majeure. If you pass
these requirements, then administrative reconstitution is allowed. If you are not satisfied, you can go to
the LRA within 15 days from the receipt of the decision. If not the LRA, file a petition for review with the
proper court or specifically, the RTC. This can be done within 60 days from knowledge of decision but not
later than 6 months from promulgation of decision.

11. The reconstituted title should be in the form and condition as the original lost title.

12. All these petitions and motions should be filed with the same registration case. This is specifically
provided for in Section 108. You will use the same case number wherein the title was issued.

DUTY OF REGISTER OF DEEDS TO REGISTER DOCUMENT PRESENTED FOR REGISTRATION IS MINISTERIAL

MATTERS SHOULD BE LEFT TO THE COURTS FOR DETERMINATION

> The powers of the RD are generally regarded as ministerial only and said officer has no power to pass
upon the legality of an order issued by a court of justice

> Whether the document presented for registration is invalid, frivolous or intended to harass, is not the
duty of the RD to decide but a court of competent jurisdiction

> The question of whether or not a conveyance was made to defraud creditors of the transferor should
better be left for determination of the proper court

REFERENCE OF DOUBTFUL QUESTIONS TO THE LRA VIA CONSULTA


APPEAL TO THE COURT OF APPEALS IS THE PROPER REMEDY AVAILABLE TO A PARTY WHO DOESN’T
AGREE WITH THE ACTION TAKEN BY THE LRA ADMINISTRATOR

> This is specially governed by Rule 43 of the Rules of Court, which provides for decisions, orders,
resolutions of any quasi-judicial agency, ilke the LRA, in the exercise of its quasi-judicial functions

> The appeal shall be taken within 15 days from notice of the decision, order of resolution

> If no appeal is filed within said period, the decision, order or resolution shall become final and may be
executed as provided by existing law.

REGISTRATION OF INSTRUMENTS DEALING WITH UNREGISTERED LAND

> All instruments affecting lands originally registered under the Spanish Mortgage Law may be recorded
under Section 113 until the land shall have been brought under the operation of the Torrens system

RECORDING OF MINISTERIAL OFFICERS

> Opening paragraph in substance declares that no instrument or deed affecting rights to real property
not registered under the Torrens system shall be valid except as between the persons thereto, until such
instrument or deed shall have been registered in the manner prescribed therein

> This provision cannot be interpreted to include conveyances made by ministerial officers, such as
sheriff’s deeds

> It contemplates only instruments as may be created through agreement between parties

RECORDING SHALL BE WITHOUT PREJUDICE TO A THIRD PERSON WITH BETTER RIGHT RECORDING OF
RD MINISTERIAL

> Register of Deeds doesn’t exercise a judicial or quasi-judicial power in the registration of sheriff’s deeds
or certificates of sale

> If the Register of Deeds refuses to register the instrument, he shall advise the party in interest in
writing of the grounds for his refusal, and the latter may elevate the matter to the Administrator en
consulta
HOW RECORDING IS EFFECTED

> The Register of Deeds shall keep a primary entry book and a registration book

> The primary entry book shall contain an entry number, names of parties, nature of the document, and
the date, hour and minute it was presented

> The recording shall be effected by annotating on the registration book after the same shall have been
entered in the primary entry book

> After recording, the Register of Deeds shall endorse on the original of the instrument the file number
and the date as well as the hour and minute when the instrument is received, returning to the registrant
the duplicate of the instrument with a certification that he has recorded the same

COMPLIANCE WITH JURISDICTIONAL REQUIREMENTS IS MANDATORY

> The court doesn’t acquire jurisdiction to hear the petition

> It is not enough that there is publication in the Official Gazette only for there is a posting requirement
also. Failure to comply will nullify the proceedings.

RECONSTITUTION IMPROPER WHERE IS NO TITLE TO BE RECONSTITUTED, OR WHERE THE ORIGINAL


CERTIFICATE OF TITLE IN FACT EXISTS

> Sections 18 and 19 of Republic Act 26

ACTION OF THE COURT; RECONSTITUTION; WHEN MANDATORY

> If the court, after hearing, finds that the documents presented, as supported by parole evidence or
otherwise, are sufficient, and proper to warrant the reconstitution of the lost or destroyed certificate of
title, xxx an order for reconstitution shall be issued

> The clerk of court shall forward the order to the RD and all documents which, pursuant to said order,
are to be used as basis of the reconstitution
> If the court finds that there is no sufficient evidence or basis to justify the reconstitution, the petition
will be dismissed without prejudice to the right of the parties entitled thereto to file an application for
confirmation of title

> Sections 15-17 of RA26

THE REGISTER OF DEEDS IS NOT A PROPER PARTY TO FILE THE PETITION

WRIT OF POSSESSION NOT PROPER IN A RECONSTITUTION PROCEEDING

COURTS ARE CAUTIONED IN GRANTING PETITIONS FOR RECONSTITUTION

ADMINISTRATIVE RECONSTITUTION

> Can only be availed of in case of substantial loss or destruction of land titles due to flood, fire or other
force majeure as determined by the Administrator

> Provided that the titles lost or damages should at least be 10% of the total number in the possession of
the office of the RD

> That in no case that the number of certificates of titles lost or damaged be less than 500

> Notice of all hearings of the petition for judicial reconstitution shall be furnished the Register of Deeds
of the place where the land is situated and to the Administrator of the Land Registration Authority

> No judgment ordering the reconstitution shall be final until the lapse of 15 days from receipt by the RD
and by the Administrator of the LRA of the notice of order or judgment without any appeal having been
filed by any such officials

DUTY OF LAND REGISTRATION AUTHORITY TO PREPARE INVENTORY SOURCES OF RECONSTITUTION;


CONTENTS OF PETITION

> Same sources as those enumerated in Republic Act 26

> Accompanied by an affidavit stating, among other things

o That no deed or other instrument affecting the property had been presented for registration, or if
there be any, the names thereof, the date of its presentation, as well as the names of the parties,
whether the registration of said deed or instrument is still pending accomplishment

o That the owner’s duplicate is not the subject of litigation or investigation, administrative or judicial,
regarding the genuineness or due execution and issuance
o That the owner’s duplicate certificate or co-owner’s duplicate is in due form without any apparent
intentional alterations or erasures

o That the certificate was in full force and effect at the time it was lost or destroyed

o That the certificate was covered by a tax declaration regularly issued by the Assessor’s office

o That real estate taxes have been fully paid up to at least 2 years prior to the filing of the petition for
reconstitution

ACTION ON THE PETITION

> All reconstituted titles shall be reproduced by the LRA in at least 3 image copies or in whatever means
by which the original can be reproduced, one copy to be kept by the LRA, the second copy to be kept by
the National Library Archives Division, and the third copy to be secured in a government fire-proof vault,
preferably in the Security Printing Plant of the Central Bank

> Such image copy of the original copy of the reconstituted title shall be considered after due
authentication by the LRA, through the RD in the province or city where the land is located

> After reconstitution, said owner’s duplicate or co-owner’s duplicate exhibited as basis for the
reconstitution shall be surrendered to the RD and a new certificate of title issued in lieu thereof, the
original of which shall be kept by the RD and the owner’s duplicate delivered to the registered owner.

FUNCTION OF THE Land Registration Authority TO REVIEW AND ADJUDICATE

> LRA has jurisdiction to act on petitions for administrative reconstitution

> It has the power to review, revise, reverse, modify or affirm on appeal the decision of the
reconstituting officer

> Function is adjudicatory in nature—it can properly deliberate on the validity of the titles subject of the
reconstitution

REMEDY OF AGGRIEVED PARTY

> A reconstituted title obtained by means of fraud, deceit or other machination is void ab initio as
against the party obtaining the same and all persons having knowledge thereof
> There are two remedies available—

o PETITION FOR REVIEW on the ground of fraud, accident, mistake, or excusable negligence filed with
the proper court

o APPEAL FROM THE ORDER OF RECONSTITUTION to the LRA administrator

JUDICIAL RECONSTITUTION UNDER REPUBLIC ACT 26

> Republic Act 26: An Act Providing a Special Procedure For The Reconstitution of Torrens Certificate of
Titles Lost or Destroyed

> Reconstitution of title is an action in rem

> A judicially reconstituted title has the same validity and legal effect as the original thereof, and isn’t
subject to the reservation that it shall be without prejudice to any party whose right or interest in the
property was duly noted in the original at the time of loss or destruction but which entry or notation
hasn’t been made on the reconstituted title

> The limitation that reconstitution of title should be limited to the certificate as it stood at the time of
its loss or destruction has reference only to changes which alter or affect title of the registered owner
and not to mere liens and other encumbrances

RECONSTITUTION DENOTES RESTORATION OF THE LOST TITLE IN ITS ORIGINAL FORM AND CONDITION

> Purpose is to have it reproduced, after observing the procedure prescribed by law in the same form
they where when the loss or destruction occurred

> The fact that the title to the land was lost doesn’t mean that the lot ceased to be a registered land
before the reconstitution of its title

> As the subject land didn’t cease to be titled, it cannot be acquired by acquisitive prescription

> Reconstitution is proper only when it is satisfactorily shown that the title sought to be reconstituted is
lost or no longer available

> Where the petition for reconstitution wasn’t to restore a lost registered certificate of title but to re-
register and issue a new certificate in the names of petitioner and her deceased husband, in lieu of one
originally registered in the names of other persons, the petition should be denied without prejudice to
the right of the parties to take the necessary action under Section 51 and 53 of PD1529

> Republic Act 26 provides for special procedure for the reconstitution of torrens certificate of title that
are missing and not fictitious titles which are existing. Where a certificate of title over a parcel of land
was reconstituted judicially and later it was found that there existed a previous certificate of title
covering the same land in the name of another person, the court ruled that the existence of the prior
title ipso facto nullified the reconstitution proceedings

SOURCES OF RECONSTITUTION ORIGINAL CERTIFICATES OF TITLE

1. The owner’s duplicate certificate of title

2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of title

3. A certified copy of the certificate of title, previously issued by the RD or by a legal custodian thereof

4. An authenticated copy of the decree of registration or patent, as the case may be, pursuant to which
the original certificate of title was issued

5. A document, on file with the RD, by which the property, the description of which is given in said
document, is mortgaged, leased, or encumbered, or an authenticated copy of said document showing
that its original has been registered

6. Any other document which, in the judgment of the court is sufficient and proper basis for
reconstituting the lost or destroyed certificate of title

FOR TRANSFER CERTIFICATE OF TITLE

1. The owner’s duplicate certificate of title

2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of title

3. A certified copy of the certificate of title, previously issued by the RD or by a legal custodian thereof

4. The deed of transfer or other document, on file in the RD, containing a description of the property, or
an authenticated copy thereof, showing that its original had been registered, and pursuant to which the
lost or destroyed transfer certificate of title was issued

5. A document, on file with the RD, by which the property, the description of which is given in said
document, is mortgaged, leased, or encumbered, or an authenticated copy of said document showing
that its original has been registered

6. Any other document which, in the judgment of the court is sufficient and proper basis for
reconstituting the lost or destroyed certificate of title
FOR LIENS AND ENCUMBRANCES

1. Annotations or memoranda appearing on the owner’s co-owner’s mortgagee’s or lessee’s duplicate

2. Registered documents on file in the RD, or authenticated copies thereof showing that the originals
thereof had been registered

3. Any other document which, in the judgment of the court is sufficient and proper basis for
reconstituting the liens or encumbrances affecting the property covered by the lost or destroyed
certificate of title

MEANING OF “ANY OTHER DOCUMENT”

> As per LRC circular #35, the signed duplicate copy of the petition to be forwarded to this Commission
shall be accompanied by the following:

o A duly prepared plan of said parcel of land in tracing cloth, with 2 print copies thereof, prepared by the
government agency which issued the certified technical

description, or by a duly licensed Geodetic Engineer who shall certify thereon that he prepared the same
on the basis of a duly certified technical description. Where the plan as submitted is certified by the
government agency which issued the same, it is sufficient that the technical description be prepared by a
duly licensed Geodetic Engineer on the basis of said certified plan.

o The original, 2 duplicate copies, and a Xerox copy of the original of the technical description of the
parcel of land covered by the certificate of title, duly certified by the authorized officer of the Bureau of
Lands or the LRC who issued the technical description

o A signed copy of the certification of the RD concerned that the original of the certificate on title on file
with the RD was either lost or destroyed, indicating the name of the registered owner, if known from the
other records in file in said office.
WHERE TO FILE PETITION; CONTENTS

> Shall be filed by the registered owner, his assigns, or any person having interest in the property with
the proper RTC where the same is based on sources enumerated earlier

> Contents shall be as followed—

1. That the owner’s duplicate had been lost or destroyed

2. That no co-owner’s, mortgagee’s, lessee’s, duplicate had been issued or, if any had been issued, the
same had been lost or destroyed

3. The location, area and boundaries of the property

4. The nature and description of the buildings or improvements, if any, which don’t belong to the owner
of the land, and the names and addresses of the owners of such buildings or improvements

5. The names and addresses of the occupants or persons in possession of the property, of the owners of
the adjoining properties and all persons who may have any interest in the property

6. A detailed description of the encumbrances if any, affecting the property

7. A statement that no deeds or other instruments affecting the property have been presented for
registration, or if there be any, the registration thereof hasn’t been accomplished, as yet

REQUIREMENTS OF NOTICE BY PUBLICATION, POSTING AND MAILING

1. To be published twice, at the expense of the petitioner, in successive issues of the Official Gazette

2. To be posted on the main entrance of the provincial building and of the municipal building of the
municipality or city in which the land is situated

3. Copy of the notice to be sent by registered mail or otherwise, at the expense of the petitioner, to
every person named therein whose address is known, within 30 days prior the date of hearing

> The jurisdiction of the court is hedged in the forewalls of the petition and the published notice of
hearing which define the subject matter of the petition.
SECTION 109 OF THE LAND REGISTRATION ACT GOVERNS REPLACEMENT OF LOST DUPLICATE
CERTIFICATE

> Section 109 is the applicable law in petitions for the issuance of new owner’s duplicate certificate
which are lost or stolen or destroyed

> RA 26 applies only in cases of reconstitution of lost or destroyed original certificates of title on file with
the RD

> The requirements for the replacement of a lost duplicate certificate are:

1. The registered owner or other person in interest shall send notice of the loss or destruction of the
owner’s duplicate certificate of title to the RD of the province or city where the land lies as soon as the
loss or destruction is discovered

2. The corresponding petition for the replacement of the loss or destroyed owner’s duplicate certificate
shall then be filed in court and entitled in the original case in which the decree of registration was
entered

3. The petition shall state under oath the facts and circumstances surrounding such loss or destruction

4. The court may set the petition for hearing, after due notice to the RD and other interested parties as
shown in the memorandum of encumbrances noted in the Original Certificate of Title or Transfer
Certificate of Title on file in the office of the Register of Deeds

5. After due notice and hearing, the court may direct the issuance of a new duplicate certificate which
shall contain a memorandum of the fact that it is issued in place of the lost or destroyed certificate and
shall in all respects be entitled to the same faith and credit as the original duplicate

PETITION, WHERE FILED

> A petition for replacement shall be filed with the RTC of the place where the land lies and this is true
even if the title was issued pursuant to a public land patent registered in accordance with Section 103 of
this decree

NO TIME LIMIT TO FILE PETITION TO ANNOTATE A DEED OF SALE

> No limitation or period is fixed for filing a petition to annotate a deed of sale at the back of a certificate
of title
> If any person claims that a person registered a deed of sale can no longer do so, because the deed was
executed more than 10 years before, such objection must be raised in an ordinary civil action

> Where there is no question as to the existence and validity of the deed of sale, the registration of the
sale and issuance of a Transfer Certificate of Title are ministerial duties of the RD

NO ALTERATION OR AMENDMENT OF DECREE OF REGISTRATION IS PERMITTED EXCEPT UPON ORDER OF


THE COURT

> Otherwise, a decree of registration cannot be permanent if, for instance, the limits of the land therein
registered may be changed or the amount of land so registered altered by a subsequent adjudication of
said court based upon new evidence tending to show that the evidence introduced on the former
hearing was incorrect

RULE UNDER SECTION 108, IN RELATION TO SECTION 2 PD1529: COURT MAY NOW HEAR BOTH
CONTENTIOUS AND NONCONTENTIOUS CASES

> Section 2 of PD1529 has eliminated the distinction between general jurisdiction vested in the RTC and
the limited jurisdiction conferred upon it by the former law when acting merely as a cadastral court—
this is aimed at avoiding the multiplicity of suits, the change has simplified registration proceedings by
conferring upon the RTC the authority to act not only on applications for original registration but also
over all petitions filed after original registration of title, with power to hear and determine all questions
arising upon such applications or petitions.

> The rule that the RTC, sitting as a land registration court, has limited jurisdiction and has no authority
to resolve controversial issues, no longer holds

PROCEEDINGS UNDER SECTION 112 OF THE LAND REGISTRATION ACT ARE SUMMARY IN NATURE

> Case law stressed the summary character of the proceedings for the amendment or alterations of the
certificates of title

> Proceedings under Section 112 are summary in nature and relief can only be granted if there is
unanimity among the parties, or there is no adverse claim or serious objection on the part of any party in
interest; otherwise, the case becomes contentious and controversial which should be threshed out in an
ordinary action or in any case where the incident properly belongs (Fojas v. Grey)

> Any registered owner of land or other party in interest may, on certain grounds, apply by petition to
the cadastral court for a new certificate or entry or cancellation or memorandum thereon, but such relief
can only be granted if there is no adverse claim or serious objection on the part of any party in interest;
otherwise, the case becomes controversial and should be threshed out in an ordinary case or in the case
where the incident properly belongs (Abella v. Rodriguez)

> Although exceptions are admitted in rare cases, these are not based alone on the fact that land
registration courts are likewise the same CFI but also on the following premises—

o Mutual consent of the parties or their acquiescence in submitting the issues for determination by the
court in the registration proceedings

o Full opportunity to the parties in the presentation of their respective sides of the issues and evidence
in support thereto

o Consideration by the court that the evidence already of record is sufficient and adequate for rendering
a decision upon those issues

WHEN TO FILE PETITION FOR AMENDMENT OR ALTERATION OF CERTIFICATE

1. Whether vested, contingent, expectant or inchoate appearing on the certificate, have terminated and
ceased; or

2. That new interest not appearing upon the certificate have arisen or been created; or

3. That an omission or error was made in entering a certificate or any memorandum thereon, or, on any
duplicate certificate; or

4. That the same or any person on the certificate has been changed; or

5. That the registered owner has married, or,

6. If registered as married, that the marriage has been terminated and no right or interests of heirs or
creditors will thereby be affected; or

7. That a corporation which owned registered land and has been dissolved has not convened the same
within three years after its dissolution; or upon any other reasonable ground;
WHERE TO FILE PETITIONS OR MOTIONS AFTER ORIGINAL REGISTRATION

> All petitions or motions after original registration shall be filed and entitled in the original case in which
the decree of registration was entered

> This provision doesn’t require that it be under oath

> Provision was adopted with an intelligent purpose in view—to allow such petitions and motions to be
filed and disposed of elsewhere would eventually lead to confusion and render it difficult to trace the
origin of the entries in the registry

AUTHORITY OF COURT TO ORDER THE SURRENDER OF OWNER’S DUPLICATE CERTIFICATE

> In order that the court may order the registered owner to surrender his owner’s duplicate, it has to
determine upon the evidence presented by the parties whether the registered owner had been lawfully
divested of his title thereto

> That of course requires and involves of the determination of the question of title to the registered
property

> Section 107 doesn’t constitute a reopening of the decree entered as a result of proceedings in rem for
the confirmation of imperfect title under said act, it cannot be deemed to contravene the purpose or
aim of the Torrens system.

PETITION TO SURRENDER TITLE MAY BE FILED AS AN INCIDENT IN AN ACTION AFFECTING SAID TITLE

> Where the court in an action for specific performance, upheld the sale to the plaintiff and ordered the
defendant to comply with the terms and conditions to the sale, it was proper for the plaintiff to ask the
court to compel the defendant to surrender the duplicate certificate of title to the RD for the registration
of the sale, this being a necessary incident in the main case

> Section 107 doesn’t preclude a party to a pending case to include as incident therein the relief stated
under said section, specially if the certificate of title to be surrendered is intimately connected with the
subject matter of the principal action
> Where the title is subject to a mortgage, the order of the court cannot in any way prejudice the rights
of the mortgagee since any lien annotated in the certificate is incorporated or carried over to the new
transfer certificate of title to whoever it is issued

REMEDY WHERE DUPLICATE CERTIFICATE IS WITHHELD

> In case the person in possession of the owner’s duplicate certificate refuses or fails to surrender the
same to the RD so that any involuntary or voluntary instrument may be registered and a certificate
issued, the party in interest may file a petition in court to compel the surrender of the same to the RD

> The court after hearing may order the registered owner or any person withholding the duplicate
certificate and direct the entry of a new certificate or memorandum upon such surrender

> If the person withholding the certificate is not amenable to the process of the court, or if for any
reason the certificate cannot be delivered, the court may order the annulment of said certificate and the
issuance of a new certificate of title in lieu thereof

> Such new certificate and all duplicates thereof shall contain a memorandum of the annulment of the
outstanding duplicate

MODES OF ACQUISITION OF AGRICULTURAL LAND

1. Operation land transfer—mechanism established for the implementation of PD27

2. Voluntary offer to sell—scheme whereby the landowners voluntarily offer their agricultural lands for
coverage regardless of phasing

3. Voluntary land transfer/direct payment scheme—landowner and the beneficiary enter into a
voluntary agreement for the direct transfer of lands to the latter

4. Compulsory acquisition—whereby the land is expropriated by the State (Section 16 of RA 6657)

5. Voluntary stock distribution in the case of corporate farms – alternative arrangement for the physical
distribution of lands wherein corporate owners voluntarily divest a portion of their capital stock, equity
or participation in favor of their workers or other qualified beneficiaries
ACQUISITION OF PRIVATE AGRICULTURAL LANDS; PAYMENT OF JUST COMPENSATION

1. The land must be privately-owned and found suitable for agriculture

2. There are beneficiaries willing to take over the ownership of the land and make it more productive

3. The landowner is paid just compensation or deposit cash or LBP bonds is made in his name if the value
is contested

4. Title to the land is transferred in the name of the RP

DISTURBANCE COMPENSATION (following RA 3844)

> Notwithstanding any agreement as to the period or future surrender, of the land, an agricultural lessee
shall continue in the enjoyment and possession of his landholding except when his dispossession has
been authorized by the Court in a judgment that is final and executory if after due hearing it is shown
that—

1. The agricultural lessor-owner or a member of his immediate family will personally cultivate the
landholding or will convert the landholding, if suitably located, into residential, factory, hospital or school
site or other useful non-agricultural purposes: Provided; That the agricultural lessee shall be entitled to
disturbance compensation equivalent to five years rental on his landholding in addition to his rights
under Sections twenty-five and thirty-four, x x x

> The state is not liable for disturbance compensation

EXTINGUISHMENT OF AGRICULTURAL LEASEHOLD RELATIONS

1. Abandonment of landholding without the knowledge of the agricultural owner

2. Voluntary surrender of the landholding by the agricultural lessee, written notice of which shall be
served 3 months in advance

3. Absence of the persons to succeed to the lessee, in the event of death or permanent incapacity of the
lessee
AGRICULTURAL TENANCY

> The physical possession by a person of land devoted to agriculture, belonging to, or legally possessed
by, another for the purpose of production through the labor of the former, and of the members of his
immediate farm household, is consideration of which the former agrees to share the harvest with the
latter, or to pay a price certain or ascertainable, either in produce or in money, or both

REQUISITES OF AGRICULTURAL TENANCY

1. Parties are the landowner and the tenant

2. The subject is the agricultural land

3. There is consent

4. The purpose is agricultural production

5. There is personal conviction

6. There is sharing of harvests

DISTINCTIVE FEATURES OF PD27 AND RA6657, EXEMPTION DISTINGUISHED FROM RETENTION

> PD27 implemented the Operation Land Transfer Program—covers tenanted rice and corn lands

> The requisites for coverage under the Operation Land Transfer program are the following—

o The land must be devoted to rice or corn crops

o There must be a system of share-crop or lease-tenancy

obtaining therein

> If either is absent, the landowner may apply for exemption

> PD27 grants each tenant of covered lands a 5 hectare lot, or in case the lot is irrigated, 3 hectares
constituting the family size farm. However, said law allows a covered landowner to retain not more than
7 hectares of his land if his aggregate landholding doesn’t exceed 24 hectares

> Consequently, a landowner may keep his whole covered land if its aggregate size doesn’t exceed the
retention limit of 7 hectares
> An application for exemption is different from that of retention. They are distinct remedies and thus,
judgment in one doesn’t preclude the subsequent institution of the other

> The right to retention is a constitutionally guaranteed right which is subject to the qualifications by the
legislature

> Landowners who haven’t exercised their retention rights under PD27 may exercise their retention
rights under RA 6657

> The right to retention may be exercised over tenanted land despite the issuance of the certificate of
land transfer to farmerbeneficiaries. What must be protected, however, is the right of the tenants to opt
to stay on the land chosen to be retained by the landowner or be a beneficiary in another agricultural
land with similar or comparable features

> Land awards made pursuant to a government’s agrarian reform program are subject to the exercise of
the landowner who is qualified to the right of retention

> The issuance of emancipation patents or certificates of land transfers doesn’t absolutely bar the
landowner from retaining the area covered thereby

WAIVER OF RIGHT OF RETENTION

1. Executing an affidavit or any other document duly attested by the MARO, Provincial Agrarian Reform
Officer, or Regional Director, indicating that he is expressly waiving his right of retention

2. Signing of the landowner-tenant production agreement and farmer’s undertaking or application for
purchase and farmer’s undertaking, covering subject property

3. Entering into a voluntary land transfer/direct payment scheme agreement

4. Offering the subject landholding under VOS scheme and failure to indicate his retained area

5. Signing or submission of other documents indicating consent to have the entire property covered,
such as the form letter of the LBP on the disposition of the case and bond portions of a land transfer
claim for payment, and the Deed of Assignment, warranties and undertaking and undertaking executed
in favor of the LBP

6. Performing acts which constitute estoppel by laches

7. Doing such act or acts as would amount to a valid waiver in accordance with applicable laws and
jurisprudence
ONLY AGRICULTURAL LANDS ARE SUBJECT TO THE AGRARIAN REFORM COVERAGE

AGRICULTURAL LAND

> Refers to land devoted to agricultural activity as defined in this Act and not classified as mineral, forest,
residential, commercial or industrial land.

AGRICULTURAL ACTIVITY

> Means the cultivation of the soil, planting of crops, growing of fruit trees, including the harvesting of
such farm products, and other farm activities and practices performed by a farmer in conjunction with
such farming operations done by persons whether natural of juridical.

WHAT ARE EXCLUDED?

1. Lands converted to non-agricultural use before the effectivity of CARL are outside the coverage

2. Farms used for livestock, poultry and swine not covered

3. Agricultural lands reclassified by LGUs into residential, commercial, or industrial uses excluded

4. Lands used for academic or educational purposes exempted

5. Homesteads are excluded

JURISDICTION OF DAR

> Matters involving the administrative implementation of the transfer of the land, such as the giving out
of notices of coverage to the tenant-farmer under PD27 and amendatory and related decrees, rules and
regulations, shall be exclusively cognizable by the Secretary of Agrarian Reform, including the issuance,
recall, or cancellation of emancipation patents or certificates of land ownership award, save when such
certificates of land transfer have been registered with the RD, in which instance the recalling authority
would be the DARAB

DEEMED TO BE THE OWNER—AS DEFINED IN PD 27

> Grantee of a certificate of land transfer must be construed within the policy framework of PD 27 and
interpreted with other stipulations of the certificate issued pursuant to the Decree
> PD27 was anchored upon the fundamental objective of addressing valid and legitimate grievances of
land ownership giving rise to violent conflict and social tension in the countryside

SCOPE OF THE COMPREHENSIVE AGRARIAN REFORM LAW OR REPUBLIC ACT 6657

> Agrarian Reform means the redistribution of lands, regardless of crops or fruits produced, to farmers
and regular farm workers who are landless, irrespective of tenurial arrangement, to include the totality
of factors and support services designed to lift the economic status of the beneficiaries and all other
arrangements alternative to the physical redistribution of lands, such as production or profit-sharing,
labor administration, and the distribution of shares of stock, which will allow beneficiaries to receive a
just share of the fruits of the lands they work.

EXEMPTIONS AND EXCLUSIONS

1. Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish
sunctuaries and breeding grounds, watersheds and mangroves shall be exempt from the coverage of this
Act.

2. Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt
from the coverage of this Act: Provided, That said prawn farms and fishponds have not been distributed
and Certificate of Land Ownership Award (CLOA) issued to Agrarian Reform Program. In cases where the
fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by voluntary
offer to sell, or commercial farms deferment or notices of compulsory acquisition , a simple and absolute
majority of the actual regular workers or tenants must consent to the exemption within one (1) year
from the effectivity of this Act. When the workers or tenants do not agree to this exemption, the
fishponds or prawn farms shall be distributed collectively to the worker-beneficiaries or tenants who
shall from cooperative or association to manage the same.

In cases where the fishponds or prawn farms have not been subjected to the Comprehensive Agrarian
Reform Law, the consent of the farm workers shall no longer be necessary; however, the provision of
Section 32-A hereof on incentives shall apply.

3. Lands actually, directly and exclusively used and found to be necessary for national defense, school
sites and campuses, including experimental farm stations operated by public or private schools for
educational purposes, seeds and seedlings research and pilot production center, church sites and
convents

appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds
and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private
research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those
already developed, shall be exempt from the coverage of this Act. (As amended by R.A 7881)

Presidential Decree 27 LAID DOWN A SYSTEM FOR THE PURCHASE BY SMALL FARMERS OF THE LANDS
THEY WERE TILLING

> Presidential Decree 27 was anchored upon the fundamental objective of addressing valid and
legitimate grievances of land ownership giving rise to violent conflict and social tension in the
countryside

> Recognized the necessity to encourage a more productive agricultural base to the country’s economy

> The certificate of land transfer under Presidential Decree 27 provides that the tenant farmer is deemed
to be the owner of the agricultural land subject to the conditions that the cost of the portion transferred
to him, including the interest, shall be paid in 15 equal annual amortizations, and that he must be a
member of a barrio association upon organization of such association in his legality

RA 6657 OR COMPREHENSIVE AGRARIAN REFORM LAW OF 1988

> Agrarian reform program is founded on the right of farmers and regular farm workers, who are
landless, to own directly or collectively the lands they till, or in case of other farm workers, to receive a
just share on the fruits thereof

> To this end, the State shall encourage and undertake the just distribution of all agricultural lands,
subject to the priorities and retention limits set forth in the law, taking into account ecological,
developmental, and equity considerations and subject to the payment of just compensation

> The State shall respect the right of small landowners, and shall provide for voluntary land-sharing

AGRARIAN REFORM PROVISION IN THE 1987 CONSTITUTION

> Article 13, Section 4. The State shall, by law, undertake an agrarian reform program founded on the
right of farmers and regular farm workers who are landless, to own directly or collectively the lands they
till or, in the case of other farm workers, to receive a just share of the fruits thereof. To this end, the State
shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and
reasonable retention limits as the Congress may prescribe, taking into account ecological,
developmental, or equity considerations, and subject to the payment of just compensation. In
determining retention limits, the State shall respect the right of small landowners. The State shall further
provide incentives for voluntary land-sharing.

EFFECT OF VOID CONVEYANCE

> Where the parties to a sale of a portion of the public domain covered by homestead patent have been
proven to be guilty of having effected the transaction with knowledge of the cause of its invalidity, the
sale is null and void and shall cause the reversion of the property to the State

RULE OF PARI DELICTO NOT APPLICABLE

> The principle of in pari delicto is not applicable to cases when its application would run counter to the
an avowed public fundamental policy or to public interest

> Whether as a result of the void sale the land reverted to the State is a point between the State and the
grantee of the homestead and his heirs. In any event, the plaintiff’s right to the possession and use of
the property can hardly be disputed while the government doesn’t take steps to assert its title to the
homestead.

REPURCHASE OF LAND BY APPLICANT OR HIS HEIRS

> Sanctioned by Section 119 of the Public Land Act

> The right to repurchase attaches to every alienation and encumbrance, and that right can be exercised
even in the absence of any stipulation in the deed of sale

> To give the homesteader or patentee every chance to preserve for himself and his family the land that
the state had gratuitously given to him as a reward for his labor in cleaning and cultivating it

> The five-year period starts from the date of execution of the deed of sale, and not from the date of
registration in the office of the Register of Deeds. This is true even if the full payment of the purchase
price is not made on the date of conveyance unless there is stipulation to the contrary.
A HOMESTEAD IS EXEMPT FROM CARP COVERAGE RULE WHEN HOMESTEAD IS SUBJECT OF MORTGAGE

> The five-year period begins from the date when the deed of absolute sale is executed and the property
is formally transferred to the purchaser

REPURCHASE MAY BE BARRED BY LACHES

PROHIBITION AGAINST ALIENATION OF LANDS ACQUIRED UNDER THE HOMESTEAD AND FREE PATENT
PROVISIONS

> Section 116. Except in favor of the Government or any of its branches, units or institutions, or legally
constituted banking corporations, lands acquired under the free patent or homestead provisions shall
not be subject to encumbrance or alienation from the date of the approval of the application and for a
term of five years from and after the date of issuance of the patent or grant, nor shall they become liable
to the satisfaction of any debt contracted prior to the expiration of said period; but the improvements or
crops on the land may be mortgaged or pledged to qualified persons, associations, or corporations. (As
amended by section 23 of Act No. 3517).

> Section 119. Except with the consent of the grantee and the approval of the Secretary of Agriculture
and Natural Resources, and solely for commercial, industrial, educational, religious or charitable
purposes or for a right of way, no corporation, association, or partnership, may acquire or have any right,
title, interest, or property right whatsoever to any land granted under the free patent, homestead or
individual sale provisions of this Act or to any permanent improvement on such land. (As amended by
section 24 of Act. No. 3517).

> Section 120. No land originally acquired in any manner under the provisions of this Act, nor any
permanent improvement on such land, shall be encumbered, alienated, or transferred, except to
persons, corporations, associations, or partnerships who may acquire lands of the public domain under
this Act; to corporations organized in the Philippine Islands authorized therefor by their charters, and
upon express authorization by the Philippine Legislature, to citizens of countries the laws of which grant
to citizens of the Philippine Islands the same right to acquire, hold, lease, encumber, dispose of, or
alienate land, or permanent improvements thereon, or any interest therein, as to their own citizens, only
in the manner and to the extent specified in such laws, and while the same are in force, but not
thereafter.

> Section 122. Any acquisition, conveyance, alienation, transfer, or other contract made or executed in
violation of any of the provisions of sections one hundred and sixteen, one hundred and eighteen, one
hundred nineteen, one hundred and twenty, and one hundred and twenty-one of this act shall be
unlawful and null and void from its execution and shall produce the effect of annulling and canceling the
grant, title, patent, or permit originally issued, recognized, or confirmed, actually or presumptively, and
cause the reversion of the property and its improvements to the Government.
> Section 122(A). The provisions of sections twenty three, twenty four, thirty four, fifty seven, one
hundred and twenty, and one hundred and twenty-one of this Act, and any other provisions or
provisions restricting or tending to restrict the right of persons, corporations, or associations to acquire,
hold, lease, encumber, dispose of, or alienate land in the Philippines, or permanent improvements
thereon, or any interest therein, shall not be applied in cases in which the right to acquire, hold or
dispose of such land, permanent improvements thereon or interests therein in the Philippine Islands is
recognized by existing treaties in favor of citizens or subjects of foreign nations and corporations or
associations organized and constituted by the same, which right in so far as it exists under such treatise,
shall continue and subsist in the manner and to the extent stipulated in said treaties, and only while
these are in force, but not thereafter.

PROHIBITION STARTS FROM DATE OF APPROVAL UP TO 5TH YEAR FROM ISSUANCE OF PATENT

POLICY OF THE LAW

> To conserve the land which a grantee has acquired under the Public Land Act for him and his heirs

> To give the patentee a place where to live with his family so he may become a happy citizen and useful
member of the society

APPROVAL OF SECRETARY MERELY DIRECTORY

> Its absence doesn’t invalidate any alienation, transfer or conveyance of the homestead after 5 years
and before the 25- year period

COURTS HAVE JURISDICTION OVER POSSESSORY ACTIONS INVOLVING PUBLIC LANDS

> Even pending the investigation of, and resolution on, an application by a bona fide occupant, by the
priority of his application and record of his duty, he acquires a right to the possession of the public land
he applied for against any other public land applicant, which right may be protected by the possessory
action of forcible entry or by any other suitable remedy that our rules provide

> The grant of power and duty to alienate and dispose of the land doesn’t divest the courts of their duty
or power to take cognizance of actions instituted by settlers or occupants or applicants against others to
protect their respective possessions and occupations, more especially the actions of trespass, forcible
entry and unlawful detainer
GOVERNMENT MAY INITIATE ACTION FOR CANCELLATION OF TITLE AND REVERSION

> Section 101 of Public Land Act provides for a remedy whereby lands of the public domain fraudulently
awarded to the applicant may be recovered or reverted back to its original owner, the government

> Office of Solicitor General shall represent the government in all land registration and related
proceedings and institute actions for the reversion to the government of lands of the public domain and
improvements thereon as well as lands held in violation of the Constitution

> It is improper for the government to file an action for reversion of land titled to defendant pursuant to
a free patent where the alleged fraud consists in the fact that said land, at the time of issuance of the
free patent was no longer a part of the public domain, having been adjudicated as private property of
another person in a previous registration case

> An action for reversion on the ground that defendant obtained patent through fraud would also fail
where the land had successively been sold by the heirs of the patentee to third parties who are holding
Torrens titles and enjoying the presumption of good faith

> Private parties cannot challenge the validity of the patent and title when they are not registered
owners thereof nor had they been declared the owners as owners in the cadastral proceedings—
whether the grant was in conformity with the law or not is a question which the government may raise,
but until it is raised by the government and set aside, the defendant cannot question it. The legality of
the grant is a question between the grantee and the government.

PRIVATE PARTY CANNOT BRING ACTION FOR REVERSION

> If there has been any fraud or misrepresentation in obtaining the title, an action for reversion
instituted by the Solicitor General would be the proper remedy

ACTION FOR REVERSION NOT BARRED BY PRESCRIPTION

> Statute of limitations doesn’t run against the State

ACTION FOR CANCELLATION OF TITLE

> Proper when a private party claims ownership of the land as private property by virtue of a long period
of possession and hence, no longer deemed a part of the public domain which could be disposed of
under the provisions of the Public Land Act, or when the land is already covered by a previously issued
certificate of title
DIRECTOR OF LANDS HAS CONTINUING AUTHORITY TO INVESTIGATE FRAUDULENT ISSUANCE OF
PATENTS

> It is not only the right but also the duty of the Director of Lands to conduct the investigation of any
alleged fraud in securing the free patent and the corresponding title to a public land and to file the
corresponding court action for the reversion of the same to the State, if the facts disclosed in the course
of such investigation should so warrant

> The indefeasibility of title over land previously public is not a bar to an investigation by the Director of
Lands as to how such title has been acquired, if the purpose of such investigation is to determine
whether or not fraud had been committed in securing such title in order that that the appropriate action
for reversion may be filed by the government

CERTIFICATE OF TITLE ISSUED PURSUANT TO A PATENT INDEFEASIBLE

> Once the patent is registered and the corresponding certificate of title is issued, the land ceases to be
part of the public domain and becomes private property over which the Director of Lands has neither
control nor jurisdiction

> Partakes of a nature of a certificate of title issued through judicial proceeding

> It has in its favor the presumption of regularity

> It becomes incontrovertible upon the expiration of 1 year from the date of the order for issuance of the
patent, hence, prescription cannot operate against the registered owner

TITLE NOT DEFEATED BY ADVERSE POSSESSION

FORESHORE LANDS, SUBMERGED AREAS, AND RECLAIMED LANDS

> A foreshore land is that strip off land that lies between the high and low water marks and that is
alternatively wet and dry according to the flow of the tide

> Inalienable unless converted by law into Alienable and Disposable lands of the public domain

REGISTRATION OF PATENT IS THE OPERATIVE ACT TO CONVEY THE LAND


FRIAR LANDS

> Were purchased by the government for sale to actual occupants under the provisions of Act 1120 or
the Friar Lands Act

> These lands are not public lands but private and patrimonial lands of the government

> The Land Management Bureau shall first issue a certificate stating therein that the government has
agreed to sell the land to such settler or occupant

> The latter shall then accept the certificate and agree to pay the purchase price so fixed, in installments
and at the rate of interest specified in the certificate

> The conveyance or certificate of sale executed in favor of a buyer is a conveyance of ownership of the
property, subject only to the resolutory condition that the sale may be cancelled if the price agreed upon
is not paid in full

OWNERSHIP TRANSFERRED TO BUYER UPON EXECUTION OF CERTIFICATE OF SALE

sALE OF FRIAR LANDS DIFFERENT FROM SALE OF PUBLIC LANDS

SPECIAL PATENTS

> Patent to grant, cede, and convey full ownership of alienable and disposable lands formerly covered by
a reservation of lands of the public domain and is issued upon the promulgation of a special law or act of
Congress or by the DENR Secretary as authorized by the President

RESERVATIONS OF LAND FOR PUBLIC AND SEMI-PUBLIC PURPOSES

> Chapter 12 of Public Land Act

> Upon the recommendation of the Secretary of DENR, the President may designate by proclamation any
tract/s of land of the public domain as reservations for the use of the RP or any of its branches, or of the
inhabitants thereof, in accordance with the regulations prescribed for this purpose, or for quasi-public
uses or purposes when the public interest requires it
> A certified copy of this proclamation shall be forwarded to the Register of Deeds of the province or city
where the land lies

> Upon receipt of such copy, the Director of Lands shall order the immediate survey of the proposed
reservation if the land has not been yet surveyed, and as soon as the plat has been completed, he shall
proce3ed in accordance with the next following section

> The tract/s reserved shall be non-alienablen and shall not be subject to any occupation, entry, sale,
lease, or other disposition until again declared as alienable and disposable

FREE PATENT

> Any natural born citizen of the Philippines who is the owner of more than 12 hectares and who, for at
least 30 years prior to the effectivity of this amendatory Act, has continuously occupied and cultivated,
either by himself or through his predecessors-in interest a tract or tracts of agricultural public lands
subject to disposition, who shall have paid the real estate tax thereon while the same hasn’t been
occupied by any person shall be entitled, under the provisions of this Chapter, to have a free patent
issued to him for such tract or tracts of such land not to exceed 12 hectares

> PD 1073—apply only to A and D lands of the public domain which have been in open, continuous,
exclusive, and notorious possession and occupation by the applicant himself or thru his predecessors-in-
interest, under a bona fide claim of ownership

LANDS FOR EDUCATIONAL, CHARITABLE, AND OTHER SIMILAR PURPOSES

> Under Chapter 10 of the Public Land Act, lands for said purposes may be sold or leased, under the
same conditions as the sale or lease of agricultural public lands, for the purpose of founding a cemetery,
church, college, school, university, or other institutions for educational, charitable, or philathropical
purposes or scientific research, the area to be such as may actually and reasonably be necessary to carry
out such purposes

> The Secretary of DENR may order the sale to be made without public auction, at a price fixed by him
LANDS WITHIN MILITARY RESERVATIONS

> Pursuant to Republic Act 274, lands within military reservations when declared by the President as no
longer needed for military purposes may be subdivided by the Director of Lands and thereafter sold to
persons qualified to acquire agricultural public lands under the Public Land Act, with priority given to
bona fide occupants and then to war veterans

> The area shall be determined by the Director of Lands according to the nature of the land, the number
of prospective applicants, and the purposes for which it will be utilized

LANDS FOR RESIDENTIAL PURPOSES—DIRECT SALE

> Republic Act 730 allows the direct sale of public lands for residential purposes to qualified applicants
under certain conditions

> To be qualified, the applicant must be—

o Be a Filipino citizen of legal age

o Must not be the owner of a home lot in the municipality or city in which he resides

o Have established in good faith his residence on a parcel of public land which is not needed for public
service

o Have constructed his house and actually resided therein

> If the applicant complies with the above, he is given preference to purchase at a private sale not more
than 1000 sq.m. of land at a price to be fixed by the Director of Lands

> Republic Act 730 merely provides an exception to Sections 61 and 67 of CA 141

SALES PATENT- LANDS FOR RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL PURPOSE

> The disposition of lands which are intended for residential, commercial, or industrial purposes is
governed by Chapter 9 of the Public Land Act

> Lands under this chapter are classified as:


o Lands reclaimed by the government by dredging, filling or other means

o Foreshore

o Marshy lands or lands covered with water bordering on the shores or banks of navigable lakes or rivers

o Lands not included in any of the foregoing classes

> The first two shall be disposed of by lease only

> The last two may be sold with the condition that the purchaser shall make improvements of a
permanent character appropriate for the purpose for which the land is purchased within 18 months
from the date of the award

> The lease or sale shall be made through oral bidding, and adjudication shall be made to the highest
bidder

> However, where an applicant has made improvements on the land by virtue of a permit issued to him
by a competent authority, the sale or lease shall be made by sealed bidding as prescribed by Section 26
of the Public Land Act

> Section 60 expressly requires congressional authority before lands under Section 59 which the
government had previously transferred to government units or entities could be sold to private parties

SALES PATENT ON PUBLIC AGRICULTURAL LANDS

> Governed by Chapter 5 of the Public Land Act

> Any citizen of lawful age or the head of the family may purchase any tract of public agricultural land
not to exceed 12 hectares which shall be sold through sealed bidding

> The land shall be awarded to the highest bidder, but the applicant may equal the highest bid

> The purchase price may be paid in full upon the making of the award or in not more than 10 equal
annual installments from the date of the award

> It is required that the purchaser shall have not less than 1/5 of the land cultivated within 5 years from
the date of the award, and before any patent is issued, he must show actual occupancy, cultivation and
improvement of at least 1/5 of the land until the date of final payment
HOMESTEAD PATENT

> Chapter 4 of the Public Land Act governs the disposition of alienable public lands through homestead

> Any citizen of the Philippines over the age of 18 years, or the head of a family, may enter a homestead
of not exceeding 12 hectares of agricultural land of the public domain

> The applicant must have cultivated and improved at least 1/5 of the land continuously since the
approval of the application and resided for at least 1 year in the municipality in which the land is located,
or in a municipality in which the land is located, or in a municipality adjacent to the same, and then,
upon payment of the required fee, he shall be entitled to a patent

EFFECT OF COMPLIANCE WITH LEGAL REQUIREMENTS

> When a homesteader has complied with all the terms and conditions which entitle him to a patent for
a particular tract of public land, he acquires a vested interest therein, and is to be regarded as the
equitable owner thereof

> The execution and delivery of the patent, after the right to a particular piece of land has become
complete, are the mere ministerial acts of the officer charged with that duty

> Even without the patent, a perfected homestead is a property right in the fullest sense, unaffected by
the fact that the paramount title to the land is still in the government

CLASSIFICATION OF PUBLIC LANDS OPEN TO DISPOSITION

> Classification is an executive function

> Lands of the public domain which are alienable or open to disposition may be further classified as
agricultural, residential, commercial, or industrial, or for similar productive purposes, educational,
charitable, or other similar purpose, and reservations for townsites and for public and quasi-public uses

MODES OF DISPOSITION

1. For homestead settlemen

2. By sale
3. By lease

4. By confirmation of imperfect or incomplete title

a. By judicial legalization

b. By administrative legalization or free patent

NO PUBLIC LAND CAN BE ACQUIRED EXCEPT BY A GRANT FROM THE STATE

> No public land can be acquired by private persons without any grant, express or implied, from the
government

> It is indispensable that there be a showing of a title from the State

> The law requires at least 30 years of open, continuous, exclusive, and notorious possession and
occupation of agricultural lands of the public domain, under a bona fide claim of acquisition,
immediately preceding the filing of the application for free patent

ONLY ALIENABLE AND DISPOSABLE LANDS MAY BE THE SUBJECT OF DISPOSITION

DIFFERENCE BETWEEN PD 1529 AND PUBLIC LAND ACT

PROPERTY REGISTRATION DECREE

PD 1529

*There exists a title which is to be confirmed by the court.

*The court may dismiss the application of the applicant with or without prejudice to the right to file

a new application for the registration of the same land.

*Only risk that an applicant runs is to have his application denied.

PUBLIC LAND ACT CA 141


*The presumption always is that the land applied for pertains to the State, and that the occupants and
possessors claim an interest only in the same by virtue of their imperfect tile or continuous, open, and
notorious possession.

*The court has jurisdiction or proper to adjudicate land in favor of any of the conflicting claimants

*The applicant runs the risk of losing the land applied for

*Vests in the Director of Lands andSecretary of DENR the authority to dispose and manage public lands

IMPERIUM AND DOMINUUM

> Imperium pertains to the government authority possessed by the State, which is appropriately
embraced in the concept of sovereignty

> Dominuum pertains to the capacity to own and acquire property

> Dominuum is the foundation of the theory of Regalian doctrine

REGISTRATION OF PATENTS

Section 103. Certificates of title pursuant to patents. Whenever public land is by the Government
alienated, granted or conveyed to any person, the same shall be brought forthwith under the operation
of this Decree. It shall be the DUTY OF THE OFFICIAL ISSUING THE INSTRUMENT OF ALIENATION, GRANT,
PATENT OR CONVEYANCE IN BEHALF OF THE GOVERNMENT TO CAUSE SUCH INSTRUMENT TO BE FILED
WITH THE REGISTER OF DEEDS OF THE PROVINCE OR CITY WHERE THE LAND LIES, and to be there
registered like other deeds and conveyance, whereupon a certificate of title shall be entered as in other
cases of registered land, and an owner's duplicate issued to the grantee. The deed, grant, patent or
instrument of conveyance from the Government to the grantee shall not take effect as a conveyance or
bind the land but shall operate only as a contract between the Government and the grantee and as
evidence of authority to the Register of Deeds to make registration. It is the act of registration that shall
be the operative act to affect and convey the land, and in all cases under this Decree, registration shall
be made in the office of the Register of Deeds of the province or city where the land lies. The fees for
registration shall be paid by the grantee. After due registration and issuance of the certificate of title,
such land shall be deemed to be registered land to all intents and purposes under this Decree.
SCOPE OF SECTION 103

> The instruments mentioned in this section whereby public lands are alienated, granted or conveyed are
instruments transferring ownership and not just mere documents of lease or transferring mere
possession

> Provision directs the issuance to the grantee of an owner’s duplicate certificate

> After due registration and issuance of the certificate of title, the land shall be deemed registered land
for all intents and purposes under the Property Registration Decree

> Public land patents when duly registered are veritable Torrens title subject to no encumberances
except those stated therein, and those specified by the statute.

> They become private property which can no longer be the subject of subsequent disposition by the
Director of Lands

> Where disposable public land is granted by the government by virtue of a public land patent, the
patent is recorded and the corresponding certificate of title is issued to the grantee, thereafter, the land
is automatically brought within the operation of PD1529, entitled to all the safeguards of a veritable
Torrens

title. Upon the expiration of 1 year from its issuance, the certificate of title shall become irrevocable and
indefeasible like a certificate issued in a registration proceeding

> A certificate of title issued pursuant to a patent has the force and effect of a torrens title issued
through judicial registration proceedings

> But a land registration court which has validly acquired jurisdiction over a parcel of land for registration
of title cannot be divested of said jurisdiction by a subsequent administrative act consisting in the
issuance by the Director of Lands of a homestead patent covering the same parcel of land

REGALIAN DOCTRINE—ALL LANDS AND OTHER NATURAL RESOURCES ARE OWNED BY THE STATE

PRESCRIPTIVE PERIOD

> The plaintiff has a period of 6 years from the time the right of action accrues within which to bring an
action against the Assurance Fund

Section 102. Limitation of Action. Any action for compensation against the Assurance Fund by reason of
any loss, damage or deprivation of land or any interest therein shall be instituted within a period of six
years from the time the right to bring such action first occurred: Provided, That the right of action herein
provided shall survive to the legal representative of the person sustaining loss or damage, unless barred
in his lifetime; and Provided, further, That if at the time such right of action first accrued the person
entitled to bring such action was a minor or insane or imprisoned, or otherwise under legal disability,
such person or anyone claiming from, by or under him may bring the proper action at any time within
two years after such disability has been removed, notwithstanding the expiration of the original period
of six years first above provided.

LOSS OR DAMAGE ARISING FROM BREACH OF TRUST OR EXPANSION OF AREA NOT RECOVERABLE

Section 101. Losses not recoverable. The Assurance Fund shall not be liable for any loss, damage or
deprivation caused or occasioned by a breach of trust, whether express, implied or constructive or by
any mistake in the resurveyed or subdivision of registered land resulting in the expansion of area in the
certificate of title.

AMENDMENT OR CANCELLATION OF TITLE

> In the event the Assurance fund is held liable on account of the unlawful or erroneous issuance of a
certificate of title, the Register of Deeds upon the authority of the LRA administrator, shall file the
necessary action to amend or cancel the title or perform any other act as may be directed by the Court

>Such action may pre-empt any action against the Assurance fund

Section 98. General Fund when liable. If at any time the Assurance Fund is not sufficient to satisfy such
judgment, the National Treasurer shall make up for the deficiency from any funds available in the
treasury not otherwise appropriated. Section 99. Subrogation of government to plaintiff's rights. In every
case where payment has been made by the National Treasurer in accordance with the provisions of this
Decree, the Government of the Republic of the Philippines shall be subrogated to the rights of the
plaintiff against any other parties or securities. The National Treasurer shall enforce said rights and the
amount recovered shall be paid to the account of the Assurance Fund. Section 100. Register of Deeds as
party in interest. When it appears that the Assurance Fund may be liable for damages that may be
incurred due to the unlawful or erroneous issuance of a certificate of title, the Register of Deeds
concerned shall be deemed a proper party in interest who shall, upon authority of the Commissioner of
Land Registration, file the necessary action in court to annul or amend the title.

The court may order the Register of Deeds to amend or cancel a certificate of title or to do any other act
as may be just and equitable.
HOW JUDGMENT IS SATISFIED- Recovery of the plaintiff

> Where judgment is rendered against the government, execution shall first issue against the persons
who have been joined as co-defendants, and if the execution is returned unsatisfied, then the damages
awarded by the court shall be assessed against the Assurance fund

> But the plaintiff cannot recover as compensation more than the fair market value of the land at the
time he suffered the loss, damage or deprivation thereof

> In every case, where payment has been made by the National Treasurer, the government shall be
subrogated to the rights of the plaintiff against any other parties or securities, and any amount recovered
shall be paid to the account of the Assurance Fund

Section 97. Judgment, how satisfied. If there are defendants other than the National Treasurer and the
Register of Deeds and judgment is entered for the plaintiff and against the National Treasury, the
Register of Deeds and any of the other defendants, execution shall first issue against such defendants
other than the National and the Register of Deeds. If the execution is returned unsatisfied in whole or in
part, and the officer returning the same certificates that the amount due cannot be collected from the
land or personal property of such other defendants, only then shall the court, upon proper showing,
order the amount of the execution and costs, or so much thereof as remains unpaid, to be paid by the
National treasurer out of the Assurance Fund. In an action under this Decree, the plaintiff cannot recover
as compensation more than the fair market value of the land at the time he suffered the loss, damage, or
deprivation thereof.

Claim For Loss, Damage, Deprivation Of Land Or Any Estate Or Interest

Section 96. Against whom action filed. If such action is brought to recover for loss or damage or for
deprivation of land or of any estate or interest therein arising wholly through fraud, negligence,
omission, mistake or misfeasance of the court personnel, Register of Deeds, his deputy, or other
employees of the Registry in the performance of their respective duties, the action shall be brought
against the Register of Deeds of the province or city where the land

is situated and the National Treasurer as defendants. But if such action is brought to recover for loss or
damage or for deprivation of land or of any interest therein arising through fraud, negligence, omission,
mistake or misfeasance of person other than court personnel, the Register of Deeds, his deputy or other
employees of the Registry, such action shall be brought against the Register of Deeds, the National
Treasurer and other person or persons, as co-defendants. It shall be the duty of the Solicitor General in
person or by representative to appear and to defend all such suits with the aid of the fiscal of the
province or city where the land lies: Provided, however, that nothing in this Decree shall be construed to
deprive the plaintiff of any right of action which he may have against any person for such loss or damage
or deprivation without joining the National Treasurer as party defendant. In every action filed against the
Assurance Fund, the court shall consider the report of the Commissioner of Land Registration.

AGAINST WHOM CLAIM FOR DAMAGES MAY BE FILED

1. If the action is brought for the recovery of loss or damages or for deprivation of land or of any estate
or interest therein arising through fraud, negligence, or omission, mistake or misfeasance of the court
personnel, the Register of Deeds or other employees of the registry in the performance of the duties, the
action shall be brought against the RD of the province or city where the land lies and the National
Treasurer as defendants

2. If the action is brought for the recovery of loss or damage or for deprivation of land or of any estate or
interest therein arising through fraud, negligence, omission, mistake or misfeasance of persons other
than the court personnel, the Register of Deeds or other employees of the Registry, the action shall be
brought against the Register of Deeds, the National Treasurer and such other persons, as codefendants

> The plaintiff must clearly allege the basis of the action and specify the details which led to his loss,
damage or deprivation, as well as the market value of the property subject of the action

> It shall be the duty of the Solicitor General to represent the government

> The court shall consider the report of the LRA administrator on the matter

ASSURANCE FUND

Section 93. Contribution to Assurance Fund. Upon the entry of a certificate of title in the name of the
registered owner, and also upon the original registration on the certificate of title of a building or other
improvements on the land covered by said certificate, as well as upon the entry of a certificate pursuant
to any subsequent transfer of registered land, there shall be paid to the Register of Deeds one-fourth of
one per cent of the assessed value of the real estate on the basis of the last assessment for taxation
purposes, as contribution to the Assurance Fund. Where the land involved has not yet been assessed for
taxation, its value for purposes of this decree shall be determined by the sworn declaration of two
disinterested persons to the effect that the value fixed by them is to their knowledge, a fair valuation.

Nothing in this section shall in any way preclude the court from increasing the valuation of the property
should it appear during the hearing that the value stated is too small.
Section 94. Custody and investment of fund. All money received by the Register of Deeds under the
preceding section shall be paid to the National Treasurer. He shall keep this money in an Assurance Fund
which may be invested in the manner and form authorized by law, and shall report annually to the
Commissioner of the Budget the condition and income thereof.

The income of the Assurance Fund shall be added to the principal until said fund amounts to five
hundred thousand pesos, in which event the excess income from investments as well as from the
collections of such fund shall be paid into the National Treasury to the account of the Assurance Fund.

Section 95. Action for compensation from funds. A person who, without negligence on his part, sustains
loss or damage, or is deprived of land or any estate or interest therein in consequence of the bringing of
the land under the operation of the Torrens system of arising after original registration of land, through
fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title or in
any entry or memorandum in the registration book, and who by the provisions of this Decree is barred or
otherwise precluded under the provision of any law from bringing an action for the recovery of such land
or the estate or interest therein, may bring an action in any court of competent jurisdiction for the
recovery of damages to be paid out of the Assurance Fund.

CLAIMS AGAINST THE ASSURANCE FUND

> Section 95 provides a remedy where a person who sustains loss or damage or is deprived of any estate
or interest in land in consequence of the operations of the Torrens system of registration, without
negligence on his part, may bring an action for the recovery of damages to be paid out of the Assurance
fund

> Public policy demands that those unjustly deprived of their rights over real property by reason of the
operation of our registration laws be afforded remedies

> According to the principles of the Torrens system, it is a condition sine que non that the person who
brings an action for damages against the Assurance fund be the registered owner, and as to holders of
transfer certificates of title that they be innocent purchasers in good faith and for value

> There must also be a showing of loss or damage or deprivation of any land or interest thereon by the
operation of PD1529

> Where plaintiff is solely responsible for the plight in which it finds itself, the Director of Lands and the
National Treasurer are exempt from any liability

REQUISITES FOR RECOVERY FROM THE ASSURANCE FUND

1. That a person sustains loss or damage, or is deprived of any estate or interest in lan
2. On account of bringing of land under the operations of the Torrens system arising after the original
registration

3. Through fraud, error, omission, mistake, or misdescription in a certificate of title or entry or


memorandum in the registration

4. Without negligence on his part

5. And is barred or precluded from bringing an action for the recovery of such land or estate or interest
therein

RECORDED MORTGAGE IS PROTECTED EVEN IF TITLE IS SUBSEQUENTLY NULLIFIED

SALES, MORTGAGES, AND OTHER ENCUMBRANCES OF PROPERTY OF DECEDENT

> When it appears that the sale of the whole or a part of the land or personal estate, will be beneficial to
the heirs, devisees, legatees, and other interested persons, the court may, upon application of the
executor or administrator and on written notice to the heirs or legatees who are interested in the estate
to be sold, authorize the executor or administrator to sell the whole or part of said estate, although not
necessary to pay debts, legacies, or expenses of

administration; but such authority shall not be granted if inconsistent with the provisions of a will

REGISTRATION OF FINAL DISTRIBUTION OF ESTATE

> A certified copy of the partition and distribution, together with the final judgment or order of the court
approving the same or otherwise making final distribution, supported by evidence of payment of estate
tax or exemption therefrom, as the case may be, shall be filed with the RD and upon presentment of the
owner’s duplicate certificate of title, new certificates of title shall be issued to the parties severally
entitled thereto in accordance with the approved partition and distribution

Section 89. Land devised to executor. When it appears by will, a certified copy of which with letters
testamentary had already been filed as provided in this Decree, that registered land is devised to the
executor to his own use, or upon some trust, the executor may have the land transferred to himself upon
the register in like manner and subject to like terms and conditions and to like rights as in the case of a
transfer pursuant to a deed filed in the office of the Register of Deeds.

Section 90. When executor empowered by will to sell, etc. When the will of a deceased owner of
registered lands, or an interest therein, empowers the executor to sell, convey, encumber, charge or
otherwise deal with the land, a certified copy of the will and letters testamentary being filed as provided
in this Decree, such executor may sell, convey, encumber, charge or otherwise deal with the land
pursuant to the power in like manner as if he were registered owner, subject to the terms and conditions
and limitations expressed in the will.

Section 91. Transfer in anticipation of final distribution. Whenever the court having jurisdiction of the
testate or intestate proceedings directs the executor or administrator to take over and transfer to the
devisees or heirs, or any of them, in anticipation of final distribution a portion or the whole of the
registered land to which they might be entitled on final distribution, upon the filing of a certified copy of
such order in the office of the Register of Deeds, the executor or administratory may cause such transfer
to be made upon the register in like manner as in case of a sale, and upon the presentation of the
owner's duplicate certificate to the Register of Deeds, the devisees or heirs concerned shall be entitled
to the issuance of the corresponding certificates of title.

Section 92. Registration of final distribution of estate. A certified copy of the partition and distribution,
together with the final judgment or order of the court approving the same or otherwise making final
distribution, supported by evidence of payment of estate taw or exemption therefrom, as the case may
be, shall be filed with the Register of Deeds, and upon the presentation of the owner's duplicate
certificate of title, new certificates of title shall be issued to the parties severally entitled thereto in
accordance with the approved partition and distribution.

Filing Of Letters Of Administration And Will

Section 87. Filing of letters of administration and will. Before the executor or administrator of the estate
of a deceased owner of registered land may deal with the same, he shall file with the office of the
Register of Deeds a certified copy of his letters of administration or if there is a will, a certified copy
thereof and the order allowing the same, together with the letters testamentary or of administration
with the will annexed, as the case may be, and shall produce the duplicate certificate of title, and
thereupon the Register of Deeds shall enter upon the certificate a memorandum thereof, making
reference to the letters and/or will by their file number, and the date of filing the same.

Section 88. Dealings by administering subject to court approval. After a memorandum of the will, if any,
and order allowing the same, and letters testamentary or letters of administration have been entered
upon the certificate of title as hereinabove provided, the executor or administrator may alienate or
encumber registered land belonging to the estate, or any interest therein, upon approval of the court
obtained as provided by the Rules of Court.

LETTERS OF ADMINISTRATION, WHEN GRANTED TO A PERSON

> May be granted to any qualified applicant even though it appears that there are other competent
persons having been right to the administration where such persons fail to appear when notified and
claim the issuance of letters to themselves
APPOINTMENT OF SPECIAL ADMINISTRATOR

> When there is a delay in granting letters testamentary or of administration by any cause including an
appeal from the allowance or disallowance of a will, the court may appoint a special administrator to
take possession and charge of the estate of the deceased until the questions causing the delay are
decided and executors or administrators appointed

FILING OF LETTERS OF ADMINISTRATION AND WILL

> Before the executor or administrator of the estate of the deceased owner of registered land may deal
with the same, he shall file with the office of the RD a certified copy of his letters of administration and if
there is a will, a certified copy thereof and the order allowing the same, together with the letters
testamentary or of administration with the will annexed, as the case may be, such shall produce the
duplicate certificate of title, and thereupon the

RD shall enter upon the certificate a memorandum thereof, making reference to the letters and/or will
by their file number, and the date of filing the same

EXTRAJUDICIAL SETTLEMENT OF ESTATE BY AGREEMENT OF THE PARTIES

> If the decedent left no will and no debts and the heirs are all of age, or the minors are represented by
their judicial or legal representatives duly authorized for the purpose, the parties may, without securing
letters of administration, divide the estate among themselves as they see fit by means of a public
instrument filed in the office of the Register of Deeds and should they disagree, they may do so in an
ordinary action of partition

> If there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed in
the office of the RD

> The parties to an extrajudicial settlement, whether by public instrument or by stipulation in a pending
action for partition, or the sole heir who adjudicates the entire estate to himself by means of an affidavit
shall file, simultaneously with and as a condition precedent to the filing of the public instrument, or

stipulation in the action for partition, or of the affidavit in the office of the RD, a bond with the said RD,
in an amount equivalent to the value of the personal property involved as certified to under oath by the
parties concerned and conditioned upon the payment of any just claim that may be filed

Section 86. Extrajudicial settlement of estate. When a deed of extrajudicial settlement has been duly
registered, the Register of Deeds shall annotate on the proper title the two-year lien mentioned in
Section 4 of Rule 74 of the Rules of Court. Upon the expiration of the two-year period and presentation
of a verified petition by the registered heirs, devisees or legatees or any other party in interest that no
claim or claims of any creditor, heir or other person exist, the Register of Deeds shall cancel the two-year
lien noted on the title without the necessity of a court order. The verified petition shall be entered in the
Primary Entry Book and a memorandum thereof made on the title.

No deed of extrajudicial settlement or affidavit of adjudication shall be registered unless the fact of
extrajudicial settlement or adjudication is published once a week for three consecutive weeks in a
newspaper of general circulation in the province and proof thereof is filed with the Register of Deeds.
The proof may consist of the certification of the publisher, printer, his foreman or principal clerk, or of
the editor, business or advertising manager of the newspaper concerned, or a copy of each week's issue
of the newspaper wherein the publication appeared.

EMINENT DOMAIN, MEANING

> Ultimate right of the sovereign power to appropriate any property within its territorial sovereignty for
a public purpose

> Manifest in the nature of expropriation proceedings

> Expropriation proceedings are not adversarial in the conventional sense for the condemning authority
isn’t required to assert any conflicting interest in the property

> Thus, by filing the action, the condemnor in effect merely serves notice that it is taking title and
possession of the property, and the defendant asserts title or interest in the property, not to prove a
right of possession, but to prove a right to compensation for the taking

EXPROPRIATED PRIVATE LAND BECOMES PROPERTY OF PUBLIC DOMAIN; REGISTRATION

> Private lands taken by the government for public use under its own power of eminent domain become
unquestionably part of the public domain

> The Register of Deeds is authorized to issue in the name of the national government a new certificate
of title covering such expropriated lands

> Consequently, lands registered under Act 498 and PD1529 are not exclusively private or patrimonial
lands. Lands of the public domain may also be registered pursuant to existing laws
RECORDING OF JUDGMENT

> The judgment entered in expropriation proceedings shall state definitely, by an adequate description,
the particular property or interest therein expropriated, and the nature of the public use or purpose for
which it is expropriated

> When real estate is expropriated, a certified copy of such judgment shall be recorded in the RD of the
place in which the property is situated, and its effect shall be to vest in the plaintiff the title to the real
estate as described for such public use or purpose

Section 85. Land taken by eminent domain. Whenever any registered land, or interest therein, is
expropriated or taken by eminent domain, the National Government, province, city, municipality, or any
other agency or instrumentality exercising such right shall file for registration in the proper Registry a

certified copy of the judgment which shall state definitely, by an adequate description, the particular
property or interest expropriated, the number of the certificate of title, and the nature of the public use.
A memorandum of the right or interest taken shall be made on each certificate of title by the Register of
Deeds, and where the fee simple title is taken, a new certificate shall be issued in favor of the National
Government, province, city, municipality, or any other agency or instrumentality exercising such right for
the land so taken. The legal expenses incident to the memorandum of registration or issuances incident
to the memorandum of registration or issuance of a new certificate shall be for the account of the
authority taking the land or interest therein.

PARTITION OF LAND SUBJECT OF MORTGAGE

> When a certified copy of the final judgment or decree of partition is presented for registration and it
appears that a mortgage or lease affecting a specific portion or an undivided share of the property had
been previously registered, the RD shall carry over and annotate such encumbrance on the certificate of
title that may be issued, with a description of the land set-off in severalty on which such mortgage or
lease remains in force

Section 82. Registration of prior registered mortgaged or lease on partitioned property. If a certified copy
of a final judgment or decree of partition is presented and it appears that a mortgage or lease affecting a
specific portion or an undivided share of the premises had previously been registered, the Register of
Deeds shall carry over such encumbrance on the certificate of title that may be issued.

PARTITION, GENERALLY
> Partition is the separation, division, and assignment of a thing held in common among those to whom
it may belong

> Every act which is intended to put an end to an indivision among co-heirs and legatees or devisees is
deemed to be a partition, although it should purport to be a sale, exchange, a compromise or any other
transaction

> The titles of acquisition or ownership of each property shall be delivered to the co-heir to whom said
property has been adjudicated

> When the title comprises of two or more pieces of land which has been assigned to two or more co-
heirs, or when it covers one piece of land which has been divided between two or more coheirs, the title
shall be delivered to the one having the largest interest, and authentic copies of the title shall be
furnished to the other co-heirs at the expense of the estate. If the interest of each co-heir should be the
same, the oldest shall have the title.

> In an action for partition, there should be simultaneous presentment of two issues—

o There is the issue of whether the plaintiff is indeed a co-owner of the property sought to be
partitioned

o Assuming that the plaintiff successfully hurdles the first issue, there is the secondary issue of how the
property is to be divided between the plaintiff and the defendants.

JUDICIAL PARTITION

> An action for partition for real property is a judicial controversy between persons who being co-owners
seek to secure division or partition among them of the common property, giving to each one the part
corresponding to him

> A person having the right to compel the partition of real estate may do so by setting forth in his
complaint the nature and extent of his title and an adequate description of the real estate of which
partition is demanded and joining as defendants all other persons interested in the property

> If the court after trial finds that the plaintiff has a right thereto, it shall order the partition of the real
estate among all the parties in interest.

> Thereupon, the parties may, if they are able to agree, make the partition among themselves by proper
instruments of conveyance, and the court shall confirm the partition so agreed by all of the parties, and
such partition, together with the orde3r of the court confirming the same, shall be recorded in the RD of
the place in which the property is situated
> If actual partition is made, the judgment shall state definitely by metes and bounds and adequate
description, the particular portion of the real assigned to each party, and the effect of the judgment shall
be to vest in each party and the severalty the portion of the real estate assigned to him

EXTRAJUDICIAL PARTITION

> The parties may without having letters of authorization, divide the estate among themselves as they
see fit by means of a public instrument filed in the office of the RD and should they disagree, they may
do so in an ordinary action for partition

> If there be only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed
with the office of the Register of Deeds

> Filing of a bond is a condition precedent to the filing of the public instrument

ORAL PARTITION

> This practice has been found to be not only convenient and inexpensive, but even advisable, and is
accepted by people and we find no good reason for disturbing said good practice

> Now, when valuable properties especially those covered by certificates of title, perhaps strict
compliance with the law may be advisable even necessary

STATUTE OF FRAUDS INAPPLICABLE

> Partition among heirs or renunciation of an inheritance by any of them is not covered by the Statute of
Frauds

EXCEPTION THE GENERAL RULE OF INPRESCRIPTIBILITY OF AN ACTION FOR PARTITION

> Imprescriptibility cannot be invoked when one of the co-owners of a property has possessed the
property as exclusive owner and for a period sufficient to acquire it by prescription

STAGES IN PARTITION

> Determination of whether or not a co-ownership in fact exists and a partition is proper, that is, it is not
otherwise legally proscribed and may be made by voluntary agreement of all the parties interested in
the property
> Second stage is when the parties are unable to agree upon the partition ordered by the court. In that
event, the partition shall be effected for the parties by the court with the assistance of not more than 3
commissioners. The second stage may also deal with the rendition of the accounting itself and its
approval by the Court after the parties have been accorded the opportunity to be heard thereon, and
the award for the recovery by the parties entitled of their just shares in the rents and profits of the real
estate in question. Such an order is to be sure also final and appealable.

PROOF OF PARTITION

> Partition may be inferred from circumstances sufficiently strong to support the presumption

> Recitals in deeds, possession and occupation of the land, improvements made thereon for a long series
of years, and acquiescence of 60 years, furnish sufficient evidence that there was an actual partition of
land either by deed or by proceedings in the probate court, which has been lost and not recorded.

> And where a tract of land has long been known and called by the name of one of the tenants in
common, and there is no evidence of any subsequent claim of tenancy in common, it may be fairly
inferred that there has been a partition and that such lot was set-off to him whose name it bears

FINALITY OF JUDGMENT; EXECUTION

> Judgment ordering partition with damages is final and duly appeallable, notwithstanding the fact that
further proceedings will still have to take place in the trial court.

> Execution thereof becomes a matter of right on the part of the plaintiffs and is a mandatory and
ministerial duty on the part of the court

> Once a judgment becomes final and executory, the prevailing party can have it executed as a matter of
right, and the judgment debtor need not be given advance notice of the application for execution nor be
afforded prior hearings thereon

> Failure to serve a copy for the motion for execution is not a fatal defect. In fact, there is no necessity
for such service.

PURPOSE OF REGISTRATION

> Notify and protect the interests of strangers to a given transaction, who may be ignorant thereof, but
the nonregistration of the deed evidencing such transaction doesn’t relieve the parties thereto of their
obligations thereunder.
> As originally conceived, registration is merely a species of notice. The act of registering a document is
never necessary in order to give it legal effect as between the parties.

> Requirements for the recording of an instruments are designed to prevent frauds and to permit and
require the public to act with the presumption that recorded instruments exist and are genuine

Section 81. Judgment of partition. In proceedings for partition of registered land, after the entry of the
final judgment of partition, a copy of such final judgment, certified by the clerk of the court rendering
the same, shall be filed and registered; thereupon, if the land is set of to the owners in severalty, each
owner shall be entitled to have his certificate entered showing the share set off to him in severalty, and
to receive an owner's duplicate thereof. If the land is ordered by the court to be sold, the purchaser or
his assigns shall be entitled to certificate of title entered in his or their favor upon presenting a certified
copy of the judgment confirming the sale.

In case the land is ordered by the court to be assigned to one of the parties upon payment to the others
of the sum ordered by the court, the party to whom the land is thus assigned shall be entitled to have a
certificate of title entered in his favor upon presenting a certified copy of the judgment: Provided,
however, that any new certificate entered in pursuance of partition proceedings, whether by way of set-
off or of assignment or of sale, shall contain a reference memorandum to the final judgment of partition,
and shall be conclusive as to the title to the same extent and against the same persons as such judgment
is made conclusive by the laws applicable thereto: and provided, further, that any person holding such
certificate of title or a transfer thereof shall have the right to petition the court at any time to cancel the
memorandum relating to such judgment or order and the court, after notice and hearing, may grant the
petition. Such certificate shall thereafter be conclusive in the same manner and to the same extent as
other certificates of title.

REGISTRATION OF JUDGMENTS; ORDERS; PARTITIONS

Section 78. Judgment for Plaintiff. Whenever in any action to recover possession or ownership of real
estate or any interest therein affecting registered land judgment is entered for the plaintiff, such
judgment shall be entitled to registration on presentation of a certificate of the entry thereof from the
clerk of court where the action is pending to the Register of Deeds for the province or city where the
land lies, who shall enter a memorandum upon the certificate of title of the land to which such judgment
relates. If the judgment does not apply to all the land described in the certificate of title, the certificate
of the clerk of the court where the action is pending and the memorandum entered by the Register of
Deeds shall contain a description of the land affected by the judgment.

Section 79. Judgment adjudicating ownership. When in any action to recover the ownership of real
estate or an interest therein execution has been issued in favor of the plaintiff, the latter shall be entitled
to the entry of a new certificate of title and to the cancellation of the original certificate and owner's
duplicate of the former registered owner. If the registered owner neglects or refuses within a reasonable
time after request of the plaintiff to produce his duplicate certificate in order that the same may be
canceled, the court shall, on application and after notice, enter an order to the owner to produce his
certificate at the time and place designated, and may enforce the order by suitable process.

Section 80. Execution of deed by virtue of judgment. Every court rendering judgment in favor of the
plaintiff affecting registered land shall, upon petition of said plaintiff, order and parties before it to
execute for registration any deed or instrument necessary to give effect to the judgment, and shall
require the registered owner to deliver his duplicate certificate to the plaintiff or to the Register of Deeds
to be canceled or to have a memorandum annotated upon it. In case the person required to execute any
deed or other instrument necessary to give effect to the judgment is absent from the Philippines, or is a
minor, or insane, or for any reason not amenable to the process of the court rendering the judgment,
said court may appoint a suitable person as trustee to execute such instrument which, when executed,
shall be entitled to registration.

REGISTRATION OF JUDGMENT- Recovery of Possession or Ownership

> A judgment for the plaintiff in an action for the recovery of possession or ownership affecting
registered land shall be entitled to registration upon presentation of a certificate of entry from the clerk
of court to the RD who shall enter a memorandum upon the certificate of title covering the land subject
of the action> If only a portion of the land described in the certificate is affected by the judgment, the
certificate of the clerk of court shall contain a description of the portion involved

> Registration is important to apprise third persons of the status of the land affected by the judgment

REGISTRATION OF JUDGMENT ADJUDICATING OWNERSHIP

> When in an action for recovery of possession judgment has been rendered in favor of the plaintiff, the
judgment shall likewise be registered and the adjudicatee shall be entitled to the issuance of a new
certificate of title upon cancellation of the title of the preceding owner

EXECUTION OF DEED PURSUANT TO A JUDGMENT

> The court, in all cases where it renders judgment affecting registered property or any interest therein,
shall direct parties to execute the requisite deed or instrument as may be necessary to give effect to the
judgment of registration, and when required by the terms of the judgment, direct the registered owner
to surrender his owner’s duplicate certificate for cancellation or entry of the appropriate memorandum
thereon.