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LAND TITLES & DEEDS: SUBSEQUENT REGISTRATION

SUBSEQUENT REGISTRATION where incidental matters after original registration may be brought before the LAND REGISTRATION COURT by way of motion or petition filed by the registered owner or a party in interest. RULES AS TO NECESSITY AND EFFECTS OF REGISTRATION IN GENERAL: 1) EXECUTION OF DEEDS: Except a will that purports to convey or affect a registered land, the mere execution of deeds of sale, mortgages, leases or other voluntary documents serves only 2 purposes: a. as a CONTRACT between the parties thereto, and b. as EVIDENCE OF AUTHORITY to the Register of Deeds to register such documents 2) ACT OF REGISTERING INSTRUMENT: in the RD of the province/city where the land lies which is the operative act that conveys ownership or affects the land insofar as third persons are concerned 3) The act of registration creates a constructive notice to the whole world of such voluntary or involuntary instrument or court writ or process A. VOLUNTARY AND INVOLUNTARY DEALINGS SCOPE OF SUBSEQUENT DEALINGS WITH REGISTERED LAND: VOLUNTARY DEALINGS Refer to: - deeds, instruments or documents which are results of the free and voluntary acts of the parties thereto. INVOLUNTARY DEALINGS Refer to: 1. Such writ order or process issued by a court of record affecting registered land which by law should be registered to be effective, 2. Such instruments which are not the willful acts of the registered owner and which may EFFECTS OF REGISTRATION KINDS 1. sales 2. conveyances or transfer of ownership over titled property 3. mortgage 4. lease 5. pacto de retro sale 6. extra judicial settlement 7. free patent or homestead 8. powers of attorney 9. trust An innocent purchaser for value of registered land becomes the registered owner the moment he 1. presents and files a duly notarized and valid DEED OF SALE 2. the same is entered in the DAY BOOK, and at the same time-3. he surrenders or presents the OWNERS DUPLICATE COT covering the land sold.

have been executed even without his knowledge or against his consent. 1. attachment 2. mandamus 3. injunction 4. sale on execution of judgment or sale for taxes 5. adverse claims 6. notice of lis pendens 7. expropriation 8. forfeiture 9. auction sale on foreclosure of mortgage Entry thereof in the DAY BOOK of the RD is sufficient notice to all persons, even if the owners duplicate certificate of title is not presented to the RD.

CONCEPT

B. VOLUNTARY DEALINGS In voluntary sale of land, the registration of the instrument is the operative act that transmits or transfers the title. NOTE: physical delivery by vendor is not a legal requisite. Execution of public document is equivalent to delivery. GENERAL RULE 1: Where there is nothing on the COT to indicate any cloud or vice in the ownership of the property, or any encumbrance thereon, the purchaser is not required to explore further than what the Torrens title upon its face indicates in quest for any hidden defect or inchoate right that may subsequently defeat his right thereto. EXCEPTION: When the purchaser or mortgagee is a financing institution. GENERAL RULE 2: Every person dealing with registered land may safely rely on the correctness of the COT issued therefore and the law will in no way oblige him to go behind the certificate to determine the condition of the property. Even if a decree in a registration proceeding is infected with nullity, still, an innocent purchaser for value relying on a Torrens title issued in pursuance thereof is protected. EXCEPTION: Where there are circumstances which would put a party on guard and prompt him to investigate or inspect the property being sold to him, such as the presence of occupants/tenants thereon, it is, of course, expected from the purchaser of a valued piece of land to inquire first into the status or nature of possession of the occupants (i.e., whether or not the occupants possess the land en concepto de dueno, in concept of owner). KINDS OF VOLUNTARY DEALINGS: 1) Sales, conveyances, and transfers 2) Mortgages and Leases (SEPARATE NOTES) 3) Powers of Attorney and Trusts 1) SALES, CONVEYANCES AND TRANSFERS IF ENTIRE PROPERTY - the RD makes out in the registration book a new COT to the grantee, furnishing him an owners duplicate. Original is stamped cancelled. IF ONLY A PORTION - RD shall not enter any transfer certificate to grantee until a plan of such land showing subdivisions and descriptions is verified and approved.

Meanwhile, such deed may be annotated as memorandum upon grantors COT.

SALE UNDER PACTO DE RETRO a type of sale which transfers legal title to the vendee, but with an insertion of a stipulation for repurchase by the vendor in the contract of sale. This is in a nature of an option. GEN RULE: vendor a retro may file for registration. EXCEPTION: vendee a retro may file, should the period for redemption expire during pendency of registration proceedings and ownership to property is consolidated in vendee a retro. DOUBLE SALE a situation wherein the registered owner sells the same land to two different persons who are unaware of the flaw in the title. GEN RULE: one who registers first in good faith acquires better right ORDER OF PREFERENCE: a) to the person acquiring it who in good faith first recorded it in the Registry of Property b) in default thereof, to the person who in good faith was first in possession c) in default thereof, to the person who presents oldest title, provided there is good faith. 2) MORTGAGES AND LEASES (TO BE DISCUSSED IN SEPARATE NOTES) 3) POWERS OF ATTORNEY AND TRUSTS an instrument authorizing another person to act as an agent; a legal relationship concerning property which obliges the person holding it to deal with the property for the benefit of another. KINDS OF TRUST: a. EXPRESS TRUST if trust was created by the intention of the trustor/parties b. IMPLIED TRUST where the trust comes into existence by operation of law (may be proved by oral evidence) ELEMENTS TO ESTABLISH IN TRUST: a. b. c. competent trustor and trustee an ascertainable trust res sufficiently certain beneficiaries

SPECIAL POWER OF ATTORNEY this is necessary before an agent may enter into any contract by which ownership of an immovable is transmitted or acquired, or for purposes of lease. Trust must be in writing, otherwise sale is void. RULE FOR REGISTRATION: the trustee may file for registration, unless prohibited by the instrument creating the trust IF DEED IS FILED IN ORDER TO TRANSFER REGISTERED LAND IN TRUST: condition, limitation, or equitable interest in such land shall not be entered on certificate; only a memorandum thereof shall be entered by words in trust, or upon condition, or other apt words and a reference by number to the instrument creating/authorizing the same. IF TRUST CONTAINS EXPRESS POWER TO SELL/MORTGAGE/DEAL WITH LAND IN ANY MANNER: such power shall be stated in the COT by words, with power to sell or power to mortgage or other apt words. IF CLAIM ON LAND IS BASED ON IMPLIED/CONSTRUCTIVE TRUST: claimant shall file for registration with RD a sworn statement to that effect (with description of land, name of registered owner, and number of COT). Before registration, such claim cannot affect the title of purchaser for value in good faith C. INVOLUNTARY DEALINGS INVOLUNTARY DEALINGS AFFECTING REGISTERED LAND WHICH MUST BE REGISTERED: 1) Attachments 2) Sale on execution or for taxes or for assessment 3) Adverse claim 4) Notice of lis pendens 1) ATTACHMENTS the writ of attachment, when issued by the court at the instance of the plaintiff or any proper party, subjects the attached property of the adverse party as security for the satisfaction of any judgment that may be recovered. REGISTRATION: a. COPY OF WRIT + ORDER OF COURT: shall be filed and registered in the Registry of Deeds of the province/city where the property lies b. REGISTERED OWNERS DUPLICATE CERTIFICATE OF TILE: must be presented at the time of registration; if not, the RD

shall (within 36 hours) send notice by mail to Registered Owner so that a memorandum of the attachment or other lien may be made thereon; if the owner neglects or refuses to comply, RD will report to the Court which shall issue an order to produce COT. c. CERTIFICATE OF ENTRY OF ANY ORDER, DECISION OR JUDGMENT that affects the writ shall also be registered. EFFECT: a. attached properties cannot be interfered until sold to satisfy judgment, or discharged b. attached properties are in custodia legis, obtaining pendent lite a lien until the judgment 2) SALE ON EXECUTION/FOR TAXES/FOR ASSESSMENT any execution or copy of execution, any officers return, or any deed, demand, certificate, or affidavit, etc. must be recorded and filed with RD. WHEN SOLD: Purchaser may petition the court for the entry of a new COT to him. Before such entry, the registered owner may pursue all legal and equitable remedies to impeach/annul such proceeding. 3) ADVERSE CLAIMS a notice to third persons that someone is claiming an interest on the property or has a better right than the registered owner thereof, and that any transaction regarding the disputed land is subject to the outcome of the dispute. WHEN CLAIM/INTEREST IS ADVERSE: a. the claimants right/interest in registered land is adverse to the registered owner b. such right/interest arose subsequent to the date of original registration c. no other provision is made in the Decree for the registration of such right/claim. FORMAL REQUISITES FOR REGISTRATION: a. adverse claimant must state in the following in writing: 1. his alleged interest/right 2. how and under whom such interest/right is acquired 3. description of land 4. certificate of title number.

b.such statement must be signed and sworn to before a notary public (or other authorized officer) c. the claimant shall state his residence or place to which all notices may be served upon him. CAN BE REGISTERED AS ADVERSE CLAIIM a. voluntary instruments such as sale or lease CANT BE REGISTERED AS ADVERSE CLAIM a. money claims b. expectant hereditary rights arising from probate proceedings c. an interest on land based on a lawyers contingent fee.

g. any other proceeding of any kind in court directly affecting the title to the land or the use or occupation thereof or the building thereon WHEN NOTICE OF LP IS INAPPLICABLE: a. for recovery of money (or such other purely personal action) b. attachments c. proceedings on probate of wills d. administration of deceaseds estate e. levies on execution f. foreclosure CANCELLATION OF LP (BEFORE FINAL JUDGMENT): a. when it is shown that the notice is for the purpose of molesting the adverse party b. where the evidence so far presented by the plaintiff does not bear out the main allegations of the complaint c. when it is shown that it is not necessary to protect the right of the party who caused the registration thereof d. where the continuances of the trial are unnecessarily delaying the determination of the case to the prejudice of the defendant e. upon verified petition of the party who caused the registration thereof f. it is deemed cancelled after final judgment in favor of defendant, or other disposition of the action as to terminate all rights of the plaintiff to property involved D. MIRROR PRINCIPLE GENERAL RULE: all persons dealing with property covered by the Torrens certificate of title are not required to go beyond what appears on the face of the title. i.e., when there is nothing on the COT indicating any cloud or vice in the ownership of the property, or any encumbrance thereon, the purchaser is not required to explore further than what the Torrens Title upon its face indicates in quest for any hidden defect or inchoate rights that may subsequently defeat his right thereto.

CANCELLATION OF ADVERSE CLAIM: a. after the 30-day period of effectivity b. before 30 days, filing of sworn petition withdrawing adverse claim c. before 30 days, a party in interest files petition in RTC for cancellation NOTE: although an adverse claim could subsist concurrently with a subsequent annotation of a notice of lis pendens, the said claim may be validly cancelled after the registration of such notice, since the LP also serves the purpose of the adverse claim. 4) NOTICE OF LIS PENDENS a notice intended to constructively advise, or warn all people who deal with the property that they so deal with it at their own risk, and whatever rights they may acquire in the property in any voluntary transaction are subject to the results of the action, and may well be inferior and subordinate to those which may be finally determined and laid down therein. ACTIONS WHERE NOTICE OF LP IS PROPER: a. to recover possession of real estate b. to quiet title c. to remove clouds upon the title d. for partition e. to establish a right, an equitable estate, or interest, in a specific real property f. to enforce a lien, a charge, or any encumbrance against it

EXCEPTIONS FOR APPLICABILITY: 1) Purchaser in bad faith 2) Banks 3) Where a person buys land not from the registered owner but from one whose right to the land has been merely annotated on the COT 4) Purchaser of the land certificate of title that contains a notice of lis pendens 5) Sufficiently strong indications to impel closer inquiry into the location, boundaries and condition of the lot 6) Purchaser with full knowledge of flaws and defects in the title the presence of anything that excites or arouses suspicion should then prompt the vendee to look beyond the vendors certificate and investigate the title appearing on the face of that certificate. A vendee who does not do so cannot be denominated either an innocent purchaser for value or as a purchaser in good faith and hence, does not merit the protection of law. E. FORGED INSTRUMENTS GENERAL RULE: A forged or fraudulent deed is a nullity and conveys no title. EXCEPTION: There are instances when such a fraudulent document may become the root of a valid title. EX. where the COT was already transferred from the name of the true owner to the forger, and while it remained that way, the land was subsequently sold to an innocent purchaser. the above rule cannot be applied where the owner still holds a valid and existing certificate of title covering the same property because the law protects the lawful holder of a registered title over the transfer of a vendor, bereft of any transmissible right.

AYN RUTH NOTES

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