Case Digests

Land Title and Deeds

Director of Lands v. IAC [G.R. No. 73246. March 2, 1993.] Second Division, Nocon (J): 4 concur Facts: Land involved is an island known as Tambac Island in Lingayen Gulf. Situated in the Municipality of Bani, Pangasinan, the area consists of 187,288 sq. m., more or less. The initial application for registration was filed for Pacific Farms, Inc. under the provisions of the Land Registration Act, Act 496, as amended. The Republic of the Philippines, thru the Director of Lands opposed the application alleging that the applicant, Pacific Farms, Inc. does not possess a fee simple title to the land nor did its predecessors possess the land for at least 30 years immediately preceding the filing of application. The opposition likewise specifically alleged that the applicant is a private corporation disqualified under the 1973 Constitution from acquiring alienable lands of the public domain citing Section 11, Article 14. The Director of Forest Development also entered its opposition alleging that the land is within the unclassified public land and, hence, inalienable. Other private parties also filed their oppositions, but were subsequently withdrawn. In an amended application, Pacific Farms, Inc. filed a manifestationmotion to change the applicant from Pacific Farms, Inc. to J. Antonio Araneta. Despite the supposed amendment, there was no republication. On 4 October 1979, the trial court rendered a decision adjudicating the subject property to J. Antonio Araneta. On appeal to the then Intermediate Appellate Court, the decision of the lower court was affirmed on 12 December 1985. Hence, the petition for review. The Supreme Court granted the petition, and reversed the decisions of the courts a quo. 1. Submission of tracing cloth mandatory in registration; Failure to submit original tracing cloth as evidence fatal In Director of Lands v. The Honorable Intermediate Appellate Court and Lino Anit, it was ruled that the submission of the tracing cloth plan is a mandatory requirement for registration. In Director of Lands v. Reyes, on the other hand, it was held that failure to submit in evidence the original tracing cloth plan is fatal it being a statutory requirement of mandatory character. It is of no import that the Director of Lands failed to object to the presentation of the certified copy of the said plan. What is required is the original tracing cloth plan of the land applied for and objection to such requirement cannot be waived either expressly or impliedly. As held in Director of Lands v. Reyes, if the original tracing cloth plan was indeed with the Land Registration Commission, there is no reason why the applicant cannot easily retrieve the same and submit it in evidence, it being an essential requirement for registration. 2. Amendment of the name of applicant is an attempt to evade disqualification The amendment of the application from the name of Pacific Farms, Inc., as applicant, to the name of J. Antonio Araneta, was a mere attempt to evade disqualification. The Constitution, whether the 1973 or 1987, prohibits private corporations or associations from holding alienable lands of the public domain except by lease. Apparently realizing such prohibition, applicant amended its application to conform with the mandates of the law. 3. Requirement of republication due to amendments to the application is allowed by the courts upon just and reasonable terms; it is required if it is due to substantial change in the boundaries of the area. Amendments to the application may be due to change in parties or substantial change in the boundaries or increase in the area of the land applied for. As to amendments to the application due to change in parties, neither the Land Registration Act, as amended, nor PD 1529 (the Property Registration Decree_, requires republication and registration may be allowed by the court at any stage of the proceeding upon just and reasonable terms. On the other hand, republication is
Shdolipas/CCDC/2nd sem 12-13 Atty G. Felipe/Page 1

Case Digests

Land Title and Deeds

required if the amendment is due to substantial change in the boundaries or increase in the area of the land applied for. 4. PD 1529 applied properly in the present case There is no relevant dispute in the lower court's application of PD 1529, instead of Act 496, in adjudicating the land to the then applicant, assuming that the land involved is registrable. Both laws are existing and can stand together. PD 1529 was enacted to codify the various laws relative to registration of property, in order to facilitate effective implementation of said laws. 5. Classification of lands of the public domain: mineral. Forest and Disposable and alienable lands. Lands of the public domain are classified under three main categories, namely: Mineral, Forest and Disposable or Alienable Lands. Under the Commonwealth Constitution, only agricultural lands were allowed to be alienated. Their disposition was provided for under CA 141 (Secs. 6-7), which states that it is only the President, upon the recommendation of the proper department head, who has the authority to classify the lands of the public domain into alienable or disposable, timber and mineral lands. Mineral and Timber or forest lands are not subject to private ownership unless they are first reclassified as agricultural lands and so released for alienation. 6. Courts have no authority to classify unclassified land; Regalian Doctrine The courts cannot release the subject property from the unclassified category, which is beyond their competence and jurisdiction. The classification of public lands is an exclusive prerogative of the Executive Department of the Government and not of the Courts. In the absence of such classification, the land remains unclassified until released therefrom and rendered open to disposition. This is in consonance with the Regalian doctrine that all lands of the public domain belong to the State, and that the State is the source of any asserted right to ownership in land and charged with the conservation of such patrimony. Under the Regalian Doctrine, all lands not otherwise appearing to be clearly within private ownership are presumed to belong to the State. Hence, a positive act of the government is needed to declassify a forest land into alienable or disposable land for agricultural or other purposes. 7. Burden of proof in proving the land is alienable or disposable is on the person applying for registration The burden of proof in overcoming the presumption of state ownership of the lands of the public domain is on the person applying for registration that the land subject of the application is alienable or disposable. Unless the applicant succeeds in showing by convincing evidence that the property involved was acquired by him or his ancestors either by composition title from the Spanish Government or by possessory information title, or any other means for the proper acquisition of public lands, the property must be held to be part of the public domain. The applicant must present evidence and persuasive proof to substantiate his claim. 8. Tax declarations and receipts are not conclusive evidence of ownership Tax declarations and receipts are not conclusive evidence of ownership or of the right to possess land when not supported by evidence. The fact that the disputed property may have been declared for taxation purposes in the names of the applicants or of their

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 2

Case Digests

Land Title and Deeds

predecessors-in-interest way back in 1921 does not necessarily prove ownership. They are merely indicia of a claim of ownership. 9. State cannot be estopped by omission, mistake or error of its officials In Director of Lands v. CA, it was held that it is a well-settled rule that the State cannot be estopped by the omission, mistake or error of its officials or agents, if omission there was, in fact. Thus, the fact that BF Map LC 673 dated 1 March 1927, in that case, showing subject property to be within unclassified region was not presented in evidence will not operate against the State. Likewise, in the present case, the contention that the BFD, LC Map No. 681, certified on August 8, 1927 which was the basis of the report and recommendation of the Land Examiner, is too antiquated; that it cannot be conclusively relied upon and was not even presented in evidence, cannot be well taken. 10. Unclassified property; possession cannot ripen into private ownership Since the subject property is still unclassified, whatever possession the applicant may have had and however long, cannot ripen into private ownership. The conversion of subject property does not automatically render the property as alienable and disposable. 11. Government called upon to classify the land The Government should seriously consider the matter of the reclassification of the land in question. The attempt of people to have disposable lands they have been tilling for generations titled in their name should not only be viewed with understanding attitude, but as a matter of policy encouraged. DENR v YAP Land Classifications Boracay Cases Positive Act by the Government in Reclassifying Lands Facts: These are two consolidated cases. In G.R. No. 167707, Boracay Mayor Jose Yap et al filed for declaratory relief to have a judicial confirmation of imperfect title or survey of land for titling purposes for the land theyve been occupying in Boracay. Yap et al alleged that Proclamation No. 1801 and PTA Circular No. 3-82 raised doubts on their right to secure titles over their occupied lands. They declared that they themselves, or through their predecessorsin-interest, had been in open, continuous, exclusive, and notorious possession and occupation in Boracay since June 12, 1945, or earlier since time immemorial. They declared their lands for tax purposes and paid realty taxes on them. The Republic, through the Office of the Solicitor General (OSG), opposed the petition for declaratory relief. The OSG countered that Boracay Island was an unclassified land of the public domain. It formed part of the mass of lands classified as "public forest," which was not available for disposition pursuant to Section 3(a) of Presidential Decree (PD) No. 705 or the Revised Forestry Code. Since Boracay Island had not been classified as alienable and disposable, whatever possession they had cannot ripen into ownership. RTC Ruled in favor of Yap et al. The OSG appealed. During the pendency of G.R. No. 167707, PGMA issued Proclamation No. 1064 classifying Boracay Island into four hundred (400) hectares of reserved forest land (protection purposes) and six hundred twenty-eight and 96/100 (628.96) hectares of agricultural land (alienable and disposable). The Proclamation likewise provided for a fifteen-meter buffer zone on each side of the centerline of roads and trails, reserved for right-of-way and which shall form part of the area reserved for forest land protection purposes. This was on May 22, 2006 Subsequently, Dr. Orlando Sacay, and other Boracay landowners in Boracay filed with this Court an original petition for prohibition, mandamus, and nullification of Proclamation No. 1064. They allege that the Proclamation infringed on their "prior vested rights" over portions of Boracay. They have been in continued possession of their respective lots in Boracay since time

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 3

Case Digests

Land Title and Deeds

immemorial. They have also invested billions of pesos in developing their lands and building internationally renowned first class resorts on their lots. The OSG again opposed Sacays petition. The OSG argued that Sacay et al do not have a vested right over their occupied portions in the island. Boracay is an unclassified public forest land pursuant to Section 3(a) of PD No. 705. Being public forest, the claimed portions of the island are inalienable and cannot be the subject of judicial confirmation of imperfect title. It is only the executive department, not the courts, which has authority to reclassify lands of the public domain into alienable and disposable lands. There is a need for a positive government act in order to release the lots for disposition. ISSUES: Whether Proclamation No. 1801 and PTA Circular No. 3-82 pose any legal obstacle for respondents, and all those similarly situated, to acquire title to their occupied lands in Boracay Island. HELD: The SC ruled against Yap et al and Sacay et al. The Regalian Doctrine dictates that all lands of the public domain belong to the State, that the State is the source of any asserted right to ownership of land and charged with the conservation of such patrimony. All lands that have not been acquired from the government, either by purchase or by grant, belong to the State as part of the inalienable public domain. A positive act declaring land as alienable and disposable is required. In keeping with the presumption of State ownership, there must be a positive act of the government, such as an official proclamation, declassifying inalienable public land into disposable land for agricultural or other purposes. In the case at bar, no such proclamation, executive order, administrative action, report, statute, or certification was presented. The records are bereft of evidence showing that, prior to 2006, the portions of Boracay occupied by private claimants were subject of a government proclamation that the land is alienable and disposable. Absent such well-nigh incontrovertible evidence, the Court cannot accept the submission that lands occupied by private claimants were already open to disposition before 2006. Matters of land classification or reclassification cannot be assumed. Also, private claimants also contend that their continued possession of portions of Boracay Island for the requisite period of ten (10) years under Act No. 926 ipso facto converted the island into private ownership. Private claimants' continued possession under Act No. 926 does not create a presumption that the land is alienable. It is plain error for petitioners to argue that under the Philippine Bill of 1902 and Public Land Act No. 926, mere possession by private individuals of lands creates the legal presumption that the lands are alienable and disposable. Private claimants are not entitled to apply for judicial confirmation of imperfect title under CA No. 141. Neither do they have vested rights over the occupied lands under the said law. There are two requisites for judicial confirmation of imperfect or incomplete title under CA No. 141, namely: (1) open, continuous, exclusive, and notorious possession and occupation of the subject land by himself or through his predecessors-in-interest under a bona fide claim of ownership since time immemorial or from June 12, 1945; and (2) the classification of the land as alienable and disposable land of the public domain. The tax declarations in the name of private claimants are insufficient to prove the first element of possession. We note that the earliest of the tax declarations in the name of private claimants were issued in 1993. Being of recent dates, the tax declarations are not sufficient to convince this Court that the period of possession and occupation commenced on June 12, 1945. Yap et al and Sacay et al insist that they have a vested right in Boracay, having been in possession of the island for a long time. They have invested millions of pesos in developing the island into a tourist spot. They say their continued possession and investments give them a vested right which cannot be unilaterally rescinded by Proclamation No. 1064.
Shdolipas/CCDC/2nd sem 12-13 Atty G. Felipe/Page 4

Case Digests

Land Title and Deeds

The continued possession and considerable investment of private claimants do not automatically give them a vested right in Boracay. Nor do these give them a right to apply for a title to the land they are presently occupying. The SC is constitutionally bound to decide cases based on the evidence presented and the laws applicable. As the law and jurisprudence stand, private claimants are ineligible to apply for a judicial confirmation of title over their occupied portions in Boracay even with their continued possession and considerable investment in the island. Republic v. CA [G.R. No. L-61647. October 12, 1984.] First Division, Gutierrez Jr. (J): 5 concur Facts: Benjamin Tancinco, Azucena Tancinco Reyes, Maria Tancinco Imperial and Mario C. Tancinco are registered owners of a parcel of land covered by TCT T-89709 situated at Barrio Ubihan, Meycauayan, Bulacan bordering on the Meycauayan and Bocaue rivers. On 24 June 1973, the Tancincos filed an application for the registration of 3 lots adjacent to their fishpond property (Psu-131892: Lot 1, 33837 sq.m.; Lot 2, 5,453 sq.m.; Lot 3, 1985 sq. m.) On 5 April 1974, Assistant Provincial Fiscal Amando C. Vicente, in representation of the Bureau of Lands filed a written opposition to the application for registration. On 6 March 1975, the Tancincos filed a partial withdrawal of the application for registration with respect to Lot 3 of Plan Psu-131892 in line with the recommendation of the Commissioner appointed by the Court. On 7 March 1975, Lot 3 was ordered withdrawn from the application and trial proceeded only with respect to Lots 1 and 2 covered by Plan Psu-131892. On 26 June 1976, the lower court rendered a decision granting the application on the finding that the lands in question are accretions to the Tancincos' fishponds covered by TCT 89709. On 30 July 1976, the Republic appealed to the Court of Appeals. On 19 August 1982, the appellate court rendered a decision affirming in toto the decision of the lower cost; without costs. Hence, the petition for certiorari to set aside the decision of the CA. Issue: WON, the lands are accretions to the fishponds, hence registrable? Held: The Supreme Court granted the petition, reversed and set aside the decision appealed from, and ordered the private respondents to move back the dikes of their fishponds to their original location and return the disputed property to the river to which it belongs. 1. Power to review vested in the Court; Binding effect of the findings of facts by lower court not absolute. The rule that the findings of fact of the trial court and the Court of Appeals are binding upon this Court admits of certain exceptions. The Court retains the power to review and rectify the findings of fact of said courts when (1) the conclusion is a finding grounded entirely on speculations, surmises and conjectures; (2) when the inference made is manifestly mistaken, absurd, and impossible; (3) where there is grave abuse of discretion; (4) when the judgment is based on a misapprehension of facts; and (5) when the court, in making its findings, went beyond the issues of the case and the same are contrary to the admissions of both appellant and appellee (Carolina Industries Inc. v. CMS Stock Brokerage, Inc., 97 SCRA 734). 2. No accretion to speak of as the transfer of dikes is man-made and artificial; Article 457 NCC. There is no accretion to speak of under Article 457 of the New Civil Code because what actually happened is that the private respondents simply transferred their dikes further down the river bed of the Meycauayan Rivers, and thus, if there is any accretion to speak of, it is man-made and artificial and not the result of the gradual and imperceptible sedimentation by the waters of the river. Article 457 of the New Civil Code provides that to the owners of lands adjoining the banks of rivers

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 5

Case Digests

Land Title and Deeds

3.

4.

5.

6.

belong the accretion which they gradually receive from the effects of the current of the waters." Accretion, requisites; Article 457 requires the concurrence of three requisites before an accretion covered by this particular provision is said to have taken place. They are a. that the deposit be gradual and imperceptible; b. that it be made through the effects of the current of the water; and c. that the land where accretion takes place is adjacent to the banks of rivers. The requirement that the deposit should be due to the effect of the current of the river is indispensable. This excludes from Art. 457 of the New Civil Code all deposits caused by human intervention. Alluvion must be the exclusive work of nature. In the instant case, there is no evidence whatsoever to prove that the addition to the said property was made gradually through the effects of the current of the Meycauayan and Bocaue rivers; but there is evidence that the alleged alluvial deposits were artificial and man-made and not the exclusive result of the current of the Meycauayan and Bocaue rivers. The alleged alluvial deposits came into being not because of the sole effect of the current of the rivers but as a result of the transfer of the dike towards the river and encroaching upon it. Reason in giving riparian owner the right to any land or alluvion deposited by a river is to compensate him for the danger of loss that he suffers because of the location of his land: The reason behind the law giving the riparian owner the right to any land or alluvion deposited by a river is to compensate him for the danger of loss that he suffers because of the location of his land. If estates bordering on rivers are exposed to floods and other evils produced by the destructive force of the waters and if by virtue of lawful provisions, said estates are subject to incumbrances and various kinds of easements, it is proper that the risk or danger which may prejudice the owners thereof should be compensated by the right of accretion. (Cortes v. City of Manila, 10 Phil. 567). In the present case, the riparian owner does not acquire the additions to his land caused by special works expressly intended or designed to bring about accretion. When the private respondents transferred their dikes towards the river bed, the dikes were meant for reclamation purposes and not to protect their property from the destructive force of the waters of the river. Adjudication of land in question as private property is null and void The conclusion that can be made from said alleged accretion being declared for taxation purposes only in 1972 is that areas could not have been there in 1939. They existed only after the private respondents transferred their dikes towards the bed of the Meycauayan river in 1951. What private respondents claim as accretion is really an encroachment of a portion of the Meycauayan river by reclamation. Thus, the lower court cannot validly order the registration of Lots 1 & 2 in the names of the private respondents. These lots were portions of the bed of the Meycauayan river and are therefore classified as property of the public domain under Article 420 paragraph 1 and Article 502, paragraph 1 of the Civil Code of the Philippines. They are not open to registration under the Land Registration Act. The adjudication of the lands in question as private property in the names of the private respondents is null and void. Republic v. CA [G.R. No. L-43105. August 31, 1984.]; also Bautista v. CA [G.R. No. L-43190] Second Division, Cuevas (J): 4 concur, 1 on leave, 1 took no part.

Facts: A lot with an area of 17,311 sq.m. situated in Barrio Pinagbayanan, Pila, Laguna and 20 meters from the shore of Laguna de Bay; was purchased by Benedicto del Rio from Angel Pili on 19 April 1909. The Deed of Sale evidencing said purchase is duly recorded with the Registry of Deeds of Sta. Cruz, Laguna. The land was declared for tax purposes beginning the year 1918, and the realty taxes thereon had been paid since 1948. When Benedicto del Rio died
Shdolipas/CCDC/2nd sem 12-13 Atty G. Felipe/Page 6

Case Digests

Land Title and Deeds

in 1957, his heirs extrajudicially partitioned his estate and the subject parcel passed on to his son, Santos del Rio, as the latter's share in the inheritance. Santos del Rio filed his application for registration of said parcel on 9 May 1966. The application was opposed by the Director of Lands and by private oppositors, petitioners in G.R. No. L-43190. Sometime before 1966, private oppositors obtained permission from Santos del Rio to construct duck houses on the land in question. Although there was no definite commitment as to rentals, some of them had made voluntary payments to private respondent. In violation of the original agreement, private oppositors constructed residential houses on the land which prompted private respondent to file an ejectment suit against the former in 1966. Meanwhile, during the latter part of 1965 and in 1966, private oppositors had simultaneously filed their respective sales applications with the Bureau of Lands, and in 1966, they opposed Santos del Rio's application for registration. The CFI Laguna dismissed the application for registration. Applicant appealed and obtained a favorable judgment from the Court of Appeals, setting aside that of the trial court. The Director of Lands and the private oppositors filed their respective Petitions for Review of said decision. Held: The Supreme Court affirmed the judgment affirmed from, and ordered the registration of the land described in the application in favor of Santos del Rio, applicant private respondent; with costs against private petitioners. 1. Classification of property as either of public dominion or of private ownership; Public lands / public dominion Property, which includes parcels of land found in Philippine territory, is either of public dominion or of private ownership. Public lands, or those of public dominion, have been described as those which, under existing legislation are not the subject of private ownership, and are reserved for public purposes. The New Civil Code enumerates properties of public dominion in Articles 420 and 502 thereof. Article 402 includes those intended for public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character; and those which belong to the State without being for public use, and are intended for some public service or for the development of the national wealth" as property belonging to public dominion. Article 502 adds "rivers and their natural beds; continuous or intermittent waters of springs and brooks running in their natural beds and the beds themselves; waters rising continuously or intermittently on lands of public dominion; and lakes and lagoons formed by Nature on public lands and their beds; to the enumeration. 2. Extent of a lake bed The extent of a lake bed is defined in Artcile 74 of the Law of Waters of 1866, as the natural bed or basin of lakes, ponds, or pools, is the ground covered by their waters when at their highest ordinary depth." 3. Highest Ordinary Depth in a lake; Determinant is rainfall and not gravitational pull (tides) The phrase "highest ordinary depth" has been interpreted in the case of Government. vs. Colegio de San Jose to be the highest depth of the waters of Laguna de Bay during the dry season, such depth being the "regular, common, natural, which occurs always or most of the time during the year; or thus rain "falling directly on or flowing into Laguna de Bay from different sources." While the waters of a lake are also subject to the same gravitational forces that cause the formation of tides in seas and oceans, this phenomenon is not a regular daily occurrence in the case of lakes. The alternation of high tides and low tides, which is an ordinary occurrence, could hardly account for the rise in the water level of the Laguna de Bay as observed 4-5 months a year during the rainy season; rather, it is the rains which bring about the inundation of a portion of the land in question. Since the rise in the water level which causes the submersion of the
Shdolipas/CCDC/2nd sem 12-13 Atty G. Felipe/Page 7

Case Digests

Land Title and Deeds

4.

5.

6.

7.

8.

9.

land occurs during a shorter period than the level of the water at which the land is completely dry, the latter should be considered as the "highest ordinary depth" of Laguna de Bay. The land sought to be registered, therefore, is not part of the bed or basin of Laguna de Bay. Foreshore land defined; Definition does not apply to land adjacent to lake Foreshore land is that part of (the land) which is between high and low water and left dry by the flux and reflux of the tides; or the strip of land that lies between the high and low water marks and that is alternately wet and dry according to the flow of the tide. In the present case, since the inundation of a portion of the land near the lake is not due to flux and reflux of tides, it thus cannot be considered a foreshore land within the meaning cited by the Director of Lands. Purpose of land registration under Torrens System The purpose of land registration under the Torrens System is not the acquisition of lands but only the registration of title which applicant already possesses over the land. Registration under the Torrens Law was never intended as a means of acquiring ownership. Applicant in this case asserts ownership over the parcel of land he seeks to register and traces the roots of his title to a public instrument of sale in favor of his father from whom he inherited said land. Tax declaration strong evidence of ownership acquired by prescription; also Open, continuous, public, peaceful, exclusive and adverse possession of the land Applicant presents tax declarations covering the land since 1918 and also tax receipts dating back to 1948. While it is true that by themselves tax receipts and declarations of ownership for taxation purposes are not incontrovertible evidence of ownership, they become strong evidence of ownership acquired by prescription when accompanied by proof of actual possession of the property. Further, applicant by himself and through his father before him, has been in open, continuous, public, peaceful, exclusive and adverse possession of the disputed land for more than 30 years, counted from 19 April 1909, when the land was acquired from a third person by purchase. Since applicant has possessed the subject parcel in the concept of owner with just title and in good faith, his possession need only last for ten years in order for ordinary acquisitive prescription to set in. Applicant has more than satisfied this legal requirement. Judicial confirmation of imperfect title Even if the land sought to be registered is public land, applicant would be entitled to a judicial confirmation of his imperfect title, since he has also satisfied the requirements of the Public Land Act (CA 141 as amended by RA 1942). Section 48 of the Act enumerates as among the persons entitled to judicial confirmation of imperfect title, such as those who, by themselves or through their predecessors-in-interest, have been in the open, continuous, exclusive, and notorious possession and occupation of agricultural lands of the public domain, under bona fide claim of ownership, for at least thirty years immediately preceding the filing of the application for confirmation of title." Reclamation requires proper permission; reclaimed land does not automatically belong to party reclaiming the same Private persons cannot, by themselves reclaim land from water bodies belonging to the public domain without proper permission from government authorities. And even if such reclamation had been authorized, the reclaimed land does not automatically belong to the party reclaiming the same as they may still be subject to the terms of the authority earlier granted. In the present case, private oppositors-petitioners failed to show proper authority for the alleged reclamation, therefore, their claimed title to the litigated parcel must fall. Tolerance of possession cannot ripen into ownership As the private oppositors-petitioners entered into possession of the land with the permission of, and as tenants of, the applicant del Rio; the fact that some of them at one time or another did not pay rent. Their use of the land and their non-payment of rents thereon were merely tolerated by applicant and these could not have affected the character of the latter's possession which has already ripened into ownership at the
Atty G. Felipe/Page 8

Shdolipas/CCDC/2nd sem 12-13

Case Digests

Land Title and Deeds

time of the filing of this application for registration. Only possession acquired and enjoyed in the concept of owner can serve as the root of a title acquired by prescription. Republic v CA
Republic v CA 432 SCRA 593 Facts: The appellant Republic implores before the court to set aside the decision of the CA declaring the ownership of a parcel of land in favor of Democrito Plazas. Plazas filed a petition for registration and confirmation of his title over the land in dispute contending that he is the owner thereof by virtue of an absolute deed of sale and that his predecessor-in-interests have been in open, continuous, exclusive and notorious possession and occupation of the same. The Republic filed in opposition to said motion assailing on the contrary while invoking that the land belongs to a public dominion and not subject for private appropriation. The land is subject to a request by the DENR for a Presidential Proclamation to reserve the land for Slum Improvement and Resettlement Site of the NHA. Issue: Whether or not the appellee has the right to register the land title under his name. Ruling: The court ruled that there is clear and convincing evidence that the appellee has established possession over the land for 30 years. His bona fide claim of ownership is evidenced by the tax payment receipts, deed of sale, tax declaration, improvements made on the land and developing it into a ricefield. The issuance of Proclamation No. 679 that the land is withdrawn from alienable portion of a public domain pursuant to the slum improvement and resettlement project of the NHA does not prohibit the registration of title by a person who claims and able to prove ownership thereof. Registration does not vest title but only serve merely as evidence of such title. Paragraph 10 of LOI No. 555 provides that any privately owned land declared to be included in the NHA project may be acquired by the State through expropriation. Proclamation No. 679 does not provide a valid justification to deny an individual for a land title registration.

Republic v. LAO 405 SCRA 291 Facts: Lao filed before the RTC of Tagaytay City application for registration of a parcel of land. She allegedly acquired the land by purchase from the siblings Raymundo Noguera and Ma. Victoria Valenzuela who inherited it from Generosa Medina. The latter, in turn, inherited the land from her father, Jose Medina, who acquired the same from Edilberto Perido by transfer. She prayed that the land be registered in her name under Commonwealth Act 141 (Public Land Act) based on her and her predecessor-in-interests open, public, actual, continuous, exclusive, notorious and adverse possession and occupancy under bona fide claim of ownership for more than thirty (30) years. She presented witnesses and evidence constituting of deed of sale, survey plan, the technical description of property and tax declarations in her and her predecessors names. The court approved the application. The petitioner represented by the Solicitor General appealed the decision before the CA which reaffirmed the lower court decision, hence this petition for review before the SC. The petitioner contends that there is no sufficient evidence to warrant the issuance of the title to the respondent as she fails to comply with the required periods and acts of possession mandated by law and her failure to prove that the land is alienable and disposable land of the public domain. Issue: Whether or not the respondent sufficiently provided evidence that she meets the qualifications required by law on the manner of possession (continuous, adverse, notorious, etc..) and the period of time (30 years) necessary to have a bonafide claim of ownership under C.A. 141?

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 9

Case Digests

Land Title and Deeds

Whether or not respondent was able to show that the land subject of her application was disposable and alienable land of the public domain? Ruling: The SC granted the petition and denied the application of Lao. The court held that Commonwealth Act 141 requires that before one can register his title over a parcel of land, the applicant must show that he, by himself or through his predecessors-in-interest, has been in open, continuous, exclusive and notorious possession and occupation of the subject land under a bona fide claim of ownership since June 12, 1945 or earlier; in adverse possession over the land for at least 30 years and the land subject of the application is alienable and disposable land of the public domain. Petitioner was right to contend that the respondent did not prove by incontrovertible evidence that she possessed the property in the manner and time required by law. She did not provide the exact period when her predecessors-in-interest started occupying the property. No extrajudicial settlement of the property from its previous owners was shown and she did not show any relationship between the parties where she obtained her deed of sale. She further did not present any certification from appropriate government agency to show that the property is re-classified as disposable and alienable land of the public domain. It is incumbent for an applicant of a land registration to provide these incontrovertible evidences to support her claim for her application. In the absence of these evidences, her application shall fail.

National Grains Authority vs IAC 157 SCRA 380 "The real purpose of the Torrens System is to quiet title to land and to stop forever any question as to its legality. "Once a title is registered, the owner may rest secure, without the necessity of waiting in the portals of the court, or sitting avoid the possibility of losing his land." "An indirect or collateral attack on a Torrens Title is not allowed. The only exception to this rule is where a person obtains a certificate of title to a land belonging to another and he has full knowledge of the rights of the true owner.

Facts: On December 2,1971, the sps Paulino Vivas and Engracia Lizards, sold a land to sps Melencio Magcamit and Nena Cosico, and Amelita Magcamit (herein private respondents) as evidenced by "Kasulatan Ng Bilihang Mabiling Muli." This sale with right to repurchase was recorded in the Office of the Register of Deeds of Laguna on December 6,1971 under Act No. 3344. On January 31,1972 the sale was made absolute by the spouses Vivas and Lizardo in favor of the private respondents for the sum of P90,000.00; P50,000.00 of which was paid upon the execution of the instrument, entitled "Kasulatan Ng Bilihan Tuluyan," after being credited with the P30,000.00 consideration of the "Kasulatan Ng Mabibiling Muli," and the balance of P40,000.00 was to be paid the moment that the certificate of title is issued. From the execution of said Kasulatan, private respondent have remained in peaceful, adverse and open possession of subject property. On February 26, 1975, sps Vivas and Lizardo without the knowledge of the private respondents executed a Special Power of Attorney in favor of Irenea Ramirez authorizing the latter to mortgage the property with the petitioner, National Grains Authority. On May 2, 1974, the counsel for the petitioner wrote the Provincial Sheriff in Sta. Cruz, Laguna, requesting for the extrajudicial foreclosure of the mortgage executed by Irenea Ramirez

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 10

Case Digests

Land Title and Deeds

on May 18, 1975, covering, among others, the property involved in this case covered by OCT No. T-1728, for unpaid indebtedness in the amount of P63,948.80 in favor of the petitioner. On May 31, 1974, the Provincial Sheriff caused the issuance of the notice of sale of the property in question, scheduling the public auction sale on June 28, 1974. The petitioner was the highest and successful bidder so that a Certificate of Sale was issued in its favor on the same date by the Provincial Sheriff. On July 10, 1974, the petitioner in its capacity as attorney-in-fact of the mortgagor sold the subject real property in favor of itself. By virtue of the deed of absolute sale, TCT No. T75171 of the Register of Deeds for the Province of Laguna was issued in the name of the petitioner on July 16, 1974. It was only in July 1974, that private respondents learned that a title in the name of the Vivas spouses had been issued covering the property in question and that the same property had been mortgaged in favor of the petitioner. Private respondent Nena Magcamit offered to pay the petitioner NGA the amount of P40,000.00 which is the balance of the amount due the Vivas spouses under the terms of the absolute deed of sale but the petitioner refused to accept the payment. On July 31, 1974, counsel for private respondents made a formal demand on the spouses Vivas and Lizardo to comply with their obligation under the terms of the absolute deed of sale; and soon after reiterated to the NGA, the offer to pay the balance of P40,000.00 due under the absolute deed of sale. On August 13, 1974 petitioner in its reply informed counsel of private respondents that petitioner is now the owner of the property in question and has no intention of disposing of the same. The private respondents, who as previously stated, are in possession of subject property were asked by petitioner to vacate it but the former refused. Petitioner filed a suit for ejectment against private respondents in the Municipal Court of Victoria, Laguna, but the case was dismissed. On June 4, 1975, private respondents filed a complaint before the then Court of First Instance of Laguna and San Pablo City, Branch III, San Pablo City, against the petitioner and the spouses Vivas and Lizardo, praying, among others, that they be declared the owners of the property in question and entitled to continue in possession of the same, and if the petitioner is declared the owner of the said property, then, to order it to reconvey or transfer the ownership to them under such terms and conditions as the court may find just, fair and equitable under the premises. (Record on Appeal, pp. 2-11). The trial court rendered its decision in favor of the petitioner. The IAC reversed and set aside the decision of the trial court. Hence, this petition. Issue: whether or not violation of the terms of the agreement between the spouses Vivas and Lizardo, the sellers, and private respondents, the buyers, to deliver the certificate of title to the latter, upon its issuance, constitutes a breach of trust sufficient to defeat the title and right acquired by petitioner NGA, an innocent purchaser for value. Ruling: The SC REVERSED and SET ASIDE the CAs ruling and the decision of the RTC was REINSTATED. 1. It is undisputed that: (1) there are two deeds of sale of the same land in favor of private respondents, namely: (a) the conditional sale with right to repurchase or the 'Kasulatan Ng Bilihang Mabibiling Muli" which was registered under Act 3344 and (b) the deed of absolute sale or "Kasulatan ng Bilihang Tuluyan" which was not registered; (2) the condition that the Certificate of Title will be delivered to the buyers upon its issuance and upon payment of the balance of P40,000.00 is contained in the deed of absolute sale; and (3) the land in question at the time of the execution of both sales was not yet covered by the Torrens System of registration. 2. It is axiomatic, that while the registration of the conditional sale with right of repurchase may be binding on third persons, it is by provision of law "understood to be without prejudice to third party who has better right". NGA, is a registered owner under the Torrens System and has obviously a better right than private respondents and that
Shdolipas/CCDC/2nd sem 12-13 Atty G. Felipe/Page 11

Case Digests

Land Title and Deeds

3.

4.

5.

6.

7.

8.

the deed of absolute sale with the suspensive condition is not registered and is necessarily binding only on the spouses Vivas and Lizardo and private respondents. The proceedings for the registration of title to land under the Torrens System is an action in rem not in personam, hence, personal notice to all claimants of the res is not necessary in order that the court may have jurisdiction to deal with and dispose of the res. Neither may lack of such personal notice vitiate or invalidate the decree or title issued in a registration proceeding, for the State, as sovereign over the land situated within it, may provide for the adjudication of title in a proceeding in rem or one in the nature of or akin a to proceeding in rem which shall be binding upon all persons, known or unknown It is thus evident that respondents' right over the property was barred by res judicata when the decree of registration was issued to spouses Vivas and Lizards. It does not matter that they may have had some right even the right of ownership, BEFORE the grant of the Torrens Title. Thus, under Section 44 of P.D. 1529, every registered owner receiving a certificate of title in pursuance of a decree of registration, and every subsequent purchaser of registered land taking a certificate of title for value and in good faith, shall hold the same free from all encumbrances except those noted on the certificate and any of the encumbrances which may be subsisting, and enumerated in the law. Under said provision, claims and liens of whatever character, except those mentioned by law as existing, against the land prior to the issuance of certificate of title, are cut off by such certificate if not noted thereon, and the certificate so issued binds the whole world, including the government Under said ruling, if the purchaser is the only party who appears in the deeds and the registration of titles in the property registry, no one except such purchaser may be deemed by law to be the owner of the properties in question (Ibid). Moreover, no title to registered land in derogation to that of the registered owner shall be acquired by prescription or adverse possession. "The real purpose of the Torrens System is to quiet title to land and to stop forever any question as to its legality. "Once a title is registered, the owner may rest secure, without the necessity of waiting in the portals of the court, or sitting on the "mirador su casato," avoid the possibility of losing his land." "An indirect or collateral attack on a Torrens Title is not allowed Exception to above rule: where a person obtains a certificate of title to a land belonging to another and he has full knowledge of the rights of the true owner. He is then considered as guilty of fraud and he may be compelled to transfer the land to the defrauded owner so long as the property has not passed to the hands of an innocent purchaser for value. It will be noted that the spouses Vivas and Lizardo never committed any fraud in procuring the registration of the property in question. On the contrary, their application for registration which resulted in the issuance of OCT No. 1728 was with complete knowledge and implied authority of private respondents who retained a portion of the consideration until the issuance to said spouses of a certificate of title applied for under the Torrens Act and the corresponding delivery of said title to them. The question therefore, is not about the validity of OCT No. 1728 but in the breach of contract between private respondents and the Vivas spouses. Petitioner NGA was never a privy to this transaction. Neither was it shown that it had any knowledge at the time of the execution of the mortgage, of the existence of the suspensive condition in the deed of absolute sale much less of its violation. Nothing appeared to excite suspicion. The Special Power of Attorney was regular on its face; the OCT was in the name of the mortgagor and the NGA was the highest bidder in the public auction. Unquestionably, therefore, the NGA is an innocent purchaser for value, first as an innocent mortgagee under Section 32 of P.D. 1529 and later as innocent purchaser for value in the public auction sale. All persons dealing with property covered by a torrens certificate of title are not required to go beyond what appears on the face of the title. When there is nothing on the certificate of title to indicate any cloud or vice in the ownership of the property, or any
Atty G. Felipe/Page 12

Shdolipas/CCDC/2nd sem 12-13

Case Digests

Land Title and Deeds

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 9. a bank is not required before accepting a mortgage to make an investigation of the title of the property being given as security and where innocent third persons like mortgagee relying on the certificate of title acquire rights over the property, their rights cannot be disregarded Under the circumstances, the Regional Trial Court could not have erred in ruling that plaintiffs (private respondents herein) complaint insofar as it prays that they be declared owners of the land in question can not prosper in view of the doctrine of indefeasibility of title under the Torrens System, because it is an established principle that a petition for review of the decree of registration will not prosper even if filed within one year from the entry of the decree if the title has passed into the hands of an innocent purchaser for value (Pres. Decree No. 1529, Sec. 32). The setting aside of the decree of registration issued in land registration proceedings is operative only between the parties to the fraud and the parties defrauded and their privies, but not against acquirers in good faith and for value and the successors in interest of the latter; as to them the decree shall remain in full force and effect forever (Domingo vs. The Mayon Realty Corp. et al., 102 Phil. 32 [19571). Assuming, therefore, that there was fraud committed by the sellers against the buyers in the instant case, petitioner NGA who was not privy therein cannot be made to suffer the consequences thereof As correctly declared by the trial court, the National Grains Authority is the lawful owner of the property in question by virtue of its indefeasible title.

Shdolipas/CCDC/2nd sem 12-13

Atty G. Felipe/Page 13