Lands Titles & Deeds June 19, 2010 HOUSE RULES -no excused absences -duty: to learn, to study,

to pray, to pass! -no going out from class -no talking -mentally honest (no cheating/ no coaching) First 3 Chapters- Lecture Starting Section 14 of P.D. #1529 recitation Next meeting: quiz Coverage: what has been taken up LAND TITTLES AND DEEDS The subject is about the control over land For a person to have exclusive enjoyment of property. However, a person cannot absolutely control a certain piece of land o Persons go to other places Thus, there is only temporary control because it is impossible to physically possess or control large tracts of land. If a person will not go away or will not go to some other places, no one will take his property (land). QUESTION: HOW CAN WE HE CONTROL HIS LAND? This question is answered by the development of land laws; private land owners can assert rights because of REGISTRATION (land titles or documents) HISTORY/ DEVELOPMENT Act # 496 Land Registration Act lasted for 75/77 years until repealed by P.D. No. 1529 which is the law now in force and in effect. Because we live in a society with divergent interests, there arise disputes QUESTIONS: o Who is the owner of the land? o Who has better right? o How can third persons be affected? o What kind of evidences are required to enforce ownership? These questions are answered in this class. Critical developments through the advancement of civilization developed consciousness of land ownership arise the necessity of protecting the rights of owner TORRENS SYSTEM OF LAND REGISTRATION Richard Robert Torrens Current system of land registration Private land ownership did not come from nowhere. There could be a source: who>/ from whom did you acquire your land? SOURCE: private land ownership must emanate from the STATE. The State is the source of land to the REGALIAN DOCTRINE. (Wikilaw: All lands of the public domain belong to the State, which is the source of any asserted right to ownership of land. All lands not otherwise appearing to be clearly within private ownership are presumed to belong to

the State. All lands not otherwise clearly appearing to be privately-owned are presumed to belong to the State) Secretary of DENR v. Mayor Jose Yap (2008) G.R. No. 167707 Oct. 8, 2008 Explained Regalian doctrine. This is about Boracay Island. Group of persons build houses/ buildings (of agricultural lands) The Government said that the Boracay Island is a forest and timberland and remained to be forest and timberland, so not agricultural land. SC: the lands are inalienable public land; until the government reclassified Boracay Island, it is still forest and timberland; thus, it cant be acquired by private persons. Basis: Regalian doctrine (all of public domains belong to the State; State reserves such right over such lands.

The 1935, 1973 & 1987 Constitution applies this doctrine. All lands not acquired from the government belong to the State. The state can consider what is alienable or not. DEVELOPMENT OF LAND LAWS Laws of Indies Ley Hepo.(Mortgage Law of 1893) (until) P.D. No. 1529 Domination of Spain: o Private land ownership through GRANTS o All lands belong to Spain Exception: 1) Possession of person of land from time immemorial (predecessorsin-interest); presumption that land is private land. 2) Church/ educational properties (the King decided that he was not the owner of these lands). When Spain entered the Treaty of Paris, Spain did not cede the lands of the churches; they continued to be property of the RC Church.

Ohcho v. Director of Lands (75 Phils. 89) . . . All lands that were not acquired from the Government, either by purchase or by grant, belong to the public domain. An exception to the rule would be any land that should have been in the possession of an occupant and of his predecessors in interest since time immemorial, for such possession would justify the presumption that the land had never been part of the public domain even before the Spanish conquest. (Cario vs. Insular Government, 212 U.S., 449; 53 Law. ed., 594.) 20 The applicant does not come under the exception, for the earliest possession of the lot by his first predecessor in interest began in 1880.

DEFINITIONS Land- is the solid part of the surface of the Earth. Land Title- is an evidence of right of owner or extent of his interest by which he can maintain, control and, as a rule, assert right to exclusive possession and enjoyment of property. E.g. Transfer Certificate of Title/ Certificate of Title) Deed- is a written instrument executed in accordance with the form prescribed by law where a person grants or conveys land. Examples: o transfer of title; or o encumbrance of land; or o mortgage; or o lien

Already becomes private land (Judicial confirmation of title [Sec. 48 (b), C.A. 141) Public- not segregated from mass of lands. i. The Constitution classifies 4 classes: 1. Forest and timberlands 2. Mineral 3. Agricultural 4. Reservation

1935 and 1973 Constitution (only 3 classification) Agricultural lands- inalienable/not disposable Homestead, sale, donation Once acquired, can be acquired through registration under the Torrens Law. MODES Ordinary Registration Judicial Confirmation of Title Cadastral Administrative form of registration Example of public lands not subject to private ownership; not registrable under Torrens: Devoted for public use: roads, street Devoted for public service Forest and timberlands Mineral resources Lakes Watershed, etc. Navigable sea INALIENABLE= NON-REGISTRABLE We are concerned with transaction involving lands; Ownership: how transferred? How lost? Who has better right? 3 DIFFERENT SYSTEMS OF TRANSFERRING LAND TITLE 1. 2. Production and delivery of conveyance and order of grantor to grantee (complete in itself) Registration or Recording of Deed of Conveyance (is a public record kept by a public official) System of Judicial Registration which provides title of ownership itself (not only registration) CLASSIFICATION OF LAND IN THE PHILIPPINES 1. 2. Registered Land- covered by the Torrens Title Unregistered Land- not covered by the Torrens Title

Possession is different from Ownership. Possession Ownership Ex. Lease: Lessor= Owner Leasee= Possessor Possession is the holding of a thing or the enjoyment of a right (Article 523 Civil Code) In order for a DEED TO BE EFFECTIVE REQUISITES: There must be a grantor There must be a grantee There must be words of grant (i.e. transfers, assigns, leases) Description of property Signature of grantor (important: intention to convey or transfer) Attested by at least 2 witnesses Acknowledged by a notary public Sec. 112, PD 1529: Important to render it a public document Registrable Document Cheng v. Genato Registration- is the entry made in the Registrar which records solemnly and permanently the right of ownership and all the real rights. CLASSIFICATION OF PROPERTY Article 414: 1. 2. Personal or movable Real or immovable Lands: Private: i. consists of all property by private person either individual or collectively (Art. 425: Property of private ownership, besides the patrimonial property of the State, provinces, cities, and municipalities, consists of all property belonging to private persons, either individually or collectively) ii. segregation from public lands iii. Article 141: Govt. grants public agricultural lands through various kinds of patents 3.

-The need for classification is to determine the mode of transferring title. Unregistered Land: Sec.4 Administrative Code (before PD 1529) Sec. 113, P.D. 1529 recording of instrument of unregistered land.

SYSTEMS OF REGISTRATION IN THE PHILIPPINES (Mortgage Law Abolished) 1. 2. For Registered Lands: PD 1529 (Codified Act; Cadastral Act) For Unregistered Lands: Sec. 113

PURPOSES OF LAND REGISTRATION 1. To quite title to land Sec. 31, par. 2: The decree of registration shall bind the land and quiet title thereto, subject only to such exceptions or liens as may be provided by law. It shall be conclusive upon and against all persons, including the National Government and all branches thereof, whether mentioned by name in the application or notice, the same being included in the general description "To all whom it may concern". Legarda & Prieto v. 30 Phil. 390 SC: -primary purpose of land registration is to settle title to land. -title is already unimpeachable -not subject to another registration -to put a stop forever to any question to the legality of the title except claims which are duly noticed at the time of the registration (that claims should be duly recorded in the title) Corollary to this is the next: To relieve the land of unknown liens, claims, or burdens, whether just or unjust Sec. 44: Statutory liens affecting title. 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 -Since it is already quite, the land is relived of unknown liens -third persons who did not appear are already barred [except] those provided by law (Sec. 44) 3. To prevent fraudulent claims

-should be read in relation to 6th -Registration is a species of notice because theres a permanen public record in the Office of Register of Deeds. -Section 31/32: Once land is already registered under the Torrens System; All transactions in order to bind third persons must be REGISTERED. -WHY? REGISTRATION- is the operative act that binds or affects registered land insofar as third person are concerned. Transaction of land cannot be concealed because it is registered prevent fraudulent claims. Ex. Act 1544 first registrant in good faith registration binds. 4. To establish priority in rights

2.

Sec. 56: Primary Entry Book; fees; certified copies. Each Register of Deeds shall keep a primary entry book in which, upon payment of the entry fee, he shall enter, in the order of their reception, all instruments including copies of writs and processes filed with him relating to registered land. He shall, as a preliminary process in registration, note in such book the date, hour and minute of reception of all instruments, in the order in which they were received. They shall be regarded as registered from the time so noted, and the memorandum of each instrument, when made on the certificate of title to which it refers, shall bear the same date: Provided, that the national government as well as the provincial and city governments shall be exempt from the payment of such fees in advance in order to be entitled to entry and registration. Every deed or other instrument, whether voluntary or involuntary, so filed with the Register of Deeds shall be numbered and indexed and endorsed with a reference to the proper certificate of title. All records and papers relative to registered land in the office of the Register of Deeds shall be open to the public in the same manner as court records, subject to such reasonable regulations as the Register of Deeds, under the direction of the Commissioner of Land Registration, may prescribe. All deeds and voluntary instruments shall be presented with their respective copies and shall be attested and sealed by the Register of Deeds, endorsed with the file number, and copies may be delivered to the person presenting them. Certified copies of all instruments filed and registered may also be obtained from the Register of Deeds upon payment of the prescribed fees. 5. To create indefeasible (indivisible?) and imprescriptible title binding on the whole world

Sec. 53: Presentation of owner's duplicate upon entry of new certificate. No voluntary instrument shall be registered by the Register of Deeds, unless the owner's duplicate certificate is presented with such instrument, except in cases expressly provided for in this Decree or upon order of the court, for cause shown. The production of the owner's duplicate certificate, whenever any voluntary instrument is presented for registration, shall be conclusive authority from the registered owner to the Register of Deeds to enter a new certificate or to make a memorandum of registration in accordance with such instrument, and the new certificate or memorandum shall be binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value and in good faith. In all cases of registration procured by fraud, the owner may pursue all his legal and equitable remedies against the parties to such fraud without prejudice, however, to the rights of any innocent holder for value of a certificate of title. After the entry of the decree of registration on the original petition or application, any subsequent registration procured by the presentation of a forged duplicate certificate of title, or a forged deed or other instrument, shall be null and void.

Sec. 42: Registration Books. The original copy of the original certificate of title shall be filed in the Registry of Deeds. The same shall be bound in consecutive order together with similar certificates of title and shall constitute the registration book for titled properties. Sec. 47: Registered land not subject to prescriptions. No title to registered land in derogation of the title of the registered owner shall be acquired by prescription or adverse possession. -Sec. 42: after 1 year of entry of (issuance) of registry, title becomes conclusive and incontrovertible title can no longer be defeated by any other person. -Sec. 47: imprescriptible (title) land registered cant be acquired by prescription. 6. To provide a means of publication or notice to third persons

-species of notice= permanent public records Once transaction is REGISTERED, that serves as a CONSTRUCTIVE NOTICE to the whole world. LAW ON CONSTRUCTIVE NOTICE -permanent public records provide source and information for the status of land -there is a presumption that any buyer has already examined the records -presumed to know facts -good faith is not a valid defense SEC. 32 Review of decree of registration; Innocent purchaser for value. The decree of registration shall not be reopened or revised by reason of absence, minority, or other disability of any person adversely affected thereby, nor by any proceeding in any court for reversing judgments, subject, however, to the right of any person, including the government and the branches thereof, deprived of land or of any estate or interest therein by such adjudication or confirmation of title obtained by actual fraud, to file in the proper Court of First Instance a petition for reopening and review of the decree of registration not later than one year from and after the date of the entry of such decree of registration, but in no case shall such petition be entertained by the court where an innocent purchaser for value has acquired the land or an interest therein, whose rights may be prejudiced. Whenever the phrase "innocent purchaser for value" or an equivalent phrase occurs in this Decree, it shall be deemed to include an innocent lessee, mortgagee, or other encumbrancer for value. Upon the expiration of said period of one year, the decree of registration and the certificate of title issued shall become incontrovertible. Any person aggrieved by such decree of registration in any case may pursue his remedy by action for damages against the applicant or any other persons responsible for the fraud. Corollary to this is the MIRROR DOCTRINE (all you have to do is to rely on the title; It was envisaged that a person who was considering purchasing an interest in land could find all the information necessary to make a decision by inspection of the register. That is, the register would be a `mirror' of the actual state of the proprietor's title, and disclose any benefits or encumbrances associated with the title Mirror principle - the register (Certificate of Title) reflects (mirrors) accurately and completely the current facts about a person's title. This means that, if a person sells an estate, the new title has to be identical to the old one in terms of description of lands, except for the owner's name. Supposing, a registered land subject of sale; the sale is not registered, who are bound? Only the parties (estoppels by deed) Heirs, assigns, successors-in-interest (based on Relativity) Are third persons bound? It depends o If with actual knowledge of the conractshe is bound o K v. Veluz (41 Phil. 604) & Consolidated Rural Bank v. CA (448 SCRA 34)

Third persons are bound because actual knowledge of the transaction is equivalent to registration.

Are there secret girlfriends? How? To let her know to notify actual knowledge=registration 7. To provide stability to land titles

REGISTRATION DOES NOT VEST TITLE TO REGISTRANT Ex. OFW went abroad; he left documents to friend; then the friend registered. Registration does not vest title, OFW can ask for reconveyance REGISTRATION MERELY CONFIRMS TITLE If you apply for registration, you proved you are the owner -registration is not a mode of acquiring ownership -it does not cure defect in the contract -it does not validate an illegal contract REGISTRATION SHOULD BE ACCOMPLISHED IN THE CORRECT SYSTEM OF REGISTRATION Ex. Land already registered; Tax Declaration is unregistered land; land sold to A; A registered it to registration of unregistered land by attachment creditor; 2nd buyer bought the land from registered owner. 2nd buyer has better right because it was wrong system of registration: invalid/legally ineffective registration ORIGINAL REGISTRATION- if first time to be registered in public record, it is original registration (Original Certificate Of Title) 2 Copies: -Original sa Registry -To registrant TRANSFER- is the subsequent registration (Transfer Certificate) OBJECT OF REGISTRATION: real rights and real property and interests in the land (e.g. mortgage, attachment, etc.)