BSLM-3C

REAL ESTATE LAWS

19 February, Monday

TORRENS SYSTEM exact replica of the decree. If the old decree

 The Torrens System is a system of registration of will not be canceled and no new decree
transactions with interest in land the object of issued, the corresponding OCT issued today
which is, under governmental authority, to will bear the signature of the present
establish and certify the ownership of an absolute Administrator while the decree upon which it
and indefeasible title to realty, and to simplify its was based shall bear the signature of the
transfer. past Administrator. This is not consistent
(Grey Alba v. De la Cruz, G.R. No. 5246, September with the clear intention of the law which
16, 1910 citing Hogg on Australian Torrens System.) states that the OCT shall be true copy of
the decree of registration. Ostensibly,
NOTE: It was later amended and superseded by P.D. therefore,
1529, which took effect on June 11, 1978, otherwise  the cancellation of the old decree and the
known as the Property Registration Decree (PD issuance of a new one is necessary.
1529) .  A subsequent registration, on the other
hand, is when the originally issued land title
TORRENS SYSTEM; KEY TERMS is cancelled and replaced by another title.
Title to real property
 A title to real property is the evidence of the DECREE BINDS THE LAND AND IS CONCLUSIVE
owner’s right or extent of his interest, by which he AGAINST THE WHOLE WORLD
can maintain control and assert his right to
exclusive possession and enjoyment of the  As soon as the decree of title has been registered
property. in the office of the RD, the property included
(Evangelista v. Santiago, G.R. 157447, April 29, 2005 therein becomes registered land
citing Narciso Peña, et al., Registration of Land Titles  Certificate of title shall take effect upon the
and Deeds 3 (1994 ed.)) transcription of the decree
 Patent Titles issued by DENR
TORRENS SYSTEM; KEY TERMS;
 Free Patent Application is a mode of
TITLE TO PROPERTY
acquiring ownership of a certain parcel of
alienable and disposable land.
KINDS OF TITLE
 Original Certificate of Title (OCT)
 Emancipation Patents issued by DAR
 Mother title the original title of ownership of
 the issuance of Emancipation Patent confers on
a land or property. It's the first registered title
the farmer-grantee a vested right of absolute
of the property and the document that traces
ownership in the landholding — a right which
the origin of the property.
has become fixed and established and is no
 Registration of land under governmental
longer open to doubt and controversy.
authority.
 is a proof of ownership which can be the subject
 Once registered, an OCT will be issued.
of a contract of sale in the exercise of one's right
 Origin: Public lands
of ownership without violating the prohibitions
embodied in Section 27 of R.A. No.
 Transfer Certificate of Title (TCT)
6657 (Comprehensive Agrarian Reform Law)
 is the document that proves your ownership
relative to sale or disposition of awarded lands for
of the property.
a period of ten (10) years from their award
 is issued by the Registry of Deeds after the
because said provision of law solely applies to
registration of the deed of sale.
awarded lands under R.A. No. 6657 covered by
 contains all the information about the
Certificates of Land Ownership Award (CLOAs)
property, including the names of the owner,
and not to PD 27 lands covered by EPs.
the date of purchase, and a description of
 PD 27 covers only rice and corn farms while
the property.
CARL expanded coverage to all agriculture lands
 is also the document that is used to transfer
and included beneficiary development as another
ownership of the property from one person
component of land program.
to another. When you sell your property, the
buyer will need to obtain a new TCT in their
 Certificate of Land Ownership Award (CLOA)
name.
issued by DAR
If you are thinking of selling your property, it is
 is a document evidencing ownership of the
important to make sure that your TCT is clean
land granted or awarded to the beneficiary
and up to date.
by DAR, and contains the restrictions and
 TCT canceled the old one which is the OCT
conditions provided for in R.A. 6657 and
other applicable laws.
 OCT issued pursuant to a Decree of Registration
 Comprehensive Agrarian Reform Law
 Section 39 of PD 1529 which states
 Prohibit to sell the land granted by the
that: "The original certificate of title shall
Government
be a true copy of the decree of
registration." This provision is significant
EXCEPTIONS:
because it contemplates an OCT which is an
 Being sold by the Government or Land Bank
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 hereditary succession (pwede ilipat sa anak)  The primary distinction between a Transfer
 No sale of the grant land within 10 years (mag- Certificate of Title and a Condominium
antay ng 10 years para ibenta) Certificate of Title is that the latter only
covers air space (unit number of a specific
CAN DISPOSE TO QUALIFIED floor in the condo). As a result, condo
BENEFICIARIES/INDIVIDUALS owners receive a Condominium Certificate
 Famers who does’nt have a land of Title, while developers receive a Transfer
 Filipino Citizens Certificate of Title.
 18 years of age
DEED
 REPUBLIC ACT NO. 6657 Comprehensive  A deed is an instrument in writing by which any
Agrarian Reform Law (CARL) real estate or interest therein is created,
 Section 27 of R.A. No. 6657, on the other hand, alienated, mortgaged, or assigned, or by which
provides that lands acquired by the beneficiaries title to any real estate may be affected in law or
under this Act may not be sold, transferred or equity.
conveyed except through hereditary succession,
or to the government, the Land Bank of the LAND REGISTRATION
Philippines (LBP), or other qualified beneficiaries  A judicial or administrative proceeding whereby a
for a period of ten (10) years. person’s claim over a particular land is
SECTION 27. Transferability of Awarded Lands — determined and confirmed or recognized so that
Lands acquired by beneficiaries under R.A. 6657 may such land and the ownership thereof may be
not be sold transferred or conveyed within a period of recorded in a public registry.
ten (10) years except through hereditary succession,
or to the DAR or LBP, or to other qualified TORRENS SYSTEM; PURPOSES
beneficiaries; Provided, however, that the children or 1. Quiet title to land
the spouse of the transferor shall have a right to  To silence any controversies due to you due
repurchase the land from the DAR or LBP within a issuance of your title.
period of two (2) years. Due notice of the availability of  An Affidavit of Self-Adjudication is a
the land shall be given by the LBP to the BARC of the statement under oath by a sole heir (the
Barangay where the land is located. The Provincial “affiant”) where he declares that he is the
Agrarian Reform Coordinating Committee only heir of the deceased and is adjudicating
(PARCCOM), as provided by law, shall, in turn, be the entire inheritance to himself.
given due notice thereof by the BARC.  pinapatotohanan na sayo lang ang lupa
 This affidavit will create a “cloud”
If the land has not yet been fully paid by the encumbrances to the title.
beneficiary, the rights to the land may be transferred  A cloud on title is
or conveyed. with prior approval of the DAR, to any a claim or encumbrance that affects
heir of the beneficiary or to any other beneficiary who, the ownership of a property and can
as a condition ;or such transfer or conveyance, shall potentially discourage future parties from
cultivate the land himself. Failing compliance purchasing it. These claims or
herewith, the land shall be transferred to the LBP encumbrances can arise
which shall give due notice of the availability of the from easements or mortgages on the land,
land in the manner specified in the immediately or they can arise from a defect in a deed or
preceding paragraph. a lien that may yield title to a third party.

In the event of such transfer to the LBP, the latter shall 2. Guarantee the integrity of land titles
compensate the beneficiary in one lump sum for the  Guarantees the tenure over the title.
amounts the latter has already paid, together with the
value of improvements he has made on the land. 3. Avoid possible Conflicts
 Future potential conflict.
 Domain Titles issued by NCIP
 NCIP - National Commission on Indigenous 4. Facilitate transactions relative thereto via
People
 Through the Indigenous Peoples Rights Act MIRROR DOCTRINE
(IPRA), Certificate of Ancestral Domain  certificate of title reflects or mirrors
Titles(CADTs) are issued to formally recognize accurately and completely the current facts
the rights of possession and ownership of about person's title.
Indigenous Cultural Communities/Indigenous  Accurate description of the land
Peoples (ICCs/IPs) over their ancestral domains  New title has to be identical to the real one
as identified and delineated in accordance with in terms of description of the land.
this law, while Certificate of Ancestral Land Titles  It will reflect the details over time of
(CALTs) formally recognize the rights of ICCs/IPs the parcel of lands, over the condition
over their ancestral lands. of the land. It will provide the legal
implication over the transaction.
 Condominium Certificate of Title (CCT)
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The Mirror Principle has TWO (2) Components THE EFFECT OF REGISTRATION
 Mirror Doctrine
Certainty to the Identity of the Land  Curtain Principle
 the identity or metes and bounds of the land is  Insurance or Guarantee Principle
accomplished through a survey;
 are the boundaries of a parcel of real estate that Registration of title distinct from acquisition
identified by its natural landmarks. Metes and  Registration under the Torrens System does not
bounds landmarks are often used in a “legal create or vest title
description” of a land. Legal description is the  Not mode of acquiring ownership
geographical description of a land that identifies  Any extra portion of land (ipacorrect)
its precise location, and is kept with the deed of  Serves as a MERE evidence of acquiring
the land. ownership
 this is a proof of the ownership but not
Certainty as to the Ownership of the Land guarantee that no one will claim
 the identity of the landowners is ensured during  This is open to challenge or impunity.
original registration proceedings, cadastral This is a conclusive proof of ownership.
registration proceedings, or through application
for a public land grant; the personal TORRENS SYSTEM; GENERAL PRINCIPLES
circumstances of applicants are secured during QUESTION
the proceedings A is the owner of a parcel of land. He is a widow but
(Pena, Registration of Land Titles and Deeds, 2008, has a legitimate son, B. A died, allowing B to succeed
p. 265-266). to the land. For this, he executied an
Extrajudicial Settlement of Estate which was duly filed
EXCEPTIONS TO THE MIRROR DOCTRINE: and registered, and eventually allowed B to have a
 Purchaser acted in bad faith; new
 When the purchaser or mortgagee is a Financing certificate of title registered in his favor.
institution;
 When the purchaser is a Bank Upon knowing of the death of A, C and D surfaced
 Where a person buys land not from the registered claiming to be illegitimate children of A and thus
owner BUT from one whose right to the land has entitled to a share in the land.
been merely Annotated on the Certificate of Title;
B said that a certificate of title had already been issued
5. Purchaser of land where the certificate of title in his favor and this already precludes claims of any
contains a notice of Lis pendens; (pending litigation) other person not named in the said certificate.
6. Sufficiently strong indications to impel closer Is B correct?
inquiry into the location, boundaries, and condition
of the lot; TORRENS SYSTEM; GENERAL PRINCIPLES;
QUESTION
The Curtain Principle (or Indefeasibility of Titles) A purchased a parcel of land with an area of 150 sq.
 Conduct more inquiry, Historical meters and located in Malolos, Bulacan. A title over a
search will not be necessary. purchased lot. Upon issuance of a new title in his
 The principle means that the current favor, instead of displaying an area of 150 square
certificate of title contains all the information meters, the title displayed an area of 200 square
about the title and it is not necessary for an meters.
interested person such as a potential
purchaser to worry about any past dealings Does A now own the extra 50 square meters?
with the property.
(Sps. Cusi vs. Domingo, G.R. No. 195825, February Nature of land proceedings:
27, 2013).  A proceeding in rem Judicial Proceeding
Voluntary
EXCEPTIONS  Institute for yourself not the court
(1) When the party concerned has actual knowledge
of facts and circumstances that should impel a NATURE OF TORRENS TITLE
reasonably cautious man to make further inquiry; or  It cannot be subject to a collateral attack.
(2) Where there is fraud.  Direct attack
 “Counterclaim is a complaint can
The Insurance or Guarantee Principle be consider a direct attack to the
 The principle means that an insurance fund is in validity of the Torrens title.”
place to compensate anyone who suffers as a  Enforceable within the whole world.
result of a mistake being made concerning the  Judicial tribunal – Does not implement
validity or accuracy of a title (Sec. 95, P.D. 1529). “moto propio” doctrine.
 Is in place to compensate for anyone who
suffers because of mistakes. (human error)  Cannot be subject to a collateral attack:
Any issue to its validity, it must be brought
3 IMPORTANT PRINCIPLES ON to it directly. There must be an
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independent action instituted to challenge 3. Be the Central repository of records relative to

its validity. original registration of lands titled under the Torrens
system, including the subdivision and consolidation
QUESTION plans of titled lands. (P.D. 1529, § 6(2))
A filed an ejectment case against B who, in turn, filed
a counterclaim against A. In the counterclaim, B REGISTRY OF DEEDS
challenges the validity of A’s title. Can B’s FUNCTIONS:
counterclaim prosper?
1. Immediately Register an instrument presented for
TORRENS SYSTEM; NATURE OF TORRENS TITLE registration dealing with real or personal property
 It is indefeasible and imprescriptible. which complies with the requisites for registration;
 No expiration of duly registered title  Chattel - real property
 Mortgage - personal property
X Claims against the land prior to the issuance of
the Torrens Certificate of Title that are not noted on 2. See to it that said instrument bears the Proper
said title are quieted or barred. documentary stamps and that the same are properly
 If not recorded, instituted it again. cancelled
 Nachecheck ng mga papeles, taxes
 The person who fraudulently registered the and such.
land in his name holds it as a mere trustee with
the obligation to reconvey the property and the 3. If the instrument is not registrable, Deny the
title to the true owner. registration thereof and inform the presentor of such
 Where two certificates of title include the same denial in writing, stating the ground or reason
land, the certificate that is earlier in data prevail. therefore, and advising him of his right to appeal by
 Titles derived from a void title are also void. consulta in accordance with Sec. 117 of P.D. 1529;
and
TORRENS SYSTEM; BODIES COVERING LAND
REGISTRATION UNDER TORRENS SYSTEM 4. Prepare and keep an Index system which contains
 Courts the names of all registered owners and lands
 Regional Trial Court in General registered in their names. (P.D. 1529, § 12)
 MTC can hear and try :
 Lot is not subject reklamo (walang  Function of ROD ministerial in character
nagrereklamo)  if compliant, needs to approved
 Value not exceeding in 100k.
 Cadastral lands or land registration cases Basic formal requirements of deeds and other
voluntary instruments: (See P.D. 1529, § 112)
 DENR - Department of Natural Resource 1) In a public instrument
 DOJ - Department of Justice (through LRD and 2) Signed by the person/s executing the same
RD) 3) Executed in the presence of least 2 witnesses
 Land Registration Authority AND present who shall also sign the same
Register of Deeds 4) Acknowledged to be the free act and deed of the
 DLR - Department of Agrarian Reform person/s executing the same before a notary
 DA - Department of Agriculture public or other public officer authorized to
 Can be appealable through the take acknowledgement.
intervention of the court of appeals.
QUESTION
LAND REGISTRATION AUTHORITY In 1961, A purchased a parcel of land from B, which
FUNCTIONS: was covered by OCT No. 00001. A came to the RD
 Tagapangalaga ng records under the and sought to have the sale registered and
torrens systems, kasama ang mga consequently have a title issued in his favor.
subdivision
 protects and implements the Torrens RD denied the registration stating that the OCT was
system of land titling and registration. It is registered under the name of B, married to C. This
the central repository of all land records meant that the property was conjugal in nature and
involving registered or titled lands. therefore, both B and C should have signed the Deed
of Absolute Sale. It was also discovered that C was
already deceased at the time of the sale, and therefore
1. Extend Speedy and effective assistance to the B cannot disposed of the property by himself
Dept. of Agrarian Reform, the Land Bank, and other without violating existing laws, particularly the laws on
agencies in the implementation of the land reform succession.
program of the government;
Should the Deed of Absolute Sale be registered?
2. Extend Assistance to courts in ordinary and
cadastral land registration proceedings; and Other grounds for denial of registration:

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 Where there is more than 1 copy of the owner’s

duplicate certificate of title and not all such copies
are presented to the ROD.(Balbin v. ROD, G.R.
No. L-20611, 1969);
 Where the validity of the instrument sought to be
registered is in issue in a pending court suit,
notice of which must be given to parties
 Where required certificates or documents such as
DAR clearance, copy of latest tax declaration, are
not submitted.
 Tax dec / free from any government
liabilities, if not, will be denied
 Private documents

 In cases where the ROD is in doubt When the

ROD is in doubt as to the proper action to take on
an instrument or deed presented to him for
registration, he should submit the question to the
Administrator of the LRA en consulta. (P.D. 1529,
§ 117)