LAND TITLES 2nd Year End Lectures

COVERAGE
V. Subsequent Registration

A. Voluntary dealings B. Involuntary dealings

SUBSEQUENT REGISTRATION

SUBSEQUENT REGISTRATION refers to incidental matters arising after original registration. Dealings subsequent to original registration may be VOLUNTARY or INVOLUNTARY.

RULES AS TO THE NECESSITY AND EFFECTS OF REGISTRATION IN GENERAL

Except a will that purports to convey or affect registered land, the mere execution of the deeds of sale, mortgage, or lease or other voluntary documents serve 2 purposes:

As a contract between the parties thereto; and As evidence of authority to the ROD to register such documents

It is only the act of registering the instrument in the ROD of the province or city where the land lies which is the operative act which conveys ownership or affects the land insofar as third persons are concerned. The act of registration creates a constructive notice to the whole world of such voluntary or involuntary instrument or court writ or process.

DISTINCTIONS
VOLUNTARY INVOLUNTARY

Refer to deeds, instruments, or documents which are the results of the free and voluntary acts of the parties thereto

Refer to such writs, orders or processes issued by a court affecting registered land, which by law should be registered to be effective, and such instruments which are not the willful acts of the registered owner and which may have been executed without his knowledge or consent

VOLUNTARY
INCLUDES: Sale Real property mortgage Lease Pacto de retro sale Extra-judicial settlement Free patent/homestead Powers of attorney Trusts

INVOLUNTARY
Attachment Injunction Mandamus Sale on execution of judgment Sales for taxes Adverse claims Notice of lis pendens Eminent Domain

VOLUNTARY An innocent purchaser for value of registered land becomes the registered owner the moment he presents and files a duly notarized and valid deed of sale and the same is entered in the day book and at the same time he surrenders or presents the owners duplicate certificate of title covering the land sold and pays the registration fees

INVOLUNTARY Entry thereof in book of the ROD sufficient notice persons even if the duplicate certificate is not presented ROD the day may be to all owners of title to the

VOLUNTARY
There is a need to present title to record the deed in the registry and to make memorandum on the title. Registration is effective once the ODCT is submitted with the payment of fees. Once it is registered in the DAY BOOK and is annotated behind the title, the voluntary transaction is deemed registered and it would affect third parties.

INVOLUNTARY
No presentation required; annotation in entry book is sufficient. Registration for involuntary transactions is effective once it is entered in the day book of the Register of Deeds.

PRIMARY ENTRY BOOK Section 56. Primary Entry Book 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. 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.

VOLUNTARY DEALINGS

Section 51. Conveyance and other dealings by registered owner. An owner of registered land may convey, mortgage, lease, charge or otherwise deal with the same in accordance with existing laws. He may use such forms of deeds, mortgages, leases or other voluntary instruments as are sufficient in law. But no deed, mortgage, lease, or other voluntary instrument, except a will purporting to convey or affect registered land, shall take effect as a conveyance or bind the land, but shall operate only as a contract between the parties and as evidence of authority to the Register of Deeds to make registration.

The ACT OF REGISTRATION shall be the operative act to convey or affect the land insofar as third persons are concerned, and in all cases under this Decree, the registration shall be made in the office of the Register of Deeds for the province or city where the land lies.

FORGED DEEDS

Although, generally, a forged or fraudulent deed is a nullity and conveys no title, however, there are instances where such a fraudulent document may become the root of a valid title. One such instance is where the certificate of title 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 (FULE versus LEGARE, 7 SCRA 351 [1963]).

CHAIN OF TITLE THEORY

The Chain of Title Theory is an approach to determining validity of title where forged deeds are involved. It examines the comparative negligence of the parties.

EXAMPLE 1: Suppose Bianca owns a piece of land and she has a certificate of title. Bianca migrates to the US and leaves the title to Kim. Kim forges the deed of sale making it appear that Bianca sold the land to her. Kim presents the forged deed and ODCT to the Register of Deeds. As a result, the Register of Deeds cancelled Bianca's title and issues a new title to Kim. Assuming that Bianca comes back and finds out the forgery and subsequent sale, Can Bianca recover the title from Kim?

YES, because the forged deed does not give any rights to Kim.

EXAMPLE 2: Taking into consideration the facts in EXAMPLE 1, Kim now sells the land to another person Maja. Maja now registers the land presenting the TCT and the Deed of Sale to the Register of Deeds. Maja successfully obtains a title in her name. Bianca comes back and finds out. Can Bianca recover from Maja?
NO, because in the meantime an innocent purchaser for value was able to get title to the property. As between Bianca and Maja, Maja is not negligent since she is not aware of what happened. The one who is negligent here is Bianca for entrusting her title to Kim.

EXAMPLE 3: Bianca has title over a parcel of land. One night, a thief Kim steals Bianca's title. The thief goes to the province and claims that she is Bianca and sells Bianca's title to Maja. Kim here, forges the signature of Bianca. Maja registers the property with the forged deed and the genuine title and successfully obtains a title in her name. Later on Bianca, traces the title and goes after Maja. Can Bianca file an action for reconveyance against Maja? YES. Bianca is not negligent in this case. She lost title because of a fortuitous event. Maja is negligent since she failed to ascertain the identity of Kim. Note that Maja has the duty to ascertain the identity of the seller and/or the owner. Since Maja is negligent, she cannot be considered as an innocent purchaser for value.

EXAMPLE 4: Suppose Kim steals the title from Bianca, then Kim forges the deed making it appear that Bianca has sold the property to her. Kim obtains title. Kim later on sells the property to Maja. In this case, Maja is transacting with the right person because it appears in the title that the owner is already Kim. Maja is not aware that Kim forged the deed of sale between her and Bianca. Suppose that Maja obtains a title by the Deed of Sale between Kim and Maja and the title obtained by Kim from the Register of Deed. In this case, Maja is not aware, neither was she negligent. Bianca is also not negligent since it was stolen from she. In the Torrens System, Maja would be preferred.

The chain of title theory is applicable only in case a forged deed becomes the basis for the issuance of a certificate of title.
The chain of title theory is not applicable where the transferee of the forger is not an innocent purchaser for value and in good faith.

BAR QUESTION 1999

The spouses X and Y mortgaged a piece of registered land to A, delivering as well the OCT to the latter, but they continued to possess and cultivate the land, giving 1/2 of each harvest to A in partial payment of their loan to the latter, A, however, without the knowledge of X and Y, forged a deed of sale of the aforesaid land in favor of himself, got a TCT in his name, and then sold the land to B, who bought the land relying on A's title, and who thereafter also got a TCT in his name. It was only then that the spouses X and Y learned that their land had been titled in B's name. May said spouses file an action for reconveyance of the land in question against b? Reason. (5%)

The action of X and Y against B for reconveyance of the land will not prosper because B has acquired a clean title to the property being an innocent purchaser for value. A forged deed is an absolute nullity and conveys no title. The act that the forged deed was registered and a certificate of title was issued in his name, did not operate to vest upon an ownership over the property of X and Y. The registration of the forged deed will not cure the infirmity. However, once the title to the land is registered in the name of the forger and title to the land thereafter falls into the hands of an innocent purchaser for value, the latter acquires a clean title thereto. A buyer of a registered land is not required to explore beyond what the record in the registry of title indicates on its face in quest for any hidden defect or inchoate right which may subsequently defeat his right thereto. This is the "mirror principle of the Torrens system which makes it possible for a forged deed to be the root of a good title. Besides, it appears that spouses X and Y are guilty of contributory negligence when they delivered this OCT to the mortgagee without annotating the mortgage thereon. Between them and the innocent purchaser for value, they should bear the loss.

REQUIREMENT FOR VOLUNTARY DEALINGS

Section 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.

FULL CONVEYANCE OF OWNERSHIP

Under Section 57, an owner desiring to convey his registered land in fee simple (FULL OWNERSHIP) shall execute and register a deed of conveyance in a form sufficient in law (PUBLIC INSTRUMENT); The Register of Deeds shall thereafter:

Make out in the registration book a new certificate of title to the grantee and shall prepare and deliver to him an owner's duplicate certificate; Note upon the original and duplicate certificate the date of transfer, the volume and page of the registration book in which the new certificate is registered and a reference by number to the last preceding certificate; Stamp as "canceled" the original and the grantor's duplicate certificate of title.

The deed of conveyance shall be filed and indorsed with the number and the place of registration of the certificate of title of the land conveyed.

CONVEYANCES OF PORTIONS ONLY

Under Section 58, if a deed or conveyance is for a part only of the land described in a certificate of title, the Register of Deeds shall not enter any transfer certificate to the grantee until a subdivision plan of such land showing all the subdivided portions or lots and the corresponding technical descriptions shall have been verified and approved pursuant to Section 50; In the meantime, such deed may only be annotated by way of memorandum upon the grantor's certificate of title, original and duplicate. Said memorandum to serve as a notice to third persons of the fact that certain unsegregated portion of the land described therein has been conveyed;

Upon the approval of the plan and technical descriptions, the original of the plan, together with a certified copy of the technical descriptions shall be filed with the Register of Deeds for annotation in the corresponding certificate of title and thereupon said officer shall:

Issue a new certificate of title to the grantee for the portion conveyed, and at the same time cancel the grantor's certificate partially with respect only to said portion conveyed; or If the grantor desires, his certificate may be canceled totally and a new one issued to him describing therein the remaining portion; or If also desired by the grantor, instead of canceling the his certificate and issuing a new one for the remaining unconveyed lots, the ROD may enter the certificate a memorandum of the deed of conveyance and of the issuance of the transfer certificate to the grantee for the lot or lots thus conveyed, and that the grantor's certificate is canceled as to such lot or lots.

CARRY OVER

Section 59. Carry over of encumbrances. If, at the time of any transfer, subsisting encumbrances or annotations appear in the registration book, they shall be carried over and stated in the new certificate or certificates; except so far as they may be simultaneously released or discharged.

REGISTRATION OF CONVEYANCES SUMMARY OF PROCEDURE

File the instrument creating or transferring the interest and the certificate of title with ROD, including:

Owners duplicate; Payment of fees and documentary stamp tax; Evidence of full payment of real estate tax; Document of transfer: 1 additional copy for city/provincial assessor

ROD shall make a memorandum on the Owners duplicate certificate of title, signed by him; Issuance of the TCT.

DEALINGS LESS THAN OWNERSHIP

Section 54. Dealings less than ownership, how registered. No new certificate shall be entered or issued pursuant to any instrument which does not divest the ownership or title from the owner or from the transferee of the registered owners. All interests in registered land less than ownership shall be registered by filing with the Register of Deeds the instrument which creates or transfers or claims such interests and by a brief memorandum thereof made by the Register of Deeds upon the certificate of title, and signed by him. A similar memorandum shall also be made on the owner's duplicate. The cancellation or extinguishment of such interests shall be registered in the same manner.

COMPARATIVE PROCEDURE
SUMMARY
Conveyance Of Ownership Conveyance of Less than Ownership

Basis

Execution of a public instrument and its registration with the ROD where the land is situated Presentation Requires the presentation of the duplicate requirement certificate

Conveyance Of Ownership

Conveyance of Less than Ownership

Action of ROD on original title

IF FULL ownership is conveyed, the ROD cancels the original and the owners duplicate certificate. IF conveyance is for a PORTION only, the ROD may cancel or merely make a memorandum on the original and the owners duplicate certificate.

The ROD merely makes a memorandum on the original and the owners duplicate certificate

Conveyance Of Ownership

Conveyance of Less than Ownership

New titles issued

If full ownership is conveyed, the grantee is issued his own certificate of title after the owners title is cancelled. If only a portion is conveyed, there may be the issuance of a TCT to the grantee depending on the time and choice of the parties.

No new certificate shall be entered or issued pursuant to any instrument which does not divest the ownership or title from the owner.

REAL MORTGAGES

EFFECT OF REGISTRATION

Creates a LIEN that attaches to the property in favor of the mortgagee; CONSTRUCTIVE NOTICE of his interest in the property to the whole world.

EFFECT OF FAILURE TO REGISTER

Valid between parties but void against 3rd persons Actual knowledge has the same effect as registration

CANCELLATION OF MORTGAGE. A mortgage or lease on registered land may be discharge or canceled by means of an instrument executed by the mortgage or lessee in a form sufficient in law, which shall be filed with the Register of Deeds who shall make the appropriate memorandum upon the certificate of title.

REGISTRATION OF LEASE

It is the lessee, not the lessor, who is required to initiate the registration. NOTE: When there is prohibition in mortgaged property as regards subsequent conveyances, etc., leasehold cannot be registered in the title thereof EFFECT OF REGISTRATION OF LEASE
Creates a real right but without prejudice to rights of 3rd persons; If it is not registered, it is valid as between parties but not to 3rd persons without notice.

REGISTRATION OF POWERS OF ATTORNEY

Section 64. Power of attorney. Any person may, by power of attorney, convey or otherwise deal with registered land and the same shall be registered with the Register of Deeds of the province or city where the land lies. Any instrument revoking such power of attorney shall be registered in like manner.

REGISTRATION OF TRUST

EXPRESS TRUST: Section 65. Trusts in registered land. If a deed or other instrument is filed in order to transfer registered land in trust, or upon any equitable condition or limitation expressed therein, or to create or declare a trust or other equitable interests in such land without transfer, the particulars of the trust, condition, limitation or other equitable interest shall not be entered on the certificate; but only a memorandum thereof shall be entered by the words "in trust", or "upon condition", or other apt words, and by a reference by number to the instrument authorizing or creating the same. A similar memorandum shall be made upon the original instrument creating or declaring the trust or other equitable interest with a reference by number to the certificate of title to which it relates and to the volume and page in the registration book in which it is registered.

IMPLIED TRUST: Section 68. Implied, trusts, how established. Whoever claims an interest in registered land by reason of any implied or constructive trust shall file for registration with the Register of Deeds a sworn statement thereof containing a description of the land, the name of the registered owner and a reference to the number of the certificate of title. Such claim shall not affect the title of a purchaser for value and in good faith before its registration.

SETTLEMENT AND PARTITIONS OF ESTATE

A person may die testate or intestate. If a person dies with a will, the proper procedure will be to file a petition for allowance of a will (probate proceedings). Under Rule 76, if the court is satisfied, upon proof taken and filed, that the will was duly executed, and that the testator at the time of its execution was of sound and disposing mind, and not acting under duress, menace, and undue influence, or fraud, a certificate of its allowance, signed by the judge, and attested by the seal of the court shall be attached to the will. The will and certificate will be filed and recorded by the clerk of court. Attested copies of the will devising real estate and of certificate of allowance thereof, shall be recorded in the Register of Deeds of the province in which the lands lie.

DEALINGS BY EXECUTOR OR ADMINISTRATOR

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

If not allowed by the will: Section 88. Dealings by administering subject to court approval. After a memorandum of the will, if any, and order allowing the same, and letters testamentary or letters of administration have been entered upon the certificate of title as hereinabove provided, the executor or administrator may alienate or encumber registered land belonging to the estate, or any interest therein, upon approval of the court obtained as provided by the Rules of Court.

EXTRAJUDICIAL SETTLEMENT OF ESTATE

In essence, extrajudicial settlements of estate are not conveyances of property but mere assignments of property among heirs called to succeed the estate of a deceased person. The procedure is governed by Rule 74. Thus, if the decedent left no will and no debts and the heirs are all of age, or the minors are duly represented by their guardians, the parties may, without securing letters of administration, divide the estate among themselves as they see fit by means of a public instrument filed with the Register of Deeds. In the case of disagreement among the heirs, they may settle the estate in an ordinary action of partition. If there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed in the office of the Register of Deeds. The fact of the extrajudicial settlement or adjudication shall be published in a newspaper of general circulation once a week for three (3) consecutive weeks.

LIEN UNDER RULE 74

Under Section 86 of PD 1529, when a deed of extrajudicial settlement has been duly registered, the Register of Deeds shall annotate on the proper title the two-year lien mentioned in Section 4 of Rule 74 of the Rules of Court.

Sec. 4. Liability of distributees and estate. XXX If, within the same time of two (2) years, it shall appear that there are debts outstanding against the estate which have not been paid, or that an heir or other person has been unduly deprived of his lawful participation payable in money, such real estate shall remain charged with a liability to creditors, heirs, or other persons for the full period of two (2) years after such distribution, notwithstanding any transfers of real estate that may have been made.

Upon the expiration of the two-year period and presentation of a verified petition by the registered heirs, devisees or legatees or any other party in interest that no claim or claims of any creditor, heir or other person exist, the Register of Deeds shall cancel the two-year lien noted on the title without the necessity of a court order. The verified petition shall be entered in the Primary Entry Book and a memorandum thereof made on the title. No extrajudicial settlement shall be binding upon any person who has not participated therein or had no notice thereof.

COMMON PUBLICATION REQUIREMENT No deed of extrajudicial settlement or affidavit of adjudication shall be registered unless the fact of extrajudicial settlement or adjudication is published once a week for three consecutive weeks in a newspaper of general circulation in the province and proof thereof is filed with the Register of Deeds. The proof may consist of the certification of the publisher, etc. or a copy of each week's issue of the newspaper wherein the publication appeared. ISSUANCE OF TITLE TO HEIRS Section 92. Registration of final distribution of estate. A certified copy of the partition and distribution, together with the final judgment or order of the court approving the same or otherwise making final distribution, supported by evidence of payment of estate tax or exemption therefrom, as the case may be, shall be filed with the Register of Deeds, and upon the presentation of the owner's duplicate certificate of title, new certificates of title shall be issued to the parties severally entitled thereto in accordance with the approved partition and distribution.

INVOLUNTARY DEALINGS

Involuntary dealings are transactions affecting land in which cooperation of registered owner is not needed. Involuntary dealings may even be against the will of the registered owner.

ATTACHMENT

A writ issued at the institution or during progress of an action commanding the sheriff to attach the property, rights, credits or effects of the defendant to satisfy demands of the plaintiff; It is a mesne process, liable to be dissolved at any time and the judgment upon which may or may not affect the property seized. The kinds of attachment are:

Preliminary; Garnishment; Levy on execution.

REGISTRATION OF ATTACHMENT

Copy of writ in order may be filed with Register of Deeds where land lies, containing the number of the certificate of title to be affected Register of Deeds will index attachment in the names of both plaintiff and defendant or the name of a person whom property is held or in whose name stands in the records If duplicate of certificate of title is not presented:

Register of Deeds shall within 36 hours, send notice to registered owner by mail stating that there has been registration and requesting him to produce duplicate so that memorandum be made; If owner neglects or refuses Register of Deeds shall report matter to court; The court, after notice, shall enter an order to owner to surrender certificate at time and place to be named therein.

Although notice of attachment is not noted in duplicate, notation in book of entry of Register of Deeds produces effect of registration already.

EFFECTS OF REGISTRATION OF ATTACHMENT

Creates a real right over the property; The attachment has priority over execution sale. However, between two attachments, one that is earlier in registration is preferred; If not registered, actual knowledge of the property owner is same as registration.

DUTY OF REGISTER OF DEEDS

Basically MINISTERIAL but may refuse registration in following cases:

Title to land is not in the name of defendant; No evidence is submitted to show that the Defendant has a present or possible future interest in land, except: If the Defendant is an heir.

Any interest which defendant has or might have in property may be attached even if said interest be indeterminate because of the pendency of the liquidation estate of his decedent (PACIFIC COMMERCIAL versus GEAGA, 69 Phil. 64)

HOW DISSOLVED

Section 72. Dissolution, etc. of attachments, etc. Attachments and liens of every description upon registered land shall be continued, reduced, discharged and dissolved by any method sufficient in law, and to give effect to the continuance, reduction, discharge or dissolution thereof the certificate or other instrument for that purpose shall be registered with the Register of Deeds.

ATTACHMENT MAY BE ON:

EXECUTION SALE To enforce a lien of any description on registered land, any execution or affidavit to enforce such lien shall be filed with Register of Deeds where land lies Register in registration book and memorandum upon proper certificate of title as adverse claim or as an encumbrance To determine preferential rights between 2 liens: priority of registration of attachment

TAX SALE

Sale of land for collection of delinquent taxes and penalties due the government IN PERSONAM (all persons interested shall be notified so that they are given opportunity to be heard) Notice to be given to delinquent tax payer at his last known address Publication of notice must also be made and posted in a public and conspicuous place wherein property is situated and at the main entrance of provincial building Sale cannot affect rights of other lien holders unless given right to defend their rights: due process must be strictly observed Tax lien is superior to ordinary attachment.

REGISTRATION OF TAX LIEN

There is no need to register tax lien because it is automatically registered once the tax accrues. Real estate taxes, if unpaid, creates a statutory lien on the property pursuant to Section 44 of PD 1529. As to other taxes, liability therefor creates liens, claims or rights arising or existing under the laws and Constitution of the Philippines which are not by law required to appear of record in the Registry of Deeds in order to be valid against subsequent purchasers or encumbrancers of record. However, the sale of registered land to foreclose a tax lien needs to be registered.

PROCEDURE OF REGISTRATION OF TAX SALE

Officers return shall be submitted to Register of Deeds together with duplicate title Register in registration book Memorandum shall be entered in certificate as an adverse claim or encumbrance After period of redemption has expired and no redemption (2 years from registration of auction sale), the owners title is cancelled and a new one is issued to the buyer; Before cancellation, notice shall be sent to registered owner directing him to surrender his title and to show cause why it should not be cancelled;

COMMON POINTS: ATTACHMENTS AND LIENS

The surrender of the duplicate certificate is still required, as much as possible. If the owner refuses, the Register of Deeds directs him to produce it. If the owner does not comply, the court, after report of such fact from the Register of Deeds, will issue an order to produce the certificate. If the owner still refuses, the court may enforce the order by suitable process; Attachments and liens are all required to be registered, except tax liens; The order, instrument or process dissolving the attachments or liens must also be registered; If property is sold on execution after the attachments or liens are found meritorious and proper, the orders, instruments or processes that allowed the sale must also be registered.

ADVERSE CLAIM

A NOTICE OF ADVERSE CLAIM is a sworn statement that is filed with the Register of Deeds in order to protect the rights of the adverse claimant, and to put the public to notice about the claim. This can be done if the claimant has a claim of real right on the property itself. EFFECTIVITY. In PD 1529, it is stated that a notice of adverse claim is effective only for a 30-day period. HOWEVER, new decisions of the Supreme Court have stated that, even after the 30-day period has lapsed, if the notice of adverse claim has not yet been cancelled by a petition, it is still effective.

EFFECT As long as the notice of adverse claim is in effect, there are no innocent purchasers for value (since it is deemed that they have notice of such a claim). However, once there has been an order to cancel the adverse claim, provided that (1) a petition for cancellation was filed; (2) upon due notice and hearing, the notice of adverse claim loses its effect.

REGISTRATION OF LIS PENDENS

The purpose of a notice of lis pendens (pending litigation) is to keep the subject matter within the power of the court until the entry of final judgment. As such it creates merely a contingency and not a lien on the property subject to litigation.

EFFECTS OF REGISTRATION

While the property may be alienated, the purchaser will still be subject to final outcome of pending suit and secures title subject to the contingency; The Register of Deeds is duty bound to carry over the notice of lis pendens on all new titles to be issued. Note that mere registration of the notice is sufficient even if the duplicate certificate is not surrendered.

CANCELLATION OF LIS PENDENS Before final judgment, the court may order cancellation after showing that the notice was only for the purpose of molesting an adverse party or it is not necessary to protect rights of party who caused it to be registered; Register of Deeds may also cancel the notice of lis pendens by a verified petition of the party who caused such registration; It is also deemed cancelled upon the registration of a certificate of the clerk of court stating the manner of disposal of the proceeding.

OTHERS

INSOLVENCY (See Sections 83 and 84) EMINENT DOMAIN Section 85. Land taken by eminent domain. Whenever any registered land, or interest therein, is expropriated or taken by eminent domain, the National Government, province, city, municipality, or any other agency or instrumentality exercising such right shall file for registration in the proper Registry a certified copy of the judgment which shall state definitely, by an adequate description, the particular property or interest expropriated, the number of the certificate of title, and the nature of the public use. A memorandum of the right or interest taken shall be made on each certificate of title by the Register of Deeds, and where the fee simple title is taken, a new certificate shall be issued in favor of the National Government, province, city, municipality, or any other agency or instrumentality exercising such right for the land so taken. The legal expenses incident to the memorandum of registration or issuances incident to the memorandum of registration or issuance of a new certificate shall be for the account of the authority taking the land or interest therein.

UNREGISTRABLE PROPERTIES
BUREAU OF FORESTRY versus CA 53 SCRA 351 (1987)

As provided for under Sec. 6 of CA 141, which was lifted from Act 2874, the classification or reclassification of public lands into alienable or disposable, mineral, or forest lands is now a prerogative of the Executive Department of the government and not the courts. With these rules, there should be no more room for doubt that it is not the court which determines the classification of lands of the public domain into agricultural, forest or mineral but the Executive Branch of the government, through the Office of the President.

REPUBLIC versus VERA 120 SCRA 210 (1983)

A parcel of forest land is within the exclusive jurisdiction of the Bureau of Forestry and beyond the power and jurisdiction of the cadastral court to register under the Torrens system.

REPUBLIC versus HEIRS OF ALEJAGA 393 SCRA 361 (2002)

The State has an imprescriptible right to cause the reversion of a piece of property belonging to the public domain if title has been acquired through fraudulent means.

REPUBLIC versus SOUTHSIDE HOMEOWNERS G.R. No. 156951 & 173408, September 22, 2006

Proclamation No 423, which established a military reservation known as Fort William McKinley later renamed Fort Bonifacio Military Reservation, was issued by former President Carlos Garcia. Areas specified in the Proclamation were withdrawn from sales and settlements and were reserved for military purposes. Several presidential proclamations would later be issued excluding certain defined areas from the operation of Proclamation 423. What is mainly sought to be declared as a nullity in this petition is the title over the parcels of land that are referred to as JUSMAG housing are in Fort Bonifacio being occupied by active and retired military officers and their families. SHAI, a non-stock corporation consisting mostly of wives of military officers, was able to secure title in its name over the bulk, if not the entire, JUSMAG area. The TCT was issued by the Rizal Registry on the basis of a notarized deed of sale purportedly executed by then Land Management Bureau Director Abelardo Palad Jr. The investigation conducted by the DOJ, however, reported land scams at the FBMR and also finding that the signature of Palad was forged. In 1993, then President Ramos ordered the OSG to institute an action towards the cancellation of TCT No. 15084 in SHAIs name as well as the title acquired by the Navy Officers Village Association (NOVA) over a bigger parcel of land within the reservation.

As regards the issue of inalienability, the Court upheld the contention of the Republic that the JUSMAG area is inalienable, the same having not effectively been separated from the military reservation and declared as alienable and disposable. Until a given parcel of land is released from its classification as part of the military reservation zone and reclassified by law or by presidential proclamation as disposable and alienable, its status as part of a military reservation remains, even if incidentally it is devoted for a purpose other than as a military camp or for defense. SHAI had not pointed to any proclamation or legislative act for that matter segregating the property from the reservation and classifying the same as alienable lands of public domain. Furthermore, the Constitution also forbids private corporations from acquiring any kind of alienable public land except through lease for a limited period. The whole conveyance process was also suspicious since the whole process was accomplished only in one day.

DEALINGS WITH UNREGISTERED LANDS

For unregistered lands, we still follow the deeds registration system because, for some reason or another, such lands cannot yet be or have not yet been registered under the Torrens system. Thus, for dealings in unregistered lands, only the instrument of conveyance is registered.

WHAT ARE DEEMED UNREGISTERED LANDS?

Those lands that are not registered under the Torrens system; Those lands originally registered under the Spanish Mortgage Law. The reason for the inclusion of those lands is Presidential Decree No. 892, promulgated on February 16, 1976, which discontinued the Spanish mortgage system of registration and of the use of Spanish titles as evidence in land registration proceedings; Unregistered lands under PD 27, which declared tenants-farmers as owners of certain portions of the land they till, but the obligations imposed by law were not fulfilled by the grantees.

STATEMENT OF THE RULE

No deed, conveyance, mortgage, lease, or other voluntary instrument affecting land not registered under the Torrens system shall be valid, except as between the parties thereto, unless such instrument shall have been recorded, in the manner prescribed under Section 113 of PD 1529, in the office of the Register of Deeds for the province or city where the land lies.

WHAT DEALINGS ARE COVERED?

Both voluntary (Section 113) and involuntary dealings are covered. Tax sale, attachment and levy, notice of lis pendens, adverse claim and other instruments in the nature of involuntary dealings with respect to unregistered lands, if made in the form sufficient in law, shall likewise be admissible to record under this section (Section 113(d)). The opening paragraph of Section 113 declares, in substance, that no instrument or deed affecting rights to real property not registered under the Torrens system shall be valid except as between the parties thereto, until such instrument or deed shall have been registered in the manner prescribed therein. This provision cannot be interpreted to include conveyances made by ministerial officers, such as sheriffs deeds. It contemplates only instruments as may be created through agreement between parties.

HOW IS RECORDING MADE?

The Register of Deeds shall keep a primary entry book and a registration book; The primary entry book shall contain an entry number, names of parties, nature of the document, and the date, hour and minute it was presented; The interested party shall present the instrument to the Register of Deeds. If the Register of Deeds finds the same to be in order, he will cause the same to be registered. If found defective, the Register of Deeds will refuse registration in writing and cite the reason for his refusal.

The recording shall be effected by annotating on the registration book after the same shall have been entered in the primary entry book; After recording, the Register of Deeds shall endorse on the original of the instrument the file number and the date as well as the hour and minute when the instrument is received, returning to the registrant the duplicate of the instrument with a certification that he has recorded the same.

REFUSAL OF REGISTRATION

Under Section 117, when the Register of Deeds is in doubt with regard to the proper step to be taken or memorandum to be made in pursuance of any deed, mortgage or other instrument presented to him for registration, the question shall be submitted to the Commissioner of Land Registration by the Register of Deeds. Where the instrument is denied registration, the Register of Deeds shall notify the interested party in writing, setting forth the defects of the instrument or legal grounds relied upon, and advising him that if he is not agreeable to such ruling, he may, without withdrawing the documents from the Registry, elevate the matter by consulta within five days from receipt of notice of the denial of registration to the Commissioner of Land Registration.

RECORDING IS WITHOUT PREJUDICE TO A THIRD PERSON WITH BETTER RIGHT

The registration of an instrument affecting unregistered land binds third persons after registration but yields to third persons with better rights acquired prior to registration. In this sense, registration has a limited barring effect, the reason being no strict investigation is involved under this process.

UNDER PD 266

After the tenant-farmer shall have fully complied with the requirements for a grant of title under Presidential Decree No. 27, an Emancipation Patent and/or Grant shall be issued by the Department of Agrarian Reform on the basis of a duly approved survey plan. If the patent or grant affects unregistered lands previously recorded under Section one, the filing of the Emancipation Patent and/or Grant with the Register of Deeds for the province or city where the land is situated, shall forthwith bring the land under the operation of Act 496 (Public Land Act), as amended, and the same shall henceforth be considered registered lands. It shall thus be the duty of the Register of Deeds, after the entry of the patent and/or grant in the corresponding registration book, to enter an original certificate of title for such registered land, and issue an owner's duplicate certificate to the grantee.