SUBSEQUENT REGISTRATION

I. GENERAL PROVISIONS
SEC.51. Convenyance 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.
1. Formal requirements of contracts involving real property.
- Contracts are obligatory in whatever form they may have been entered into
provided that all the essential requirements for their validity are present.
Requisites:
a. consent of the contracting parties
b. object certain which is the subject matter of the contract
c. cause of the obligation which is established
- contract of sale of real property, even if not complete in form, as long as the
essential requisites of consent of the contracting parties, object and cause of
the obligation concur and they were clearly established to be present, is VALID
and EFFECTIVE as between the parties.
- Article 1357 NCC its enforceability is recognized as each contracting party is
granted the right to compel the other to execute the proper public instrument
so that the valid contract of sale of registered land can be duly registered and
can bind third persons.

(1) Form is important for validity, convenience and enforceability.
General Rule :
- Form is not important for the validity of a contract provided there is
consent, subject matter and cause.
- This rule applies only to consensual contracts.
- Absolute and indispensable requirement that a contract be proved
in a certain way, or that it be in some form in order that it may be
valid or enforceable.
- The sale of real estate, whether made as a result of private transaction
or foreclosure of execution sale, becomes legally effective against
third parties only from the date of registration.
(2) Contracts in a public instrument is only for convenience.
- Article 1358 of the NCC which requires the embodiment of certain contracts
in a public instrument, is only for convenience
-registration of the instrument only adversely affects third parties, and non-
compliance therewith does not adversely affect the validity of the contract or
the contractual rights and obligations of the parties thereunder.
(3) Contract perfected by mere consent
- a contract is perfected by mere consent.
- A contract of sale is perfected at the moment there is a meeting of minds
upon the thing which is the object of the contract and upon the price.
- Meeting of the Minds intent of the parties in entering into the contract
respecting the subject matter and the consideration thereof.





(1) BUT A FORGED DEED MAY BE THE BASIS OF A GOOD TITLE IN THE HANDS
OF A BONA FIDE PURCHASER.
- A fraudulent or forged document of sale may become the root of a valid title
if the certificate of title has already been transferred from the name of the true
owner to the name indicated by the forger, and while it remained that way, the
land was subsequently sold to an innocent purchaser. For then the vendee had
the right to rely upon what appeared in the certificate.
- Third persons relying on the correctness of the certificate of title issued,
acquire rights over the property, for the court cannot disregard such rights and
order the total cancellation of the certificate as that would impair public
confidence in the certificate.
Duran vs. IAC
BLondeau v. Nano
PNB v. CA and Chu Kim Kit
ILLUSTRATIVE CASES
a. Fule v. De Legare
b. Medina v. Chanco.

RULE WHEN OWNER IS NOT AT FAULT
Adriano v. Pangilinan
PNB v. CA
Joaquin v. Madrid
Solivel v. Francisco

RECOURSE OF THE AGGRIEVED PARTY
Veloso v. CA

RULE IN CASE OF DOUBLE SALE
- Governed by Article 1544 of th Civil Code:
Should it be immovable property, the ownership shall belong
to the person acquiring it who in good faith first recorded it in
the Registry of Property.
- Rules on double or multiple sales apply only to purchasers in good
faith.
- Disqualifes any purchaser in bad faith.
- When the ownership or title passes to the buyer, the seller ceases to
have any title to transfer to any third person, the seller ceases to have
any title to transfer to any third person. If the seller sells constructive
knowledge of the prior sale, he cannot be considered a registrant in
good faith.
- In case a title is issued to the second buyer, the first buyer may seek
reconveyance of the property subject of the sale.
Remalante v. Tibe
Espiritu and Apostol v. Valerio

- When two or more transfer certificates of title are issued to different
persons for the same lots, or subdivisions thereof, due to the fact that
the original title was not cancelled when the first transfer certificates
of title were issued, the earlier in date prevails. (he who is first in
time, is preferred in right.)
Garcia v. CA

(1) Remedy of the Aggrieved Party
Gatioan v. Gaffud



4. Mortgagee in good faith
- This doctrine is the exception to the rule on when mortgage
should be done by the absolute owner of the property
mortgaged

- A mortgagee has a right to rely in good faith on the certificate of
title of the mortgagor to the property given as security and in the
absence of any sign that might arouse suspicion, has no
obligation to undertake further investigation.
- Hence, even if the mortgagor is not the real owner of, or doesnt
have a valid title to, the mortgaged property, the mortgagee in
good faith nevertheless is entitled to protection
Pennular v. PNB
Llanto v. Alzona

RULE WITH RESPECT BANKING INSTITUTIONS

- Rule : for persons who are engaged in real estate or financing
business, they should take the necessary precaution expected of
a prudent man to ascertain the status and condition of the
properties offered as collateral and to verify the identitiy of the
perons they transact business with, particularly those who claim to
to be the registered owner of the property, so that they may be
considered mortgagees in good faith.

- Before a bank grants a loan on the security of land, it first
undertakes a careful examination of the title of the applicant as
well as physical and on-the-spot investigation of the land itself
offered as security
- If it didnt conduct such examination, it must be held to be guilty
of gross negligence in granting the loans, and cannot be
considered as a mortgagee in good faith within the
contemplation of law
Rural Bank of Compostela v. CA









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 o the owner's
duplicate. The cancellation or extinguishment of such interests shall be
registered in the same manner.

MEMORANDUM OF ENCUMBERANCES
- Dorsal side of the certificate of title
- All interests in the registered land less than ownership which shall
serve as a notice to third persons of the instrument affecting the
property
- A similar entry shall be made on the owners duplicate certificate
of title

Section 55. Grantee's name, nationality, etc., to be stated. Every deed or
other voluntary instrument presented for registration shall contain or have
endorsed upon it the full name, nationality, residence and postal address
of the grantee or other person acquiring or claiming an interest under
such instrument, and every deed shall also state whether the grantee is
married or unmarried, and if married, the name in full of the husband or
wife. If the grantee is a corporation or association, the instrument must
contain a recital to show that such corporation or association is legally
qualified to acquire private lands. Any change in the residence or postal
address of such person shall be endorsed by the Register of Deeds on the
original copy of the corresponding certificate of title, upon receiving a
sworn statement of suchchange. All names and addresses shall also be
entered on all certificates. Notices and processed issued in relation to
registered land in pursuance of this Decree may be served upon any
person in interest by mailing the same to the addresses given, and shall
be binding, whether such person resides within or without the Philippines,
but the court may, in its discretion, require further or other notice to be
given in any case, if in its opinion the interest ofjustice so requires.

CONTENTS OF THE INSTRUMENT PRESENTED FOR REGISTRATION
- Full name, nationality, residence and postal address of the
grantee or other person acquiring or claiming an interest under
such instrument, and every deed shall also state whether the
grantee is married or unmarried, and if married, the name in full of
the husband or wife. If the grantee is a corporation or association,
the instrument must contain a recital to show that such
corporation or association is legally qualified to acquire private
lands
- Section further provides that notices and processes affecting the
land shall be served upon the person in interest at the address
given, which shall be binding whether or not such person is within
or outside the Philippines.


Section 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 manneras 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.


PRIMARY ENTRY BOOK OR DAY BOOK
- The primary entry book or day book is a record of all instruments,
including copies of writs and processes, affecting registered
lands, which are entered by the RD in the order of their filing,
upon payment of the proper fees
- The recording is a preliminary process in registration and shall note
the date, hour, and minute of receipt of said instruments
- An instrument shall be regarded as registered only from the time it
is noted
- Every deed of instrument shall be numbered and endorsed by
the RD with proper reference to the certificate of title
- All records and papers relative to registered land shall be open
for examination by the public, subject to such reasonable
regulations as the RD may prescribe
- All deeds and voluntary instruments and copies thereof shall be
attested and sealed with the RD and copies with the
corresponding file number shall be delivered to the person
presenting them

DEEDS ENTERED IN THE DAY BOOK CONSIDERED REGISTERED FROM THE
MOMENT THEY ARE SO NOTED
- In an execution sale, the purchaser acquires only such right or
interest as the judgment debtor had on the property at the time
of the sale
- It follows that if at the time the judgment debtor had no more
right to or interest in the property because he had already sold it
to another, then the purchaser acquires nothing
- Thus, where the judgment debtor had already deeded the
property and delivered the certificate to the RD for registration
and paid the corresponding fees, the act of registration operated
to convey the property to the buyer
- CASE OF LEVIN v. BASS: An innocent purchaser for value of
registered land becomes the registered owner and in the
contemplation of law the holder of a certificate thereof the
moment he presents and files a duly notarized deed of sale and
the same is entered on the day book and at the same time, he
surrenders or presents the owners duplicate certificate of title to
the property sold and pays the full amount of registration fees,
because what remains to be done lies not within his power to
perform.

RECORD IS CONSTRUCTIVE NOTICE OF ITS CONTENTS
- This is in relation to the question of may the purchaser of land
which has been included in a second original certificate even be
regarded as an innocent purchaser as against the rights or
interest of the owner of the first certificate, his heirs, assigns, or
vendee?





CONVEYANCES AND TRANSFERS
Section 57. Procedure in registration of conveyances. An owner desiring to
convey his registered land in fee simple shall execute and register a deed
of conveyance in a form sufficient in law. 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. The Register of Deeds shall 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. The original and the owner's
duplicate of the grantor's certificate shall be stamped "canceled". The
deed of conveyance shall be filled and indorsed with the number and the
place of registration of the certificate of title of the land conveyed.

PROCEDURE IN REGISTERING A DEED OF CONVEYANCE
- An owner who desires to convey the land covered by his title to
another shall execute the proper deed of conveyance, in proper
form, and present the same, together with the owners duplicate
certificate to the RD from entry and registration
- The RD shall enter in the registration book the fact of conveyance
and prepare a new certificate of title in the name of the grantee,
the owners duplicate of which shall be delivered to him
- The RD shall note upon the original and duplicate certificate:
a. the date of conveyance
b. volume and page of the registration book in which the
certificate is registered, and
c. a reference by number to the last preceding
`certificates.
- The Original and Owners duplicate of grantors certificate shall
be stamped CANCELLED
- The deed of Conveyance shall be filed with a notation of the
number and place of registration of the certificate of title of the
land conveyed.

Section 58. Procedure where conveyance involves portion of land. 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 plan of such land showing all the portions
or lots into which it has been subdivided and the corresponding technical
descriptions shall have been verified and approved pursuant to Section 50
of this Decree. Meanwhile, 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, and every certificate with such memorandum shall
be effectual for the purpose of showing the grantee's title to the portion
conveyed to him, pending the actual issuance of the corresponding
certificate in his name.

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 so desires, his certificate may be canceled
totally and a new one issued to him describing therein the remaining
portion: Provided, however, that pending approval of said plan, no further
registration or annotation of any subsequent deed or other voluntary
instrument involving the unsegregated portion conveyed shall be effected
by the Register of Deeds, except where such unsegregated portion was
purchased from the Government or any of its instrumentalities. If the land
has been subdivided into several lots, designated by numbers or letters,
the Register of Deeds may, if desired by the grantor, instead of canceling
the latter's certificate and issuing a new one to the same for the remaining
unconveyed lots, enter on said certificate and on its owner's duplicate a
memorandum of such 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.

PROCEDURE WHERE ONLY PORTIONS OF LAND ARE CONVEYED
- The RD shall not issue any TCT to the grantee until a plan of such
land showing the portion or portions into which it has
beensubdivided and the corresponding technical descriptions
shall have been verified and approved
- The deed of conveyance may in the meanwhile be annotated
by way of memorandum on the grantors certificate of title,
which shall serve as notice to third persons on the fact of
conveyance to show and recognize the grantees title to the
portion thus conveyed pending actual issuance to him of the
corresponding transfer certificate of title
- Upon approval of the plan and technical descriptions of the
specific portions into which the land has been subdivided, the
same shall be filed with the office of the RD for annotation on the
corresponding certificate of title
- The RD shall issue a new TCT to the grantee for the portion
conveyed to him upon cancellation of the grantors certificate as
to said portion
- But if the grantor so desires, his certificate of title may be totally
cancelled and a new one issued to him for the remaining portion
of the land
- Pending approval of the plan, no further registration or any
annotation of any deed or voluntary instrument affecting the
unsegregated portion shall be made by the RD except where
such portion was purchased from the government or any of its
instrumentalities
- For the Register of Deeds to issue a new certificate of title over a
portion of land resulting from a subdivision- he must REQUIRE:
a. the submission of the approved subdivision plan
b. with the approved technical descriptions
c. corresponding owners duplicate certificate of title
- If the land has been subdivided into several lots, designated by
numbers or letters, the RD, IF REQUESTED BY THE GRANTOR, may simply
issue in his name a new certificate of title for the remaining unconveyed
lots, instead of cancelling his certificate of title.
- In said certificate, and on the owners duplicate the Register of Deeds
may enter a memorandum as to the fact of conveyance of a portion of
the land, the issuance to the grantee of a transfer certificate of title for
said portion and the cancellation of the grantors certificate insofar as
said portion is concerned.

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.

CARRYING OVER OF ENCUMBRANCES IN NEW CERTIFICATE
- Whenever registered land is conveyed, all subsisting
encumbrances or annotations appearing in the registration book
and noted on the certificate of title shall be carried over and
noted on the new certificate of title except where said
encumbrances or annotations are simultaneously released or
discharged.
- PURPOSE : to show that the grantee obtained the land or portion
thereof subject to subsisting encumbrances attached to the title
of his grantor.
- RULE : between two involuntary documents, the earlier entry
prevails.
- EXCEPTION : where the notice of lis pendens filed by a claimant,
refers to a lot different from that covered by the adverse claim of
another, the lis pendens, notwithstanding its prior registration,
cannot be carried over to the new title to the issued to the
adverse claimant.


MORTGAGES AND LEASES
Section 60. Mortgage or lease of registered land. Mortgage and leases
shall be registered in the manner provided in Section 54 of this Decree.
The owner of registered land may mortgage or lease it by executing the
deed in a form sufficient in law. Such deed of mortgage or lease and all
instruments which assign, extend, discharge or otherwise deal with the
mortgage or lease shall be registered, and shall take effect upon the title
only from time of registration.

No mortgagee's or lessee's duplicate certificate of title shall hereafter be
issued by the Registers of Deeds, and those issued prior to the effectivity of
this Decree are hereby deemed canceled and the holders thereof shall
immediately surrender the same to the Register of Deeds concerned.

ESSENCE OF MORTGAGE
- A property has been identified or set apart from the mass of
property of the debtor-mortgagor as security for the payment of
money or the fulfillment of obligation to answer the amount of
indebtedness, in case of default of payment
- RULE : in real estate mortgage, when the obligation is not paid
when due, the mortgagee has the right to foreclose the
mortgage and to have the property seized and sold in view of
applying the proceeds to the payment of the obligation.
- Foreclosure is valid when the debtors are in default in the
payment of their obligation.

(1) OBJECT OF MORTGAGE
Only the following property may be the object of mortgage:
a. Immovables;
b. Alienable real rights in accordance with the laws imposed
upon immovable

- Movables may be the object of a chattel mortgage
- REAL MORTGAGE a contract in which the debtor guarantees to
the creditor the fulfilment of a principal obligation, subjecting for
the faithful compliance with a real property in case of non-
fulfillment of said obligation at the time stipulated.

(2) REQUISITES OF MORTGAGE
- Article 2085 of the Civil Code
a. That they be constituted to secure the fulfilment of a principal
obligation
b. That the pledge or mortgagor be the absolute owner of the
thing pledged or mortgaged
c. That the persons constituting the pledge or mortgage have the
free disposal of their property, and in the absence thereof, that
they be legally authorized for the purpose

- Third persons who are not parties to the principal obligation may
secure the latter by pledging or mortgaging their own property.

CHARACTERISTICS OF A MORTGAGE
1. A REAL right. A mortgage binds a purchaser who knows of its
existence or if the mortgage was registered.
2. AN ACCESSORY CONTRACT If the principal obligation is void,
the mortgage is also void. But if a mortgage is void because it
was not made by the owner of the property, the principal
contract of loan may still be valid.
3. INDIVISBLE
4. INSEPERABLE The mortage adheres to the property regardless
of who its owner may subsequently be.
5. REAL PROPERTY by itself
6. LIMITATION ON OWNERSHIP - A mortgage encumbers, but does
not end ownership. Therefore, may be foreclosed.
- Mortgage extends to natural accessions, to the improvements,
growing fruits and the rents or income not yet received when the
obligation becomes due and to the amount of the indemnity
granted or owing to the proprietor from the insurers of the
property mortgaged, or in virtue of expropriation for public use,
with the declaration, amplification and limitations established by
law, whether the estate remains in the possession of the
mortgagor or it passes into the hands of a third person.

MORTGAGOR MUST BE THE OWNER OF THE PROPERTY MORTGAGED
-otherwise, the mortgage is void.
- A mortgagee has no right to eject the occupants of the property
mortgaged because a mortgage passes no title to the mortgagee.
- By mortgaging a piece of property, a debtor merely subjects it to lien but
the ownership thereof is not parted with.
- Mortgage regarded as nothing more than a mere lien, encumbrance
or security for a debt, passes no title or estate to the mortgagee and gives
him no right or claim to the possession of the property.
- Mortgagee does not acquire title to the mortgaged real estate unless he
purchases the same at public auction and the property is not redeemed
within the prescribed period.
- Third Persons who are not parties to a loan may secure the latter by
pledging or mortgaging their own property.
- As long as valid consent was given, the fact that the loans were solely for
the benefit of the borrower would not invalidate the mortgage with
respect to petitioners property.
- Absolutely simulated contract of sale VOID AB INITIO and transfers no
ownership right; cannot be validly mortgaged

MORTGAGE INVALID EVEN IN THE HANDS OF AN INNOCENT MORTGAGEE
WHERE THE TITLE COVERS NON-REGISTRABLE LAND

- Mortgages over non-disposable lands do not acquire protection
under the law
CASE OF LAND BANK v. REPUBLIC
- The court held : even assuming that LBP was to obtain its own TCT
over the property by means of its mortgage contract with Lourdes
Farms, the title must also be cancelled as it derived from an OCT
which was not validly issued.
- A certificate of title is void when it covers property of the public
domain classified as forest or timber or mineral land.
- Any title issued covering non-disposable lots even in the hands of
an alleged innocent purchaser for value shall be cancelled.
- The constitutional guarantee of non-impairment of contracts may
not be used to validate its interest over the land as mortgagee.
CASE OF DELA CRUZ v. CA
- While mortgagees, having entered into a contract with petitioner
as mortgagor are estopped from questioning the latters
ownership of the mortgaged property, it must be considered that
petitioner did not possess such the capacity to encumber the
land at the time for it had been classified as a forest land and
remained a part of the patrimonial property of the State.

MORTGAGE LIEN IS A RIGHT IN REM WHICH FOLLOWS THE PROPERTY
- Subjects the property upon which it is imposed, whoever the
possessor may be, to the fulfilment of the obligation for whose
security it was constituted.
- It is inseparable from the property mortgaged as it is a right in rem
a lien on the property
- Subsists even if there is a change in ownership personality of the
owner is disregarded
- A mortgage creates a real right which is enforceable against the
whole world.
- Even if the property is sold or its possession transferred to another,
the property remains subject to the fulfilment of the obligation.
- Buyer must respect the mortgage, if registered or if he knows of its
existence.
- If creditor forecloses the mortgage buyer will not be responsible
for deficiency for encumbrance is only on the property itself.
- If the mortgagor transfers the property and the debt to another
WITHOUT the creditors consent the mortgagor would still be
personally liable since the attempted novation would not be
valid.

Section 61. Registration. Upon presentation for registration of the
deed of mortgage or lease together with the owner's duplicate, the
Register of Deeds shall enter upon the original of the certificate of
title and also upon the owner's duplicate certificate a memorandum
thereof, the date and time of filing and the file number assigned to
the deed, and shall sign the said memorandum. He shall also note
on the deed the date and time of filing and a reference to the
volume and page of the registration book in which it is registered.





Section 69. Attachments. An attachment, or a copy of any writ, order or
process issued by a court of record, intended to create or preserve any
lien, status, right, or attachment upon registered land, shall be filed and
registered in the Registry of Deeds for the province or city in which the
land lies, and, in addition to the particulars required in such papers for
registration, shall contain a reference to the number of the certificate of
title to be affected and the registered owner or owners thereof, and also if
the attachment, order, process or lien is not claimed on all the land in any
certificate of title a description sufficiently accurate for identification of the
land or interest intended to be affected. A restraining order, injunction or
mandamus issued by the court shall be entered and registered on the
certificate of title affected, free of charge.

NATURE OF ATTACHMENT
- ATTACHMENT - Legal process of seizing anothers property in
accordance with a writ or judicial order for the purpose of
securing satisfaction of a judgment yet to be rendered
- Writ of attachment - used primarily to seize the debtors property
to seize the debtors property in order to secure the debt or claim
of the creditor in the event that a judgment is rendered
- Jurisprudence: a party who delivers a notice of attachment to
the RD and pays the corresponding fees has a right to presume
that the official would perform his duty properly
- In involuntary registration- entry thereof in the day book is
sufficient notice to all persons of such adverse claim. The notice of
course has to be annotated at the back of the corresponding
original certificate of title, but this is an official duty of the RD
which may be presumed to have been regularly performed
- CASE : DBP v. Acting RD: current doctrine thus seems to be that
entry alone produces the effect of registration, whether the
transaction entered is a voluntary or involuntary one, so long as
the registrant has complied with all that is required of him for
purposes of entry and annotation, and nothing more remains to
be done but a duty incumbent solely on the RD
- Section 69 states that an attachment or any writ, order or process
intended to create or preserve any lien upon registered land shall
be filed and registered in the RD and shall contain a reference to
the number of the certificate of title to be affected, the registered
owner thereof and a description of the land or interest therein






GROUNDS UPON WHICH ATTACHMENT MAY ISSUE
(Section 1, Rule 57 of the Rules of Court)
At the commencement of the action or at any time before entry of
judgment, a plaintiff or proper party may have the property of the
adverse party attached as security for the satisfaction of any judgment
that may be recovered in, among others, the following cases:

1. In an action to recover the possession of property unjustly or
fraudulently taken, detained or converted, when the property or any part
thereof, has been concealed, removed or disposed of, to prevent its
being found or taken by the applicant or an authorized person

2. In an action against a party who has been guilty of fraud in contracting
the debt or incurring an obligation upon which the action is brought, or in
the performance thereof

3. In an action against a party who has removed or disposed of his
property, or is about to do so, with intent to defraud his creditors

- A PRELIMINARY ATTACHMENT - may be validly applied for and
granted ex parte before a defendant is summoned since the
phrase at the commencement of action refers to the date of
the filing of the complaint and before the summons is served on
the defendant.

HOW ATTACHMENT EFFECTED
(Section 7, Rule 57 of the Rules of Court)
Sec. 7. Attachment of real and personal property; recording thereof.
Real and personal property shall be attached by the sheriff executing the
writ in the following manner:

(a) Real property, or growing crops thereon, or any interest therein,
standing uponthe record of the registry of deed of the province in the
name of the party against whom attachment is issued, or not appearing
at all upon such records, or belonging to the party against whom
attachment is issued and held by any other person, or standing on the
records of the registry of deeds in the name of any other person, by filing
with the registry of deeds a copy of the order, together with a description
of the property attached, and a notice that it is attached, or that such
real property and any interest therein held by or standing in the name of
such other person are attached, and by leaving a copy of such order,
description, and notice with the occupant of the property, if any, or with
such other person or his agent if found within the province. Where the
property has been brought under the operation of either the Land
Registration Act or the Property Registration Decree, the notice shall
contain a reference to the number of the certificate of title, the volume
and page in the registration book where the certificate is registered, and
the registered owner or owners thereof. The registrar of deed must index
attachments filed under this section in the names of the applicant, the
adverse party, or the person by whom the property is held or in whose
name it stands in the records. If the attachment is not claimed on the
entire area of the land covered by the certificate of title, a description
sufficiently accurate for the identification of the land or interest to be
affected shall be included in the registration of
such attachment;

(b) Personal property capable of manual delivery, by taking and safely
keeping it in his custody, after issuing the corresponding receipt therefor;

(c) Stocks or shares, or an interest in stocks or shares, of any corporation
or company, by leaving with the president or managing agent thereof, a
copy of the writ, and a notice stating that the stock or interest of the party
against whom the attachment is issued is attached in pursuance of such
writ;

(d) Debts and credits, including bank deposits, financial interest, royalties,
commissions, and other personal property not capable of manual
delivery, by leaving with the person owing such debts, or having in his
possession or under his control, such credits or other personal property, or
with his agent, a copy of the writ, and notice that the debts owing by him
to the party against whom attachment is issued, and the credits and
other personal property in his possession, or under his control, belonging to
said party, are attached in pursuance of such writ;

(e) The interest of the party whom attachment is issued in property
belonging to the estate of the decedent, wether as heir, legatee, or
devisee, by serving the executor or administrator or other personal
representative of the decedent with a copy of the writ and notice that
said interest is attached. A copy of said writ of attachment and of said
notice shall also be filed in the office of the clerk of the court in which said
estate is being settled and served upon the heir, legatee or devisee
concerned.

If the property sought to be attached is in custodia legis, a copy of the
writ of attachment shall be filed with the proper court or quasi-judicial
agency, and notice of the attachment served upon the custodian of
such property.



REGISTRATION OF ATTACHMENT, WRITS, AND RELATED PROCESSES
- An attachment, or copy of writ, order or process issued by the
court intended to create or preserve any lien, status, right or
attachment upon registered land shall be filed and registered in
the RD for the province or city where the land lies, and in addition
to the particulars required in such papers for registration, shall
contain a reference to the number of the certificate of title
affected and the registered owner or owners thereof, and also, if
the attachment, order, process or lien is not claimed on all the
land in any certificate of title, a description sufficiently accurate
for identification of the land or interest intended to be affected
- A restraining order, injunction, or mandamus issued by the court
shall be entered or registered on the certificate of title affected,
free of charge

KNOWLEDGE OF A PRIOR UNREGISTERED INTEREST IS EQUIVALENT TO
REGISTRATION
- CASE OF RUIZ v. CA In case of conflict between a vendee and an
attaching creditor, an attaching creditor who registers the order
of attachment and the sale of property to him as the highest
bidder acquires a valid title to the property, as against a vendee
who had previously bought the same property from the registered
owner but who failed to register his deed of sale
- Registration is the operative act that binds or affects the land
insofar as third persons are concernednotice to the whole world
- But where a party has knowledge of a prior existing interest which
is unregistered at the time he acquired a right to the same land,
his knowledge of that prior unregistered interest has the effect of
registration as to him. Knowledge of an unregistered sale is
equivalent to registration

DISCHARGE OF ATTACHMENT
- An attachment may be discharged upon giving a counterclaim
or on the ground that the same was improperly or irregularly
issued or enforced, or that the bond is insufficient
- By the dissolution of an attachment levied on the defendants
property, through the filing of the bond, the released property
becomes free and no longer liable to the results of the
proceeding in which it was attached. Consequently, the act of
the defendant, whose property has been attached, in
mortgaging the released property to a third person, is not a
conveyance in fraud of creditors, since the transaction is legal
and valid, and since the presumption of fraud doesnt arise when
there is security in favour of the creditor

Section 70. Adverse claim. Whoever claims any part or interest in
registered land adverse to the registered owner, arising subsequent to the
date of the original registration, may, if no other provision is made in this
Decree for registering the same, make a statement in writing setting forth
fully his alleged right or interest, and how or under whom acquired, a
reference to the number of the certificate of title of the registered owner,
the name of the registered owner, and a description of the land in which
the right or interest is claimed.

The statement shall be signed and sworn to, and shall state the adverse
claimant's residence, and a place at which all notices may be served
upon him. This statement shall be entitled to registration as an adverse
claim on the certificate of title. The adverse claim shall be effective for a
period of thirty days from the date of registration. After the lapse of said
period, the annotation of adverse claim may be canceled upon filing of a
verified petition therefor by the party in interest: Provided, however, that
after cancellation, no second adverse claim based on the same ground
shall be registered by the same claimant.

Before the lapse of thirty days aforesaid, any party in interest may file a
petition in the Court of First Instance where the land is situated for the
cancellation of the adverse claim, and the court shall grant a speedy
hearing upon the question of the validity of such adverse claim, and shall
render judgment as may be just and equitable. If the adverse claim is
adjudged to be invalid, the registration thereof shall be ordered canceled.
If, in any case, the court, after notice and hearing, shall find that the
adverse claim thus registered was frivolous, it may fine the claimant in an
amount not less than one thousand pesos nor more than five thousand
pesos, in its discretion. Before the lapse of thirty days, the claimant may
withdraw his adverse claim by filing with the Register of Deeds a sworn
petition to that effect.

ADVERSE CLAIM, PURPOSE
- Purpose of annotating the adverse claim on the title of the
disputed land is to apprise third persons that there is a controversy
over the ownership of the land and to preserve and protect the
right of the adverse claimant during the pendency of the
controversy
- Notice to third persons that any transaction regarding the
disputed land is subject to the outcome of the dispute
- Such is registered by filing a sworn statement with the RD of the
province where the property is located, setting forth the basis of
the claimed right together with other data pertinent thereto. The
registration of an adverse claim is expressly recognized under
Section 70. Where the notice of adverse claim is sufficient in law
and drawn up in accordance with existing requirements, it becomes
the ministerial duty of the RD to register the instrument without
unnecessary delay
- While the act of registration is the operative act which conveys or
affects the land insofar as third persons are concerned, the
subsequent sale of property covered by a certificate of title
CANNOT PREVAIL OVER AN ADVERSE CLAIM, duly sworn to and
annotated on the certificate of title previous the sale Section 70 is
divided into two partsfirst refers to the petition of the party who
claims any part or interest in the registered land, arising
subsequent to the date of the original registration, for the
registration of his adverse claim, which is a ministerial function of
the RD absent any defect on the face of the instrument. The
second refers to the petition filed in court by a party in interest for
the cancellation of the adverse claim upon showing the same is
invalid.

REGISTRATION OF ADVERSE CLAIM
- A lease over a parcel of land for a 10-year period, which could
not be registered because the owners duplicate of title wasnt
surrendered, could be registered as an adverse claim and the
owner couldnt be compelled to surrender the owners duplicate
of the title to that adverse claim could be annotated thereon
- If the adverse claim turns out to be invalid, the owner could ask
for its cancellation and, if found to be frivolous or vexatious, then
costs may be adjudged against the adverse claimant.
- The claim of a person that she has hereditary rights in the land
fraudulently registered in his sisters name, because the land
belonged to their mother whose estate is pending settlement in a
special proceeding, is registrable as an adverse claim

INCIDENTS WHICH MAY NOT BE REGISTERED AS ADVERSE CLAIM

- Where a guardianship proceeding is pending in court, it is proper
to annotate on the title of the land in question the pendency of
such a proceeding by means of a notice of lis pendens for the
purpose of alerting anyone who might wish to buy the land that
his purchase may be questioned later on. Since an adverse claim
and a notice of lis pendens have the same purpose, there would
be no need of maintaining the adverse claim. But a notice of levy
cannot prevail over an existing adverse claim inscribed in the
certificate of title
- The annotation of an adverse claim is a measure designed to
protect the interest of a person over a piece of real property
where the registration of such interest or right isnt otherwise
provided for by PD1529, and serves as a notice and warning to
third persons dealing with said property that someone is claiming
an interest on the same or a better right than the registered
owner thereof
- FOR THE SPECIAL REMEDY OF ADVERSE CLAIM TO BE AVAILED OF,
IT MUST BE SHOWN THAT THERE IS NO OTHER PROVISION RIGHT IN
THE PROPERTY.
- An adverse claim of ownership over a parcel of land registered
under the Torrens system based on prescription and adverse
possession cannot be registered as an adverse claimno title to
registered land in derogation of the title of the registered owner
shall be acquired by prescription or adverse possession. Hence,
the registration of such adverse claim will serve no useful purpose
and cannot validly and legally affect the parcel of land in
question.

REQUISITES OF AN ADVERSE CLAIM
1. The adverse claimant must state the following in writing
a. His alleged right or interest
b. How and under whom such alleged right or interest is
acquired
c. The description of the land in which the riht or interest is
claimed
d. The number of the certificate of title
2. The statement must be signed and sworn to before a notary public
or other officer authorized to administer oath
3. The claimant should state his residence or the place to which all
notices may be served upon him
REGISTRATION COURT MAY DETERMINE THE VALIDITY OF
ADVERSE CLAIM
- An adverse claim may be cancelled only after the claim is
adjudged invalid and unmeritorious by the court while passing
upon a case where the land involved is subject of the interest or
right being secured by the adverse claim.

ADVERSE CLAIM NOT IPSO JURE CANCELLED AFTER 30 DAYS;
HEARING NECESSARY.
- Sajonas v. CA
- RD cannot unilaterally cancel the adverse claim. There must be a
court hearing for the purpose. The reason for this is to afford the
adverse claimant an opportunity to be heard, providing a venue
where the propriety of his claimed interest can be established or
revoked, all for the purpose of determining at least the existence
of any encumbrance on the title arising from such adverse claim.

PURCHASER NOT BOUND BY ANY LIEN NOT ENTERED IN THE
CERTIFICATE OF TITLE

- A purchaser who buys land from the registered owner without any
adverse claim noted on the title except two cautionary entries
under Rule 74 of the Rules of Court, and without any notice of any
flaw or defect on the face of said title, is considered an innocent
purchaser for value.
- This is true where the purchaser did not simply rely upon the face
of the title and employed the services of a counsel who assured
him that everything was in order after verifying the title.

FORECLOSURE SALE RETROACTS TO REGISTRATION OF MORTGAGE
- The settled doctrine is that the effects of a foreclosure sale
retroact to the date of registration of the mortgage.
- Hence, if the adverse claim is registered only after the annotation
of the mortgage at the back of the certificate of title, the adverse
claim could not effect the rights of the mortgagee; and the fact
that the foreclosure of the mortgage and the consequent public
auction sale have been effected long after the annotation of
theadverse claim is of no moment, because the foreclosure sale
- retroacts to the date of registration of the mortgage.

Section 71. Surrender of certificate in involuntary dealings. If an
attachment or other lien in the nature of involuntary dealing in
registered land is registered, and the duplicate certificate is not
presented at the time of registration, the Register of Deeds shall,
within thirty-six hours thereafter, send notice by mail to the
registered owner, stating that such paper has been registered, and
requesting him to send or produce his duplicate certificate so that a
memorandum of the attachment or other lien may be made
thereon. If the owner neglects or refuses to comply within a
reasonable time, the Register of Deeds shall report the matter to
the court, and it shall, after notice, enter an order to the owner, to
produce his certificate at a time and place named therein, and may
enforce the order by suitable process.
COURT MAY COMPEL SURRENDER OF CERTIFICATE OF TITLE AS AN
INCIDENT IN THE MAIN CASE
RD is authorized to require the registered owner to produce the
owners duplicate certificate in order that an attachment or other
lien in the nature of involuntary dealing, may be annotated
thereon
If the owner refuses or neglects to comply within reasonable time,
he shall report such fact to the proper RTC which shall, after
notice, direct the owner to produce his certificate at a time and
place specified in its order
MORTGAGE LIEN FOLLOWS MORTGAGED PROPERTY
Any lien annotated on the previous certificates of title which
subsists should be incorporated in or carried over to the new
transfer certificate of title. This is true even in the case of a real
estate mortgage because pursuant to Article 2126 of the CC, the
mortgage directly and immediately subjects the property whoever
the possessor may be, to the fulfillment of the obligation for
whose security it was constituted.