Procedure in registering a deed of conveyance

Owner:

Execute and register the proper deed of

conveyance
form sufficient in law

Register of Deeds:
Entry in the registration book
Prepare a new certificate of title
Shall note upon the Original and Duplicate
Title the:
Date of the conveyance
Volume and page of the registration
bookin which the new certificate is
registered
Reference number
*Original and Owners Duplicate shall be stamped
CANCELLED
*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
What if the conveyance involves portion of land?
No transfer of certificate to the Grantee shall be
issued as provided in Section 50

Annotation of Grantors Certificate of Title

Filing of plan and technical description for
annotation (once approved)
Issuance of new certificate of title to the
grantee for the portion conveyed

*The grantor may also request a new certificate of

title under his name for the remaining unconveyed
land
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(Sec59)
L.P. Leviste & Co. v. Noblejas, (89 SCRA 520)
that between two involuntary documents, the earlier
entry prevails. Where, however, 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 be issued
to the adverse claimant

What is Mortgage?
contract in which the debtor guarantees to
the creditor the fulfillment of a principal obligation,
subjecting for the faithful compliance therewith a real
property in case of non fulfillment of said obligation
at the time stipulated

No certificate shall be issued

Issued certificate prior to the effectivity of
P.D. 1529 is deemed cancelled
Issued certificate shall immediately be
surrendered to R.D.

Effect of mortgage covering non registrable land

Certificate of title covering property of public
domain classified as as forest or timber or
mineral land is void
Even in the of innocent purchaser
Non impairment clause cant be used as a
defense
Valid exercise of the police power of the
State
Mortgage lien is a right in rem which follows the
Property
Mortgage subsists notwithstanding a change
in ownership
the lien annotated on the title subsists and is
carried over to the new transfer certificates
of title
all subsequent purchasers must respect the
mortgage whether the transfer to them be
with or without the consent of the
mortgagee, for such mortgage until
discharged follows the property
Equitable mortgage.
one which, although lacking in some formality, form
or words, or other requisites demanded by a statute,
nevertheless reveals the intention of the parties to
charge a real property as security for a debt, and
contains nothing impossible or contrary to law
Olea vs Ca (247 SCRA 274)
A contract should be construed as a mortgage or a
lien instead of a pacto de retro sale
When the terms are ambiguous
or its execution is incompatible and inconsistent
with the theory of sale
Registration of Mortgage or Lease

Upon presentation for registration of the

deed of mortgage or lease together with
the owners
duplicate, the Register of Deeds shall
enter upon the original of the certificate
of title and also upon the owners
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 (Sec 61)

It puts the whole world on

constructive notice of its existence
and warns everyone who thereafter
deals with the property on which
it was constituted that he would
have to reckon with that
encumbrance

Gonzales v. IAC 157 SCRA 187)

The rule is that where the Torrens tile of

the land was in the name of the
mortgagor and later give as security for a
bank loan. Subsequent declaration of said
title as null and void is not a ground of
nullifying the mortgage right of the bank,
acted in good faith. Being thus an
innocent mortgagee for value, its right or
lien upon the land mortgaged must be
respected and protected, even if the
mortgagors obtained their title thereto
thru fraud
Effect of lis pendens

Is the unrecorded mortgage valid

and binding?
Yes,It is binding upon the parties.

Rights of Innocent purchaser for

value

What if Mortgagor obtained his title

thereto through fraud and mortgage the
land to the Innocent mortgagee for
value?
General Rule: Pledgor or mortgagor be
the absolute owner of the thing pledged
or mortgaged
Exception: Innocent Purchaser for value
Rural Bank of Sariaya vs Yacon (175
Scra 62)
where innocent third persons relying on
the correctness of the certificate thus
issued, acquire rights over the property,
the court cannot disregard such rights.
The lien of the petitioner, an innocent
mortgagee for value, must be
respected and
protected
Rule with respect to Banks
Though bank is not required, before
accepting a mortgage, to make
an investigation of the title of the
property being given as security.
Bank business is affected with
Public Interest
Hence said principle is not
applicable
However,

notice of lis pendens is an

announcement to the whole world
that a particular real property is in
litigation
serves as a warning that one who
acquires an interest over said
property does so at his
own risk
so that he gambles on the results
of the litigation over said property.
Notice of lis pendens cannot in any
way prejudice the mortgage
previously registered

Effect of a forged deed

registered owner has not been

shown to have been negligent or in
connivance with
the forger
the mortgage cannot be enforced
against the owner

Principle of equity

as between two innocent persons, one of

whom must suffer the consequences of a
breach of trust, the one who made it
possible by his act of confidence must
bear the loss
Unrecorded sale of a prior date vs.
recorded mortgage on a later date
Reyes v. De Leon (20 Scra 369)

unrecorded sale of a prior date is

preferred over mortgage under Act
3344 on a later date

if the original owner had parted

with his ownership of the thing sold
then he no longer had the
ownership and free disposal of that
thing so as to be able to mortgage
it again
Registration of the mortgage under
Act No. 3344 would, in such case,
be of no moment since it is
understood to be without prejudice
to the better right of third
parties.2 Nor would it avail the
mortgagee any to assert that he is
in actual possession of the property
for the execution of the
conveyance in a public instrument
earlier was equivalent to the
delivery of the thing sold to the
vendee.

Discharge or cancellation
Upon full payment of the
indebtedness
Or Expiration of lease agreement
Registered land may be discharged
or cancelled
by means of an instrument
executed by the mortgage or
lessee
in a form sufficient in law
filed with the Register of Deeds
appropriate memorandum upon
the certificate of title shall be made
A mortgage given to secure
advancements
is a continuing security and is not
discharged by repayment of the amount
named in the mortgage, until the full
amount of the advancements are paid.
Where the annotation on the back of a
certificate of title about a first mortgage
states that the mortgage secured
the payment of a certain sum of
money plus interest plus
other obligations arising
thereunder, there is no necessity for
any notation of the later loans on the
mortgagors title.

Pactum Commissorium
A stipulation in a contract of mortgage
that the ownership of the property would
automatically pass to the mortgagee in
case no redemption was effected within
the stipulated period is void .

QUIZ
Conveyance that involves portion of land, transfer of
certificate
to the Grantee shall be issued
(False,Sec 50 provides that NO transfer of certificate
to the Grantee shall be issued)

Notice of lis pendens cannot in any way

prejudice the mortgage previously
registered (True)
In registering deed of conveyance Only the Original
Certficate of Title shall be stamped CANCELLED
(False, also the Owners duplicate)
Issued certificate to the mortgagee or lessee prior to
the effectivity of P.D. 1529 is still valid
( False,deemed cancelled Sec 60)

When the mortgagor obtained their title

to the property thru and mortgage the
property ,the subsequent declaration of a
title as null and void is a valid ground to
nullify the mortgage right of an innocent

purchaser for value (False, XPN and RBS

vs Yacon)