Beruflich Dokumente
Kultur Dokumente
GENERAL PROVISIONS
GENERAL PROVISIONS
BY: MA. ANGELA LEONOR C. AGUINALDO
ATENEO LAW 2D BATCH 2010
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 3 of 127
The Law of the Indies was followed by the Ley Hipotecaria or the sharing agreements with Filipino citizens, or corporations or
Mortgage Law of 1893. This law provided for the systematic associations at least sixty per centum of whose capital is owned
registration of titles and deeds as well as possessory claims by such citizens. Such agreements may be for a period not
The Maura Law: was partly an amendment and was the last exceeding twenty-five years, renewable for not more than twenty-
Spanish land law promulgated in the Philippines, which required five years, and under such terms and conditions as may be
the adjustment or registration of all agricultural lands, provided by law. In cases of water rights for irrigation, water
otherwise the lands shall revert to the State supply fisheries, or industrial uses other than the development of
water power, beneficial use may be the measure and limit of the
TAKE NOTE THAT THE REGALIAN DOCTRINE IS ENSHRINED IN grant.”
OUR PRESENT AND PAST CONSTITUTIONS The abovementioned provision provides that except for
agricultural lands for public domain which alone may be alienated,
THE 1987 CONSTITUTION PROVIDES UNDER NATIONAL forest or timber, and mineral lands, as well as all other natural
ECONOMY AND PATRIMONY THE FOLLOWING— resources must remain with the State, the exploration,
“ Section 2. All lands of the public domain, waters, minerals, coal, development and utilization of which shall be subject to its full
petroleum, and other mineral oils, all forces of potential energy, control and supervision albeit allowing it to enter into co-
fisheries, forests or timber, wildlife, flora and fauna, and other production, joint venture or production-sharing agreements, or
natural resources are owned by the State. With the exception into agreements with foreign-owned corporations involving
of agricultural lands, all other natural resources shall not be technical or financial assistance for large-scale exploration,
alienated. The exploration, development, and utilization of development, and utilization
natural resources shall be under the full control and supervision
of the State. The State may directly undertake such activities, THE 1987 PROVISION HAD ITS ROOTS IN THE 1935 CONSTITUTION
or it may enter into co-production, joint venture, or production- WHICH PROVIDES—
Section 4. Land Registration Commission. In order to have a more efficient execution of the laws relative to the registration of lands,
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 10 of 127
All officials and employees of the Commission except Registers of (c) Be the central repository of records relative to original
Deeds shall be appointed by the Secretary of Justice upon registration of lands titled under the Torrens system, including
recommendation of the Commissioner of Land Registration. subdivision and consolidation plans of titled lands.
(c) Resolve cases elevated en consulta by, or on appeal from FUNCTIONS OF THE AUTHORITY
decision of, Registers of Deeds; 1. Extend speedy and effective assistance to the Department of
Agrarian Reform, the Land Bank, and other agencies in the
(d) Exercise executive supervision over all clerks of court and implementation of the land reform program of the government
personnel of the Courts of First Instance throughout the 2. Extend assistance to courts in ordinary or cadastral land
Philippines with respect to the discharge of their duties and registration proceedings
functions in relation to the registration of lands; 3. Be the central repository of records relative to original registration
of lands titled under the Torrens system, including subdivision and
(e) Implement all orders, decisions, and decrees promulgated consolidation plans of titled lands
relative to the registration of lands and issue, subject to the
approval of the Secretary of Justice, all needful rules and FUNCTIONS OF THE ADMINISTRATOR
regulations therefor; 1. Issue decrees of registration pursuant to final judgments of the
courts in land registration proceedings and cause the issuance by
(f) Verify and approve subdivision, consolidation, and the Register of Deeds of the corresponding certificates of title
consolidation-subdivision survey plans of properties titled under 2. Exercise supervision and control over all Registers of Deeds and
Act No. 496 except those covered by P.D. No. 957. other personnel of the Commission
3. Resolve cases elevated en consulta by, or on appeal from a
(2) The Land Registration Commission shall have the following decision of a Register of Deeds
functions: 4. Exercise executive supervision over all clerks of courts and
personnel of the CFI throughout the Philippines with respect to the
(a) Extend speedy and effective assistance to the Department of discharge of duties and functions in relation to the registration of
Agrarian Reform, the Land Bank, and other agencies in the lands
implementation of the land reform program of the government; 5. Implements all orders, decision, and decrees promulgated related
to the registration of lands and issue, subject to the approval of
(b) Extend assistance to courts in ordinary and cadastral land the Secretary of Justice, all needful rules and regulations therefor
registration proceedings;
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 11 of 128
The undersigned,
_ __ _ _ _ __ _ _ __ _ _ _ __ _ __ _
_ __hereby applies (or apply) to have the land hereinafter _ __ _ _ _ __ _ _ __ _ _ _ __ _ __ _
described brought under the operation of the Property Registration
Decree, and to have the title thereto registered and confirmed: That the applicant/s
7. is/are singleormarried to
_ __ _ _ _ __ (Note: if marriage has been legally dissolved, state when and how the marriage relation terminated.)_ _ __ _ _ __ _ _ _ __ _ __ _
AND DECLARE . . . . .
That the applicant's/s' full name, age, citizenship, residence, and postaladdress/esis/areasfollows:
_ __ _ _ _ __ _ _ __ _1._ _That the
__ _ __ _ applicants/s is/are the owners of the land (by virtue of
inheritance or deed of sale or conveyance and/or possession in
accordance with Section 14 of said Decree), together with the
That (Note: If the landbuilding
included in the
and application is bounded bythereon,
improvements a public or private
with way theor exception
road, there should
of be stated in this paragraph whether or not the applicant claims any and what land within the limits of the way or road and whethe
the
_ __ _ _ _ __ _ _ __ _following:_
_ _ __ _ __ _ _ _ _ __ _ _ _ __ _ _ _ __ _
_ __ _ _ _ __ _ _ _ which is/are the property of
That the following documents_ __ _ _hereto
are attached _ and __made_ a part hereof: __ _ _ residing
_ __ _ _ _ __ _ _ __ _ at
_ __ _ _ _ __ _ The said land, consisting of
_ __ _ _ _ __ parcel/s is/are situated, bounded and
Signed at _ __ _ _ _ _ this _ _ _ _ _ __ __
described as shown on the plan and technical descriptions attached
day of _ _ _ _ _, in the year nineteen hundred and
hereto and made a part hereof, with the following
_ __ _ _ _ __ .
exception: __ _ _ _ __ _ _ __ _ __ _ __ __
_ __ _ _ _ __
_ __ _ _ _ __ _ _
2. That said land at the last assessment for taxation was assessed
at P __ , Philippine currency, and the buildings and other
improvements at P _ _________, Philippine currency.
Attest:
Within 14 days before the initial hearing, the LRA administrator shall
a. Based on the right of dominion or some other real right
cause a duly attested copy of the notice to be posted by the
opposed to the adjudication or recognition of the
sheriff in a conspicuous place on the land applied for and also in a
ownership of the applicant, whether it be limited or
conspicuous place on the bulleting board of the municipality or
absolute
city in which the land is situated
2. He should state the grounds for his objection as well as the nature
Mandatory requirement
of his claimed interest
3. The relief being prayed for
Section 24. Proof of publication and notice. The certification of the
Commissioner of Land Registration and of the sheriff concerned to WHAT IS THE EFFECT OF FAILING TO OPPOSE?
the effect that the notice of initial hearing, as required by law, has All the allegations contained in the application shall be held as
been complied with shall be filed in the case before the date of confessed by reason of the absence of denial on the part of the
initial hearing, and shall be conclusive proof of such fact. opponent
The person who has not challenged cannot allege damage or error
IMPLICIT IS THAT THE CERTIFICATION BY THE LRA against the judgment ordering the registration inasmuch as he
ADMINISTRATOR AS TO THE FACE OF PUBLICATION AND MAILING didn't allege or pretend to have right over the land
AND THAT OF THE SHERIFF AS TO POSTING, AS REQUIRED BY LAW,
ARE CONCLUSIVE. PERSONS WHO MAY FILE OPPOSITION
1. A homesteader who hasn't been issued his title but has fulfilled all
Section 25. Opposition to application in ordinary proceedings. Any the conditions required by law for the issuance of the patent
person claiming an interest, whether named in the notice or not, 2. A purchaser of friar land who is deemed to have an equitable title
may appear and file an opposition on or before the date of initial to the land even before the issuance of the patent
hearing, or within such further time as may be allowed by the 3. An awardee in a sales application who, by virtue of the award, is
court. The opposition shall state all the objections to the authorized to take possession of the land to enable him to comply
application and shall set forth the interest claimed by the party with requirements for the issuance of the patents
filing the same and apply for the remedy desired, and shall be 4. A person claiming to be in possession of the land and has applied
signed and sworn to by him or by some other duly authorized with the LMB for its purchase.
person.
PRIVATE PERSONS MAY NOT FILE OPPOSITION ON BEHALF OF THE
GOVERNMENT
If the opposition or the adverse claim of any person covers only a
portion of the lot and said portion is not properly delimited on the
OPPOSITION OF THE GOVERNMENT
plan attached to the application, or in case of undivided co-
Pursuant to the Regalian doctrine, all lands of the public domain
ownership, conflicting claims of ownership or possession, or
overlapping of boundaries, the court may require the parties to and all other natural resources are owned by the State, hence, it
is the burden of the applicant to overthrow the presumption that
submit a subdivision plan duly approved by the Director of Lands.
the land is public land by well nigh inconvertible proof and that he
REQUISITES FOR OPPOSING APPLICATION is entitled to registration under the law
Any person, whether named in the notice or not, may appear and file
an opposition on or before the date of initial hearing, or within ABSENCE OF OPPOSITION BY THE GOVERNMETN DOESN'T JUSTIFY
such time as may be allowed by the court, provided he has an OUTRIGHT REGISTRATION
interest in the property applied for The failure of the Director of Lands in representation of the
government, to oppose the application for registration for which
1. The oppositor must have an interest in the land applied for he was declared in default will not justify the court in adjudicating
the land applied for as private property
The applicant has the burden of proving the imperfect right or title
2. Order of special default—when an appearance has been entered
sought to be confirmed
and answer filed, default order shall be entered upon against
persons who didn't appear and answer
FAILURE TO APPEAR ON THE DAY OF INITIAL HEARING IS NOT A
GROUND FOR DEFAULT WHERE OPPOSITION OR ANSWER HAS
BEEN FILED MOTION TO LIFT ORDER OF GENERAL DEFAULT
The provision which allows the court at once upon the motion of Remedy available to a person to whom an order of default has been
the applicant, no reason to the contrary appearing, to order a issued against
general default to be recorded, cannot be interpreted to mean An order of default is interlocutory in character, subject to the
that the court can just disregard the answer before it control of the court, and may be modified and amended as the
court may deem proper at any time prior to the rendition of the
GOVERNMENT MAY APPEAL DESPITE FAILURE OF AGENCY TO FILE final judgment
OPPOSITION A motion filed prior to rendition of judgment should be decided
Government is not estopped by the mistake or error of its officials or with liberality since it is presented promptly and without
agents unnecessary delay
Upon the expiration of said period of one year, the decree of registration and the certificate of title issued shall become incontrovertible. Any person aggrieved by such decree of registration in any case may pursue his remedy by action for
damages against the applicant or any other persons responsible for the fraud. 2. Motion for new trial: proved in the same manner provided for
proof of motions
3.
Section 33. Appeal from judgment, etc. The judgment and orders of the court hearing the land registration case are appealable to the Court Section 1 (a)orof
of Appeals to Rule 37: Affidavits
the Supreme of same
Court in the Meritmanner as in ordinary actions:
4. 1(b): affidavits of the witnesses whom such evidence is expected
to be given or by duly authenticated documents which proposed to
Section 34. Rules of procedure. The Rules of Court shall, insofar as not inconsistent with the provision of this Decree, be applicable to land
beregistration
introduced andas
cadastral cases by analogy or in a suppletory character and whenever practicable and
evidence
5. A proforma MR or motion for new trial shall not toll the
reglementary period
6. No motion for extension of time
AFFIDAVITS OF MERIT
Motion for new trial
GROUNDS FOR FILING A MOTION FOR NEW TRIAL OR MISTAKE is some unintentional act, omission or error arising from
RECONSIDERATION ignorance, surprise, imposition or misplaced confidence.
1. Fraud, accident, mistake or excusable negligence
2. Newly discovered evidence BELIEF THAT THERE IS NO NEED TO APPEAR DURING THE TRIAL
3. Damages awarded were excessive BECAUSE THERE WAS ALREADY A COMPROMISE AGREEMENT IS A
4. Insufficient evidence to support GROUND FOR NEW TRIAL
General Rule: judgment based on a compromise agreement is not
CONTENTS OF THE MOTION subject to appeal and also immediately executory
1. Shall be in writing—stating the grounds thereof
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 30 of 127
1. Action for reconveyance (c) The Geodetic Engineers or other employees of the Bureau of
2. Action for damages Lands in charge of the survey shall give notice reasonably in
3. Recovery from the assurance fund advance of the date on which the survey of any portion of such
lands is to begin, which notice shall be posted in the bulletin board
REQUISITES FOR RECOVERY FROM ASSURANCE FUND of the municipal building of the municipality or barrio in which the
1. Persons sustains loss or damage, or is deprived of any estate or lands are situated, and shall mark the boundaries of the lands by
interest in the land monuments set up in proper places thereon. It shall be lawful for
2. On account of bringing the land under the operation of the torrens such Geodetic Engineers and other employees to enter upon the
system arising from original registration lands whenever necessary for the purposes of such survey or the
3. Through fraud, error, omission, mistake or deception in any placing of monuments.
certificate or any entry or memorandum in the registration
4. Without negligence on his part (d) It shall be the duty of every person claiming an interest in the
5. Barred or precluded from bringing an action for reconveyance lands to be surveyed, or in any parcel thereof, to communicate
with the Geodetic Engineer upon his request therefor all
GOOD FAITH IS A CONDITION SINE QUE NON information possessed by such person concerning the boundary
lines of any lands to which he claims title or in which he claims any
Geodetic engineer of the LMB shall give advance notices to all
claimants of dates of survey
(e) Any person who shall willfully obstruct the making of any
survey undertaken by the Bureau of Lands or by a licensed
Geodetic Engineer duly authorized to conduct the survey under this PETITION; LOT NUMBERS
Section, or shall maliciously interfere with the placing of any
monument or remove such monument, or shall destroy or remove Section 36. Petition for registration. When the lands have been
any notice of survey posted on the land pursuant to law, shall be surveyed or plotted, the Director of Lands, represented by the
punished by a fine of not more than one thousand pesos or by Solicitor General, shall institute original registration proceedings
imprisonment for not more than one year, or both. by filing the necessary petition in the Court of First Instance of the
place where the land is situated against the holders, claimants,
NATURE AND PURPOSE possessors, or occupants of such lands or any part thereof, stating
Upon the initiative of the government in substance that public interest requires that the title to such
To have titles to all lands in the stated area adjudicated lands be settled and adjudicated and praying that such titles be so
Public interest demands that titles to any unregistered land settled settled and adjudicated:
and adjudicated
The principal aim is to settle as much as possible all disputes over The petition shall contain a description of the lands and shall be
the land and to remove all clouds over the land titles as far as accompanied by a plan thereof, and may contain such other data
practicable, in a community as may serve to furnish full notice to the occupants of the lands
Nature of a proceeding in rem and to all persons who may claim any right or interest therein.
PROCEDURE LEADING TO THE ADJUDICATION OF PROPERTY Where the land consists of two or more parcels held or occupied by
THROUGH CADASTRAL PROCEEDINGS different persons, the plan shall indicate the boundaries or limits
1. Cadastral survey preparatory to filing a petition of the various parcels as accurately as possible. The parcels shall
2. Filing of petition for registration be known as "lots" and shall on the plan filed in the case be given
3. Notice of survey separate numbers by the Director of Lands, which numbers shall
4. Publication be known as "cadastral lot numbers". The lots situated within each
Though there is no express mention of any publication municipality shall, as far as practicable, be numbered
requirement following PD1529, there has to be mailing, consecutively beginning with number "one", and only one series of
posting and publication following the Cadastral numbers shall be used for that purpose in each municipality.
Registration Law However in cities or townsites, a designation of the landholdings
Publication in the OG twice under said law by blocks and lot numbers may be employed instead of the
5. Filing of answer designation by cadastral lot numbers.
6. Hearing of petition
7. Judgment The cadastral number of a lot shall not be changed after final
decision has been entered decreasing the registration thereof,
CADASTRAL SURVEY PREPARATORY TO FILING OF PETITION except by order of court. Future subdivisions of any lot shall be
Opinion of the president that public interest requires that title to designated by a letter or letters of the alphabet added to the
unregistered land be settled and adjudicated cadastral number of the lot to which the respective subdivisions
He may order the Director of Lands to cause to be made a pertain. The letter with which a subdivision is designated shall be
cadastral survey of the lands involved known as its "cadastral letter": Provided, however, that the
Notice to be published in OG, posted in bulletin board of municipal subdivisions of cities or townsites may be designated by blocks
building; sent to mayor and all those concerned and lot numbers.
FILING OF PETITION FOR REGISTRATION (f) If the claimant is not in possession or occupation of the land,
Director of Lands through the Solicitor General
the answer shall fully set forth the interest claimed by him and the
Shall institute original registration proceedings
time and manner of his acquisition;
WHAT SHALL THE PETITION CONTAIN?
(g) if the lots have been assessed for taxation, their last assessed
1. Description of the lands
value; and
2. Accompanied by a plan
3. Other data as to facilitate notice to all occupants and persons
(h) The encumbrances, if any, affecting the lots and the names of
having claim
adverse claimants, as far as known.
4. The parcels shall be called lots and shall be given cadastral lot
numbers on the plan FILING OF ANSWER
On or before the date of the hearing or within such further time as
ANSWER may be allowed by the Court
Shall be signed and sworn by the claimant or by some other
Section 37. Answer to petition in cadastral proceedings. Any authorized person on his behalf
claimant in cadastral proceedings, whether named in the notice or Shall indicate the status, nationality and postal address
not, shall appear before the court by himself or by some other
authorized person in his behalf, and shall file an answer on or THE ANSWER SHALL INDICATE
before the date of initial hearing or within such further time as 1. The claimant’s status, nationality, postal address, and age
may be allowed by the court. The answer shall be signed and 2. The cadastral number of lot
sworn to by the claimant or by some other authorized person in his 3. Name of the barrio or municipality
behalf, and shall state whether the claimant is married or 4. Name and address of adjoining owners
unmarried, and if married, the name of the spouse and the date of 5. Length of time of possession or interest claimed by him if not in
marriage, his nationality, residence and postal address, and shall possession
also contain: 6. Last assessed value of the lots
7. Any encumberances
(a) The age of the claimant;
HEARING; JUDGMENT; DECREE
(b) The cadastral number of the lot or lots claimed, as appearing
on the plan filed in the case by the Director of Lands, or the block Section 38. Hearing, Judgment, Decree. The trial of the case may
and lot numbers, as the case may be; occur at any convenient place within the province in which the
lands are situated and shall be conducted, and orders for default
(c) The name of the barrio and municipality in which the lots are and confessions entered, in the same manner as in ordinary land
situated; registration proceedings and shall be governed by the same rules.
All conflicting interests shall be adjudicated by the court and
(d) The names and addresses of the owners of the adjoining lots decrees awarded in favor of the persons entitled to the lands or to
so far as known to the claimant; parts thereof and such decrees shall be the basis for issuance of
original certificates of title in favor of said persons and shall have
(e) If the claimant is in possession of the lots claimed and can the same effect as certificates of title granted on application for
show no express grant of the land by the government to him or to registration of land under ordinary land registration proceedings.
his predecessors-in-interest, the answer shall state the length of
time he has held such possession and the manner in which it has
been acquired, and shall also state the length of time, as far as
known, during which the predecessors, if any, held possession;
PROCEEDING
IN THE ABSENCE OF ANY SUCCESSFUL CLAIMANTS, THE LAND SUBJECT MATTER Private land Unregistered land
SHALL BE DECLARED PUBLIC LAND PRAYER OF Title be issued in his Order adjudication to
APPLICATION name persons who really are
WHAT ARE THE ACTIONS TAKEN IN A CADASTRAL PROCEEDING? entitled to the property
1. Adjudicates ownership in favor of one of the claimants PERSON OR PARTY Applicant presents Claimant ahead of the
2. Declaration that the decree is final and its order for the issuance TO PRESENT evidence first government—those
of certificates of title by the LRA EVIDENCE who filed the answer
3. LRA: issuance of the registration decree WHAT IS Filing opposition Filing of an answer
IMPORTANT
ONLY UNREGISTERED LANDS MAY BE THE SUBJECT OF A WHO CONDUCTS Applicant Government
CADASTRAL SURVEY THE SURVEY
ORIGINAL CADASTRAL
REGISTRATION PROCEEDING
PARTY WHO Party claiming Director of Lands
INITIATES THE ownership
Deeds
appear of record in the Registryshall forthwith
of Deeds in order to send
be validnotice by mail purchasers
against subsequent to the registered owner
or encumbrancers of record.
that his owner's duplicate is ready for delivery to him upon
payment
Second. Unpaid real estate of legal
taxes levied fees. within two years immediately preceding the acquisition of any right over the land by an innocent purchaser for value, without prejudice to the right of the government to collect taxes pay
and assessed
First. Liens, claims or rights arising or existing under the laws and
Constitution of the Philippines which are not by law required to
Section 47. Registered land not subject to prescriptions. No title to registered land in derogation of the title of the registered owner shall
portion be acquired
of any by prescription
street, passageway, or adverse
waterway possession.
or open space so delineated on the plan shall be closed or otherwise
Section 48. Certificate not subject to collateral attack. A certificate of title shall not be subject to collateral attack. It cannot be Aaltered, modified,
registered owner or canceled
desiring except in a direct
to consolidate severalproceeding in accordance
lots into one with law.
or more, requiring new technical descriptions, shal
Section 49. Splitting, or consolidation of titles. A registered owner of several distinct parcels of land embraced in and covered by
Thea Commission
certificate ofmay
titlenot
desiring
orderinorlieu thereof
cause separatemodification,
any change, certificates, each containingin
or amendment one
theorcontents
more parcels,
of any may file a
certificate
Section 50. Subdivision and consolidation plans. Any owner subdividing a tract of registered land into lots which do not constitute a subdivision project has defined and provided for under
P.D. No. 957, shall file with the Commissioner of Land Registration or with the Bureau of Lands a subdivision plan of such land on which all boundaries, streets, passageways and waterways, if any, shall be distinctly and accurately delineated.
If a subdivision plan, be it simple or complex, duly approved by the Commissioner of Land Registration or the Bureau of Lands together with the approved technical descriptions and the corresponding owner's duplicate certificate of title is p
CERTIFICATE OF TITLE
1. The OCT shall be the true copy of the decree of registration
2. Transcript of the decree
3. Accumulates in one decree a precise and correct statement of the
exact status of the fee simle title which an owner possesses
4. Evidence of the title which the owner has
5. What appears on the face of the title is controlling on questions of
ownership sicne the certificate of title is an absolute and
indeafisible evidence of ownership of the property in favor of the
person whose name appears theein
Section 52. Constructive notice upon registration. Every BUT A PURCHASER WHO HAS KNOWLEDGE OF DEFECT OF HIS
conveyance, mortgage, lease, lien, attachment, order, judgment, VENDOR’S TITLE CANNOT CLAIM GOOD FAITH.
instrument or entry affecting registered land shall, if registered, A purchaser cannot close his eyes to facts which should put a
filed or entered in the office of the Register of Deeds for the reasonable man upon his guard, and then claim that he acted in
province or city where the land to which it relates lies, be good faith under the belief that there was no defect in the title of
constructive notice to all persons from the time of such the vendor
registering, filing or entering. His mere refusal to believe that such defect exists or his willful
closing of his eyes to the possibility of the existence of a defect in
REGISTRATION IS CONSTRUCTIVE NOTICE TO THIRD PERSONS the vendor’s title, will not make him an innocent purchaser for
The act of registration shall be the operative act to convey or value, if it afterwards develops that the title was in fact defective,
affect the land insofar as third persons are concerned and it appears that he had no such notice of the defect as would
It is the act of registration which creates a constructive notice to have led to its discovery had he acted with that measure of
the whole world and binds third persons precaution which may reasonably be required of a prudent man in
Absent such registration, a conveyance doesn’t affect or bind the a like situation
land
Under the rule on notice, there is a conclusive presumption that the VOLUNTARY AND INVOLUNTARY REGISTRATION DISTINGUISHED
purchaser has examined every instrument of record affecting the INVOLUNTARY REGISTRATION VOLUNTARY REGISTRATION
title An entry thereof—attachment, levy, An innocent purchaser for value of
He is charged with notice of every fact shown by the record and is notice of lis pendens, etc—in the registered land becomes the
presumed to know every fact shown by the record and is day book is sufficient notice to all registered owner and in
presumed to know every fact which an examination of the record persons even if the owner’s contemplation of law the holder of a
would have disclosed duplicate certificate of title isn’t certificate of title, the moment he
Since it is the act of registration which transfers ownership of the
presented to the RD presents and files a duly notarized
land sold, it has been held that a subsequent claimant cannot
and valid deed of sale and the same
is entered in the day book and at
the same time he surrenders or certificate of title, the party in interest may file a petition in court
presents the owner’s duplicate to compel surrender of the same to the RD
certificate of title covering the land However, non-production of the owner’s duplicate of the
sold and pays the registration fees, certificate of title may not invalidate a vendee’s claim of
because what needs to be done lies ownership where the subsequent vendees of the same lot cannot
not within his power to perform be considered in the law to be unaware of the prior sale, on
st
account of their relationship with the 1 vendee, since the validity
of a title to a piece of property depends on the buyer’s knowledge
Section 53. Presentation of owner's duplicate upon entry of new of a prior sale.
certificate. No voluntary instrument shall be registered by the
Register of Deeds, unless the owner's duplicate certificate is ISSUANCE OF TCT WITHOUT PRODUCTION OF OWNER’S
presented with such instrument, except in cases expressly DUPLICATE UNWARRANTED
provided for in this Decree or upon order of the court, for cause When the land which is the subject of sale thus registered in the
shown. name of the purchaser, registration takes effect retroactively as of
the date when the deed, conveyance was noted in the entry book
The production of the owner's duplicate certificate, whenever any of the RD
voluntary instrument is presented for registration, shall be The issuance of a TCT without the presentment of the owner’s
conclusive authority from the registered owner to the Register of duplicate is unwarranted and confers no right on the purchaser
Deeds to enter a new certificate or to make a memorandum of
registration in accordance with such instrument, and the new ALTHOUGH AN ORIGINAL OWNER OF REGISTERED LAND MAY SEEK
certificate or memorandum shall be binding upon the registered THE ANNULMENT OF A TRANSFER THEREOF ON THE GROUND OF
owner and upon all persons claiming under him, in favor of every FRAUD, SUCH A REMEDY IS WITHOUT PREJUDICE TO THE RIGHTS
purchaser for value and in good faith. OF AN INNOCENT HOLDER FOR VALUE OF A CERTIFICATE OF TITLE.
In all cases of registration procured by fraud, the owner may A FORGED DEED MAY BE THE BASIS OF A GOOD TITLE IN THE
pursue all his legal and equitable remedies against the parties to HANDS OF A BONA FIDE PURCHASER
such fraud without prejudice, however, to the rights of any A forged deed may be the root of a valid title in the hands of a
innocent holder for value of a certificate of title. After the entry of bona fide purchaser or mortgagee
the decree of registration on the original petition or application, Torrens system permits a forged transfer, when duly entered in
any subsequent registration procured by the presentation of a the registry, to become the root of a valid title in a bona fide
forged duplicate certificate of title, or a forged deed or other purchaser
instrument, shall be null and void. The law erects a safeguard against a forged transfer being
registered by the requirement that no transfer shall be registered
SURRENDER OF OWNER’S DUPLICATE CERTIFICATE
unless the owner’s certificate is produced along with the
No voluntary instrument shall be registered by the RD unless the instrument of transfer
owner’s duplicate certificate is presented together with such Public policy, expediency, and the need for a statute of repose as
instrument, except in some cases given or upon the order of the to the possession of land, demand such a rule.
court for cause shown. The right or lien of an innocent mortgagee for value upon the land
To affect the land sold, presentation of the deed of sale and its mortgaged must be respected and protected, even if the
entry in the day book must be done with the surrender of the mortgagor obtained his title through fraud
owner’s duplicate of the certificate of title
Where a voluntary instrument cannot be registered by reason of RULE WHEN OWNER IS NOT AT FAULT
refusal or failure of the holder to surrender the owner’s duplicate The giving of the certificates of title by the owners to another is
not in itself an act of negligence, especially so where it doesn’t
appear that the owner has executed any document authorizing the
RULE WITH RESPECT BANKING INSTITUTIONS
holder of the certificate to execute deeds for and in their behalf.
Before a bank grants a loan on the security of land, it first
But one who consents to be the mortgagee of said certificate of
undertakes a careful examination of the title of the applicant as
title without taking sufficient care to see to it that the person who
well as physical and on-the-spot investigation of the land itself
executed the deed of mortgage is the real registered owner of the
offered as security
property is guilty of negligence and must suffer from it.
If it didn’t conduct such examination, it must be held to be guilty of
gross negligence in granting the loans, and cannot be considered
RULE IN CASE OF DOUBLE SALE
as a mortgagee in good faith within the contemplation of law
Where two or more TCT 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 TCT was issued to replace the Section 54. Dealings less than ownership, how registered. No new
original title, which title prevails? certificate shall be entered or issued pursuant to any instrument
General rule is that in case of 2 certificates of title purporting to which does not divest the ownership or title from the owner or
include the same land, the earlier in date prevails, whether the from the transferee of the registered owners. All interests in
land comprised in the latter certificate be wholly or only in part, registered land less than ownership shall be registered by filing
comprised in the earlier certificate with the Register of Deeds the instrument which creates or
Where 2 certificates of title purport to include the same land, the transfers or claims such interests and by a brief memorandum
earlier in date prevails. In successive registrations, where more thereof made by the Register of Deeds upon the certificate of title,
than 1 certificate is issued in respect of a particular estate or and signed by him. A similar memorandum shall also be made on
interest in land, the person claiming under the prior certificate is the owner's duplicate. The cancellation or extinguishment of such
entitled to the estate or interest; and the person is deemed to interests shall be registered in the same manner.
hold under the prior certificate who is the holder of, or whose MEMORANDUM OF ENCUMBERANCES
claim is derived directly or indirectly from the person who was the Dorsal side of the certificate of title
holder of the earliest certificate issued in respect thereof. All interests in the registered land less than ownership which shall
The vendee of the earlier certificate would be the owner as against serve as a notice to third persons of the instrument affecting the
the vendee of the owner of the latter certificate property
A similar entry shall be made on the owner’s duplicate certificate of
REMEDY OF AGGRIEVED PARTY title
The purchaser from the owner of the later certificate and his
successors,
Section 55. Grantee's name, nationality, should
etc., to be stated.resort to his
Every deed vendor
or other for redress,
voluntary instrumentrather than
presented for registration shall contain or have endorsed upon it the full name, nationality, residence and postal address of the grantee or o
molest the holder of the first certificate and his successors, who
should be permitted to rest secure in their title.
CONVEYANCES AND TRANSFERS Upon the approval of the plan and technical descriptions, the
original of the plan, together with a certified copy of the technical
Section 57. Procedure in registration of conveyances. An owner descriptions shall be filed with the Register of Deeds for
desiring to convey his registered land in fee simple shall execute annotation in the corresponding certificate of title and thereupon
and register a deed of conveyance in a form sufficient in law. The said officer shall issue a new certificate of title to the grantee for
Register of Deeds shall thereafter make out in the registration the portion conveyed, and at the same time cancel the grantor's
book a new certificate of title to the grantee and shall prepare and certificate partially with respect only to said portion conveyed, or,
deliver to him an owner's duplicate certificate. The Register of if the grantor so desires, his certificate may be canceled totally and
Deeds shall note upon the original and duplicate certificate the a new one issued to him describing therein the remaining portion:
date of transfer, the volume and page of the registration book in Provided, however, that pending approval of said plan, no further
which the new certificate is registered and a reference by number registration or annotation of any subsequent deed or other
to the last preceding certificate. The original and the owner's voluntary instrument involving the unsegregated portion conveyed
duplicate of the grantor's certificate shall be stamped "canceled". shall be effected by the Register of Deeds, except where such
The deed of conveyance shall be filled and indorsed with the unsegregated portion was purchased from the Government or any
number and the place of registration of the certificate of title of the of its instrumentalities. If the land has been subdivided into
several lots, designated by numbers or letters, the Register of
PROCEDURE IN REGISTERING A DEED OF CONVEYANCE Deeds may, if desired by the grantor, instead of canceling the
An owner who desires to convey the land covered by his title to latter's certificate and issuing a new one to the same for the
another shall execute the proper deed of conveyance, in proper remaining unconveyed lots, enter on said certificate and on its
form, and present the same, together with the owner’s duplicate owner's duplicate a memorandum of such deed of conveyance and
certificate to the RD from entry and registration of the issuance of the transfer certificate to the grantee for the lot
The RD shall enter in the registration book the fact of conveyance or lots thus conveyed, and that the grantor's certificate is canceled
and prepare a new certificate of title in the name of the grantee, as to such lot or lots.
the owner’s duplicate of which shall be delivered to him PROCEDURE WHERE ONLY PORTIONS OF LAND ARE CONVEYED
The RD shall note the date of conveyance, volume and page of the The RD shall not issue any TCT to the grantee until a plan of such
registration book in which the certificate is registered, and a land showing the portion or portions into which it has been
reference by number to the last preceding certificates
subdivided and the corresponding technical descriptions shall have mortgage or lease and all instruments which assign, extend, discharge or otherwise deal with the mortgage or leas
been verified and approved
The deed of conveyance may in the meanwhile be annotated by way No mortgagee's or lessee's duplicate certificate of title shall hereafter be issued by the Registers of Deeds, and tho
of memorandum on the grantor’s certificate of title, which shall
serve as notice to third persons on the fact of conveyance— to
show and recognize the grantee’s 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 ESSENCE OF MORTGAGE
The RD shall issue a new TCT to the grantee for the portion conveyed A property has been identified or set apart from the mass of property
to him upon cancellation of the grantor’s certificate as to said of the debtor-mortgagor as security for the payment of money or
portion the fulfillment of obligation to answer the amount of indebtedness,
But if the grantor so desires, his certificate of title may be totally in case of default of payment
cancelled and a new one issued to him for the remaining portion
of the land
Section 61. Registration. Upon presentation for registration of the
Pending approval of the plan, no further registration or any
deed of mortgage or lease together with the owner's duplicate, the
annotation of any deed or voluntary instrument affecting the
Register of Deeds shall enter upon the original of the certificate of
unsegregated portion shall be made by the RD except where such
title and also upon the owner's duplicate certificate a
portion was purchased from the government or any of its
memorandum thereof, the date and time of filing and the file
instrumentalities
number assigned to the deed, and shall sign the said
memorandum. He shall also note on the deed the date and time of
Section 59. Carry over of encumbrances. If, at the time of any filing and a reference to the volume and page of the registration
transfer, subsisting encumbrances or annotations appear in the
registration book, they shall be carried over and stated in the new
RECORDED MORTGAGE IS A RIGHT IN REM
certificate or certificates; except so far as they may be
Recording puts the whole world on constructive notice of its
simultaneously released or discharged.
existence and warns everyone who deals thereafter with the
property on which it was constituted that he would have reckon
CARRYING OVER OF ENCUMBRANCES IN NEW CERTIFICATE with that encumbrance
Whenever registered land is conveyed, all subsisting encumbrances A mortgage is a secondary contract
or annotations appearing in the registration book and noted on
the certificate of title shall be carried over and noted on the new DOCTRINE OF INNOCENT MORTGAGEE FOR VALUE
certificate of title except where said encumbrances or annotations
are simultaneously released or discharged EFFECT OF LIS PENDENS
A notice of lis pendens is an announcement to the whole world
MORTGAGES AND LEASES
that a particular real property is in litigation and serves as a
warning that one who acquires an interest over said property does
Section 60. Mortgage or lease of registered land. Mortgage and leases shall be registered in the manner provided in
soSection 54 of
at his ownthis Decree.
risk, soThethat
ownerheof registered
gambles land
on may
themortgage
results oroflease
theit by executing the dee
litigation over said property
It has been held that any subsequent lien or annotation at the back
of the certificate of title cannot in any way prejudice the
mortgage
If no right of redemption exists, the certificatepreviously
of title of theregistered, andbethe
mortgagor shall lots subject
canceled, thereto
and a new pass
certificate issued in the name of the purchaser.
to the purchaser at a public auction sale free from any lien or
encumberance
Where the right of redemption exists, the certificate of title of the mortgagor shall not be canceled, but the certificate of sale and the order confirming the sale shall be registered by a brief memorandum thereof made by the Register of Deed
N.B:
Section 63. Foreclosure of Mortgage. (a) If the mortgage was foreclosed judicially, a certified copy of the final order of the court Remember
confirming the saleSecurity Transactions.
shall be registered with the Register of Deeds.
POWERS OF ATTORNEY; TRUSTS whose benefits the trust has been created is referred to as the
beneficiary
Section 64. Power of attorney. Any person may, by power of It is the right to the beneficial enjoyment of property, the legal title
attorney, convey or otherwise deal with registered land and the to which is vested in another
same shall be registered with the Register of Deeds of the province
PARTY ACQUIRING PROPERTY BY MISTAKE CONSIDERED TRUSTEE
or city where the land lies. Any instrument revoking such power of
OF AN IMPLIED TRUST
attorney shall be registered in like manner.
AGENCY TO SELL LAND NO TRUST CAN RESULT IN FAVOR OF A PARTY WHO IS GUILTY OF
A special power of attorney refers to the clear mandate specifically FRAUD OR VIOLATES PUBLIC POLICY
authorizing the performance of an act, and must therefore be There can be no implied trust where the purchase is made in
distinguished from an agency couched in general terms violation of an existing statute and in evasion of its express
When a piece of land or any interest therein is through an agent, the provision, since no trust can result in favor of the party who is
authority of the latter shall be in writing, otherwise the sale shall guilty of the fraud
be void
A special power to sell excludes the power to mortgage, and a NO PARTICULAR FORM REQUIRED BY LAW WITH REGARD TRUSTS
special power to mortgage doesn’t include the power to sell
PRESCRIPTIVE PERIOD
REGISTRATION OF POWER OF ATTORNEY WITH THE RD NEEDED. Ten years from the repudiation of the trust
COROLLARILY, AS WELL AS ANY REVOCATION THEREOF. It is ten years because just as a resulting trust is an offspring of
the law, so is the corresponding obligation to convey the property
and title thereto to the true owner.
Reckoning point of repudiation is from the moment his possession
Section 65. Trusts in registered land. If a deed or other instrument thereof becomes adverse
is filed in order to transfer registered land in trust, or upon any
equitable condition or limitation expressed therein, or to create or Section 66. Trust with power of sale, etc., how expressed. If the
declare a trust or other equitable interests in such land without instrument creating or declaring a trust or other equitable interest
transfer, the particulars of the trust, condition, limitation or other contains an express power to sell, mortgage or deal with the land
equitable interest shall not be entered on the certificate; but only a in any manner, such power shall be stated in the certificate of title
memorandum thereof shall be entered by the words "in trust", or by the words "with power to sell", or "power to mortgage", or by
"upon condition", or other apt words, and by a reference by apt words of description in case of other powers. No instrument
number to the instrument authorizing or creating the same. A which transfers, mortgages or in any way deals with registered
similar memorandum shall be made upon the original instrument land in trust shall be registered, unless the enabling power thereto
creating or declaring the trust or other equitable interest with a is expressly conferred in the trust instrument, or unless a final
reference by number to the certificate of title to which it relates judgment or order of a court of competent jurisdiction has
and to the volume and page in the registration book in which it is construed the instrument in favor of the power, in which case a
registered. certified copy of such judgment or order may be registered.
TRUST, DEFINED
A trust is a fiduciary relationship with respect to property which TRUSTS, HOW EXPRESSED AND REGISTERED
involves the existence of equitable duties imposed upon the holder If a deed or other instrument is filed in order to transfer registered
of the title to the property to deal with it for the benefit of another land in trust, or upon any equitable condition or limitation
A person who establishes a trust is called the trustor while the one expressed therein, or to create or declare a trust or other
whose confidence is reposed is the trustee, and the person for equitable interests in such land without transfer, the particulars of
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 50 of 127
Section 74. Enforcement of liens on registered land. Whenever registered land is solved on execution, or taken or sold for taxes or for any assessment or to enforce a lien of any character, or for any costs and charges inc
Before the entry of a new certificate of title, the registered owner The notice of lis pendens is a notice to the whole world that a
particular real property is in litigation. The inscription serves as a
may pursue all legal and equitable remedies to impeach or annul
warning that one who acquires interest over litigated property
such proceedings.
does so at his own risk, or that he gambles on the result of the
ENTRY OF NEW CERTIFICATE litigation over the property
In case registered land which has been sold on execution for the A purchaser who buys registered land with full notice of the fact
enforcement of any lien, except a mortgage lien, has not been that it is in litigation between the vendor and third party stands in
redeemed for a period allowed by law, the purchaser at such sale the shoes of his vendor and his title is subject to the incidents and
or anyone claiming under him may petition the court for the results of the pending litigation
issuance of a new certificate of title to him The filing of lis pendens in effect—
But before the entry of such new certificate, the registered owner o Keeps the subject matter of litigation within the power of
may pursue all legal and equitable remedies to impeach or annul the court until entry of final judgment so as to prevent
the proceedings the defeat of the latter by successive alienations
o Binds the purchaser of the land subject of the litigation to
the judgment or decree that will be promulgated thereon
Section 76. Notice of lis pendens. No action to recover possession whether such purchaser is a bona fide purchaser or not
of real estate, or to quiet title thereto, or to remove clouds upon o Doesn’t create a non-existent right or lien
the title thereof, or for partition, or other proceedings of any kind Purpose of this rule is founded on public policy and necessity
in court directly affecting the title to land or the use or occupation
thereof or the buildings thereon, and no judgment, and no EFFECT OF SUCH NOTICE
proceeding to vacate or reverse any judgment, shall have any 1. It keeps the subject matter of the litigation within the power of
effect upon registered land as against persons other than the the court until the entry of final judgment so as to prevent the
parties thereto, unless a memorandum or notice stating the defeat of the latter by successive alienations
institution of such action or proceeding and the court wherein the 2. It binds the purchaser of the land subject of the litigation to the
same is pending, as well as the date of the institution thereof, judgment or decree that will be promulgated thereon whether
together with a reference to the number of the certificate of title, such purchaser is a bona fide purchaser or not
and an adequate description of the land affected and the registered It is not correct to speak of it as part of the doctrine of notice, the
owner thereof, shall have been filed and registered. purchaser pendent elite is affected not by notice but because the
law doesn’t allow litigating parties to give to others, pending the
NATURE AND PURPOSE OF LIS PENDENS litigation, rights to the property in dispute so as to prejudice the
Lis pendens literally means a pending suit other party
Doctrine that refers to the jurisdiction, power or control which a
court acquires over a property involved in a suit, pending the NOTICE IS ONLY AN INCIDENT IN THE MAIN CASE; MERITS
continuance of the action, until final judgment THEREOF UNAFFECTED
The purpose of lis pendens— A notice of lis pendens is ordinarily recorded without the
o To protect the rights of the party causing the registration intervention of the court where the action is pending
of the lis pendens It is but an incident in an action, an extrajudicial one. It doesn’t
o To advise third persons who purchase or contract on the affect the merits thereof.
subject property that they do so at their peril and subject
to the result of the pending litigation NOTICE NEED NOT BE ANNOTATED ON THE OWNER’S COPY
May involve actions that deal not only with title or possession of a Annotation at the back of the original copy of the certificate of title
property but also with the use and occupation of a property on file with the RD is sufficient to constitute constructive notice to
The litigation must directly involve a specific property which is purchasers or other persons subsequently dealing with the same
necessarily affected by the judgment property
One who deals with property subject of a notice of lis pendens
Act of RD in erasing notice of lis pendens is in plain violation of his
cannot invoke the right of a purchaser in good faith—neither can
duty, constitutes misfeasance in the performance of his duties for
he acquire the rights better than those of his predecessor-in-
which he may be held civilly and even criminally liable for any
interest
prejudice caused to innocent third persons and cannot affect those
who are protected by the notice inscribed in the original title
NOTICE OF LIS PENDENS—WHEN APPROPRIATE
1. Action to recover possession of real property
2. Action to quiet title thereto Section 77. Cancellation of lis pendens. Before final judgment, a
3. Action to remove cloud thereon notice of lis pendens may be canceled upon order of the court,
4. Action for partition after proper showing that the notice is for the purpose of
5. Any other proceedings of any kind in court directly affecting the molesting the adverse party, or that it is not necessary to protect
title to the land or the use or occupation thereof or the buildings the rights of the party who caused it to be registered. It may also
thereon be canceled by the Register of Deeds upon verified petition of the
party who caused the registration thereof.
NOTICE NOT PROPER IN THE FOLLOWING
1. Preliminary attachments At any time after final judgment in favor of the defendant, or other
2. Proceedings for the probates of wills disposition of the action such as to terminate finally all rights of
3. Levies on execution the plaintiff in and to the land and/or buildings involved, in any
4. Proceedings for the administration of estate of deceased persons case in which a memorandum or notice of lis pendens has been
5. Proceedings in which the only subject is the recovery of a money registered as provided in the preceding section, the notice of lis
judgment pendens shall be deemed canceled upon the registration of a
certificate of the clerk of court in which the action or proceeding
CONTENTS OF NOTICE OF LIS PENDENS was pending stating the manner of disposal thereof.
1. A statement of the institution of an action or proceedings
2. The court where the same is pending CANCELLATION OF LIS PENDENS
3. The date of its institution Ordinarily a notice which has been filed in a proper case cannot be
4. A reference to the number of certificate of title of the land cancelled while the action is pending and undetermined, except in
5. An adequate description of the land affected and its registered cases expressly provided for by statute
owner It may be cancelled upon order by the court or upon action by the
RD at the instance of the party who caused the registration of the
PRINCIPLE OF PRIMUS TEMPORE, POTIOR JURE; EFFECT OF LIS notice
PENDENS While the trial court has inherent power to cancel a notice of lis
The principle of primus tempore, potior jure gains greater pendens, such power is exercised under express provisions of law
significance in the law on double sale of immovable property —
Reliance on the principle of constructive notice operates only such o If the annotation was for the purpose of molesting the
upon the registration of the notice of lis pendens title of the adverse party
More fundamentally, a notice of lis pendens is only a warning to o When the annotation isn’t necessary to protect the title of
the prospective purchaser or incumbrancer that the particular the party who caused it to be recorded
property is in litigation and that he should keep his hands off the
same, unless he intends to gamble on the results of the litigation REGISTRATION OF JUDGMENTS; ORDERS;
PARTITIONS
CARRY OVER OF NOTICE ON SUBSEQUENT TITLES
In case of subsequent transfers or sales, the RD is duty bound to
carry over the notice of lis pendens on all titles to be issued
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 60 of 127
REGISTRATION OF JUDGMENT
A judgment for the plaintiff in an action for the recovery of
possession or ownership affecting registered land shall be entitled
by way of set-off or of assignment or of sale, shall contain a reference memorandum to the final judgment of partition,
of hisand shalland
title be conclusive as to the
an adequate title to the of
description same
theextent
real and against
estate of the same persons as such jud
which
partition is demanded and joining as defendants all other persons
interested in the property
If the court after trial finds that the plaintiff has a right thereto, it
shall order the partition of the real estate among all the parties in
interest.
Thereupon, the parties may, if they are able to agree, make the
partition among themselves by proper instruments of conveyance,
and the court shall confirm the partition so agreed by all of the
parties, and such partition, together with the orde3r of the court
confirming the same, shall be recorded in the RD of the place in
which the property is situated
PARTITION, GENERALLY. If actual partition is made, the judgment shall state definitely by
Partition is the separation, division, and assignment of a thing held metes and bounds and adequate description, the particular portion
in common among those to whom it may belong of the real assigned to each party, and the effect of the judgment
Every act which is intended to put an end to an indivision among co- shall be to vest in each party and the severalty the portion of the
heirs and legatees or devisees is deemed to be a partition, real estate assigned to him
although it should purport to be a sale, exchange, a compromise
or any other transaction EXTRAJUDICIAL PARTITION
The titles of acquisition or ownership of each property shall be The parties may without having letters of authorization, divide the
delivered to the co-heir to whom said property has been estate among themselves as they see fit by means of a public
adjudicated instrument filed in the office of the RD and should they disagree,
When the title comprises of two or more pieces of land which has they may do so in an ordinary action for partition
been assigned to two or more co-heirs, or when it covers one If there be only one heir, he may adjudicate to himself the entire
piece of land which has been divided between two or more co- estate by means of an affidavit filed with the office of the RD
heirs, the title shall be delivered to the one having the largest Filing of a bond is a condition precedent to the filing of the public
interest, and authentic copies of the title shall be furnished to the instrument
other co-heirs at the expense of the estate. If the interest of each
co-heir should be the same, the oldest shall have the title. ORAL PARTITION
In an action for partition, there should be simultaneous This practice has been found to be not only convenient and
presentment of two issues— inexpensive, but even advisable, and is accepted by people and
o There is the issue of whether the plaintiff is indeed a co- we find no good reason for disturbing said good practice
owner of the property sought to be partitioned Now, when valuable properties especially those covered by
o Assuming that the plaintiff successfully hurdles the first certificates of title, perhaps strict compliance with the law may be
issue, there is the secondary issue of how the property is advisable even necessary
to be divided between the plaintiff and the defendants.
STATUTE OF FRAUDS INAPPLICABLE
JUDICIAL PARTITION Partition among heirs or renunciation of an inheritance by any of
An action for partition for real property is a judicial controversy them is not covered by the Statute of Frauds
between persons who being co-owners seek to secure division or
partition among them of the common property, giving to each one EXCEPTION THE GENERAL RULE OF INPRESCRIPTIBILITY OF AN
the part corresponding to him ACTION FOR PARTITION
A person having the right to compel the partition of real estate
may do so by setting forth in his complaint the nature and extent
Imprescriptibility cannot be invoked when one of the co-owners of
Failure to serve a copy for the motion for execution is not a fatal
a property has possessed the property as exclusive owner and for
defect. In fact, there is no necessity for such service.
a period sufficient to acquire it by prescription
PURPOSE OF REGISTRATION
STAGES IN PARTITION
Notify and protect the interests of strangers to a given
Determination of whether or not a co-ownership in fact exists and a
transaction, who may be ignorant thereof, but the non-
partition is proper, that is, it is not otherwise legally proscribed
registration of the deed evidencing such transaction doesn’t
and may be made by voluntary agreement of all the parties
relieve the parties thereto of their obligations thereunder.
interested in the property
As originally conceived, registration is merely a species of notice. The
Second stage is when the parties are unable to agree upon the
act of registering a document is never necessary in order to give it
partition ordered by the court. In that event, the partition shall be
legal effect as between the parties.
effected for the parties by the court with the assistance of not
Requirements for the recording of an instruments are designed to
more than 3 commissioners. The second stage may also deal with
prevent frauds and to permit and require the public to act with the
the rendition of the accounting itself and its approval by the Court
presumption that recorded instruments exist and are genuine.
after the parties have been accorded the opportunity to be heard
thereon, and the award for the recovery by the parties entitled of
their just shares in the rents and profits of the real estate in Section 82. Registration of prior registered mortgaged or lease on
question. Such an order is to be sure also final and appealable. partitioned property. If a certified copy of a final judgment or
decree of partition is presented and it appears that a mortgage or
PROOF OF PARTITION lease affecting a specific portion or an undivided share of the
Partition may be inferred from circumstances sufficiently strong to premises had previously been registered, the Register of Deeds
support the presumption shall carry over such encumbrance on the certificate of title that
Recitals in deeds, possession and occupation of the land, may be issued.
improvements made thereon for a long series of years, and
acquiescence of 60 years, furnish sufficient evidence that there PARTITION OF LAND SUBJECT OF MORTGAGE
was an actual partition of land either by deed or by proceedings in When a certified copy of the final judgment or decree of partition is
the probate court, which has been lost and not recorded. presented for registration and it appears that a mortgage or lease
And where a tract of land has long been known and called by the affecting a specific portion or an undivided share of the property
name of one of the tenants in common, and there is no evidence had been previously registered, the RD shall carry over and
of any subsequent claim of tenancy in common, it may be fairly annotate such encumbrance on the certificate of title that may be
inferred that there has been a partition and that such lot was set- issued, with a description of the land set-off in severalty on which
off to him whose name it bears such mortgage or lease remains in force
Section 86. Extrajudicial settlement of estate. When a deed of Section 87. Filing of letters of administration and will. Before the
extrajudicial settlement has been duly registered, the Register of executor or administrator of the estate of a deceased owner of
Deeds shall annotate on the proper title the two-year lien registered land may deal with the same, he shall file with the office
mentioned in Section 4 of Rule 74 of the Rules of Court. Upon the of the Register of Deeds a certified copy of his lette rs of
expiration of the two-year period and presentation of a verified administration or if there is a will, a certified copy thereof and the
petition by the registered heirs, devisees or legatees or any other order allowing the same, together with the letters testamentary or
party in interest that no claim or claims of any creditor, heir or of administration with the will annexed, as the case may be, and
other person exist, the Register of Deeds shall cancel the two-year shall produce the duplicate certificate of title, and thereupon the
lien noted on the title without the necessity of a court order. The Register of Deeds shall enter upon the certificate a memorandum
verified petition shall be entered in the Primary Entry Book and a thereof, making reference to the letters and/or will by their file
memorandum thereof made on the title. number, and the date of filing the same.
No deed of extrajudicial settlement or affidavit of adjudication Section 88. Dealings by administering subject to court approval.
shall be registered unless the fact of extrajudicial settlement or After a memorandum of the will, if any, and order allowing the
adjudication is published once a week for three consecutive weeks same, and letters testamentary or letters of administration have
in a newspaper of general circulation in the province and proof been entered upon the certificate of title as hereinabove provided,
thereof is filed with the Register of Deeds. The proof may consist the executor or administrator may alienate or encumber registered
of the certification of the publisher, printer, his foreman or land belonging to the estate, or any interest therein, upon approval
principal clerk, or of the editor, business or advertising manager of of the court obtained as provided by the Rules of Court.
the newspaper concerned, or a copy of each week's issue of the
newspaper wherein the publication appeared. LETTERS OF ADMINISTRATION, WHEN GRANTED TO A PERSON
May be granted to any qualified applicant even though it appears
EXTRAJUDICIAL SETTLEMENT BY AGREEMENT OF THE PARTIES that there are other competent persons having been right to the
If the decedent left no will and no debts and the heirs are all of administration where such persons fail to appear when notified
age, or the minors are represented by their judicial or legal and claim the issuance of letters to themselves
distribution a portion or the whole of the registered land to which they might be entitled on final distribution, upon the filing of a certified copy of such order in the office of the Register of Deeds, the executor or administratory may cause su
APPOINTMENT OF SPECIAL ADMINISTRATOR
When
Section 92. Registration of final there
distribution is a Adelay
of estate. certifiedincopy
granting letters
of the partition andtestamentary or of
distribution, together with the final judgment or order of the court approving the same or otherwise making final distribution, supported by evidence
administration by any cause including an appeal from the
allowance or disallowance of a will, the court may appoint a
special administrator to take possession and charge of the estate
of the deceased until the questions causing the delay are decided
and executors or administrators appointed
ASSURANCE FUND
Section 93. Contribution to Assurance Fund. Upon the entry of a
CLAIMS AGAINST THE ASSURANCE FUND
certificate of title in the name of the registered owner, and also
Section 95 provides a remedy where a person who sustains loss or
upon the original registration on the certificate of title of a building
damage or is deprived of any estate or interest in land in
or other improvements on the land covered by said certificate, as
consequence of the operations of the Torrens system of
well as upon the entry of a certificate pursuant to any subsequent
registration, without negligence on his part, may bring an action
transfer of registered land, there shall be paid to the Register of
for the recovery of damages to be paid out of the Assurance fund
Deeds one-fourth of one per cent of the assessed value of the real
Public policy demands that those unjustly deprived of their rights
estate on the basis of the last assessment for taxation purposes,
over real property by reason of the operation of our registration
as contribution to the Assurance Fund. Where the land involved
laws be afforded remedies
has not yet been assessed for taxation, its value for purposes of
According to the principles of the Torrens system, it is a condition
this decree shall be determined by the sworn declaration of two
sine que non that the person who brings an action for damages
disinterested persons to the effect that the value fixed by them is
against the Assurance fund be the registered owner, and as to
to their knowledge, a fair valuation.
holders of transfer certificates of title that they be innocent
purchasers in good faith and for value
Nothing in this section shall in any way preclude the court from
There must also be a showing of loss or damage or deprivation of
increasing the valuation of the property should it appear during
any land or interest thereon by the operation of PD1529
the hearing that the value stated is too small.
Where plaintiff is solely responsible for the plight in which it finds
itself, the Director of Lands and the National Treasurer are exempt
Section 94. Custody and investment of fund. All money received by
from any liability
the Register of Deeds under the preceding section shall be paid to
the National Treasurer. He shall keep this money in an Assurance
REQUISITES FOR RECOVERY FROM THE ASSURANCE FUND
Fund which may be invested in the manner and form authorized by
1. That a person sustains loss or damage, or is deprived of any
law, and shall report annually to the Commissioner of the Budget
estate or interest in land
the condition and income thereof.
2. On account of bringing of land under the operations of the Torrens
system arising after the original registration
The income of the Assurance Fund shall be added to the principal
3. Through fraud, error, omission, mistake, or misdescription in a
until said fund amounts to five hundred thousand pesos, in which
certificate of title or entry or memorandum in the registration
event the excess income from investments as well as from the
4. Without negligence on his part
collections of such fund shall be paid into the National Treasury to
5. And is barred or precluded from bringing an action for the
the account of the Assurance Fund.
recovery of such land or estate or interest therein
Section 95. Action for compensation from funds. A person who,
RECORDED MORTGAGE PROTECTED EVEN IF TITLE IS
without negligence on his part, sustains loss or damage, or is
SUBSEQUENTLY NULLIFIED
deprived of land or any estate or interest therein in consequence of
theaction
bringing
filed. Ifof the land undertothe operation
for loss orof the Torrens system
Section 96. Against whom such action is brought recover damage or for deprivation of land or of any estate or interest therein arising wholly through fraud, negligence, omission, mistake or misfeasance of the cour
of arising after original registration of land, through fraud or in
consequence of any error, omission, mistake or misdescription in
any certificate of title or in any entry or memorandum in the
registration book, and who by the provisions of this Decree is
barred or otherwise precluded under the provision of any law from
bringing an action for the recovery of such land or the estate or
interest therein, may bring an action in any court of competent
jurisdiction for the recovery of damages to be paid out of the
Assurance Fund.
land or of any interest therein arising through fraud, negligence, omission, mistake or misfeasance of person other than court National
personnel, the
and Register
the ofof
Register Deeds, hisIfdeputy
Deeds. or other
the execution is employees of the Registry,
returned unsatisfied such
in whole oraction shall
in part, andbe brought
the officer again
retu
Section 97. Judgment, how satisfied. If there are defendants other than the National Treasurer and the Register of Deeds and judgment is entered for the plaintiff and against the National Treasury, the Register of Deeds
Land Registration, file the necessary action in court to annul or amend the title. The plaintiff has a period of 6 years from the time the right of
action accrues within which to bring an action against the
The court may order the Register of Deeds to amend or cancel a certificate of title or to do any other act as may be just and equitable. Assurance Fund
CADIZ NOTES:
1. In case of procedure sales, the procedure to get a title is to file a
petition in the same court. This is different from mortgage lien,
wherein there is no need to file a petition in the court.
AMENDMENT OR CANCELLATION OF TITLE 2. Current doctrine, mere entry in the day book is sufficient provided
In the event the Assurance fund is held liable on account of the that there is compliance to all requirements. This is the case
unlawful or erroneous issuance of a certificate of title, the RD whether it is voluntary or involuntary dealings.
upon the authority of the LRA administrator, shall file the 3. You can file a motion in the main case for the production of a new
necessary action to amend or cancel the title or perform any other certificate to avoid multiplicity of suits.
act as may be directed by the Court 4. A motion may not be a basis for a notice of lis pendens. In this
Such action may pre-empt any action against the Assurance fund case, what should be done is an action for reconveyance.
5. Your claim against the AF would not prosper if there is negligent.
6. Your claim against the AF if there is no deprivation of property or
Section 101. Losses not recoverable. The Assurance Fund shall not part thereof.
be liable for any loss, damage or deprivation caused or occasioned 7. A court may not be divested of jurisdiction in a land registration
by a breach of trust, whether express, implied or constructive or case by the issuance of a patent.
by any mistake in the resurveyed or subdivision of registered land 8. A land may not be registered if it is not alienable and disposable.
resulting in the expansion of area in the certificate of title. The mere notation of a surveyor is insufficient.
9. You have to comply with all requirements to be able to register
LOSS OR DAMAGE ARISING FROM BREACH OF TRUST OR land.
EXPANSION OF AREA NOT RECOVERABLE 10. The registration of a patent is not merely directory. It is
Section 102. Limitation of Action. Any action for compensation MANDATORY.
against the Assurance Fund by reason of any loss, damage or
deprivation of land or any interest therein shall be instituted within REGISTRATION OF PATENTS
a period of six years from the time the right to bring such action
Section 103. Certificates of title
first pursuant toProvided,
occurred: patents. Whenever
That public
the land
right is by
ofthe Government
action hereinalienated, granted or conveyed to any person, the same shall be brought forthwith under the operation of this Decree. It shall be the DUTY OF
provided
registered like other deeds
shall and conveyance,
survive to whereupon
the legala certificate of title shallofbethe
representative entered as in other
person cases of registered land, and an owner's duplicate issued to the grantee. The deed, grant, patent or instrument of conveyance from the
sustaining
loss or damage, unless barred in his lifetime; and Provided,
further, That if at the time such right of action first accrued the
person entitled to bring such action was a minor or insane or
imprisoned, or otherwise under legal disability, such person or
anyone claiming from, by or under him may bring the proper action
at any time within two years after such disability has been
removed, notwithstanding the expiration of the original period of
six years first above provided.
PRESCRIPTIVE PERIOD
the grantee and as evidence of authority to the Register of Deeds to make registration. It is the act of registration
IMPERIUM that shall
ANDbeDOMINUUM
the operative act to affect and convey the land, and in all cases under this Decree, registrati
Imperium pertains to the government authority possessed by the
State, which is appropriately embraced in the concept of
sovereignty
Dominuum pertains to the capacity to own and acquire property
Dominuum is the foundation of the theory of Regalian doctrine
Section 18. In case the homesteader shall suffer from mental alienation, or
Section 15. At the option of the applicant, payment of the fees required in this chapter may be made in annual installments. These
shallpayments
for anymay other
be madereason
to the municipal treasurer of thefor
be incapacitated locality, who, in turn,
exercising hisshall forward them to the provinc
rights
personally, the person legally representing him may offer and submit the
Section 16. If at any time before the expiration of the period allowed by law for the making of final proof, it shall be proved to thefinal proof on
satisfaction behalf
of the of of
Director such incapacitated
Lands, person.
after due notice to the homesteader, that the land entered is not under the law
Section 19. Not more than one homestead shall be allowed to any
Section 17. Before the final proof shall be submitted by any person claiming to have complied with the provisions of this chapter, due notice, as prescribed by the Secretary of Agriculture and Natural Resources shall be given to the public of his int
person; but if a homesteader has made final proof as provided in this
chapter and is occupying and cultivating at least one-fourth of the
land applied for and the area thereof is less than twenty-four
hectares, he may apply successively for additional homesteads
which must lie in the same municipality or municipal district or in
an adjacent municipality or municipal district, until the total area of
said homesteads shall reach twenty-four hectares, but not more,
with the understanding that he shall with regard to the new tracts or
additional homesteads comply with the same conditions as prescribed by
this Act for an original homestead entry. (As amended by Sec. 1 of Act No,
3219 and Sec. 3 of Act No. 3517).
Section 20. The cancellation of a homestead entry not due to any fault of
the applicant shall not be a bar to his applying for another homestead.
Section 21. If at any time after the approval of the application and before
the patent is issued, the applicant shall prove to the satisfaction of the
Director of lands that he has complied with all the requirements of the law,
but can not continue with his homestead, through no fault of his own, and
there is a bona fide purchaser for the rights and improvements of the
applicant on the land, and that the conveyance is not made for purposes of
speculation, then the applicant, with the previous approval of the Secretary
of Agriculture and Natural Resources, may transfer his rights to the land
and improvements to any person legally qualified to apply for a.
homestead, and immediately after such transfer, the purchaser shall file a
homestead application to the land so acquired and shall succeed the
original homesteader in his rights and obligations beginning with the date
of the approval of said application of the purchaser. Any person who has so
transferred his rights may once again apply for a new homestead. Every
transfer made without the previous approval of the Secretary of Agriculture
and Natural Resources shall be null and void and shall result in the
cancellation of the entry and the refusal of the patent.
Section 22. Any non-Christian native who has not applied for a homestead,
desiring to live upon or occupy land on any of the reservations set aside for
the so-called non-Christian tribes may request a permit of occupation for any tract of land of the public domain reserved for
authorized tosaid non-Christian
transact tribes underinthisthe
business Act, the area of whichIslands,
Philippine shall not exceed
andfour hectares. It shall b
corporate bodies organized in the Philippine Islands authorized
For each the sum of one peso shall be paid. under their charters to do so, may purchase any tract of public
(As amended by Sec. 2 of Act 3219 and Sec. 4 of Act 3517). agricultural land disposable under this Act, not to exceed one hundred
and forty-four hectares in the case of an individual and one
thousand and twenty-four hectares in that of a corporation or
association, by proceeding as prescribed in this chapter: PROVIDED,
That partnerships shall be entitled to purchase not to exceed the one
thousand and twenty-four hectares authorized in this section for
associations and corporations: PROVIDED, further, That citizens of
countries the laws of which grant to citizens of the Philippine Islands the
same right to acquire public land as to their own citizens, may, while such
laws are in force, but not thereafter, with the express authorization of the
Legislature, purchase any parcel of agricultural land, not in excess of one
hundred and forty-four hectares available under this Act, upon complying
with the requirements of this chapter. (As amended by sec, 3 of Act No.
SALES PATENT 3219).
PUBLIC AGRICULTURAL LANDS Section 24. No person, corporation, association, or partnership other than
Governed by Chapter 5 of the Public Land Act those mentioned in the last proceeding section may acquire or own
Any citizen of lawful age or the head of the family may purchase any agricultural public land or land of any other denomination or classification,
tract of public agricultural land not to exceed 12 hectares which not used for industrial or residence purposes, that is at the time or was
shall be sold through sealed bidding originally, really or presumptively, of the public domain. or any permanent
The land shall be awarded to the highest bidder, but the applicant improvement thereon, or any real right on such land and improvement:
may equal the highest bid PROVIDED, however, That persons, corporations, associations, or
The purchase price may be paid in full upon the making of the award partnerships which, at the date upon which this Act shall take effect, hold
or in not more than 10 equal annual installments from the date of agricultural public lands or land of any other denomination not used for
the award industrial or residence purposes, that belonged originally, really or
It is required that the purchaser shall have not less than 1/5 of the presumptively, to the public domain, or permanent improvements on such
land cultivated within 5 years from the date of the award, and lands, or a real right upon such lands and improvements, having acquired
before any patent is issued, he must show actual occupancy, the same under the laws and regulations in force at the date of such
cultivation and improvement of at least 1/5 of the land until the acquisition, shall be authorized to continue holding the same as if such
date of final payment persons, corporations, associations, or partnerships were qualified under
the last preceding section; but they shall not encumber, convey, or
CHAPTER V. SALE alienate the same to persons, associations, corporations, or partnerships
not included in section twenty-three of this Act, except by reason or
hereditary
Section 23. Any citizen of lawful age of the Philippine Islands or of the United States, and any such citizen not of lawfulsuccession, duly
age who is head legalized
of a family, and
and any acknowledged
corporation by of
or association competent
which at least sixty-one per centu
courts.
Section 25. Lands sold under the provisions of this chapter must be
appraised in accordance with section one hundred and fourteen of this Act.
The Director of Lands shall announce the sale thereof by publishing the
proper notice once a week for six consecutive weeks in the Official Gazette
and in two newspapers, one published in Manila and the other published in
the municipality or in the province where the land is located, or in a
the bid, may be paid in full upon the making of the award, or in not more
neighboring province, and the same notice shall be posted on the bulletin
than ten annual installments from the date of the award: PROVIDED, That
board of the Bureau of Lands in Manila, and in the most conspicuous place
it shall be an inherent and essential condition of the sale that the purchaser
in the provincial building and the municipal building of the province and the
shall have not less than one third of the land broken and cultivated within
municipality where the land is located, and if practicable, on the land itself;
five years after the date of the award. (As amended by section 7 of Act No.
but if the value of the land does not exceed two hundred and forty pesos,
3219).
the publication in the Official Gazette and newspapers may be omitted. The
notices shall be published one in English and the other in Spanish or in the
Section 29. After at least the second installment has been paid and
local dialect, and shall fix a date not earlier than sixty days after the date
after the cultivation of the land has been begun, the purchaser,
of the notice upon which the land will be awarded to the highest bidder, or
with the approval of the Secretary of Agriculture and Natural
public bids will be called for, or other action will be taken as provided in
Resources, may convey or encumber his rights to any person,
this chapter. (As amended by section 4 of Act No. 3219).
corporation, or association legally qualified under this Act to
purchase agricultural public lands, provided such conveyance or
Section 26. All bids must be sealed and addressed to the Director of Lands,
encumbrance does not affect any right or interest of the
and must have therewith cash or a certified check or post-office money
Government in the land. Any sale and encumbrance made without
order payable to the order of the Director Of Lands, for ten per centum of
the previous approval of the Secretary of Agriculture and Natural
the amount of the bid, which amount shall be retained in case the bid is
Resources shall be null and void and shall produce the effect of
accepted, as part payment of the purchase price: PROVIDED, That no bid
annulling the acquisition and reverting the property and all rights
shall be considered the amount of which is less than the appraised value of
thereto to the Government, and all payments on the purchase price
the land. (As amended by section 5 of Act No. 3219).
theretofore made to the Government shall be forfeited After the
sale has been approved, the vendor shall not lose his right to
Section 27. Upon the opening of the bids the land shall be awarded to the
acquire agricultural public lands under the provisions of this Act,
highest bidder. If there are two or more bids which are higher than other
provided he has the necessary qualifications.
bids and are equal, and one of such higher and equal bids is the bid of the
applicant, his bid shall be accepted. If, however, the bid of the applicant is
Section 30. Before any patent is issued, the purchaser must show
not one of such equal and higher bids, the Director of Lands shall at once
actual occupancy, cultivation, and improvement of at least one-
submit the land for public bidding, and to the-person making the highest
fourth of the land applied for until the date on which final payment
bid on such public auction the land shall be awarded. In any case the
is made. (As amended by section 5 of Act No. 3517).
applicant, if any shall always have the option of raising his bid to equal that
of the highest bidder, and in this case the land shall be awarded to him. No
Section 31. If at any time after the date of the award and before the
bid received at such public auction shall be finally accepted until the bidder
issuance of patent, it is proved to the satisfaction of the Director of Lands,
shall have deposited ten per centum of his bid, as required in section
after due notice to the purchaser, that the purchaser has voluntarily
twenty-six of this Act. In case none of the tracts of land that are offered for
abandoned the land for more than one year at any one time, or has
sale or the purchase of which has been applied for, has an area in excess
otherwise failed to comply with the requirements of the law, then the land
of twenty-four hectares, the Director of Lands may delegate to the
shall revert to the Government and all prior payments of purchase
Provincial treasurer concerned the power of receiving bids, holding the
money shall be forfeited.
auction, and proceeding in accordance with the provisions of this Act, but
the provincial treasurer, in his capacity as delegate of the Secretary of
Section 32. No person, corporation, association, or partnership shall be
Agriculture and. Natural Resources shall submit his recommendations to
permitted, after the approval of this Act, to acquire the title to or posses as
the Director of Lands for the final decision of the latter in the case. (As
owner any lands of the public domain if such lands, added to other land
amended by section 6 of Act No. 3219).
belonging to such person, corporation, association, or partnership shall
give a total area greater than the area the acquisition of which by purchase
Section 28. The purchase price shall be paid as follows: The balance of the
is authorized under this Act. Any excess in area over this maximum and all
purchase price after deducting the amount paid at the time of submitting
right, title, interest, claim, or action held by any person, corporation,
association, or partnership resulting directly or indirectly in such excess shall revert to the Government. LANDS FOR RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL
PURPOSE
This section shall, however, not be construed to prohibit any person, corporation, association, or partnership authorized by this Act to Thelands
acquire disposition
of the publicof lands
domain fromwhich are upon
making loans intended for
real estate residential,
security and from purchasing real estate
commercial, or industrial purposes is governed by Chapter 9 of
the Public Land Act
The person, corporation, association, or partnership owning the land in excess of the limit established by this Act shall determine the portion
Landsof the landthis
under to bechapter
segregated.are classified as:
o Lands reclaimed by the government by dredging, filling
At the request of the Secretary of Agriculture and Natural Resources, the Attorney-General, or the officer acting in his stead shall institute the necessary orproceedings
other means in the proper court for the purpose of determining the excess portion to be segr
o Foreshore
o Marshy lands or lands covered with water bordering on
Section 33. This chapter shall be held to authorize only one purchase of the maximum amount of land hereunder by the same person, corporation, association, the shoresor partnership;
or banks and no corporation,
of navigable association,
lakes or rivers or partnership, any member of which
o Lands not included in any of the foregoing classes
But any purchaser of public land, after having made the last payment upon and cultivated at least one-fourth of the land purchased, ifthe The
samefirst two
shall shall
be less bethe
than disposed
maximumofallowed
by lease only
by this Act may purchase successively additional agricultural
The last two may be sold with the condition that the purchaser shall
make improvements of a permanent character appropriate for the
purpose for which the land is purchased within 18 months from
the date of the award
The lease or sale shall be made through oral bidding, and
adjudication shall be made to the highest bidder
However, where an applicant has made improvements on the land by
virtue of a permit issued to him by a competent authority, the sale
or lease shall be made by sealed bidding as prescribed by Section
26 of the Public Land Act
Section 60 expressly requires congressional authority before lands
under Section 59 which the government had previously
transferred to government units or entities could be sold to
private parties
CHAPTER IX.
CLASSIFICATION AND CONCESSION OF PUBLIC LANDS SUITABLE
FOR COMMERCE AND INDUSTRY
Section 55. Any tract of land of the public domain which, being
neither timber nor mineral land, shall be classified as suitable for
residential purposes or for commercial, industrial, or other
productive purposes or for commercial, industrial, or other
productive purposes other than agricultural purposes, and shall be
open to disposition or concession, shall be disposed of under the
provisions of this chapter, and not otherwise.
Section 56. The lands disposable under this title shall be classified as
follows:
Lands reclaimed by the Government by dredging, filing, or other means;
Foreshore
Marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers
Section 57. Any tract of land comprised under this title may be leased, or sold, as the case may be, to any person, corporation, or association authorized to purchase or lease public lands for agricultural purposes. The area o
Section 58. The lands comprised in classes (a), (b), and (c) of section fifty-six shall be disposed of to private parties by lease only and not otherwise, as soon as the Governor-General, upon recommendation by the Secre
Section 59. The lands reclaimed by the Government by dredging, filling, or otherwise shall be surveyed and may with the approval of the Secretary of Agriculture and Natural Resources, be divided by the Director of Lands in
and said Director shall give notice to the public, by publication in the Official Gazette or by other means, that the lots or blocks not needed for public purposes shall be leased for commercial or industrial or other similar pur
Section 60. Whenever it is decided that lands covered by this chapter are not needed for public purposes, the Director of Lands shall ask the Secretary of Agriculture and Natural Resources for authority to dispose of the s
Section 61. The leases executed under this chapter by the Secretary of Agriculture and Natural Resources shall, among other conditions, contain the following:
The rental shall not be less than three per centum of the appraised and reappraised value of the lands and one per centum of the appraised or reappraised value of the improvement
The land rented, or the improvements thereon, as the case may be, shall be reappraised every ten years if the term of the lease is in excess of that period.
The term of the lease shall be as prescribed by section thirty-seven of this Act.
The lessee shall construct permanent improvements appropriate for the purpose for which the lease is granted, shall commence the construction thereof within six months from the date of the award of the contract of leas
At the expiration of the lease or of any extension of the same, all improvements made by the lessee, his heirs, executors, administrators, successors, or assigns shall become the property of the Government.
The regulation of all rates and fees charged to the public; and the annual submission to the Government for approval of all tariffs of such rates and fees.
shall be made by sealed bidding as prescribed in section twenty- seven of this Act, the provisions of which shall be
The continuance of the easements of the coast place and other easements reserved by existing law or by any laws hereafter enacted by the Legislature.
Section 65. The Secretary of Agriculture and Natural Resources may grant temporary permission, upon payment of a
Subjection to all easements and other rights acquired by the owners of lands bordering upon the foreshore or marshy land.
The violation of one or any of the conditions specified in the contract shall give rise to the rescission of said contract. The Secretary of Agriculture and Natural Resources may, however, subject to such conditions as he may prescribe, waive the resc
Section 62. The sale of the lands comprised in class (d) of section fifty-six shall, among others, comprise the following conditions:
The purchaser shall make improvements of a permanent character appropriate for the purpose for which the land is purchased, shall commence work thereon within six months from the receipt of the approval of the purchase, and shall com
The purchase price shall be paid cash down or in annual installments, not to exceed ten. LANDS FOR RESIDENTIAL PURPOSES—DIRECT SALE
RA 730 allows the direct sale of public lands for residential purposes
The contract of sale may contain other conditions not inconsistent with the provisions of this Act. (As amended by section 13 of Act 3219to
andqualified
section 14applicants
of Act 3517).under certain conditions
To be qualified, the applicant must be—
o Be a Filipino citizen of legal age
Section 63. The kind of improvements to be made by the lessee or the purchaser, and the plans thereof, shall be approved by the Secretary of Commerce
o Must andnot
Communications,
be the owner in case
of athey are constructions
home or improvements which, if made by th
lot in the municipality
or city in which he resides
o
Section 64. The lease or sale shall be made through oral bidding; and adjudication shall be made to the highest bidder. However, where an applicant Have established
has made in good
improvements on thefaith hisvirtue
land by residence on issued
of a permit a parcel
to him by competent auth
of public land which is not needed for public service
o Have constructed his house and actually resided therein
If the applicant complies with the above, he is given preference to
purchase at a private sale not more than 1000 sq.m. of land at a
price to be fixed by the Director of Lands
RA 730 merely provides an exception to Sections 61 and 67 of CA
141
FREE PATENT
Any natural born citizen of the Philippines who is the owner of
more than 12 hectares and who, for at least 30 years prior to the
effectivity of this amendatory Act, has continuously occupied and
cultivated, either by himself or through his predecessors-in-
interest a tract or tracts of agricultural public lands subject to
disposition, who shall have paid the real estate tax thereon while
the same hasn’t been occupied by any person shall be entitled,
under the provisions of this Chapter, to have a free patent issued
to him for such tract or tracts of such land not to exceed 12
hectares
PD 1073—apply only to A and D lands of the public domain which
have been in open, continuous, exclusive, and notorious
possession and occupation by the applicant himself or thru his
predecessors-in-interest, under a bona fide claim of ownership
Section 44.
42. The persons specified inupon
Governor-General, the next following section
recommendation areSecretary
of the hereby granted time, not
of Agriculture andtoNatural
extend Resources
beyond December thirty-first,
shall from time to timenineteen
fix by hundred and thirty-eight,
proclamation withinwhich
the period within whichapplications
to take advantage
for freeofpatents
the benefits
may beoffiled
this chapter: PROVIDED,
in the district, Tha
province
Section 45. The following described citizens of the Philippine Islands and the United States, occupying lands of the public domain or claiming to own any such lands or an interest therein, but whose titles have not been perfected or complete
confirmation of their claims and the issuance of a certificate of title
for purchase, composition or other form of grant, the extent of the
therefor, under the Land Registration Act, to wit:
compliance with the conditions required by the Spanish laws and
royal decrees for the acquisition of legal title, and if not fully
(a) Those who prior to the transfer of sovereignty from Spain to
complied with the reason for such non-compliance, together with a
the United States have applied for the purchase, composition or
statement of the length of time such land or any portion thereof
other form of grant of lands of the public domain under the laws
has been actually occupied by the claimant or his predecessors in
and royal decrees then in force and have instituted had prosecuted
interest; the use made of the land, and the nature of the inclosure,
the proceedings in connection therewith, but have, with or without
if any.
default upon their part, or for any other cause, not received title
therefor, if such applicants or grantees and their heirs have
The fees provided to be paid for the registration of lands under the Land
complied and cultivated said lands continuously since the filing of
Registration Act shall be collected from applicants under this chapter.
their applications.
Section 48. Applications for registration under this chapter shall be heard in
(b) Those who by themselves or through their predecessors in
the Court of First Instance in the same manner and shall be subject to the
interest have been in the open, continuous, exclusive, and
same procedure as established in the Land Registration Act for other
notorious possession and occupation of agricultural lands of the
applications except that a notice of all such applications, together with a
public domain, under a bona fide claim of acquisition of ownership
plan of the lands claimed, shall be immediately forwarded to the Director of
except as against the Government, since July twenty-sixth,
Lands, who may appear as a party in such cases: PROVIDED, That prior to
eighteen hundred and ninety-four except when prevented by war
the publication for hearing, all of the papers in said case shall be
or force majeure. These shall be conclusively presumed to have
transmitted by the clerk of the Attorney-General or officer acting in his
performed all the conditions essential to a Government grant and
stead, in order that he may, if he deems it advisable for the interests of the
shall be entitled to a certificate of title under the provisions of this
Government, investigate all of the alleged in the application or otherwise
chapter.
brought to his attention. The Attorney-General shall return such papers to
the clerk as soon as practicable within three months.
Section 46. No person claiming title to lands of the public domain not in
possession of the qualifications specified in the last preceding section may
The final decree of the court shall in every case be the basis for the original
apply for the benefits of this chapter.
certificate of title in favor of the person entitled to the property under the
procedure prescribed in section forty-one of the Land Registration Act.
Section 47. Any person or persons, or their legal representatives as
successors in right, claiming any lands or interest in lands under
Section 49. In cadastral proceedings, instead of an application an answer
the provisions of this chapter, must every case present an
or claim may be filed with the same effect as in the procedure provided in
application to the proper Court of First Instance, praying that the
the last preceding two sections.
validity of the alleged title or claim be inquired into and that a
certificate of title issue to them under the provisions of the Land
Section 50. It shall be lawful for the Director of Lands, whenever in the
Registration Act.
opinion of the Governor-General the public interests shall require it, to
cause to be filed in the proper Court of First Instance, through the
The application shall conform is nearly as may be in its material allegations
Attorney-General or the officer acting in his stead, a petition against the
to the requirements of an application for registration under the Land
holder, claimant, possessor, or occupant of any land who shall not have
Registration Act, and shall be accompanied by a plan of the land and
voluntary come in under the provisions of this chapter or of the Land
all documents evidencing a right on the part of the applicant to the
Registration Act , stating in substance that the title of such holder,
land claimed. The application shall also state the citizenship of the
claimant, possessor, or occupant is open to discussion; or that the
applicant and shall set forth fully the nature of the claim, and when
boundaries of any such land which has not been brought into court as
based upon proceedings initiated under Spanish laws, it shall
aforesaid are open to question; or that it is advisable that the title to such
specify as exactly as possible the date and form of the application
lands be settled and adjudicated, and praying that the title to any such
land or the boundaries thereof or the right to occupancy thereof be settled occupancy, or under or by virtue of any law in effect prior to American occupation, except as expressly provided by la
and adjudicated. The judicial proceedings under this section shall be in
accordance with the laws on adjudication of title in cadastral proceedings.
Section 51. If in the hearing of any application arising under this chapter RESERVATIONS
the court shall find that more than one person or claimant has an interest Chapter 12 of Public Land Act
in the land such conflicting interests shall be adjudicated by the court and Upon the recommendation of the Secretary of DENR, the President
decree awarded in favor of the person or persons entitled to the land may designate by proclamation any tract/s of land of the public
according to the laws, but if none of said persons is entitled to the land, or domain as reservations for the use of the RP or any of its
if the person who might be entitled to the same lacks the qualifications branches, or of the inhabitants thereof, in accordance with the
required by this Act for acquiring agricultural land of the public domain, the regulations prescribed for this purpose, or for quasi-public uses or
decision shall be in favor of the Government. purposes when the public interest requires it
A certified copy of this proclamation shall be forwarded to the RD of
Section 52. Whenever, in any proceedings under this chapter to secure the province or city where the land lies
registration of an incomplete or imperfect claim of title initiated prior to the Upon receipt of such copy, the Director of Lands shall order the
transfer of sovereignty from Spain to the United States, it shall appear that immediate survey of the proposed reservation if the land has not
had such claims been prosecuted to completion under laws prevailing when been yet surveyed, and as soon as the plat has been completed,
instituted, and under the conditions of the grant then contemplated, the he shall proce3ed in accordance with the next following section
conveyance of such land to the applicant would not have been gratuitous, The tract/s reserved shall be non-alienablen and shall not be
but would have involved payment therefor to the Government, then and in subject to any occupation, entry, sale, lease, or other disposition
that event the court shall, after decreeing in whom title should vest, until again declared as alienable and disposable
further determine the amount to be paid as a condition for the registration
of the land. Such judgment shall be certified to the Director of Lands by the
CHAPTER XII
clerk of the court for collection of the amount due from the person entitled
RESERVATIONS FOR PUBLIC AND SEMI-PUBLIC PURPOSES
to conveyance.
Section 80. Upon receipt of the order of the President of the United
Upon payment to the Director of Lands of the price specified in the
States, the Governor-General shall, by proclamation, designate
judgment, he shall so certify to the proper Court of First Instance and said
such land as the President of the United States may set aside for
court shall forthwith order the registration of the Land in favor of the
military, naval, or other reservations for the use of the
competent person entitled thereto. If said person shall fail to pay the
Government of the United States.
amount of money required by the decree within a reasonable time fixed in
the same, the court shall order the proceeding to stand dismissed and the
Section 81. Upon the recommendation of the Secretary of Agriculture and
title to the land shall then be in the Government free from claim of the
Natural Resources, the Governor-General may designate by
applicant.
proclamation any tract or tracts of land of the public domain as
reservations for the use of the Government of the Philippine
Section 53. Whenever any judgment of confirmation or other decree of the
Islands or of any of its branches, or of the inhabitants thereof, in
court under this chapter shall become final, the clerk of the court
accordance with regulations prescribed for this purpose, or for
concerned shall certify that fact to the Director of Lands, with a certified
quasi-public uses or purposes when the public interest requires it,
copy of the decree of confirmation or judgment of the court and the plan
including reservations for highways, rights of way for railroads,
and technical description of the land involved in the decree of judgment of
hydraulic power sites, irrigation system, communal pastures or
the court.
leguas communales, public parks, public quarries, public
fishponds, and other improvements for the public benefit. (As
Section 54. No title to, or right or equity in, any lands of the public domain
amended by section 16 of Act No. 3219).
may hereafter be acquired by prescription or by adverse possession or
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 80 of 127
reserved to any person or corporation, in order that such person or corporation may clear, break, and prepare for cul
Section 82. Upon the recommendation of the Secretary of Agriculture and Natural Resources, the Governor-General may, by proclamation, designate any tract or tracts of the public domain for the exclusive use of the non- Christian natives, includ
or other chiefs of the so-called non-Christians tribes, without the authority of the Spanish Government while the Philippine Islands were under the sovereignty of Spain, or without the consent of the United States Government or of the Philippine
Section 83. Upon recommendation by the Secretary of Agriculture and Natural Resources, the Governor-General may, by proclamation, designate any tract or tracts of land of the public domain for establishment of agricultural colonies; and althou
The Secretary of Agriculture and Natural Resources may also, under conditions to be established by the Legislature, turn over a colony so
SPECIAL PATENTS
Patent to grant, cede, and convey full ownership of alienable and
disposable lands formerly covered by a reservation of lands of the
public domain and is issued upon the promulgation of a special
law or act of Congress or by the DENR Secretary as authorized by
the President
FRIAR LANDS
Were purchased by the government for sale to actual occupants
under the provisions of Act 1120 or the Friar Lands Act
These lands are not public lands but private and patrimonial lands
of the government
The LMB shall first issue a certificate stating therein that the
government has agreed to sell the land to such settler or occupant
The latter shall then accept the certificate and agree to pay the
purchase price so fixed, in installments and at the rate of interest
specified in the certificate
The conveyance or certificate of sale executed in favor of a buyer is
a conveyance of ownership of the property, subject only to the
resolutory condition that the sale may be cancelled if the price
agreed upon is not paid in full
RULE
After the tenant-farmer WHEN
shall have fullyHOMESTEAD
complied with theIS SUBJECTfor
requirements OFa grant
MORTGAGE
of title under P.D. No. 27, an Emancipation Patent which may cover previously titled or untitled property shall be issued by the Department of Agrarian Refor
The five-year period begins from the date when the deed of
absolute
The Register of Deeds shall complete saleon
the entries is the
executed and the
aforementioned property is
Emancipation formally
Patent transferred
and shall assign an original certificate of title number in case of unregistered land, and in case of registered property, shall issue the corresponding
to the purchaser
The tenant farmer, whether in land classified as landed estate or not, shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated;
In as much as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension,
The redress of such legitimate grievances being one of the fundamental objectives of the New Society,
Since Reformation must start with the emancipation of the tiller of the soil from his bondage,
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander- in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated
All laws, executive orders, decrees and rules and regulations, or parts d) All private lands devoted to or suitable for agriculture regardless of the
thereof, inconsistent with this Decree are hereby repealed and or modified agricultural products raised or that can be raised
thereon.
accordingly.
xxx
Done in the City of Manila, this 21st day of October, in the year of Our
Lord, nineteen hundred and seventy-two.
SEC. 6. Retention Limits.- --Except as otherwise provided in this Act, no
RA 6657 OR COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 person may own or retain, directly, any public or private agricultural land,
Agrarian reform program is founded on the right of farmers and the size of which shall vary according to factors governing a viable family-
regular farm workers, who are landless, to own directly or sized farm, such as commodity produced, terrain, infrastructure, and soil
collectively the lands they till, or in case of other farm workers, to fertility as determined by the Presidential Agrarian Reform Council (PARC)
receive a just share on the fruits thereof created hereunder, but in no case shall retention by the landowner exceed
To this end, the State shall encourage and undertake the just five (5) hectares. Three (3) hectares may be awarded to each child to the
distribution of all agricultural lands, subject to the priorities and landowner, subject to the following qualifications: (1) that he is at least
retention limits set forth in the law, taking into account ecological, fifteen (15) years of age; and (2) that he is actually tilling the land or
developmental, and equity considerations and subject to the directly managing the farm: Provided That landowners whose lands have
payment of just compensation been covered by Presidential Decree No. 27 shall be allowed to keep the
The State shall respect the right of small landowners, and shall area originally retained by them thereunder ; Provided, further, That
provide for voluntary land-sharing original homestead grantees or direct compulsory heirs who still own the
original homestead at the time of the approval of this Act shall retain the
same areas as long as they continue to cultivate said homestead.
SEC. 4. Scope. The Comprehensive Agrarian Reform Law of 1988 shall The right to choose the area to be retained, which shall be compact or
cover, regardless of tenurial arrangement and commodity produced, all contiguous, shall pertained, to the land owner ; provided, however, That in
public and private agricultural lands as provide in proclamation No. 131 case the area selected for retention by the landowner ; is tenanted, the
and Executive Order No.229, including other lands of the public domain tenant shall have the option to choose whether to remain therein be a
suitable for agriculture. beneficiary in the same or or another agricultural land with similar or
comparable features. In case the tenant chooses to remain in the retained
More specifically, the following lands are covered by the Comprehensive area, he shall be considered a leaseholder and shall lose his right to be a
Agrarian Reform Program: beneficiary in another agricultural land, he loses his right as a leaseholder
to the land retained by the landowner. The tenant must exercise this
a) All alienable and disposable lands of the public domain devoted to or option within a period of one (1) year from the time the landowner
suitable for agriculture. No reclassification of forest or mineral lands to manifests his choice of the area for retention.
agricultural lands shall be undertaken after the approval of this Act until
Congress, taking into account ecological, developmental and equity In cases, the security of tenure of the farmers or farm workers on the land
considerations, shall have determined by law, the specific limits of the prior to the approval of this Act shall be respected.
public
domain; Upon the effectivity of this Act, any sale, disposition, lease, management
contract or transfer of position of private lands executed by the original
b) All lands of the public domain in excess to the specific limits as landowner in violation of this Act shall be null and void: Provided,
determined by Congress in the preceding however, That those executed prior to this Act shall be valid only when
paragraph; registered with the Register of Deeds within a period of three (3) months
after the effectivity of this Act . Thereafter, all registers of Deeds shall
c) All other lands owned by the Government devoted to or suitable for inform the DAR within thirty (30) days of any transaction involving
agricultural lands in excess of five (5) hectares.
xxx
(1) Cash payment, under the following terms and conditions:
SEC. 10. Exemptions and Exclusions.-
(a) watersheds
Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sunctuaries and breeding grounds, For landsand
above fifty (50)
mangroves shallhectares,
be exemptinsofar as the
from the excess
coverage of hectarage
this Act. is
concerned --- Twenty-five percent (25%) cash the balance to be paid in
government financial instruments negotiable at any time.
Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act: Provided, That said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award
(b) For lands above twenty-four hectares and up to fifty (50) hectares --
Lands actually, directly and exclusively used and found to be necessary for national defense, school sites and campuses, includingThirty percent
experimental farm(30%)
stationscash theby
operated balance
public orto be paid
private infor
schools government financial
educational purposes, seeds and seedlings rese
instruments negotiable at any time.
xxx
(c) For lands twenty-four (24) hectares and below ---Thirty-five percent
(35%) cash the balance to be paid in government financial instruments
SEC. 18. Valuation and mode of compensation .---The LBP shall compensate the landowner in such amount as as may be agreed negotiable
upon by the landowner and the DARatand LBP or as may be finally
any determined by the court as just compensation for th
time.
The compensation shall be paid in one of the following modes at the optionsofthelandowner:
(2) Shares of stock in government-owned or controlled corporations, LBP
preferred shares, physical assets or other qualified investments in
accordance with guidelines set by the PARC;
(3) Tax credits which can be used against any tax liability ;
(a) Market interest rates aligned with 91-days treasury bill rates. Ten
percent (10%) of the face value of the bonds shall mature every year from
the date of issuance until the tenth (10th) year: Provided, That should the
landowner choose to forego the cash portion, whether in full or in part, he
shall be paid correspondingly in LBP bonds:
(b) Transferability and negotiability. Such LBP bonds may be used by the
landowner, his successors in interest or his assigns, up to the amount of
their face value for any of the following:
(iii) Substitution for surety or bail bonds for the provisional release of
accused persons, or for performance bonds;
(iv) Security for loans with any government financial institution, provided
(c) The voluntary agreement shall include sanctions for non-compliance by
the proceeds of the loans shall be invested in an economic enterprise,
either party and shall be duly recorded and its implementation monitored
preferably in a small and medium -scale industry, in the same province or
by the DAR.
region as the land for which the bonds are paid;
SEC. 21. Payment of compensation by Beneficiaries under voluntary Land
(v) Payment for various taxes and fees to government : Provided, That the
Transfer.--- Direct payment in cash or in kind may be made by the farmer-
use of these bonds for these purposes will be limited to a certain
beneficiary to the landowner under terms to be mutually agreed upon by
percentage of the outstanding balance of the financial instrument :
both parties, which shall be binding upon them, upon registration with and
Provided, further, That the PARC shall determine the percentages mention
approval by the DAR. Said approval shall be considered given, unless
above;
notice of disapproval is received by the farmer-beneficiary within 30 days
form the date of registration.
(vi) Payment for tuition fees of the immediate family of the original
In the event they cannot agree on the price of land, the procedure for
bondholder in government universities, colleges, trade schools and other
compulsory acquisition as provided in Section 16 shall apply. The LBP shall
institutions;
extend financing to the beneficiaries for purposes of acquiring the land.
xxx
(vii) Payment for fees of the immediate family of the original bondholder in
government hospitals; and SEC. 26. Payment by beneficiaries .---Lands awarded pursuant to this Act
shall be paid for by the beneficiaries to the LBP in thirty (30) annual
(viii) Such other uses as the PARC may from time to time to allow. amortizations at six percent (6%) interest per annum. The payments for
the firs three (3) years after the award may be at reduced amounts as
In case of extraordinary inflation, the PARC shall take appropriate established by the PARC : Provided, That the first five percent (5%) of the
measures to protect the economy. value of the annual gross production as established by the DAR. Should the
scheduled annual payments after the fifth year exceed ten percent (10) of
SEC. 19. Incentives for Voluntary offers for Sale.--Landowners, other than the annual gross production and the failure to produce accordingly is not
banks and other financial institutions, who voluntarily offer their lands for due to the beneficiary's fault, the LBP may reduce the interest rate or
sale shall be entitled to an additional five percent (5%) cash payment. reduce the principal obligation to make the payment affordable.
SEC. 20.Voluntary Land Transfer.-- Land owners of agricultural lands The LBP shall have a lien by way of mortgage on the land awarded to
subject to acquisition under this Act may enter into a voluntary beneficiary ; and this mortgage be foreclosed by the LBP for non-payment
arrangement for direct transfer of their lands to qualified beneficiaries of an aggregate of three (3) annual amortizations. The LBP shall advise the
subject to the following guidelines : DAR of such proceedings and the latter shall subsequently award the
forfeited landholding to other qualified beneficiaries. A beneficiary whose
(a) All notices for voluntary land transfer must be submitted to the DAR land, as provided herein, has been foreclosed shall thereafter be
within the first year of the implementation of the CARP. Negotiations permanently disqualified from becoming a beneficiary under this ACT.
between the landowners and qualified beneficiaries covering any voluntary
land transfer which remain unresolved after one (1) year shall not be SEC. 27. Transferability of Awarded Lands. ---Lands acquired by
recognized and such land shall instead be acquired by the government and beneficiaries under this ACT may not be sold, transferred or conveyed
transferred pursuant to this Act. except through hereditary succession, or to the government, or to the LBP,
or to other qualified beneficiaries for a period of ten (10) years: Provided,
(b) The terms and conditions of such transfer shall not be less favorable to however, That the children or the spouse of the transferor shall have a
the transferee than those of the government 's standing offer to purchase right to repurchase the land from the government or LBP within a period of
from the landowner and to resell to the beneficiaries, if such offers have two (2) years. Due notice of the availability of the land shall be given by
been made and are fully known to both parties.
the LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian Coordinating Committee (PARCCOM), As herein provided, shall, in turn, be given due notice thereof by the BARC.
xxx
If the land has not yet been fully paid by the beneficiary, the right to the land may be transferred or conveyed, with prior approval of the DAR,
SEC. 70.to any heir of the beneficiary
Disposition of Private or to any other beneficiary
Agricultural who, as aThe
Lands.--- condition
salefor or
such transfer or convey
disposition of agricultural lands retained by a landowner as a consequence
In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sum for the amounts the latter has of Section
already 6 hereof
paid, together shall
with be valid
the value as long as
of improvements themade
he has total
on landholdings
the land. that
shall be owned by the transferee thereof inclusive of the land to be
xxx acquired shall not exceed the landholdings ceilings provided for
in this Act> Any sale or disposition of agricultural lands after the
effectivity of this Act found to be contrary to the provision hereof shall be
SEC.51. Finality of Determination .---Any case or controversy before it shall be decided within thirty (30) days after it is submitted fornull
resolution.
and Only one (1)
void. motion for consideration
Transferees shall be allowed.
of agricultural lands Any order,furnish
shall ruling or decision
the shall be final afte
appropriate Register of Deeds and the BARC an affidavit attesting that his
xxx total landholdings as a result of the said acquisition do not exceed the
landholding ceiling. The Register of Deeds shall not register the transfer of
any agricultural land without the submission of this sworn statement
SEC. 65. Conversion of Lands .--- After the lapse of five (5) years from its award, when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have greater economic v
together with proof of service of a copy thereof to the BARC.
Section 110. Reconstitution of lost or destroyed original of Torrens title. Original copies of certificates of title lost o
affecting the lands covered by such titles shall be reconstituted judicially in accordance with the procedure prescribed in Republic
certificate in Act
theNo. 26 insofar
names as not inconsistent
of petitioner and herwithdeceased
this Decree.husband,
The procedure relative to admin
in lieu of one originally registered in the names of other persons,
the petition
Notice of all hearings of the petition for judicial reconstitution shall be given to the Register of Deeds of the place where the land should beand
is situated denied
to the without prejudice
Commissioner of Landto the rightNo
Registration. oforder
the or judgment ordering
parties to take the necessary action under Section 51 and 53 of
PD1529
RA 26 provides for special procedure for the reconstitution of torrens
certificate of title that are missing and not fictitious titles which
are existing. Where a certificate of title over a parcel of land was
reconstituted judicially and later it was found that there existed a
previous certificate of title covering the same land in the name of
another person, the court ruled that the existence of the prior title
ipso facto nullified the reconstitution proceedings
SOURCES OF RECONSTITUTION
ORIGINAL CERTIFICATES OF TITLE
JUDICIAL RECONSTITUTION UNDER RA 26 1. The owner’s duplicate certificate of title
RA 26: An Act Providing a Special Procedure For The 2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of
Reconstitution of Torrens Certificate of Titles Lost or Destroyed title
Reconstitution of title is an action in rem 3. A certified copy of the certificate of title, previously issued by the
A judicially reconstituted title has the same validity and legal RD or by a legal custodian thereof
effect as the original thereof, and isn’t subject to the reservation 4. An authenticated copy of the decree of registration or patent, as
that it shall be without prejudice to any party whose right or the case may be, pursuant to which the original certificate of title
interest in the property was duly noted in the original at the time was issued
of loss or destruction but which entry or notation hasn’t been 5. A document, on file with the RD, by which the property, the
made on the reconstituted title description of which is given in said document, is mortgaged,
The limitation that reconstitution of title should be limited to the leased, or encumbered, or an authenticated copy of said
certificate as it stood at the time of its loss or destruction has document showing that its original has been registered
reference only to changes which alter or affect title of the 6. Any other document which, in the judgment of the court is
registered owner and not to mere liens and other encumbrances sufficient and proper basis for reconstituting the lost or destroyed
certificate of title
RECONSTITUTION DENOTES RESTORATION OF THE LOST TITLE IN
ITS ORIGINAL FORM AND CONDITION FOR TRANSFER CERTIFICATE OF TITLE
Purpose is to have it reproduced, after observing the procedure 1. The owner’s duplicate certificate of title
prescribed by law in the same form they where when the loss or 2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of
destruction occurred title
The fact that the title to the land was lost doesn’t mean that the lot 3. A certified copy of the certificate of title, previously issued by the
ceased to be a registered land before the reconstitution of its title RD or by a legal custodian thereof
As the subject land didn’t cease to be titled, it cannot be acquired by 4. The deed of transfer or other document, on file in the RD,
acquisitive prescription containing a description of the property, or an authenticated copy
Reconstitution is proper only when it is satisfactorily shown that thereof, showing that its original had been registered, and
the title sought to be reconstituted is lost or no longer available pursuant to which the lost or destroyed transfer certificate of title
Where the petition for reconstitution wasn’t to restore a lost was issued
registered certificate of title but to re-register and issue a new 5. A document, on file with the RD, by which the property, the
description of which is given in said document, is mortgaged,
leased, or encumbered, or an authenticated copy of said
Shall be filed by the registered owner, his assigns, or any person
document showing that its original has been registered
having interest in the property with the proper RTC where the
6. Any other document which, in the judgment of the court is
same is based on sources enumerated earlier
sufficient and proper basis for reconstituting the lost or destroyed
Contents shall be as followed—
certificate of title
1. That the owner’s duplicate had been lost or destroyed
2. That no co-owner’s, mortgagee’s, lessee’s, duplicate had
FOR LIENS AND ENCUMBERANCES
been issued or, if any had been issued, the same had
1. Annotations or memoranda appearing on the owner’s co-owner’s
been lost or destroyed
mortgagee’s or lessee’s duplicate
3. The location, area and boundaries of the property
2. Registered documents on file in the RD, or authenticated copies
4. The nature and description of the buildings or
thereof showing that the originals thereof had been registered
improvements, if any, which don’t belong to the owner of
3. Any other document which, in the judgment of the court is
the land, and the names and addresses of the owners of
sufficient and proper basis for reconstituting the liens or
such buildings or improvements
encumbrances affecting the property covered by the lost or
5. The names and addresses of the occupants or persons in
destroyed certificate of title
possession of the property, of the owners of the adjoining
properties and all persons who may have any interest in
MEANING OF “ANY OTHER DOCUMENT”
the property
As per LRC circular #35, the signed duplicate copy of the petition
6. A detailed description of the encumbrances if any,
to be forwarded to this Commission shall be accompanied by the
affecting the property
following:
7. A statement that no deeds or other instruments affecting
o A duly prepared plan of said parcel of land in tracing
the property have been presented for registration, or if
cloth, with 2 print copies thereof, prepared by the
there be any, the registration thereof hasn’t been
government agency which issued the certified technical
accomplished, as yet
description, or by a duly licensed Geodetic Engineer who
shall certify thereon that he prepared the same on the
REQUIREMENTS OF NOTICE BY PUBLICATION, POSTING AND
basis of a duly certified technical description. Where the
plan as submitted is certified by the government agency MAILING
which issued the same, it is sufficient that the technical 1. To be published twice, at the expense of the petitioner, in
description be prepared by a duly licensed Geodetic successive issues of the Official Gazette
Engineer on the basis of said certified plan. 2. To be posted on the main entrance of the provincial building and
o The original, 2 duplicate copies, and a Xerox copy of the of the municipal building of the municipality or city in which the
original of the technical description of the parcel of land land is situated
covered by the certificate of title, duly certified by the 3. Copy of the notice to be sent by registered mail or otherwise, at
authorized officer of the Bureau of Lands or the LRC who the expense of the petitioner, to every person named therein
issued the technical description whose address is known, within 30 days prior the date of hearing
o A signed copy of the certification of the RD concerned The jurisdiction of the court is hedged in the forewalls of the
that the original of the certificate on title on file with the petition and the published notice of hearing which define the
RD was either lost or destroyed, indicating the name of subject matter of the petition.
the registered owner, if known from the other records in
file in said office. LRC CIRCULAR NO. 35
(b) When the value of the property does not exceed two thousand B. Fees payable to the Sheriff. The sheriff shall collect fees for his
pesos but does not exceed ten thousand pesos, thirty five pesos services rendered in connection with land registration and
for the first three thousand pesos, or fractional part thereof, and cadastral proceedings as follows:
five pesos for each additional one thousand pesos, or fractional
part thereof. 1. For posting notices of initial hearing of land registration cases in
conspicuous places on the lands described in the notice, for each
parcel of land on which a copy of such notice is posted, besides
travel fees, three pesos.
2. For posting notices of initial hearing of cadastral cases in
conspicuous places on the lands included in the survey, for each
group of one hundred lots on which a copy of the notice is posted,
besides travel fees, three pesos.
5. For all other services not mentioned above, the same fees
including travel fees as provided in the Rules of Court for similar
services.
2. Entry fee. For each entry fee in the primary entry book, five
pesos.
12. No specific fee. For any memorandum made in a certificate of (a) Six thousand pesos maximum. When the value of the
title for which no specific fee is prescribe above, for each certificate consideration does not exceed six thousand pesos, seven pesos for
of title, five pesos. the first five hundred pesos, or fractional part thereof, and three
pesos for each additional five hundred pesos, or fractional part
13. Transfer to trustee, executor, administrator receiver. For the thereof.
issuance of a transfer certificate of title, including its duplicate, to a
trustee, executor, administrator, or receiver, or for the cancellation (b) Thirty thousand pesos maximum. When the value of the
of such certificate of title and issuance of a new one, including its consideration is more than six thousand pesos but does not exceed
duplicate, to the cestui que trust in case of trusteeship, ten pesos. thirty thousand pesos, or fractional part thereof, and eight pesos
If the certificate covers more than one parcel or lot, an additional for each additional two thousand pesos, or fractional part thereof.
fee of five pesos shall be collected for each additional parcel or lot.
(c) One hundred thousand pesos maximum. When the value of the
14. Transfer certificate of title. For the issuance of a transfer consideration is more than thirty thousand pesos but does not
certificate of title, including its duplicate, to a person other than exceed one hundred thousand pesos, one hundred fifty pesos for
those named in the next preceding paragraph, ten pesos, in the first thirty-five thousand pesos, or fractional part thereof, and
addition to the fees hereinafter prescribed in paragraph sixteen or fourteen pesos or each additional five thousand pesos, or fractional
seventeen, as the case may be, of this subsection, if the same are part thereof.
also due. If the certificate covers more than one parcel or lot, an
additional fee of five pesos shall be collected for each additional (d) Five hundred thousand pesos maximum. When the value of the
parcel or lot. consideration is more than one hundred thousand pesos but does
not exceed five hundred thousand pesos, three hundred fifty-two
15. Additional copy of title. For the issuance of a new owner's pesos for the first one hundred ten thousand pesos, or fractional
duplicate or a co-owner's copy of a certificate of title, or any part thereof, and twenty pesos for each additional ten thousand
additional duplicate or copy thereof, ten pesos for the first page pesos, or fractional part thereof.
and five pesos for each subsequent page, or fraction thereof.
(e) More than five hundred thousand pesos. When the value of the
16. Registration fee. For the registration of a deed of sale, consideration is more than five hundred thousand pesos, one
conveyance, transfer, exchange, partition, or donation; a deed of thousand one hundred sixty-two pesos for the first five hundred
sale with pacto de retro, conditional sale, sheriff's sale at public twenty thousand pesos, or fractional part thereof, and thirty pesos
auction, sale for non-payment of taxes, or any sale subject to for each additional twenty thousand pesos, or fractional part
redemption, or the repurchase or redemption of the property so thereof.
sold; any instrument, order, judgment or decree divesting the title
of the registered owner, except in favor of a trustee, executor, 17. Fees for specific transactions. In the following transactions,
administrator or receiver; option to purchase or promise to sell; however, the basis of the fees collectible under paragraph sixteen
any mortgage, surety, bond, lease, easement, right-of-way, or
other real right or lien created or constituted by virtue of a distinct
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 100 of 128
12. No specific fee. For any memorandum made in a certificate of (a) Six thousand pesos maximum. When the value of the
title for which no specific fee is prescribe above, for each certificate consideration does not exceed six thousand pesos, seven pesos for
of title, five pesos. the first five hundred pesos, or fractional part thereof, and three
pesos for each additional five hundred pesos, or fractional part
13. Transfer to trustee, executor, administrator receiver. For the thereof.
issuance of a transfer certificate of title, including its duplicate, to a
trustee, executor, administrator, or receiver, or for the cancellation (b) Thirty thousand pesos maximum. When the value of the
of such certificate of title and issuance of a new one, including its consideration is more than six thousand pesos but does not exceed
duplicate, to the cestui que trust in case of trusteeship, ten pesos. thirty thousand pesos, or fractional part thereof, and eight pesos
If the certificate covers more than one parcel or lot, an additional for each additional two thousand pesos, or fractional part thereof.
fee of five pesos shall be collected for each additional parcel or lot.
(c) One hundred thousand pesos maximum. When the value of the
14. Transfer certificate of title. For the issuance of a transfer consideration is more than thirty thousand pesos but does not
certificate of title, including its duplicate, to a person other than exceed one hundred thousand pesos, one hundred fifty pesos for
those named in the next preceding paragraph, ten pesos, in the first thirty-five thousand pesos, or fractional part thereof, and
addition to the fees hereinafter prescribed in paragraph sixteen or fourteen pesos or each additional five thousand pesos, or fractional
seventeen, as the case may be, of this subsection, if the same are part thereof.
also due. If the certificate covers more than one parcel or lot, an
additional fee of five pesos shall be collected for each additional (d) Five hundred thousand pesos maximum. When the value of the
parcel or lot. consideration is more than one hundred thousand pesos but does
not exceed five hundred thousand pesos, three hundred fifty-two
15. Additional copy of title. For the issuance of a new owner's pesos for the first one hundred ten thousand pesos, or fractional
duplicate or a co-owner's copy of a certificate of title, or any part thereof, and twenty pesos for each additional ten thousand
additional duplicate or copy thereof, ten pesos for the first page pesos, or fractional part thereof.
and five pesos for each subsequent page, or fraction thereof.
(e) More than five hundred thousand pesos. When the value of the
16. Registration fee. For the registration of a deed of sale, consideration is more than five hundred thousand pesos, one
conveyance, transfer, exchange, partition, or donation; a deed of thousand one hundred sixty-two pesos for the first five hundred
sale with pacto de retro, conditional sale, sheriff's sale at public twenty thousand pesos, or fractional part thereof, and thirty pesos
auction, sale for non-payment of taxes, or any sale subject to for each additional twenty thousand pesos, or fractional part
redemption, or the repurchase or redemption of the property so thereof.
sold; any instrument, order, judgment or decree divesting the title
of the registered owner, except in favor of a trustee, executor, 17. Fees for specific transactions. In the following transactions,
administrator or receiver; option to purchase or promise to sell; however, the basis of the fees collectible under paragraph sixteen
any mortgage, surety, bond, lease, easement, right-of-way, or
other real right or lien created or constituted by virtue of a distinct
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 101 of 128
Certificate of sale. In a certificate of sale at public auction by virtue of an order of execution or sale for delinquency in the payment of taxes, or repurchase of the property so sold, the basis of the fees in each Registry sh
Affidavit of consolidation of ownership. In an affidavit for the consolidation of ownership over a property sold with pacto de retro or pursuant to an extra judicial foreclosure under the provisions of Act Numbered Thirt
Contract of lease. In contracts of lease, the basis of the fees in each Registry shall be the sum total to be paid by the lessee for the properties situated in the respective city or province during the entire period specified
Termination of lease. In the termination of lease, the basis of the fees in each registry shall be ten per centum of the amount used as basis for the collection of the fees paid for the registration of said lease.
Option to purchase or promise to sell. In contracts of option to purchase or promise to sell, the basis of the fees in each Registry shall be ten per centum of the current assessed value of the property subject of such con
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 104 of 128
19. Certified copy. For certifying a copy furnished under the next
preceding paragraph, for each certification, five pesos for one page
and one peso for each additional page certified.
(e) In case the plan is a resurveyed or relocation plan an additional 40 per cent of the rates prescribed above shall be collected.
Provided, however, that the total fee as computed above, whether for subdivision and/or consolidation-subdivision survey, resurveyed or relocation plan, shall in no case be less than P8.00 per plan.
For changing or correcting the name of any person appearing on the subdivision plan or other plan in order to have it conform to that stated in the certificate of title covering the land, and for the cancellation of an app
The rates of fees prescribed in paragraph 1 and 2, inclusive, shall apply to similar services rendered in connection with the examination, verification, and approval of consolidation, consolidation-subdivision, resubdivisi
In the computation of fees relative to lots subject of consolidation and consolidation-subdivision plans, a fee of two pesos shall be collected per lot as appearing in the old survey in addition to the fee collectible in para
For the preparation of a plan in a tracing cloth of any survey, the data of which are available in the Commission, except when the same is merely traced from an existing plan, the fees shall be computed as follows:
(a) The Register of Deeds for each province or city shall keep a
FORMS USED IN LAND REGISTRATION AND Primary Entry Book and a Registration Book. The Primary Entry
CONVEYANCING Book shall contain, among other particulars, the entry number, the
names of the parties, the nature of the document, the date, hour
Section 112. Forms in conveyancing. The Commissioner of Land and minute it was presented and received. The recording of the
Registration shall prepare convenient blank forms as may be deed and other instruments relating to unregistered lands shall be
necessary to help facilitate the proceedings in land registration effected by any of annotation on the space provided therefor in the
and shall take charge of the printing of land title forms. Registration Book, after the same shall have been entered in the
Primary Entry Book.
Deeds, conveyances, encumbrances, discharges, powers of
attorney and other voluntary instruments, whether affecting (b) If, on the face of the instrument, it appears that it is sufficient
registered or unregistered land, executed in accordance with law in law, the Register of Deeds shall forthwith record the instrument
in the form of public instruments shall be registerable: Provided, in the manner provided herein. In case the Register of Deeds
that, every such instrument shall be signed by the person or refuses its administration to record, said official shall advise the
persons executing the same in the presence of at least two party in interest in writing of the ground or grounds for his refusal,
witnesses who shall likewise sign thereon, and shall acknowledged and the latter may appeal the matter to the Commissioner of Land
to be the free act and deed of the person or persons executing the Registration in accordance with the provisions of Section 117 of
same before a notary public or other public officer authorized by this Decree. It shall be understood that any recording made under
law to take acknowledgment. Where the instrument so this section shall be without prejudice to a third party with a better
acknowledged consists of two or more pages including the page right.
whereon acknowledgment is written, each page of the copy which
is to be registered in the office of the Register of Deeds, or if (c) After recording on the Record Book, the Register of Deeds shall
registration is not contemplated, each page of the copy to be kept endorse among other things, upon the original of the recorded
by the notary public, except the page where the signatures already instruments, the file number and the date as well as the hour and
appear at the foot of the instrument, shall be signed on the left minute when the document was received for recording as shown in
margin thereof by the person or persons executing the instrument the Primary Entry Book, returning to the registrant or person in
and their witnesses, and all the ages sealed with the notarial seal, interest the duplicate of the instrument, with appropriate
and this fact as well as the number of pages shall be stated in the annotation, certifying that he has recorded the instrument after
acknowledgment. Where the instrument acknowledged relates to a reserving one copy thereof to be furnished the provincial or city
sale, transfer, mortgage or encumbrance of two or more parcels of assessor as required by existing law.
land, the number thereof shall likewise be set forth in said
acknowledgment. (d) 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
DEALINGS WITH UNREGISTERED LANDS law, shall likewise be admissible to record under this section.
Section 113. Recording of instruments relating to unregistered lands. No deed, conveyance, mortgage, lease, or other voluntary
(e) For the services to be rendered by the Register of Deeds under
this section, he shall collect the same amount of fees prescribed for
similar services for the registration of deeds or instruments concerning registered lands.
REGISTRATION OF CHATTEL MORTGAGES
REGISTRATION OF INSTRUMENTS DEALING WITH UNREGISTERED Section 114. Recording of chattel mortgages. A chattel mortgage
LAND shall be recorded in the office of the Register of Deeds of the
All instruments affecting lands originally registered under the province or city where the mortgagor resides as well as where the
Spanish Mortgage Law may be recorded under Section 113 until property is situated or ordinarily kept.
the land shall have been brought under the operation of the
Torrens system Section 115. Manner of recording chattel mortgages. Every
Register of Deeds shall keep a Primary Entry Book and a
RECORDING OF MINISTERIAL OFFICERS
Registration Book for chattel mortgages; shall certify on each
Opening paragraph in substance declares that no instrument or deed mortgage filed for record, as well as on its duplicate, the date,
affecting rights to real property not registered under the Torrens hour, and minute when the same was by him received; and shall
system shall be valid except as between the persons thereto, until record in such books any chattel mortgage, assignment or
such instrument or deed shall have been registered in the manner discharge thereof, and any other instrument relating to a recorded
prescribed therein mortgage, and all such instruments shall be presented to him in
This provision cannot be interpreted to include conveyances made
duplicate, the original to be filed and the duplicate to be returned
by ministerial officers, such as sheriff’s deeds
to the person concerned.
It contemplates only instruments as may be created through
agreement between parties
The recording of a mortgage shall be effected by making an entry,
which shall be given a correlative number, setting forth the names
RECORDING SHALL BE WITHOUT PREJUDICE TO A THIRD PERSON
of the mortgagee and the mortgagor, the sum or obligation
WITH BETTER RIGHT
guaranteed, date of the instrument, name of the notary before
whom it was sworn to or acknowledged, and a note that the
RECORDING OF RD MINISTERIAL
property mortgaged, as well as the terms and conditions of the
RD doesn’t exercise a judicial or quasi-judicial power in the
mortgage, is mentioned in detail in the instrument filed, giving the
registration of sheriff’s deeds or certificates of sale
proper file number thereof. The recording of other instruments
If the RD refuses to register the instrument, he shall advise the
relating to a recorded mortgage shall be effected by way of
party in interest in writing of the grounds for his refusal, and the
annotation on the space provided therefor in the Registration
latter may elevate the matter to the Administrator en consulta
Book, after the same shall have been entered in the primary Entry
Book.
HOW RECORDING IS EFFECTED
The RD shall keep a primary entry book and a registration book
The Register of Deeds shall also certify the officer's return of sale
The primary entry book shall contain an entry number, names of
upon any mortgage, making reference upon the record of such
parties, nature of the document, and the date, hour and minute it
officer's return to the volume and page of the record of the
was presented
mortgage, and a reference of such return on the record of the
The recording shall be effected by annotating on the registration
mortgage itself, and give a certified copy thereof, when requested,
book after the same shall have been entered in the primary entry
upon payment of the legal fees for such copy thereof, when
book
requested, upon payment of the legal fees for such copy and
After recording, the RD shall endorse on the original of the
certify upon each mortgage officer's return of sale or discharge of
instrument the file number and the date as well as the hour and
mortgage, and upon any other instrument relating to such a
minute when the instrument is received, returning to the
recorded mortgage, both on the original and in the duplicate, the
registrant the duplicate of the instrument with a certification that
date, hour, and minute when the same is received for record and
he has recorded the same
(e) More than five hundred thousand pesos. When the amount of the mortgage is more than five hundred thousan
Duly certified copies of such records and of filed instruments shall Conveyance of mortgaged property, etc. For recording each instrument of sale, conveyance, or transfer of the prop
be receivable as evidence in any court.
Notice of attachment. For recording each notice of attachment, including the necessary index and annotations, eig
Section 116. Fees for chattel mortgages, etc. The register of Deeds
shall collect the following fees for services rendered by him under
Release of mortgage. For recording such release of mortgage, including the necessary index and references, the fee
this section:
1. Entry fee. For entry or presentation of any document in the Release of attachment. For recording each release of attachment, including the proper annotations, five pesos.
Primary Entry Book, five pesos. Supporting papers presented
together with the principal document need not be charged any Sheriff's return of sale. For recording each sheriff's return of sale, including the index and references, seven pesos.
entry or presentation fee unless the party in interest desires that
they be likewise entered.
Power of attorney, appointment of guardian, administrator or trustee. For recording a power of attorney, appointm
2. Chattel Mortgage. For filing and recording each chattel
mortgage, including the necessary certificates and affidavits, the
fees established in the following schedule shall be collected:
No specific fee. For recording each instrument or order relating to a recorded mortgage, including the necessary index and references, for which no
The Commissioner specific
of Land fee is provided
Registration, above, the
considering five consulta
pesos. and the records certified to him after notice to th
Certified copy. For certified copies of records, such fees as are allowed by law for copies kept by the Register of Deeds.
Certification. For issuing a certificate relative to, or showing the existence or non-existence of an entry in the registration book, or a document on file, for each such certificate containing not more than two hundred words, five pesos; if it exc
Research Fee. For services rendered in attending to requests for references to, or researches on any document on file in the Registry, there shall be collected a fee of two pesos per document.
FINAL PROVISIONS
1. There are 4 petitions—petition for surrender of title, petition for
Section 118. Appropriation. There is hereby appropriated initially
correction, amendments, or alterations in the certificate of title,
the sum of TWELVE MILLION THREE HUNDRED FORTY THOUSAND
petition for the issuance of new owner’s duplicate of title, petition
PESOS (P12,340,000.00) from the National Treasury not otherwise
for reconstitution
appropriated for the implementation of this decree; thereafter,
2. Petition for the surrender of the owner’s duplicate of title—the law
said sum shall be added to the regular appropriation act of every
speaks of two instances. The first one involves involuntary
year.
transactions and the other one, voluntary transactions. In both
instances the procedure is to file a petition in the RTC for the
Section 119. Postage exemption. No postage stamps or mailing
owner to surrender the owner’s duplicate of title.
charges shall be required in all matters transmitted by the Land
3. If the owner’s duplicate of title is lost, the law requires that notice
Registration Commission or any of its Registry of Deeds in the
under oath be given to the RD. There should be a verified
implementation of Sections 21, 40, 106, 118 and 117 of this
affidavit that will serve as notice to the RD that the particular
Decree.
owner’s duplicate is lost. This will prevent any transaction that
may arise from the loss of the owner’s duplicate. This particular
Section 120. Repealing clause. All laws, decrees, orders, rules and
petition would prosper and the corresponding duplicate issued will
regulations, or parts thereof, in conflict or inconsistent with any of
be valid if the owner’s duplicate is really lost. When the owner’s
the provisions of this Decree are hereby repealed or modified
duplicate is still existing upon filing of petition, the court doesn’t
accordingly.
acquire jurisdiction and the proceedings are null and void. The
title is null and void and thus, can be attacked collaterally.
Section 121. Separability clause. In the event that any provision of
4. Petition for reconstitution is filed when the certificate of title has
this Decree is declared unconstitutional, the validity of the
been lost or destroyed. This pertains to original and transfer
remainder shall not be affected thereby.
certificates of title as well as encumbrances and liens. Purpose is
to bring back to its original form and state. No addition nor
Section 122. Effectivity. This Decree shall take effect upon its
reductions. If it is found out that the certificate is not lost or
approval.
destroyed, court doesn’t attack jurisdiction and proceedings are
null and void.
Done in the City of Manila, this 11th day of June, in the year of Our
5. There are two kinds of restitution—judicial and administrative.
Judicial is when you file a petition in court. Administrative is when
CASES: PETITIONS, RECONSTITUTIONS, ETC.
you file the petition with the RD. It is easier with the RD as you
1. Office of Court Administrator vs. Matas 247 SCRA 9
have to file it with the reconstituting officer of the RD only.
2. PNB vs. International Corporate Bank 199 SCRA 508
6. The court in entertaining petitions for reconstitution should be
3. New Durawood vs. CA 253 SCRA 740
careful and cautious. Section 12 and 13 are mandatory
4. Bunagan vs. CFI 97 SCRA 72
requirements. Section 12 refers to the contents requirement as
5. Dizon vs. Discaya 303 SCRA 197
13 refers to the publication requirements.
6. Republic vs. IAC 157 SCRA 62 7. The reconstitution proceedings are proceedings in rem.
7. Republic vs. CA 247 SCRA 551
8. Section 2 and 3 of RA 26 will tell the different documents or
8. Serra vs, CA 195 SCRA 482
evidence that you can submit for a petition for reconstitution can
9. Alabang Dev. vs. Valenzuela 116 SCRA 261
prosper. Sources found in the law are in a hierarchy of
10. Manotoc vs. Barque Dec. 12, 2005
preference. First and foremost in this list, may it be for the
11. Radiowealth vs. Palileo 197 SCRA 245
original or transfer certificates of title is the owner’s duplicate of
12. Baranda vs. Gustilo 165 SCRA 757
title.
9. The phrase “Any other document” will pertain to documents
CADIZ NOTES:
similar to those previously enumerated. An example is a case
pertaining to an action for the recovery of possession. The court
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 110 of 128
decision contained the technical description of the land and a) "Condominium" means a condominium as defined in the next
whatnot as would pertain to any other document that warrants preceding section.
reconstitution.
10. Administrative reconstitution is warranted in cases where the b) "Unit" means a part of the condominium project intended for
number of certificates lost is not less than 500 and the cause of any type of independent use or ownership, including one or more
the loss or destruction is by fire, flood or any other force majeure. rooms or spaces located in one or more floors (or parts of floors) in
If you pass these requirements, then administrative reconstitution a building or buildings and such accessories as may be appended
is allowed. If you are not satisfied, you can go to the LRA within thereto; provided, that in the case of an industrial estate wherein
15 days from the receipt of the decision. If not the LRA, file a the condominium project consists of several buildings, plants and
petition for review with the proper court or specifically, the RTC. factories may, by themselves, be considered separately as
This can be done within 60 days from knowledge of decision but individual units as herein defined."
not later than 6 months from promulgation of decision.
11. The reconstituted title should be in the form and condition as the c) "Project" means the entire parcel of real property divided or to
original lost title. be divided in condominiums, including all structures thereon.
12. All these petitions and motions should be filed with the same
registration case. This is specifically provided for in Section 108. d) "Industrial Estate or Estate" means a certain tract of land which
You will use the same case number wherein the title was issued. is subdivided and developed primarily for industrial purposes and
which usually includes provisions for basic infrastructure facilities
CONDOMINIUM ACT and common services such as roads, water, electricity, drainage
and waste disposal system.
SECTION 1. The short title of this Act shall be "The Condominium
e) "Common areas" means the entire project except all units
Act".
separately granted or held or reserved.
SECTION 2. A Condominium is an interest in real property
f) "To divide" real property means to divide the ownership thereof
consisting of a separate interests in a unit in a residential,
or other interests therein by conveying one or more condominium
industrial or commercial building or in an industrial estate and an
therein but less than the whole thereof.
undivided interests in common, directly and indirectly, in the land,
or the appurtenant interest of their respective units in the common
SECTION 4. The provisions of this Act shall apply to property
areas.
divided or to be divided into condominium only if there shall be
recorded in the Register of Deeds of the province or city in which
The real right in condominium may be ownership or any interest in
the property lies, and duly annotated in the corresponding
real property recognized by law, on property in the Civil Code and
certificate of title of the land, if the latter had been patented or
other pertinent laws."
registered under either the Land Registration or Cadastral Acts, an
enabling or master deed which shall contain, among others, the
INCORPORATORS OF A CONDOMINIUM CORPORATION MUST BE
following:
SHAREHOLDERS
It is an indispensable requirement that all incorporators of a
a) Description of the land on which the building or buildings and
condominium corporation must be shareholders thereof
improvements are to be located;
To be a shareholder, one must necessarily be an owner of a
condominium unit
b) Description of the building or buildings, stating the number of
storeys and basement, the number of units and their accessories, if
SECTION 3. As used in this Act, unless the context otherwise
any;
requires:
corporation: provided, however. That where the common areas in
c) Description of the common areas and facilities; the condominium project are held by the owners of separate units
as co-owners hereof, no condominium unit therein shall be
d) A statement of the exact nature of the interest acquired or to be conveyed or transferred to persons other than Filipino citizens or
acquired by the purchased in the separate units and the common corporation at least 60% of the capital stock of which belong to
areas of the condominium projects. Where title to or to Filipino citizens, except in cases of hereditary succession. Where
appurtenant interests in the common areas is to be held by a the common areas in a condominium project are held by a
condominium corporation, a statement to this effect shall be corporation, no transfer or conveyance of a unit shall be valid if the
included; concomitant transfer of the appurtenant membership or
stockholding in the corporation will cause the alien interest in such
e) A certificate of the registered owner of the property, if he is corporation to exceed the limits imposed by existing laws.
other than those executing the master deed, as well as of all
registered holders of any lien or encumbrances on the property, THE OWNER OF A UNIT IS CONSIDERED A SHAREHOLDER IN THE
that they consent to the registration of the deed; CONDOMINIUM CORPORATION
Any transfer or conveyance of a unit or an apartment, office or
f) The following plans shall be appended to the deed as integral store or other space therein, shall include the transfer or
parts thereof: conveyance of the undivided interest in the common areas or in a
1. A survey plan of the land included in the project, unless a survey proper case, the membership or share holdings in the
plan of the same property had previously been filed in said office; condominium corporation
Not every purchaser of a condominium unit is a shareholder of the
2. A diagrammatic floor plan of the building or buildings each unit, condominium corporation. The Condominium Act leaves it to the
its relative location and approximate dimensions. master deed the determination of when the shareholding will be
transferred to the purchaser of a unit
g) Any reasonable restriction not contrary to law, morals, or public The provisions of this Act shall apply to property divided or to be
policy regarding the right of any condominium owner to alienate or divided into condominium only if there shall be recorded in the
dispose off his condominium. Register of Deeds of the province or city in which the property
lies, and duly annotated in the corresponding certificate of title of
h) The enabling or master deed may be amended or revoked upon the land, xxx an enabling or master deed which shall contain,
registration of an instrument executed by a simple majority of the among others, the following: xxx A statement of the exact nature
registered owners of the property: Provided. That in a of the interest acquired or to be acquired by the purchased in the
condominium project exclusively for either residential or separate units and the common areas of the condominium
commercial use, simple majority shall be on a per unit of ownership projects. Where title to or to appurtenant interests in the common
basis and that in the case of mixed use, simple majority shall be on areas is to be held by a condominium corporation, a statement to
a floor area of ownership basis: Provided, further, That prior this effect shall be included
notifications to all registered owners shall be submitted to the Inasmuch as ownership is conveyed only upon full payment of the
Housing and Land Use Regulatory Board and the city/municipal purchase price, it necessarily follows that a purchaser of a unit
engineer for approval before it can be registered. Until registration who hasn’t paid the full purchase price is not the owner of the unit
of a revocation, the provisions of this Act shall continue to apply to and consequently is not a shareholder of the Condominium
such property. Corporation
SECTION 5. Any transfer or conveyance of a unit or an apartment, WHEN A PERSON AUTOMATICALLY CEASES AS A STOCKHOLDER
office or store or other space therein, shall include the transfer or Section 10—membership in a condominium corporation regardless of
conveyance of the undivided interest in the common areas or in a whether it is stock or non-stock corporation, shall not be
proper case, the membership or share holdings in the condominium transferable separately from the condominium unit of which it is
an appurtenance. When a member or a stockholder ceases to own
estate condominium unit, such right may be exercised over the
a unit in the project in which the condominium corporation owns
external surfaces of the said unit.
or holds the common area, he shall automatically cease to be a
member or stockholder of the condominium corporation.
f) Each condominium owner shall have the exclusive right to
mortgage, pledge or encumber his condominium and to have the
SECTION 6. Unless otherwise expressly provided in the enabling or
same appraised independently of the other condominium owner.
master deed or the declaration of restrictions, the incidents of a
condominium grant are as follows:
g) Each condominium owner has also the absolute right to sell or
dispose of his condominium unless the master deed contains a
a) the boundary of the unit granted are the interior surfaces of the
requirements that the property be first offered to the condominium
perimeter walls, floors, ceiling, windows and doors thereof:
owners within a reasonable period of time before the same is
provided, that in the case of an industrial estate condominium
offered to outside parties;
projects, wherein whole buildings, plants or factories may be
considered as unit defined under section 3 (b) hereof, the boundary
SECTION 7. Except as provided in the following section, the
of a unit shall include the outer surfaces of the perimeter walls of
common areas shall remain undivided, and there shall be no
said buildings, plants or factories. The following are not part of the
judicial partition thereof.
unit: bearing walls, columns, floors, roofs, foundations, and other
common structural elements of the buildings; lobbies, stairways,
SECTION 8. Where several persons own condominium in a
hall ways and other areas of common use, elevator equipment and
condominium project, an action may be brought by one or more
shafts, central heating, central refrigeration and central air
such person for partition thereof, by sale of the entire project, as if
conditioning equipment, reservoir, tanks, pumps and other central
the owners of all the condominium in such project were co-owners
services and facilities, pipes, ducts, flues, chutes, conduits wires
of the entire project in the same proportion as their interests in the
and other utility installations, wherever located, except the outlets
common areas; Provided, however, that a partition shall be made
thereof when located within the unit."
only upon a showing:
b) There shall pass with the unit, as an appurtenant thereof, an
a) That three years after damage or destruction to the project
exclusive casement for the use of the air space encompasses by the
which renders a material part thereof unfit for its use prior thereto,
boundaries of the unit as it exists at any particular time and as the
the project had not been rebuilt or repaired substantially to its
unit may lawfully be altered or reconstructed from time to time.
state prior to its damage or destruction; or
Such easement shall be automatically terminated in any air space
upon destruction of the units as to render it untenantable.
b) That damage or destruction to the project has rendered one half
or more of the units therein untenantable and that condominium
c) Unless otherwise provided, the common areas are held in
owners holding in aggregate more than 30 percent interest in the
common by the holders of units, in equal share one for each unit.
common areas are opposed to the repair or restoration of the
projects; or
d) A non-exclusive easement for ingress, egress and support
through the common areas in appurtenant to each unit and the
c) That project has been in existence in excess of 50 years, that it
common areas are subject to such easement.
is obsolete and uneconomical, and that condominium owners
holding in aggregate more than 50 percent interest in the common
e) Each condominium owner shall have the exclusive right to paint,
areas are opposed to repair or restoration or remodeling or
repaint, tile, wax, paper or otherwise refinish and decorate the
modernizing of the project; or
inner surfaces of the walls, ceilings, floors, windows and doors
hounding his own unit: provided, that in the case of an industrial
d) That the project or a material part thereof has been condemned
or expropriated and that the project is no longer viable, or that the
condominium owners holding in aggregate more than 70 percent
9. For a power of attorney to the management body to sell the
interest in the common areas are opposed to the continuation of
entire project for the benefit of all of the owners thereof
the condominium regime after expropriation or condemnation of a
when partition of the project may be authorized under
material proportion thereof; or
Section 8 of this Act, which said power shall be binding
upon all of the condominium owners regardless or whether
e) That the condition for such partition by sale set forth in the
they assume the obligations of the restrictions or not
declaration of restrictions duly registered in accordance with the
terms of this Act, have been met.
b) The manner and procedure for amending such restrictions,
provided, that the vote of not less than a majority in interest of the
SECTION 9. The owner of a project shall, prior to the conveyance of
owners is obtained;
any condominium therein, register a declaration or restrictions,
relating to such project, which restrictions shall ensure to a bind all
c) For independent audit of the accounts of the management body;
condominium owners in the project , such liens, unless otherwise,
provided, may be enforced by any condominium owner in the
d) For reasonable assessments to meet authorized expenditures,
project or by the management body of such project. The Register of
each condominium unit to be assessed separately for its share of
Deeds shall enter and annotate the declaration of restrictions, upon
such expenses in proportion (unless otherwise provided) to its
the Certificate of Title covering the land included within the proper,
owner's fractional interest in any common areas;
if the land is patented or registered under the Land Registration or
Cadastral Acts.
e) For the subordination of the liens securing such assessments to
Such declaration of restrictions, among the other things, may also
other lien either generally or specifically described;
provide:
a) As to management body
f) For conditions, other than those provided for in Section 8 and 13
1. For the power thereof, including power to enforce the
of this Act, upon which partition of the project and dissolution of
provisions of the declarations of restrictions;
the condominium corporation may be made. Such right to partition
2. For the maintenance of insurance policies insuring
or dissolution may be conditioned upon failure of the condominium
condominium owners against loss by the, casualty, liability,
owners to rebuild within a certain period or upon specified
workmen's compensation and other insurable risks and for
percentage of damage to the building, or upon a decision of an
bonding of the members of any management body;
arbitration, or upon any other reasonable condition.
3. Provisions for maintenance, utility, gardening and other
services benefiting the common areas for the operations of
SECTION 10. Whenever the common areas in a condominium
the building, and legal, accounting and other professional
project are held by a condominium corporation, such corporation
and technical services;
shall constitute the management body of the project. The corporate
4. For purchase of materials, supplies and the like needed by
purposes of such a corporation shall be limited to the holding of the
the common areas;
common areas; either the ownership of any other interest in real
5. For payment of taxes and special assessment which would
property recognized by the law, to the management of the project,
be a lien upon the entire project or common areas, for
and to such other purposes as maybe necessary, incidental or
discharge of my encumbrance levied against the entire
convenient to the accomplishment of said purposes. The articles of
project of the common areas;
incorporation or by laws of the corporation shall not contain any
6. The manner for delegation of its powers;
provision contrary to or inconsistent with the provision of this Act,
7. For reconstruction of any portion or portions of any
the enabling or master deed, or the declaration of restrictions of
damage to or destruction of the project;
the project, membership in a condominium corporation regardless
8. For entry by its officers and agents into any unit when
of whether it is stock or non-stock corporation, shall not be
necessary in connection with the maintenance or
transferable separately from the condominium unit of which it is an
construction for which such body is responsible;
appurtenance. When a member or a stockholder ceases to own a
unit in the project in which the condominium corporation owns or
regime after expropriation or condemnation of a material portion
holds the common area, he shall automatically cease to be a
thereof; or
member or stockholder of the condominium corporation.
e) That the conditions for such a dissolution set forth in the
SECTION 11. The registration and regulation of a condominium
declaration of restrictions of the project in which the corporation,
corporation shall be vested with the Housing And Land Use
are opposed to the continuation of the condominium regime after
Regulatory Board (HLURB) and the term of the said corporation
expropriation or condemnation of a material portion thereof; or
shall be coterminous with the duration of the subdivision projects,
the provision of the corporation law to the contrary
SECTION 14. The condominium corporation may also be dissolved
notwithstanding.
by the affirmative vote of all the stockholders or members thereof
at a general or special meeting duly called for such purpose:
SECTION 12. The dissolution of the condominium corporation in
Provided, that all the requirements of Section 62 of the Corporation
any manner and any of the causes provided by law shall be
Law are complied with.
governed by the provisions of the Title XIV of the Corporation Code.
SECTION 13. Until the enabling or the master deed of the project in
SECTION 15. Unless otherwise provided for in the declaration of
which the condominium corporation owns or holds the common
restrictions, upon voluntary dissolution of a condominium
areas is revoked the corporation shall not be voluntarily dissolved
corporation in accordance with the provisions of Section 13 and 14
through an action for dissolution under Rule 104 of the Rules of
of this Act, the corporation shall be deemed to hold a power of
Court except upon a showing:
attorney from all the members or stockholders to sell and dispose
a) The three years after damage or destruction to the project in
of their separate interests in the project and liquidation of the
which damage or destruction renders a materials part thereof unfit
corporations shall be affected by a sale of the entire project as if
for its use prior thereto, the project has not been rebuilt or
the corporation owned the whole thereof, subject to the rights of
repaired substantially to its state prior to its damage or
the corporation and of individual condominium creditors.
destruction; or
SECTION 16. A condominium corporation shall not, during its
b) The damage or destruction to the project has rendered one half
existence, sell, exchange, lease or otherwise dispose of the
or more of the units therein untenantable and that more than 30
common areas owned or held by it in the condominium project
percent of the member of the corporation entitled to vote, if a stock
unless authorized by the affirmative vote of a simple majority of
corporation, are opposed to the repair or reconstruction of the
the registered owners: provided, that prior notification to all
project; or
registered owners are done and provided further, that the
condominium corporation may expand or integrate the project with
c) That the project has been in existence excess of 50 years, that it
another upon the affirmative vote of a simple majority of the
is obsolete and uneconomical and that more than 50 percent of the
registered owners, subject only to the final approval of the HLURB.
members of the corporation if non-stock or stockholders
representing more than 50 percent of the capital stock entitled to
SECTION 17. Any provisions of the Corporations Law to the
vote, if a stock corporation, are opposed to the repair or restoration
contrary not withstanding, the by-laws of a condominium
or remodeling or modernizing of the project; or
corporation shall provide. That a stockholder or member shall not
be entitled to demand payment of his shares or interest in those
d) That project or material part thereof has been condemned or
cases where such right is granted under the Corporation Law
expropriated and that the project is no longer viable or that the
unless the consents to sell his separate interest in the project to
members holding in aggregate more than 70 percent interest in the
the corporation or to any purchaser of the corporation's choice who
corporation if non-stock, or the stockholders representing more
shall also buy from the corporation the dissenting member or
than 70 percent of the capital stock entitled to vote, if a stock
stockholder's interest. In case of disagreement as to price, the
corporation, are opposed to the continuation of the condominium
procedure set forth in the appropriate provisions of the Corporation
Law for valuation of shares shall be allowed. The corporation shall
be an obligation of the owner thereof at the time the assessment is
have two years within which to pay for the shares or furnish a
made. The amount of any such assessment plus any other charges
purchaser of its choice from the time of award. All expenses
thereon, such as interest, costs (including attorney's fee) and
incurred in the liquidation of interest of the dissenting member or
penalties, as such may be provided for in the declaration of
stockholder shall be borne by him.
restrictions, shall be and become a lien upon the condominium to
be registered with the Register of Deed of the City or province
SECTION 18. Upon registration of an instrument conveying a
where such condominium project is located. The notice shall state
condominium, the Register of Deed shall, upon payment of the
the amount of such assessment and such other charges thereon as
proper fees, enter and annotate the conveyance on the certificate
may be authorized by the declaration of restrictions, a description
of title covering the land included within the project and the
of condominium unit against which same has been assessed, and
transferee shall be entitled to the issuance of a "condominium
the name of the registered owner thereof. Such notice shall be
owners" copy of the pertinent portion of such certificate of title.
signed by an authorized representative of the management body or
Said "Condominium Owner's" copy need not reproduce the
as otherwise provided in the declaration of restrictions. Upon
ownership status of other condominium in the project. A copy of
payment of said assessment and charges of other satisfaction
the description of land, a brief description of condominium
thereof, the management body shall cause to be registered a
conveyed, name and personal circumstances of the condominium
released of the lien.
owner would be sufficient for purposes of the "condominium
Such lien shall be superior to all other liens registered subsequent
owners" copy of the certificate of title. No conveyance of
to the registration of said notice of assessment except real
condominium or part thereof, subsequent to the original
property tax liens and except that the declaration of restrictions
conveyance thereof from the owner of the project, shall be
may provide for the subordination thereof to any other liens and
registered unless accompanied by a certificate of the management
encumbrances, such liens may be enforced in the same manner
body of the project that such conveyance is in accordance with the
provided for by law for the judicial or extra-judicial foreclosure of
provisions of the declaration of restrictions of such project.
mortgage or real property. Unless otherwise provided for in the
In case of condominium project registered under the provisions of
declaration of the restrictions, the management body shall have
the Spanish Mortgage Law or Act 3344 as amended, the
power to bid at foreclosure sale. The condominium owner shall
registration of the deed of conveyance of a condominium shall be
have the right of redemption as in cases of judicial or extra-judicial
sufficient if the Register of Deed shall keep the original or signed
foreclosure of mortgages.
copy thereof, together with the certificate of the management body
of the project, and return a copy of the deed of conveyance to the
SECTION 21. No labor performed or services or materials furnished
condominium owner duly acknowledged and stamped by the
without the consent of or at the required of a condominium owner
Register of Deeds in the same manner as in the case of registration
or his agent or his contractor or sub-contractor, shall be the basis
of conveyance is in accordance with the provisions of the
of a lien against the condominium of any other condominium
declaration of restrictions of such project.
owner, unless such other owner have expressly consented to or
requested the performance of such labor or furnishing of such
SECTION 19. Where the enabling or master deed provides that the
materials or services. Such express consent shall be deemed to
land included within a condominium project are to be owned in
have given by the owner of any condominium in the case of
common by the condominium owners therein the Register of Deeds
emergency repairs of his condominium unit. Labor performed or
may at the request of all the condominium owner and upon
services or materials furnished for the common areas, if duly
surrender of all their condominium owner's copies, cancel the
authorized by the management body provided for in a declaration
certificate of title of the property and issue a new one in the name
of restriction governing the property, shall be deemed to be
of said condominium owners as pro-indiviso co-owners thereof.
approved by the condominium owner. The owner of any
condominium may remove his condominium from a lien against two
SECTION 20. The assessment upon any condominium made in
of the lien of the fraction of the total sum secured by such lien
accordance with a duly registered declaration of restrictions shall
which is attributable to his condominium unit.
SECTION 28. This act shall take effect upon its approval.
SECTION 22. Unless otherwise provided for by the declaration of Approved, June 18, 1966.
restrictions, the management body, provided for herein, may
acquire and hold, for the benefit of the condominium owners, PRESIDENTIAL DECREE No. 957
tangible personal property and may dispose of the same by sale or REGULATING THE SALE OF SUBDIVISION LOTS AND
otherwise, and the beneficial interest in such personal property
shall be owned by the condominium owners in the same proportion CONDOMINIUMS, PROVIDING PENALTIES FOR
as their respective interests in the common areas. A transfer of a VIOLATIONS THEREOF
condominium shall transfer to the transferee ownership of the
transferor's beneficial interest in such personal property. WHEREAS, it is the policy of the State to afford its inhabitants the
requirements of decent human settlement and to provide them
SECTION 23. Where, in an action for partition of a condominium with ample opportunities for improving their quality of life;
corporation on the ground that the project or a material part
thereof has been condemned or expropriated, the court finds that WHEREAS, numerous reports reveal that many real estate
the condition provided in this Act or in the declaration have not subdivision owners, developers, operators, and/or sellers have
been met, the court may decree a reorganization of the project reneged on their representations and obligations to provide and
declaring which portion or portions of the project shall continue as maintain properly subdivision roads, drainage, sewerage, water
a condominium project, the owners thereof, and the respective systems, lighting systems, and other similar basic requirements,
rights of the remaining owners and the just compensation, if any, thus endangering the health and safety of home and lot buyers;
that a condominium owner may be entitled to due to deprivation of
his property. Upon receipt of a copy of the decree, the Register of WHEREAS, reports of alarming magnitude also show cases of
Deeds shall enter and annotate the same on the pertinent swindling and fraudulent manipulations perpetrated by
certificate of title. unscrupulous subdivision and condominium sellers and operators,
such as failure to deliver titles to the buyers or titles free from liens
SECTION 24. Any deed declaration or plan for a condominium and encumbrances, and to pay real estate taxes, and fraudulent
project shall be liberally construed to facilitate the operation of the sales of the same subdivision lots to different innocent purchasers
project, and its provisions shall be presumed to be independent for value;
and several.
WHEREAS, these acts not only undermine the land and housing
SECTION 25. The building and design standards for condominium program of the government but also defeat the objectives of the
projects to be promulgated by HLURB shall provide for, among New Society, particularly the promotion of peace and order and the
others, accessibility features for disabled persons pursuant to enhancement of the economic, social and moral condition of the
Batas Pambansa Bilang 344 of 1994. Filipino people;
SECTION 26. Whenever real property has been divided into WHEREAS, this state of affairs has rendered it imperative that the
condominiums, each condominium separately owned shall be real estate subdivision and condominium businesses be closely
separately assessed, for purposes of real property taxation and supervised and regulated, and that penalties be imposed on
other tax purposes, to the owners thereof and tax on each such fraudulent practices and manipulations committed in connection
condominium shall constitute a lien solely thereon. therewith.
SECTION 27. All acts or parts of Acts in conflict on inconsistent with NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
this Act are hereby amended insofar as condominium and its Philippines, by virtue of the powers vested in me by the
incidents are concerned. Constitution, do hereby decree and order:
TITLE AND DEFINITIONS
(e) Subdivision lot. "Subdivision lot" shall mean any of the lots,
whether residential, commercial, industrial, or recreational, in a
Section 1. Title. This Decree shall be known as THE SUBDIVISION
subdivision project.
AND CONDOMINIUM BUYERS' PROTECTIVE DECREE.
(f) Complex subdivision plan. "Complex subdivision plan" shall
Section 2. Definition of Terms When used in this Decree, the
mean a subdivision plan of a registered land wherein a street,
following terms shall, unless the context otherwise indicates, have
passageway or open space is delineated on the plan.
the following respective meanings:
(a) Person. "Person" shall mean a natural or a juridical person. A
(g) Condominium project. "Condominium project" shall mean the
juridical person refers to a business firm whether a corporation,
entire parcel of real property divided or to be divided primarily for
partnership, cooperative or associations or a single proprietorship.
residential purposes into condominium units, including all
structures thereon.
(b) Sale or sell. "Sale" or "sell" shall include every disposition, or
attempt to dispose, for a valuable consideration, of a subdivision
(h) Condominium unit. "Condominium unit" shall mean a part of
lot, including the building and other improvements thereof, if any,
the condominium project intended for any type of independent use
in a subdivision project or a condominium unit in a condominium
or ownership, including one or more rooms or spaces located in one
project. "Sale" and "sell" shall also include a contract to sell, a
or more floors (or part of parts of floors) in a building or buildings
contract of purchase and sale, an exchange, an attempt to sell, an
and such accessories as may be appended thereto.
option of sale or purchase, a solicitation of a sale, or an offer to
sell, directly or by an agent, or by a circular, letter, advertisement
(i) Owner. "Owner" shall refer to the registered owner of the land
or otherwise.
subject of a subdivision or a condominium project.
A privilege given to a member of a cooperative, corporation,
(j) Developer. "Developer" shall mean the person who develops or
partnership, or any association and/or the issuance of a certificate
improves the subdivision project or condominium project for and in
or receipt evidencing or giving the right of participation in, or right
behalf of the owner thereof.
to, any land in consideration of payment of the membership fee or
dues, shall be deemed a sale within the meaning of this definition.
(k) Dealer. "Dealer" shall mean any person directly engaged as
principal in the business of buying, selling or exchanging real
(c) Buy and purchase. The "buy" and "purchase" shall include any
estate whether on a full-time or part-time basis.
contract to buy, purchase, or otherwise acquire for a valuable
consideration a subdivision lot, including the building and other
(l) Broker. "Broker" shall mean any person who, for commission or
improvements, if any, in a subdivision project or a condominium
other compensation, undertakes to sell or negotiate the sale of a
unit in a condominium project.
real estate belonging to another.
(d) Subdivision project. "Subdivision project" shall mean a tract or
(m) Salesman. "Salesman" shall refer to the person regularly
a parcel of land registered under Act No. 496 which is partitioned
employed by a broker to perform, for and in his behalf, any or all
primarily for residential purposes into individual lots with or
functions of a real estate broker.
without improvements thereon, and offered to the public for sale,
in cash or in installment terms. It shall include all residential,
(n) Authority. "Authority" shall mean the National Housing
commercial, industrial and recreational areas as well as open
Authority.
spaces and other community and public areas in the project.
REGISTRATION AND LICENSE TO SELL
Section 3. National Housing Authority The National Housing
On the issue of affirmance-by-inaction failure on the part of the
Authority shall have exclusive jurisdiction to regulate the real
President to act upon an appeal doesn’t necessarily mean that the
estate trade and business in accordance with the provisions of this
appealed decision automatically becomes final and executory.
Decree.
Access to the courts of law may still be made as mentioned above.
Therefore, such decision is far from being final and executory.
JURISDICTION OF THE NATIONAL HOUSING AUTHORITY
The scope of the regulatory authority of the NHA is indicated in the FUNCTIONS OF THE NHA NOW TRANSFERRED TO THE HLURB
second and third paragraph of the preamble The regulatory functions of the NHA are now transferred to the
o WHEREAS, subdivision owners, developers, operators, HLURB such as jurisdiction over unsound real estate businesses
and/or sellers have reneged on their representations and and claims involving refund and any other claims filed by
obligations to provide and maintain properly subdivision subdivision lot or condominium unit buyer against the project
roads, drainage, sewerage, water systems, lighting owner, developer, broker or salesman
systems, and other similar basic requirements, thus The functions of the Human Settlements Regulatory Commission—
endangering the health and safety of home and lot sole regulatory body for housing and land development—are
buyers; transferred also to the HLURB
o WHEREAS, reports of alarming magnitude also show
cases of swindling and fraudulent manipulations SPECIFIC FUNCTIONS OF THE HLURB
perpetrated by unscrupulous subdivision and 1. Unsound real estate businesses
condominium sellers and operators, such as failure to 2. Claims involving refund and any other claims filed by subdivision
deliver titles to the buyers or titles free from liens and lot or condominium unit buyer against the project owner,
encumbrances, and to pay real estate taxes, and developer, broker or salesman, and
fraudulent sales of the same subdivision lots to different 3. Cases involving specific performance of contractual and statutory
innocent purchasers for value;
obligations filed by buyers of subdivision lot or condominium unit
PD1344 was passed providing—
against the owner, developer, dealer, broker or salesman.
o The NHA shall have exclusive jurisdiction to hear and
decide cases of the following nature:
WRIT OF EXECUTION
Unsound real estate businesses
As soon as the decision of the HLURB becomes final, it shall, on
Claims involving refund and any other claims
motion of the interested party, issue a writ of execution
filed by subdivision lot or condominium unit
enforceable in accordance with the provisions of the Rules of
buyer against the project owner, developer,
Court
broker or salesman, and
Upon the failure of the HLURB to act on the motion, a petition for
Cases involving specific performance of
mandamus may be filed to compel it to perform its purely
contractual and statutory obligations filed by
ministerial duty by enforcing its final and executory decision
buyers of subdivision lot or condominium unit
against the owner, developer, dealer, broker or
COURT HAS JURISDICTION WHEN ISSUE INVOLVES OWNERSHIP
salesman.
OF PROPERTY
o The decision of the NHA shall become final and executory
15 days from the date of its receipt. It is appealable only ORDINARY COURTS DON’T HAVE JURISDICTION OVER COLLECTION
to the President of the Philippines and in the event the OF UNPAID INSTALLMENTS
appeal is filed and the decision isn’t reversed and/or
amended within 30 days, the decision is deemed SUMMARY OF CASES OR INCIDENTS WHERE HLURB HAS
affirmed. Proof of the appeal of the decision must be
JURISDICTION (FAJARDO V. BAUTISTA)
furnished the NHA.
1. For a determination of the rights of the parties under a contract to
sell a subdivision lot
2. For the delivery of title against the subdivision owner
3. For the refund of reservation fees for the purchase of subdivision
(b) The location of the owner's principal business office, and if the
lot
owner is a non-resident Filipino, the name and address of his agent
4. For specific performance filed by the lot buyer against the seller of
or representative in the Philippines is authorized to receive notice;
a subdivision lot
5. For the annulment of the mortgage constituted by the project
(c) The names and addresses of all the directors and officers of the
owner without the buyer’s consent, the mortgage foreclosure sale,
business firm, if the owner be a corporation, association, trust, or
and the condominium certificate of title issued to the highest
other entity, and of all the partners, if it be a partnership;
bidder at the said foreclosure sale
6. For the collection of the balance of the unpaid purchase price of a
(d) The general character of the business actually transacted or to
subdivision lot filed by the developer of a subdivision against the
be transacted by the owner; and
lot buyer
7. For incidental claims for damages
(e) A statement of the capitalization of the owner, including the
authorized and outstanding amounts of its capital stock and the
Section 4. Registration of Projects The registered owner of a parcel
proportion thereof which is paid-up.
of land who wishes to convert the same into a subdivision project
The following documents shall be attached to the registration
shall submit his subdivision plan to the Authority which shall act
statement:
upon and approve the same, upon a finding that the plan complies
(a) A copy of the subdivision plan or condominium plan as
with the Subdivision Standards' and Regulations enforceable at the
approved in accordance with the first and second paragraphs of
time the plan is submitted. The same procedure shall be followed in
this section.
the case of a plan for a condominium project except that, in
(b) A copy of any circular, prospectus, brochure, advertisement,
addition, said Authority shall act upon and approve the plan with
letter, or communication to be used for the public offering of the
respect to the building or buildings included in the condominium
subdivision lots or condominium units;
project in accordance with the National Building Code (R.A. No.
6541).
(c) In case of a business firm, a balance sheet showing the amount
and general character of its assets and liabilities and a copy of its
The subdivision plan, as so approved, shall then be submitted to
articles of incorporation or articles of partnership or association, as
the Director of Lands for approval in accordance with the procedure
the case may be, with all the amendments thereof and existing by-
prescribed in Section 44 of the Land Registration Act (Act No. 496,
laws or instruments corresponding thereto.
as amended by R.A. No. 440): Provided, that it case of complex
subdivision plans, court approval shall no longer be required. The
(d) A title to the property which is free from all liens and
condominium plan as likewise so approved, shall be submitted to
encumbrances: Provided, however, that in case any subdivision lot
the Register of Deeds of the province or city in which the property
or condominium unit is mortgaged, it is sufficient if the instrument
lies and the same shall be acted upon subject to the conditions and
of mortgage contains a stipulation that the mortgagee shall release
in accordance with the procedure prescribed in Section 4 of the
the mortgage on any subdivision lot or condominium unit as soon
Condominium Act (R.A. No. 4726).
as the full purchase price for the same is paid by the buyer.
The owner or the real estate dealer interested in the sale of lots or
The person filing the registration statement shall pay the
units, respectively, in such subdivision project or condominium
registration fees prescribed therefor by the Authority.
project shall register the project with the Authority by filing
therewith a sworn registration statement containing the following
Thereupon, the Authority shall immediately cause to be published a
information:
notice of the filing of the registration statement at the expense of
(a) Name of the owner;
the applicant-owner or dealer, in two newspapers general
circulation, one published in English and another in Pilipino, once a
week for two consecutive weeks, reciting that a registration
LAND TITLES REVIEWER/NOTES
BASED ON AGCAOILI BOOK AND ATTY. CADIZ’S LECTURE
Page 120 of 128
1. Has violated any provision of this Decree or any rule or (d) Power incidental to the hearing. For the purpose of the hearing
regulation made hereunder; or or other proceeding under this Decree, the officer or officers
designated to hear the complaint shall have the power to
2. Has made a material false statement in his application for administer oaths, subpoena witnesses, conduct ocular inspections,
registration; or take depositions, and require the production of any book, paper,
correspondence, memorandum, or other record which are deemed
3. Has been guilty of a fraudulent act in connection with any sale of relevant or material to the inquiry.
a subdivision lot or condominium unit; or
Section 14. Contempt.
4. Has demonstrated his unworthiness to transact the business of (a) Direct contempt. The officer or officers designated by the
dealer, broker, or salesman, as the case may be. Authority to hear the complaint may summarily adjudge in direct
contempt any person guilty of misbehavior in the presence of or so
In case of charges against a salesman, notice thereof shall also be near the said hearing officials as to obstruct or interrupt the
given the broker or dealer employing such salesman. proceedings before the same or of refusal to be sworn or to answer
as a witness or to subscribe an affidavit or deposition when
Pending hearing of the case, the Authority shall have the power to lawfully required to do so. The person found guilty of direct
order the suspension of the dealer's, broker's, of salesman's contempt under this section shall be punished by a fine not
registration; provided, that such order shall state the cause for the exceeding Fifty (P50.00) Pesos or imprisonment not exceeding five
suspension. (5) days, or both.
The suspension or revocation of the registration of a dealer or (b) Indirect contempt. The officer or officers designated to hear the
broker shall carry with it all the suspension or revocation of the complaint may also adjudge any person in indirect contempt on
registrations of all his salesmen. grounds and in the manner prescribed in Rule 71 of the Revised
Rules of Court.
PROCEDURE FOR REVOCATION OF REGISTRATION CERTIFICATE
Section 15. Decision. The case shall be decided within thirty (30)
Section 13. Hearing. In the hearing for determining the existence days from the time the same is submitted for decision. The Decision
of any ground or grounds for the suspension and/or revocation of may order the revocation of the registration of the subdivision or
registration certificate and license to sell as provided in Section 8 condominium project, the suspension, cancellation, or revocation of
and 9 hereof, the following shall be complied with: the license to sell and/or forfeiture, in whole or in part, of the
performance bond mentioned in Section 6 hereof. In case forfeiture
(a) Notice. No such hearing shall proceed unless the respondent is of the bond is ordered, the Decision may direct the provincial or
furnished with a copy of the complaint against him or is notified in city engineer to undertake or cause the construction of roads and
writing of the purpose of such hearing. of other requirements for the subdivision or condominium as
stipulated in the bond, chargeable to the amount forfeited. Such
(b) Venue. The hearing may be held before the officer or officers decision shall be immediately executory and shall become final
designated by the Authority on the date and place specified in the after the lapse of 15 days from the date of receipt of the Decision.
notice.
Sales or conveyances of subdivision lots and condominium units
Section 16. Cease and Desist Order. Whenever it shall appear to the shall be registered from the execution thereof by the seller with
Authority that any person is engaged or about to engage in any act the RD of the province or city where the property is situated
or practice which constitutes or will constitute a violation of the Except as otherwise provided for by law, the HLURB may in
provisions of this Decree, or of any rule or regulation thereunder, it appropriate cases cause the RD to cancel the registration, entries
may, upon due notice and hearing as provided in Section 13 hereof, or annotations on titles made in this regard
issue a cease and desist order to enjoin such act or practices.
Section 18. Mortgages. No mortgage on any unit or lot shall be
PERIOD TO APPEAL IS 15 DAYS made by the owner or developer without prior written approval of
The period within which to appeal the decision of the Board of the Authority. Such approval shall not be granted unless it is shown
Commissioners of the HLURB to the Office of the President is 15 that the proceeds of the mortgage loan shall be used for the
days from the receipt of the assailed decision, pursuant to Section development of the condominium or subdivision project and
15 of PD957 effective measures have been provided to ensure such utilization.
The 30-day period mentioned in the Rules of Procedure of the The loan value of each lot or unit covered by the mortgage shall be
HLURB is not applicable because special laws providing for a determined and the buyer thereof, if any, shall be notified before
remedy of appeal to the Office of the President must prevail over the release of the loan. The buyer may, at his option, pay his
the HLURB Rules of Procedure installment for the lot or unit directly to the mortgagee who shall
apply the payments to the corresponding mortgage indebtedness
Section 17. Registration. All contracts to sell, deeds of sale and secured by the particular lot or unit being paid for, with a view to
other similar instruments relative to the sale or conveyance of the enabling said buyer to obtain title over the lot or unit promptly
subdivision lots and condominium units, whether or not the after full payment thereto;
purchase price is paid in full, shall be registered by the seller in the
Office of the Register of Deeds of the province or city where the MORTGAGE WITHOUT KNOWLEDGE OF BUYER IS AN UNSOUND
property is situated. BUSINESS PRACTICE
The buyer has a cause of action for annulment of the mortgage,
Whenever a subdivision plan duly approved in accordance with the mortgage foreclosure sale, and the condominium certificate of
Section 4 hereof, together with the corresponding owner's title that was issued to highest bidder
duplicate certificate of title, is presented to the Register of Deeds
for registration, the Register of Deeds shall register the same in Section 19. Advertisements. Advertisements that may be made by
accordance with the provisions of the Land Registration Act, as the owner or developer through newspaper, radio, television,
amended: Provided, however, that it there is a street, passageway leaflets, circulars or any other form about the subdivision or the
or required open space delineated on a complex subdivision plan condominium or its operations or activities must reflect the real
hereafter approved and as defined in this Decree, the Register of facts and must be presented in such manner that will not tend to
Deeds shall annotate on the new certificate of title covering the mislead or deceive the public.
street, passageway or open space, a memorandum to the effect
that except by way of donation in favor of a city or municipality, no The owner or developer shall answerable and liable for the
portion of any street, passageway, or open space so delineated on facilities, improvements, infrastructures or other forms of
the plan shall be closed or otherwise disposed of by the registered development represented or promised in brochures,
owner without the requisite approval as provided under Section 22 advertisements and other sales propaganda disseminated by the
of this Decree. owner or developer or his agents and the same shall form part of
the sales warranties enforceable against said owner or developer,
REGISTRATION OF SALE jointly and severally. Failure to comply with these warranties shall
also be punishable in accordance with the penalties provided for in
this Decree.
Failure of the owner or developer to comply with the obligations
LIABILITY OF OWNER FOR BREACH OF WARRANTIES under this and the preceding provisions shall constitute a violation
Where the brochure that was disseminated indicated features that punishable under Sections 38 and 39 of this Decree.
would be provided each condominium unit, this forms part of the
warranties of the petitioner as subdivision owner Section 22. Alteration of Plans. No owner or developer shall change
Hence, when the respondent relied on the brochure in its decision to or alter the roads, open spaces, infrastructures, facilities for public
purchase a unit, and the petitioner failed to deliver certain items use and/or other form of subdivision development as contained in
stated therein, then there was a clear violation of its warranties the approved subdivision plan and/or represented in its
and representations advertisements, without the permission of the Authority and the
Petitioner was thus in breach written conformity or consent of the duly organized homeowners
association, or in the absence of the latter, by the majority of the
Section 20. Time of Completion. Every owner or developer shall lot buyers in the subdivision.
construct and provide the facilities, improvements, infrastructures
and other forms of development, including water supply and Section 23. Non-Forfeiture of Payments. No installment payment
lighting facilities, which are offered and indicated in the approved made by a buyer in a subdivision or condominium project for the lot
subdivision or condominium plans, brochures, prospectus, printed or unit he contracted to buy shall be forfeited in favor of the owner
matters, letters or in any form of advertisement, within one year or developer when the buyer, after due notice to the owner or
from the date of the issuance of the license for the subdivision or developer, desists from further payment due to the failure of the
condominium project or such other period of time as may be fixed owner or developer to develop the subdivision or condominium
by the Authority. project according to the approved plans and within the time limit
for complying with the same. Such buyer may, at his option, be
CONSEQUENCE OF DELAY reimbursed the total amount paid including amortization interests
Petitioner may be held liable for damages but excluding delinquency interests, with interest thereon at the
legal rate.
EXTENSION OF TIME FOR COMPLETION
A request for extension of time to complete development of BUYER NEED NOT GIVE PRIOR NOTICE BEFORE DESISTING FROM
condominium or subdivision project may be granted only in cases FURTHER PAYING AMORTIZATIONS
where non-completion of the project is caused by fortuitous
events, legal orders or force majeure and with the written notice BUYER MAY NOT BE OUSTED FOR NON-PAYMENT DUE TO HIS
to lot or unit buyers without prejudice to the exercise of their FAILURE OF THE SUBDIVISION OWNER TO PUT UP THE REQUIRED
rights pursuant to Section 23 of this Decree IMPROVEMENTS
The request for extension of time for completion shall be
accompanied by a revised and financing scheme thereof PRIOR PURCHASERS CANNOT BE DISPOSSESSED BY A BUYER OF
FORECLOSED PROPERTY
Section 21. Sales Prior to Decree. In cases of subdivision lots or
condominium units sold or disposed of prior to the effectivity of FAILURE TO DEVELOP A SUBDIVISION MAY JUSTIFY NON-
this Decree, it shall be incumbent upon the owner or developer of PAYMENT OF AMORTIZATIONS BY A LOT BUYER
the subdivision or condominium project to complete compliance
with his or its obligations as provided in the preceding section NEW OBLIGATIONS UNDER PD 957 CANNOT BE DEEMED PART OF
within two years from the date of this Decree unless otherwise CONTRACTS EXECUTED BEFORE ITS EFFECTIVITY
extended by the Authority or unless an adequate performance bond
is filed in accordance with Section 6 hereof. PD 957 HAS NO PROVISION ON ABATEMENT OF NUISANCE
Section
cancellation or the demand 24. Failure
for rescission to pay
of the contract by ainstallments. Thefull
notarial act and upon rights
paymentofofthe buyer
the cash in value to the buyer.
surrender
the event of this failure to pay the installments due for reasons
other
Down payments, deposits thanonthe
or options failureshall
the contract of bethe owner
included in theor developer
computation of theto develop
total number ofthe
installment payments made.lawphi1™
project shall be governed by Republic Act No. 6552.
Section
AN ACT 7.
TOAny stipulation
PROVIDE in any contract
PROTECTION hereafter
TO BUYERS entered
OF REAL intoON
ESTATE contrary to the provisions
INSTALLMENT PAYMENTS. of (Rep.
Sections
Act 3,
No.4, 6552)
5 and 6, shall be null and void.
Section 1.
8. This
If anyAct
provision
shall beof this Act
known as is
theheld invalid
"Realty or unconstitutional,
Installment Buyer Act."no other provision shall be affected thereby.lawphi1™
Section 9. This Act shall take effect upon its approval. Approved: August 26, 1972.
Section 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.
Section 3. In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic
To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right sh
If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made, and, after five years of installments, an additional five per cent every