Land Titles and Deeds Finale †If si Ron Carlo or kung apilidi nimo kay Tamayo nga manga
Ron Carlo or kung apilidi nimo kay Tamayo nga manga naka uno sa Land
†Suppletory in nature rani ha†
September 2
What happens after there is judgment from a registration court of a
grant of proceedings for land registration?
- give and order and forward it to the LRA
Then after the LRA will enter the judgment what will happen?
- give the title to the RD and the RD will register it
There is a decree of registration made by the court then it will be given
to the LRA and enter the decree of registration. The LRA will forward
it to the RD for transcription.
Decree of Registration
- order issued under the signature of the administrator of
the LRA in the name of the court stating that the land there in is
registered in the applicant or the oppositor
The entry of the decree of registration starts the running of
the 1 year prescriptive period within which you may file a petition for
review
What is the book of the RD?
- Registration book
When does a certificate of title take effect?
- From the date of transcription
What does a certificate of title do?
- Proof of ownership
Certificate of Title
- proves ownership
Title
- Ownership itself
†Ka basa na tingali mog caso sah? Inyu nana problema mu basa usab. Principles
nalang ni†
Decree Binds the Lands
Del Prado vs Caballero
- Conflict of a sale between the boundaries of a sale
according to the previous owner which is only 4,000 sq meters and
when they looked at the boundaries of the title, it covered 40,000 sq
meters
- GR: what define ownership over a parcel of land are the
boundaries
- Exception: if there is a substantial difference
40,000 sq meters is not more or less the same as 4,000. There
is a very big difference. The sc said that what will prevail was what
was sold according to the previous owners which were 4,000.
If a free patent has already been granted to you, is it necessary that you
will register your free patent in the land registration proceedings to
make your title indefeasible?
- Not anymore
- If a free patent is granted to you, so long as it is an A
and D public land that free patent is indivisible just like
lands covered under the Torrens system.
Tits ay nalang mog basa ani na part†
Review:
Who has a better right over one parcel of land having two
certificates of title?
- The first person who registered it first.
- If it has passed on to several buyers then you have to
trace back the derivative title, such as in the case of
Manotok Realty.
May a tax declaration defeat a certificate of title?
- No, a tax declaration only proves possession; it may
prove ownership in the absence of certificate of title.
What is the difference between an OCT and TCT?
- OCT is the first issued title
- TCT subsequent transfers after OCT
If there are two owners of a parcel of land, is it necessary that there
would also be two copies of owner’s duplicate certificate of title or will
one suffice?
- The RD may only issue one certificate of title
- If there is more than one owner of the parcel of land
SEC. 41 PD 1529 tells you that your RD may issue only
one where there is a declaration of who the owners are,
but if the co-owners would wish to have a copy for
each of them then the co-owners would request the RD
to issue separate certificates of titles
What should appear in the certificate of titles?
- The same thing that appears in each and every copy.
- Dili tagsa tagsa kada duplicate copy gi pangalan. Naa
bah diay duplicate nga dili pariha ug suwat?
- Kung 2 mu tag.iya 2 sad na ka ngan mu tatak sa
duplicate copies
If one of the co-owners decide to mortgage the parcel of land and he
has obtained consent from the other co-owner and these co-owners
have their separate duplicate certificates. Is it enough that A would
annotate the mortgage in his title but the duplicate certificate of co-
owner B not be updated?
- The encumbrance should be annotated in both titles to
prevent double sales or fraud
- What is written in one copy should also be found in the
other
Owner’s Duplicate Certificate
Reyes vs Raval-Reyes
- The SC tells us that a person alleging to have rights
over the property vis-à-vis a person whose name
appears on the certificate of title, who has a better right
of possessing the certificate of title?
o The one whose name appears on the
certificate
- While he has allocations over the rights of the property
the SC says that you have already protected your right
by filing a counter claim and by having annotated a
notice of lis pendens.
What are statutory liens affecting title?
- Limits the registered owner’s absolute title over the
property
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 1. Liens, claims or rights existing or arising under the laws or
the constitution not required to appear in the title
2. Unpaid real estate taxes
3. Public highway or private way
4. Limitations under PD 27 (emancipation of tenants from
bondage of the soil) †baw lang unsa na di lagi na mu gawas†
5. Rights incident to husband and wife, and land lord and tenant
6. Liability to attachment or levy on execution
7. Liability to any lien established by law
8. Partition between co-owners
9. Eminent domain
10. Right to relive the land from liability to be recovered by an
assignee in insolvency or trustee
11. Liabilities created by law to unregistered lands
Supposing there was a mortgage over a parcel of land before it was
registered under the Torrens system. Upon registration over the parcel
of land, the rent was not annotated on the certificate of title. The owner
sold the land. Will the third person be bound by the real estate
mortgage?
- GR: you are not bound by encumbrances that are not
annotated on the title.
- Except: under the enumeration above
Is there an instance where even if it was not annotated on the title, the
buyer may be bound by the rent?
- Not bound except when he has personal knowledge of
the real estate mortgage
- Whether it is annotated or not, the buyer is already
notified if he has personal knowledge
What personal circumstances of the registered owner should be stated
in the certificate of title?
Sec. 45 PD 1529
1. Name
2. Civil status (name of spouse)
3. Residence/postal address
4. Citizenship
5. Liens and encumbrances
Statement of Personal Circumstances
Litam vs Espiritu
Marcosa Rivera case, Litam was married to Rivera. Children
wanted the land. Rivera contended that it was her exclusive land
bought by her own money. Ang naka suwat sa certificate of title kay
“married to __”. It does not automatically mean that the property is
conjugal property. It is only indicative of your status and it does not
necessarily mean that it is conjugal property.
September 4
PNB vs CA and Vitug
You don’t need to go beyond the title.
Donata Montemayor was a widow and nothing would have prompted
them to investigate further because it was right for them to presume
that Donata Montemayor could have bought it at the time that she was
already a widow as written on the certificate of title therefore it is not
considered as conjugal property.
Supposing Mr. A owns a parcel of land and it is already registered.
May Mr. B acquire the land through prescription?
- No, because the certificate of title has made the land
indefeasible.
Sec 47 of PD 1529
- No title to registered land in derogation of the title of
the registered owner shall be acquired by prescription
or adverse possession.
- You don’t have to be in every square inch of the land
for your title to be registered. Even if you live abroad so
long as you have a certificate of title your land will be
protected.
Registered Land not Subject to Prescription
Republic vs. Mendoza
Land used by Pansinisingin Primary School (PPS) operated
by the republic but registered under the Mendozas. Republic contends
that Mendozas already relinquished their right over the land and the
republic was already paying the tax declarations. Mendoza counters
by saying he never relinquished his right but only let the republic use
his land.
- Decree of registration is conclusive upon all persons
including the government but when owner agrees
voluntarily the taking by the government he waives his
right for a formal expropriation proceeding.
- Remedy of Mendoza is payment of just compensation
not ejectment.
DBT vs Panes
Prescription will not run against a person who has actual
possession of the disputed land.
Certificate of Title not Subject to Collateral Attack
What is the difference between a direct attack and a collateral attack on
the validity of a certificate of title?
Direct Attack – the main purpose is to attack the validity of
the title like a petition for review. Main purpose is to prove in court
that the title is null and void due to extrinsic fraud.
Collateral Attack – is still an action but you are asking for a
different relief.
- What you are asking for is a different relief but in the
end you are still saying that the title is null and void.
Caraan vs CA
This was an accion reivindicatoria where there was an action
to recover the property. The relief sought was to recover the property
and Caraan wanted the certificate of title of Cosme to also be declared
null and void.
Leyson vs Bontuyan (atty. B: handled by our law firm) †murag mu
gawas gyud ni ai†
Gabud sold to Tabal and then to Noval then to Layson.
Gregorio Bontuyan the father-in-law of Noval despite knowledge of
the sale applied for free patent then sold to his son Naciansino (twice).
Leyson wanted to annul the title of Bontuyan.
What is the difference between the case of Caraan and the case of
Leyson?
- In the case of Bontuyan, he filed a counterclaim which
is considered a suit. It is an independent action. The
Leysons in this case is also suing the Bontuyans and
directly attacking the validity of their title.
- In the case of Caraan, there was also a counterclaim the
problem was that while there was an allegation of
fraud, naa ra sa iyang defense, wala niya gi balik sa
iyang counterclaim. Ang naa ra sa iyang counter claim
was that he was already the owner through
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 prescription but there was nothing there alleging that
there was this spurious OCT. In the case of Leyson it
was proven that there was fraud therefore he had better
right over the property.
+ So ani ni siya, I hapsay nato.
= Para nako, sa case ni Leyson, ni file siya ug answer sa suit
along with a counterclaim. He did not only answer the suit, he also
filed another case through a counterclaim making it an independent
action directly attacking the validity of Bontunyan’s title. In the case of
Caraan, he filed a counterclaim but did not attack the validity in his
counterclaim. He only attacked the validity in his defense so na himu
siya ug indirect attack nalang kay ang relief iya gi pangita kay
recovery of possession man nya secondary nalang ang declaration sa
certificate of title as void mao na na pildi siya.
† mao na maa.u ang abugado sa Leyson case, mama na gud ni mam. Way mas
sipsip dha?†
Oño vs Lim
- In this case the SC said that it was neither a direct
attack on the validity of the title nor a collateral attack,
what Lim was only saying was that the title is valid but
as of now it is no longer operative because there was
already a transfer.
- Lahi manang mu ingun ka dili valid ang title because
there was fraud, dili valid because the land covered by
the title is public land, lahi na xa, the title is already
inoperative because there was already a conveyance of
the property.
Splitting and Consolidation †sabotable nani†
Splitting – I buwag
Consolidation – I sagul
Is there a need for a court proceeding to split or consolidate?
- None, but there is a need to present the titles of the
parcels of lot
Splitting
1. Submit a subdivision plan to the RD on how to divide
the lot.
2. Surrender the old certificate of title so that a new one
will be issued.
Consolidation
1. Surrender all certificates of title and then it will be
canceled and a single certificate of title will be issued
Suppose you have a large parcel of land and you want to sell a portion,
but it is not subdivided. How will a buyer protect his right over the
portion that he bought?
- The buyer may ask the RD to annotate a memorandum
at the back of the title that you have bought a portion of
the land so that 3 rd persons will be notified that you
have bought a portion of the land.
- Pwede sad I subdivide para way gubot pero di ta
ganahan ana kay way caso ma hitabo para sa manga
abugado.
September 11
For a conveyance or a lien on a property registered under the Torrens
System to affect a 3rd person there it must be annotated at the back of
the certificate of title. An exception where a lien or conveyance that is
not annotated at the back of the title and still affect a 3 rd person is that
if the 3rd person has personal knowledge of such dealings or
conveyance. Section 51 and 52.
Guaranteed Homes vs Valdez (supra)
Fernandez vs CA
- The Sps were saying that they should not be compelled
to honor the sale because the sale was unregistered but
the Supreme Court said that the fact being that you are
a party to the sale, you already have knowledge of the
sale. Knowledge of an unregistered sale is already
registration. No need for annotation because they have
already actual and personal knowledge to the sale.
Fudot vs Cattleya Land (supra)
Double Sales
Art. 1544 NCC
GR: where there are 2 valid sales in favor of two different
persons on the same subject parcel of land, to determine who has the
better right:
1. The first person who registered it in good faith
2. If there is no registration then it goes to the possessor
in good faith.
3. If there is no possessor then it would go the person
who presents the oldest title.
Abrigo vs De Vera
The property was already registered under the Torrens
System. The 1st buyer registered it under 3344 because according to
them they were made to believe that it was not yet registered, while
the 2nd buyer, having relied on the Torrens Certificate of Title, already
registered the sale under the Torrens System under PD 1529. The 1st
buyer was saying that they were the 1 st buyer and also the 1 st
registrant.
- The SC said that they could not be considered as the
first registrant in good faith because they registered it
in the wrong registry. Gi register man 3344 nawa, malas
nuun, nga na register naman diay to sa Torrens System.
- They contend that it was not their fault because they
believed that it was unregistered. The SC said it could
not be an excuse because once it is registered under the
Torrens System it is already considered constructive
notice to the whole world.
†dinhi gyud to daghan na disguido oh! Isa nako ato, sala gyud tong RL Tisoy kay
wa ka tubag†
Now, BONGHANOY!: Lets twist the facts, what if the land was
registered under the Torrens System only after the 1 st sale where the 1st
buyer already registered it under 3344. Under the set of facts, who has
the better right?
Tisoy: sipyat kay wa kasabut sa pangutana
Ga Tama: na mental block nya wa sugti I repeat ang question
Josephine: gi balik ra ang facts kay wa sad kaybaw
BustaRhymes: dfghjktyrtuiojkjlhdlksv,mxcvwoerhasdfasdfhasdajkhfaklh
Hey Big Spender!!!: kuha kaa.u
- “Sps. Abrigo because prior to the registration under the
Torrens system which took place after the 1 st sale, the
sps. Abrigo rightfully registered under 3344 which
governs the registration of unregistered lands because
the land was not yet registered under PD 1529”
TUMPAK!!
- Under the given set of facts it would now be the
Abrigos who had the better right because they
registered it under the correct registry. Considered
valid and effective registration and is not deemed
constructive notice to the whole world.
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San Lorenzo vs CA
- The SC did not apply the rule on double sale because
the first contract was a contract “to” sell not a contract
“of” sale.
- For double sale to apply there must be 2 valid sales but
in this case there was one contract TO sell and there
was a contract OF sale.
Contract to sell – there is no transfer of ownership, there is only
transfer only upon full payment when the owner would contract a
deed of sale.
- In this case there was only a down payment, and the
final payment was not even received because there was
a disagreement as to the price. You cannot say that the
contract between Babasanta was a sale; it was only a
contract to sell. For 1544 to apply there must be 2 valid
sales. The one who had the contract of sale has the
better right.
Calalang vs RD
- Petitioner said that the judgment was not binding upon
them because they were not served notices. The SC said
that a reconstitution proceeding is a proceeding in rem.
Therefore so long as the publication has been made,
that is already constructive notice on the whole world.
Cruz vs Cabana (supra)
- The SC explained that when a 2 nd buyer has been
considered as having no knowledge to be able to
displace the 1st buyer. When gani to ang knowledge?
- From the time of the sale up to registration.
When can you say a registration of a subsequent conveyance or
dealing in a property is already registered?
- For there to be a complete registration there must be a
presentation of the owner’s duplicate certificate of title.
It is not enough that the books of registry there is an
annotation of the conveyance but there must also be an
annotation or registration in the owners duplicate
certificate.
What is the effect if there is an issuance of a new transfer certificate of
title in favor of a party where that third party has not surrendered the
previous certificate of title?
- The new TCT is not valid and will not confer any right
because there is still the outstanding previous
certificate of title. It must first be surrendered.
What if there is transmittal in favor of a buyer and the buyer wants the
certificate of title to be transferred in his name, but the seller will not
surrender the certificate of title. Is there a remedy?
- The buyer may petition in court to compel the seller to
surrender the certificate of title.
September 16
What is the rule on forged deeds?
GR: A forged deed does not convey title.
Exception: when it is transferred to an innocent purchaser
for value
Exception to the exception: the purchaser has been the
victim of impostors pretending to be the registered owners but are not
the real owners
- Simple terms: the registration is still in the name of the
registered owner and not the forger, the purchaser was
dealing with the impostor
Joaquin vs Madrid
- Sps. Madrid wanted to loan from RFC, De Jesus
(grandmother) offered to work for shortening of the
long process of the loan. The TCT was delivered to De
Jesus
- Sps. Madrid wanted the TCT back. Sus kay gi loan man
sad diay ni lola didto ni Joaquin para sa iyaha.
- SC said that Joaquin was already in the business (of
buying lands) for 7 years and he should have verified
who the true owners were.
- This case is the exception to the exception to the general
rule. Joaquin was not entitled to protection under the
law. He may be an innocent mortgagee but the problem
was that the title was still in the name of Sps. Madrid.
Muñoz vs Yabut
Sps. Ching lived with sister Muñoz. Sps. Ching sold to
Muñoz for service rendered. Muñoz sold to Emilia Ching then Ching
to Sps. Go. Go mortgaged to BPI and BPI foreclosed the land. It was
then bought by Chan. It was later found that the document containing
the sale of Muñoz to Ching was forged.
- SC said that although there was an exception to the
general rule. This case is the exception to the exception.
The document was still in the name of the registered
owner. There was no ruling of the SC as to whether
Sps. Chan were considered as innocent purchasers for
value because it remanded the case back to the trial
court.
Duran vs IAC
Petitioners were the owners of the land. There was a deed of
sale to the mother of the petitioners and she sold it to Respondents.
Were the respondents considered innocent purchasers?
- This case the exception to the general rule.
- The forger had a title from the true owner. Title of the
true owner was cancelled and transferred to the
mother/forger. Then she sold it to the respondents.
Respondents now considered as innocent purchasers
because the title is already in the name of the forger at
the time of the sale.
Adriano vs Pangilinan
- Land owned by Adriano and title was entrusted to
Salvador and then without authorization it was
mortgaged to Pangilinan. Upon foreclosure Pangilinan
bought the property. Adriano then found out and
wanted to recover the property.
- Adriano can recover because Pangilinan was negligent
in his part. He did not bother to inquire about the real
owner of the property.
- Exception to the exception
Will there be a new issuance of certificate of title if the buyer would
present to the register of deeds a deed of sale and the buyer would also
surrender the certificate of title?
- Yes
How about a real estate mortgage? If you can present a real estate
mortgage contract and also present the certificate of title.
- No
- Sec 54: No new certificate shall be entered or issued
pursuant to any instrument which does not divest the
ownership or title from the owner or from the
transferee of the registered owners.
- There is only cancelation of previous certificate and
issuance of a new certificate if the dealing on the
property results to divestiture of ownership like a sale
4
 or a donation but if it is only a real estate mortgage, it is
only a security over a loan. It does not divest the owner
of title over the property. There is no new issuance;
there is only annotation on the title.
How about a contract to sell?
- Indi pa rin te
Where will you find the annotation?
- Dorsal side of the certificate of title.
- Back na ha
What should a voluntary instrument contain?
- Name
- Civil status
- Residence
- Postal address
How about if it involves a corporation?
- It must also state that it is legally authorized and
qualified to acquire land
Where shall notices be made?
- Served upon the persons who have interest
What is the Primary Entry Book?
- It involves all writs and processes filed in the RD
relating to registered lands Sec. 56 PD 1529
- Every time it enters an instrument there should be a
date and time and hour of entry
What is the procedure in the registration of conveyances?
- Owner who decides to convey must register a deed of
conveyance and the RD will place in the registration
book a new certificate of title and then note the date of
transfer, the volume and page of the certificate where it
is registered.
- There must be a date of conveyance volume and page
in the registration book in which the new certificate is
registered and referenced by the number of the last
preceding certificate
What happens to the transferor’s certificate?
- Stamped as cancelled
What happens if only a portion of the land covered by a certificate of
title is conveyed?
- The best way for a buyer to protect his interest is by
annotation or an entry of memorandum of sale
- No issuance of new certificate unless the buyer can
present a subdivision plan and there is a clear
indication of which part of the allotted portion of the
land is sold because the old certificate of title will be
cancelled and new certificates of title will be issued
based on the subdivision plan.
If there are encumbrances in the grantor’s title and a new title is issued
to the grantee should the register of deeds copy all encumbrances of
the old title to the new one?
- Yes
- Sec. 59 If, at the time of any transfer, subsisting
encumbrances or annotations appear in the registration
book, they shall be carried over and stated in the new
certificate or certificates; except so far as they may be
simultaneously released or discharged.
What is a real estate mortgage?
- Mortgage concerning immovable properties set aside to
secure a loan
How about personal?
- Those are covered by chattel mortgage law
What are the requisites for a mortgage?
3 requisites mentioned in the civil code
1. Property is mortgaged in order to fulfill the principal
obligation
2. Done by a mortgagor who is the absolute owner of the
property
3. Person constituting the pledge or mortgage must be
fully authorized to conduct the mortgage
The pledgor or mortgagor should be the absolute owner of the thing
pledged or mortgaged. Supposing I am a debtor of a 5M loan with BPI
bank and BPI wants me to secure the loan with a parcel of land. Can I
use the land in the name of my parents as security?
- Yes, if you can acquire an special power of
attorney(SPA)
- The requisite is that the mortgagor must be the absolute
owner of the property but not necessarily the debtor
- I may ask from my parents an SPA to authorize me to
mortgage their property
- Do not confuse a debtor and a mortgagor
- You are called a debtor-mortgagor if you are both the
debtor and the mortgagor at the same time
What are the characteristics of a mortgage?
1. Real Right – mortgage binds a person who knows of its
existence or if the mortgage was registered.
2. Accessory contract – it needs a principal contract to
exist. Cannot exist on its own. If the loan is
extinguished so is the real estate mortgage
3. Indivisible – if there is partial payment, it won’t release
the mortgage over the property
4. Inseparable – it follows the property whoever the
owner is, so long as it is registered.
5. Real Property – A mortgage on real property is by itself
real property also
6. Limitation on Ownership - a mortgage encumbers but
does not end ownership but it may lead to an end of
ownership
If there are 2 co-owners who mortgaged their land to secure a loan,
then later subdivided the land and 1 co-owner pays his share of the
mortgage, it does not release the mortgage over the land because a
mortgage is indivisible, even if it is already subdivided.
Larosa vs CA
- The 1st issue in this case was whether the predecessor
had the right to mortgage. The SC said they had no
right because his rights stemmed only from a contract
to sell. In a contract to sell, there is no transfer of
ownership, and if there is no transfer of ownership you
cannot mortgage a parcel of land. To be able to
mortgage the land the mortgagor must be the absolute
owner
- The 2nd issue, granting there was a valid mortgage, and
you are the mortgagee, can you eject the occupants?
- No, a mortgage is only an encumbrance or a lien on the
property, it does not transfer ownership. You don’t
have the right of possession and right over the
property. The mortgagor is still the owner of the
property. He can still use the property.
5

Who had the better right of the certificate of title? Mortgagor or
Mortgagee?
- Mortgagor, because he is the owner
If there is a foreclosure from the bank, can the bank eject you right
away?
- No, there is still a 1 year redemption period. You can
still stay within the 1 year redemption period. After the
redemption period has expired the ownership will
become consolidated in favor of the bank, but it is not
automatic. The bank will still file an affidavit of
consolidation and present it to the RD. There must be
registration of the certificate of sale, and then show the
annotation, because the 1 year period starts from the
date of the certificate of sale, not from the issuance of
the certificate of sale.
Who gives the certificate of sale?
- The sheriff
When the RD registers the certificate of sale that is when the 1 year
period starts to run. Then the bank will have to prove again, execute an
affidavit of consolidation then show the annotation para ma transfer
ang ownership. Then the bank will have to pay the taxes (capital gains
tax) so that it will be issued a certificate authorizing registration.
Principle:
A mortgagee, since he is not yet the owner of the property,
cannot eject the occupants of the property. Even during the time he
became the highest bidder, so long as the 1 year has not yet lapsed.
Effect of a real estate mortgage:
1. Bind the whole world
a. Even without personal knowledge
Will the real estate mortgage still be valid if it is not registered?
- Still valid, registration has nothing to do with its
validity. Registration only pertains to notice to bind the
whole world.
Innocent mortgagee for value
- Same as innocent purchaser for value
- To a mortgagee, you depart with money kay gi utangan
ka sa debtor-mortgagor
Rural Bank of Sta. Ignacia vs Dimatulac
GR: The innocent purchaser can just rely on the certificate of
title.
- The GR does not apply to banks. Extra prudence and
diligence should be exercised by banks because their
business is imbued with public interest. SC said the rule
with persons dealing with registered lands can rely
solely on the certificate of title does not apply to banks,
the decree of diligence required to banks is more than
that of a good father of a family in keeping with the
responsibility to exercise the necessary care and
prudence on registered lands.
- No ocular inspection by banks, it is standard procedure
but it was not done by the bank.
September 18
Gonzales vs IAC
- Sps. Asuncion sold in a public auction to Province of
Iloilo †kanang ginikanan sa inyung student org ug ni
Dora†
- Hortencia, the daughter, found the land to still be in the
name of the parents then bought the land from her
mother. Then later on sold the land to Sps. Panzo who
then mortgaged the land to Rural Bank and later on
foreclosed.
- Was the rural bank a mortgagee in good faith?
- SC classified the bank as an innocent mortgagee for
value unlike the case last meeting. Katong di mu apply
kuno ang GR sa banks.
- In this case, the bank did ocular inspection and the
rigid procedure through their credit committee. There
was no notice of lis pendens in the title as well.
- There were also 2 notices. One for ejectment and one
for mortgage. The SC, the real estate mortgage is the
superior lien
When will a mortgage be cancelled?
- Upon full payment of the principal obligation (loan)
- Cancelled only upon showing a deed or affidavit of
cancelation of mortgage executed by the creditor-
mortgagee. The affidavit will be presented to the RD
and the RD will cancel the real estate mortgage
Sec 62
A mortgage or lease on registered land may be discharge or
canceled by means of an instrument executed by the mortgage or
lessee in a form sufficient in law, which shall be filed with the Register
of Deeds who shall make the appropriate memorandum upon the
certificate of title.
If the parties agree in writing that upon default in payment of the loan
the mortgaged property will automatically pass to the mortgagee.
- Void agreement
- Pacto commisorium
- What is required by law in a mortgage is that once
there is a default in the payment. There should be a
public auction. There must be foreclosure. So that the
proceeds of the sale will be used to pay the outstanding
balance of the loan. Not that the property will be used
to pay off the debt.
Foreclosure
- Selling the mortgaged property at public auction so
that the proceeds may be used to pay the obligation
Supposing the highest bidder has offered is less than the principal
obligation. May the creditor mortgagee still ask from the mortgagor
the deficiency?
- Yes, kung kulang
What if there is a mortgage over the property but the creditor, instead
of foreclosing the property, files an action for specific performance. If
the creditor wins the collection suit and the debtor still does not pay,
may the creditor now pursue the foreclosure of the mortgage?
- No, filing the action for collection in court is considered
a waiver to foreclose the mortgage
- He may just ask for an execution sale, even on the same
property that once was mortgaged but he will have to
respect superior liens and encumbrances. He will now
be an ordinary creditor.
- Iya nalang untang gi foreclose kay superior man unta
to iyang mortgage
6
Prescriptive period for foreclosing a mortgage Extra-Judicial Foreclosure
- 10 years when the action occurred Sps. Borromeo vs CA
o Upon default of the payment Whether injunction will lie, to stop a foreclosure proceeding.
 Upon demand and no payment - It will not, but in practice it is used to delay
proceedings
Execution of the mortgage was done in 2000, demand was made 2003. - In an injunction proceeding, it is used to stop a
Wa bayri, wa sad gi foreclose. There was another demand in 2009, still violation of a right, there is no violation of a right in a
no payment. When will prescription end? mortgage proceeding.
- From the last demand - Nganu in this case gi grant ang injuction?
- From 2009 o The party foreclosing was not the proper
- Every time there is a demand there will be a fresh 10 party. Creditor was EPCIB and the one who
year period foreclosed was ESB. Corporation code sa ta,
different juridical personality man sila. Naa
Difference between a judicial and extra judicial foreclosure sale unta toy deed of assignment pero wa man.
Judicial
- Upon the expiration of the 1 year redemption period Redemption
there is a requirement of notice of hearing by the court Landrito vs CA
for the confirmation of sale - SC said that the redemption period had already lapse
- The court may confirm the sale (divests the mortgagor and the mortgagee had every right to consolidate the
of his mortgage over the property) title in a sale. The redemption period should be counted
- Due notice and hearing may confirm the sale from the registration of the certificate of sale
- The mortgagor may redeem the property at any time - The redemption period of 1 year can be changed. It can
prior to confirmation of the sale be converted into a conventional redemption if the
- After confirmation there can no longer be redemption parties so agree. But for it to be a conventional
- But if the mortgagee is the bank, you can still redeem redemption there should be a commitment of the
the property within 1 year from the confirmation of the debtor to pay the price at a fixed period. There must be
sale from the court. a compromised agreement.
Atty. B to RC: “Kana ma perfect na gyud ka sa exam ana kay kaybaw
naka” When you mortgage a property to the bank, the value of the
loan must only be 40% of the property compared to the property.
Extrajudicial
- Just have to go to the sheriff and after the expiration of Principle ani. Pwede ghpn mo redeem kung mag sabut mo.
the 1 year redemption period you can automatically So long as there is an agreement among the parties pwede ra ghpn ma
foreclose the property. redeem even beyond the redemption period.
- Redemption period is very clear under act 3135
o Within 1 year from registration of the May a right of redemption assigned to another person?
certificate of sale - Yes, right to foreclose may be assigned to another
- After the auction sale the sheriff will issue a certificate
of sale, the issuance of the certificate of sale is not the Sa sunod nga cases pariha ra gyud na hitabo
reckoning period of the 1 year redemption period. It o Yulienco vs CA
still has to be registered in the RD. o Samson vs Rivera
o De Vera vs Agloro
†para sa manga tapulan mu basa† - Nangutang, wa ka bayad, foreclose, no lapse ang
Judicial Extra-Judicial redemption period. Gi consolidate. Ang issue kay
Redemption Period ROC Rule 68 Act 3135 possession.
At any time before Within 1 year from
confirmation of the registration of the The writ of possession is a matter of right of the mortgagee. Ministerial
sale certificate of sale siya. Writ of possession may be asked by the mortgagee during the
ONLY redemption period but there is an additional requirement. Dapat nay
filing of BOND in the value of the use of the land for 12 months.
Exception: Mortgagee is the N/A Murag ga renta sa property.
bank, you can still - Pero after the consolidation of the property after and in
redeem the property the name of the mortgagee, no more bond is needed.
within 1 year from Matter of right na siya to possess the property.
the confirmation of
the sale from the Merong tanong sa ibang klase
court. - Kanus.a man daw maka choose ug judicial or extra-
judicial.
Place of Filing Court Sheriff o If you have a real estate mortgage, pwede
extra-judicial
o Mortgagee is given the option to choose.
Why do you count from the registration of the certificate of sale and
not from the issuance?  The 1st party authorizes the 2 nd
party to sell the property at public
- Because registration serves as notice to the whole
auction in default of payment
world.
- Notify the whole world of the existence of the under Act. 3135.  if wala gani ni
judicial gyud ka.
certificate of sale.

7
September 23
Rights of Subsequent Lien Holder
PNB vs ICB
SC said that if you are a mortgagee and you have annotated
the mortgage prior to any other encumbrances, you have a superior
right over all others. Subsequent lien holders can protect their right by
paying the previous mortgagee the value of the loan to pay off the
mortgage para sila nasad ang naay superior right.
Cavaet Emptor
Sy vs Capistrano
- Basta buyer beware nana xa
- If dealing with a person who is not the registered
owner. You should not confine yourself to the
certificate of title only.
- GR: you are only bound to look at the title
- Exception: when dealing with someone who is not the
registered owner. It is incumbent upon you to
investigate.
Involuntary Dealings
Attachments
- Legal process of seizing another’s property in
accordance with a writ or judicial order for the purpose
of securing satisfaction of a judgment yet to be
rendered.
Adverse Claims
- A measure designed to protect the interest of a person
over a piece of real property where the registration of
such interest or right is not otherwise provided by the
Property Registration Decree.
- There is no other remedy provided for by law to protect
your interest
- Claims after Original Registration
If adverse claim is prior to registration
- Can no longer use the remedy of adverse claim because
adverse claim has been brought up during the
registration proceedings.
Period where adverse claim is effective upon registration of adverse
claim:
- 30 days from date of registration
After lapse of 30 days:
- Must have it canceled to no longer be binding.
How to cancel?
- File a petition before the court so that hearing may be
made.
- Hearing is necessary so that you can have the adverse
claim canceled.
Golden Haven Memorial park vs Filinvest
SC said Filinvest could not be considered an innocent
purchaser for value because there was annotation of adverse claim in
favor of Golden Haven. Filinvest was said that it could be considered
an IPV because the adverse claim was only for one lot but SC said that
the fact that one of the lots were under adverse claim, it should have
already warned you that the seller is engaged in double sale.
Enforcement of Liens on Registered Land and Application for New
Certificate Upon Expiration of Redemption Period (sec. 74-75)
Padilla vs Phil Producer’s Cooperative
- If the previous owner will not surrender the certificate
of title because it was an involuntary transfer like
foreclosure or execution, your remedy is not motion
from the court but an independent action. You must file
in court specific performance to deliver the title to you.
If it is not possible because it is not with the previous
owner then the court will order the register of deeds to
cancel the title and issue a new one.
†Na discuss na daw before midterms ang kani nga principles, inyu nana
problema†
Lis Pendens (Sec. 76)
- Land is pending litigation
Viewmaster Construction vs Maulit
- 2 conditions, joint venture project + collateral.
Viewmaster only followed the joint venture but not the
collateral. Roxas did not “tuman-tuman” the
agreement.
Atty B.: pwede raman gud na tuman, nganu tuman²
man gyud? Na stress kos tuman²
- Petitioner wanted to place a notice of lis pendens on the
title.
- RD denied request to annotate the notice because they
said it does not contain the adequate description of the
property. (issue 1)
- The notice of lis pendens only stated “a parcel of land
in this area.” SC said that it is not an adequate
description however Viewmaster attached a certificate
of title then the SC with the TCT attached there was
already a technical description that cured the defect.
There was already substantial compliance.
- Issue 2: the notice of lis pendens. The SC said that it is
correct to have a notice of lis pendens because the land
was pending suit. The notice is used to inform
subsequent purchasers that there is a pending suit over
the land and to protect the person in interest.
Issue 1: there must be a description of the parcel of land.
What parcel is made for litigation?
- SC said there might have been a deficiency over the
parcel of land but it was cured by the attachment of the
TCT
Issue 2: should not be subject to notice of lis pendens
because they had no problem with the ownership of the
property. According to the respondent, lis pendens should
only be annotated when there is a debate on the ownership
of the property.
- SC said that lis pendens is not just for ownership; it
could even be for use and possession.
- SC further said that even if there is a notice of lis
pendens, it does not affect the merits of the case, only
that it warns whoever is dealing with the property is
that this property is involved in litigation.
St. Mary vs RD Makati
2 purposes of notice of lis pendens
1. to keep the subject matter of the litigation within the
power of the court until the entry of the final judgment
as to prevent the defeat of the latter by successive
alienations
2. to announce to the whole world that the particular
property is in litigation.
The notice of lis pendens, before the dismissal of the case,
was canceled. In the appeal of the case in the CA. they asked
8
 the lower courts to re-issue the notice. The lower court said
that it could no longer re-issue it because it no longer has
jurisdiction over the case. Pangutan.a ang CA di kami
Their contention was that the notice of lis pendens should no
longer be annotated because it was already terminated in the
lower court. SC said that the fact that the case is still pending
in the CA it is still in litigation. It is alright that there is re-
issuance, more so petitioner St. Mary has already made
subsequent transactions with third persons. It is only proper
that there is re-issuance.
Question:
Will the re-issuance affect closed transactions?
- No, if the deal was done before re-issuance then it is not
affected by lis pendens
- If not yet completed then it is affected by the notice of
lis pendens.
- Balik ta sa GR katong clear-title² pero katong bank kay
kailangan gyud mu go beyond the title ghpn. If na
human na ang deal nya way notice then apply GR pero
if pag contract sa deal naa na ang notice, then apply
caveat emptor nana siya.
De La Meced vs GSIS
- Notice of lis pendens was only on the mother title, in
the decision there was nothing place as well as in the
derivative titles. The SC said that the demand of GSIS is
unreasonable and absurd because the fact that there is a
notice of lis pendens on the mother title whether it is
subdivided later on or not means that the derivative
titles are in fact pending litigation. The fact that there is
already a final judgment, then it can be executed upon.
If the previous owner neglects or refuses to surrender the title:
Remedy:
- File and independent action for specific performance
- As the court for the previous owner to surrender the
title.
Sec 79 Surrender of owners duplicate
- Duplicate certificate has to be surrendered (the
previous one), for you to have a new certificate issued.
September 25
Assurance Fund
- Fund provided for in cases where a person was
deprived of his property unlawfully or through any
deceitful means and could not get back the property
because it is already in the hands of an innocent
purchaser for value, he can recover from the assurance
fund
Contribution:
- Comes from all registered owners of properties
- Pay the Register of Deeds ¼ of 1% of the latest
assessed value of your property.
- Registration fee every time there is a Certificate of
title is issued for original title or certificate of title in
another’s name in subsequent transfers
File the action against:
1. Co-defendants (parties who caused injury)
2. RD
3. National Treasurer
Is there an instance where in claiming against the insurance fund, you
need only to file the case against the RD and NT?
- If registration in another person’s name is caused by
the fraud or error by the RD or personnel not by any
other 3rd person.
Torres vs CA
2 important principles:
1. When dealing with reconstituted title
a. GR on the title will not apply, you need to
look beyond the title
Baket?
- ehh kasi, you only allege that the title is lost.
- If the title is reconstituted, it already serves as a
warning that there is a possibility that it is not lost and
a certificate of title may be subsisting somewhere. If
there is a subsisting title elsewhere then the
reconstituted title is nullified.
2. In claiming against the assurance fund there is a
requirement that there must be no negligence.
- The SC found that they were negligent because they
received the property as mortgage and the property
was very valuable. They should have investigated
which they did not do. Cannot claim against the party
but can claim against the party who defrauded you.
In Sec. 97
- Granting that there is no negligence on your part. You
can file against the party who defrauded you, the RD,
and the NT but it is not automatic that you can claim
from the assurance fund because judgment is satisfied
by first against the party who defrauded you.
- Only when the judgment is unsatisfied you can go
against the assurance fund.
What is the consequence if the assurance fund pays you?
- The government is not subrogated in your rights
against the party who defrauded you.
- The party who is ultimately liable is the one who
caused the deprivation of the property.
Is there a prescriptive period?
- 6 years from the time that cause of action accrues
Exception:
- Minority
- Insane
- Legal disability
There is a 2 year period where he can file the action from the
time the impediment/disability disappears despite the 6
year period lapsed.
Alonso vs CCC
- Dmd baga kaa.u nawng Alonso. Klaro na kaa.u nga
wala gyud issuhi ug tarong nga patent nangusog gyud
abut sa SC.
Sec. 103
- If a patent is granted, conveyance of the property is
determined when there is registration of the patent.
- It is the act of registration that shall be the operative act
to affect and convey the land, and in all cases under this
Decree, registration shall be made in the office of the
Register of Deeds of the province or city where the land
lies.
9
 - There was a patent, but there were several
requirements missing: approval of the DENR and
registration
- Sec 103 said that there must be registration first before
the patent could be conveyed. Since it was not
conveyed, then Francisco could not claim ownership
because his predecessor in interest cannot be
considered an owner kay wa may registration.
Surrender Withheld Duplicate Certificate (Sec. 107)
Toledo vs CA compared to Padilla vs PPC
Why do you think that the SC said that there is no need for
an independent action, and then in the case of Padilla SC said that
there is an independent action filed to compel the previous owner to
surrender it?
Padilla
- It was about money claims and therefore the decision
had nothing to do with the ownership of the property.
Na foreclose man siya, then it is not enough that you
just file a motion for the RD to cancel because wala sa
decision ni ingun kinsa ang owner. Ownership of the
property has nothing to do with the decision of the
court. That is why a separate independent action was
needed.
Toledo
- It was really on ownership. The court said already
kinsa ang owner. SC said no need to file a separate
action kay gi ingun naman sa decision kinsa gyud ang
tag.iya.
Amendment and Alteration of Certificates (Sec. 108)
Oliva vs Republic
- Nag lalis sila sa easement on the land (sec 51 water
code). Kung I ilis bah ug 3 meteres kay na private land
naman kuno xa or mu sunod sa stipulation nga public
ghpn xa nya 40 meters ghpn ang easement.
- In amendments and alterations in a certificate you have
to go to a court proceeding because they have to alter
the annotation on easement.
- There is a principle that. If there is a patent, and it was
duly registered then it has already been conveyed.
That means it was previously a public land and it was
given to a private individual. Then that means that the
land has already been converted to private alienable
and disposable land. Di ma himo nag issue ug patent
which was duly registered and you will continue to say
that it was public land. The issuance of the patent and
the registration converted the land to private land.
Easement on public land is only applicable to public
lands. So amendment is proper and 3 meters easement
nalang I butang sa title.
Philippine Cotton Corp vs Gagoomal
- Pacific Mills was the original owner of 5 parcels of land
and it then sold to Gagoomal. Petitioner filed a
collection suit against Pacific Mills and won, and then
there was an attachment. Petitioners sought for
annotations on the land that was owned already by
Gagoomal. There was a fire in the RD. Upon
reconstitution there was no longer a notice of lis
pendens. Petitioner asked for re-annotation. RD only
re-annotated only on the copy in the RD not on the
duplicate title. Was it proper for the RD to re-annotate
immediately upon request of the petitioner without a
court proceeding without surrendering the
reconstituted title?
- SC said in this case considered that there was an
amendment of the certificate because there was
issuance of the reconstitution of title.
- RD said that it was ministerial in his part to re-
annotate. SC said that it was already an amendment
and it must go through proper court proceeding.
Notice and Replacement of Lost Duplicate Certificate
Feliciano vs Zaldivar
- Na baligya ang yuta kay nag tanga² si lola, kay “a
person of limited education” man siya.
- Even if you had undergone the proceeding of
reconstitution, even if the court has already granted
and ordered the reissuance of the reconstituted title. If
it is later found that the title of the certificate of title still
exists, then the court never acquired jurisdiction. In a
reconstitution of title proceeding, a jurisdictional fact is
that the title has been lost. If wala na wagtang, wala
naka kuha ug jurisdiction ang court. Any title that was
issued in a reconstituted title preceding that was found
that the original title still exists will be declared null
and void.
- If you are dealing with a person, who has limited
educational attainment, you must able to prove that the
person signing the document has understood what he
was signing. Remegia was able to prove that she was
not able to understand what she was signing in the
joint affirmation of confirmation of sale. Wala pa gyud
nagpakita sa contract of sale, samut.
September 30
Reconstitution of Lost or Destroyed Original Torrens Title
Pascua vs Republic
- SC said in a reconstitution proceeding, you have to
prove that certificate of title was lost. That is why there
are rigid list of evidence that must be produced to
prove that the certificate of title existed.
- Pascua showed:
o Deed of sale, a deed of sale does not tell you
that a certificate of title exists. It only tells you
that there was a sale of the property not that
there was a title issued for the property.
o A deed of partition which was not registered.
o Certification of the LRA that a decree was
issued, but it never stated that there was a
certificate of title issued for the decree.
- They could not prove that there was a certificate of title
granted therefore the reconstitution was denied.
- For the list of requirements it is under RA 26. Sec 2 for
OCT and Sec. 3 for TCT †para sa ganahan mu perfect gyud†
Republic vs Cattaroja
- There was insufficient evidence to prove that a
certificate of title was issued. They showed:
o The publication in the official gazette, but it
does not prove that a certificate of title was
issued. It only proves that they started the
process of applying for original registration.
o Certification from the LRA, but it did not
state that a certificate of title was issued. It
was a confirmation of ownership, but still it
did not prove that a certificate of title was
issued.
10

Estoppel in Action for Cancellation of Title
Barstowe Phils vs Republic
- Nakig FlipTop si DemiLynYap ni mam ani, dmd kung I
type pa nako.
- Subdivision acquired by Barstowe. Government
claimed the land but was not acted upon for a long
period.
- Unreasonable length of time within which the
government asserted its right over the property.
- SC said that government is not barred by estoppels but
in this case there were innocent buyers affected.
- So those lots already sold to IPV will remain with the
IPV. Those unsold lands will return to the government.
GR: Estoppel does not run against the government
Exception: Innocent Purchaser for Value is involved.
Yujuico vs Republic
- GR: action to recover lands of the public domain is
imprescriptible
- Except: except barred by laches if IPV is concerned
Atty.B: “Erojo, what are the schedule of fees?”
si mam kay
Section 111
- Fees payable to the Clerk of Court, the Sheriff, the RD
and LRC
Dealing with unregistered land, if there are any conveyances on unregistered
land, what is the effect?
- It shall only be binding between the parties
Consulta (Richleigh)
Section 117. Procedure. When the Register of Deeds is in doubt with
regard to the proper step to be taken or memorandum to be made in
pursuance of any deed, mortgage or other instrument presented to him
for registration, or where any party in interest does not agree with the
action taken by the Register of Deeds with reference to any such
instrument, the question shall be submitted to the Commissioner of
Land Registration by the Register of Deeds, or by the party in interest
thru the Register of Deeds.
- Follows the Doctrine of Exhaustion of Administrative
Remedies before seeking aid to the court
October 2
Condominium Act
- A condominium is an interest in real property
consisting of separate interest in a unit in a residential,
industrial or commercial building and an undivided
interest in common, directly or indirectly, in the land
on which it is located and in other common areas of the
building. A condominium may include, in addition, a
separate interest in other portions of such real property.
Title to the common areas, including the land, or the
appurtenant interests in such areas, may be held by a
corporation specially formed for the purpose
(hereinafter known as the "condominium corporation")
in which the holders of separate interest shall
automatically be members or shareholders, to the
exclusion of others, in proportion to the appurtenant
interest of their respective units in the common areas.
To be an incorporator in a condominium corporation you should be a
share holder. For you to be a share holder you must be an owner of a
unit. For you to be an owner of a unit you must fully pay the price
What is the concurrent obligation of the developer?
- Deliver the condominium certificate of title.
Warranties and Representations
BPI vs ALS Management Crop.
- Agents warrant those specific amenities to be delivered
such as CCTV, ref sa kitchen etc.
- General Concept: “condominium living at its very best”
- It is a general waiver, you do not expect when you buy
a condominium your life will be better. †Naay chance
dimalasun ka, murag lawstudent, malas malasun permi†
Jurisdiction
- The courts do not have jurisdiction. It is the
HLURB(Housing and Land Use Regulatory Board) on
real estate business.
o Specific performance
o Delivery of title
o Complaints concerning the developer
o Suspension of payments
Relating to real estate business
- SC said that there is no jurisdiction but since the issue
was raised belatedly. It was only raised when there was
unfavorable decision therefore the developer was
already estopped.
Atty.B: “ingana unta mo mu recite ug caso”
- Next year lang mam
Redemption of Mortgaged Condominium Lot
De Vera vs CA
- Purchase of a unit wherein the purchase was forced to
pay PAGIBIG loan. There was a bridge financing loan
wherein if the proceeds of PAGIBIG will be released the
bank will first shoulder.
- Problem was the purchaser was unaware that the
application was denied. All the while he thought that it
was already fully paid. He is now asking for the
condominium certificate of title.
- There was no fault in the part of the purchaser.
- There was also a discussion on redemption on the
mortgage of a condominium unit. Pwede mu apply ang
developer ug loan nya I mortgage ang building but
when there is a foreclosure, the developer is obliged to
redeem the property. Condo owner will not spend
anything in the redemption loan.
Suspension of Monthly Amortization
Gold Loop Properties vs CA
- Issue on whether the purchaser is justified in
suspending payments.
11
 - Wa man xa taga.i sa contract to sell na irit na xa wa xa
ni bayad. Now the developer contended that there was
already a contract to sell but it was proven that there
really was no contract. The developer admitted that
they have not given the contract but they contend that
it is not important because the purchaser already
knows how much he is going to pay.
- SC said that it is not enough, in a contract to sell, it is
very important that the purchaser will have it so that he
may be appraised and aware of his rights and
obligations.
- That is bad business practice.

Alteration of Plans
G.O.A.L. Inc vs CA
- Alteration in adding a 5 th floor
- There was already an approval from the NHA now the
HLURB. There was an issue on a unit owner who
wanted the condominium certificate of title because he
has already fully paid it but it was withheld because gi
gamit ang title for the application of a loan. Gi himo
nasad ug collateral.

Important principles:
- You can alter only with approval with the HLURB and
consent of the unit owners (kailangan ang duha gyud)
- When you mortgage it must be with approval with the
HLURB and consent of the unit owners.

Pressure
It can turn a lump of coal into a flawless diamond
Or an average person into a complete basket case

12