LRA Project: Negation in the use of discretion through standardized procedures and documentary requirements, and conscious effort

in curbing corruption The LRA is mandated to register lands in order to provide a secure, stable and trustworthy record of land ownership....1 One of the commitments by LRA to achieve this is [t]hrough honest, prompt and efficient service to preserve and maintain the integrity of land records....2 In reality, however, the use of discretion in registering lands has been a problem in the various Registry of Deeds, which has been a source of corruption in the discharge of duties of the employees of the registries.3 Such is the case in spite of the rule that [r]egistration must first be allowed and the validity or effect litigated afterwards.4 Registering land has been tedious due to the difference in documentary requirements and fees in various places in the Philippines. You will see below the varied fees and expected issuance of the titles in different registries in the Philippines: 5 Amount P23, 863 P21,261 P21,261 P23,863 P23,434 P24,322 Number of Days 10 10 10 21 5 14

Makati City Caloocan City Muntinlupa City Batangas City Cebu City Davao City

The amount consists of the registration fee, legal research fee, judicial form fee, IT fee, primary entry fee, registration fee for specific documents, fixed entry fee for specific documents, legal research fee for specific documents, annotation fee, and fee for the issuance of new transfer certificate of title.6 Also, land valuation remains to be varied. The systems are used for different purposes including real property taxation, compensation for land acquired for public investment, and for land valuation under the CARP. Valuations are often doubtful, incorrect, and influenced by local politics.7 Below, is a graphical representation of how dispersed data source for valuation is:8

There is also the existence two system of registration, which has created confusion among applicants, and other people dealing with it. There are instances where the two proceedings involve the same land. Like in the case of Abrigo v. De Vera9, where it was said that a land, covered in a Torrens Title, is sold but the sale was registered under Act 3344, the sale is not registered. Definitely, there are venues by which the government can acquire more than what is due them. In 2010, the Office of the Ombudsman charge charged 12 people, including two officials of land agencies, for faking land titles in exchange for money.10 The issuance of fake titles in exchange for money, however, is not always the case. In 2011, Quezon City Register of Deeds Elbert Quilala admitted to issuing a spurious title for 23.7 hectares of prime property in Quezon City in favor of suspected land-grabbing syndicate leader Wilfredo Torres before the justice committee of the House of Representatives. He said that he issued the title to Torres under pain of indirect contempt orders from two branches of the regional trial court in the city, one of which was hearing the land dispute between Torres and spouses Manuel and Rosalina Alio. So it can be said that the court also took part in the issuance of land title.11 In the words of Neal H. Cruz, a columnist of Inquirer newspaper, one reason Torres and others like him can do their illegal activities is that there are so many fake titles circulating. Why? Because corrupt government employees having to do with land titlingincluding, alas, some judgescooperate with the syndicates for a bribe.12 These practices have made the Land Registration Authority among the corrupt agencies. Aside from the amendment of laws, projects of the LRA can be strengthened and improved in the fight against corruption. At present, there is the Nationwide Inter-Connectivity and Uniform Procedures in the Register of Deeds. The procedure and basic requirements are as follows:13 How to Register: 1. Approach the Registration Officer to check if you have the complete needed documents for your transaction. Complete the Transaction Application Form. 2. Submit complete documents and the Transaction Application Form to the Entry clerk and wait for the Claim Assessment Slip. 3. Proceed to the cashier and pay the registration fee and IT fees indicated in the Claim Assessment Slip. Receive receipt and claim stub. 4. Claim document from the Releasing Clerk on the date indicated on the claim stub. Basic Requirements for Registration: 1. Original of the deed/instrument If original document cannot be presented, the duplicate original or certified true copy shall be presented together with a sworn affidavit executed by the interested party stating why the original document cannot be submitted. 2. Certified copy of the latest Tax Declaration of the property 3. If titled property, owners copy of the certificate of title, and all issued coowners copy if any Note:

a) If a document was executed abroad, a Certificate of Authentication by the nearest Philippine Consulate is required. b) If either party is a corporation, the following are also required: i. Secretarys Certificate/Board Resolution indicating the authorized signatory(ies) and the scope of authority ii. Articles of Incorporation iii. Certificate of SEC that the articles of incorporation has been registered There are other requirements for other types of transactions:14 For Issuance of Title Transactions: All issuance transactions require the following documents aside from the basic requirements: 1. BIR Certificate Authorizing Registration (CAR) re: payment of capital gains tax or donors tax, as the case may be 2. Real property tax clearance re: up-to-date payment of taxes 3. Proof of payment of transfer tax 4. If the land is covered by CARP, DAR clearance and Affidavit of Landholding of transferee For Annotation Transactions: All annotation transactions require the following documents in addition to the basic requirements: 1. Real property tax clearance re: up-to-date payment of taxes Additional requirements for specific types of annotation transactions: 1. Mortgage / Lease Documentary stamp tax For Subdivision and/or Consolidation Transactions: All subdivision/consolidation transactions require the following documents aside from the basic requirements: 1. Letter request for subdivision/consolidation 2. Sepia or polyethylene film of the plan duly approved by Land Registration Authority or the Land Management Bureau 3. Blue copy of the plan 4. Original technical description (duly approved) If with change of ownership, the following additional documents are required: 1. Agreement of partition 2. Real estate tax clearance For Condominium Transactions: If CCTs are to be issued for the first time in the name of the registered owner, the following are required: 1. Master Deed 2. Declaration of Restriction

3. 4. 5. 6. 7. 8.

Diagrammatic Floor Plan Letter request for issuance of individual Condominium Certificate of Title Certificate of Registration with HLURB Development permit License to sell Owners duplicate of the title of the land and all issued co-owners duplicate, if any For subsequent transfer of CCTs 1. Certificate of Management This standardized procedure is very promising. It is an ideal set-up, considering the other memos issued by the LRA in order to prevent discretion in the registration:15 Circular No. 08-2002 Posting of Workflow Chart, Task Allocation Chart and Personnel Locator Section and Division at the Central Office and Registry of Deeds Circular No. 16-2003 Reiterates the Prohibition on Package Deal stated on an earlier Circular issued on 8 August 1995 Circular No. 32-2005 (September 15, 2005) Directing all LRA officials and employees to be conscientious in preventing graft and corruption activities in their respective offices Indeed, the LRA is finding ways in order to remove the stigma of being one of the most corrupt government agencies in the country. Of course there is no assurance that all registry of deeds in the country are faithfully complying in all the guidelines, but nonetheless, there appears to be a conscious effort on the part of the LRA to curb corruption. In fact, the LRA recognizing the Top 20 most efficiently managed register of deeds is a manifestation that said agency has its eyes on the different register of deeds.16 And in 2005, the LRA Internal Audit Unit was created by virtue of Circular 26-2005 as part of its continuing efforts to prevent corruption.17 The Office of the Ombudsman has initiated the Integrity Development Review, by which the LRA is a participant.18 It is [a] process of building and sustaining the agencys ability to prevent corruption from happening. It is about integrating corruption resistance strategies into the various organizational facets of an agency so that factors that tend to contribute to corrupt behaviour can be checked and those that discourage corrupt acts or malfeasance are reinforced.16 The documents available online are for the year 2007. These are useful as you would be able to trace where possible undue advantage begins, and there are suggestions on how the agency would be able to improve itself. Below is an excerpt of the Risk Assessment Guide on the Issuance of Decree of Registration:19

Activity

Responsible Objective Unit/ Person

Risks

Likelihood Signiof occur ficance rence of Risk

Control Assessment/Areas Activities for Improvement

Here is another excerpt on the Subsequent Registration:20

And, here is another on Judicial Reconstitution:21

Improvement of the system in the LRA, particularly in the Register of Deeds, does not happen overnight. It is really important to identify the factors causing the problem, in order that measures may be implemented to prevent corruption. At the very least, it is fortunate that we see how such things are continuously being addressed. What must also be considered is for as long as applicants allow such corrupt practices to happen, there would always be corruption in the register. There should also be a conscious effort not to allow such practices on the part of the public seeking the services of said government agencies. Endnotes 1 2 3 4 5 6 7 http://www.lra.gov.ph Ibid. Ibid. LRA projects Gurbax Singh Pablo & Co. vs. Reyes and Tantoco, 92 Phil. 182-183 http://www.doingbusiness.org Ibid. Leni Lebrilla, Addressing policy gaps in the land administration system, Policy Brief No. 2011-4, Congressional Planning and Budget Department, House of Representatives, 2011 G.R. No. 154409, June 21, 2004 http://www.lra.gov.ph http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20101016-297974/12-rappedfor-faking-land-titles http://newsinfo.inquirer.net/62953/torres-land-title-fake-qc-official-tells-house http://opinion.inquirer.net/11763/why-are-the-land-grabbers-still-out-of-jail Ibid. Ibid. Development Academy of the Philippines, Integrity Development Review of the Land Registration Authority (List of Annexes), Office of the Ombudsman, 2007 http://www.lra.gov.ph Development Academy of the Philippines, Integrity Development Review of the Land Registration Authority (List of Annexes), Office of the Ombudsman, 2007 Development Academy of the Philippines, Integrity Development Review of the National Irrigation Authority, Office of the Ombudsman, 2007 Ibid. Development Academy of the Philippines, Integrity Development Review of the Land Registration Authority (Risk Assessment Guide Issuance of Decree of Registration), Office of the Ombudsman, 2007 Development Academy of the Philippines, Integrity Development Review of the Land Registration Authority (Risk Assessment Guide Subsequent Registration), Office of the Ombudsman, 2007 Development Academy of the Philippines, Integrity Development Review of the Land Registration Authority (Risk Assessment Guide Judicial Reconstitution), Office of the Ombudsman, 2007

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