Land registration

For legal research purposes of lawyers visiting this

blog, may I simplify hereinbelow the basic things to do
in handling a petition or application for original and
cadastral land registration before the Regional Trial
Courts (RTC) of the Philippines.


Original Land Registration (ordinary and
cadastral);
Simplified Procedures.


Ref.:

1. 2002 Rev. Manual for Clerks of Court; see
Appendix B (LRA Manual of Instructions [for clerks
of courts]);
2. PD 1529, Sec. 14, et. seq. (Prop. Reg. Decree of
1978 [Orig. Reg.]);
3. Act 2259 (Cadastral Act);
4. CA No. 141 (Public Land Act).


Format of application/petition: read Sec. 15, PD
1529.

Attachments to the petition (3 copies of petition to be
filed with RTC OCC):

1. Orig. plan in tracing cloth or diazo polyester film
duly approved by the DENR Reg. Tech. Dir.
2. In lieu thereof, a true copy of the said orig. plan
attested and certified correct by the Reg. Tech. Dir. or
his duly authorized official.
3. Two white or blue print copies of the plan.
4. Orig. And two copies of the technical descriptions
certified by the Reg. Tech. Dir. or his authorized
official. Not merely signed by the Geod. Engr.
5. Orig. and two copies of the Geod. Engr.s
certificate. In lieu thereof, a certification (orig. and two
copies) from the Reg. Tech. Dir. as to its non-
availability.
6. Tax Dec. or in lieu thereof, an affid. of 3
disinterested person as to the market value of the
land (Jud. Form 81).
7. All orig. muniments of title of the petitioner which
prove his ownership of the land. Not mandatory as
along as the docs can be produced before the court
during the trial.

Work to do before filing petition (secure orig. copies of
the attachments to the petition):

1. Work out with the ofc. of the DENR Reg. Tech. Dir.
All the approved plans, tech. descrip., certif.. of non-
availability of Geod. Engr.s certificate.
2. Work out with priv. Geod. Engr. the orig. copy of his
Certif.
3. Work out with the local Assessor the orig. copy of
the Tax Dec.
4. Gather all proofs of ownership deeds, contracts,
special powers of attorney, etc.
5. Gather all proofs of payments of taxes - local real
estate and transfer taxes and all BIR/national revenue
taxes involving the land and all related transactions.
6. Others.

The petitioner must submit proof of service of a copy
of the petition and its annexes on the Reg. Exec. Dir.
of the DENR (by way of Copy Furnished). Allege in
the petition. Attach affid. of service. (Sec. 17, Pd
1529).

Court docket and filing fees pay to RTC OCC.

Publication fees (notice of initial hearing) pay to
LRA docket section. Bring certified copy of the order.
The initial hearing is set not earlier than 45 days nor
later than 90 days from the date of the issuance of the
order. (Sec. 23, PD 1529).


Initial hearing:

1. Follow up the order of initial hearing.
2. Follow up the publications of the order.
3. During the initial hearing, move for general default
4. Later on, get copy of the order of gen. default.
5. During the initial hearing in open court, mark the
proofs of juris. facts (see the Record of the case), to
wit:
5.1. Order of initial hearing
5.2. Letter of RTC BCC forwarding the case to the
LRA and the OSG
5.3. Notices to the petitioner, adjoining owners,
creditors, et. al.
5.4. Sheriffs certificate of posting
5.5. Proofs of notice of initial hearing addressed to
concerned govt agencies: CENRO, PENRO, DENR
Reg. Off., OSG, LRA, RD, et. al.
5.6. Two certificates/affids. of publication (Off. Gaz.
and a national newspaper). With orig. copies of the
printed issue/s.
5.7. Others (see the Record of the case and mark all
notices/orders related to the initial hearing, as well as
all proofs of service thereof).


Order of initial hearing must be issued within 5 days
from filing of petition (after raffle to the court branch).

Two copies of order of initial hearing are served on
the LRA within 15 days from issuance thereof. LRA
shall arrange for its publication in the Off. Gaz. and in
a national newspaper (once only). Petitioner must pay
publication fee to LRA docket section cashier. Get
OR.

Fees see Sec. 111, PD 1529. To be collected by
RTC OCC. Based on assessed value of land and
improvements, per Tax Dec. or per joint affid. of 3
disinterested person as to its market value. Get OR.
(See also new Rule 141, Legal Fees; and Rule 142,
Costs of Suit).

Cost of publications. To be paid to the LRA, approx.
P1, 000 (Off. Gazz.). Fees of national newspaper
vary. Go to LRA docket section with certif. copy of
order of initial hearing, with court case/docket
number, for ref. of LRA cashier.

Upon gen. default, petitioner may move for ex parte
presentation of evid. before the BCC as
commissioner. (Rule 32, Rules of Court).

The courts LRC Case No. (court docket no.) is
different from the LRAs Rec. No. The LRA Rec. No.
is set by LRA, not by the court.


After trial, the final steps are:

1. Decision. Get certified copies.
2. Get Certificate of Finality of Judgment from the
court staff.
3. File a motion for issuance of decree of reg. Attach
certificate of finality of judg. Notice of hearing.
4. Follow up the order granting the motion.
5. Follow up the Decree of Reg. (to be issued by the
LRA). Get certif. copy of the Decree from LRA.
6. LRA forwards orig. of the Decree to local RD
concerned. Follow up status. Get certif. copy of
Decree from RD (optional).
7. Follow up with RD the issuance of OCT. Pay the
RD reg. fees.
8. Get owners duplic. copy of OCT from the RD.


Legend:

BCC Branch Clerk of Court
BIR - Bureau of Internal Revenue
CA Commonwealth Act
CENRO Community Environment and Natural
Resources Office
DENR Department of Environment and Natural
Resources
Geod. Engr. Geodetic Engineer
LRA Land Registration Authority
LRC Land Registration Commission (old name of
LRA)
Off. Gaz. Official Gazette
OCC Office of the Clerk of Court
OCT Original Certificate of Title
OR Official Receipt
OSG Office of the Solicitor General
PD Presidential Decree
PENRO Provincial Environment and Natural
Resources Office
RTC Regional Trial Court
RD Register of Deeds
Reg. Exec. Dir. Regional Executive Director
Reg. Tech. Dir. Regional Technical Director
Reg. Off. _ Regional Office
Tax Dec. Tax Declaration


Prepared by:


Atty. Manuel J. Laserna Jr.
Managing Partner, Laserna Cueva Mercader Law
Offices (LCM Law)
Founder and Board Consultant, Las Pinas City Bar
Association (LPBA), Inc.
Prof. of Law, FEU, Manila (ret.)
lcmlaw@gmail.com
http://attylaserna.blogspot.com
http://lcmlaw.multiply.com

PROBATIVE VALUE OF A TORRENS TITLE

A Torrens title is generally a conclusive evidence of the
ownership of the land referred to therein (Ching vs.
Court of Appeals, 1990, 181 SCRA 9, 18; Sec. 49, Act
496). It is settled that mere possession cannot defeat
the title of a holder of a registered Torrens title to real
property (J.M. Tuazon & Co. Inc. vs. Court of Appeals,
1979, 93SCRA 146 cited in Abad vs Court of Appeals,
1989, 179 SCRA 817, 826-827).
A Torrens certificate accumulates in one document a
precise and correct statement of the exact status of the
fee simple title which as owner possesses. The
certificate, once issued, is the evidence of the title which
the ownerhas (Legarda, et al., vs. Saleedy, 31 Phil. 590
[915].

A Torrens title, once registered, cannot be defeated,
even by adverse, open, and notorious possession. A
registered title under the Torrens system cannot be
defeated by prescription. The title, once registered, is
noticed to the whole world. All persons must take notice.
No one can plead ignorance of the registration (Egao vs.
Court of Appeals, 1989, 174 SCRA 484, 492 citing
Legarda vs. Saleeby, 31 Phil. 590, 595; See also Sec. 46
of Act 496, Land Registration Act).

4. In the case of a transfer certificate of title, the same
is enforceable in the hands of a holder in good faith and
for valuable consideration or an innocent purchaser for
value. An innocent purchaser for value is deemed,
under the Torrens system, to include an innocent lessee,
mortgagee, or other encumbrances for value (Ibid citing
Leung Yee vs. Strong Machinery Co., 37 Phil. 644).
Section 51, Paragraph 2 of the Property Registration
Decree (P.D. 1529) of Land Registration Act (Act No.
496).

5. Section 3 of Presidential Decree No. 1073 dated
January 25, 1977 further provides: Section 3 the
judicial confirmation of incomplete titles to public land
based on unperfected Spanish Grants such as
application for the purchase, prior to the transfer or
sovereignty from Spanish to the United State shall no
longer be allowed. However, P.D. 1529 should be read
in conjunction with the provisions of this section shall
not be construed as prohibiting any person claiming the
same land under Section 48 ( and Section 48 (C) if
he meets the conditions prescribed for Judicial
confirmation of Torrens System.

6. On July 7, 1989, Trial on the merits proceeded
against the private respondents Ocampo, Buhain and
Dela Cruz, the lower court rendered judgment dismissing
the complaint on the subject land claim in the history of
the Philippines in the subject controversy in these
consolidated cases base on the following ground that;
(a) private respondent are already the registered owners
of the parcels of land covered by Torrens title which
cannot be defeated by the alleged Spanish title. (b) To
enjoy the presumption of validity as a last hurrah to
champion their claim to the vast state covered by the
Spanish title.

GENERAL RULE

A certificate of titles is not conclusive evidence of title if
the same land had already been registered and an
earlier certificate for the same is in existence whether
wholly or partly, the certificate that is earlier title in date
prevails. (Heir of Luis J. Gonzales vs. Gonzaga vs. Court
of Appeal, 261 SCRA 327)

A land registration court has no jurisdiction to order the
registration of land already decreed in the name of
another in earlier land registration case. (Laburada vs.
Land Registration Authority, 387 SCRA 333) a second
decree for the same land is, therefore, null and void
(Metropolitan Waterworks and Sewerage System vs.
Court of Appeal, 215 SCRA 783) once declared by a
court of competent jurisdiction, the Torrens System Title
to the land is already a res judicata binding on the whole
world, the proceeding being in rem (Lahora vs.
Dayanghirang, Jr., 37 SCRAA 346).

Proceeding in rem. Judicial proceedings for the
registration of lands throughout the Philippines shall be
in rem, and shall be based on the generally accepted
principles underlying the Torrens system. (P.D. 1529,
Sec. 2)

Land registration under the Torrens system is a judicial
proceeding in rem (P.D. 1529. Sec. 2), intended to
confirm and register the ownership or title of a person
over the land. (see Republic vs. Reyes, 71 SCRA 450,
458; Development Bank of the Phil. Vs. Court of
Appeals, 331 SCRA 267, 281)

In rem proceedings such as land registration constitutes
constructive notice to the whole world. (Calalang vs.
Register of Deeds of Quezon City, 208 SCRA 215)
(Machine copy is hereto attached as NNEX and made
an integral part of this paragraph.)

G.R. No. L-18276 January 12, 1967
C. N. HODGES, petitioner-appellee,
vs.
THE MUNICIPAL BOARD OF THE CITY OF ILOILO;
Honorable Rodolfo Ganzon, in his capacity as City
Mayor of the City of Iloilo; and the CITY OF
ILOILO, respondents-appellants.
The registration with the registry of deeds of voluntary
conveyances of real property under the Torrens
system is, in this jurisdiction, mainly controlled by the
Land Registration Act, Act 496, as amended.
Amongst others, this statute provides that "... The act
of registration shall be the operative act to convey and
affect the land, and in all cases under this Act the
registration shall be made in the office of the register
of deeds for the province or provinces or city where
the land lies" (section 50). The requirements for
deeds or other voluntary instruments of conveyance
to be registrable thereunder are specified in the law
(section 54) and, for purposes of registration, "The
production of the owner's duplicate certificate
whenever any voluntary instrument is presented for
registration shall be conclusive authority from the
registered owner to the register of deeds to enter a
new certificate or to make a memorandum of
registration in accordance with such instrument, and
the new certificate or memorandum "shall be binding
upon the registered owner and upon all persons
claiming under him, in favor of every purchaser for
value and in good faith ..." (section 55, par. 2). The
schedule of fees to be paid upon such registration is
likewise therein set forth (section 114, sub-section C,
as amended by Republic Act 928). In addition,
Republic Act 456 also requires that "No voluntary
document by which real property or an interest therein
is sold, transferred, assigned, mortgaged or leased
shall be registered in the registry of property, unless
the real estate taxes levied and actually due thereon
shall have been fully paid" (section 1); and, that
"Every document of transfer or alienation of real
property filed with the Register of Deeds shall be
accompanied with an extra copy of the same which
copy shall be transmitted by said officer to the city or
provincial assessor ... (section 2). As it thus results,
the Legislature appears to have specified the
minimum requirements for the registration of
conveyances of real property. Upon satisfaction of the
said requirements, it becomes the legal duty of the
registrar to make the registration requested. No entity,
it seems clear enough, except the Legislature itself,
may add to or detract from or otherwise alter or
amend the requirements it has so enumerated and
then only by the corresponding amendment of the
existing statutes or the enactment of new ones.
Lis Pendens
[Latin, Pending lawsuit.] A reference to the jurisdiction
(or control) that courts obtain over property in a suit
awaiting action.
A notice filed in the office of public records that the
ownership of real property is the subject of a legal
controversy and that anyone who purchases it takes it
subject to any claims asserted in the action and thereby
its value might be diminished.
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale
Group, Inc. All rights reserved.

lis pendens (lease pen-dense) n. Latin for "a suit
pending," a written notice that a lawsuit has been filed
which concerns the title to real property or some interest
in that real property. The lis pendens (or notice of
pending action) is filed with the clerk of the court,
certified that it has been filed, and then recorded with the
county recorder. This gives notice to the defendant who
owns real estate that there is a claim on the property,
and the recording informs the general public (and
particularly anyone interested in buying or financing the
property) that there is this potential claim against it. The
lis pendens must include a legal description of the real
property, and the lawsuit must involve the property.
Otherwise, if there is a petition to remove the lis pendens
from real property not involved in the lawsuit, the plaintiff
who originally recorded a false lis pendens will be
subject to payment of attorneys fees as a penalty.
Example: Joe Plumbob provides work and materials to
Smith's home, sues to enforce a mechanic's lien, but
records a lis pendens describing three other properties
owned by Smith; Plumbob can be penalized by court
order.
Copyright 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right
reserved.

lis pendens noun filed notice, notice of an action,
nooice of pending suit, notice of right, notice on file
Burton's Legal Thesaurus, 4E. Copyright 2007 by William C. Burton.
Used with permission of The McGraw-Hill Companies, Inc.

LIS PENDENS. The pendancy of a suit; the time
between which it is instituted and finally decided.
2. It has been decided that the mere serving of a
subpoena in chancery, unless a bill be also filed, is not a
sufficient lis pendens, but the bill being filed, the lis
pendens commences from the service of the subpoena,
although that may not be returnable till the following term
1 Vern. 318; and after a decree, final in its nature, there
remains no lis pendens. 1 Vern. 459.
3. It is a general rule, that lis pendens is a general
notice of an equity to all the world. 3 Atk. 343; 2 P. Wms.
282; Amb. 676; 1 Vern. 286. Vide 2 Fonb. Eq. 152, note;
1 Supp. to Ves. jr. 284; 3 Rawle, R. 14; Pow. Mortg.
index, h.t.; 1 John. Ch. R. 566; 2 John. Ch. R. 158; 4
John. Ch. Rep. 83; 2 Rand. Rep. 93; 1 M'Cord, Ch. R.
264; Harp. Eq. R. 224; 1 Bibb, R. 314; 5 Ham. Rep. 462;
4 Cowen, R. 667; 1 Wend. R. 583; 1 Desaus. R. 167,
170; 2 Edw. R. 115; 1 Hogan, R. 69; 6 Har. & John. 21;
2 Dana, R. 480; Jac. R. 202; 1 Russ. & My. 617 Corn.
Dig. Chancery, 4 C 3; 2 Bell's Com. 152, 5th ed.; 1 Bail.
Eq. R. 479; 7 Dana, R. 110; 7 J. J. Marsh. 529; 1 Clarke,
R. 560, 584; 14 Ohio, 109, 323.
4. When a defendant is arrested pending a former
suit or action, in which he was held to bail, he will not, in
general, be held to bail, if the second suit be for the
same cause of action. Grah. Pr. 98; Tro. & Hal. Pr. 44; 4
Yeates' R. 206. But under special circumstances, he
may be held to bail twice, and of these circumstances
the court will judge. 2 Miles, Rep. 99, 100, 142. See 14
John. R. 347. When such a second action is
commenced, the first ought to be discontinued and the
costs paid; but, it seems, it is sufficient if they are paid
before the replication of nul tiel record to a plea of autre
action pendant. in the second suit. Grah. Pr. 98; and see
1 John. Cas. 397; 7 Taunt. 151; 1 Marsh. R. 395; Merl.
Rep. Litispendance; 5 Ohio R. 462; 6 Ohio R. 225; 1
Blackf. R. 53; Id. 315; Autre action pendent; Bail;
Litigiosity.
A Law Dictionary, Adapted to the Constitution and Laws of the United
States. By John Bouvier. Published 1856.




















































MALACAANG
M a n i l a
PRESIDENTIAL DECREE No. 1529
AMENDING AND CODIFYING THE LAWS RELATIVE TO
REGISTRATION
OF PROPERTYAND FOR OTHER PURPOSES
Section 44. Statutory liens affecting title. Every
registered owner receiving a certificate of title in
pursuance of a decree of registration, and every
subsequent purchaser of registered land taking a
certificate of title for value and in good faith, shall hold
the same free from all encumbrances except those
noted in said certificate and any of the following
encumbrances which may be subsisting, namely:
First. Liens, claims or rights arising or existing under
the laws and Constitution of the Philippines which are
not by law required to appear of record in the Registry
of Deeds in order to be valid against subsequent
purchasers or encumbrancers of record.
Second. Unpaid real estate taxes levied and assessed
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 payable before that
period from the delinquent taxpayer alone.
Third. Any public highway or private way established
or recognized by law, or any government irrigation
canal or lateral thereof, if the certificate of title does
not state that the boundaries of such highway or
irrigation canal or lateral thereof have been
determined.
Fourth. Any disposition of the property or limitation
on the use thereof by virtue of, or pursuant to,
Presidential Decree
No. 27 or any other law or regulations on agrarian
reform.

ASSURANCE FUND
Section 93. Contribution to Assurance Fund. Upon
the entry of a certificate of title in the name of the
registered owner, and also upon the original
registration on the certificate of title of a building or
other improvements on the land covered by said
certificate, as well as upon the entry of a certificate
pursuant to any subsequent transfer of registered
land, there shall be paid to the Register of Deeds
one-fourth of one per cent of the assessed value of
the real estate on the basis of the last assessment
for taxation purposes, as contribution to the
Assurance Fund. Where the land involved has not
yet been assessed for taxation, its value for
purposes of this decree shall be determined by the
sworn declaration of two disinterested persons to
the effect that the value fixed by them is to their
knowledge, a fair valuation.
Nothing in this section shall in any way preclude the
court from increasing the valuation of the property
should it appear during the hearing that the value
stated is too small.
Section 94. Custody and investment of fund. All
money received by the Register of Deeds under the
preceding section shall be paid to the National
Treasurer. He shall keep this money in an Assurance
Fund which may be invested in the manner and form
authorized by law, and shall report annually to the
Commissioner of the Budget the condition and
income thereof.
The income of the Assurance Fund shall be added to
the principal until said fund amounts to five hundred
thousand pesos, in which event the excess income
from investments as well as from the collections of
such fund shall be paid into the National Treasury to
the account of the Assurance Fund.
Section 95. Action for compensation from funds. A
person who, without negligence on his part,
sustains loss or damage, or is deprived of land or
any estate or interest therein in consequence of the
bringing of the land under the operation of the
Torrens system 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.
CLAIMS AGAINST THE
ASSURANCE FUND
> Section 95 provides a remedy where a person who
sustains loss or damage or is deprived of any estate or
interest in land in consequence of the operations of the
Torrens system of registration, without negligence on his
part, may bring an action for the recovery of damages to
be paid out of the Assurance fund
> Public policy demands that those unjustly deprived of
their rights over real property by reason of the operation
of our registration laws be afforded remedies
> According to the principles of the Torrens system, it is
a condition sine que non that the person who brings an
action for damages against the Assurance fund be the
registered owner, and as to holders of transfer
certificates of title that they be innocent purchasers in
good faith and for value
> There must also be a showing of loss or damage or
deprivation of any land or interest thereon by the
operation of PD1529
> Where plaintiff is solely responsible for the plight in
which it finds itself, the Director of Lands and the
National Treasurer are exempt from any liability
REQUISITES FOR RECOVERY
FROM THE ASSURANCE FUND
1. That a person sustains loss or damage, or is
deprived of any estate or interest in land
2. On account of bringing of land under the
operations of the Torrens system arising after the
original registration
3. Through fraud, error, omission, mistake, or
misdescription in a certificate of title or entry or
memorandum in the registration
4. Without negligence on his part
5. And is barred or precluded from bringing an
action for the recovery of such land or estate or
interest therein
RECORDED MORTGAGE IS
PROTECTED EVEN IF TITLE IS
SUBSEQUENTLY NULLIFIED
Land Registration
Section 10 of Presidential Decree No. 1529, as
amended provides for the duty of the Register of
Deeds in so far registration of instruments are
concerned. It states, "It shall be the duty of
the Register of Deeds to immediately
register an instrument presented for
registration dealing with real or personal
property which complies with all the
requisites for registration."

Now, can the Register of Deeds refuse
registration of an instrument? Subsequent
portion of said section provides, "He shall see
to it that said instrument bears the
proper documentary and science stamps
and that the same are properly canceled.
If the instrument is not registerable, he
shall forthwith deny registration thereof
and inform the presentor of such denial
in writing, stating the ground or reason
therefor, and advising him of his right to
appeal by consulta in accordance with
Section 117 of this Decree."

Clearly, when the Register of Deeds, for some
reason or another, refuse registration or
annotation of a particular instrument, document
or paper, the remedy provided by law is to appeal
by consulta said denial to the Land Registration
Authority.

Here are the steps or procedure of appeal by
consulta:

1) The Register of Deeds shall notify the
interested party in writing, setting forth the
defects of the instrument or the legal ground
relied upon for denying the registration, and
advising that if he is not agreeable to such ruling,
he may, without withdrawing the documents
from the Registry, elevate the matter by Consulta
to the Administrator of the Land Registration
Authority (LRA).


2) Within five {5) days from receipt of notice of
denial, the party-in-interest shall file his Consulta
with the Register of Deeds concerned and pay the
consulta fee.

3) After receipt of the Consulta and payment of
the corresponding fee the Register of Deeds
makes an annotation of the pending consulta at
the back of the certificate of title.
4) The Register of Deeds then elevates the case
to the LRA Administrator with certified records
thereof and a summary of the facts and issues
involved.

5) The LRA Administrator then conducts
hearings after due notice or may just require
parties to submit their memoranda.

6) After hearing, the LRA Administrator issues
an order prescribing the step to be taken or the
memorandum to be made. His resolution in
consulta shall be conclusive and binding upon all
Registers of Deeds unless reversed on appeal by
the Court of Appeals or by the Supreme Court.
(Section 117, P.D. 1529).

A certain Register of Deeds denied the
registration of the Deed of Absolute Sale
executed by a corporation sole on the ground
that Court Approval is necessary since the
Vendor being a corporation sole pursuant
to Section 113 of Batas Pambansa Blg. 68,
the Corporation Code of the Philippines.

Pursuant to Section 117 of Presidential Decree
No. 1529, otherwise known as the Property
Registration Decree, we elevate the matter
toLand Registration Authority (LRA) by way
of consulta.


BASIS OF CONSULTA

Section 117 of the Property Registration Decree
reads


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.
Where the instrument is denied registration, the
Register of Deeds shall notify the interested party
in writing, setting forth the defects of the
instrument or legal grounds relied upon, and
advising him that if he is not agreeable to such
ruling, he may, without withdrawing the
documents from the Registry, elevate the matter
by consulta within five days from receipt of notice
of the denial of registration to the Commissioner
of Land Registration.

The Register of Deeds shall make a
memorandum of the pending consulta on the
certificate of title which shall be cancelled motu
proprio by the Register of Deeds after final
resolution or decision thereof, or before
resolution, if withdrawn by petitioner.

The Commissioner of Land Registration,
considering the consulta and the records certified
to him after notice to the parties and hearing,
shall enter an order prescribing the step to be
taken or memorandum to be made. His
resolution or ruling in consultas shall be
conclusive and binding upon all Registers of
Deeds, provided, that the party in interest who
disagrees with the final resolution, ruling or order
of the Commissioner relative to consultas may
appeal to the Court of Appeals within the period
and in manner provided in Republic Act No.
5434.

STATEMENT OF MATERIAL DATES

Include a statement that the corporation sole has
until a particular date (it should be within five
days)to elevate the matter by consulta to the
Land Registration Authority.


STATEMENT OF FACTS


ISSUE
Whether or not the Deed of Absolute Sale is
registrable, despite the absence of a Court
Approval allowing the corporation sole, to sell the
Property?

DISCUSSION

1. Section 113 of the Corporation Code of the
Philippines was the basis for the denial of
registration by the Register of Deeds. Section
113 is hereto quoted in full, as follows:


Acquisition and alienation of property. - Any
corporation sole may purchase and hold real
estate and personal property for its church,
charitable, benevolent or educational purposes,
and may receive bequests or gifts for such
purposes. Such corporation may sell or mortgage
real property held by it by obtaining an order for
that purpose from the Court of First Instance of
the province where the property is situated upon
proof made to the satisfaction of the court that
notice of the application for leave to sell or
mortgage has been given by publication or
otherwise in such manner and for such time as
said court may have directed, and that it is to the
interest of the corporation that leave to sell or
mortgage should be granted. The application for
leave to sell or mortgage must be made by
petition, duly verified, by the chief archbishop,
bishop, priest, minister, rabbi or presiding elder
acting as corporation sole, and may be opposed
by any member of the religious denomination,
sect or church represented by the corporation
sole: Provided, That in cases where the rules,
regulations and discipline of the religious
denomination, sect or church, religious society or
order concerned represented by such corporation
sole regulate the method of acquiring, holding,
selling and mortgaging real estate and personal
property, such rules, regulations and discipline
shall control, and the intervention of the courts
shall not be necessary. (portions in bold are
added for emphasis)

2. Basing only on the first paragraph of the above
quoted Section 113 of the Corporation Code,
the Register of Deeds is correct in his denial.
However, he erroneously missed the proviso on
the same Section 113 that states Provided, That
in cases where the rules, regulations and
discipline of the religious denomination, sect or
church, religious society or order concerned
represented by such corporation sole regulate
the method of acquiring, holding, selling and
mortgaging real estate and personal property,
such rules, regulations and discipline shall
control, and the intervention of the courts shall
not be necessary.

3. A corporation sole was organized and
registered with the Securities and Exchange
Commission, under the following provision of the
Corporation Code of the Philippines
(Corporation Code):

SECTION 110. Corporation Sole. For the
purpose of administering and managing, as
trustee, the affairs, property and temporalities of
any religious denomination, sect or church, a
corporation sole may be formed by the chief
archbishop, bishop, priest, minister, rabbi or
other presiding elder of such religious
denomination, sect or church.

6. For the purpose of this consulta, it is
instructive to note that corporation sole described
in Section 113 of the Corporation Code, may
purchase, hold and dispose of real estate and
personal property for its church, charitable,
benevolent or educational purposes. Moreover,
corporation sole has rules, regulations and
discipline which regulates the method of
acquiring, holding, selling and mortgaging real
estate and personal property, such that the
existence of said rules, regulations and
discipline, the intervention of the courts shall not
be necessary as said rules, regulations and
discipline would control.

10. Since corporation sole rules, regulations and
discipline regulate the method of selling real
estate property, such rules, regulations and
discipline shall control, and the intervention of the
courts shall not be necessary. Hence, the Deed
of Absolute Sale is registrable, despite the
absence of a Court Approval allowing LDS, being
a corporation sole, to sell the Property.


PRAYER

We therefore request that:

1. The Land Registration Authority directs the
Register of Deeds to register the Deed of
Absolute Sale between the parties--

2. The Register of Deeds be further directed to
cause the cancellation of Transfer Certificate of
Title No. and the issuance of a new title covering
the ---square meters subject of the sale in favor
of the buyer.

Based on LRA CIRCULAR No. 04-2005
otherwise known as the Supplement to Rules
and Procedure on Consulta, it is directed that all
Consulta shall be filed directly with the Register
of Deeds concerned who shall endorse the same
to the LRA after payment of the required fees. No
consulta shall be entertained by LRA without the
required endorsement from the Register of
Deeds.