Ownership of Lands by Corporations
1. There is an Apparently valid or effective instrument.
Land Titles And Deeds
May a corporation own lands?
It depends.
1. Corporation sole can acquire by purchase a parcel of private
agricultural land without violating the constitutional prohibition
since it has no nationality.
2. Corporation
a. Private Lands
i. At least 60% Filipino (Sec. 7, Art. XII, 1987 Constitution)
ii. Restricted as to extent reasonably necessary to enable it to
carry out purpose for which it was created
iii. If engaged in agriculture, it is restricted to 1,024 hectares.
b. Patrimonial property of the State (Sec. 3, Art. XII, 1987
Constitution)
i. Lease (cannot own land of the public domain) for 25 years
renewable for another 25 years
ii. Limited to 1,000 hectares iii. Applies to both Filipinos and
foreign corporations.
May a corporation apply for registration of a parcel of land
Yes, through lease not exceeding 1,000 hectares. Such lease shall not
exceed twenty five (25) years and renewable for not more than
twenty five (25) years. (Sec. 3, Art. XII, 1987 Constitution)
Note: Determinative of this issue is the character of the parcels of
land – whether they were still public or already private – when the
registration proceedings were commenced. If they are already
private lands, the constitutional prohibition against acquisitions by a
private corporation would not apply.
What are the requisites for an action to quiet title?
1. Plaintiff must have a Legal or equitable title to, or interest in the
real property which is the subject matter of the action;
2. There must be Cloud in such title;
3. Such cloud must be Due to some
a. Instrument;
b. Record;
c. Claim;
d. Encumbrance; or
e. proceeding which is apparently valid but is in truth invalid,
ineffective, voidable or unenforceable, and is prejudicial to the
plaintiff’s title; and
4. Plaintiff must
a. Return to the defendant all benefits he may have received from
the latter; or
b. reimburse him for expenses that may have redounded to his
benefit.
What are the requisites for existence of a cloud?
2. But such instrument is in Truth:
a. Invalid;
b. ineffective;
c. voidable;
d. unenforceable;
e. has been extinguished or terminated;
f. has been barred by extinctive prescription.
3. Such instrument may be Prejudicial to the title.
What are the prescriptive periods for bringing an action to quiet
title?
1. Plaintiff in possession – imprescriptible
2. Plaintiff not in possession – 10 years (ordinary) or 30 years (extra-
ordinary)
Note: Laches is defined as the failure or neglect, for unreasonable
and unexplained length of time, to do that which by exercising due
diligence, could or should have been done earlier. The negligence or
omission to assert a right within a reasonable time, warranting a
presumption that the party entitled to assert it either has
abandoned it or declined to assert it. (Tijam v Sibonghanoy, L-21450,
Apr. 15, 1968)
Is an action to quiet title imprescriptible?
Yes. Even though the Civil Code does not include an action to quiet
title as one of those actions which are imprescriptible, the SC in this
case held that such action is imprescriptible. The basis of the court is
Art. 480. The imprescriptibility of an action to quiet title is a general
principle from American jurisprudence. (Bucton v. Gabar, G.R. No. L-
36359, Jan.31, 1974)
DUTY OF SUBDIVISION OWNER TO SECURE RIGHT OF WAY
> Applies to an owner or developer of a subdivision without access
to a public highway
> A municipal ordinance declaring a subdivision road open to public
used by public authorities when deemed necessary simply allows
person other than the residents of the subdivision to use the road
when they are inside the subdivision but doesn’t give outsiders a
right to open subdivision walls so they can enter the subdivision
from any point
> The closure of a dead end is part of one’s proprietary rights
DUTY OF OWNER TO DELIVER TITLE OF THE CONDOMINIUM UNIT
> Upon full payment of the purchase price, the seller is duty-bound
to deliver the title of the unit to the buyer
> Even with a valid mortgage over the lot, the seller is still bound to
redeem said mortgage without any cost to the buyer apart from the
balance of the purchase price and registration fees
> Section 25 imposes an obligation on the part of the owner or
developer in the event the mortgage over the lot or unit is
outstanding at the time of the issuance of the title to the buyer, to
redeem the mortgage and corresponding portion thereof within 6
months from such issuance

> The 6-month period will run from the full payment of the agreed
price
Time of Completion of Subdivision or Condominium Plans
Time of Completion. Every owner or developer shall construct and
provide the facilities, improvements, infrastructures and other forms
of development, including water supply and lighting facilities, which
are offered and indicated in the approved subdivision or
condominium plans, brochures, prospectus, printed matters, letters
or in any form of advertisement, within one year from the date of
the issuance of the license for the subdivision or condominium
project or such other period of time as may be fixed by the
Authority.
CONSEQUENCE OF DELAY
> Petitioner may be held liable for damages
EXTENSION OF TIME FOR COMPLETION
> A request for extension of time to complete development of
condominium or subdivision project may be granted only in cases
where non-completion of the project is caused by fortuitous events,
legal orders or force majeure and with the written notice to lot or
unit buyers without prejudice to the exercise of their
rights pursuant to Section 23 of this Decree
> The request for extension of time for completion shall be
accompanied by a revised and financing scheme thereof
LIABILITY OF OWNER FOR BREACH OF WARRANTIES-
CONDOMINIUM UNIT BROCHURES
> Where the brochure that was disseminated indicated features that
would be provided each condominium unit, this forms part of the
warranties of the petitioner as subdivision owner
> Hence, when the respondent relied on the brochure in its decision
to purchase a unit, and the petitioner failed to deliver certain items
stated therein, then there was a clear violation of its warranties and
representations
MORTGAGE OF CONDOMINIUM WITHOUT KNOWLEDGE OF BUYER
IS AN UNSOUND BUSINESS PRACTICE
> The buyer has a cause of action for annulment of the mortgage,
the mortgage foreclosure sale, and the condominium certificate of
title that was issued to highest bidder
REGISTRATION OF SALE OF SUBDIVISION LOTS AND
CONDOMINIUM UNITS
> Sales or conveyances of subdivision lots and condominium units
shall be registered from the execution thereof by the seller with the
Register of Deeds of the province or city where the property is
situated
> Except as otherwise provided for by law, the Housing and Land Use
Regulatory Board may in appropriate cases cause the RD to cancel
the registration, entries or annotations on titles made in this regard
PERIOD TO APPEAL IS 15 DAYS
> The period within which to appeal the decision of the Board of
Commissioners of the Housing and Land Use Regulatory Board to the
Office of the President is 15 days from the receipt of the assailed
decision, pursuant to Section 15 of Presidential Decree 957
> The 30-day period mentioned in the Rules of Procedure of the
HLURB is not applicable because special laws providing for a remedy
of appeal to the Office of the President must prevail over the
Housing and Land Use Regulatory Board Rules of Procedure
As resolved in UNITED OVERSEAS BANK PHILIPPINES, INC., versus
SIONY CHING and TOWNTEC REALTY & DEVELOPMENT CORP.1:
As correctly pointed out by the Office of the President, the period to
appeal the decision of the HLURB Board of Commissioners to the
Office of the President has long been settled in the case of SGMC
Realty Corporation v. Office of the President,[6] as reiterated in
Maxima Realty Management and Development Corporation v.
Parkway Real Estate Development Corporation,[7] where we ruled
that the period of appeal is 15 days from receipt thereof pursuant to
Section 15[8] of PD No. 957 and Section 2[9] of PD No. 1344 which
are special laws that provide an exception to Section 1 of
Administrative Order No. 18. Thus:
x x x Administrative Order No. 18, series of 1987, issued by public
respondent [Office of the President] reads:
“Section 1. Unless otherwise governed by special laws, an appeal
to the Office of the President shall be taken within thirty (30) days
from receipt by the aggrieved party of the decision/resolution/order
complained of or appealed from.”
As pointed out by the public respondent, the aforecited
administrative order allows aggrieved party to file its appeal with the
Office of the President within thirty (30) days from receipt of the
decision complained of. Nonetheless, such thirty-day period is
subject to the qualification that there are no other statutory periods
of appeal applicable. If there are special laws governing particular
cases which provide for a shorter or longer reglementary period, the
same shall prevail over the thirty-day period provided for in the
administrative order. This is in line with the rule in statutory
construction that an administrative rule or regulation, in order to be
valid, must not contradict but conform to the provisions of the
enabling law.
We note that indeed there are special laws that mandate a shorter
period of fifteen (15) days within which to appeal a case to public
respondent. First, Section 15 of Presidential Decree No. 957 provides
that the decisions of the National Housing Authority (NHA) shall
become final and executory after the lapse of fifteen (15) days from
the date of receipt of the decision. Second, Section 2 of Presidential
Decree No. 1344 states that decisions of the National Housing
Authority shall become final and executory after the lapse of fifteen
(15) days from the date of its receipt. The latter decree provides that
the decisions of NHA is appealable only to the Office of the
President. Further, we note that the regulatory functions of NHA
relating to housing and land development has been transferred to
Human Settlements Regulatory Commission, now known as HLURB.
Thus, said presidential issuances providing for a reglementary period
of appeal of fifteen days apply in this case.[10]
1 G.R. No. 170695, 2006 April 7
TRANSFER OF OWNERSHIP OR CHANGE OF NAME OF A SUBDIVISION
OR CONDOMINIUM
> A request for transfer of ownership and/or change of name may be
granted only if there is a deed of absolute sale over the subdivision
or condominium project sought to be transferred and/or the name
thereof changed with an undertaking on the part of the transferee to
assume full responsibility for the completion of the development
thereof
> Such request shall be published at the applicant’s expense in a
newspaper of general circulation within the city or municipality
where the project at least one a week for two consecutive weeks
JURISDICTION OF THE NATIONAL HOUSING AUTHORITY
> The scope of the regulatory authority of the National Housing
Authority is indicated in the second and third paragraph of the
preamble
o WHEREAS, subdivision owners, developers, operators, and/or
sellers have reneged on their representations and obligations to
provide and maintain properly subdivision roads, drainage,
sewerage, water systems, lighting systems, and other similar basic
requirements, thus endangering the health and safety of home and
lot buyers;
o WHEREAS, reports of alarming magnitude also show cases of
swindling and fraudulent manipulations perpetrated by
unscrupulous subdivision and condominium sellers and operators,
such as failure to deliver titles to the buyers or titles free from liens
and encumbrances, and to pay real estate taxes, and fraudulent sales
of the same subdivision lots to different innocent purchasers for
value;
> Presidential Decree 1344 was passed providing—
o The National Housing Authority shall have exclusive jurisdiction to
hear and decide cases of the following nature:
> Unsound real estate businesses
> Claims involving refund and any other claims filed by subdivision
lot or condominium unit buyer against the project owner, developer,
broker or salesman, and
> Cases involving specific performance of contractual and statutory
obligations filed by buyers of subdivision lot or condominium unit
against the owner, developer, dealer, broker or salesman.
o The decision of the National Housing Authority shall become final
and executory 15 days from the date of its receipt. It is appealable
only to the President of the Philippines and in the event the appeal is
filed and the decision isn’t reversed and/or amended within 30 days,
the decision is deemed affirmed. Proof of the appeal of the decision
must be furnished the National Housing Authority.
> On the issue of affirmance-by-inaction failure on the part of the
President to act upon an appeal doesn’t necessarily mean that the
appealed decision automatically becomes final and executory. Access
to the courts of law may still be made as mentioned above.
Therefore, such decision is far from being final and executory.
FUNCTIONS OF THE National Housing Authority NOW TRANSFERRED
TO THE Housing and Land Use Regulatory Board
> The regulatory functions of the NHA are now transferred to the
HLURB such as jurisdiction over unsound real estate businesses and
claims involving refund and any other claims filed by subdivision lot
or condominium unit buyer against the project owner, developer,
broker or salesman
> The functions of the Human Settlements Regulatory Commission—
sole regulatory body for housing and land development—are
transferred also to the HLURB
SPECIFIC FUNCTIONS OF THE Housing and Land Use Regulatory
Board
1. Unsound real estate businesses
2. Claims involving refund and any other claims filed by subdivision
lot or condominium unit buyer against the project owner, developer,
broker or salesman, and
3. Cases involving specific performance of contractual and statutory
obligations filed by buyers of subdivision lot or condominium unit
against the owner, developer, dealer, broker or salesman.
WRIT OF EXECUTION
> As soon as the decision of the Housing and Land Use Regulatory
Board becomes final, it shall, on motion of the interested party, issue
a writ of execution enforceable in accordance with the provisions of
the Rules of Court
> Upon the failure of the Housing and Land Use Regulatory Board to
act on the motion, a petition for mandamus may be filed to compel
it to perform its purely ministerial duty by enforcing its final and
executory decision
COURT HAS JURISDICTION WHEN ISSUE INVOLVES OWNERSHIP OF
PROPERTY
ORDINARY COURTS DON’T HAVE JURISDICTION OVER COLLECTION
OF UNPAID INSTALLMENTS
SUMMARY OF CASES OR INCIDENTS WHERE Housing and Land Use
Regulatory Board HAS JURISDICTION (FAJARDO V. BAUTISTA)
1. For a determination of the rights of the parties under a contract to
sell a subdivision lot
2. For the delivery of title against the subdivision owner
3. For the refund of reservation fees for the purchase of subdivision
lot
4. For specific performance filed by the lot buyer against the seller of
a subdivision lot
5. For the annulment of the mortgage constituted by the project
owner without the buyer’s consent, the mortgage foreclosure sale,
and the condominium certificate of title issued to the highest bidder
at the said foreclosure sale
6. For the collection of the balance of the unpaid purchase price of a
subdivision lot filed by the developer of a subdivision against the lot
buyer
7. For incidental claims for damages
WHEN A PERSON AUTOMATICALLY CEASES AS A STOCKHOLDER IN A
CONDOMINIUM CORPORATION
> Section 10—membership in a condominium corporation regardless
of whether it is stock or non-stock corporation, shall not be
transferable separately from the condominium unit of which it is an
appurtenance. When a member or a stockholder ceases to own a
unit in the project in which the condominium corporation owns or
holds the common area, he shall automatically cease to be a
member or stockholder of the condominium corporation.
THE OWNER OF A UNIT IS CONSIDERED A SHAREHOLDER IN THE
CONDOMINIUM CORPORATION
> Any transfer or conveyance of a unit or an apartment, office or
store or other space therein, shall include the transfer or conveyance
of the undivided interest in the common areas or in a proper case,
the membership or share holdings in the condominium corporation
> Not every purchaser of a condominium unit is a shareholder of the
condominium corporation. The Condominium Act leaves it to the
master deed the determination of when the shareholding will be
transferred to the purchaser of a unit
> The provisions of this Act shall apply to property divided or to be
divided into condominium only if there shall be recorded in the
Register of Deeds of the province or city in which the property lies,
and duly annotated in the corresponding certificate of title of the
land, xxx an enabling or master deed which shall contain, among
others, the following: xxx A statement of the exact nature of the
interest acquired or to be acquired by the purchased in the separate
units and the common areas of the condominium projects. Where
title to or to appurtenant interests in the common areas is to be held
by a condominium corporation, a statement to this effect shall be
included
> Inasmuch as ownership is conveyed only upon full payment of the
purchase price, it necessarily follows that a purchaser of a unit who
hasn’t paid the full purchase price is not the owner of the unit and
consequently is not a shareholder of the Condominium Corporation
Petitions Involving Certificate Of Title
1. There are 4 petitions—petition for surrender of title, petition for
correction, amendments, or alterations in the certificate of title,
petition for the issuance of new owner’s duplicate of title, petition
for reconstitution
2. Petition for the surrender of the owner’s duplicate of title—the
law speaks of two instances. The first one involves involuntary
transactions and the other one, voluntary transactions. In both
instances the procedure is to file a petition in the Regional Trial Court
for the owner to surrender the owner’s duplicate of title.
3. If the owner’s duplicate of title is lost, the law requires that notice
under oath be given to the RD. There should be a verified affidavit
that will serve as notice to the RD that the particular owner’s
duplicate is lost. This will prevent any transaction that may arise
from the loss of the owner’s duplicate. This particular petition would
prosper and the corresponding duplicate issued will be valid if the
owner’s duplicate is really lost. When the owner’s duplicate is still
existing upon filing of petition, the court doesn’t acquire jurisdiction
and the proceedings are null and void. The title is null and void and
thus, can be attacked collaterally.
4. Petition for reconstitution is filed when the certificate of title has
been lost or destroyed. This pertains to original and transfer
certificates of title as well as encumbrances and liens. Purpose is to
bring back to its original form and state. No addition nor reductions.
If it is found out that the certificate is not lost or
destroyed, court doesn’t attack jurisdiction and proceedings are null
and void.
5. There are two kinds of restitution—judicial and administrative.
Judicial is when you file a petition in court. Administrative is when
you file the petition with the RD. It is easier with the Register of
Deeds as you have to file it with the reconstituting officer of the
Register of Deeds only.
6. The court in entertaining petitions for reconstitution should be
careful and cautious. Section 12 and 13 are mandatory
requirements. Section 12 refers to the contents requirement as 13
refers to the publication requirements.
7. The reconstitution proceedings are proceedings in rem.
8. Section 2 and 3 of RA 26 will tell the different documents or
evidence that you can submit for a petition for reconstitution can
prosper. Sources found in the law are in a hierarchy of preference.
First and foremost in this list, may it be for the original or transfer
certificates of title is the owner’s duplicate of title.
9. The phrase “Any other document” will pertain to documents
similar to those previously enumerated. An example is a case
pertaining to an action for the recovery of possession. The court
decision contained the technical description of the land and whatnot
as would pertain to any other document that warrants
reconstitution.
10. Administrative reconstitution is warranted in cases where the
number of certificates lost is not less than 500 and the cause of the
loss or destruction is by fire, flood or any other force majeure. If you
pass these requirements, then administrative reconstitution is
allowed. If you are not satisfied, you can go to the LRA within 15 days
from the receipt of the decision. If not the LRA, file a petition for
review with the proper court or specifically, the RTC. This can be
done within 60 days from knowledge of decision but not later than 6
months from promulgation of decision.
11. The reconstituted title should be in the form and condition as the
original lost title.
12. All these petitions and motions should be filed with the same
registration case. This is specifically provided for in Section 108. You
will use the same case number wherein the title was issued.
DUTY OF REGISTER OF DEEDS TO REGISTER DOCUMENT PRESENTED
FOR REGISTRATION IS MINISTERIAL
MATTERS SHOULD BE LEFT TO THE COURTS FOR DETERMINATION
> The powers of the RD are generally regarded as ministerial only
and said officer has no power to pass upon the legality of an order
issued by a court of justice
> Whether the document presented for registration is invalid,
frivolous or intended to harass, is not the duty of the RD to decide
but a court of competent jurisdiction
> The question of whether or not a conveyance was made to defraud
creditors of the transferor should better be left for determination of
the proper court
REFERENCE OF DOUBTFUL QUESTIONS TO THE LRA VIA CONSULTA
APPEAL TO THE COURT OF APPEALS IS THE PROPER REMEDY
AVAILABLE TO A PARTY WHO DOESN’T AGREE WITH THE ACTION
TAKEN BY THE LRA ADMINISTRATOR
> This is specially governed by Rule 43 of the Rules of Court, which
provides for decisions, orders, resolutions of any quasi-judicial
agency, ilke the LRA, in the exercise of its quasi-judicial functions
> The appeal shall be taken within 15 days from notice of the
decision, order of resolution
> If no appeal is filed within said period, the decision, order or
resolution shall become final and may be executed as provided by
existing law.
REGISTRATION OF INSTRUMENTS DEALING WITH UNREGISTERED
LAND
> All instruments affecting lands originally registered under the
Spanish Mortgage Law may be recorded under Section 113 until the
land shall have been brought under the operation of the Torrens
system
RECORDING OF MINISTERIAL OFFICERS
> Opening paragraph in substance declares that no instrument or
deed affecting rights to real property not registered under the
Torrens system shall be valid except as between the persons thereto,
until such instrument or deed shall have been registered in the
manner prescribed therein
> This provision cannot be interpreted to include conveyances made
by ministerial officers, such as sheriff’s deeds
> It contemplates only instruments as may be created through
agreement between parties
RECORDING SHALL BE WITHOUT PREJUDICE TO A THIRD PERSON
WITH BETTER RIGHT RECORDING OF RD MINISTERIAL
> Register of Deeds doesn’t exercise a judicial or quasi-judicial power
in the registration of sheriff’s deeds or certificates of sale
> If the Register of Deeds refuses to register the instrument, he shall
advise the party in interest in writing of the grounds for his refusal,
and the latter may elevate the matter to the Administrator en
consulta
HOW RECORDING IS EFFECTED
> The Register of Deeds shall keep a primary entry book and a
registration book
> The primary entry book shall contain an entry number, names of
parties, nature of the document, and the date, hour and minute it
was presented
> The recording shall be effected by annotating on the registration
book after the same shall have been entered in the primary entry
book
> After recording, the Register of Deeds shall endorse on the original
of the instrument the file number and the date as well as the hour
and minute when the instrument is received, returning to the
registrant the duplicate of the instrument with a certification that he
has recorded the same
Land Registration Circular No. 35
COMPLIANCE WITH JURISDICTIONAL REQUIREMENTS IS
MANDATORY
> The court doesn’t acquire jurisdiction to hear the petition
> It is not enough that there is publication in the Official Gazette only
for there is a posting requirement also. Failure to comply will nullify
the proceedings.
RECONSTITUTION IMPROPER WHERE IS NO TITLE TO BE
RECONSTITUTED, OR WHERE THE ORIGINAL CERTIFICATE OF TITLE IN
FACT EXISTS
> Sections 18 and 19 of Republic Act 26
ACTION OF THE COURT; RECONSTITUTION; WHEN MANDATORY
> If the court, after hearing, finds that the documents presented, as
supported by parole evidence or otherwise, are sufficient, and
proper to warrant the reconstitution of the lost or destroyed
certificate of title, xxx an order for reconstitution shall be issued
> The clerk of court shall forward the order to the RD and all
documents which, pursuant to said order, are to be used as basis of
the reconstitution
> If the court finds that there is no sufficient evidence or basis to
justify the reconstitution, the petition will be dismissed without
prejudice to the right of the parties entitled thereto to file an
application for confirmation of title
> Sections 15-17 of RA26
THE REGISTER OF DEEDS IS NOT A PROPER PARTY TO FILE THE
PETITION
WRIT OF POSSESSION NOT PROPER IN A RECONSTITUTION
PROCEEDING
COURTS ARE CAUTIONED IN GRANTING PETITIONS FOR
RECONSTITUTION
ADMINISTRATIVE RECONSTITUTION
> Can only be availed of in case of substantial loss or destruction of
land titles due to flood, fire or other force majeure as determined by
the Administrator
> Provided that the titles lost or damages should at least be 10% of
the total number in the possession of the office of the RD
> That in no case that the number of certificates of titles lost or
damaged be less than 500
> Notice of all hearings of the petition for judicial reconstitution shall
be furnished the Register of Deeds of the place where the land is
situated and to the Administrator of the Land Registration Authority
> No judgment ordering the reconstitution shall be final until the
lapse of 15 days from receipt by the RD and by the Administrator of
the LRA of the notice of order or judgment without any appeal
having been filed by any such officials
DUTY OF LAND REGISTRATION AUTHORITY TO PREPARE INVENTORY
SOURCES OF RECONSTITUTION; CONTENTS OF PETITION
> Same sources as those enumerated in Republic Act 26
> Accompanied by an affidavit stating, among other things
o That no deed or other instrument affecting the property had been
presented for registration, or if there be any, the names thereof, the
date of its presentation, as well as the names of the parties, whether
the registration of said deed or instrument is still pending
accomplishment
o That the owner’s duplicate is not the subject of litigation or
investigation, administrative or judicial, regarding the genuineness or
due execution and issuance
o That the owner’s duplicate certificate or co-owner’s duplicate is in
due form without any apparent intentional alterations or erasures
o That the certificate was in full force and effect at the time it was
lost or destroyed
o That the certificate was covered by a tax declaration regularly
issued by the Assessor’s office
o That real estate taxes have been fully paid up to at least 2 years
prior to the filing of the petition for reconstitution
ACTION ON THE PETITION
> All reconstituted titles shall be reproduced by the LRA in at least 3
image copies or in whatever means by which the original can be
reproduced, one copy to be kept by the LRA, the second copy to be
kept by the National Library Archives Division, and the third copy to
be secured in a government fire-proof vault, preferably in the
Security Printing Plant of the Central Bank
> Such image copy of the original copy of the reconstituted title shall
be considered after due authentication by the LRA, through the RD
in the province or city where the land is located
> After reconstitution, said owner’s duplicate or co-owner’s duplicate
exhibited as basis for the reconstitution shall be surrendered to the
RD and a new certificate of title issued in lieu thereof, the original of
which shall be kept by the RD and the owner’s duplicate delivered to
the registered owner.
FUNCTION OF THE Land Registration Authority TO REVIEW AND
ADJUDICATE
> LRA has jurisdiction to act on petitions for administrative
reconstitution
> It has the power to review, revise, reverse, modify or affirm on
appeal the decision of the reconstituting officer
> Function is adjudicatory in nature—it can properly deliberate on
the validity of the titles subject of the reconstitution
REMEDY OF AGGRIEVED PARTY
> A reconstituted title obtained by means of fraud, deceit or other
machination is void ab initio as against the party obtaining the same
and all persons having knowledge thereof
> There are two remedies available—
o PETITION FOR REVIEW on the ground of fraud, accident, mistake,
or excusable negligence filed with the proper court
o APPEAL FROM THE ORDER OF RECONSTITUTION to the LRA
administrator
JUDICIAL RECONSTITUTION UNDER REPUBLIC ACT 26
> Republic Act 26: An Act Providing a Special Procedure For The
Reconstitution of Torrens Certificate of Titles Lost or Destroyed
> Reconstitution of title is an action in rem
> A judicially reconstituted title has the same validity and legal effect
as the original thereof, and isn’t subject to the reservation that it
shall be without prejudice to any party whose right or interest in the
property was duly noted in the original at the time of loss or
destruction but which entry or notation hasn’t been
made on the reconstituted title
> The limitation that reconstitution of title should be limited to the
certificate as it stood at the time of its loss or destruction has
reference only to changes which alter or affect title of the registered
owner and not to mere liens and other encumbrances
RECONSTITUTION DENOTES RESTORATION OF THE LOST TITLE IN ITS
ORIGINAL FORM AND CONDITION
> Purpose is to have it reproduced, after observing the procedure
prescribed by law in the same form they where when the loss or
destruction occurred
> The fact that the title to the land was lost doesn’t mean that the
lot ceased to be a registered land before the reconstitution of its title
> As the subject land didn’t cease to be titled, it cannot be acquired
by acquisitive prescription
> Reconstitution is proper only when it is satisfactorily shown that
the title sought to be reconstituted is lost or no longer available
> Where the petition for reconstitution wasn’t to restore a lost
registered certificate of title but to re-register and issue a new
certificate in the names of petitioner and her deceased husband, in
lieu of one originally registered in the names of other persons, the
petition should be denied without prejudice to the right of the
parties to take the necessary action under Section 51 and 53 of
PD1529
> Republic Act 26 provides for special procedure for the
reconstitution of torrens certificate of title that are missing and not
fictitious titles which are existing. Where a certificate of title over a
parcel of land was reconstituted judicially and later it was found that
there existed a previous certificate of title covering the same land in
the name of another person, the court ruled that the existence of
the prior title ipso facto nullified the reconstitution proceedings
SOURCES OF RECONSTITUTION ORIGINAL CERTIFICATES OF TITLE
1. The owner’s duplicate certificate of title
2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of
title
3. A certified copy of the certificate of title, previously issued by the
RD or by a legal custodian thereof
4. An authenticated copy of the decree of registration or patent, as
the case may be, pursuant to which the original certificate of title
was issued
5. A document, on file with the RD, by which the property, the
description of which is given in said document, is mortgaged, leased,
or encumbered, or an authenticated copy of said document showing
that its original has been registered
6. Any other document which, in the judgment of the court is
sufficient and proper basis for reconstituting the lost or destroyed
certificate of title
FOR TRANSFER CERTIFICATE OF TITLE
1. The owner’s duplicate certificate of title
2. The co-owner’s, mortgagee’s, or lessee’s duplicate certificate of
title
3. A certified copy of the certificate of title, previously issued by the
RD or by a legal custodian thereof
4. The deed of transfer or other document, on file in the RD,
containing a description of the property, or an authenticated copy
thereof, showing that its original had been registered, and pursuant
to which the lost or destroyed transfer certificate of title was issued
5. A document, on file with the RD, by which the property, the
description of which is given in said document, is mortgaged, leased,
or encumbered, or an authenticated copy of said document showing
that its original has been registered
6. Any other document which, in the judgment of the court is
sufficient and proper basis for reconstituting the lost or destroyed
certificate of title
FOR LIENS AND ENCUMBRANCES
1. Annotations or memoranda appearing on the owner’s co-owner’s
mortgagee’s or lessee’s duplicate
2. Registered documents on file in the RD, or authenticated copies
thereof showing that the originals thereof had been registered
3. Any other document which, in the judgment of the court is
sufficient and proper basis for reconstituting the liens or
encumbrances affecting the property covered by the lost or
destroyed certificate of title
MEANING OF “ANY OTHER DOCUMENT”
> As per LRC circular #35, the signed duplicate copy of the petition to
be forwarded to this Commission shall be accompanied by the
following:
o A duly prepared plan of said parcel of land in tracing cloth, with 2
print copies thereof, prepared by the government agency which
issued the certified technical
description, or by a duly licensed Geodetic Engineer who shall certify
thereon that he prepared the same on the basis of a duly certified
technical description. Where the plan as submitted is certified by the
government agency which issued the same, it is sufficient that the
technical description be prepared by a duly licensed Geodetic
Engineer on the basis of said certified plan.
o The original, 2 duplicate copies, and a Xerox copy of the original of
the technical description of the parcel of land covered by the
certificate of title, duly certified by the authorized officer of the
Bureau of Lands or the LRC who issued the technical description
o A signed copy of the certification of the RD concerned that the
original of the certificate on title on file with the RD was either lost
or destroyed, indicating the name of the registered owner, if known
from the other records in file in said office.
WHERE TO FILE PETITION; CONTENTS
> Shall be filed by the registered owner, his assigns, or any person
having interest in the property with the proper RTC where the same
is based on sources enumerated earlier
> Contents shall be as followed—
1. That the owner’s duplicate had been lost or destroyed
2. That no co-owner’s, mortgagee’s, lessee’s, duplicate had been
issued or, if any had been issued, the same had been lost or
destroyed
3. The location, area and boundaries of the property
4. The nature and description of the buildings or improvements, if
any, which don’t belong to the owner of the land, and the names
and addresses of the owners of such buildings or improvements
5. The names and addresses of the occupants or persons in
possession of the property, of the owners of the adjoining properties
and all persons who may have any interest in the property
6. A detailed description of the encumbrances if any, affecting the
property
7. A statement that no deeds or other instruments affecting the
property have been presented for registration, or if there be any, the
registration thereof hasn’t been accomplished, as yet
REQUIREMENTS OF NOTICE BY PUBLICATION, POSTING AND
MAILING
1. To be published twice, at the expense of the petitioner, in
successive issues of the Official Gazette
2. To be posted on the main entrance of the provincial building and
of the municipal building of the municipality or city in which the land
is situated
3. Copy of the notice to be sent by registered mail or otherwise, at
the expense of the petitioner, to every person named therein whose
address is known, within 30 days prior the date of hearing
> The jurisdiction of the court is hedged in the forewalls of the
petition and the published notice of hearing which define the
subject matter of the petition.
SECTION 109 OF THE LAND REGISTRATION ACT GOVERNS
REPLACEMENT OF LOST DUPLICATE CERTIFICATE
> Section 109 is the applicable law in petitions for the issuance of
new owner’s duplicate certificate which are lost or stolen or
destroyed
> RA 26 applies only in cases of reconstitution of lost or destroyed
original certificates of title on file with the RD
> The requirements for the replacement of a lost duplicate certificate
are:
1. The registered owner or other person in interest shall send notice
of the loss or destruction of the owner’s duplicate certificate of title
to the RD of the province or city where the land lies as soon as the
loss or destruction is discovered
2. The corresponding petition for the replacement of the loss or
destroyed owner’s duplicate certificate shall then be filed in court
and entitled in the original case in which the decree of registration
was entered
3. The petition shall state under oath the facts and circumstances
surrounding such loss or destruction
4. The court may set the petition for hearing, after due notice to the
RD and other interested parties as shown in the memorandum of
encumbrances noted in the Original Certificate of Title or Transfer
Certificate of Title on file in the office of the Register of Deeds
5. After due notice and hearing, the court may direct the issuance of
a new duplicate certificate which shall contain a memorandum of
the fact that it is issued in place of the lost or destroyed certificate
and shall in all respects be entitled to the same faith and credit as
the original duplicate
PETITION, WHERE FILED
> A petition for replacement shall be filed with the RTC of the place
where the land lies and this is true even if the title was issued
pursuant to a public land patent registered in accordance with
Section 103 of this decree
NO TIME LIMIT TO FILE PETITION TO ANNOTATE A DEED OF SALE
> No limitation or period is fixed for filing a petition to annotate a
deed of sale at the back of a certificate of title
> If any person claims that a person registered a deed of sale can no
longer do so, because the deed was executed more than 10 years
before, such objection must be raised in an ordinary civil action
> Where there is no question as to the existence and validity of the
deed of sale, the registration of the sale and issuance of a Transfer
Certificate of Title are ministerial duties of the RD
NO ALTERATION OR AMENDMENT OF DECREE OF REGISTRATION IS
PERMITTED EXCEPT UPON ORDER OF THE COURT
> Otherwise, a decree of registration cannot be permanent if, for
instance, the limits of the land therein registered may be changed or
the amount of land so registered altered by a subsequent
adjudication of said court based upon new evidence tending to show
that the evidence introduced on the former hearing was
incorrect
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COURT MAY NOW HEAR BOTH CONTENTIOUS AND
NONCONTENTIOUS CASES
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RULE UNDER SECTION 108, IN RELATION TO SECTION 2 PD1529:
COURT MAY NOW HEAR BOTH CONTENTIOUS AND
NONCONTENTIOUS CASES
> Section 2 of PD1529 has eliminated the distinction between
general jurisdiction vested in the RTC and the limited jurisdiction
conferred upon it by the former law when acting merely as a
cadastral court—this is aimed at avoiding the multiplicity of suits,
the change has simplified registration proceedings by conferring
upon the RTC the authority to act not only on applications for
original registration but also over all petitions filed after original
registration of title, with power to hear and determine all questions
arising upon such applications or petitions.
> The rule that the RTC, sitting as a land registration court, has
limited jurisdiction and has no authority to resolve controversial
issues, no longer holds
PROCEEDINGS UNDER SECTION 112 OF THE LAND REGISTRATION
ACT ARE SUMMARY IN NATURE
> Case law stressed the summary character of the proceedings for
the amendment or alterations of the certificates of title
> Proceedings under Section 112 are summary in nature and relief
can only be granted if there is unanimity among the parties, or there
is no adverse claim or serious objection on the part of any party in
interest; otherwise, the case becomes contentious and controversial
which should be threshed out in an ordinary action or in any case
where the incident properly belongs (Fojas v. Grey)
> Any registered owner of land or other party in interest may, on
certain grounds, apply by petition to the cadastral court for a new
certificate or entry or cancellation or memorandum thereon, but
such relief can only be granted if there is no adverse claim or serious
objection on the part of any party in interest; otherwise, the case
becomes controversial and should be threshed out in an ordinary
case or in the case where the incident properly belongs (Abella v.
Rodriguez)
> Although exceptions are admitted in rare cases, these are not
based alone on the fact that land registration courts are likewise the
same CFI but also on the following premises—
o Mutual consent of the parties or their acquiescence in submitting
the issues for determination by the court in the registration
proceedings
o Full opportunity to the parties in the presentation of their
respective sides of the issues and evidence in support thereto
o Consideration by the court that the evidence already of record is
sufficient and adequate for rendering a decision upon those issues
WHEN TO FILE PETITION FOR AMENDMENT OR ALTERATION OF
CERTIFICATE
1. Whether vested, contingent, expectant or inchoate appearing on
the certificate, have terminated and ceased; or
2. That new interest not appearing upon the certificate have arisen
or been created; or
3. That an omission or error was made in entering a certificate or any
memorandum thereon, or, on any duplicate certificate; or
4. That the same or any person on the certificate has been changed;
or
5. That the registered owner has married, or,
6. If registered as married, that the marriage has been terminated
and no right or interests of heirs or creditors will thereby be affected;
or
7. That a corporation which owned registered land and has been
dissolved has not convened the same within three years after its
dissolution; or upon any other reasonable ground;
WHERE TO FILE PETITIONS OR MOTIONS AFTER ORIGINAL
REGISTRATION
> All petitions or motions after original registration shall be filed and
entitled in the original case in which the decree of registration was
entered
> This provision doesn’t require that it be under oath
> Provision was adopted with an intelligent purpose in view—to
allow such petitions and motions to be filed and disposed of
elsewhere would eventually lead to confusion and render it difficult
to trace the origin of the entries in the registry
AUTHORITY OF COURT TO ORDER THE SURRENDER OF OWNER’S
DUPLICATE CERTIFICATE
> In order that the court may order the registered owner to
surrender his owner’s duplicate, it has to determine upon the
evidence presented by the parties whether the registered owner had
been lawfully divested of his title thereto
> That of course requires and involves of the determination of the
question of title to the registered property

> Section 107 doesn’t constitute a reopening of the decree entered
as a result of proceedings in rem for the confirmation of imperfect
title under said act, it cannot be deemed to contravene the purpose
or aim of the Torrens system.
PETITION TO SURRENDER TITLE MAY BE FILED AS AN INCIDENT IN AN
ACTION AFFECTING SAID TITLE
> Where the court in an action for specific performance, upheld the
sale to the plaintiff and ordered the defendant to comply with the
terms and conditions to the sale, it was proper for the plaintiff to ask
the court to compel the defendant to surrender the duplicate
certificate of title to the RD for the registration of the sale, this being
a necessary incident in the main case
> Section 107 doesn’t preclude a party to a pending case to include
as incident therein the relief stated under said section, specially if
the certificate of title to be surrendered is intimately connected with
the subject matter of the principal action
> Where the title is subject to a mortgage, the order of the court
cannot in any way prejudice the rights of the mortgagee since any
lien annotated in the certificate is incorporated or carried over to the
new transfer certificate of title to whoever it is issued
REMEDY WHERE DUPLICATE CERTIFICATE IS WITHHELD
> In case the person in possession of the owner’s duplicate
certificate refuses or fails to surrender the same to the RD so that
any involuntary or voluntary instrument may be registered and a
certificate issued, the party in interest may file a petition in court to
compel the surrender of the same to the RD
> The court after hearing may order the registered owner or any
person withholding the duplicate certificate and direct the entry of a
new certificate or memorandum upon such surrender
> If the person withholding the certificate is not amenable to the
process of the court, or if for any reason the certificate cannot be
delivered, the court may order the annulment of said certificate and
the issuance of a new certificate of title in lieu thereof
> Such new certificate and all duplicates thereof shall contain a
memorandum of the annulment of the outstanding duplicate
MODES OF ACQUISITION OF AGRICULTURAL LAND
1. Operation land transfer—mechanism established for the
implementation of PD27
2. Voluntary offer to sell—scheme whereby the landowners
voluntarily offer their agricultural lands for coverage regardless of
phasing
3. Voluntary land transfer/direct payment scheme—landowner and
the beneficiary enter into a voluntary agreement for the direct
transfer of lands to the latter
4. Compulsory acquisition—whereby the land is expropriated by the
State (Section 16 of RA 6657)
5. Voluntary stock distribution in the case of corporate farms –
alternative arrangement for the physical distribution of lands
wherein corporate owners voluntarily divest a portion of their capital
stock, equity or participation in favor of their workers or other
qualified beneficiaries
ACQUISITION OF PRIVATE AGRICULTURAL LANDS; PAYMENT OF JUST
COMPENSATION
1. The land must be privately-owned and found suitable for
agriculture
2. There are beneficiaries willing to take over the ownership of the
land and make it more productive
3. The landowner is paid just compensation or deposit cash or LBP
bonds is made in his name if the value is contested
4. Title to the land is transferred in the name of the RP
DISTURBANCE COMPENSATION (following RA 3844)
> Notwithstanding any agreement as to the period or future
surrender, of the land, an agricultural lessee shall continue in the
enjoyment and possession of his landholding except when his
dispossession has been authorized by the Court in a judgment that is
final and executory if after due hearing it is shown that—
1. The agricultural lessor-owner or a member of his immediate
family will personally cultivate the landholding or will convert the
landholding, if suitably located, into residential, factory, hospital or
school site or other useful non-agricultural purposes: Provided; That
the agricultural lessee shall be entitled to disturbance compensation
equivalent to five years rental on his landholding in addition to his
rights under Sections twenty-five and thirty-four, x x x
> The state is not liable for disturbance compensation
EXTINGUISHMENT OF AGRICULTURAL LEASEHOLD RELATIONS
1. Abandonment of landholding without the knowledge of the
agricultural owner
2. Voluntary surrender of the landholding by the agricultural lessee,
written notice of which shall be served 3 months in advance
3. Absence of the persons to succeed to the lessee, in the event of
death or permanent incapacity of the lessee
AGRICULTURAL TENANCY
> The physical possession by a person of land devoted to agriculture,
belonging to, or legally possessed by, another for the purpose of
production through the labor of the former, and of the members of
his immediate farm household, is consideration of which the former
agrees to share the harvest with the latter, or to
pay a price certain or ascertainable, either in produce or in money,
or both
REQUISITES OF AGRICULTURAL TENANCY
1. Parties are the landowner and the tenant
2. The subject is the agricultural land
3. There is consent
4. The purpose is agricultural production
5. There is personal conviction
6. There is sharing of harvests
DISTINCTIVE FEATURES OF PD27 AND RA6657, EXEMPTION
DISTINGUISHED FROM RETENTION
> PD27 implemented the Operation Land Transfer Program—covers
tenanted rice and corn lands
> The requisites for coverage under the Operation Land Transfer
program are the following—
o The land must be devoted to rice or corn crops
o There must be a system of share-crop or lease-tenancy
obtaining therein
> If either is absent, the landowner may apply for exemption
> PD27 grants each tenant of covered lands a 5 hectare lot, or in case
the lot is irrigated, 3 hectares constituting the family size farm.
However, said law allows a covered landowner to retain not more
than 7 hectares of his land if his aggregate landholding doesn’t
exceed 24 hectares
> Consequently, a landowner may keep his whole covered land if its
aggregate size doesn’t exceed the retention limit of 7 hectares
> An application for exemption is different from that of retention.
They are distinct remedies and thus, judgment in one doesn’t
preclude the subsequent institution of the other
> The right to retention is a constitutionally guaranteed right which is
subject to the qualifications by the legislature
> Landowners who haven’t exercised their retention rights under
PD27 may exercise their retention rights under RA 6657
> The right to retention may be exercised over tenanted land despite
the issuance of the certificate of land transfer to farmerbeneficiaries.
What must be protected, however, is the right of the tenants to opt
to stay on the land chosen to be retained by the landowner or be a
beneficiary in another agricultural land with similar or comparable
features
> Land awards made pursuant to a government’s agrarian reform
program are subject to the exercise of the landowner who is
qualified to the right of retention
> The issuance of emancipation patents or certificates of land
transfers doesn’t absolutely bar the landowner from retaining the
area covered thereby
WAIVER OF RIGHT OF RETENTION
1. Executing an affidavit or any other document duly attested by the
MARO, Provincial Agrarian Reform Officer, or Regional Director,
indicating that he is expressly waiving his right of retention
2. Signing of the landowner-tenant production agreement and
farmer’s undertaking or application for purchase and farmer’s
undertaking, covering subject property
3. Entering into a voluntary land transfer/direct payment scheme
agreement
4. Offering the subject landholding under VOS scheme and failure to
indicate his retained area
5. Signing or submission of other documents indicating consent to
have the entire property covered, such as the form letter of the LBP
on the disposition of the case and bond portions of a land transfer
claim for payment, and the Deed of Assignment, warranties and
undertaking and undertaking executed in favor of the LBP
6. Performing acts which constitute estoppel by laches
7. Doing such act or acts as would amount to a valid waiver in
accordance with applicable laws and jurisprudence
ONLY AGRICULTURAL LANDS ARE SUBJECT TO THE AGRARIAN
REFORM COVERAGE
AGRICULTURAL LAND
> Refers to land devoted to agricultural activity as defined in this Act
and not classified as mineral, forest, residential, commercial or
industrial land.
AGRICULTURAL ACTIVITY
> Means the cultivation of the soil, planting of crops, growing of fruit
trees, including the harvesting of such farm products, and other farm
activities and practices performed by a farmer in conjunction with
such farming operations done by persons whether natural of
juridical.
WHAT ARE EXCLUDED?
1. Lands converted to non-agricultural use before the effectivity of
CARL are outside the coverage
2. Farms used for livestock, poultry and swine not covered
3. Agricultural lands reclassified by LGUs into residential,
commercial, or industrial uses excluded
4. Lands used for academic or educational purposes exempted
5. Homesteads are excluded
JURISDICTION OF DAR
> Matters involving the administrative implementation of the
transfer of the land, such as the giving out of notices of coverage to
the tenant-farmer under PD27 and amendatory and related decrees,
rules and regulations, shall be exclusively cognizable by the Secretary
of Agrarian Reform, including the issuance, recall, or cancellation of
emancipation patents or certificates of land ownership award, save
when such certificates of land transfer have been registered with the
RD, in which instance the recalling authority would be the DARAB
DEEMED TO BE THE OWNER—AS DEFINED IN PD 27
> Grantee of a certificate of land transfer must be construed within
the policy framework of PD 27 and interpreted with other
stipulations of the certificate issued pursuant to the Decree
> PD27 was anchored upon the fundamental objective of addressing
valid and legitimate grievances of land ownership giving rise to
violent conflict and social tension in the countryside
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SCOPE OF THE COMPREHENSIVE AGRARIAN REFORM LAW OR
REPUBLIC ACT 6657
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SCOPE OF THE COMPREHENSIVE AGRARIAN REFORM LAW OR
REPUBLIC ACT 6657
> Agrarian Reform means the redistribution of lands, regardless of
crops or fruits produced, to farmers and regular farm workers who
are landless, irrespective of tenurial arrangement, to include the
totality of factors and support services designed to lift the economic
status of the beneficiaries and all other arrangements alternative to
the physical redistribution of lands, such as production or profit-
sharing, labor administration, and the distribution of shares of stock,
which will allow beneficiaries to receive a just share of the fruits of
the lands they work.
EXEMPTIONS AND EXCLUSIONS
1. Lands actually, directly and exclusively used for parks, wildlife,
forest reserves, reforestation, fish sunctuaries and breeding grounds,
watersheds and mangroves shall be exempt from the coverage of
this Act.
2. Private lands actually, directly and exclusively used for prawn
farms and fishponds shall be exempt from the coverage of this Act:
Provided, That said prawn farms and fishponds have not been
distributed and Certificate of Land Ownership Award (CLOA) issued
to Agrarian Reform Program. In cases where the fishponds or prawn
farms have been subjected to the Comprehensive Agrarian Reform
Law, by voluntary offer to sell, or commercial farms deferment or
notices of compulsory acquisition , a simple and absolute majority of
the actual regular workers or tenants must consent to the exemption
within one (1) year from the effectivity of this Act. When the workers
or tenants do not agree to this exemption, the fishponds or prawn
farms shall be distributed collectively to the worker-beneficiaries or
tenants who shall from cooperative or association to manage the
same.
In cases where the fishponds or prawn farms have not been
subjected to the Comprehensive Agrarian Reform Law, the consent
of the farm workers shall no longer be necessary; however, the
provision of Section 32-A hereof on incentives shall apply.
3. Lands actually, directly and exclusively used and found to be
necessary for national defense, school sites and campuses, including
experimental farm stations operated by public or private schools for
educational purposes, seeds and seedlings research and pilot
production center, church sites and convents
appurtenant thereto, mosque sites and Islamic centers appurtenant
thereto, communal burial grounds and cemeteries, penal colonies
and penal farms actually worked by the inmates, government and
private research and quarantine centers and all lands with eighteen
percent (18%) slope and over, except those already developed, shall
be exempt from the coverage of this Act. (As amended by R.A 7881)
Presidential Decree 27 LAID DOWN A SYSTEM FOR THE PURCHASE BY
SMALL FARMERS OF THE LANDS THEY WERE TILLING
> Presidential Decree 27 was anchored upon the fundamental
objective of addressing valid and legitimate grievances of land
ownership giving rise to violent conflict and social tension in the
countryside
> Recognized the necessity to encourage a more productive
agricultural base to the country’s economy
> The certificate of land transfer under Presidential Decree 27
provides that the tenant farmer is deemed to be the owner of the
agricultural land subject to the conditions that the cost of the
portion transferred to him, including the interest, shall be paid in 15
equal annual amortizations, and that he must be a member of a
barrio association upon organization of such association in his
legality
RA 6657 OR COMPREHENSIVE AGRARIAN REFORM LAW OF 1988
> Agrarian reform program is founded on the right of farmers and
regular farm workers, who are landless, to own directly or
collectively the lands they till, or in case of other farm workers, to
receive a just share on the fruits thereof
> To this end, the State shall encourage and undertake the just
distribution of all agricultural lands, subject to the priorities and
retention limits set forth in the law, taking into account ecological,
developmental, and equity considerations and subject to the
payment of just compensation
> The State shall respect the right of small landowners, and shall
provide for voluntary land-sharing
AGRARIAN REFORM PROVISION IN THE 1987 CONSTITUTION
> Article 13, Section 4. The State shall, by law, undertake an agrarian
reform program founded on the right of farmers and regular farm
workers who are landless, to own directly or collectively the lands
they till or, in the case of other farm workers, to receive a just share
of the fruits thereof. To this end, the State
shall encourage and undertake the just distribution of all agricultural
lands, subject to such priorities and reasonable retention limits as
the Congress may prescribe, taking into account ecological,
developmental, or equity considerations, and subject to the payment
of just compensation. In determining retention limits, the State shall
respect the right of small landowners. The State shall further provide
incentives for voluntary land-sharing
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EFFECT OF VOID CONVEYANCE
> Where the parties to a sale of a portion of the public domain
covered by homestead patent have been proven to be guilty of
having effected the transaction with knowledge of the cause of its
invalidity, the sale is null and void and shall cause the reversion of
the property to the State
RULE OF PARI DELICTO NOT APPLICABLE
> The principle of in pari delicto is not applicable to cases when its
application would run counter to the an avowed public fundamental
policy or to public interest
> Whether as a result of the void sale the land reverted to the State
is a point between the State and the grantee of the homestead and
his heirs. In any event, the plaintiff’s right to the possession and use
of the property can hardly be disputed while the government
doesn’t take steps to assert its title to the
homestead.
> Reversion isn’t automatic. As long as the government has not
chosen to act, the rights of the patentee stand and must be
recognized in the courts of law.
REPURCHASE OF LAND BY APPLICANT OR HIS HEIRS
> Sanctioned by Section 119 of the Public Land Act
> The right to repurchase attaches to every alienation and
encumbrance, and that right can be exercised even in the absence of
any stipulation in the deed of sale
> To give the homesteader or patentee every chance to preserve for
himself and his family the land that the state had gratuitously given
to him as a reward for his labor in cleaning and cultivating it
> The five-year period starts from the date of execution of the deed
of sale, and not from the date of registration in the office of the
Register of Deeds. This is true even if the full payment of the
purchase price is not made on the date of conveyance unless there is
stipulation to the contrary.
A HOMESTEAD IS EXEMPT FROM CARP COVERAGE RULE WHEN
HOMESTEAD IS SUBJECT OF MORTGAGE
> The five-year period begins from the date when the deed of
absolute sale is executed and the property is formally transferred to
the purchaser
REPURCHASE MAY BE BARRED BY LACHES
PROHIBITION AGAINST ALIENATION OF LANDS ACQUIRED UNDER
THE HOMESTEAD AND FREE PATENT PROVISIONS
> Section 116. Except in favor of the Government or any of its
branches, units or institutions, or legally constituted banking
corporations, lands acquired under the free patent or homestead
provisions shall not be subject to encumbrance or alienation from
the date of the approval of the application and for a term of five
years from and after the date of issuance of the patent or grant, nor
shall they become liable to the satisfaction of any debt contracted
prior to the expiration of said period; but the improvements or crops
on the land may be mortgaged or pledged to qualified persons,
associations, or corporations. (As amended by section 23 of Act No.
3517).
> Section 119. Except with the consent of the grantee and the
approval of the Secretary of Agriculture and Natural Resources, and
solely for commercial, industrial, educational, religious or charitable
purposes or for a right of way, no corporation, association, or
partnership, may acquire or have any right, title,
interest, or property right whatsoever to any land granted under the
free patent, homestead or individual sale provisions of this Act or to
any permanent improvement on such land. (As amended by section
24 of Act. No. 3517).
> Section 120. No land originally acquired in any manner under the
provisions of this Act, nor any permanent improvement on such
land, shall be encumbered, alienated, or transferred, except to
persons, corporations, associations, or partnerships who may
acquire lands of the public domain under this Act; to corporations
organized in the Philippine Islands authorized therefor by their
charters, and upon express authorization by the Philippine
Legislature, to citizens of countries the laws of which grant to citizens
of the Philippine Islands the same right to acquire, hold, lease,
encumber, dispose of, or alienate land, or permanent improvements
thereon, or any interest therein, as to their own citizens, only in the
manner and to the extent specified in such laws, and while the same
are in force, but not thereafter.
> Section 122. Any acquisition, conveyance, alienation, transfer, or
other contract made or executed in violation of any of the provisions
of sections one hundred and sixteen, one hundred and eighteen, one
hundred nineteen, one hundred and twenty, and one hundred and
twenty-one of this act shall be unlawful and null and void from its
execution and shall produce the effect of annulling and canceling the
grant, title, patent, or permit originally issued, recognized, or
confirmed, actually or presumptively, and cause the reversion of the
property and its improvements to the Government.
> Section 122(A). The provisions of sections twenty three, twenty
four, thirty four, fifty seven, one hundred and twenty, and one
hundred and twenty-one of this Act, and any other provisions or
provisions restricting or tending to restrict the right of persons,
corporations, or associations to acquire, hold, lease, encumber,
dispose of, or alienate land in the Philippines, or permanent
improvements thereon, or any interest therein, shall not be applied
in cases in which the right to acquire, hold or dispose of such land,
permanent improvements thereon or interests therein in the
Philippine Islands is recognized by existing treaties in favor of citizens
or subjects of foreign nations and corporations or associations
organized and constituted by the same, which right in so far as it
exists under such treatise, shall continue and subsist in the manner
and to the extent stipulated in said treaties, and only while these are
in force, but not thereafter.
PROHIBITION STARTS FROM DATE OF APPROVAL UP TO 5TH YEAR
FROM ISSUANCE OF PATENT
POLICY OF THE LAW
> To conserve the land which a grantee has acquired under the
Public Land Act for him and his heirs
> To give the patentee a place where to live with his family so he may
become a happy citizen and useful member of the society
APPROVAL OF SECRETARY MERELY DIRECTORY
> Its absence doesn’t invalidate any alienation, transfer or
conveyance of the homestead after 5 years and before the 25- year
period
COURTS HAVE JURISDICTION OVER POSSESSORY ACTIONS
INVOLVING PUBLIC LANDS
> Even pending the investigation of, and resolution on, an application
by a bona fide occupant, by the priority of his application and record
of his duty, he acquires a right to the possession of the public land he
applied for against any other public land applicant, which right may
be protected by the possessory action of forcible entry or by any
other suitable remedy that our rules provide
> The grant of power and duty to alienate and dispose of the land
doesn’t divest the courts of their duty or power to take cognizance
of actions instituted by settlers or occupants or applicants against
others to protect their respective possessions and occupations, more
especially the actions of trespass, forcible entry and unlawful
detainer
GOVERNMENT MAY INITIATE ACTION FOR CANCELLATION OF TITLE
AND REVERSION
> Section 101 of Public Land Act provides for a remedy whereby
lands of the public domain fraudulently awarded to the applicant
may be recovered or reverted back to its original owner, the
government
> Office of Solicitor General shall represent the government in all
land registration and related proceedings and institute actions for
the reversion to the government of lands of the public domain and
improvements thereon as well as lands held in violation of the
Constitution

> It is improper for the government to file an action for reversion of

land titled to defendant pursuant to a free patent where the alleged
fraud consists in the fact that said land, at the time of issuance of the
free patent was no longer a part of the public domain, having been
adjudicated as private property of another person in a previous
registration case

> An action for reversion on the ground that defendant obtained

patent through fraud would also fail where the land had successively
been sold by the heirs of the patentee to third parties who are
holding Torrens titles and enjoying the presumption of good faith

> Private parties cannot challenge the validity of the patent and title
when they are not registered owners thereof nor had they been
declared the owners as owners in the cadastral proceedings—
whether the grant was in conformity with the law or not is a
question which the government may raise, but until it is raised by
the government and set aside, the defendant cannot question it. The
legality of the grant is a question between the grantee and the
government.

PRIVATE PARTY CANNOT BRING ACTION FOR REVERSION

> If there has been any fraud or misrepresentation in obtaining the
title, an action for reversion instituted by the Solicitor General would
be the proper remedy

ACTION FOR REVERSION NOT BARRED BY PRESCRIPTION

> Statute of limitations doesn’t run against the State

ACTION FOR CANCELLATION OF TITLE

> Proper when a private party claims ownership of the land as
private property by virtue of a long period of possession and hence,
no longer deemed a part of the public domain which could be
disposed of under the provisions of the Public Land Act, or when the
land is already covered by a previously issued certificate of title

DIRECTOR OF LANDS HAS CONTINUING AUTHORITY TO INVESTIGATE

FRAUDULENT ISSUANCE OF PATENTS
> It is not only the right but also the duty of the Director of Lands to
conduct the investigation of any alleged fraud in securing the free
patent and the corresponding title to a public land and to file the
corresponding court action for the reversion of the same to the
State, if the facts disclosed in the course of such investigation should
so warrant

> The indefeasibility of title over land previously public is not a bar to
an investigation by the Director of Lands as to how such title has
been acquired, if the purpose of such investigation is to determine
whether or not fraud had been committed in securing such title in
order that that the appropriate action for reversion may be filed by
the government