Land Titles and Deeds

(1)

Land Titles And Deeds

1.Ownership of Lands by

Corporations



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)

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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.

2. PRESCRIPTION OF

QUIETING OF TITLE



Category: Land Titles And Deeds

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.

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What are the requisites for

existence of a cloud?

1. There is an Apparently valid or effective instrument. 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)

(4)

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)

3. DUTY OF SUBDIVISION

OWNER TO SECURE RIGHT

OF WAY



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

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> The closure of a dead end is part of one’s proprietary rights

4. DUTY OF OWNER TO

DELIVER TITLE OF THE

CONDOMINIUM UNIT



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

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5. Time of Completion of

Subdivision or Condominium

Plans



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

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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

6. LIABILITY OF OWNER FOR

BREACH OF WARRANTIES-

CONDOMINIUM UNIT

BROCHURES



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

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7. MORTGAGE OF

CONDOMINIUM WITHOUT

KNOWLEDGE OF BUYER IS

AN UNSOUND BUSINESS

PRACTICE



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

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8. REGISTRATION OF SALE OF

SUBDIVISION LOTS AND

CONDOMINIUM UNITS



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

9. The period within which to

appeal the decision of the

Board of Commissioners of

the HLURB

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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

10. TRANSFER OF OWNERSHIP

OR CHANGE OF NAME OF A

SUBDIVISION OR

CONDOMINIUM



TRANSFER OF

OWNERSHIP OR CHANGE

OF NAME OF A

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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

11. JURISDICTION OF THE

NATIONAL HOUSING

AUTHORITY, Housing and

Land Use Regulatory Board



JURISDICTION OF THE

NATIONAL HOUSING

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> 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

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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

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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

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7. For incidental claims for damages

12. WHEN A PERSON

AUTOMATICALLY CEASES AS

A STOCKHOLDER IN A

CONDOMINIUM

CORPORATION



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.

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13. THE OWNER OF A UNIT IS

CONSIDERED A

SHAREHOLDER IN 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

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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

14. Petitions Involving

Certificate Of Title



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

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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.

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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.

15. DUTY OF REGISTER OF

DEEDS TO REGISTER

DOCUMENT PRESENTED FOR

REGISTRATION IS

MINISTERIAL



DUTY OF REGISTER OF

DEEDS TO REGISTER

DOCUMENT PRESENTED

FOR REGISTRATION IS

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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

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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.

16. REGISTRATION OF

INSTRUMENTS DEALING WITH

UNREGISTERED LAND



REGISTRATION OF

INSTRUMENTS DEALING

WITH UNREGISTERED

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> 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

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> 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

17. Land Registration Circular

No. 35



Land Registration Circular

No. 35

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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

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> 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

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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

(27)

> 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

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18. JUDICIAL RECONSTITUTION

UNDER REPUBLIC ACT 26



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

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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

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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

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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.

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WHERE TO FILE PETITION;

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

(33)

> 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.

19. SECTION 109 OF THE LAND

REGISTRATION ACT

GOVERNS REPLACEMENT OF

LOST DUPLICATE

CERTIFICATE



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

(34)

> 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

(35)

20. NO TIME LIMIT TO FILE

PETITION TO ANNOTATE A

DEED OF SALE



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

21. NO ALTERATION OR

AMENDMENT OF DECREE OF

REGISTRATION IS PERMITTED

(36)

EXCEPT UPON ORDER OF

THE COURT



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

(37)

22. COURT MAY NOW HEAR

BOTH CONTENTIOUS AND

NONCONTENTIOUS CASES



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

(38)

23. PROCEEDINGS UNDER

SECTION 112 OF THE LAND

REGISTRATION ACT ARE

SUMMARY IN NATURE

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—

(39)

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

24. WHEN TO FILE PETITION

FOR AMENDMENT OR

ALTERATION OF

CERTIFICATE



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

(40)

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;

25. WHERE TO FILE PETITIONS

OR MOTIONS AFTER

ORIGINAL REGISTRATION



WHERE TO FILE

(41)

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

26. Authority Of Court To Order

The Surrender Of Owner's

Duplicate Certificate



AUTHORITY OF COURT TO

ORDER THE SURRENDER

OF OWNER’S DUPLICATE

CERTIFICATE

(42)

> 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.

27. PETITION TO SURRENDER

TITLE MAY BE FILED AS AN

INCIDENT IN AN ACTION

AFFECTING SAID TITLE



PETITION TO SURRENDER

TITLE MAY BE FILED AS AN

INCIDENT IN AN ACTION

(43)

> 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

28. REMEDY WHERE

DUPLICATE CERTIFICATE IS

WITHHELD



REMEDY WHERE

DUPLICATE CERTIFICATE

IS WITHHELD

(44)

> 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

29. MODES OF ACQUISITION OF

AGRICULTURAL LAND



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

(45)

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

30. ACQUISITION OF PRIVATE

AGRICULTURAL LANDS;

PAYMENT OF JUST

COMPENSATION



ACQUISITION OF PRIVATE

AGRICULTURAL LANDS;

PAYMENT OF JUST

COMPENSATION

1. The land must be privately-owned and found suitable for agriculture

(46)

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

31. DISTURBANCE

COMPENSATION (following

RA 3844)



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

(47)

> The state is not liable for disturbance compensation

32. EXTINGUISHMENT OF

AGRICULTURAL LEASEHOLD

RELATIONS



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

(48)



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

34. DISTINCTIVE FEATURES OF

PD27 AND RA6657,

EXEMPTION DISTINGUISHED

FROM RETENTION



(49)

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

(50)

> 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

(51)

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

35. ONLY AGRICULTURAL

LANDS ARE SUBJECT TO THE

AGRARIAN REFORM

COVERAGE



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.

(52)

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

(53)

> 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

36. SCOPE OF THE

COMPREHENSIVE AGRARIAN

REFORM LAW OR REPUBLIC

ACT 6657



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.

(54)

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)

(55)

37. PD 27 LAID DOWN A

SYSTEM FOR THE PURCHASE

BY SMALL FARMERS OF THE

LANDS THEY WERE TILLING



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

(56)

38. RA 6657 OR

COMPREHENSIVE AGRARIAN

REFORM LAW OF 1988



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

(57)

39. AGRARIAN REFORM

PROVISION IN THE 1987

CONSTITUTION



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.

40. EFFECT OF VOID

CONVEYANCE



(58)

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.

41. REPURCHASE OF LAND BY

APPLICANT OR HIS HEIRS



(59)

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