Land Titles and Deeds Notes: Background,Basic Concept & Gen. Principles (2/20)

Historical Background

nomads (free) > cultivate > Spain proclaim ownership except predecessor-in-interest > Recording

Land Titles

upon w/c ownership is based

evidence of the right of the owner or the extent of his interest, and by w/c means he can maintain control, and as a rule, assert right to exclusive possession and enjoyment of the property

Possession v. Legal Title/Ownership - 2 distinct and separate concepts

Possession

outward evidence of title

may be enjoyed by usufructuary or lessee

Legal Title/Ownership

can exercise full powers of disposition over his land with complete freedom from control by 3rd persons and subject only to legislative and constitutional powers of the State

Colorful Title - claim but with defect; no legal title

Deeds, nature and essentials

Deeds

written instruments executed in accordance with law, wherein a person grants or conveys to another certain land, tenements or hereditaments

an instrument in writing by w/c any real estate or interest therein is created, alienated, mortgaged or assigned, or by w/c the title to any real estate may be affected in law or equity

To be effective as legal conveyance w/o reformation: deed must have a grantor, a grantee, words of grant, description of the prop. involved, signature of the grantor and as required specifically under the Phil. law, we may add also atleast 2 witnesses and a notarial acknowledgement

may be a very informal instrument (discouraged) as long as it contains essentials prescribed by the statute

A deed will NOT be declared void if by any reasonable rule it can be upheld

Deed defective in form = equitable right BUT insufficient to pass legal title

GR: Deeds executed outside the state shall be valid if they comply with the forms prescribed by law of the place of execution

Types of estate:

1. Freehold estate - indicates title of ownership

a. Fee simple

absolute title; absolute estate in perpetuity; title of land is conferred upon a man and his heirs WITHOUT any limitation imposed upon the estate

b. Fee tail

restrictive estates; designated to pass title from the grantee to his heirs, the intent of the grantor being to keep the property in the grantee's line

c. Life estate

held for the direction of the life of the grantee (HOWEVER, may terminate earlier as by forfeiture)

Example: estate may be given to a widow for life provided she shall remain a widow

2. Less-than-freehold estate - signifies some sort of a right short of title from the grantee to his heirs, the intent of the grantor being to keep the property in the grantee's line of issue (nature of a lease)

a. Estate for years

nature of the lease so no title

grantee or lessee takes over the possession of the land for a period agreed upon but the grantor retains the legal title to the prop.

Term: up to 99 years (max allowable by the Civil Code) EXCEPT: where the lessee is an alien

b. Tenancy from period to period

nature of a lease w/c may run from month to month or from year to year, w/ the peculiarity of automatic renewal from time to time UNLESS expressly terminated by either party

However, if by the terms of the lease the period can only be extended by written consent of the parties, no right for extension can arise w/o such written consent

c. Tenancy at will

form of lease agreement where a person is permitted to occupy the land of another w/o any stipulation as to period, but either party reserves the right to terminate the occupation at will or at any time

3 stages of development:

Delivery of Deed

With recording

With registration

Registration > Recording

-w/o guarantee from the State

Registration

merely species of notice

w/o effect under wrong system

Registration of title > Recording of evidence of title

Registration (merely confirms NOT confers title) - Torrens Title (adopted in the Phils.)

State provides a public record of the title itself upon w/c a prospective purchaser or someone else interested may rely

aims at presenting the prospective purchasers or mortgagee the net result of all the previous dealings

notice to all the world

Rule of Notice: it is presumed that the purchaser has examined every instrument of record affecting the title (presumption is irrefutable)

NEVER necessary in order to give it legal effect as between the parties

purpose: to afford some means of publicity so that persons dealing w/ real prop. may search the records and thereby acquire security against instruments the exec. of w/c has not been revealed

system maintains a permanent record of landholdings, in order to prevent fraudulent claims to lands by concealment of transfers

GR: operation of the record is prospective

EX: Torrens system - subsequent conveyance may defeat a prior unrecorded message

Recording

acts provide for the recording of deeds of conveyance and other instruments WITHOUT guaranteeing the title, leaving to the prospective purchasers or other persons interested to examine the instruments in the records and formulate their own conclusions as to their effect on the title

presents the dealings themselves before such prospect who is left to investigate for himself

Systems of registration

System under the Spanish Mortgage Law -abolished by PD 892 (Feb 16 1976)

Torrens system

rights acquired by the registrant are guaranteed by the gov't for w/c purpose there is provided an assurance fund w/c is made avail to pay for damages that may be suffered by the registrant as a consequence of the operation of the

Land Registration Act (Act 496)

Cadastral Act (2259)

Public Land Act Commonwealth Act 141

Torrens title - conclusive against the whole world, including the gov't and to a holder thereof in GF it is guaranteed to be indefeasible, unassailable and imprescriptible

3. System of recording for unregistered lands

governed by Sec. 194 of the Revised Admin. Code as amended by Act 3344

Property Registration Decree (P.D. 1529) (Jun 11 1978)

governing registration of lands under the Torrens system as well as the recording of transactions relating to unregistered lands, including chattel mortgages

Torrens system

Original Reg.

owner is req. to apply w/ the proper court

finds that the applicant has title proper for the registration a decree of confirmation and reg. is entered to bind the land and quiet title

Land Registration Authority (LRA) as an officer of the court issues the decree in prescribed form w/c is subsequently transcribed by the Register of Deeds (RD) upon title form denominated "Orig Cert. of Title"

proceeding brought before the land reg. court to determine title of ownership to the land on the basis of an application filed for registration or of an ans. filed by a claimant in a cadastral registration case

Subsequent Reg.

becomes the subject of sale, mortgage, lease or other registerable transaction filed directly w/ RD of the province or city where the land lies for reg.

Whether:

title is cancelled and a new one is issued

transaction involved is merely annotated on the existing title

proceeding where incidental matters after after orig. reg. may be brought bef. the land reg. court by way of motion or petition filed by the reg. owner or a party in interest

Constitutionality of reg. laws in the Phils.:

constitutionality was questioned on the grounf that it deprived a person of his prop. w/o due process of law by merely failing to reg. his right or title in acc. w/ the prescribed system

State as sovereign over the land situated w/in it, may provide for the adjudication of title in a proceeding in rem, w/c shall be binding upon all persons known or unknown

Real/immovable (NOT personal) property as object of reg.

Modes of acquiring land titles:

1. by public grant - can be express or implied from the gov't

conveyance of public land by the government to a private individual

Proof of acquisition from the State - one claiming private rights must prove

Forest lands or forest reserves are NOT capable of private appropriation and possession, however long, CANNOT convert them into private property

positive act of the gov't is needed to declassify land w/c is classified as forest, to convert it into alienable or disposable land or for other purpose

The classification of forest land or any land for that matter is descriptive of its legal nature or statues, and does NOT have to be descriptive of what the land looks like (Dela Cruz v. CA)

Although the classification of lands is a gov't prerogative w/c it may opt to exercise to the detriment of another, still private interests regarding the same are not prejudiced and the possessor in GF is respected in his right NOT to be disturbed

It is an iron doctrine that prescription can never lie against the gov't

2. Title by prescription

a possessor of land who may NOT be the owner, after the lapse of a certain period prescribed in the law, may assert ownership as against anyone EXCEPT the true owner or one w/ a better title based on an earlier possession which he had not abandoned

The character of occupancy which may ripen into a title by adverse possession must as a rule be 1 w/c is actual or physical, adverse, open and notorious, exclusive, continuous and uninterrupted, coupled w/ the fact that it must be under claim of ownership

does NOT run against private lands brought under the operation of the Torrens System, nor against public land EXCEPT where the law expressly so provides

Laches v. Prescription

Prescription

concerned w/ the fact of delay

matter of time

statutory

applies inequity

fixed time

Laches

concerned w/ the effect of delay

principally a question of inequity of permitting a claim to be enforced, this inequity being founded on some change in the condition of the property or the relation of the parties

NOT statutory

applies at law

NOT fixed time

a. Acquisitive Prescription

Prescription (in general)

mode of acquiring (or losing) ownership and real rights through lapse of time in the manner and under conditions laid down by law, namely the possession be in the concept of an owner, public, peaceful, uninterrupted and adverse

Ordinary prescription - requires possession in GF + just title/color of title (defective title) for 10 year

Example of color title: donation propter nuptias w/c is void for failure to comply w/ formal reqs., could still constitute a legal basis for adverse possession w/c serves as a basis for claim of ownership

*con justi titulo y buena fe - color of title and good faith

b. Extraordinary Prescription

ownership and other real rights over immovable property acquired through uninterrupted adverse possession thereof for 30 years w/o need of title or of GF

Prescription in favor of co-owner

GR: Prescription does NOT in favor of a co-owner

EX: As long as he expressly or impliedly recognizes the co-ownership, it may take place where it is clearly shown that the co-owner has repudiated the co-ownership, and that the other co-owners were appraised of the repudiation

Co-ownership

Art. 484 Civil Code: There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons

Art. 1623 Civil Code: The right of legal pre-emption or redemption shall NOT be exercised EXCEPT w/in 30 days from the notice in writing by the prospective vendor, or by the vendor, as the case may be. The Deed of Sale shall NOT be recorded in the Registry of Property UNLESS accompanied by an affidavit of the vendor that he has given written notice thereof to all possible redemptioners

The right of redemption of co-owners EXCLUDES that of adjoining owners

Where there are several co-owners and some of them die, the heirs of those who die, w/ respect to the part belonging to the deceased, become also co-owners of the property together w/ those who survive (Cid v. Peralta)

Co-owners w/ actual notice of the sale are NOT entitled to written notice

Possesion of co-owner CANNOT ripen into ownership

merely a trustee

UNLESS: repudiation known to other co-owners and evidence must be clear and convincing

Termination of Co-ownership (right of pre-emption or redemption) after subdivision

Art. 493Civil Code: Each co-owner shall have the full ownership of his part and of the fruits and benefits pertaining thereto, and he may thereto, and he may therefore alienate, assign or mortgage it, and even substitute another person in its enjoyment, EXCEPT when personal rights are involved. BUT the effect of the alienation or the mortgage, w/ respect to the co-ownership shall be limited to the portion w/c may be allowed to him in the division upon termination of the co-ownership

after the physical division of the lot (Del Rosario v. Bansil)

no co-ownership when the diff. portions owned by diff. people are already concretely determined and separately identifiable EVEN IF: NOT yet technically described (Dela Cruz v. Cruz)

Partition of land need NOT be in writing - NOT legally deemed conveyance of real property (NOT transfer of property from one to another)

Valid although executed in an unregistered private document (Kilario v. CA (2000)

Since registration serve as constructive notice to other and for convenience only and does NOT affect the validity or enforceability of the acts of the parties among themselves.

Confirmation or ratification of title or right of property that an heir is renouncing in favor of another heir who accepts and receives the inheritance (Heirs of Joaquin Teves v. CA)

NOTE: This is practically done to avoid taxes on other transactions

Effect of Sale of whole property of co-ownership

affect only his share (NOT co-owners who did NOT consent)

Action to demand for partition - imprescriptibe or CANNOT be barred by laches

Co-owner may demand anytime the partition of the thing owned in common

Redemption of co-owned property

Should be with all co-owners (CANNOT claim as exclusive property)

Redemption from the government: the co-owner who exercises the right of redemption claimed exclusive ownership and hold it in trust for others

Prescription does NOT run against registered land

a Torrens title CANNOT be collaterally attacked, the issue on its validity can only be raised in an action expressly instituted for that purpose (Ong et al v. Sps Cabuscos (2001))

Fraud in transfer of land = implied trust = right of reconveyance of property wrongfully obtained

Act action for reconveyance based on implied/constructive trust ordinarily prescribes in 10 years from the time of its creation or upon the fraudulent reg. of the property. (NOT applicable for trust)

only applies when the person enforcing the trust is NOT in possession of the property

possession must be attacked before one can take action

BUT when the right of the true and real owner is recognized, expressly or implicitly such as when he remains undisturbed in his possession = Quieting of title - imprescriptible

Failure and intentional omission to disclose the fact of actual physical possession by another person during reg. proceeding = actual fraud

Cert. of title

merely confirm or record title already existing and CANNOT be used to protect a usurper from the true owner or be used as a shield for the commission of fraud (Esquivas v. CA)

evidence of indefeasible and incontrovertible title in favor of the person named

Upon the lapse of 1 year from the issuance of the orig. cert. of title, his title already became indefeasible and can NO longer be controversial

Trust

legal relationship bet:

person having equitable ownership in property

person owning the legal title

characteristics:

relationship

of fiduciary in char.

w/ respect to property (NOT one involving merely personal)

2. involves the existence of equitable duties imposed upon the holder of title to the prop, to deal w/ it for the benefit of another

3. arises as a result of a manifestation of intention to create the relationship

either:

Express Trust - created by the intention of the trustor or of the parties

2. Implied Trust - comes into by operation of the law either through implication of an intention to create a trust as a matter of law or through the imposition of the trust irrespective of, and even contrary to any such intention

right, enforceable solely in equity, to the beneficial enjoyment of the property, the legal title to w/c is vested in another and is further subdivided into:

resulting trust - by implication of law and presumed have to have been contemplated

Art 1448 NCC -purchase money resulting trust

However, if the person to whom the title is conveyed is a child, legitimate or illegitimate, of one paying the price of sale, no trust is implied by law, it being disputably presumed that there is a gift in favor of the child

essential reqs:

actual payment of money, property or services, or an equivalent consisting valuable consideration

consideration must be furnished by the alleged beneficiary of a resulting trust

2. constructive trust - by construction of or arising by operation of law (Ramos v. CA)

EX to implied trust:

if the beenficiary is the child of the one who paid

actual contrary intention is proved

Burden of proof: party asserting its existence

3. Title by accretion

Art. 457. To the owners of lands adjoining the banks of rivers belong the accretion which they gradually receive from the effects of the current of the waters.

elements:

accumulated of soil or sediment must be gradual and imperceptible

result of the actions of the waters of the river

land where the accretion takes place is adjacent to the bank of the river

When soil and earth, weeds and other deposits are washed away from other places and gradually settle down and attach themselves to one's land that used to border on a stream or local body of water, the owner of this land becomes the owner of the additional area

NOT applicable if

caused by action of the sea being a mere indention of the same (part of public domain)

adjoining a pond or lagoon w/ respect to a land left dry

erosion (NOT protected by State)

man-made accretion

island should spring up in the midst of a stream or river

dumping saw dust (public domain)

all deposits caused by human intervention

Presumptin: change was gradual and caused by accretion

Accretion v. Alluvium v. Accession

Accretion = act; process whereby the soil is deposited

Alluvium - deposit itself; soild deposited on the estate fronting the river bank

Accession - right of the owner of the principal thing to all that it may produce or that may be united to it, whether naturally or artificially, under the theory that the accessory follows the principal

4. Title by reclamation

filling of submerged land by deliberate act and reclaiming title thereto

GR: only gov't can assert title to reclaimed land

EX: no longer necessary for public use

5. Title by voluntary transfer

legal title to the land does NOT pass until the conveyance shall have been duly registered or made of public record.

6. Title by involuntary alienation

Land is forcefully acquired by State through:

exercise of eminent domain

escheat

forfeiture

confiscated

seized

attached

7. Title by descent or devise

acquired by virtue of hereditary succession to the estate of the deceased owner

Heir v. Devise

Heir - certain degree or relationship with the decent (may be extra judicial)

Devise - need NOT be in favor of a relative

8. Title by emancipation patent or grant

Comprehensive Agrarian Reform Program (CARP)

welfare of the landless farmers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization