Noblejas: Land Titles and Deeds PDF

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REGISTRATION OF LAND TITLES AND DEEDS i ii REGISTRATION OF LAND TITLES AND DEEDS By ANTONIO H. NOBLEJAS, Ll.B.; Ll.M. Former Commissioner, Land Registration Commission (1953-1968), Bar Examiner in Civil Law (1965), Bar Examiner in Mercantile Law (1967), Bar Examiner in Civil Law (1989), Professor of...

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REGISTRATION OF LAND TITLES AND DEEDS

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REGISTRATION OF LAND TITLES AND DEEDS By ANTONIO H. NOBLEJAS, Ll.B.; Ll.M. Former Commissioner, Land Registration Commission (1953-1968), Bar Examiner in Civil Law (1965), Bar Examiner in Mercantile Law (1967), Bar Examiner in Civil Law (1989), Professor of Law and Bar Reviewer of Land Titles and Deeds, and the Law on Property and Credit Transactions, University of the Philippines, University of the East, University of Sto. Tomas, Ateneo University, San Beda College, San Sebastian College, Arellano University.

EDILBERTO H. NOBLEJAS, AA.; Ll.B. Judge, Regional Trial Court, Branch XLIII, San Fernando, Pampanga, Former Assistant Chief, Technical Staff, Ministry of Justice, Former Trial Attorney, U.S. Military Bases Expansion Projects, Office of the Solicitor General, Former Secretary, Interim Board of Censors for Motion Pictures, Former Legal Consultant, Operation Brotherhood, Vientiane, Laos, Professor of Law and Bar Reviewer, Land Titles and Deeds and the Law on Property, Arellano University, Manila Law College, University of Manila, Abad Santos Law School, University of Santo Tomas, University of the East, Harvardian Colleges, and San Sebastian College.

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Philippine Copyright, 2007 by

ANTONIO H. NOBLEJAS

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LAND TITLES AND DEEDS INTRODUCTION Chapter I

PRELIMINARY STATEMENT The Subject For many years, this subject among others prescribed in the different colleges of law in this country was known as “Land Registration and Mortgages’’. Even our Supreme Court, when it drafted the Rules of Court designated this independent subject in the bar examinations as such (See Section 9, Rule 127, Old Rules of Court, now amended by Section 11, Rule 138, New Rules of Court). Actually, however, the title of the course is a misnomer. It is not the land which is registered under any system of registration in the Philippines and elsewhere, but it is the title to or any deed affecting land which is actually registered. For this reason, the curriculum for the different colleges of law has been revised to make it conform to reality and rectify the misleading signification of the terms used. Accordingly, the subject covering the same study has now been designated “Land Titles and Deeds’’. If we want, however, to be more accurate, this course should be entitled “Registration of Land Titles and Deeds’’ because the subject in reality covers matters pertaining to the registration of titles and deeds affecting lands in various proceedings provided by law. Inasmuch as titles and deeds are supposed to be registered in order to bind the land and prejudice third persons, it is essential to the proper understanding of the different systems of registration and their efficacies, to determine first of all the correct and precise meaning of the terms title, deeds, registration and others, by themselves and as they pertain to lands, before proceeding with an analysis of the law and rules of procedure affecting the same. 1

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REGISTRATION OF LAND TITLES AND DEEDS

The Meaning of Title What “Title’’ signifies The word title carries a different meaning under different circumstances. But in legal speech, generally it is defined as the lawful cause or ground of possessing that which is ours. It is that which is the foundation of ownership of property, real or personal (Hunt vs. Easton, 21 N.W. 429, 431); and commonly, the word signifies or is taken to mean as (1) ownership or, when used with appropriate limiting words, a claim of ownership; or (2) the totality of evidence, i.e., the operative facts which result in such ownership or on which the claim of ownership is based. While in the strict sense, the word title is applicable only to real estate, it is also sometimes used to denote a similar attribute of personal property. When so used, it has a kindred meaning and contemplates some specific tangible thing having some resemblance to real property in its characteristics which justifies the borrowing of the term. It is rarely, if ever, used to denote the ownership of transitory and intangible objects (Jones vs. Gould, 149 Fed. Rep., 153, 157). Specifically, one’s title to land is the evidence of his right or of the extent of his interest; the means whereby the owner is enabled to assert or maintain his possession; the right of the owner, considered with reference either to the manner in which it has been acquired or its capacity of being effectively transferred (Robertson vs. Vancleave, 29 N.E. 781). In this concept, distinction is sometimes made between legal and equitable title. Equitable ownership means a present title in land which will ripen into “legal ownership’’ upon the performance of conditions subsequent. But in ordinary acceptation, the term “title to land’’ is usually taken to mean legal title and is allowed to be used in relation to the title to certain land. The Spanish word titulo means, according to Spanish authorities, the cause in virtue of which anything is possessed and the instrument by which the right is accredited; and, in Spain and Mexico, they are a class of titles (titulos), not translative of property. But it is to be applied as well to the term, as to those which confer a mere right of occupancy (De Haro vs. U.S., 599, 626).

Title and Possession Distinguished Although title in short, means the right of possession, it does not mean possession itself alone. Title implies possession, either

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actual or constructive, but possession does not necessarily imply title (Popovich vs. State, 177 N.E., 458, 462). Possession means actual control of property by physical occupation, while title is the means whereby one holds possession of his land (Collar vs. Ulster D.R. Co., 131 N.Y.S. 56, 60). Clearly, therefore, title signifies the right of possession or of property in land as distinguished from actual possession; and the legal title to real property carries with it the right to possession which is sufficient to authorize an action to recover the same from one in possession without right or title (Norton vs. Frederick, 119 N.W. 492, 494). Title to real property is not a thing with physical attributes, but is a conglomerate of jurisdiction and substantive legal rights fused with the residuals of equitable remedies all developed historically out of feudal notions and medieval conditions (U.S. vs. Gossler, D.C., Or., 60 F. Supp. 971, 973). Rights of possession to land, to dominion and control thereof, and to care for, cultivate and harvest crops thereon do not arise to dignity of title (Lawson vs. Helich, Wash.; 146 P. 2d 537, 540;151 A.L.R. 930).

Brief Definition of Title Title, therefore, may be defined briefly as that which constitutes a just cause of exclusive possession, or which is the foundation of ownership of property (See also Webster International Dictionary; Houston vs. Farris, 71 Ala. 570, 571; and Pratt vs. Fountain, 73 Ga., 261, 262).

Fee Simple Title A title in fee simple means a title to the whole of the thing absolutely (Dumont vs. Dufore, 27 Ind. 263, 267). Likewise, a title in fee is a full and absolute state beyond which and outside of which there is no other interest or right (Bailey vs. Henry, 143 S.S. 1124,1127). Hence, when such a title exists, there cannot be even a shadow of right beyond it because it means complete and unconditional ownership in fact. It involves the exercise of the maximum rights of dominion over the property without limitations except those which may be established by law.

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Good, Doubtful and Bad Titles A land title may be good, doubtful or bad. A good title is that which is enforceable against the whole world including the government or any of its branches, and in this jurisdiction carries with it the character of indefeasibility. A title registered under the Torrens system and acquired in good faith is an example of a good title. A doubtful title is that which exposes the party holding it to the hazards of litigation (Beeler vs. Sims, 93 Kan. 213), and, therefore, may be considered neither good nor bad. Documents of sales of unregistered lands which are recorded under Act 3344 are examples of doubtful titles. A title is a bad title when, if conveyed to another, conveys no property at all. Thus, a title obtained thru fraud or similar means, not in good faith or for a valuable consideration, is certainly a bad title.

Certificate of Title A certificate of title is a mere evidence of ownership; it is not the title to the land itself as the concept of title is conceived under our Civil Law; “the certificate of title shall be a true copy of the decree of registration ’’ (Sec. 39, P.D. 1529). This, however, pertains to original certificates of title, and in our jurisdiction, certificates issued subsequent to the original registration are no longer denominated original certificates of title but transfer certificates of title. Under the law, transfer certificates of title are those issued subsequent to original certificates and may not necessarily constitute a transcript of the decree of registration. “The subsequent certificate of title that may be issued by the Registrar of Deeds pursuant to any voluntary or involuntary instrument relating to the same land shall be the transfer certificate of title.’’ (Sec. 43, P.D. 1529).

LAND TITLES GRANTED BY THE SPANISH CROWN The Legal Background During the 16th century, the Philippines passed to the Spanish Crown by discovery and conquest. Consequently, our lands, whether agricultural, mineral or forest became at least technically speaking, the exclusive patrimony and dominion of the Spanish Crown. Hence, private ownership in land can only be founded on royal concessions

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(Law 14, Title 12, Book IV of the Recopilacion de las Leyes de las Indias; Valenton vs. Murciano, 3 Phil. 537, [1904], 543-544). Royal concession may be accomplished in varied forms.

“Titulo Real’’ or Royal Grant Title to land granted generally to Spanish subjects in order to encourage them to settle and go out to the people of the new territory are called titulo real. Those who shall have labored and established a home on their lands and resided in the said settlement for a period of four years were granted the right thereafter to sell and to exercise their free disposition over their lands as that over their own property. Distribution of the land was according to rank — to the discoverers and settlers. Grants were also extended to vassals after having dwelt upon and cultivated the same for a certain period. These titulos real or royal grants were then evidences of absolute ownership but may be lost by prescription. To secure this grant, application is required to be filed with the municipal council which application is considered by the viceroy, municipal president and deputy magistrate who all sign the grant as approved and duly recorded in the council book. Under the law then in force, lands granted may be a peonia which is a tract of land measuring 100 feet long and 50 feet wide or caballeria measuring 200 feet long by 200 feet wide. Those who had been given peonias and caballerias were obliged to construct their houses on the lots and cultivate the agricultural lands given to them within the time alloted to them under pain of losing their rights thereto and paying to the government a certain amount of maravedis (an old Spanish coin worth about one-sixth of a cent). (Law 1 and 3, Title 13, Book 4, Recopilacion de las Leyes de las Indias). (Superseded by Section 1, P.D. 892).

“Concesion Especial’’ or Special Grant This is a form of acquiring title to land accomplished thru the exercise of a special power by the Governor-General of the Philippines without any authority of a special law. Disposition of tide lands for purposes of reclamation and improvement and other purposes have been made by the Governor-General. Under the provisions of Law II, Title 15, Book 2 of the Law of the Indies, the Governor-General had the power to make any grant of land except where there is express provision of law prohibiting him from doing so. The existence of the power of disposal is presumed (Jover vs. Government, et al., 40 Phil. 1094 [1911]).

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“Composicion con el Estado’’ or Adjustment Title The “composicion con el estado ’’ title was that granted by the Spanish Government through the Direccion General de Administracion Civil, pursuant to the provision of the Royal Decree of 25 June 1880; that granted by the Chief of the Province by delegation pursuant to the provisions of Royal Decree of 31 August 1888; and that granted also under the Royal Decree of 13 February 1894, because aside from the possessory information proceedings leading to the grant of title to lands of the public domain, the grant by composicion con el estado proceedings was still permitted under the provisions of the last decree (J.M. Tuason & Co., Inc. vs. Santiago, et al., 52 O.G. 11, p. 5127, September 15,1956). This title is premised upon the assumption that all those lands to which the state has never executed any deed were property of the state. This is particularly true with respect to those who extended their possession beyond the limits fixed and originally granted, in which event they might admit to a moderate adjustment with respect to the excess and new title deed issued them therefor. Applicant to be entitled to such an adjustment must possess the land sought to be acquired for a number of years. Under the law, length of possession so required varies in different colonies. It may be 54 years or 150 years. Sometimes 40 years is sufficient. (See Valenton vs. Murciano, 13 Phil. 537 [1904]; Law of the Indies, Law 19, Title 12, Book IV). No one is admitted to adjustment unless he has possessed the land for at least 10 years. By these titles, unlawful entries and detainer of lands by private individuals were legalized under certain conditions. This was conceived as a means of compromise between the Crown as the owner of the land and the private individual as the usurper. These titles were then evidences of absolute ownership but may likewise be lost by prescription. A title by composition with the State is a title of conclusive ownership in favor of the party who appears therein as the grantee (Balation vs. Agra, 17 Phil. 501 [1910]). It is settled in this jurisdiction that a Spanish titulo de composicion duly recorded in the office of the Registrar of Deeds is evidence of absolute and exclusive ownership in favor of the grantee (Lao and Edaño vs. Director of Lands, 76 Phil. 736, [1946], and cases cited therein; Commonwealth of the Philippines vs. Abad, et al., 45 O.G. 5, p. 63, Ct. App., May 1949 Suppl.) (Superseded by Presidential Decree No. 892). The initial registration, however, of the “composicion con el estado’’ under the Spanish Mortgage Law is no longer possible as

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the system of registration is no longer in force. In this connection, Section 3 of P.D. 1529 provides: Status of other pre-existing land registration system. — The System of registration under the Spanish Mortgage Law is hereby discontinued and all lands recorded under said system which are not yet covered by Torrens title shall be considered as unregistered lands. (Italics ours.) Hereafter, all instruments affecting lands originally registered under Spanish Mortgage Law may be recorded under Section 113 of this Decree, until the land shall have been brought under the operation of the Torrens system. (Italics ours). The book of registration for unregistered lands provided under Section 194 of the Revised Administrative Code, as amended by Act 3344, shall continue to remain in force; provided, that all instruments dealing with unregistered lands shall henceforth be registered under Section 113 of this Decree. (Italics ours.)

The “composicion con el estado’’ cannot likewise be recorded under Act No. 3344 as it does not satisfy the legal formalities nor does it supply the date therein required. Furthermore, its recording under Act No. 3344 would not make it any better than it is now. Finally, the “composicion con el estado’’ cannot be registered under Act No. 496 as a subsequent registration or a dealing after original registration as the property has not yet been brought under the operation of the Torrens system (see Section 1, P.D. 892). “Titulo de Compra’’ or Title by Purchase This is acquired in accordance with the regulations for the sale of public lands in the Philippines approved by the Royal Decree of January 26,1889. Under the regulations, the application to purchase must be published in the Gazetta de Manila setting forth the description of the land and giving 60 days in which anyone can present his objection to the same. A similar notice in the dialect was required to be posted in the municipal building of the town in which the property was situated, besides making it public by the town crier. The sale was conducted at public auction and awarded to the highest bidder and covered not only vacant lands but also public lands occupied without title. (See Section 1, P.D. 892).

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“Informacion Posesoria’’ or Possessory Information Title This title may be obtained under the Spanish Mortgage Law or under the Royal Decree of February 13, 1894 or the Maura Law. An informacion posesoria under the Spanish Mortgage Law when duly inscribed in the Registry of Property is converted into a title of ownership only after the lapse of 20 years of uninterrupted possession which must be actual, public and adverse (perhaps now 10 years, Archbishop of Manila vs. Arnedo, 30 Phil. 593 [1915]), from the date of its inscription (Section 393, Spanish Mortgage Law). Though converted into a title of absolute ownership, still it may be lost by prescription. A title obtained under the Royal Decree of February 13, 1894 is a gratuitous title or titulo gratuita to property granted under the conditions prescribed by Sections 19 and 20 of the said Royal Decree (Aguinaldo de Romero vs. Director of Lands, 39 Phil. 814 (1919). The informacion posesoria proceedings under the provisions of the Mortgage Law made effective in the Philippines on December 1, 1889 were also available to those who had claim to lands, to have their possession recorded in the Registry of Deeds. But such recorded possessory information proceedings did not ripen into ownership except under certain conditions, the most important of which was the expiration of 20 years after the entry or record in the Registry of Deeds of the possessory information proceedings. And under Article 394 of the Mortgage Law, the entry or record of possession in the Registry of Deeds did not prejudice the owners of the property although his title had not been recorded, unless prescription had confirmed and secured the claim recorded (Santiag...