Proceedings after Original Registration

Reported by:

DE VERA, Paul Nichol

CRISOSTOMO, Ruby Mae
ABUAN, Olive

I. VOLUNTARY AND INVOLUNTARY DEALINGS

A. Voluntary Dealings

1. Sale

A contract of sale is an agreement whereby one of the parties obligates

himself/herself to deliver something to the other who, in part, binds
himself/herself to pay a sum of money. A contract of sale would require the
following: a) Consent of the parties or meeting of the minds; b) Object or subject
matter of the contract; c) Cause or consideration.

2. Mortgage

A contract of mortgage is constituted to secure the fulfilment of a

principal obligation. The essence of a mortgage is that a property has been
identified or set apart from the mass of the property of the debtor-mortgagor as
security for the payment of money or fulfilments of an obligation to answer the
amount of indebtedness, in case of default of payment.

3. Lease

A contract of Lease is an agreement whereby one person binds

himself/herself to grant temporarily the enjoyment or use of a thing or to render
some work or service to another who undertakes to pay rent, compensation or
price. A contract of lease, like in sales, there is an exchange of equivalent values.
The use by the lessee of the thing, work, or service is considered the equivalent
to the rent, compensation, or price paid to the lessor.

In a contract of lease, like ordinary contracts, has three elements mainly:

a) consent of the contracting parties; b) object certain which is the subject matter
of the obligation; and c) cause of the obligation.

B. Involuntary Dealings

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 1. Attachments

It is a legal process of seizing another’s property in accordance with a

writ or judicial order for the purpose of securing satisfaction of a judgment yet
to be rendered. It is used to seize primarily the debtor’s property in order to
secure the debt or claim of the creditor in the event that a judgment is rendered.

2. Adverse Claims

It is a statement in writing setting forth a subsequent right or interest

claimed involving the property, adverse to the registered owner.

3. Lis pendens

It literally means a pending suit. This refers to the jurisdiction, power or

control which a court acquires over property involved in a suit, pending the
continuance of the action until final judgment.

The presentation of owner’s duplicate upon entry of new certificate is the authority of the
register of deeds to enter registration. No voluntary instrument shall be registered by the Register
of Deeds unless the owner’s duplicate certificate is presented together with the instrument. The
reason for requiring the production of the owner’s duplicate certificate in the registration of a
voluntary instrument is that the owner acted willingly. That means that he is interested in
registering the instrument and would willingly surrender, present or produce his/her certificate of
title to the Register of Deeds for registration. However, if the registered owner refuses or fails to
surrender the duplicate copy of the title, the claimant may file with the register of deeds a statement
setting forth his adverse claim.

The distinction between voluntary and involuntary registration was given by the Supreme
Court in its decision in Rebecca Levin v. Joaquin Bass et al, the court ruled that in voluntary
registration, if the owner’s duplicate certificate is not surrendered and presented or if no payment
of registration fees are made then the entry in the day book of the deed of sale does not operate to
convey and affect the land sold. In involuntary registration, such attachment, levy, execution, lis
pendens and the like, entry in the day book is a sufficient notice to all persons of such adverse
claim.

Also in the case of Pacifico Garcia v. Court of Appeals, the Supreme Court ruled that in
the case of voluntary registration of documents, an innocent purchaser for value of registered land
becomes the registered owner, and, in contemplation of law, the holder of a certificate of title, the
moment he presents and files a duly notarized and valid deed of sale is entered in the day book and
at the same time he surrendered or presents the owner’s duplicate certificate of title covering the
land sold and pays the registration of fees, the Register of Deeds is duty bound to perform

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II. NECESSITY AND EFFECTS OF REGISTATION

A. Entry in the primary book produces the effect of registration.

B. There is effective registration once the registrant has fulfilled all that is needed of
him for purposes of entry and annotation, so that what is left to be accomplished
lies solely on the Register of Deeds.

C. The act of registration shall be the operative act to convey or affect the land in so
far as third persons are concerned.

D. Constructive notice is also created upon registration of every conveyance,

mortgage, lease, lien, attachment, order, judgment, instrument or entry affecting
registered land. It must be noted that computation of the prescriptive period of any
cause of action starts from the date the cause of action accrues.

E. It is only the act of registering the instrument in the Register of Deeds for the
province or city where the land lies which is the operative act that conveys
ownership or affects the land insofar as 3rd persons are concerned.

F. The act of registration creates constructive notice to the whole world of such
voluntary or involuntary instrument or court writ or process.

III. FORMAL AND PROCEDURAL REQUISITES FOR REGISTRATION

A. Formal Requisites

CONTENTS OF THE INSTRUMENT PRESENTED FOR REGISTRATION:

Full name, nationality, residence and postal address of the grantee or other
person acquiring or claiming an interest under such instrument, and every deed shall
also state whether the grantee is married or unmarried, and if married, the name in
full of the husband or wife. If the grantee is a corporation or association, the
instrument must contain a recital to show that such corporation or association is
legally qualified to acquire private lands.

Section further provides that notices and processes affecting the land shall
be served upon the person in interest at the address given, which shall be binding
whether or not such person is within or outside the Philippines.

B. Need for presentation of the instrument or deed to the Register of Deeds

Section 56, 3rd paragraph of PD 1529:

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 “All deeds and voluntary instruments shall be presented with their
respective copies and shall be attested and sealed by the Register of Deeds, endorsed
with the file number, and copies may be delivered to the person presenting them.”

C. Need for presentation of owner’s copy to the Register of Deeds.

SURRENDER OF OWNER’S DUPLICATE CERTIFICATE

No voluntary instrument shall be registered by the RD unless the owner’s

duplicate certificate is presented together with such instrument, except in some
cases given or upon the order of the court for cause shown. The production of the
owner’s duplicate certificate, whenever a voluntary instrument is presented for
registration, shall be conclusive authority from the registered owner to the Register
of Deeds to enter a new certificate or to make a memorandum of registration in
accordance with such instrument. To affect the land sold, presentation of the deed
of sale and its entry in the day book must be done with the surrender of the owner’s
duplicate of the certificate of title.

When the land which is the subject of sale thus registered in the name of the
purchaser, registration takes effect retroactively as of the date when the deed,
conveyance was noted in the entry book of the Register of Deeds. The issuance of
a TCT without the presentment of the owner’s duplicate is unwarranted and confers
no right on the purchaser.

The reason for requiring the production of the owner’s duplicate certificate
in the registration of a voluntary instrument is that, being a wilful act of the
registered owner, it is to be presumed that he is interested in registering the
instrument and would willingly surrender, present or produce his duplicate
certificate of title to the Register of Deeds in order to accomplish such registration.

REMEDY IN CASE OF REFUSAL OR FAILURE TO SURRENDER OWNER’S

DUPLICATE CERTIFICATE:

Where a voluntary instrument cannot be registered by reason of refusal or

failure of the holder to surrender the owner’s duplicate certificate of title, the party
in interest may file a petition in court to compel surrender of the same to the Register
of Deeds.

Upon filing of the petition, the court, after hearing, may take the following
actions:

(a) Order the registered owner or any person withholding the duplicate
certificate to surrender the same and direct the entry of a new certificate or
memorandum upon such surrender; or

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 (b) If the registered owner or any person withholding the duplicate
certificate refuses to surrender the same or if for any reason the outstanding
owner’s duplicate certificate cannot be delivered, order the annulment of the
same as well as the issuance of title in lieu thereof.

GENERALLY, A FORGED DEED IS A NULLITY AND CONVEYS NO TITLE

The innocent purchaser for value protected by law is one who purchases a
titled land by virtue of a deed executed by the registered owner himself, not by a
forged deed BUT A FORGED DEED MAY BE THE BASIS OF A GOOD
TITLE IN THE HANDS OF A BOA FIDE PURCHASER

The innocent third persons relying on the correctness of the certificate of the
title issued, acquire rights over the property, the court cannot disregard such rights
an order the total cancellation of the certificate for that would impair public
confidence in the certificate of title.

IV. NATURE OF THE PRIMARY ENTRY BOOK

The primary entry book or day book is a record of all instruments, including
copies of writs and processes, affecting registered lands, which are entered by the RD
in the order of their filing, upon payment of the proper fees. The recording is a
preliminary process in registration and shall note the date, hour, and minute of receipt
of said instruments. An instrument shall be regarded as registered only from the time it
is noted. Every deed of instrument shall be numbered and endorsed by the Register of
Deeds with proper reference to the certificate of title. All records and papers relative to
registered land shall be open for examination by the public, subject to such reasonable
regulations as the RD may prescribe. All deeds and voluntary instruments and copies
thereof shall be attested and sealed with the Register of Deeds and copies with the
corresponding file number shall be delivered to the person presenting them.

A. REQUIREMENTS FOR THE REGISTRATION OF VOLUNTARY AND

INVOLUNTARY TRANSACTIONS:

Voluntary:

(a) Filing and registration in the day book of the notarized deed ir instruction

(b) Surrender of the owner’s duplicate certificate of title; and

(c) Payment in full of the proper registration fees within 15 days from date
of entry

Involuntary:

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 The entry of the corresponding order or notice on the day operates as a
sufficient notice to all persons of such incidents, even without the presentation of
the owner’s duplicate certificate of title.

B. DATE OF MAILING BY REGISTERED MAIL IS THE DATE OF FILING FOR

PURPOSES OF REGISTRATION

The Register of Deeds shall, as a preliminary process in registration, note in

such book the date, hour and minute of reception of all instruments, in the order in
which they were received. They shall be regarded as registered from the time so
noted, and the memorandum of each instrument, when made on the certificate of
title to which it refers, shall bear the same date. For applications by registered mail,
the date of mailing is the date of filing for purposes or registration.
C. DEEDS ENTERED IN THE DAY BOOK CONSIDERED REGISTERED FROM
THE MOMENT THEY ARE SO NOTED

In an execution sale, the purchaser acquires only such right or interest as the
judgment debtor had on the property at the time of the sale.

D. RECORD IS CONSTRUCTIVE NOTICE OF ITS CONTENTS

V. REGISTRATION OF DEEDS OF SALE OR CONVEYANCE AND

TRANSFERS

A. Registration Requirements

1. For conveyance of entire property, the grantor’s owners copy stamped

“cancelled”--‐ READ: Sec 57, PD 1529

Procedure:

--‐Execute proper deed of conveyance (proper in form)

--‐Present for entry and registration to Register of Deeds (including

owner’s duplicate copy

Duties of R.D:

1. Make a new certificate of title to the grantee and shall prepare and deliver to him
an owner’s duplicate certificate
2. Note upon the original and duplicate certificate
a. Date of conveyance
b. Volume and page of the registration book in which the new certificate is
registered

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 c. Reference by number to the last preceding certificate

3. Original and owner’s duplicate certificate will be stamped “CANCELLED”

The deed of conveyance shall be filed with a notation of the number

and place of registration of the certificate of title of the land
conveyed.

2. For conveyance of a portion, READ: Sec 58, PD 1529

Procedure:

Pending Approval of Plan:

a. Register of Deeds shall not issue any transfer certificate of title to the grantee
until a PLAN of such land showing the portion or portions into which it has
been subdivided and the corresponding technical description shall have been
VERIFIED and APPROVED (sec 50, PD 1529)

In the meantime; the deed of conveyance may be annotated

by way of MEMORANDUM, to show and recognize the grantee’s
title conveyed pending issuance of the actual certificate of title.

Upon Approval:

b. Verified and approved Plan and Technical description shall be filed with the office
of Register of Deeds for annotation on the corresponding certificate of title.

c. Issue NEW Transfer of Certificate of title to the grantee for the portion conveyed
to him

If grantor desires, his certificate of title may be cancelled totally and new
one be issued to him for the remaining portion.

Pending Approval of plan, no further registration or annotation of any deed

or voluntary instrument affecting the unsegregated portion shall be made
by the R.D, EXCEPT where such portion was purchased from government
or any of its instrumentalities.

Land subdivided into SEVERAL LOTS, the R.D, if requested by the

grantor, may, instead of cancelling of title for the remaining unconveyed
lots, enter on said certificate and on the owner’s duplicate a
MEMORANDUM as to the fact of conveyance of a portion of the land.

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3. Encumbrances and annotations in the registration book are carried over the
new TCT’s issued: exception READ: Sec 59, PD 1529

General Rule:

It is the ministerial duty of R.D to carry over existing encumbrances

to the new certificates of title.

Exception:

If the encumbrance or annotations are simultaneously released or discharged

WHY? To show that the grantee obtained the lot or land subject to
subsisting encumbrances attached to the title of the grantor

B. Effects of Registration

1. Registration of voluntary instruments of sale of land is the operative effect

that transmits or transfers title. Villaluz v Neme 7 SCRA 27 (1963)

Moreover, the acquisition of the land in question is governed by the

Public Land Act No. 141 and the Land Registration Law Act No. 496. And
considering that the deed of sale had not been registered in accordance with
the said laws, the same did not constitute a conveyance which would bind or
affect the land, because the registration of a voluntary sale of land is the
operative act that transmits or transfers title (Tuason v. Raymundo, 28
Phil.635).

2. When portion is sold and the sale is annotated in the owner--‐seller’s title, the
buyer becomes the owner of the portion as of the registration of the sale despite
title being in the name of the owner--‐seller. Alarcon v Baldin 120 SCRA 390
(1983)

The protection given by law is in favor of registered owners. As it is,

although title to the disputed property is still in the name of Roberto Alarcon,
it has been subjected to the registration in 1963 of the sale made by him to
Esteban Sergas. Technically, therefore, the latter became the owner in 1963
of the portion of the land sold to him.

3. Rule extends to sale of real estate as a result of foreclosure or execution sale.

Campillo v CA 129 SCRA 513 (1984)

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 It is settled in this jurisdiction that a sale of real estate, whether made as
a result of a private transaction or of a foreclosure or execution sale, becomes
legally effective against third persons only from the date of its registration

C. Rule that buyer is not required to go beyond the certificate of title,

purchaser in good faith. Centeno v CA 139 SCRA 545 (1985)

1. The purchaser is only charged with notice of the burdens in the property
whichare noted on the face of the title. Ibarra v Ibarra Sr 156 SCRA 616
(1987)

The rationale for this rule is that a person dealing with registered land is
not required to go behind the register to determine the condition of the property.
He is only charged with notice of the burdens on the property which are noted on
the face of the register or the certificate of title. To require him to do more is to
defeat one of the primary objects of the Torrens system. 8

In the instant case, the vendees exercised more than the required degree of
care and prudence before they entered into the sale in question. Aside from
demanding the muniments of title to the lots when the sale of the same was offered
to them by Faustino Ibarra, Sr. the vendees also engaged the services of a lawyer
to detect any flaw in the vendor's title to the land.9

Likewise, it was only after the assurance of the plaintiffs that they do not
object to the sale of the lots because the same were the sole property of their
father that spouses de la Rosa and de Regla entered into the sale in question.

2. But, mere registration is not enough, good faith must concur. CC Art
1544. Vda. De Jomoc v CA 200 SCRA 4 (1991)

The payment made by So is a clear proof of her intention to acquire the

property and the petitioners cannot claim about the respondent backing out. The
sale to the intervenors Lim cannot be recognized because when they bought the
property, there was already a notice of lis pendens and the sale cannot be said to
be in good faith.

Good Faith Defined: Duran v IAC 138 SCRA 489 (1985)

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 Good faith requires a well-founded belief that the person from whom
title was received was himself the owner of the land, with the right to
convey it.

3. Good faith purchase is availed of only on cases involving registered lands,

not applicable to sales involving unregistered land. David v Bandin 149
SCRA 149 (1987)

4. A buyer responding to a newspaper advertisement is in good faith. Sps.

Villamil v Villarosa GR. No. 1777187, April 2009

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