FUNDAMENTALS

OF PROPERTY OWNERSHIP
 CONCEPT OF OWNERSHIP
 Ownership is the independent right of a person has in property to the
exclusion of others such as:
 Exclusive enjoyment and control of a property
 Disposition and recovery
 Subject only to the restrictions (limitation on uses)
- established by law and
- rights of others.

For this purpose, the owner may use such force as may be reasonably necessary to
repel an actual or threatened unlawful physical invasion or usurpation of his property.
(Doctrine of Self-Help)
DOCTRINE OF SELF-HELP

 Can only be exercised at the time of actual or threatened dispossession

 Article 536, Civil Code :
 “ In no case may possession be acquired through force or intimidation as long as
there is a possessor who objects thereto. He who believes that he has an action or
right to deprive another of the holding of a thing, must invoke the aid of the
competent court if the holder should refuse to deliver the thing.”
 Application of the Principle of Self-Help
 Owner/Lawful possessor
 Reasonable force
 No delay
 Actual or threatened physical invasion/usurpation
RIGHTS INCLUDED IN
OWNERSHIP
 Fee simple- the highest form of ownership – consists of the so-called “bundle of
rights” which are inherent in or appurtenant to ownership, without any limitations or
restrictions other than those imposed by law or contract.
 Bundle of Rights inherent to ownership:
1. Jus Utendi – right to use
2. Jus Fruendi – right to the fruits
3. Jus Disponendi – right to dispose
4. Jus Abutendi – right to abuse
5. Jus Vindicandi – right to recover (vindicate)
6. Jus Possedendi – right to possess
ACTIONS AVAILABLE TO RECOVER
POSSESSION/OWNERSHIP
 1. Accion Interdictal – Ejectment
-Unlawful Detainer
-Forcible Entry

2. Accion Publiciana- Recovery of the right to possess

3. Accion Reivindicatoria-Recovery of ownership

 LIMITATIONS ON RIGHT OF
OWNERSHIP
1. Those impose in general by the State in the exercise of the:
* Power of taxation, police power, and power of eminent domain.
* They are also called inherent rights of the State

2. Those imposed by law such as:

* Legal easement – setback requirements
* Requirements of legitime in succession
Limitations on inheritance by will; in case there is a will, probate of will by the
court is required and the determination of the legitime, as well.
Legitime is the property reserved by law to compulsory heirs; an illegitimate
child is also a legitimate heir
* Zoning, building code, rent control, urban and agrarian reform, subdivision
regulations, escheat.
3. Those imposed by the grantor of the property on the grantee by contract:
* Such as donation, last will, usufruct (use and the fruits)
* USUFRUCT
- Usufruct gives a right to enjoy the property of another with the obligation of
preserving its form and substance, unless the title constituting it or the law
otherwise provides.
- The usufructuary shall be entitled to all the natural, industrial and civil fruits of
the property in usufruct. With respect to hidden treasure, which maybe found on
the land or tenement, he shall be considered a stranger.
4. Those imposed by the owner himself:
* Such as voluntary easement, lease, mortgage.
* Easement / Servitudes
- Easement or servitudes is an encumbrance imposed upon an immovable for
the benefit of another immovable belonging to a different owner.
- Servient estate – the one giving easement
- Dominant estate – the one asking for an easement
 * Easements are established either by:
- Law or legal
- Will of the owners (voluntary easements)
* Continuous and apparent easements are acquired either by virtue of a:
- Title or
- By prescription of 10 years. Non-use also for 10 years is a cause for
extinguishment of easement
 The banks of rivers and streams, even in case they are of private ownership, are
subject throughout their entire length and within a zone of three (3) meters along
their margins, to the easement of public use in the general interest of navigation,
floatage, fishing or salvage.
 A landlocked owner is entitled to demand a right of way through the neighboring
estates after payment of proper indemnity. (Art. 649 CC.) Right of way should be
established at the point that is least prejudicial to the servient estate. Width should
be sufficient for the needs of the dominant estate.
 A distance of at least 2 meters from the dividing line of the estates (boundary line) if
tall trees are planted or at least 50 centimeters if shrubs or small trees are planted.
(Art. 679 CC)
 Fruits naturally falling upon adjacent land belong to the owner of said land. (Art. 681
CC.)
KINDS OF OWNERSHIP
1. Sole ownership – benefits and property interest are undivided; “whole property
interest”
2. Co-ownership – benefits are presented in proportion to the co-owners; primary
property interest is undivided; undivided primary property interest is a whole interest
Rules on Co-ownership:
Article 484 of Civil Code states:
* There is co-ownership whenever the ownership of an undivided things or right
belongs to different persons.
* There is no co-ownership when the different portions owned by different people are
already concretely determined and separately identifiable, even if not yet
technically described.
Article 493 of the Civil Code:
* A co-owner may sell his right over an undivided portion to the extent owned by him.
If the co-owner sells the whole property as his, the sale will affect only his share but
not those of the co-owners who did not consent to the sale. No co-owner is obliged to
remain in the co-ownership and co-owner may demand at anytime partition of the
thing owned in common.
Article 1612, 1889,1514 of the New Civil Code:
* The right to repurchase may be exercised by a co-owner to the extent of his share
alone.
* Right of pre-emption or redemption
Article 1623 of the Civil Code:
* The right of legal pre-emption or redemption shall not be exercised except within 30
days from the notice in writing by the prospective vendor. The Deed of Sales 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.
3. Diverse ownership – benefits are assorted into different kinds.
* Example: Different owners or shareholders in a corporation.
4. Condominium ownership – combination of sole and co-ownership
* Sole ownership – refers to condominium unit susceptible to independent use
* Co-ownership – in condominium project, unit owners are co-owners on land and
common areas of the building – these are non-alienable areas of the condominium
project.
SURFACE, SUBSURFACE AND AIR
RIGHT

Land, in its legal signification, extends from the surface downwards to the center of
the earth and extends upwards indefinitely to the skies.
The surface and subsurface rights of an owner entitle him to construct thereon any
works or make any plantations and excavations without detriment to servitudes and special
laws.
Air right is the right of an owner to use and control the air space over his land subject
to the requirements of aerial navigation, laws, or contract.
RIGHT TO HIDDEN TREASURE

1. Hidden treasure belongs to the owner of the land, building, and other property on
which it is found.
2. When the discovery is made on the property of another, or of the State or any of its
subdivisions, and by chance, one-half of the treasure shall be allowed to the finder. If
the finder is a trespasser, he shall not be entitled to any share of the treasure.
3. If the things found be of interest to science or arts, the State may acquire them at
their just price, which shall be divided in conformity with the rule above.
4. Hidden treasure, for legal purpose is understood to be any hidden and unknown deposit
of money, jewelry, or the precious objects, the lawful ownership of which does not
appear.
RIGHT OF ACCESSION
1. In General – The ownership of property gives the right by accession to everything which is
produced thereby, or which is incorporated or attached thereto, whether naturally or
artificially.

2. With Respect to Produce of Property – to the owner belongs the:

a) Natural Fruits – the spontaneous product of the soil.
b) Industrial Fruits – those produce by land cultivation or labor.
c) Civil Fruits – the rental income of building and/or lands.

3. With Respect to Immovable Properties

a) To the owners of land adjoining the banks of rivers belong the accretion that they
gradually receive from the effects of the current of the water.
Accretion is the process by which soil is deposited to lands adjoining rivers by
the action of the river current or other natural process, thereby increasing the
area of the land.
Alluvium refers to the mud, clay or soil gradually deposited by the process of
accretion
b) The owners of estates adjoining ponds or lagoons do not acquire the land left dry by the
natural decrease of the waters, or lose that inundated by them in extraordinary floods.
 c) Riverbeds that are abandoned through the natural change in the course of the
waters belong to the owners whose lands are occupied by the new bed in proportion
to the area lost. However, the owners of the land adjoining the old bed shall have the
right to acquire the same by paying the value thereof, which value shall not exceed the
value of the area occupied by the new bed.

 d) Whenever a river, changing its course by natural causes, opens a new bed through a
private estate, the bed shall become a public dominion.
PRINCIPLES IN PROPERTY OWNERSHIP
 Principle of Res Nullius
 Everything on earth must have an owner
 If there is no private claimant or owner to the property, that particular property
belong to the State
 When a person dies without any heir, the State succeeds to the estate of the
deceased
The REGALIAN DOCTRINE
Everything in the country without a registered owner is owned by the State
Principle that all natural wealth – agricultural, forest, or timber and mineral
lands of the public domain and natural resources belong to the State.
STEWARDSHIP CONCEPT OF OWNERSHIP
As a steward, the property owner is obliged to use or exercise his right to the
property not just for his own exclusive benefit or interest but to promote the
general welfare of the nation as a whole.
As a steward, the owner holds the property in trust in favor of the people in
general.
MEANING OF TITLE
“Title” is not synonymous with Torrens Certificate of Title. Rather, it is a generic word
which means proof, evidence, or muniment of ownership, such as tax declaration, realty tax
receipts, deed of sale, and Torrens certificate of title. But, of course, the best title or best
evidence of ownership is the Torrens title because it is indefeasible, imprescriptible, and
binding against the whole world.

Land title
* Refers to that upon which ownership is based;
* It is the evidence of the right of the owner or the extent of his interest where he can
maintain control;
* and Assert right to exclusive possession and enjoyment of property

Possession and ownership

* Possession may signify outward evidence of title, but it is not necessarily the title itself
* Ownership refers to evidence of right over the property.
* One may possess a property but not own it like in lease or in the case of informal
settlers.
Article 524 of the Civil Code: Ownership by possession
* Possession is meant exercised either by the same person who holds and enjoys the
property or; (material possession) or
* By another in his name (symbolic possession which is acquired by the execution of a
public instrument.)

Muniments of title
* Instruments or written evidences that the applicant holds or possesses to enable him
to substantiate and prove title to his state.

Quieting of title
* Whenever there is a cloud on title to real property or any interest and therein, by
reason of any instrument, record, claim, encumbrance, or proceeding which is
apparently valid or effective but it is truth and in fact invalid, ineffective, voidable,
or unenforceable, and may be prejudicial to said title, an action may be brought to
remove such cloud or to quiet the title. The plaintiff must have legal or equitable
title to, or interest in the real property, which is the subject matter of the action. He
need not to be in possession of the property.
MODES OF ACQUIRING TITLE
1. Private Grant – voluntary transfer or conveyance of private property by a private
owner, such as sale or donation.
2. Public Grant – acquisition of alienable lands of the public domain by homestead patent,
free patent, sales patent or other government awards.
3. Involuntary Grant – acquisition of private party against the consent of the former
owners, such as foreclosure sale, execution sale or tax sale.
4. Inheritance – acquisition of private property through hereditary succession.
5. Reclamation – filling of submerged land, subject to existing laws and government
regulations.
6. Accretion – acquisition of more lands adjoining the banks of rivers due to the gradual
deposit of soil as result of the river current.
7. Prescription – acquisition of title by actual, open, continuous, and uninterrupted
possession in concept of owner for the period required by law.
RIGHT TO OWN

1. General Rule – Only Filipino citizens and corporations at least sixty percent of the
capital of which is owned by Filipinos are entitled to acquire and own land in the
Philippines.

2. Exceptions to General Rule – Alien acquisition of real estate in the Philippines is

allowed in the following cases:
* Acquisition before the 1935 Constitution.
* Acquisition thru hereditary succession if the acquire is a legal heir.
* Purchase of not more than forty percent interest in a condominium project.
* Purchase by former natural born Filipino citizens subject to limitations prescribed by
B.P. 185 and R.A. 8179.

3. A Filipina who marries an alien retains her Philippine citizenship (unless the law of her
husband’s country makes her assume the citizenship of her husband because of such
marriage) and can therefore acquire real estate in the Philippines.
ACQUISITION BY FORMER NATURAL BORN
FILIPINO CITIZENS
1. MODE OF ACQUISITION
- not limited to voluntary deeds such as sale or donation
- but includes involuntary deeds such as foreclosure, execution or tax
delinquency sale

2. Maximum area that may be acquired:

a) For residential purposes- BP 185
- 1,000 square meters of urban land or
- 1 hectare of rural land
b. For business purpose- RA 8179
- 5,000 square meters of urban land or
- 3 hectares of rural land
Business Purpose refers to the use of land primarily in the concept of
business or commercial activities in the broad areas of agriculture, industry and services
including the lease of land but EXCLUDING the buying and selling thereof.

3. In case of married couple where both spouses are former natural born citizens,
both of them may avail of the right provided that the total acquisitions shall not
exceed the maximum area allowed.
4. A transferee who acquired urban or rural land for residential purpose while
still a Filipino citizen may acquire additional urban or rural land for residential
purpose which, when added to that already owned by him, shall not exceed the
maximum area allowed by law.
5. A transferee who has already acquired urban land for residential purposes shall
be disqualified to acquire rural land for residential purpose and vice versa.
However, a transferee of residential land under BP 185 may still avail of the
right to acquire land for business purposes under RA 8179.
Private Grant-like sale, assignment,
exchange and donation
Statute of Frauds
• states that agreements in order to be enforceable must be in writing and
subscribed by the party charged, like an agreement for sale of real property.
Registration is needed to bind third persons. The deed of conveyance confers
title while registration confirms ownership.
Contracts
• Article 1358 of Civil Code which requires the embodiment of certain contracts
in public instrument, is merely for convenience; and registration of the
instrument only adversely affects third parties, and non-compliance therewith
does not adversely affect the validity of the contract.
Perfection/Consummation of Contract
• Contract is perfected by mere consent– at the moment where there is
meeting of minds. A contract of sale is deemed CONSUMATED when the seller
and buyer have performed their respective obligation, for the seller to deliver
the thing sold and for the buyer to pay a price certain to the seller.
• There is consummation if there is already payment and delivery of ownership through a
deed. In real estate brokerage, the broker is entitled to his commission upon
consummation not perfection of the contract.
CONVEYANCE OF ONLY A PORTION OF THE LAND
The Register of Deeds shall not enter any new title in favor of the new grantee until a
PLAN indicating the portions into which the land has been subdivided shall first be presented,
together with the technical descriptions thereof. Meantime, the deed of conveyance may be
annotated at the owner certificate of title.
SALE OF CONJUGAL/COMMUNITY PROPERTY
• The Family Code, which took effect August 3, 1988, provides that any alienation or
encumbrance made by the husband of the conjugal/community property without the
consent of the wife is VOID.
RULE IN CASE OF DOUBLE SALE OF REAL PROPERTY--Article 1544 of the Civil Code:
Who has better right if property was sold to 2 or more buyers?
1. Registration: Buyer in good faith who first registered the sale
2. Possession: No registration, good faith plus possession
3. Oldest title: No registration, no possession, buyer in good faith who can
show oldest title(any proof of ownership)
4. Rule of Notice: it is presumed that the purchaser has examined every
instrument of record affecting the title. It is a rule of law. Caveat Emptor- let the
buyer beware.
5. Before buying: Conduct due diligence on property to be bought
  DONATION
Observed
Donation is an act of gratuitously transferring property or rights motivated by the
liberality of the giver(donor) in favor of the receiver(donee) who accepts it. The
transfer of property or rights includes not only the transfer of ownership or title BUT
ALSO the passage of control over the economic benefits of the property.

KINDS OF DONATION
1. Donation mortis causa- the donation which takes effect upon the death of the
donor. It is governed by the formalities of testamentary disposition which shall be
observed based on the law of succession and to imposed with estate tax.
Characteristics:
1. The transferor retains the full ownership (full or naked) and control of
the property before his death.
2. The transfer is revocable by the transferor at will, or the donor reserved
the power to dispose the properties conveyed.
3. The transfer is void if the transferor should outlive the transferee.
2 Donation inter vivos- the donation which takes effect during the lifetime
of the donor and subject to donor’ tax.
Essential requisites:
1. Capacity of the donor
2. Donative intent
3. Delivery of the gift
4. Acceptance of the donated property

FORMALITIES OF DONATION

Verbal/ oral- where the value of personal property is P5,000.00 or less

with simultaneous delivery of the thing or document representing the
right donated.

In Writing – where the value of the personal property donated exceeds

P5,000.00

In Public Instrument- where the property donated is a real property.

General renunciation by an heir, including the surviving spouse, of his/her share in
the hereditary estate left by the decedent is not subject to donor’s tax. If the
renunciation is specifically and categorically done in favor of identified heir(s) to
the exclusion or disadvantage of the other co-heirs in the hereditary estate, such
renunciation is subject to donor’s tax. (Section 11, par 4, Revenue Regulations
No. 2-2003).

Conjugal/Community Donation
- if conjugal or community property is donated, consent of either spouse is
required, except in cases where there is moderate donations for charity or on
occasion of family rejoicing or family distress.

- Spouses who make donation out of conjugal/community property shall be

considered a separate donor of his or her interest in the conjugal/community
property.

Donation made between husband and wife during marriage is void and not subject to
donor’s tax. This is also applicable to man and woman living together as husband and
wife without a valid marriage. (Article 87, Family Code).
Public Grant - transfer of government land to private
individual
CLASSIFICATION OF GOVERNMENT LANDS
1. Lands of public domain
-Alienable –may subject of grants
-Non-alienable
2. Lands of private domain
- Lands belonging to the state in its private capacity, similar to
patrimonial properties of the State. These can be lands of
public domain before, however, no longer intended for public
use or public service.
CLASSIFICATION OF LANDS OF PUBLIC DOMAIN
- Exclusive prerogative of executive department not of the court
- Classification under the 1987 Constitution
- -Agricultural , forest or timber, mineral and national parks
- - All others under the 1987 Constitution are patrimonial
properties
- No land of public domain can be acquired except by grant from
the State(homestead patent, free patent, sales patent or other
government awards).
LANDS OF PUBLIC DOMAIN- ITS
ACQUISITION
 1. Under the Constitution, the lands of the public domain are classified into agricultural, forest or
timber, mineral and national parks.
 2. Alienable lands of public domain shall be limited to AGRICULTURAL LANDS.
 3. Section 3, Article X11 1987 Constitution(Ownership of government land)
Citizens of the Philippines
- may lease not more than 500 hectares
- acquire not more than 12 hectares by
a. purchase (sales patent) sold through sealed bidding
Applicant shall have not less than 1/5 of the land cultivated in
5 years from the date of award.
b. Homestead (18 years old or head of the family)
c. Free Patent
d. Special Patents issued by the President of the Philippines like
- Public Estates Authority (January 19, 1988) now Philippine Reclamation
Authority (Mall of Asia area)
- Three reclaimed areas at Manila Bay called Freedom Islands covered by
TCT Nos. 7309, 7311 and 7312 in the name of Philippine Estate Authority
 4. Private corporations cannot acquire, but may only lease alienable lands of public domain for a
period not exceeding twenty five (25) years, renewable for the same term, and not to exceed one
thousand (1,000) hectares.
Free Patent- 1987 Constitution
 Any natural born citizen of the Philippines who is not the owner of more than 12
hectares and who, for at least 30 years including his predecessor-in-interest has
continuously occupied the land shall be entitled to an area not to exceed 12
hectares.
 A Torrens title issued on the basis of the free patent becomes as indefeasible as
one that is judicially secured upon the expiration of one year from the date of
issuance of patent.

FREE PATENT (RA 10023) –The New Residential Free Patent Law of
2010(March 9, 2010)
Qualifications:
 Any Filipino citizen who is an actual occupant of residential land
 Provided, that in highly urbanized cities, the land should not exceed 200 square
meters
 In other cities, it should not exceed 500 square meters
 In first class and second class municipalities, it should not exceed 750 square
meters
 In all other municipalities, it should not exceed 1,000 square meters
 Provided further, that the land applied for is not need for public service and/or
public use
COVERAGE:
- All lands that are zoned as residential areas , including town sites as
defined under the Public Land Act, provided, that none of the
provisions of PD 705 have been violated.
- Zoned residential areas located inside a delisted military reservation
or abandoned military camp and those of local government units or
town sites which preceded RA 7586(National Integrated Protected
Areas System).
APPLICATION:
- Must be supported by a map based on an actual survey conducted by a
licensed geodetic engineer and approved by the DENR, and a technical
description of a land applied for together with supporting affidavit of
two disinterested persons who are residing in the barangay of the city or
municipality where the land is located, attesting to the truth of the
facts contained in the application to the effect that the applicant
thereof has, either by himself or through his predecessor-in-interest,
actually resided on and continuously possessed and occupied, under a
bona fide claim of acquisition of ownership, the land applied for at least
ten years and has complied with the requirements prescribed.
 EMANCIPATION PATENT, NOW CERTIFICATE OF LAND
OWNERSHIP AWARD
- PD 27, tenant farmers are deemed owners of land they till
- While the tenant farmer is given the CLOA, this does not make him the full owner
until after he shall have complied with certain obligations, namely:

a. he should be a member of a cooperative created for that purpose

b. pay the landowner the full value within 15 years by amortization
c. To pay real property tax of the land
- PD 27 has been superseded by RA 6657 ( The Comprehensive Agrarian Reform
Program of 1988)
- Land acquired under RA 6657 is not transferable except by:
a. Hereditary succession
b. in favor of the government
c. in favor of qualified beneficiaries after the lapse of 10 years from the date of
award
 RA 9700- CARPER

 Extended RA 6657 (Comprehensive Agrarian Reform Program) for another

5 years
 5 hectares and below-not covered by the program
 Coverage
- Alienable and disposable public domain lands suitable for agriculture
- 50 hectares and above with notice of coverage issued on or before
December 10, 2008
- 24-50 hectares without notice (public agricultural land)
- All remaining private lands in excess of 24 hectares with or without
notice
- Above 10 has. to 24 has. (private lands)
 RA 9700: CARPER

 Land acquisition must be completed by June 30, 2014

 Award ceiling for beneficiaries: 3 hectares
 Payment of beneficiaries: 30 years at 6% per annum to Land Bank
 Default: Non-payment of 3 annual amortizations- subject to foreclosure
by the Land Bank
 Awarded lands shall not be sold to non-beneficiary of the program
 May be disposed before 10 year period only to government , Land Bank or
program beneficiaries
 May be disposed or encumbered after 10 years from date of registration
 Conversion is allowed after 5 years if applicable
 No conversion on irrigated lands
 Penalties: 3 years imprisonment or P15K fine or both-maximum penalty
Public Domain/Dominion VS Patrimonial
Property- when prescription apply
 Public dominion cannot be acquired by prescription even by city or
municipality
 Patrimonial property of the State may be subject of acquisition through
PRESCRIPTION.
 Public lands become patrimonial property upon express government
manifestation that the property is already patrimonial and declaration that
these are already alienable and disposable.
 And only when the property has become patrimonial can the prescriptive
period for acquisition of property of public dominion begin to run.
 Article 1113 of the Civil Code:
 All things that are within the commerce of man are susceptible to prescription,
and that property of the State or any of its subdivisions not patrimonial in
character shall not be the object of prescription.
Examples of public dominion:
-those intended for public use such as roads and rivers
-those which belong to the State, without being for public use, and are intended for
some public service or development of national wealth.
Liens, Encumbrances, Lis Pendens,
Adverse Claim
 Lien – a charge on property usually for the payment of some debt or
obligation – a qualified right which may be exercised over the property of
another.
 Encumbrance is a burden on land, depreciative of it’s value, such as a lien or
easement.
 Lispendens is an announcement to the whole world that a particular real
property is in litigation. Lispendens literally means a pending suit.
 Lispendens is not a lien or encumbrance under our civil law. It is merely a
cautionary notice to prospective buyers of real estate that said property is
under litigation. It impose obligation not to the owner but to the buyer.
 Adverse claim – a claim or interest in registered land adverse to the
registered owner.
 INVOLUNTARY GRANT
 Does not require consent or cooperation of the owner
 Examples:
- In expropriation cases (eminent domain)
- Execution sale by the sheriff to satisfy a money judgment
- Foreclosure sale of mortgaged property
- Tax sale
 Title cannot be defeated by adverse claim.
 Registration of adverse claim is divided into 2 parts:
• First: refers to petition of the party who claims any part or interest in
registered land arising subsequent to the date of original registration
• Second: refers to the petition filed in court by a party in interest for the
cancellation of the adverse claim upon a showing that the same is invalid.
While the law states that adverse claim shall be effective for a period of
thirty (30) days from the date of registration, however, the cancellation is
still necessary to render it ineffective, otherwise, the inscription will
remain annotated and shall continue as a lien upon the property.
Statutory Liens Affecting Title

 First: Claims or rights arising or existing under the laws and Constitution of
the Philippines
 Second: Unpaid realty taxes
 Third: Any public highway or private way established or recognized by law, or
any government irrigation canal or lateral thereof, if the certificate of title
does not state that the boundaries of such highway or irrigation canal or
lateral thereof have been determined
 Fourth: Any disposition of the property or limitation on the use thereof by
virtue or pursuant to PD27 or any other law or regulations on agrarian reform.
Cancellation of Lis Pendens

 Before the final judgment, the notice of lispendens maybe cancelled:

* Upon order of the court;
* Upon action of the RD at the instance of the party who caused the
registration of the notice; or
* Upon verified petition of the party who caused the registration
thereof.
Encumbrance
An encumbrance is a charge, claim or liability on real estate. It may reduce a
property’s value or place restrictions on how it can be used; however, it does not
necessarily prevent title to the property from transferring to someone else.

Encroachment
Encroachments are unauthorized physical intrusions of a building or other form
of real property onto an adjoining property. It can mean a trespass, and the
owner of the property being encroached on can take court action either to force
the removal of the encroachment or to recover damages.
An encroachment of long-standing use may result in an easement right by
prescription or adverse possession.
Easement
An easement is the right to use someone’s land. The right may be to use the land’s surface or the air
space above it. It is also called a non-possessory interest in real estate because they give the easement
holder the right to use the property but not to possessit.

Kinds of Easement
1. Appurtenant easement
• allows the owner of a parcel of land to use the land next to it:
*Servient estate – the one giving the right-of-way or easement
*Dominant estate – the parcel of land that benefits from the easement
2. Easement by Necessity
• Owners of land have the right to enter (ingress) and leave (egress) their property, to prevent them
from becoming land-locking, making the property useless.
3. Easement by Prescription/ Prescriptive Easement
• A claimant uses another’s Land for a period of time as defined by state of law.
• Usual requirements to acquire prescriptive easement:
* Uninterrupted use of the property
* Use must be continuous
* Use must be adverse, without the owner’s consent
* Use must be visible, open and notorious, so that the owner can easily learn from it.
Deed of Restrictions

There are conditions or limitations placed in a deed by the owner when property
is transferred to another party. It is usually created by individual parties and
effects a particular property.
Those conditions placed in the deeds by developers and usually affect an entire
subdivision are called restrictive covenants.
If restrictions placed are unreasonable or unlawful restraints on an owner’s use of
the land, they will be unenforceable.
Liens (Money Claim)

There are claims or charges against the property to provide security for a debt or
obligation. A lien allows the creditor to have the property sold to satisfy the debt in
case of default. To enforce it, the creditor must take legal action and obtain a court
order to have the property sold.

Liens against real estate may reduce the value of the property; however’ the owner
can still convey title to another party.

• General (Ad Valorem) Real Estate Tax Lien

- The right of the government to sell a property at a tax sale to satisfy
outstanding tax delinquencies, plus interest and penalties.
- The delinquent property owner has a right of redemption, considering that
he/she pays all obligations before (equitable redemption right) or after
(statutory redemption right) the tax sale
• Mortgage Lien
- A specific, voluntary lien created after a lender makes a loan using
real estate as security. The property owner signs a mortgage document
that creates lien against the property.

- The lien automatically ends after payment of loan. If loan is unpaid,

the lender may foreclose and sell the property.

Mechanics Lien