LTD LECTURE – May 12, 2020

In title registration, what you register is the ownership Or the title

- The deed and title of the land

In deed registration, what do you register?

- The transaction as evidence by the Deed executed by the parties

Torrens is a title registration system

- It is not a deed registration system
- It does not register transactions but ownership or interest

Is torrens title a source of ownership right?

- NO

What is the source of the title or ownership then?

- Land Patents can be a source of titles or ownership, who are the parties in this
type of transaction?- state and the applicant

What is the role of the register of deeds in patent issuance then?

- The role of the RD is to register the title of the patent holder

What is the title of the patent holder?

- THE TITLE OF THE PATENT HOLDER IS THAT OF AN OWNER
- His title as an owner of the land acquired through a patent is registered in
the torrens system. Pwede bang hindi ma-register ang patent?

Kung ang ini-reregister ay ownership, ano ginagawa ng RD matapos ma-register and

ownership?
- The RD will cancel thr old title under the name of the State and issue a
new title under the name of the new owner
- Then the RD will issue a CERTIFICATE OF TITLE

How many types of certificate of title does the torrens title system issues?
- Original and transfer cert

Sa initial registration, when will this happen? Upon transmittal of the DENR of the
PATENT or the transmittal of the LRA of the DECREE of Registration

When are TCTs issued?

Director of lands vs Abache

FACTS: Lina Imperial and Santiago Imperial, mother and son, appeared in a cadastral
proceeding andclaimed Lot No. 8305 asserting their ownership and usufructuary right
over the said lot. Santiago Imperial was the sole witness for the claimants. After
hearing, the court awarded the property to them. However, in a written decision
subsequently rendered, the lot was awarded in favor of Adornados, who did not
present any claim nor appeared at the trial. Certificate of Title No. 15150 was issued in
their names. Adornados mortgaged the property to Meneses. Santiago Imperial filed a
motion asking that Certificate of Title No. 15150 and the lien noted thereon be declared
null and void and that a new Certificate of Title be issued in his favor. The court ruled
in his favor. ISSUE: Whether or not the cancellation of Certificate of Title No. 15150 and
the lien noted thereon is proper. HELD: As to the Certificate of Title No. 15150 , the
cancellation is proper. In registration proceedings, a cadastral court has no authority to
award a property in favor of persons who have put in no claims to it and have never
asserted any right of ownership, and the certificate of title issued under the
circumstances to such persons would be declared null and void. As to the cancellation
of the lien, the cancellation is not proper. Where innocent third persons, relying on the
correctness of the certificate of title thus issued, acquire rights over the property,the
court cannot disregard such rights and order the total cancellation of the certificate. The
effect of such an outright cancellation would be to impair public confidence in the
certificates of title, for everyone dealing with property registered under the Torrens
System would have to inquire in every instance as to whether the title has been
regularly or irregularly issued by thecourt. And this is contrary to the evident purpose
of the law. Section 39 of Act No. 496 provides that every person receiving a certificate
of title in pursuance of a decree of registration, and every subsequent purchaser of
registered land who takes a certificate of title for value in good faith, shall hold the same
free of all encumbrance except those noted on said certificate. A new certificate of title
to be issued in favor of Santiago but subject to the mortgage lien of Meneses which
appears duly noted in the certificate to be cancelled.

61. Director of Lands vs. Abache, et al.,G.R. No. L-47566, July 3, 1942 Registration is
void if the registered owner does not claim ownership; Registered interest on void
certificate is recognized if claimant is an innocent purchaser for value.

62. Juan Galanza vs. Sotero Nuesa, GR No. L-6628, August 31, 1954 Sale between the
contracting parties binds them even if not registered; Redemption under Section 119 is
the date of sale in so far as redemption of the land by the patentee is concern

63. Leoncio Lee Tek Sheng v. Court of Appeals and Lee Tek Sheng (G.R. No. 115402,
July 15, 1998) The Supreme Court recognizes that there could be equitable interest in a
registered title; ownership can still be disputed even if the ownership is registered
under the Torrens System

64. Jose Ma. Garcia vs. Court of Appeals, Spouses Magpayo and PBC G.R. No. 133140.
August 10, 1999 Registration does not confer ownership but is merely evidence of such
ownership; the deed of sale operates as a formal or symbolic delivery of the property
sold. CONSTITUTIONAL CHALLENGES OF THE TORRENS SYSTEM

65. Tyler vs. Judges of the Court of Registration, 175 Mass. 71 Petition for prohibition
against the judges of the Court of Registration of Massachusetts because it deprives all
persons except the registered owner of of any interest on the land without due process
of law under the Fourteenth Amendment of the US Constitution.

US at first adopted the Australian version of the torrens system. Several

states enacted torrens legislation patterned after the South Australia Model. In
this model, adjudication and registration is made by the Register of Deeds, an
administrative office. Initial registration is made after a determination of the
Registrar that the applicant has a registrable title. Only if there are issues or
questions or opposition will the court intervene to decide. Otherwise, the
registrar, upon his own investigation and determination, and if he is satisfied
with the eveidence, he will cause registration of the title of the applicant
claimant. When this type of system was introduced in the US, these type of
torrens laws, or legislations was declared UNCONSTITUTIONAL. Sabi ng US
SC, an administrative officer cannot adjudicate, this violates due process because
only the courts can do this. LATER, new version of TORRENS legislations was
filed in the different states after the AUSTRALIAN model was declared
unconstitutional. In this version, instead of the Register, it is the LAND
REGISTRATION COURT, that adjudicates. This new legislation was AGAIN
ATTACKED. Tyler is one of the cases.

But this time the US Supreme Court said, this Torrens System is OK as long as
the adjudication is made through the courts. So in this cases, the US SC said that
notice is duly given through publication. The arguement is if there is no notice,
due process is violated, therefore the TITLE that is issued by the system is not
indefensible since it is subject to the rights of a person with superior rights
because What is the effect of the issuance of a torrens title? Free from any claims.
If it is free from all claims, then a person who has a right will be deprived of his
right because he was not notified. His right over the land will ceased even
though he was not notified of the registration proceedings, this violates his right
to due process.

In this case of Tyler vs. Judges, the Americans are apprehensive of the
torrens system upon the ground that the contemplated proceedings in said court
denied to parties interested due process of law, cannot maintain a writ of error
from this Court to the supreme court of the state without showing that he is
personally interested in the litigation, and has been, or is likely to be, deprived of
his property without due process of law.
 Ano sabi sa Tyler at sa Kerrigan ng US SC?
On Notice by Publication: The legislature may provide entirely novel and
unprecedented methods of procedure, provided that they afford the parties
affected the substantial securities against arbitrary and unjust spoliation which
are embraced within the system of jurisprudence prevailing throughout the
land.

All substituted service must rest upon the ground of necessity. Where, as here,
the summons describing the nature of the action, the property involved, the
name of the plaintiff and the relief sought, is posted upon the property, and is
published in a newspaper for two months, and a lis pendens containing the same
particulars is recorded in the recorder's office and entered upon the recorder's
map of the property, we cannot doubt that, so far as concerns the possible
claimants who are not known to the plaintiff, the notice prescribed by the act is
as complete and full as, from the nature of the case, could reasonably be
expected. (Yang mga cases na yan ang simula ng substituted service by
publication)

In 1898, this type of torrens legislation was passed in Massachusetts. In 1903,

after the Americans acquired the Ph, they cut and paste it and passed Land
Registration Act (Act No. 496). What is the difference between the Australian and
US version of the torrens title of registration? How initial adjudication is made.
In Australia, Canada, and the other commonwealth countries, initial adjudication
is done by an “administrative officer”. In the US, initial adjudication is made by
the courts.

66. Title and Document Restoration Co. v. Kerrigan, 150 Cal, 289 On Notice by
Publication: The legislature may provide entirely novel and unprecedented methods of
procedure, provided that they afford the parties affected the substantial securities
against arbitrary and unjust spoliation which are embraced within the system of
jurisprudence prevailing throughout the land.

67 Robinson vs. Kerrigan, 151 Cal. 40 (1907) Robinson wants to compel defendant judge
to act on his petition for registration under the Torrens System. Kerrigan refused saying
that the act is unconstitutional and void. TORRENS SYSTEM

68. Manuel Grey Alba, et al. vs. Anacleto De la Cruz, G.R. No. 5246, September 16, 1910
Explained the purpose of the torrens system; actual fraud as distinguish from
constructive fraud

69. City of Manila vs Lack, G.R. No. 5987. April 7, 1911 96 The purpose of the Torrens
system is to bring the land titles of the Philippine Islands under one comprehensive and
harmonious system, the cardinal features of which are indefeasibility of title and the
intervention of the State as a prerequisite to the creation and transfer of titles and
interests with the resultant increase in the use of land as a business asset by reason of
the greater certainty and security of title. It does not create a title nor vest one. It simply
confirms a title already created and already vested, rendering it forever indefeasible.

70. Duran v. IAC, GR No. L-64159, Sep. 10, 1985 71. Virginia Yumul vs. Cayetano Rivera
and Julia Rita Dizon, GR No. L-23242, January 26, 1937 Strong presumption exist that
Torrens certificates of title have been regularly issued and are valid;

What is an equitable interests?

- It is an interest in the property that is not registered in the torrens system.
What is registered in the torrens system, a title or an indefeasible title?
- A title, it becomes indefeasible after registration. Indefeasibility is the effect of
registration.

Is registration necessary for a person to acquire ownership of a land?

- no

Is registration necessary to acquire an indefeasible title to the land?

- Yes ( Bakit mayroon equitable owners or interest then?)
- Because there are persons who might have been deprive of their rights due to
faulty registrations.

If registration is necessary to acquire an indefeasible title, are all registered titles

indefeasible?
- No. There is indefeasiblity only if the title is acquired in good faith and for
value

Can an equitable owner who was deprived of his land due to faulty registration
proceed against the registered owner to recover his land?
- If the acquisition of the registered owner is in good faith and for value, such
owner is not subject to any claim that does not appear in the certificate. Even
against a person with a superior rights.

So in an action for reconveyance, the registered owner’s title must not be

INDEFEASIBLE. So, if you will attack a registered title, you need to state that
the registered owner did not acquire the land in good faith and for value.

DISCUSSION GUIDE:

1. Ownership
2. Title
3. Registered Title
 4. Equitable Title
5. Indefeasible Title

6. Initial adjudication
7. Torrens system
8. US Version
9. Australian version
10. Constitutional Challenges
11. Duran vs IAC

ALBA, the court will discuss PH Torrens system:

In the Torrens system title by registration takes the place of "title by deeds" of the
system under the "general" law. A sale of land, for example, is effected by a registered
transfer, upon which a certificate of title is issued. The certificate is guaranteed by
statute, and, with certain exceptions, constitutes indefeasible title to the land mentioned
therein. Under the old system the same sale would be effected by a conveyance,
depending for its validity, apart from intrinsic flaws, on the correctness of a long series
of prior deeds, wills, etc. . . . The object of the Torrens system, them, is to do away with
the delay, uncertainty, and expense of the old conveyancing system. The main principle
of registration is to make registered titles indefeasible. Under this system, the theory of
the law is that upon application, all occupants, adjoining owners, adverse claimants,
and other interested persons are notified of the proceedings, and have have a right to
appear in opposition to such application. It is a proceeding is against the whole word.
The interest of the community at large was considered to be preferred to that of private
individuals. Nations are coming to registration of title to land, because immovable
property is becoming more and more a matter of commercial dealing, and there can be
no trade without security. The registered proprietor will no longer have reasons to fear
that he may evicted because his vendor had, unknown to him, already sold the and to a
third person. The registered proprietor may feel himself protected against any defect in
his vendor's title