CLASSIFICATION OF PROPERTY (IMMOVABLE OR HEIRS OF ROXAS VS CA

MOVABLE)
Requisites for reopening of proceedings for registration of
BURGOS VS AFP land acquired through actual fraud:
Laches is failure or negligence for an unreasonable and 1.Filed within one (1) year from the date of entry of the
unexplained length of time to do that, which by exercising decree of registration
due diligence, could or should have done earlier.
2.Petitioner has a real and dominical right over the land
Machinery is movable in nature and only becomes 3.Property has not yet been transferred to an innocent
immobilized when placed by the owner of the tenement,
property or plant but not so when placed by a tenant, purchaser for value
usufructuary or any other person having only a temporary
right unless such person acted as the agent of the owner.
Only actual fraud or extrinsic fraud has been accepted as
Machinery placed by a tenant is a personal property and is grounds for a judgment to be annulled.
a valid subject of a warrant for search and seizure.
*Actual fraud
BERKENKOTTER VS CU UNJIENG
1.proceeds from an intentional deception practiced by
Machinery and equipment do not lose its permanent means of the misrepresentation or concealment of
character by incorporation even if they have been used as material facts
security in a chattel mortgage.
2.an intentional omission of fact required by law
DAVAO SAW MILL VS CASTILLO
Machinery is movable in nature and only becomes
*Extrinsic fraud
immobilized when placed by the owner of the tenement,
property or plant but not so when placed by a tenant, 1.also actual fraud but collateral to the transaction sued
usufructuary or any other person having only a temporary upon
right unless such person acted as the agent of the owner.
2.act prevents a party from having a trial or presenting his
It does not form part of the improvements and buildings entire case to court
which ownership will pass to the lessor upon the expiration
3.operates upon matters pertaining not to the judgment
of the lease. itself but to the manner in which it is procured so that
PUNSALAN VS VDA DE LACSAMANA there is not a fair submission of the controversy

Building is a real or immovable property even if mortgaged

or treated separately from the land it is built on. *Constructive fraud is construed as a fraud because of its
Actions involving a building are a real action and should be detrimental effect upon public interests and public or
filed within the jurisdiction of the court where the same is private confidence; even though the act is not done or
located. committed with an actual design to commit positive fraud
or injury upon other persons.
LEUNG YEE VS STRONG MACHINERY
Intrinsic fraud is where fraudulent acts pertain to an issue
In real property, ownership belongs to the: involved in the original action or where the acts
constitution the fraud were or could have been litigated
1. person who first registered it the registry of deeds
therein.
2.person who first took possession of it in good faith
Publication of notice of initial hearing in a newspaper of
3.person who present the oldest title, provided there is general circulation is an indispensable procedural
good faith requirement. It is material and relevant in assessing the
applicant’s right or title over the land.
LLANES VS REPUBLIC
PEOPLE’S BANK VS DAHICAN
Requisites for registration of land
MINDANAO BUS CO. VS CITY ASSESSOR
1.Property in question is alienable and disposable land of
Machinery, liquid containers, instruments or implements to
public domain
be considered as an immovable property must be intended
by the owner of any building or land for use in connection 2.Applicant themselves or through their predecessors-in-
with any industry or trade being carried on therein and interest should have been in open, continuous, exclusive
which are expressly adapted to meet the requirements of and notorious possession of the land and occupation
such trade or industry.
3.Such possession has been under bonafide claim of
Equipments destined only to repair or service the
transportation business which is not carried on in a ownership since June 12, 1945
building or permanently on a piece of land may not be
deemed as real property and cannot be a subject of real REPUBLIC VS CA, TRB
estate tax.
SERG PRODUCTS INC VS PCI LEASING HEIRS OF ROXAS VS GARCIA
Despite the immovable nature of a property, parties may
stipulate and treat it as a personal property. In doing so, If the property has already passed into the hands of an
they are estopped from contending the immovability of the innocent purchaser for value, the remedy is to file and
property. action for damages against the person who allegedly
registered the property through fraud or if he had become
BOA VS MERALCO
insolvent or if the action is barred by prescription to file an
A steel tower which is not among those classified under action for recovery against the Assurance Fund under
Article 415 as immovable property, moreover the same Section 95 of PD 1529 within a period of six years from the
being removable and merely attached to a square metal time the right to bring such action accrues.
frame by means of bolts, which when unscrewed could
PILAPIL VS CA
easily be dismantled and moved from place to place
cannot be a subject of real property tax as they are not The affect of sale of land, the deed of sale and its entry in
attached to an immovable in a fixed manner. the day book must be done with the surrender of the
owner’s duplicate of the certificate of title.
REGISTRATION OF UNREGISTERED LANDS
It is required under Section 55 of Act 496 (now Section 53
of PD 1529), registration shall only retroact to the date of being the registration applied for. Movants as intervenors-
entry in the day book upon compliance however, failure to oppositors to the land registration proceedings must first
comply will not invalidate the claim of ownership file a motion to lift the order of general default before they
considering the factual circumstances. can be allowed to intervene or oppose in the said
proceeding.
TAN BUTO VS LUY
DIRECTOR OF LANDS VS CA
Sales patent issued in accordance with the Public Land Act
and registered in conformity with the provisions of the Alienable public land held by a possessor, personally or
Land Registration Act (Act 496) becomes irrevocable and thru his predecessors-in-interest, openly, continuously, and
enjoys the same privileges as Torrens title issued exclusively for the prescribed statutory period (30 years
under the Public Land Act, as amended) is converted to
thereunder. It cannot be the subject of collateral attack.
private property by the mere lapse or completion of said
The lower court cannot decree again the registration of period, ipso jure.
land already decreed in an earlier land registration case
As an applicant possessor who has complied with all the
thus making the second decree null and void. necessary requirements for the grant by the government
SERNA VS CA under the Public Land Act through actual possession,
openly, continuously, and publicly, private respondent
Adjudication of land in a registration case does not become through his predecessor-in-interest is deemed to have
final and incontrovertible until the expiration of one (1) already acquired by operation of law not only a right to a
year after the entry of final decree. Thereafter, it becomes grant but the grant itself of the government for it is not
incontrovertible and no longer subject to reopening or necessary that a certificate of title be issued in order that
review except when the right of a person deprived of land said grant may be sanctioned by courts — an application
through fraud. therefore being sufficient under the law.
An action based on implied or constructive trust prescribes Admission that the land in question is a public land does
in ten (10) years from discovery of fraud which is deemed not divest the applicant of the right which is already vested
to have taken place from the issuance of the certificate of in him.
title. REGISTERED LANDS
HEIRS OF LOPEZ VS ENRIQUEZ SAJONAS VS CA
Purpose of lis pendens (pending litigation) The adverse claim shall be effective for a period of thirty
1.To protect the rights of the party causing the lis pendens days from the date of registration. After the lapse of said
period, the annotation of adverse claim may be cancelled
2.To advise third person who purchase or contract on the upon filing of a verified petition therefore by the party in
subject property that they do so at their peril and subject interest. Provided, however, that after cancellation, no
to the result of the pending litigation second adverse claim shall be registered by the same
claimant.
The levy on execution shall create a lien in favor of the
Effects of lis pendens
judgment creditor over the right, title and interest of the
1.Keeps the subject matter of litigation within the power of judgment debtor in such property at the time of the levy,
the court until the entry of the final judgment to prevent subject to liens or encumbrances then existing.
the defeat of the final judgment by successive
A purchaser in good faith and for value is
alienations
1.one who buys property of another without notice that
2. It binds a purchaser, bonafide or not, of the subject some other person has a right to or interest in such
of the litigation or decree that the court will promulgate property
subsequently
2.pays a full and fair price for the same
3.at the time of such purchase, or before he has notice of
Notice of lis pendens may involve action dealing with title the claims or interest of some other person in the
or possession and use or occupation of property such as: property.
1.Recovery of possession
2.Quieting of title *Good faith consists in an honest intention to abstain from
3.Removal of clouds taking an unconscientious advantage of another.

4.Partition The purchaser in good faith who already caused the

annotation of an adverse claim based on a contract of sale,
5.Other actions involving use or possession was subsequently able acquire the property upon payment
of the full price and to whose favor a deed of sale was
executed has the right over the property which is being
Not applicable to levied thereafter based on an execution against the seller.
1.Preliminary attachment SANDOVAL VS CA
2.Probate of wills The Court has held that a fraudulent or forged document of
3.Levy on execution sale may give rise to a valid title if the certificate of title of
has already been transferred from the name of the true
4.Administration of estate owner to the same indicated by the forger and while it
5.Sum of money remained as such, the land was subsequently sold to an
innocent purchaser. 13 Unquestionably, the vendee had the
right to rely upon the certificate of title.
Reconveyance It is settled doctrine that one who deals with property
1.an action in personam registered under the Torrens system need not go beyond
the same, but only has to rely on the title. He is charged
2.available to a person whose property has been with notice only of such burdens and claims as are
wrongfully registered under the Torrens system in
annotated on the title except when:
another’s name
1.the party has actual knowledge of facts and
3. always available as long as ownership is not yet circumstances that would impel a reasonably cautious
passed to an innocent third person for value. man to make such inquiry
2.the purchaser has knowledge of a defect or the lack of
Proceedings in land registration are in rem, the sole object title in his vendor
3.sufficient facts to induce a reasonably prudent man to publication should be the point of reference.
inquire into the status of the title of the property in
litigation. The point of reference in establishing lack of jurisdiction of
the trial court was only on that date when the notice was
made known to the people in general. Verily, the late
The presence of anything which excites or arouses publication of the notice defeated the purpose for its
suspicion should then prompt the vendee to look beyond existence thereby reducing it to a mere pro forma notice.
the certificate and investigate the title of the vendor AMANSEC VS MELENDEZ
appearing on the face of said certificate.
Denied appeal on the decision of the lower court denying
One who falls within the exception can neither be the complaint for reconveyance on the ground of
denominated an innocent purchaser for value nor a prescription.
purchaser in good faith; and hence does not merit the
protection of the law. Petitioner failed to bring the action within 10 years;
actually it took him 24 years to file an action.
LAVIDES VS PRE
The cause of action of the petitioners-appellants for the
An owner of registered land may convey, mortgage, lease, reconveyance to them of the title to the land in question
charge, or otherwise deal with the same as fully as if it had arose when Original Certificate of Title was issued by the
not been registered. x x x But no deed, mortgage, lease, or Office of the Register of Deeds of Pangasinan. The issuance
other voluntary instrument, except a will, purporting to of said original certificate of title constituted constructive
convey or affect registered land, shall take effect as a notice to the public including the petitioners-appellants.
conveyance or bind the land, but shall operate only as a
contract between the parties and as evidence of authority MARCELINO VS CA, LACTAOEN
to the clerk or register of deeds to make registration. The A petition for certiorari seeking to annul the decision of CA,
act of registration shall be the operative act to convey and affirming the lower court’s decision dismissing the
affect the land, and in all cases under this Act the complaint for recovery of possession on the ground of
registration shall be made in the office of the register of laches which was denied by the SC
deeds of the province or city where the land lies.
Respondents were in possession of the land for 50 years
A conveyance to be operative must be registered in the but petitioners never asserted their right over it despite
office of the register of deeds of the province or city where the possession of title over the same.
the property is located.
The petitioner's long inaction in asserting their right to the
GUERRERO VS CA contested lots bars them from recovering the same. The
An action for reconveyance on the ground of fraud in the law serves those who are vigilant and diligent and not
registration of land is not barred by prescription, as the those who sleep when the law requires them to act
Torrens system of registration is not intended to shield CATHOLIC BISHOP VS CA, TORRICO
fraud and further that registration is not a mode of
acquiring ownership. A denied petition for review of a CA decision reversing the
order of the lower court for the respondent to vacate and
A decree of registration based on a false cadastre that surrender possession of the property owned by the
eventually led to the issuance of a certificate of title is null petitioner
and void.
Said land was donated to the aunt of the respondent who
CACHO VS CA gave it to him as a gift which he accepted and thereafter
A land registration proceeding is "in rem," and, therefore, took its possession for 49 years but without the petitioner
the decree of registration is binding upon and conclusive asserting his right over the same.
against all persons including the Government and its The following are the essential elements of laches:
branches, irrespective of whether or not they were
personally notified of the filing of the application for (1) Conduct on the part of the defendant, or of one under
registration or have appeared and filed an answer to said whom he claims, giving rise to the situation complained of;
application, because all persons are considered as notified (2) Delay in asserting complainant's right after he had
by the publication required by law. knowledge of the defendant's conduct and after he has an
Requiring the submission of a new plan as a condition for opportunity to sue;
the re-issuance of the decree would render the finality (3) Lack of knowledge or notice on the part of the
already attained in a previous case, thus, violating the defendant that the complainant would assert the right on
fundamental rule regarding res judicata. which he bases his suit; and
The judgment and the resulting decree are res judicata, (4) Injury or prejudice to the defendant in the event relief is
and these are binding upon the whole world, the accorded to the complainant. 32
proceedings being in the nature of proceedings in rem. It is
an impermissible assault upon the integrity and stability of Jurisprudence is settled as to the imprescriptibility and
the Torrens System of registration because it also indefeasibility of a Torrens Title, but there is equally an
effectively renders the decree inconclusive. abundance of cases in the annals of our jurisprudence
where we categorically ruled that a registered landowner
The issuance of a decree is a ministerial duty both of the may lose his right to recover the possession of his
judge and of the Land Registration Commission. registered property by reason of laches
A final decision in land registration cases can neither be LOLA VS CA, ZABALA
rendered inefficacious by the statute of limitations nor by
laches. A granted petition for certiorari seeking to nullify the
resolution of CA reversing its original decision and ruling
REPUBLIC VS CA, DOLOR that the land in dispute belongs to the respondent
Granted appeal on the decision of the CA affirming the Though prescription may not be available to the petitioner
decision of the lower court granting the application of because the land is still in the name of the respondent, the
registration of a parcel of land based on the defect in the principle of laches is available to him since the latter failed
publication in the OG which confers the jurisdiction of the to assert her right in 32 years.
court therefore ordering the application to be vacated and
set aside This defense is an equitable one and does not concern
itself with the character of the defendant's title, but only
The actual publication on the OG was 42 days later than with whether or not by reason of the plaintiff's long
the date of hearing, defeating its real purpose to confer the inaction or inexcusable neglect he should be barred from
jurisdiction of the court. Though, it was included in an issue asserting this claim at all because to allow him to do so
prior to the date of hearing still the date of actual
would be inequitable and unjust to the defendant... When defendant through fraudulent representation or by
pretending to be the sole heir of the deceased, succeeded
PNB VS BANATAO
in having the certificate of title cancelled and a new one be
The land in dispute being issued in his name enabling her to possess the land and
appropriate its produce.
x x x subject to the provisions of Sections 118, 121, 122
and 124 of Commonwealth Act No. 141, as amended, APUYAN VS HALDEMAN
which provide that except in favor of the Government or
Title under the Torrens system is not absolute or
any of its branches, units or institutions, THE LAND HEREBY
completely indefeasible hence it can be ordered cancelled
ACQUIRED SHALL BE INALIENABLE AND SHALL NOT BE
if proved to be void even after the lapse of the one (1) year
SUBJECT TO [E]ENCUMBRANCE FOR A PERIOD OF FIVE (5)
period.
YEARS NEXT FOLLOWING THE DATE OF THIS PATENT, and
shall not be liable for the satisfaction of any debt The title is void if:
contracted prior to the expiration of that period; x x x
1.Procured through fraud
therefore makes the mortgage entered into with it is void
2.In disposable public lands, failure on the part of the
ab initio.
grantee to comply with the conditions imposed by law
MELQUIADES VS IAC, OUANO
The certificate of title is an evidence of indefeasible title to To serve public interest, a person who succeeds in
the property in favor of the person whose name appears on fraudulently acquiring title to a public land should not be
it. allowed to benefit therefrom.
After the lapse of the one (1) year period from entry of the Indefeasibility of the title does not bar the authority to
decree of registration upon which the certificate of title is investigate on how it was acquired.
based, it becomes incontrovertible.
Only the state can file an action for reversion.
A direct attack on the title must be made within a year
from its entry. COCOY VS CA

Prescriptive period for the reconveyance of fraudulently The ten-year prescriptive period for bringing the action to
registered real property is ten (10) years from the date of enforce the trust or for reconveyance of plaintiffs-
issuance of the certificate of title. appellants’ shares should be toned from the registration of
the release of the mortgage obligation, since only by that
Unless reversed, the title remains valid and binding. time could plaintiffs-appellants be charged with
The duty of the Director of Lands is only ministerial. constructive knowledge of the liquidation of the mortgage
obligations, when it became incumbent upon them to
An action for reversion of the registration of land acquired expect and demand the return of their shares, there being
through fraud and misrepresentation may be brought by no proof that plaintiffs-appellants otherwise learned of the
the state even after the lapse of the one (1) year payment of the obligation earlier.
prescriptive period.
LACSAMANA VS CA
ANTONIO VS SANTOS
Actual knowledge of facts that would impel a cautious man
A decree of registration which gives title to the applicant to make an inquiry in dealing with registered lands is an
will be ineffective and inefficacious if there has been exception to the protection provided to a holder in good
already a title registered prior to it. faith and therefore cannot rely on the Torrens title alone.
In seeking for reconveyance, the party must prove by clear An action to nullify a void contract is imprescriptible.
and convincing evidence his title to the property and the
fact of fraud within four (4) years after its discovery. An action for reconveyance on the ground of fraud
prescribes in four (4) years.
DELA CRUZ VS CA, MARQUEZ
Laches is not a valid defense if an action to assert the
Long inaction or passivity in asserting rights over disputed owner’s right is exercised upon knowledge of such threat
property will preclude recovery of the same. on the property.
A purchaser who was fully aware that the property is in UP VS SUSI
possession of another cannot successfully pretend later
that he is an innocent purchaser for value. Certificates of titles under the Torrens system cannot be
collaterally attacked.
ALMEIDA VS CA, SY
Collateral attack is an attempt to overturn judgment in a
In dealing with property registered under the Torrens judicial proceeding by filing a separate case other than the
system need not go beyond the same, but only has to rely original action or an appeal from it.
on the title.
A case or action for damages is distinct from an action for
Fraudulent or forged document of sale may give rise to a cancellation of title because the remedy sought in the
valid title, if the certificate of title has already been former cannot be raised in the latter and vice-versa.
transferred from the name of the true owner to the forger’s
name and while it remained as such, the land was TAPUROC VS DE MENDE
subsequently sold to an innocent purchaser for value. The question on the validity of Torrens title, whether
JUAN VS ZUNIGA fraudulently issued or not, can be raised only in action
expressly instituted for that purpose.
Prescription may be applied to ordinary actions of recovery
of real property which is covered by a Torrens Title upon It cannot be changed altered, modified, enlarged,
the theory that its registration under our registration diminished or cancelled in a collateral proceeding such as
system has the effect of a constructive notice to the whole in an action for the declaration of nullity of deed of sale.
world, however the same cannot be availed of when the Failure to an action against possessor who has title to a
purpose of the action is to compel a trustee to convey the property in 29 years constitutes laches.
property registered in his name for the benefit of the
cestui que trust. In other words, the defense of prescription REXLON VS CA
cannot be set up in an action those purpose is to recover
An action for reconstitution of title does not give the court
property held by a person for the benefit of another.
jurisdiction to pass the question of actual ownership.
An action for reconveyance on the ground of trust is
A certificate of title does not vest ownership it is merely an
imprescriptible.
evidence of the same.
*example of constructive trust
Extrinsic fraud is a situation a litigant commits outside the The party making an allegation in a civil case has the
trial, fraud committed during the trial is an alleged fraud. burden of proving it by a preponderance of evidence. In an
action involving property, petitioners should rely on the
FELCIANO VS ZALDIVAR
strength of their own title and not on the alleged weakness
Indefeasibility does not apply when fraud attended the of respondents’ claim.
issuance of the title.
A claim of ownership cannot be based simply on the
An affidavit is not a mode of acquiring ownership. testimonies of witnesses; much less on those of interested
parties, self-serving as they are.
Titled lands cannot be subject to prescription or adverse
possession but failure to assert such right is barred by UGALE VS GOROSPE
laches.
A party contesting the indefeasibility of the Torrens title
Possession which was merely tolerated by the lawful does must prove that he has better right over the same through
not bar recovery and laches is not applicable. a preponderance of evidence.

The right to choose between appropriation of the The general rule is that no issue may be raised on appeal
improvement or selling the lands belongs to the owner. unless it has been brought before the lower tribunal for its
consideration. Such rule, however, is subject to exceptions,
BERGADO VS CA such as when there are grounds not assigned as errors or
An action to recover title must be brought within ten (10) matters not assigned as errors on appeal but
years from the date the cause of action accrues. (a) affects jurisdiction over the subject matter;
Application of the principle that ownership belongs to the (b) evidently plain or clerical errors within contemplation of
one who first register it is applicable only when there is law;
good faith.
(c) consideration of which is necessary in arriving at a just
A deed will produce to effect if made in bad faith. decision and complete resolution of the case or to serve
ALONSO VS CEBU COUNTRY CLUB the interests of justice or to avoid dispensing piecemeal
justice;
An action for re-conveyance is a legal remedy granted to a
landowner whose property has been wrongfully or (d) raised in the trial court and are matters of record
erroneously registered in another’s name, but then the having some bearing on the issue submitted which the
action must be filed within ten years from the issuance of parties failed to raise or which the lower court ignored;
the title since such issuance operates as a constructive (e) closely related to an error assigned; and
notice.
(f) upon which the determination of a question properly
An action based on implied or constructed trust prescribes assigned, is dependent.
in ten (10) years from the time of its creation or upon the
alleged fraudulent registration of the property. Section 48 of Presidential Decree No. 1529 provides that:

Approval by the Secretary of Agriculture and Commerce of Certificate not Subject to Collateral attack.- A certificate of
the sale of friar lands is indispensable for its validity, title shall not be subject to collateral attack. It cannot be
hence, the absence of such approval made the sale null altered, modified, or cancelled except in a direct
and void ab-initio, therefore no valid title can be issued proceeding in accordance with law.
based on the same.
REPUBLIC VS ORFINADA
PREMIERE DEVELOPMENT BANK VS CA
Under Torrens system, title of the defendants is made
A reconstituted title issued is void if the previous title is not binding against the whole world, including the government,
cancelled. as soon as the deed of transfer shall have been presented
and registered in the office of the Register of Deeds.
LIM VS CHUATOCO Importantly, the principle is that it is the act of registration
Whatever sympathies may be judicially appreciated for the that operates to transfer the title to the land. And to
deceived party must be balanced in deference to the facilitate registration under this system, the government
protection afforded by law to the innocent purchaser for provides to the owner a Torrens Certificate of Title which is
value. If such innocence or good faith is established by the submitted for cancellation when the property is transferred
evidence, or insufficiently rebutted by the disputant, then to another person who will then be entitled to the issuance
the corresponding duty of the Court is simply to affirm the of the new Torrens Title.
rights of the purchaser in good faith. It is mischief at worse, A purchaser in good faith is one who buys property of
and error at least, for a court to misread or inflate the facts another without notice, that some other person has a right
to justify a ruling for the defrauded party, no matter how to, or interest in such property and pays a full and fair price
wronged he or she may be. Relief for such injury should be for the same, at the time of such purchase, or before he
obtainable instead in a proper proceeding against the has notice of the claim or interest of some other persons in
malfeasant transferor, and not the innocent transferee. the property.
Sale based on a reconstituted title issued through fraud is If a person purchases a piece of land on the assurance that
valid when transferred to an innocent purchaser for value the seller's title thereto is valid, she should not run the risk
however deceived parties can still seek for the of being told later that her acquisition was ineffectual after
reconveyance of their just share. all. If we were to void a sale of property covered by a clean
DIRECTOR OF LANDS VS ABANILLA and unencumbered torrens title, public confidence in the
Torrens System would be eroded and land transactions
The protection of indefeasibility of land registered under would have to be attended by complicated and
the Torrens title is not available who acquired the same inconclusive investigations and uncertain proof of
through fraud. A person is in bad faith if he was able to ownership. The consequence would be that land conflicts
register a land under his name through a sales patent could proliferate and become more abrasive, if not even
issued pending the investigation of the fact finding violent.
committee conducted upon the opposition of persons
allegedly in current possession of the land. SECRETARY OF DENR VS JOSE YAP

MENESES VS CA While they may not be eligible to apply for judicial

confirmation of imperfect title under Section 48(b) of CA
The free patent over an accretion which was fraudulently No. 141, as amended, this does not denote their automatic
issued cannot give rise to a valid ownership. Accretion in ouster from the residential, commercial, and other areas
lakes belongs to its riparian owner. they possess now classified as agricultural. Neither will this
OCAMPO VS OCAMPO mean the loss of their substantial investments on their
occupied alienable lands. Lack of title does not necessarily
mean lack of right to possess. price certain in money or its equivalent.
Article 1144. The following actions must be brought A contract of sale may be absolute or conditional. (1445a)
within ten years from the time the right of action accrues:
(1) Upon a written contract;
FBDC VS YLLAS CORPORATION
(2) Upon an obligation created by law;
A contract cannot be interpreted as a pledge in the
(3) Upon a judgment. (n) absence of any of its requisites such as the absence of
pactum commissorium or the placement of the thing in
Article 1145. The following actions must be commenced
actual possession of the creditor.
within six years:
An adverse possessor, who is not a mortgagor, cannot just
(1) Upon an oral contract;
be deprived of his possession, let alone be bound by the
(2) Upon a quasi-contract. (n) terms of the chattel mortgage contract, simply because the
mortgage brings up an action for replevin.

Article 1146. The following actions must be instituted Article 1460. A thing is determinate when it is particularly
within four years: designated or physical segregated from all others of the
same class.
(1) Upon an injury to the rights of the plaintiff;
The requisite that a thing be determinate is satisfied if at
(2) Upon a quasi-delict; the time the contract is entered into, the thing is capable
of being made determinate without the necessity of a new
or further agreement between the parties. (n)
However, when the action arises from or out of any act,
activity, or conduct of any public officer involving the
exercise of powers or authority arising from Martial Law ADELFA VS CA
including the arrest, detention and/or trial of the plaintiff,
the same must be brought within one (1) year. (As An option, as used in the law on sales, is a continuing offer
amended by PD No. 1755, Dec. 24, 1980.) or contract by which the owner stipulates with another that
the latter shall have the right to buy the property at a fixed
Article 1147. The following actions must be filed within price within a certain time or under or in compliance with,
one year: certain terms and conditions, or which gives to the owner
(1) For forcible entry and detainer; of the property the right to sell or demand a sale.

(2) For defamation. (n) It is also sometimes called an “unaccepted offer”.

An option is not itself a purchase, but merely secures the
privilege to buy. It is not a sale of property but a sale of the
right to purchase.
It is simply a contract by which the owner of the property
agrees with another person that he shall have the right to
buy his property at a fixed price within a certain time.
Its distinguishing characteristic is that it imposes no
binding obligation on the person holding the option, aside
from the consideration for the offer.
Until acceptance, it is not properly speaking a contract and
does not vest, transfer or agree to transfer any title to or
any interest on the right in the subject matter but is merely
a contract by which the owner of the property gives the
optionee the right or privilege of accepting the offer and
buying the property on certain terms.
An option is an unaccepted offer.
Suspension of payment
1. Vendee is disturbed in the possession or ownership
of the thing acquired or
2. Reasonable grounds to fear such disturbance
3. By a vindicatory action or a foreclosure of
mortgage
Exception
1. Vendor gives security for the return of the price in
a proper case
2. It is stipulated
AYALA LIFE VS RBDC
Payment of the price in a contract to sell is a positive
suspensive condition, failure of which is not really a
breach, serious or otherwise, but an event that prevents
the obligation of the seller to convey title from arising, in
accordance with Article 1184 of the Civil Code.
Non-fulfillment by the buyer of his obligation to pay which
is a suspensive condition to the obligation of the
SALES petitioners to sell and deliver the title to the property,
rendered in the contract to sell ineffective and without
Article 1458. By the contract of sale one of the contracting force and effect.
parties obligates himself to transfer the ownership and to
deliver a determinate thing, and the other to pay therefor a HSLB VS DAILO
The conjugal partnership shall be liable for the debts and may withdraw the goods from the sale unless the auction
obligations contracted by either spouse without the has been announced to be without reserve.
consent of the other to the extent that the family may have
(3) A right to bid may be reserved expressly by or on
been benefited and the burden of proof lies with the
behalf of the seller, unless otherwise provided by law or by
creditor-party litigant claiming such.
stipulation.
GUIANG VS CA
(4) Where notice has not been given that a sale by auction
Article 1390 Civil Code - The following contracts are is subject to a right to bid on behalf of the seller, it shall
voidable or annullable, even though there may have been not be lawful for the seller to bid himself or to employ or
no damage to the contracting parties: induce any person to bid at such sale on his behalf or for
the auctioneer, to employ or induce any person to bid at
(1) Those where one of the parties is incapable of giving
such sale on behalf of the seller or knowingly to take any
consent to a contract;
bid from the seller or any person employed by him. Any
(2) Those where the consent is vitiated by mistake, sale contravening this rule may be treated as fraudulent by
violence, intimidation, undue influence or fraud. the buyer. (n)

These contracts are binding, unless they are annulled by a Article 1477. The ownership of the thing sold shall be
proper action in court. They are susceptible of ratification. transferred to the vendee upon the actual or constructive
delivery thereof. (n)
Article 173 FC - The wife may, during the marriage and
within ten years from the transaction questioned, ask the Article 1478. The parties may stipulate that ownership in
courts for the annulment of any contract of the husband the thing shall not pass to the purchaser until he has fully
entered into without her consent, when such consent is paid the price. (n)
required, or any act or contract of the husband which tends
Article 1479. A promise to buy and sell a determinate thing
to defraud her or impair her interest in the conjugal
for a price certain is reciprocally demandable.
partnership property. Should the wife fail to exercise this
right, she or her heirs after the dissolution of the marriage Article 1490. The husband and the wife cannot sell
may demand the value of the property fraudulently property to each other, except:
alienated by the husband.
(1) When a separation of property was agreed upon in the
Article 1422 Civil Code – A contract which is the direct marriage settlements; or
result of a previous illegal contract, is also void and
(2) When there has been a judicial separation of property
inexistent
under article 191. (1458a)
A contract absenting consent is void and therefore cannot
Article 1493. If at the time the contract of sale is perfected,
be ratified.
the thing which is the object of the contract has been
Sale of conjugal properties requires the consent of both the entirely lost, the contract shall be without any effect.
husband and the wife absence of which renders it null and
But if the thing should have been lost in part only, the
void including the portion pertaining to the husband who
vendee may choose between withdrawing from the
contracted the sale.
contract and demanding the remaining part, paying its
REPUBLIC VS HEIRS OF DIGNOS price in proportion to the total sum agreed upon. (1460a)
An action for quieting of title does not prescribe if the Article 1496. The ownership of the thing sold is acquired by
plaintiffs are in possession of the property in question, they the vendee from the moment it is delivered to him in any
may wait until their possession is disturbed before they file of the ways specified in articles 1497 to 1501, or in any
any action. other manner signifying an agreement that the possession
is transferred from the vendor to the vendee. (n)
Each co owner shall have the full ownership of his part and
of the fruits and benefits pertaining thereto, and he may Article 1497. The thing sold shall be understood as
therefore alienate, assign or mortgage it, and even delivered, when it is placed in the control and possession
substitute another person in its enjoyment, except when of the vendee. (1462a)
personal rights are involved. But the effect of the
DOUBLE SALES
alienation of the mortgage with respect to the co-owners
shall be limited to the portion which may be allotted to him Article 1544. If the same thing should have been sold to
in the division upon the termination of the co-ownership. different vendees, the ownership shall be transferred to the
person who may have first taken possession thereof in
Should any of the heirs sell his hereditary rights to a
good faith, if it should be movable property.
stranger before the partition, any or all of the co-heirs may
be subrogated to the rights of the purchaser by Should it be immovable property, the ownership shall
reimbursing him for the price of the sale, provided they do belong to the person acquiring it who in good faith first
so within the period of one month from the time they were recorded it in the Registry of Property.
notified in writing of the sale by the vendor.
Should there be no inscription, the ownership shall pertain
Sale of a co-owner of the whole property without the to the person who in good faith was first in the possession;
consent of the others is void, the purchaser has the right to and, in the absence thereof, to the person who presents
seek redress against the said co-owner and his successors- the oldest title, provided there is good faith. (1473)
in-interest.
Article 1459. The thing must be licit and the vendor must
have a right to transfer the ownership thereof at the time it ABRIGO VS DE VERA
is delivered. (n) Registration must be done in the proper registry in order to
Article 1470. Gross inadequacy of price does not affect a bind the land.
contract of sale, except as it may indicate a defect in the A person who registered the land under the Property
consent, or that the parties really intended a donation or Registration Decree has better right over a deed of
some other act or contract. (n) conveyance registered under Act 3344.
Article 1476. In the case of a sale by auction: The priority in time principle does not apply because the
(1) Where goods are put up for sale by auction in lots, each land was already registered under the Torrens system.
lot is the subject of a separate contract of sale. Registration of instruments under Act 3344 affecting
(2) A sale by auction is perfected when the auctioneer unregistered lands is without prejudice to a third party with
announces its perfection by the fall of the hammer, or in a better right.
other customary manner. Until such announcement is Good faith must concur with the registration.
made, any bidder may retract his bid; and the auctioneer
A buyer is presumed to be in good faith except when the at the time of the purchase or before any notice of some
seller is not the actual possessor of the land. Under the other person’s claim on or interest in it.
principle of caveat emptor, the buyer must beware of the
Purchasers in bad faith cannot rely on the indefeasibility of
title of the actual occupants of the land.
a torrens title for it does not extend to transferees who
CRB VS CA take the certificate of title in bad faith.
The provision on double sales cannot be invoked where the SPS. SALERA VS SPS. RODAJE
two different contracts of sale are made by two different
The law on double sale contemplates that of a single
persons, one of them not being the owner of the property
vendor.
sold. And even if the sale was made by the same person, if
the second sale was made when such person was no Bad faith under the law cannot be presumed, it must be
longer the owner of the property, because it had been established by clear and convincing evidence.
acquired by the first purchaser in full dominion, the second
purchaser cannot acquire any right. Any lot buyer is expected to be vigilant, exercising utmost
care in determining whether the seller is the true owner of
The intention to transfer is not sufficient, it only constitutes the property and whether there are other claimants.
a will. It is furthermore, necessary that the conveyor could
juridically perform that act; that he had the right to do so, NAVAL VS CA
since a right which he did not possess could not be vested The law on double sale is not applicable to unregistered
by him in the transferee. land, the registration referred thereto is the registration
The rule of caveat emptor requires the purchaser to be under the Torrens system which considers the act of
aware of the supposed title of the vendor and one who registration as the operative act that binds the land.
buys without checking the vendor’s title takes all the risks Priority in time, priority in rights is applicable in
and losses consequent such failure. unregistered lands.
Although it is a recognized principle that a person dealing Under the law, registration by the first buyer is a
on a registered land need not to go beyond its certificate of constructive notice to the second buyer that can defeat his
title, it is also a firmly settled rule that where there are right as such buyer in good faith.
circumstances which would put a party on guard and
prompt him to investigate or inspect the property being The registration of an instrument involving unregistered
sold to him, such as the presence of occupants/tenants land in the RD creates constructive notice and binds third
thereon, it is, of course, expected from the purchaser of a person who may subsequently deal with the same
valued piece of land to inquire first into the status or property.
nature of possession of the occupants, i.e., whether or not The issue of good faith or bad faith of the buyer is relevant
the occupants possess the land en concepto dueño or in only where the subject of the sale is registered land and
concept of an owner. the purchaser is buying the same from the registered
A purchaser or mortgagee cannot close his eyes to facts owner whose title to the land is clean in such case the
which should put a reasonable man upon his guard and purchaser who relies on the clean title of the registered
then claim that he acted in good faith under the belief that owner is protected if he is a purchaser in good faith for
there was no defect in the title of the vendor or mortgagor. value.
His mere refusal to believe that such defect exists or his In an action for reconveyance, the decree of registration is
willful closing of his eyes to the possibility of the existence respected as incontrovertible what is sought is the transfer
of a defect in the vendor’s or mortgagor’s title will not of the property or its title which has been wrongfully or
make him an innocent purchaser or mortgagee for value. erroneously registered in another person’s name, to its
LUMBRES VS SPS TABLADA rightful or legal owner or to the one with better right.

When acting as an ejectment court, the MTC’s jurisdiction When the plaintiff is in possession of the land to be
is limited to the determination of the issue on possession reconveyed, an action for reconveyance does not prescribe
de fact and not possession de jure except if the issue because one who is in possession may wait until his
depends on the resolution of the issue of ownership which possession is disturbed or his title is attacked before taking
is sufficiently alleged in the complaint. steps to vindicate his rights. His undisturbed possession
gives him a continuing right to seek the aid of a court of
Knowledge gained by the second buyer of the first sale equity to ascertain and determine the nature of the
defeats his rights even if he is the first to register the adverse claim of a third party and its effect on his own
second sale because such knowledge taints his prior title, which right can be claimed only by one who is
registration with bad faith. For the second buyer to possession.
displace the first, he must show that he acted in good faith
throughout from the time of acquisition until the title is When the plaintiff is not in possession of the land to be
transferred to him by registration. reconveyed, an action for reconveyance based on implied
or constructive trust prescribes in ten years, the point of
SPS. TANGLAO VS SPS. PARUNGAO reference being the date of registration of the deed or the
The provision on double sale should comply with the date of the issuance of the certificate of title over the
following rules property.

1. Knowledge by the first buyer of the second sale CARUMBA VS CA

cannot defeat the first buyer’s rights except when the The purchaser of unregistered land at a sheriff’s execution
second buyer first registers in good faith the second sale only steps into the shoes of the judgment debtor and
sale merely acquires the latter’s interest in the property sold as
2. Knowledge gained by the second buyer of the first of the time the property was levied upon.
sale defeats his rights even if he is the first to register If the judgment debtor no longer had dominical interest or
since such knowledge taints his registration with bad real right over the land at the time of the execution sale
faith. there is nothing that could be passed to the purchaser at
The act of registration by the second buyer must be the execution sale.
coupled with good faith, meaning the registrant must have RADIOWEALTH VS PALILEO
no knowledge of the defect or lack of title of his vendor or
must not have been aware of facts which should put him Registration of instruments affecting unregistered lands is
upon such inquiry and investigation as might necessary to without prejudice to a third person with a better right.
acquaint him with the defects in the title of his vendor. SPS RAYOS VS REYES
A purchaser in good faith or innocent purchaser for value is In order that consignation may be effective the debtor
one who buys property and pays a full and fair price for it must show that
 1. there was a debt due purchase price;
2. the consignation of the obligation has been made (5) When the vendor binds himself to pay the taxes on the
because the creditor to whom a valid tender of thing sold;
payment was made refused to accept it
(6) In any other case where it may be fairly inferred that
3. previous notice of the consignation had been given the real intention of the parties is that the transaction shall
to the person interested in the performance of the secure the payment of a debt or the performance of any
obligation other obligation.
4. the amount due was placed at the disposal of the In any of the foregoing cases, any money, fruits, or other
court benefit to be received by the vendee as rent or otherwise
shall be considered as interest which shall be subject to
5. after the consignation had been made the person the usury laws. (n)
interested was notified.
Therefore a contract appearing on its face to be a definite
OBLIGATIONS OF VENDEE sale, may be interpreted as an equitable mortgage if there
Article 1592. In the sale of immovable property, even is gross inadequacy of the price.
though it may have been stipulated that upon failure to JMA VS STA. MONICA
pay the price at the time agreed upon the rescission of the
contract shall of right take place, the vendee may pay, Elements of option contract
even after the expiration of the period, as long as no
demand for rescission of the contract has been made upon 1. The offer to sell which does not become a contract
him either judicially or by a notarial act. After the demand, until accepted
the court may not grant him a new term. (1504a) 2. The completed contract to lease the offer for a
Article 1191. The power to rescind obligations is implied in specified time
reciprocal ones, in case one of the obligors should not BAUTISTA VS UNANGST
comply with what is incumbent upon him.
Therefore a contract appearing on its face to be a definite
The injured party may choose between the fulfillment and sale, may be interpreted as an equitable mortgage if the
the rescission of the obligation, with the payment of vendor remains in possession as lessee or otherwise and In
damages in either case. He may also seek rescission, even any other case where it may be fairly inferred that the real
after he has chosen fulfillment, if the latter should become intention of the parties is that the transaction shall secure
impossible. the payment of a debt or the performance of any other
The court shall decree the rescission claimed, unless there obligation
be just cause authorizing the fixing of a period. BACUNGAN VS CA
This is understood to be without prejudice to the rights of Gross inadequacy of price by itself will not result in a void
third persons who have acquired the thing, in accordance contract. It does not even affect the validity of a contract of
with articles 1385 and 1388 and the Mortgage Law. (1124) sale, unless it signifies a defect in the consent or that the
CEBU VS HEIRS OF MORALES parties actually intended a donation or some other
contract.
A sale by public auction is perfected when the auctioneer
announces its perfection by the fall of the hammer or in CO-OWNERSHIP
other customary manner nevertheless the same is Article 484. There is co-ownership whenever the ownership
perfected when another merely stepped into the shoes of of an undivided thing or right belongs to different persons.
the highest bidder.
In default of contracts, or of special provisions, co-
A contract of sale is consensual contract and is perfected ownership shall be governed by the provisions of this Title.
at the moment there is a meeting of the minds upon the (392)
object of the contract and upon the price. From that
moment performance is reciprocally demandable subject Article 493. Each co-owner shall have the full ownership of
to the provisions governing the form of contracts. his part and of the fruits and benefits pertaining thereto,
and he may therefore alienate, assign or mortgage it, and
Failure to pay the balance of the purchase price did not even substitute another person in its enjoyment, except
render the sale inexistent or invalid but merely gave rise to when personal rights are involved. But the effect of the
a right in favor of the vendor to eighter demand specific alienation or the mortgage, with respect to the co-owners,
performance or rescission of the contract of sale. shall be limited to the portion which may be allotted to him
Payment can be made by the vendee as long as no in the division upon the termination of the co-ownership.
demand for rescission has been made. (399)

CONVENTIONAL REDEMPTION Article 1088. Should any of the heirs sell his hereditary
rights to a stranger before the partition, any or all of the
Article 1601. Conventional redemption shall take place co-heirs may be subrogated to the rights of the purchaser
when the vendor reserves the right to repurchase the thing by reimbursing him for the price of the sale, provided they
sold, with the obligation to comply with the provisions of do so within the period of one month from the time they
article 1616 and other stipulations which may have been were notified in writing of the sale by the vendor. (1067a)
agreed upon. (1507)
Article 494. No co-owner shall be obliged to remain in the
EQUITABLE MORTGAGE co-ownership. Each co-owner may demand at any time the
CRUZ VS CA partition of the thing owned in common, insofar as his
share is concerned.
ARTICLE 1602. The contract shall be presumed to be an
equitable mortgage, in any of the following cases: Nevertheless, an agreement to keep the thing undivided
for a certain period of time, not exceeding ten years, shall
(1) When the price of a sale with right to repurchase is be valid. This term may be extended by a new agreement.
unusually inadequate;
A donor or testator may prohibit partition for a period
(2) When the vendor remains in possession as lessee or which shall not exceed twenty years.
otherwise;
Neither shall there be any partition when it is prohibited by
(3) When upon or after the expiration of the right to law.
repurchase another instrument extending the period of
redemption or granting a new period is executed; No prescription shall run in favor of a co-owner or co-heir
against his co-owners or co-heirs so long as he expressly or
(4) When the purchaser retains for himself a part of the impliedly recognizes the co-ownership. (400a)
Article 495. Notwithstanding the provisions of the RULE 68
preceding article, the co-owners cannot demand a physical
Foreclosure of Real Estate Mortgage
division of the thing owned in common, when to do so
would render it unserviceable for the use for which it is Section 1. Complaint in action for foreclosure. — In an
intended. But the co-ownership may be terminated in action for the foreclosure of a mortgage or other
accordance with article 498. (401a) encumbrance upon real estate, the complaint shall set
forth the date and due execution of the mortgage; its
Article 498. Whenever the thing is essentially indivisible
assignments, if any; the names and residences of the
and the co-owners cannot agree that it be allotted to one
mortgagor and the mortgagee; a description of the
of them who shall indemnify the others, it shall be sold and
mortgaged property; a statement of the date of the note or
its proceeds distributed. (404)
other documentary evidence of the obligation secured by
Article 501. Every co-owner shall, after partition, be liable the mortgage, the amount claimed to be unpaid thereon;
for defects of title and quality of the portion assigned to and the names and residences of all persons having or
each of the other co-owners. (n) claiming an interest in the property subordinate in right to
that of the holder of the mortgage, all of whom shall be
Article 488. Each co-owner shall have a right to compel the
made defendants in the action. (1a)
other co-owners to contribute to the expenses of
preservation of the thing or right owned in common and to Section 2. Judgment on foreclosure for payment or sale.
the taxes. Any one of the latter may exempt himself from — If upon the trial in such action the court shall find the
this obligation by renouncing so much of his undivided facts set forth in the complaint to be true, it shall ascertain
interest as may be equivalent to his share of the expenses the amount due to the plaintiff upon the mortgage debt or
and taxes. No such waiver shall be made if it is prejudicial obligation, including interest and other charges as
to the co-ownership. (395a) approved by the court, and costs, and shall render
judgment for the sum so found due and order that the
Article 496. Partition may be made by agreement between
same be paid to the court or to the judgment obligee
the parties or by judicial proceedings. Partition shall be
within a period of not less than ninety (90) days nor more
governed by the Rules of Court insofar as they are
than one hundred twenty (120) days from the entry of
consistent with this Code. (402)
judgment, and that in default of such payment the
Article 1097. A partition may be rescinded or annulled for property shall be sold at public auction to satisfy the
the same causes as contracts. (1073a) judgment. (2a)

Rights of co-owner Section 3. Sale of mortgaged property; effect. — When

the defendant, after being directed to do so as provided in
1. Full ownership of his part the next preceding section, fails to pay the amount of the
2. Fruits and benefits judgment within the period specified therein, the court,
upon motion, shall order the property to be sold in the
3. Assign of mortgage his part manner and under the provisions of Rule 39 and other
4. Substitute another person in its enjoyment except regulations governing sales of real estate under execution.
in personal right Such sale shall not affect the rights of persons holding prior
encumbrances upon the property or a part thereof, and
To avail the 30-day period, the period must be in good faith when confirmed by an order of the court, also upon motion,
What to reimburse in case of redemption it shall operate to divest the rights in the property of all the
parties to the action and to vest their rights in the
1. Purchase price purchaser, subject to such rights of redemption as may be
allowed by law.
2. Legal expenses
Upon the finality of the order of confirmation or upon the
3. Useful expenses
expiration of the period of redemption when allowed by
4. Necessary expenses law, the purchaser at the auction sale or last redemptioner,
if any, shall be entitled to the possession of the property
5. Other stipulations in the contract
unless a third party is actually holding the same adversely
A co-owner who alienated his share can no longer exercise to the judgment obligor. The said purchaser or last
the right of redemption. redemptioner may secure a writ of possession, upon
motion, from the court which ordered the foreclosure. (3a)
A co-owner can no longer exercise the right of redemption
if the property was already subjected to partition. Section 4. Disposition of proceeds of sale. — The amount
realized from the foreclosure sale of the mortgaged
Right of pre-emption can be exercised against a stranger property shall, after deducting the costs of the sale, be
who bought the property by the adjoining owners (owner paid to the person foreclosing the mortgage, and when
with the lesser land area / the one who signifies his intent there shall be any balance or residue, after paying off the
to redeem) mortgage debt due, the same shall be paid to junior
A co-owner has better right in the exercise of the right of encumbrancers in the order of their priority, to be
legal redemption. ascertained by the court, or if there be no such
encumbrancers or there be a balance or residue after
Partition is not allowed if payment to them, then to the mortgagor or his duly
1. it will damage the property authorized agent, or to the person entitled to it. (4a)

2. stipulated Section 5. How sale to proceed in case the debt is not all
due. — If the debt for which the mortgage or encumbrance
3. it will prejudice third persons was held is not all due as provided in the judgment as soon
4. by nature it is indivisible as a sufficient portion of the property has been sold to pay
the total amount and the costs due, the sale shall
extinguishment of co-ownership terminate; and afterwards as often as more becomes due
for principal or interest and other valid charges, the court
1. judicial
may, on motion, order more to be sold. But if the property
2. extra-judicial cannot be sold in portions without prejudice to the parties,
the whole shall be ordered to be sold in the first instance,
3. prescription
and the entire debt and costs shall be paid, if the proceeds
4. acquisition by stranger of the sale be sufficient therefor, there being a rebate of
interest where such rebate is proper. (5a)
5. merger
Section 6. Deficiency judgment. — If upon the sale of any
6. loss or destruction real property as provided in the next preceding section
REAL ESTATE MORTGAGE there be a balance due to the plaintiff after applying the
proceeds of the sale, the court, upon motion, shall render absence of an express agreement, shall last four years
judgment against the defendant for any such balance for from the date of the contract.
which, by the record of the case, he may be personally
Should there be an agreement, the period cannot exceed
liable to the plaintiff, upon which execution may issue
ten years.
immediately if the balance is all due at the time of the
rendition of the judgment; otherwise; the plaintiff shall be However, the vendor may still exercise the right to
entitled to execution at such time as the balance repurchase within thirty days from the time final judgment
remaining becomes due under the terms of the original was rendered in a civil action on the basis that the contract
contract, which time shall be stated in the judgment. (6a) was a true sale with right to repurchase. (1508a)
Section 7. Registration. — A certified copy of the final Article 1607. In case of real property, the consolidation of
order of the court confirming the sale shall be registered in ownership in the vendee by virtue of the failure of the
the registry of deeds. If no right of redemption exists, the vendor to comply with the provisions of article 1616 shall
certificate of title in the name of the mortgagor shall be not be recorded in the Registry of Property without a
cancelled, and a new one issued in the name of the judicial order, after the vendor has been duly heard. (n)
purchaser.
Article 1612. If several persons, jointly and in the same
Where a right of redemption exists, the certificate of title in contract, should sell an undivided immovable with a right
the name of the mortgagor shall not be cancelled, but the of repurchase, none of them may exercise this right for
certificate of sale and the order confirming the sale shall more than his respective share.
be registered and a brief memorandum thereof made by
the registrar of deeds upon the certificate of title. In the The same rule shall apply if the person who sold an
event the property is redeemed, the deed of redemption immovable alone has left several heirs, in which case each
shall be registered with the registry of deeds, and a brief of the latter may only redeem the part which he may have
memorandum thereof shall be made by the registrar of acquired. (1514)
deeds on said certificate of title. Article 1620. A co-owner of a thing may exercise the right
If the property is not redeemed, the final deed of sale of redemption in case the shares of all the other co-owners
executed by the sheriff in favor of the purchaser at the or of any of them, are sold to a third person. If the price of
foreclosure sale shall be registered with the registry of the alienation is grossly excessive, the redemptioner shall
deeds; whereupon the certificate of title in the name of the pay only a reasonable one.
mortgagor shall be cancelled and a new one issued in the Should two or more co-owners desire to exercise the right
name of the purchaser. (n) of redemption, they may only do so in proportion to the
Section 8. Applicability of other provisions. — The share they may respectively have in the thing owned in
provisions of sections 31, 32 and 34 of Rule 39 shall be common. (1522a)
applicable to the judicial foreclosure of real estate Article 1621. The owners of adjoining lands shall also have
mortgages under this Rule insofar as the former are not the right of redemption when a piece of rural land, the area
inconsistent with or may serve to supplement the of which does not exceed one hectare, is alienated, unless
provisions of the latter. (8a) the grantee does not own any rural land.
Equity of redemption is observed in judicial foreclosure This right is not applicable to adjacent lands which are
proceedings before the confirmation of sale separated by brooks, drains, ravines, roads and other
Collection of sum of money is a waiver in filing any further apparent servitudes for the benefit of other estates.
action for foreclosure If two or more adjoining owners desire to exercise the right
Junior encumbrancers are only necessary parties in a of redemption at the same time, the owner of the adjoining
judicial foreclosure proceeding however their rights are not land of smaller area shall be preferred; and should both
affected by the said proceeding therefore they may still file lands have the same area, the one who first requested the
independent actions against the mortgagor. As such they redemption. (1523a) ARTICLE 1622. Whenever a piece of
may be included as defendants however notice to them is urban land which is so small and so situated that a major
not mandatory. portion thereof cannot be used for any practical purpose
within a reasonable time, having been bought merely for
Remedies of a mortgagee speculation, is about to be re-sold, the owner of any
adjoining land has a right of pre-emption at a reasonable
1. Collection of sum of money (prayer for preliminary
price.
attachment is an option)
If the re-sale has been perfected, the owner of the
2. Foreclosure of mortgage, in case of deficiency
adjoining land shall have a right of redemption, also at a
collection of the unpaid balance may be availed of
reasonable price.
Redemption period
When two or more owners of adjoining lands wish to
1. One year from the registration of the certificate of exercise the right of pre-emption or redemption, the owner
sale (if mortgagee is a bank, quasi-bank or trust whose intended use of the land in question appears best
company) justified shall be preferred. (n)

2. Three months from the registration of the Article 1670. If at the end of the contract the lessee should
certificate of sale or confirmation of sale whichever is continue enjoying the thing leased for fifteen days with the
earlier (if the mortgagee is an individual or juridical acquiescence of the lessor, and unless a notice to the
person) contrary by either party has previously been given, it is
understood that there is an implied new lease, not for the
Both the value of the loan and the assessed value of the period of the original contract, but for the time established
property as well as the location of the land must be within in articles 1682 and 1687. The other terms of the original
the jurisdiction the court contract shall be revived. (1566a)
Article 1603. In case of doubt, a contract purporting to be a Article 1682. The lease of a piece of rural land, when its
sale with right to repurchase shall be construed as an duration has not been fixed, is understood to have been for
equitable mortgage. (n) all the time necessary for the gathering of the fruits which
Article 1604. The provisions of article 1602 shall also apply the whole estate leased may yield in one year, or which it
to a contract purporting to be an absolute sale. (n) may yield once, although two or more years have to elapse
for the purpose. (1577a)
Article 1605. In the cases referred to in articles 1602 and
1604, the apparent vendor may ask for the reformation of Article 1687. If the period for the lease has not been fixed,
the instrument. (n) it is understood to be from year to year, if the rent agreed
upon is annual; from month to month, if it is monthly; from
Article 1606. The right referred to in article 1601, in the week to week, if the rent is weekly; and from day to day, if
the rent is to be paid daily. However, even though a
monthly rent is paid, and no period for the lease has been
set, the courts may fix a longer term for the lease after the
lessee has occupied the premises for over one year. If the
rent is weekly, the courts may likewise determine a longer
period after the lessee has been in possession for over six
months. In case of daily rent, the courts may also fix a
longer period after the lessee has stayed in the place for
over one month. (1581a)
Article 1676. The purchaser of a piece of land which is
under a lease that is not recorded in the Registry of
Property may terminate the lease, save when there is a
stipulation to the contrary in the contract of sale, or when
the purchaser knows of the existence of the lease.
If the buyer makes use of this right, the lessee may
demand that he be allowed to gather the fruits of the
harvest which corresponds to the current agricultural year
and that the vendor indemnify him for damages suffered.
If the sale is fictitious, for the purpose of extinguishing the
lease, the supposed vendee cannot make use of the right
granted in the first paragraph of this article. The sale is
presumed to be fictitious if at the time the supposed
vendee demands the termination of the lease, the sale is
not recorded in the Registry of Property. (1571a)
Article 1678. If the lessee makes, in good faith, useful
improvements which are suitable to the use for which the
lease is intended, without altering the form or substance of
the property leased, the lessor upon the termination of the
lease shall pay the lessee one-half of the value of the
improvements at that time. Should the lessor refuse to
reimburse said amount, the lessee may remove the
improvements, even though the principal thing may suffer
damage thereby. He shall not, however, cause any more
impairment upon the property leased than is necessary.
With regard to ornamental expenses, the lessee shall not
be entitled to any reimbursement, but he may remove the
ornamental objects, provided no damage is caused to the
principal thing, and the lessor does not choose to retain
them by paying their value at the time the lease is
extinguished. (n)
Article 448. The owner of the land on which anything has
been built, sown or planted in good faith, shall have the
right to appropriate as his own the works, sowing or
planting, after payment of the indemnity provided for in
articles 546 and 548, or to oblige the one who built or
planted to pay the price of the land, and the one who
sowed, the proper rent. However, the builder or planter
cannot be obliged to buy the land if its value is
considerably more than that of the building or trees. In
such case, he shall pay reasonable rent, if the owner of the
land does not choose to appropriate the building or trees
after proper indemnity. The parties shall agree upon the
terms of the lease and in case of disagreement, the court
shall fix the terms thereof. (361a)
Article 1723. The engineer or architect who drew up the
plans and specifications for a building is liable for damages
if within fifteen years from the completion of the structure,
the same should collapse by reason of a defect in those
plans and specifications, or due to the defects in the
ground. The contractor is likewise responsible for the
damages if the edifice falls, within the same period, on
account of defects in the construction or the use of
materials of inferior quality furnished by him, or due to any
violation of the terms of the contract. If the engineer or
architect supervises the construction, he shall be solidarily
liable with the contractor.
Acceptance of the building, after completion, does not
imply waiver of any of the cause of action by reason of any
defect mentioned in the preceding paragraph.
The action must be brought within ten years following the
collapse of the building. (n)
 1. Final judgment
2. Court has competent jurisdiction
3. Between the first and second causes of action—there is
identity of
parties, subject matter and causes of action
STATE IS NOT BARRED BY PRESCRIPTION PROOF OF
OWNERSHIP AND IDENTITY INDISPENSIBLE
ACTION FOR DAMAGES
> Is available when the remedy of an action for
reconveyance mayno longer be availed of
> When the land has passed already to the hands of an
innocent
purchaser for value
ACTION FOR RECONVEYANCE REMEDIES
> Legal and equitable remedy granted to the rightful Section 32. Review of decree of registration; Innocent
owner of the land which has been wrongfully or purchaser for value. The decree of registration shall not be
erroneously registered in the name of another for the reopened or revised by reason of absence, minority, or
purpose of compelling the latter to transfer or reconvey the other disability of any person adversely affected thereby,
land to him nor by any proceeding in any court for reversing
> After one year from the issuance of the decree, may judgments, subject, however, to the right of any person,
bring action for reconveyance of the property including the government and the branches thereof,
deprived of land or of any estate or interest therein by
> Only to show that the person who secured the such adjudication or confirmation of title obtained by
registration of the questioned property is not the real actual fraud, to file in the proper Court of First Instance a
owner thereof petition for reopening and review of the decree of
> Seeks to transfer or reconvey the land from the registration not later than one year from and after the date
registered owner to the rightful owner of the entry of such decree of registration, but in no case
shall such petition be entertained by the court where an
> Property is deemed to be held in trust for the real owner innocent purchaser for value has acquired the land or an
by the person in whose name it is registered interest therein, whose rights may be prejudiced.
Whenever the phrase "innocent purchaser for value" or an
> Section 96 is the basis of this remedy
equivalent phrase occurs in this Decree, it shall be deemed
to include an innocent lessee, mortgagee, or other
encumbrancer for value. Upon the expiration of said period
DECREE BECOMES INCONTROVERTIBLE AFTER 1
of one year, the decree of registration and the certificate of
YEAR FROM THE ISSUANCE OF DECREE
title issued shall become incontrovertible. Any person
>Action for reconveyance still available as remedy aggrieved by such decree of registration in any case may
pursue his remedy by action for damages against the
>Action in personam that it is always available as long as applicant or any other persons responsible for the fraud.
the property has not passed to an innocent purchaser for
value Section 33. Appeal from judgment, etc. The judgment and
orders of the court hearing the land registration case are
RELEVANT ALLEGATIONS appealable to the Court of Appeals or to the Supreme Court
1. That the plaintiff is the owner of the land in the same manner as in ordinary actions:

2. That the defendant has illegally disposed him of the Section 34. Rules of procedure. The Rules of Court shall,
same insofar as not inconsistent with the provision of this
Decree, be applicable to land registration and cadastral
ACTION FOR RECONVEYANCE IS AN ACTION IN cases by analogy or in a suppletory character and
PERSONAM whenever practicable and convenient.
> Binding only upon the parties properly impleaded and AVAILABLE REMEDIES TO QUESTION THE VALIDITY
duly heard or given an opportunity to be heard OF JUDGMENT IN A REGISTRATION CASE
> Directed against specific persons and seek personal
judgments 1. New trial or reconsideration under Rule 37
> Court must have jurisdiction over the defendant 2. Relief of judgment under Rule 38
3. Appeal to the CA or SC in the manner as ordinary actions
THE RTC HAS EXCLUSIVE JURISDICTION OVER AN pursuant to Section 33 of PD 1529
ACTION FOR RECONVEYANCE THE OWNERS OF THE 4. Review of Decree, Section 32
PROPERTY OVER WHICH RECONVEYANCE IS BEING 5. Claim under Assurance Fund, Section 95
SOUGHT ARE INDISPENSIBLE PARTIES WITHOUT 6. Reversion under Section 101 of CA 141
WHOM NO RELIEF IS AVAILABLE ACTION FOR 7. Cancellation of title
RECONVEYANCE MAY BE BARRED BY THE STATUTE 8. Annulment of judgment under Rule 37
OF LIMITATIONS LACHES MAY BAR RECOVERY 9. Quieting of Title
1. Conduct on the part of the defendant or of one under 10. Action for reconveyance
whom him or one under who he claims, giving rise to the 11. Criminal prosecution under the Revised Penal Code
situation of which complaint is made and for which the PRESCRIPTION DISTINGUISHED FROM LACHES
complainant seeks relief
2. Delay in asserting the complainant’s rights, the PRESCRIPTION LACHES
complainant having had knowledge or notice, or the Effect of delay Fact of delay
defendant’s conduct and having been afforded an
opportunity to institute a suit Matter of time Question of inequity of
3. Lack of knowledge or notice on the part of the defendant permitting a
that the complainant would assert the right on which he claim to be enforced, this
bases his suit inequity
4. Inquiry or prejudice to the defendant in the event the being founded on some
relief is afforded the complainant or the suit is not held to change in
be barred the condition of the property
or the
ACTION MAY BE BARRED BY RES JUDICATA
 relation of the parties implied trust for the benefit of the person from whom the
property comes. (Art. 1456, NCC). Thus, the law thereby
Statutory Not statutory creates the obligation of the trustee to reconvey the
Applies at law Applies at equity property and the title thereto in favor of the true owner.
The prescriptive period for the reconveyance for
Based on a fixed Not fixed time fraudulently registered real property is ten (10) years
time reckoned from the date of the issuance of the certificate of
title. (Consuelo Vda. de Alberto, et al. vs. Francis Go, et al.,
G.R. No. 139843, July 21, 2005).
Action For Reconveyance Based On Implied Trust
TRUSTS- Implied Trusts, Constructive Trusts
An action for reconveyance of registered land based on
When one’s property is registered in another’s name
implied trust prescribes in 10 years, the point of reference
without the former’s consent, an implied trust is created by
being the date of registration of the deed or the date of the
law in favor of the true owner. Implied trusts are those
issuance of the certificate of title over the property. This is
which, without being expressed, are deducible from the
especially if the plaintiff is in possession of the property at
nature of the transaction by operation of law as matters of
the time of the filing of the complaint that the 10 – year
equity, independently of the particular intention of the
prescriptive period applies only when the person enforcing
parties. Meanwhile, constructive trusts are created in order
the trust is not in possession of the property. If a person
to satisfy the demands of justice and prevent unjust
claiming to be its owner is in actual possession of the
enrichment. They arise against one who, by fraud, duress
property, the right to seek reconveyance, which in effect
or abuse of confidence, obtains or holds the legal right to
seeks to quiet title to the property, does not prescribe. The
property which he ought not, in equity and good
reason is that the one who is in actual possession of the
conscience, to hold. An action for reconveyance based
land claiming to be its owner may wait until his possession
upon an implied or constructive trust prescribes in ten (10)
is disturbed or his title is attacked before taking steps to
years from the registration of the deed or from the
vindicate his right. His undisturbed possession gives him a
issuance of the title.
continuing right to seek the aid of a court of equity to
ascertain and determine the nature of the adverse claim of Acquisition of property by laches.
a third party and its effect on his own title, which right can
be claimed only by one who is in possession. (Mendizabel, In Sps. Aguirre v. Heirs of Lucas Villanueva, et al., G.R. No.
et al. vs. Apao, et al., G.R. No. 143185, February 20, 2006). 169898, October 27, 2006, the petitioners have been in
possession of a parcel of land for more than 26 years. They
Torrens Systems Not Designed To Shield Against declared it for taxation purposes, occupied it, built fences,
Fraud planted trees and used the same as ingress and egress
towards their cottages. The respondent knew all these but
Reconveyance is just and proper in order to terminate the
they did not lift a finger to bar them from doing so. They
intolerable anomaly that the patentees should have a
waited for 16 years to oust them. Will the action prosper?
Torrens title for the land which they and their predecessors
Why?
never possessed and which has been possessed by
another person in the concept of owner. After all, the
Held: No. Laches had already set it. Since they have been
Torrens system was not designed to shield and protect one
in continuous possession and enjoyment of the disputed
who had committed fraud or misrepresentation and thus
land in good faith and with a just title since 1971 until
holds title in bad faith. (Mendizabel, et al. vs. Apao, et al.,
1997, petitioners doubtlessly obtained title by ordinary
G.R. No. 143185, February 20, 2006).
acquisitive prescription.
Implied Trust If Property Is Acquired By Fraudulent
Act The action is barred by laches which is defined as the
failure to assert a right for an unreasonable and
The act of petitioners in misrepresenting that they were in
unexplained length or time, warranting a presumption that
actual possession and occupation of the property,
the party entitled to assert it has either abandoned or
obtaining patents and original certificates of title in their
declined to assert it. This equitable defense is based upon
names, created an implied trust in favor of the actual
grounds of public policy, which requires the
possessors of the property. Under the law, if the property is
discouragement of stale claims for the peace of society.
acquired through mistake or fraud, the person obtaining it
(Vda. de Rigonan v. Derecho, G.R. No. 159571, July 15,
is, by force of law, considered a trustee of an implied trust
2005, 463 SCRA 627).
for the benefit of the person from whom the property
comes. (Art. 1456, NCC). Acquisition of property by prescription.
Prescription, in general, is a mode of acquiring (or losing)
In other words, if the registration of the land is fraudulent,
ownership and other real rights through the lapse of time
the person in whose name the land is registered holds it as
in the manner and under conditions laid down by law,
a mere trustee, and the real owner is entitled to file an
namely, that the possession should be in the concept of an
action for reconveyance of the property. (Mendizabel, et al.
owner, public, peaceful, uninterrupted and adverse.
vs. Apao, et al., G.R. No. 143185, February 20, 2006).
Acquisitive prescription is either ordinary or extraordinary.
IMPLIED TRUST- Action to Recover Based on Implied Ordinary acquisitive prescription requires possession in
Trust good faith and with just title for 10 years. Without good
faith and just title, acquisitive prescription can only be
Action to recover based on implied trust; prescribes
extraordinary in character which requires uninterrupted
after 10 years; except if plaintiff is in possession.
adverse possession for 30 years. (Heirs of Maningding v.
Once again, the Supreme Court ruled in Consuelo Vda. de CA, 342 Phil. 567 (1979)).
Gualberto, et al. vs. Francisco Go, et al., G.R. No. 139843,
July 21, 2005 that an action for reconveyance of real Thus, for ordinary acquisitive prescription to set in,
property based on implied or constructive trust is not possession must be for at least 10 years, in good faith and
barred by the 10-year period of prescription only if the with just title. Possession is “in good faith” when there is a
plaintiff is in actual, continuous and peaceful possession of reasonable belief that the person from whom the thing is
the property involved. In DBP vs. CA, 331 SCRA 267 (2000) received has been the owner thereof and could thereby
it was said that generally an action for reconveyance based transmit his ownership. (Art. 1127, NCC). There is “just
on an implied or constructive trust prescribes in 10-years title” when the adverse claimant comes into possession of
from the date of issuance of the decree of registration. the property through any of the modes recognized by law
However, this rule does not apply when the plaintiff is in for the acquisition of ownership or other real rights, but the
actual possession of the land. grantor is neither the owner nor in a position to transmit
the right. (Art. 1129, NCC).
If property is acquired through mistake or fraud, the person
ISSUANCE OF DECREE OF REGISTRATION AND
obtaining it is, by force of law, considered a trustee of an
CERTIFICATE OF TITLE
> The court shall issue within 15 days from the entry public land
thereof, an order directing the LRA administrator to issue 3. Buyer in bad faith
the corresponding decree of registration and certificate of 4. When the title over the land which you acquire is already
title privately owned
CERTIFICATE OF TITLE CERTIFICATE OF TITLE FREE FROM LIENS EXCEPT
THOSE NOTED THEREIN AND THE ENCUMBERANCES
1. The OCT shall be the true copy of the decree of
ENUMERATED IN THE LAW
registration
2. Transcript of the decree 1. Liens, claims, or rights existing or arising under the laws
3. Accumulates in one decree a precise and correct or the constitution which aren’t by law required
statement of the exact status of the fee simle title which 2. Unpaid real estate taxes levied or assessed within 2
an owner possesses years immediately preceding the acquisition of any right
4. Evidence of the title which the owner has over the land
5. What appears on the face of the title is controlling on 3. Any public highway or private way established or
questions of ownership sicne the certificate of title is an recognized by the law, or any government irrigation canal
absolute and indeafisible evidence of ownership of the or lateral thereof
property in favor of the person whose name appears theein 4. Any disposition of the property or limitation to the use
thereof by virtue of PD 27 or any other law or regulation or
DECREE BINDS THE LAND AND IS CONCLUSIVE
agrarian reform— Tenancy Emancipation Decree and
AGAINST THE WHOLE WORLD
Comprehensive Agrarian Reform Law)
> As soon as the decree of title has been registered in the 5. Rights incident to the relation of husband and wife and
office of the RD, the property included therein becomes landlord and tenant
registered land 6. Liability to attachment and execution
7. Liability to any lien of any description established by law
> Certificate of title shall take effect upon the transcription and the buildings thereon or an interest of the owner of
of the decree such lands or buidings
REGISTRATION DOESN'T GIVE ANY PERSON A BETTER 8. Rights incident to the laws of descent or partition
TITLE THAN WHAT HE REALLY HAS PROBATIVE between coowners
VALUE OF A CERTIFICATE OF TITLE 9. Taking of the property through eminent domain

> Serves as an indeafisible title to the property in favor of 10. Right to relieve the land from liability to be recovered
the person whose name appears therein and is conclusive by an assignee in insolvency or trustee in bankruptcy
as to the identity of the land and its location under the laws relative to preferences
> The title becomes indeafisible and incontrovertible one 11. Rights or liabilities created by law and applicable to
year from its final decree unregistered land
> The notations or memoranda at the back of the ENCUMBERANCES IN THE TITLE
certificate aren’t admissible as proof of the contracts or
documents to which they > Burden upon land, depreciative of its value, such as lien,
pertain easement, or servitude, which though adverse to the
> Validity and correctness of the title is presumed interest of the landowner, doesn't conflict with his
conveyance of the land in fee
WHERE TWO OR MORE CERTIFICATES COVER THE
SAME LAND, THE EARLIER IN DATE PREVAILS ENTRY LIEN ON THE TITLE
OF Original Certificate Of Title
> Charge on the property
> The OCT is issued for the first time after initial > Qualified right or a proprietary interest which may be
registration proceedings exercised over the property of another
> OCT shall be the true coy of the decree of registration
REMEMBER THE GENERAL RULE THAT THE
> Upon receipt of the RD of the original and duplicate copy
PURCHASER NEED NOT GO BEYOND THE REGISTRY
of the certificate of title, he shall enter the same in the
TO DETERMINE CONDITIONS OF PROPERTY
record book and shall be numbered, dated and signed and
sealed with the seal of his office SUPERIOR LIEN IN FAVOR OF GOVERNMENT
COMPLEMENTARY TO THE DISTRAINT OF PERSONAL
ISSUANCE OF THE OWNER’S DUPLICATE CERTIFICATE
PROPERTY AND INTEREST AND RIGHTS THEREIN AND
OF TITLE
JUDICIAL ACTION UNPAID REAL ESTATE TAXES
> Shall be delivered to the registered owner or his duly
> Refers to unpaid taxes levied and assessed within 2
authorized representative
years immediately preceding the acquisition of any right
> If 2 or more persons are registered owners, one owner’s
over the land by an innocent purchaser for value
duplicate may be issued for the whole land
> Automatically registered
> If the 2 co-owners desire, a separate duplicate may be
issued to each of them in like form but all outstanding TENANT EMANCIPATION DECREE
certificates so issued shall be surrendered whenever the
> Tenant farmer—if not registered, 5 hectares and if
RD shall register any subsequent voluntary transaction
irrigated, 3 hectares
affecting the whole land or part thereof or any interest
> Landowner may retain an area of not more than 7
therein
hectares if such landowner is cultivating such area or will
THE ISSUANCE OF MORTGAGEE’S DUPLICATE not cultivate it
CERTIFICATE IS DISCONTINUED CO OWNER MAY
Comprehensive Agrarian Reform Law
ONLY DISPOSE OF HIS ALIQUOT SHARE IN THE
PROPERTY HELD IN COMMON REGISTERED OWNER > Landowner may not retain more than 5 hectares
ENTITLED TO POSSESSION OF THE OWNER’S > Three hectares may be allowed to each child of the
DUPLICATE landowner— provided that he is at least 15 years old and
that he is actually tilling the land or directly managing the
> Registered owner has preferential right to the possession
farm
of the owner’s duplicate as against one whose name
doesn't appear in the certificate but who may have right or PUBLIC PATENT
claim to the possession of the land
> Land not subject to any encumberance or alienation
DECREE AND TITLE BECOME INCONTROVERTIBLE from the date of approval and for the term of 5 years from
AFTER ONE YEAR UPON ITS ISSUANCE. THERE ARE and after the date of issuance of the patent or grant
EXCEPTIONS THOUGH—
OTHER STATUTORY LIENS
1. Laches
2. If there is fraud and misrepresentation on the title over > Alienable lands of the public domain granted or donated
or transferred to a province, municipality, or branch of the
government shall not be alienated or encumbered or interest as may be equivalent to his share of the expenses
otherwise disposed of in a manner affecting its title except and taxes. No such waiver shall be made if it is prejudicial
when authorized by Congress to the co-ownership.
CONTENTS OF A CERTIFICATE OF TITLE The result is that the property remains to be in a condition
of co-ownership. While a vendee a retro, under Article 1613
1. Full names of all persons whose interest make up the full
of the Code, "may not be compelled to consent to a partial
ownership of the land
redemption," the redemption by one co-heir or co-owner of
2. Civil status
the property in its totality does not vest in him ownership
3. Names of the respective spouses
over it. Failure on the part of all the co-owners to redeem it
4. Citizenship
entitles the vendee a retro to retain the property and
5. Residence and postal address
consolidate title thereto in his name. 7But the provision
NOTHING IN THE DECREE SHALL BE CONSTRUED AS does not give to the redeeming co-owner the right to the
RELIEVING THE REGISTERED LAND OR THE OWNERS entire property. It does not provide for a mode of
THEREOF FROM ANY RIGHTS INCIDENT TO THE terminating a co-ownership.
RELATION OF THE HUSBAND AND WIFE, LANDLORD
Neither does the fact that the petitioner had succeeded in
AND TENANT, OR FROM LIABILITY FROM
securing title over the parcel in his name terminate the
ATTACHMENT, LEVY OR EXECUTION, OR ANY LIEN
existing co-ownership. While his half-brothers and sisters
ESTABLISHED BY LAW ON THE LAND AND THE
are, as we said, liable to him for reimbursement as and for
BUILDINGS THEREON
their shares in redemption expenses, he cannot claim
REGISTERED LAND MAY NOT BE ACQUIRED THROUGH exclusive right to the property owned in common.
ACQUISITIVE PRESCRIPTION Registration of property is not a means of acquiring
ownership. It operates as a mere notice of existing title,
REGISTERED OWNER MAY BE BARRED FROM that is, if there is one.
RECOVERING POSSESSION THROUGH LACHES:
ELEMENTS OF LACHES The petitioner must then be said to be a trustee of the
property on behalf of the private respondents. The Civil
1. Conduct on the part of defendant Code states:
2. Delay in asserting the complainant’s rights after having
knowledge or notice and having been afforded opportunity ART. 1456. If property is acquired through mistake or
to initiate a suit fraud, the person obtaining it is, by force of law, considered
3. Lack of knowledge or notice on the part of defendant a trustee of an implied trust for the benefit of the person
4. Inquiry or prejudice to the defendant from whom the property comes.

CERTIFICATE OF TITLE NOT SUBJECT TO ANY We agree with the respondent Court of Appeals that fraud
COLLATERAL ATTACK attended the registration of the property. The petitioner's
pretension that he was the sole heir to the land in the
A DIRECT ATTACK ON THE TITLE MAY BE MADE IN A affidavit of extrajudicial settlement he executed
COUNTERCLAIM OR THIRD-PARTY COMPLAINT preliminary to the registration thereof betrays a clear effort
SPLITTING OR CONSOLIDATING OF TITLE on his part to defraud his brothers and sisters and to
exercise sole dominion over the property. The aforequoted
> One need not go to court. All that must be done is to provision therefore applies.
write a written request to the RD.
It is the view of the respondent Court that the petitioner, in
SUBDIVISION OR CONSOLIDATION OF TITLE taking over the property, did so either on behalf of his co-
> “Which is not a subdivision project”—in relation to PD heirs, in which event, he had constituted himself
957 on subdivisions a negotiorum gestor under Article 2144 of the Civil Code,
> A SUBDIVISION PROJECT is when there is subdivision of or for his exclusive benefit, in which case, he is guilty of
property with intention to sell the lots fraud, and must act as trustee, the private respondents
> A COMPLEX SUBDIVISION PLAN is a plan wherein the being the beneficiaries, under the Article 1456. The
streets, passageways, etc. are stated in the title evidence, of course, points to the second alternative the
> If subdivision project, submit first to the HLURB, followed petitioner having asserted claims of exclusive ownership
by the LMB and then the RD over the property and having acted in fraud of his co-heirs.
He cannot therefore be said to have assume the mere
SUBDIVISION OF REGISTERED LAND management of the property abandoned by his co-heirs,
> Submit to LRA an approved subdivision plan by the LMB the situation Article 2144 of the Code contemplates. In any
case, as the respondent Court itself affirms, the result
CONVEYANCE OF ONLY A PORTION OF THE LAND would be the same whether it is one or the other. The
petitioner would remain liable to the Private respondents,
> RD shall not enter a new title in favor of the grantee until
his co-heirs.
after a plan indicating the portions into which the land has
been subdivided shall have been first presented together This Court is not unaware of the well-established principle
with technical decription that prescription bars any demand on property (owned in
common) held by another (co-owner) following the
CO-OWNERSHIP
required number of years. In that event, the party in
ADILLE VS CA possession acquires title to the property and the state of
co-ownership is ended . 8 In the case at bar, the property
The right of repurchase may be exercised by a co-owner
was registered in 1955 by the petitioner, solely in his
with aspect to his share alone. 5 While the records show
name, while the claim of the private respondents was
that the petitioner redeemed the property in its entirety,
presented in 1974. Has prescription then, set in?
shouldering the expenses therefor, that did not make him
the owner of all of it. In other words, it did not put to end We hold in the negative. Prescription, as a mode of
the existing state of co-ownership. terminating a relation of co-ownership, must have been
preceded by repudiation (of the co-ownership). The act of
Necessary expenses may be incurred by one co-owner,
repudiation, in turn is subject to certain conditions: (1) a
subject to his right to collect reimbursement from the
co-owner repudiates the co-ownership; (2) such an act of
remaining co-owners. 6 There is no doubt that redemption
repudiation is clearly made known to the other co-owners;
of property entails a necessary expense. Under the Civil
(3) the evidence thereon is clear and conclusive, and (4) he
Code:
has been in possession through open, continuous,
ART. 488. Each co-owner shall have a right to compel the exclusive, and notorious possession of the property for the
other co-owners to contribute to the expenses of period required by law. 9
preservation of the thing or right owned in common and to
The instant case shows that the petitioner had not
the taxes. Any one of the latter may exempt himself from
complied with these requisites. We are not convinced that
this obligation by renouncing so much of his undivided
he had repudiated the co-ownership; on the contrary, he
had deliberately kept the private respondents in the dark
by feigning sole heirship over the estate under dispute. He
cannot therefore be said to have "made known" his efforts
to deny the co-ownership. Moreover, one of the private
respondents, Emeteria Asejo, is occupying a portion of the
land up to the present, yet, the petitioner has not taken
pains to eject her therefrom. As a matter of fact, he sought
to recover possession of that portion Emeteria is occupying
only as a counterclaim, and only after the private
respondents had first sought judicial relief.
It is true that registration under the Torrens system is
constructive notice of title, 10 but it has likewise been our
holding that the Torrens title does not furnish a shield for
fraud. 11 It is therefore no argument to say that the act of
registration is equivalent to notice of repudiation,
assuming there was one, notwithstanding the long-
standing rule that registration operates as a universal
notice of title.
For the same reason, we cannot dismiss the private
respondents' claims commenced in 1974 over the estate
registered in 1955. While actions to enforce a constructive
trust prescribes in ten years, 12 reckoned from the date of
the registration of the property, 13 we, as we said, are not
prepared to count the period from such a date in this case.
We note the petitioner's sub rosa efforts to get hold of the
property exclusively for himself beginning with his
fraudulent misrepresentation in his unilateral affidavit of
extrajudicial settlement that he is "the only heir and child
of his mother Feliza with the consequence that he was able
to secure title in his name also." 14 Accordingly, we hold
that the right of the private respondents commenced from
the time they actually discovered the petitioner's act of
defraudation. 15 According to the respondent Court of
Appeals, they "came to know [of it] apparently only during
the progress of the litigation." 16 Hence, prescription is not
a bar.
Moreover, and as a rule, prescription is an affirmative
defense that must be pleaded either in a motion to dismiss
or in the answer otherwise it is deemed waived, 17 and
here, the petitioner never raised that defense. 18 There are
recognized exceptions to this rule, but the petitioner has
not shown why they apply.
OCAMPO VS OCAMPO

Basic is the rule that the party making an allegation in a

civil case has the burden of proving it by a preponderance
of evidence. In an action involving property, petitioners
should rely on the strength of their own title and not on the
alleged weakness of respondents’ claim.

An Acknowledgment of Co-ownership is not sufficient to

prove the existence of a co-ownership especially when it
was executed long after the property was donated to
another therefore has no longer ownership over the same.
It cannot prevail over the array of testimonial and
documentary evidence that had been adduced by
respondents to prove their defenses.