Land registrationFor legal research purposes of lawyers visiting this blog, may I simplify hereinbelow the basic things to do in handling a petition or application for original and cadastral land registration before the Regional Trial Courts (RTC) of the Philippines.

Original Land Registration (ordinary and cadastral);Simplified Procedures.

Ref.:

1. 2002 Rev. Manual for Clerks of Court; see Appendix B (LRA Manual of Instructions [for clerks of courts]);2. PD 1529, Sec. 14, et. seq. (Prop. Reg. Decree of 1978 [Orig. Reg.]);3. Act 2259 (Cadastral Act);4. CA No. 141 (Public Land Act).

Format of application/petition: read Sec. 15, PD 1529.

Attachments to the petition (3 copies of petition to be filed with RTC OCC):

1. Orig. plan in tracing cloth or diazo polyester film duly approved by the DENR Reg. Tech. Dir.2. In lieu thereof, a true copy of the said orig. plan attested and certified correct by the Reg. Tech. Dir. or his duly authorized official.3. Two white or blue print copies of the plan.4. Orig. And two copies of the technical descriptions certified by the Reg. Tech. Dir. or his authorized official. Not merely signed by the Geod. Engr.5. Orig. and two copies of the Geod. Engr.s certificate. In lieu thereof, a certification (orig. and two copies) from the Reg. Tech. Dir. as to its non-availability.6. Tax Dec. or in lieu thereof, an affid. of 3 disinterested person as to the market value of the land (Jud. Form 81).7. All orig. muniments of title of the petitioner which prove his ownership of the land. Not mandatory as along as the docs can be produced before the court during the trial.

Work to do before filing petition (secure orig. copies of the attachments to the petition):

1. Work out with the ofc. of the DENR Reg. Tech. Dir. All the approved plans, tech. descrip., certif.. of non-availability of Geod. Engr.s certificate.2. Work out with priv. Geod. Engr. the orig. copy of his Certif.3. Work out with the local Assessor the orig. copy of the Tax Dec.4. Gather all proofs of ownership deeds, contracts, special powers of attorney, etc.5. Gather all proofs of payments of taxes - local real estate and transfer taxes and all BIR/national revenue taxes involving the land and all related transactions.6. Others.

The petitioner must submit proof of service of a copy of the petition and its annexes on the Reg. Exec. Dir. of the DENR (by way of Copy Furnished). Allege in the petition. Attach affid. of service. (Sec. 17, Pd 1529).

Court docket and filing fees pay to RTC OCC.

Publication fees (notice of initial hearing) pay to LRA docket section. Bring certified copy of the order. The initial hearing is set not earlier than 45 days nor later than 90 days from the date of the issuance of the order. (Sec. 23, PD 1529).

Initial hearing:

1. Follow up the order of initial hearing.2. Follow up the publications of the order.3. During the initial hearing, move for general default4. Later on, get copy of the order of gen. default.5. During the initial hearing in open court, mark the proofs of juris. facts (see the Record of the case), to wit:5.1. Order of initial hearing5.2. Letter of RTC BCC forwarding the case to the LRA and the OSG5.3. Notices to the petitioner, adjoining owners, creditors, et. al.5.4. Sheriffs certificate of posting5.5. Proofs of notice of initial hearing addressed to concerned govt agencies: CENRO, PENRO, DENR Reg. Off., OSG, LRA, RD, et. al.5.6. Two certificates/affids. of publication (Off. Gaz. and a national newspaper). With orig. copies of the printed issue/s.5.7. Others (see the Record of the case and mark all notices/orders related to the initial hearing, as well as all proofs of service thereof).

Order of initial hearing must be issued within 5 days from filing of petition (after raffle to the court branch).

Two copies of order of initial hearing are served on the LRA within 15 days from issuance thereof. LRA shall arrange for its publication in the Off. Gaz. and in a national newspaper (once only). Petitioner must pay publication fee to LRA docket section cashier. Get OR.

Fees see Sec. 111, PD 1529. To be collected by RTC OCC. Based on assessed value of land and improvements, per Tax Dec. or per joint affid. of 3 disinterested person as to its market value. Get OR. (See also new Rule 141, Legal Fees; and Rule 142, Costs of Suit).

Cost of publications. To be paid to the LRA, approx. P1, 000 (Off. Gazz.). Fees of national newspaper vary. Go to LRA docket section with certif. copy of order of initial hearing, with court case/docket number, for ref. of LRA cashier.

Upon gen. default, petitioner may move for ex parte presentation of evid. before the BCC as commissioner. (Rule 32, Rules of Court).

The courts LRC Case No. (court docket no.) is different from the LRAs Rec. No. The LRA Rec. No. is set by LRA, not by the court.

After trial, the final steps are:

1. Decision. Get certified copies.2. Get Certificate of Finality of Judgment from the court staff.3. File a motion for issuance of decree of reg. Attach certificate of finality of judg. Notice of hearing.4. Follow up the order granting the motion.5. Follow up the Decree of Reg. (to be issued by the LRA). Get certif. copy of the Decree from LRA.6. LRA forwards orig. of the Decree to local RD concerned. Follow up status. Get certif. copy of Decree from RD (optional).7. Follow up with RD the issuance of OCT. Pay the RD reg. fees.8. Get owners duplic. copy of OCT from the RD.

Legend:

BCC Branch Clerk of CourtBIR - Bureau of Internal RevenueCA Commonwealth ActCENRO Community Environment and Natural Resources OfficeDENR Department of Environment and Natural ResourcesGeod. Engr. Geodetic EngineerLRA Land Registration AuthorityLRC Land Registration Commission (old name of LRA)Off. Gaz. Official GazetteOCC Office of the Clerk of CourtOCT Original Certificate of TitleOR Official ReceiptOSG Office of the Solicitor GeneralPD Presidential DecreePENRO Provincial Environment and Natural Resources OfficeRTC Regional Trial CourtRD Register of DeedsReg. Exec. Dir. Regional Executive DirectorReg. Tech. Dir. Regional Technical DirectorReg. Off. _ Regional OfficeTax Dec. Tax Declaration

Prepared by:

Atty. Manuel J. Laserna Jr.Managing Partner, Laserna Cueva Mercader LawOffices (LCM Law)Founder and Board Consultant, Las Pinas City BarAssociation (LPBA), Inc.Prof. of Law, FEU, Manila (ret.)lcmlaw@gmail.comhttp://attylaserna.blogspot.comhttp://lcmlaw.multiply.com

PROBATIVE VALUE OF A TORRENS TITLE

A Torrens title is generally a conclusive evidence of the ownership of the land referred to therein (Ching vs. Court of Appeals, 1990, 181 SCRA 9, 18; Sec. 49, Act 496). It is settled that mere possession cannot defeat the title of a holder of a registered Torrens title to real property (J.M. Tuazon & Co. Inc. vs. Court of Appeals, 1979, 93SCRA 146 cited in Abad vs Court of Appeals, 1989, 179 SCRA 817, 826-827).A Torrens certificate accumulates in one document a precise and correct statement of the exact status of the fee simple title which as owner possesses. The certificate, once issued, is the evidence of the title which the ownerhas (Legarda, et al., vs. Saleedy, 31 Phil. 590 [915].

A Torrens title, once registered, cannot be defeated, even by adverse, open, and notorious possession. A registered title under the Torrens system cannot be defeated by prescription. The title, once registered, is noticed to the whole world. All persons must take notice. No one can plead ignorance of the registration (Egao vs. Court of Appeals, 1989, 174 SCRA 484, 492 citing Legarda vs. Saleeby, 31 Phil. 590, 595; See also Sec. 46 of Act 496, Land Registration Act).

4. In the case of a transfer certificate of title, the same is enforceable in the hands of a holder in good faith and for valuable consideration or an innocent purchaser for value. An innocent purchaser for value is deemed, under the Torrens system, to include an innocent lessee, mortgagee, or other encumbrances for value (Ibid citing Leung Yee vs. Strong Machinery Co., 37 Phil. 644). Section 51, Paragraph 2 of the Property Registration Decree (P.D. 1529) of Land Registration Act (Act No. 496).

5. Section 3 of Presidential Decree No. 1073 dated January 25, 1977 further provides: Section 3 the judicial confirmation of incomplete titles to public land based on unperfected Spanish Grants such as application for the purchase, prior to the transfer or sovereignty from Spanish to the United State shall no longer be allowed. However, P.D. 1529 should be read in conjunction with the provisions of this section shall not be construed as prohibiting any person claiming the same land under Section 48 (and Section 48 (C) if he meets the conditions prescribed for Judicial confirmation of Torrens System.

6. On July 7, 1989, Trial on the merits proceeded against the private respondents Ocampo, Buhain and Dela Cruz, the lower court rendered judgment dismissing the complaint on the subject land claim in the history of the Philippines in the subject controversy in these consolidated cases base on the following ground that; (a) private respondent are already the registered owners of the parcels of land covered by Torrens title which cannot be defeated by the alleged Spanish title. (b) To enjoy the presumption of validity as a last hurrah to champion their claim to the vast state covered by the Spanish title.

GENERAL RULE

A certificate of titles is not conclusive evidence of title if the same land had already been registered and an earlier certificate for the same is in existence whether wholly or partly, the certificate that is earlier title in date prevails. (Heir of Luis J. Gonzales vs. Gonzaga vs. Court of Appeal, 261 SCRA 327)

A land registration court has no jurisdiction to order the registration of land already decreed in the name of another in earlier land registration case. (Laburada vs. Land Registration Authority, 387 SCRA 333) a second decree for the same land is, therefore, null and void (Metropolitan Waterworks and Sewerage System vs. Court of Appeal, 215 SCRA 783) once declared by a court of competent jurisdiction, the Torrens System Title to the land is already a res judicata binding on the whole world, the proceeding being in rem (Lahora vs. Dayanghirang, Jr., 37 SCRAA 346).

Proceeding in rem. Judicial proceedings for the registration of lands throughout the Philippines shall be in rem, and shall be based on the generally accepted principles underlying the Torrens system. (P.D. 1529, Sec. 2)

Land registration under the Torrens system is a judicial proceeding in rem (P.D. 1529. Sec. 2), intended to confirm and register the ownership or title of a person over the land. (see Republic vs. Reyes, 71 SCRA 450, 458; Development Bank of the Phil. Vs. Court of Appeals, 331 SCRA 267, 281)

In rem proceedings such as land registration constitutes constructive notice to the whole world. (Calalang vs. Register of Deeds of Quezon City, 208 SCRA 215) (Machine copy is hereto attached as NNEX and made an integral part of this paragraph.)

G.R. No. L-18276 January 12, 1967C. N. HODGES,petitioner-appellee,vs.THE MUNICIPAL BOARD OF THE CITY OF ILOILO; Honorable Rodolfo Ganzon, in his capacity as City Mayor of the City of Iloilo; and the CITY OF ILOILO,respondents-appellants.The registration with the registry of deeds of voluntary conveyances of real property under the Torrens system is, in this jurisdiction, mainly controlled by the Land Registration Act, Act 496, as amended. Amongst others, this statute provides that "... The act of registration shall be the operative act to convey and affect the land, and in all cases under this Act the registration shall be made in the office of the register of deeds for the province or provinces or city where the land lies" (section 50). The requirements for deeds or other voluntary instruments of conveyance to be registrable thereunder are specified in the law (section 54) and, for purposes of registration, "The production of the owner's duplicate certificate whenever any voluntary instrument is presented for registration shall be conclusive authority from the registered owner to the register of deeds to enter a new certificate or to make a memorandum of registration in accordance with such instrument, and the new certificate or memorandum "shall be binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value and in good faith ..." (section 55, par. 2). The schedule of fees to be paid upon such registration is likewise therein set forth (section 114, sub-section C, as amended by Republic Act 928). In addition, Republic Act 456 also requires that "No voluntary document by which real property or an interest therein is sold, transferred, assigned, mortgaged or leased shall be registered in the registry of property, unless the real estate taxes levied and actually due thereon shall have been fully paid" (section 1); and, that "Every document of transfer or alienation of real property filed with the Register of Deeds shall be accompanied with an extra copy of the same which copy shall be transmitted by said officer to the city or provincial assessor ... (section 2). As it thus results, the Legislature appears to have specified the minimum requirements for the registration of conveyances of real property. Upon satisfaction of the said requirements, it becomes the legal duty of the registrar to make the registration requested. No entity, it seems clear enough, except the Legislature itself, may add to or detract from or otherwise alter or amend the requirements it has so enumerated and then only by the corresponding amendment of the existing statutes or the enactment of new ones.Lis Pendens[Latin, Pending lawsuit.] A reference to the jurisdiction (or control) that courts obtain over property in a suit awaiting action.A notice filed in the office of public records that the ownership of real property is the subject of a legal controversy and that anyone who purchases it takes it subject to any claims asserted in the action and thereby its value might be diminished.West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

lis pendens(lease pen-dense) n. Latin for "a suit pending," a written notice that a lawsuit has been filed which concerns the title to real property or some interest in that real property. The lis pendens (or notice of pending action) is filed with the clerk of the court, certified that it has been filed, and then recorded with the county recorder. This gives notice to the defendant who owns real estate that there is a claim on the property, and the recording informs the general public (and particularly anyone interested in buying or financing the property) that there is this potential claim against it. The lis pendens must include a legal description of the real property, and the lawsuit must involve the property. Otherwise, if there is a petition to remove the lis pendens from real property not involved in the lawsuit, the plaintiff who originally recorded a false lis pendens will be subject to payment of attorneys fees as a penalty. Example: Joe Plumbob provides work and materials to Smith's home, sues to enforce a mechanic's lien, but records a lis pendens describing three other properties owned by Smith; Plumbob can be penalized by court order.Copyright 1981-2005 byGerald N. Hill and Kathleen T. Hill. All Right reserved.

lis pendensnounfiled notice,notice of an action, nooice of pending suit,notice of right,notice on fileBurton's Legal Thesaurus, 4E. Copyright 2007 by William C. Burton. Used with permission of The McGraw-Hill Companies, Inc.

LIS PENDENS. The pendancy of a suit; the time between which it is instituted and finally decided. 2. It has been decided that the mere serving of a subpoena in chancery, unless a bill be also filed, is not a sufficient lis pendens, but the bill being filed, the lis pendens commences from the service of the subpoena, although that may not be returnable till the following term 1 Vern. 318; and after a decree, final in its nature, there remains no lis pendens. 1 Vern. 459. 3. It is a general rule, that lis pendens is a general notice of an equity to all the world. 3 Atk. 343; 2 P. Wms. 282; Amb. 676; 1 Vern. 286. Vide 2 Fonb. Eq. 152, note; 1 Supp. to Ves. jr. 284; 3 Rawle, R. 14; Pow. Mortg. index, h.t.; 1 John. Ch. R. 566; 2 John. Ch. R. 158; 4 John. Ch. Rep. 83; 2 Rand. Rep. 93; 1 M'Cord, Ch. R. 264; Harp. Eq. R. 224; 1 Bibb, R. 314; 5 Ham. Rep. 462; 4 Cowen, R. 667; 1 Wend. R. 583; 1 Desaus. R. 167, 170; 2 Edw. R. 115; 1 Hogan, R. 69; 6 Har. & John. 21; 2 Dana, R. 480; Jac. R. 202; 1 Russ. & My. 617 Corn. Dig. Chancery, 4 C 3; 2 Bell's Com. 152, 5th ed.; 1 Bail. Eq. R. 479; 7 Dana, R. 110; 7 J. J. Marsh. 529; 1 Clarke, R. 560, 584; 14 Ohio, 109, 323. 4. When a defendant is arrested pending a former suit or action, in which he was held to bail, he will not, in general, be held to bail, if the second suit be for the same cause of action. Grah. Pr. 98; Tro. & Hal. Pr. 44; 4 Yeates' R. 206. But under special circumstances, he may be held to bail twice, and of these circumstances the court will judge. 2 Miles, Rep. 99, 100, 142. See 14 John. R. 347. When such a second action is commenced, the first ought to be discontinued and the costs paid; but, it seems, it is sufficient if they are paid before the replication of nul tiel record to a plea of autre action pendant. in the second suit. Grah. Pr. 98; and see 1 John. Cas. 397; 7 Taunt. 151; 1 Marsh. R. 395; Merl. Rep. Litispendance; 5 Ohio R. 462; 6 Ohio R. 225; 1 Blackf. R. 53; Id. 315; Autre action pendent; Bail; Litigiosity.A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.

MALACAANGM a n i l aPRESIDENTIAL DECREE No. 1529AMENDING AND CODIFYING THE LAWS RELATIVE TO REGISTRATIONOF PROPERTYAND FOR OTHER PURPOSESSection 44. Statutory liens affecting title. Every registered owner receiving a certificate of title in pursuance of a decree of registration, and every subsequent purchaser of registered land taking a certificate of title for value and in good faith, shall hold the same free from all encumbrances except those noted in said certificate and any of the following encumbrances which may be subsisting, namely:First. Liens, claims or rights arising or existing under the laws and Constitution of the Philippines which are not by law required to appear of record in the Registry of Deeds in order to be valid against subsequent purchasers or encumbrancers of record.Second. Unpaid real estate taxes levied and assessed within two years immediately preceding the acquisition of any right over the land by an innocent purchaser for value, without prejudice to the right of the government to collect taxes payable before that period from the delinquent taxpayer alone. Third. Any public highway or private way established or recognized by law, or any government irrigation canal or lateral thereof, if the certificate of title does not state that the boundaries of such highway or irrigation canal or lateral thereof have been determined.Fourth. Any disposition of the property or limitation on the use thereof by virtue of, or pursuant to, Presidential Decree No. 27 or any other law or regulations on agrarian reform.

ASSURANCE FUNDSection 93. Contribution to Assurance Fund. Upon the entry of a certificate of title in the name of the registered owner, and also upon the original registration on the certificate of title of a building or other improvements on the land covered by said certificate, as well as upon the entry of a certificate pursuant to any subsequent transfer of registered land, there shall be paid to the Register of Deeds one-fourth of one per cent of the assessed value of the real estate on the basis of the last assessment for taxation purposes, as contribution to the Assurance Fund. Where the land involved has not yet been assessed for taxation, its value for purposes of this decree shall be determined by the sworn declaration of two disinterested persons to the effect that the value fixed by them is to their knowledge, a fair valuation.Nothing in this section shall in any way preclude the court from increasing the valuation of the property should it appear during the hearing that the value stated is too small.Section 94. Custody and investment of fund. All money received by the Register of Deeds under the preceding section shall be paid to the National Treasurer. He shall keep this money in an Assurance Fund which may be invested in the manner and form authorized by law, and shall report annually to the Commissioner of the Budget the condition and income thereof.The income of the Assurance Fund shall be added to the principal until said fund amounts to five hundred thousand pesos, in which event the excess income from investments as well as from the collections of such fund shall be paid into the National Treasury to the account of the Assurance Fund.Section 95. Action for compensation from funds. A person who, without negligence on his part, sustains loss or damage, or is deprived of land or any estate or interest therein in consequence of the bringing of the land under the operation of the Torrens system of arising after original registration of land, through fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book, and who by the provisions of this Decree is barred or otherwise precluded under the provision of any law from bringing an action for the recovery of such land or the estate or interest therein, may bring an action in any court of competent jurisdiction for the recovery of damages to be paid out of the Assurance Fund.CLAIMS AGAINST THE ASSURANCE FUND> Section 95 provides a remedy where a person who sustains loss or damage or is deprived of any estate or interest in land in consequence of the operations of the Torrens system of registration, without negligence on his part, may bring an action for the recovery of damages to be paid out of the Assurance fund> Public policy demands that those unjustly deprived of their rights over real property by reason of the operation of our registration laws be afforded remedies> According to the principles of the Torrens system, it is a condition sine que non that the person who brings an action for damages against the Assurance fund be the registered owner, and as to holders of transfer certificates of title that they be innocent purchasers in good faith and for value> There must also be a showing of loss or damage or deprivation of any land or interest thereon by the operation of PD1529> Where plaintiff is solely responsible for the plight in which it finds itself, the Director of Lands and the National Treasurer are exempt from any liabilityREQUISITES FOR RECOVERY FROM THE ASSURANCE FUND1. That a person sustains loss or damage, or is deprived of any estate or interest in land2. On account of bringing of land under the operations of the Torrens system arising after the original registration3. Through fraud, error, omission, mistake, or misdescription in a certificate of title or entry or memorandum in the registration4. Without negligence on his part5. And is barred or precluded from bringing an action for the recovery of such land or estate or interest thereinRECORDED MORTGAGE IS PROTECTED EVEN IF TITLE IS SUBSEQUENTLY NULLIFIEDLand RegistrationSection 10 of Presidential Decree No. 1529, as amended provides for the duty of the Register of Deeds in so far registration of instruments are concerned. It states,"It shall be the duty of the Register of Deeds to immediately register an instrument presented for registration dealingwith real or personal property which complies with all the requisites for registration."

Now, can the Register of Deeds refuse registration of an instrument? Subsequent portion of said section provides,"He shall see to it that said instrument bears the proper documentary and science stamps and that the same are properly canceled. If the instrument is not registerable, he shall forthwith deny registration thereof and inform the presentor of such denial in writing, stating the ground or reason therefor, and advising him of his right to appeal by consulta in accordance with Section 117 of this Decree."

Clearly, when theRegister of Deeds, for some reason or another, refuse registration or annotation of a particular instrument, document or paper, the remedy provided by law is to appeal by consulta said denial to the Land Registration Authority.

Here are the steps or procedure of appeal by consulta:

1) The Register of Deeds shall notify the interested party in writing, setting forth the defects of the instrument or the legal ground relied upon for denying the registration, and advising that if he is not agreeable to such ruling, he may, without withdrawing the documents from the Registry, elevate the matter by Consulta to the Administrator of the Land Registration Authority (LRA).

2) Within five {5) days from receipt of notice of denial, the party-in-interest shall file his Consulta with the Register of Deeds concerned and pay the consulta fee.

3) After receipt of the Consulta and payment of the corresponding fee the Register of Deeds makes an annotation of the pending consulta at the back of the certificate of title.4) The Register of Deeds then elevates the case to the LRA Administrator with certified records thereof and a summary of the facts and issues involved.

5) The LRA Administrator then conducts hearings after due notice or may just require parties to submit their memoranda.

6) After hearing, the LRA Administrator issues an order prescribing the step to be taken or the memorandum to be made. His resolution in consulta shall be conclusive and binding upon all Registers of Deeds unless reversed on appeal by the Court of Appeals or by the Supreme Court. (Section 117, P.D. 1529).

A certainRegister of Deedsdenied the registration of the Deed of Absolute Sale executed by a corporation sole on the ground that Court Approval is necessary since the Vendor being a corporation sole pursuant toSection 113 of Batas Pambansa Blg. 68, theCorporation Code of the Philippines.

Pursuant toSection 117 of Presidential Decree No. 1529, otherwise known as theProperty Registration Decree, we elevate the matter toLand Registration Authority (LRA)by way ofconsulta.

BASIS OF CONSULTA

Section 117 of the Property Registration Decree reads

Section 117. Procedure. When the Register of Deeds is in doubt with regard to the proper step to be taken or memorandum to be made in pursuance of any deed, mortgage or other instrument presented to him for registration, or where any party in interest does not agree with the action taken by the Register of Deeds with reference to any such instrument, the question shall be submitted to the Commissioner of Land Registration by the Register of Deeds, or by the party in interest thru the Register of Deeds. Where the instrument is denied registration, the Register of Deeds shall notify the interested party in writing, setting forth the defects of the instrument or legal grounds relied upon, and advising him that if he is not agreeable to such ruling, he may, without withdrawing the documents from the Registry, elevate the matter by consulta within five days from receipt of notice of the denial of registration to the Commissioner of Land Registration.

The Register of Deeds shall make a memorandum of the pending consulta on the certificate of title which shall be cancelled motu proprio by the Register of Deeds after final resolution or decision thereof, or before resolution, if withdrawn by petitioner.

The Commissioner of Land Registration, considering the consulta and the records certified to him after notice to the parties and hearing, shall enter an order prescribing the step to be taken or memorandum to be made. His resolution or ruling in consultas shall be conclusive and binding upon all Registers of Deeds, provided, that the party in interest who disagrees with the final resolution, ruling or order of the Commissioner relative to consultas may appeal to the Court of Appeals within the period and in manner provided in Republic Act No. 5434.

STATEMENT OF MATERIAL DATES

Include a statement that the corporation sole has until a particular date (it should be within five days)to elevate the matter by consulta to the Land Registration Authority.

STATEMENT OF FACTS

ISSUEWhether or not the Deed of Absolute Sale is registrable, despite the absence of a Court Approval allowing the corporation sole, to sell the Property?

DISCUSSION

1. Section 113 of the Corporation Code of the Philippines was the basis for the denial of registration by the Register of Deeds. Section 113 is hereto quoted in full, as follows:

Acquisition and alienation of property.- Any corporation sole may purchase and hold real estate and personal property for its church, charitable, benevolent or educational purposes, and may receive bequests or gifts for such purposes. Such corporation may sell or mortgage real property held by it by obtaining an order for that purpose from the Court of First Instance of the province where the property is situated upon proof made to the satisfaction of the court that notice of the application for leave to sell or mortgage has been given by publication or otherwise in such manner and for such time as said court may have directed, and that it is to the interest of the corporation that leave to sell or mortgage should be granted. The application for leave to sell or mortgage must be made by petition, duly verified, by the chief archbishop, bishop, priest, minister, rabbi or presiding elder acting as corporation sole, and may be opposed by any member of the religious denomination, sect or church represented by the corporation sole: Provided, That in cases where the rules, regulations and discipline of the religious denomination, sect or church, religious society or order concerned represented by such corporation sole regulate the method of acquiring, holding, selling and mortgaging real estate and personal property, such rules, regulations and discipline shall control, and the intervention of the courts shall not be necessary. (portions in bold are added for emphasis)

2. Basing only on the first paragraph of the above quoted Section 113 of the Corporation Code, the Register of Deeds is correct in his denial. However, he erroneously missed the proviso on the same Section 113 that states Provided, That in cases where the rules, regulations and discipline of the religious denomination, sect or church, religious society or order concerned represented by such corporation sole regulate the method of acquiring, holding, selling and mortgaging real estate and personal property, such rules, regulations and discipline shall control, and the intervention of the courts shall not be necessary.

3. A corporation sole was organized and registered with the Securities and Exchange Commission, under the following provision of the Corporation Code of the Philippines (Corporation Code):

SECTION 110. Corporation Sole. For the purpose of administering and managing, as trustee, the affairs, property and temporalities of any religious denomination, sect or church, a corporation sole may be formed by the chief archbishop, bishop, priest, minister, rabbi or other presiding elder of such religious denomination, sect or church.

6. For the purpose of this consulta, it is instructive to note that corporation sole described in Section 113 of the Corporation Code, may purchase, hold and dispose of real estate and personal property for its church, charitable, benevolent or educational purposes. Moreover, corporation sole has rules, regulations and discipline which regulates the method of acquiring, holding, selling and mortgaging real estate and personal property, such that the existence of said rules, regulations and discipline, the intervention of the courts shall not be necessary as said rules, regulations and discipline would control.

10. Since corporation sole rules, regulations and discipline regulate the method of selling real estate property, such rules, regulations and discipline shall control, and the intervention of the courts shall not be necessary. Hence, the Deed of Absolute Sale is registrable, despite the absence of a Court Approval allowing LDS, being a corporation sole, to sell the Property.

PRAYER

We therefore request that:

1. The Land Registration Authority directs the Register of Deeds to register the Deed of Absolute Sale between the parties--

2. The Register of Deeds be further directed to cause the cancellation of Transfer Certificate of Title No. and the issuance of a new title covering the ---square meters subject of the sale in favor of the buyer.

Based on LRA CIRCULAR No. 04-2005 otherwise known as the Supplement to Rules and Procedure on Consulta, it is directed that all Consulta shall be filed directly with the Register of Deeds concerned who shall endorse the same to the LRA after payment of the required fees. No consulta shall be entertained by LRA without the required endorsement from the Register of Deeds.