MISCELLANEOUS SALES PATENT

Republic Act No. 730

Written Report for Environmental Law II

Submitted By:

Reuville U. Clemencio Kristel Joy Biscayda

Richel B. AbelidaCecelia Timbal

Joshly PangatunganRamon Isagani Bautista IIIJennifer Simone Tinagan

Rhobie Corbo Lex Silvosa

Ileen Mae Verana

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THE LAW

June 18, 1952 

REPUBLIC ACT NO. 730

AN ACT TO PERMIT THE SALE WITHOUT PUBLIC AUCTION OF PUBLIC LANDS OF THE REPUBLIC OF THE PHILIPPINES FOR RESIDENTIAL

PURPOSES TO QUALIFIED APPLICANTS UNDER CERTAIN CONDITIONS 

SECTION 1.  Notwithstanding the provisions of sections sixty-one and sixty-seven of Commonwealth Act Numbered One hundred forty-one, as amended by Republic Act Numbered Two hundred ninety-three, any Filipino citizen of legal age who is not the owner of a home lot in the municipality or city in which he resides and who has in good faith established his residence on a parcel of the public land of the Republic of the Philippines which is not needed for the public service, shall be given preference to purchase at a private sale of which reasonable notice shall be given to him not more than one thousand square meters at a price to be fixed by the Director of Lands with the approval of the Secretary of Agriculture and Natural Resources. It shall be an essential condition of this sale that the occupants has constructed his house on the land and actually resided therein. Ten per cent of the purchase price shall be paid upon the approval of the sale and the balance may be paid in full, or in ten equal annual installments.

SECTION 2.  Except in favor of the Government or any of its branches, units, or institutions lands acquired under the provisions of this Act shall not be subject to encumbrance or alienation before the patent is issued and for a term of ten years from the date of the issuance of such patent, nor shall they become liable to the satisfaction of any debt contracted prior to the expiration of said period. No transfer or alienation made after the said period of ten years and within fifteen years from the issuance of such patent except those made by virtue of the right of succession shall be valid unless when duly authorized by the Secretary of Agriculture and Natural Resources and the transferee or vendee is a Filipino citizen. Every conveyance made shall be subject to repurchase by the original purchaser or his legal heirs within a period of five years from the date of conveyance.

Any contract or agreement made or executed in violation of this section shall be void ab initio.

SECTION 3.  The provisions of the Public Land Act with respect to the sale of lands for residential purposes which are not inconsistent herewith shall be applicable.

SECTION 4.  This Act shall take effect upon its approval.

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Approved: June 18, 1952

AMENDMENT

PRESIDENTIAL DECREE NO. 2004 - AMENDING Section TWO OR REPUBLIC ACT NUMBERED SEVEN HUNDRED AND THIRTY RELATIVE TO THE SALE WITHOUT PUBLIC AUCTION OF PUBLIC LANDS OF THE REPUBLIC OF THE PHILIPPINES FOR RESIDENTIAL PURPOSES TO QUALIFIED APPLICANTS UNDER CERTAIN CONDITIONS WHEREAS, Republic Act No. 730 permits the sale without public auction of public lands of the Republic of the Philippines for residential purposes to qualified applicants under certain conditions;

WHEREAS, land required thereunder are subject to onerous restrictions against encumbrance or alienation; and

WHEREAS, it is necessary to remove these onerous restrictions to allow the effective utilization of these lands.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, pursuant to the powers vested in me by the Constitution, do hereby decree:

Section 1. Section Two of Republic Act Numbered Seven Hundred and Thirty is hereby amended to read as follows:

"Sec. 2. Lands acquired under the provisions of this Act shall not be subject to any restrictions against encumbrance or alienation before and after the issuance of the patents thereon."

Sec. 2. This Decree shall take effect immediately.  

IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed. 

DONE in the City of Manila, this 30th day of December, in the year of Our Lord, nineteen hundred and eighty-five.

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BRIEF BACKGROUND

In relation to Sec. 103, PD 1529

Sec. 103, PD 1529Section 103. Certificates of title pursuant to patents. Whenever public land is by the Government alienated, granted or conveyed to any person, the same shall be brought forthwith under the operation of this Decree. It shall be the duty of the official issuing the instrument of alienation, grant, patent or conveyance in behalf of the Government to cause such instrument to be filed with the Register of Deeds of the province or city where the land lies, and to be there registered like other deeds and conveyance, whereupon a certificate of title shall be entered as in other cases of registered land, and an owner's duplicate issued to the grantee. The deed, grant, patent or instrument of conveyance from the Government to the grantee shall not take effect as a conveyance or bind the land but shall operate only as a contract between the Government and the grantee and as evidence of authority to the Register of Deeds to make registration. It is the act of registration that shall be the operative act to affect and convey the land, and in all cases under this Decree, registration shall be made in the office of the Register of Deeds of the province or city where the land lies. The fees for registration shall be paid by the grantee. After due registration and issuance of the certificate of title, such land shall be deemed to be registered land to all intents and purposes under this Decree.

Scope of Section 103.The instruments mentioned in Section 103 whereby public lands are “alienated, granted, or conveyed” are instruments transferring ownership – not documents of lease, transferring mere possession. The provision directs the issuance to the grantee of “owner’s duplicate certificate.” After due registration and issuance of the certificate of ttile, the land shall be deemed registered land to all intents and purposes under the Property Registration Decree. Public land patents when duly registered are veritable Torrens titles subject to no encumbrances except those stated therein, plus those specified by the statute. They become private property which can no longer be the subject of subsequent disposition by the Director of Lands.

Lands subject to Sales Patent

1. Public Agricultural lands2. Lands for residential, commercial or industrial purposes3. Lands for residential purposes (direct sale)4. Lands within military reservations5. Lands for educational, charitable and other purposes.

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General Rule and Exception

While specific classes of lands may be sold only at auction, RA 730 permits the direct sale of public lands for residential purposes to qualified applicants under certain conditions.

What is R.A. No. 730 about

RA No. 730 merely provides an exception to Section 61 and 67 of CA No. 141. In short, the law authorizes a sale by private sale, as an exception to the general rule that it should be by bidding, provided the area applied for does not exceed 1,000 square meters, and the applicant has in his favor the conditions specified for in Section 1 thereof. Hence, if the area applied for is in excess of 1,000 square meters, the sale must be done only through bidding.

What is a Miscellaneous Sales Application

REPUBLIC ACT NO. 730 is an act permitting sale without public auction of alienable and disposable lands of the public domain for residential purpose.

 What is a Miscellaneous Sales Patent

The application to purchase the land is called the Miscellaneous Sales Application and the corresponding patent is called the Miscellaneous Sales Patent.

RA No. 730 merely provides an exception to Section 61 and 67 of CA No. 141. In short, the law authorizes a sale by private sale, as n exception to the general rule that it should be by bidding, provided the area applied for does not exceed 1,000 square meters, and the applicant has in his favor the conditions specified for in Section 1 thereof. Hence, if the area applied for is in excess of 1,000 square meters, the sale must be done only through bidding.

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WHO ARE QUALIFIED TO APPLY

The law provides that the following may be qualified to apply for Miscellaneous Sales Patent.

1. A Filipino citizen of lawful age, married; if single, applicant must be the head or bread winner of the family;

2. He is not the owner of a home lot in the municipality/city where the land applied for is located;

3. He must have occupied in good faith the land applied for and constructed a house thereon where he/she and family is actually residing.

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REQUIREMENTS IN THE FILING

These are the requirements need in the filing of MISCELLANEOUS SALES APPLICATION UNDER R.A. NO. 730:

1. Application Filing fee of P50.00;

2. Approved plan and technical description of the land applied for;

3. Affidavit of the applicant stating that:A. He is not the owner of any other home lot in the

municipality/city where he resides.B. He is requesting that the land be sold to him under the

provision of R. A. No. 730.

4. If the applicant is single, he must submit an affidavit stating that he is the head or bread winner of the family;

5. The land is not needed for public use.

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MAXIMUM AREA THAT MAY BE GRANTED TO AN APPLICANT

Section 6 of Public Land Act mandates classification of Public lands into alienable and disposable, timber and mineral lands which is a prerogative of the executive department under time-honored Constitutional precepts. It is well celebrated that only alienable and disposable lands may be subject of disposition and when we speak of disposition, the law has provided for the modes of disposition and one of which is by sale.

While specific classes of lands may be sold only at auction, RA No. 730 permits the direct sale of public lands for residential purposes to qualified applicants under certain conditions subject to land area limitations.

With Miscellaneous Sales Patent, the applicant can only be granted a maximum area of 1,000 square meters. The law authorizes, a sale by private sale, as an exception to the general rule that it should be done by bidding, provided the area applied for does not exceed 1,000 square meters, and the applicant has in his favor the conditions specified for in Section 1 of RA No. 730. Hence, if the area applied for is in excess of 1,000 square meters, the sale must be done only through bidding.

Be it noted that, Presidential Decree No. 2004 dated December 30, 1985 amended Section 2 of Republic Act 730 thus, lands acquired under this Act before and after the issuance of patent thereon are no longer subject to any restriction.

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STEPS IN ACQUIRING A MISCELLANEOUS SALES PATENT

The following are the steps to be followed in acquiring a Miscellaneous Sales Patent:

1. Filing of application at the CENRO;

2. Investigation and appraisal of the land applied for;

3. Survey of the land if not yet surveyed;

4. Investigation report whether the applicant possesses the qualification for direct sales;

5. Comment and recommendation of the District/City engineer with the concurrence of the Regional Director, Department of Public works and Highways;

6. Recommendation to the PENRO for approval of appraisal and request for authority to sell without public auction;

7. Approval of appraisal and grant of authority to sell by the PENRO;

8. Posting of notice of sale without public auction for thirty (30) consecutive days in the following places:

a. CENRO Bulletin board b. Municipal building bulletin board c. Barangay Hall bulletin board d. On the land itself

9. Submission of the proofs of posting and payment of at least 10% of the appraised value of the land;

10.Order of Award;

11.Proof of full payment of the purchase price of the land;a. Order issuance of Miscellaneous Sales Patent in Judicial Form No.

167 with the technical description duly inscribed at the back thereof;

12.Approval and signature of the Miscellaneous Sales Patent by the official concerned;

13.Approval and signature of the Miscellaneous Sales Patent by the official concerned;

14.Transmittal of the Miscellaneous Sales Patent to the Register of Deeds concerned for the issuance of the corresponding Original Certificate of the

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Title to the applicant.

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SOME JURISPRUDENCE

REPUBLIC OF THE PHILIPPINES vs. MABELLE RAVELO and SPOUSES EMMANUEL and PERLITA REDONDOG.R. No. 165114 , August 6, 2008

Cancellation of title and reversion of a real property granted under a sales patent.

Facts:On May 31, 1989, the DENR granted a miscellaneous sales application

over the subject lot in favor of Jose Fernando and Victoriano Mortera, Jr. However, prior to the DENR's action, specifically on, the Director of Lands issued Sales Patent covering the same subject lot to respondent Ravelo and she was subsequently issued OCT. In effect, the DENR's Order in the Fernando-Mortera-Muyco dispute was not enforced. The petitioner filed a complaint for cancellation of Ravelo's OCT No. P-4517 and Sales Patent No. 12458. On March 24, 1994, a notice of lis pendens on Ravelo's OCT No. P-4517. The government also accused Ravelo of fraud for asserting in her application that the land was not occupied and was a part of the public domain.

In a separate development, one Antonio Chieng filed on December 13, 1989 a collection suit against Ravelo which suit led to a judgment against Ravelo and the issuance of a writ of execution. The Notice of Levy was registered with the Register of Deeds on March 17, 1993. In the auction sale that followed, Wilson Chieng, Antonio Chieng's son, won as highest bidder. A certificate of sale was issued to Chieng and the sale was registered with the Olongapo Registry of Deeds on May 25, 1993.

The respondent-spouses who own and reside in a property adjacent to the subject lot, subsequently bought the subject lot from Chieng.

In a pending case filed by the petitioner against Ravelo, the Redondos intervened, alleging that they acquired the subject lot in good faith and for value.

Issue:1. Whether or not the real property granted under a sales patent can be

reverted back to the public domain despite the fact that it was transferred to another person.

2. Whether or not the sale on execution of the subject lot is void.

Held:The government's notice of lis pendens came after the execution sale

and thus cannot affect Chieng and the conveyance to him of the subject lot. However, the notice affects all transactions relating to OCT No. P-4517

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subsequent to its registration date - March 24, 1994. From that date, there was a binding notice to the whole world that any subsequent claim on OCT No. P-4517 would be subject to the annotated pending action. Specifically, the sale by Chieng to the Redondos of the subject lot on December 20, 1994 was subject to the notice of lis pendens duly annotated on Chieng's title.

Cancellation and ReversionSeparately from the misrepresentation that tainted Ravelo's sales

patent, the RTC decision points to a supervening cause for cancellation and reversion that transpired after the filing of the petitioner's complaint on November 6, 1992 - the sale on execution of the subject lot. According to the RTC, this was sale prohibited under Section 29 of the CA No. 141 since it was made within ten years from the grant of the patent17 and should have the legal effect of voiding the sale on execution of the subject lot.

We disagree with this conclusion as the applicable law in the sale of land of the public domain for residential purposes is R.A. No. 730,18 as amended by P.D. No. 2004. While R.A. No.730 originally carried the same prohibition that Sec. 29 of CA No. 141 has, P.D. No. 2004 dated December 30, 1985 removed this prohibition for lands sold for residential purposes under R.A. No. 730. Thus, the execution sale of the subject lot in 1993 was undertaken without any attendant legal impediment.

ConclusionIn sum, we hold that the Court of Appeals erred in concluding that the

Redondos were buyers in good faith. They purchased the subject lot from Chieng subject to the government's notice of lis pendens; hence, their purchase was at the risk of the outcome of the State's complaint for cancellation and reversion which we find to be meritorious. The subject lot must therefore revert back to the public domain.

WHEREFORE, premises considered, we GRANT the petition. We REVERSE the decision of the Court of Appeals in CA-G.R. CV No. 60665 and accordingly DECLARE VOID respondent Mabelle B. Ravelo's Miscellaneous Sales Patent No. 12458 and OCT No. P-4517. We likewise order the CANCELLATION of Transfer Certificate of Title No. T-7261 issued in the name of Emmanuel and Perlita Redondo and the REVERSION to the mass of the public domain of the property it covers - Lot 16, Block 2, located in Mabayuan Extension, Gordon Heights, Olongapo City. SO ORDERED.Excerpts from:

Agura v. Serfino, GR No. 50685, Dec. 4, 1991, 204 SCRA 569

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The ruling of the respondent court that R.A. No. 730 does not repeal or amend Sections 61 and 67 of C.A. No. 141 (The Public Land Act); it merely establishes an exception to said sections.

Section 61 of the Public Land Act provides:The lands comprised in classes (a), (b), and (c) of section fifty-nine

shall be disposed of to private parties by lease only and not otherwise, as soon as the President, upon recommendation by the Secretary of agriculture, shall declare that the same are not necessary for the public service and are open to disposition under this chapter. The lands included in class (d) may be disposed of by sale or lease under the provisions of this Act.

Section 67 provides:The lease or sale shall be made through oral bidding, and adjudication

shag be made to the highest bidder, However, where an applicant has made improvements on the land by virtue of a permit issued to him by competent authority, the sale or lease shall be made by sealed bidding as prescribed in section twenty-six of this Act, the provisions of which shall be applied wherever applicable. If all or part of the lots remain unleased or unsold, the Director of Lands shall from time to time announce in the Official Gazette or in any other newspapers of general circulation, the lease or sale of those lots if necessary.

Section 59 reads:The lands disposable under this title shall be classified as follows:a) Lands reclaimed by the Government by dredging, filling, or other

means;b) Foreshore;c) Marshy lands or lands covered with water bordering upon the

shores or banks of navigable lakes or rivers;d) Lands not included in any of the foregoing classes.

The land in question belongs to class (d).

On the other hand, Section I of Republic Act No. 730 ("An Act To Permit The Sale Without Public Auction of Public Lands Of The Republic Of The Philippines For Residential Purposes To Qualified Applicants Under Certain Conditions") provides that:

Notwithstanding the provisions of sections sixty-one and sixty seven of Commonwealth Act Numbered One Hundred Forty-one, as amended by Republic Act Numbered Two Hundred Ninety-three, any Filipino citizen of legal age who is not the owner of a home lot in the municipality or city in which he resides and who has in good faith established his residence on a parcel of the public land of the Republic of the Philippines which is not needed for the public service, shall be given preference to purchase at a private sale of which reasonable notice shall be given to him not more than

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one thousand square meters at a price to be fixed by the Director of the Lands with approval of the Secretary of Agriculture and Natural Resources. It shall be an essential condition of this sale that the occupant has constructed his house on the land and actually resided therein. Ten percent of the purchase price shall be paid upon the approval of the sale and the balance may be paid in full, or in ten equal annual installments.

While Section 3 reads:The provisions of the Public Land Act with respect to the sale of lands

for residential purposes which are not inconsistent herewith shall be applicable.

From the title alone of R.A. No. 730, it is quite obvious that indeed, as seen by the respondent court, it merely provides an exception to Sections 61 and 67 of C.A. No. 141. We quote with approval the pertinent portions of the disquisition of the respondent court, thus:

The contention of the petitioners that the sale to the Serfinos is void because under Rep. Act No. 730 public land for residential purposes must be sold by private sale and for not more than 1,000 square meters is not meritorious either. Sec. 59 of commonwealth Act No. 141 has classified public lands which can be sold for residential, commercial, or industrial purposes into: (a) lands reclaimed by the government; (b) foreshore; (c) marshy lands; and (d) lands not included in any of the foregoing classes. Under Sec. 60 of the Act, these public lands may be leased or sold to any person qualified to purchase public lands for agricultural purposes, provided that the area shall not exceed 144 hectares, as may be determined by the Secretary of Agriculture and Natural Resources. Under See. 61, the lands under (a), (b) and (c) classifications can be disposed of-by lease only, while those under (d) classification may either be leased or sold, Sec. 67 provides that the lease or sale shall be made by oral bidding to the highest bidder. Secs. 61 and 67 of Commonwealth Act No. 141 were amended by Rep. Act No. 730 in the following manner:

xxx xxx xxxThe petitioners contend that after the passage of Rep. Act No. 730, the

sale of public lands for residential purposes has been limited to 1,000 square meters only, and that the sale must be effected by private sale only. A close examination of the law cited by the petitioners, however, shows that it is only applicable when the conditions specified therein are present, i.e., that preference shall be given to the applicant if he is not the owner of a home lot in the municipality or city in which he resides; if he has established his residence in good faith on a parcel of public land, which is not needed for the public services; and if the area applied for does not exceed one thousand square meters. In other words, Sec. 1 of Rep. Act No. 730 does not repeal Secs. 61 and 67 of Commonwealth Act No. 141 entirely, but merely

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establishes an exception. It does not repeal Sec. 60, either expressly or by implication.

xxx xxx xxxIn short, R.A. No. 730 authorizes a sale by private sale, as an exception

to the general rule that it should be bybidding, if the area applied for does not exceed 1,000 square meters, and that the applicant has in his favor the conditions specified for in Section 1 thereof. Hence, if the area applied for is in excess of 1,000 square meters, as in the instant case, the sale must be done only through bidding.

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