review of decree of registration

8/13/2019 Review of Decree of Registration

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REVIEW OF DECREE OF

REGISTRATION

SEC. 32 Presidential Decree No. 1529


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. .registration; Innocent purchaser for

valueThe decree of registration shall not be reopened or revised by reasonof absence, minority, or other disability of any person adversely,affected thereby nor by any proceeding in any court for reversingjudgments, subject, however, to the right of any person, including thegovernment and the branches thereof, deprived of land or any estateor interest therein by such adjudication or confirmation of title obtainedby actual fraud, to file in the proper Court of First Instance a petitionfor reopening and review of the decree of registration, but in no caseshall such petition be entertained by the court where an innocentpurchaser for value has acquired the land or an interest therein,whose rights may be prejudiced. Whenever the phrase innocentpurchaser for valueor an equivalent phrase occurs in this Decree, itshall be deemed to include an innocent lessee, mortgagee, or otherencumbrancer for value.

Upon the expiration of said period of one year, the decree ofregistration and the certificate of title issued shall become

incontrovertible. Any person aggrieved by such decree of registrationin any case may pursue his remedy by action for damages against the


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Grounds for Review

This remedy is available to an aggrieved partywithin ONE YEAR after the date of entry of thedecree of registration

Applicant must have a estate or interest in theland

No innocent purchaser for value has acquiredan interest therein

There must be an ACTUAL FRAUD orEXTRINSIC FRAUD

WANT OF DUE PROCESS may also beinvoked where the decree was entered in

compliance with a decision suffering from fatal-


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ACTUAL FRAUD intentional omission of a fact

required by law to be stated in the application or a

willful statement of a claim against the truth.

The purpose of the law in giving aggrieved parties,

deprived of land or any interest, through fraud in the

registration, the opportunity to review the decree is to

ensure fair and honest dealing in the registration of

the land


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EXTRINS

IC

FRAUD

Connotes any fraudulent schemeexecuted by a prevailing litigant outsidethe trial of a case against the defeatedparty, or his agents, attorneys orwitnesses, whereby said defeated party isprevented from presenting fully and fairlyhis side of the case.

Extrinsic or Collateral Fraud

Distinguished from Intrinsic Fraud

INTRINSI

C FRAUD

Acts of a party in a litigation during the trial,

such as the use of forged instruments orperjured testimony, which did not affect the

presentation of the case, but did prevent a

fair and just determination of the case


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NO. The person(s) contemplated under Section 38

of Act 496 (now Sec 32 of PD 1529), to be entitledto a review of a decree of registration, are those

who were fraudulently deprived of their opportunity

to be heard in the original registration case.

May a petition for review of a decree under

Section 38 of Act 496 (now Section 32 of PD

1529) be filed by an oppositor who has

abandoned his opposition in a landregistration case after a decision has been

rendered and a decree of registration issued?

Crisolo vs Court of Appeals (G.R. No. L-33093,December 29, 1975)


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When Property is Transferred to an

Innocent Purchaser for Value

INNOCENT PURCHASER FOR VALUE one whoacquired the property for a valuable consideration notknowing that the title of the vendor or grantor wasdefective or void [Rivera vs Moran (GR No. L-24568

March 2, 1926)]. It includes innocent lessee,mortgagee or other encumbrancer for value.

Where the certificate of registration was valid and theland in question was properly brought under theoperation of the Torrens system, the concept ofinnocent purchaser for value properly comes into play.But where the land in question was never broughtunder the operation of the Torrens system , theconcept of innocent purchaser for value cannot comeinto play.


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It is well-settled that where innocent third persons,relying on the correctness of the certificate of titlethus issued, acquire rights over the property, thecourt cannot disregard such rights and order the

cancellation of the certificate. [Davao Grains, Inc. vsIntermediate Appellate Court (G.R. No. 78209March 31, 1989)]

Everyone dealing with titled property whould have tocheck on the validity or invalidity of the originalcertificate of title would wreak havoc and impairpublic confidence on the Torrens system. [Santos vsCourt of Appeals (G.R. No. 90380 September 13,

1990)]


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Conclusiveness of the Decree of

Registration

A land registration proceeding is in rem,

therefore, the registration is binding upon and

conclusive against all persons including the

government and its branches [Sorongon et al.vs Makalintal et al. (45 OG 9 September

1949)]


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NO. The law neither requires the lifting of thedecree of general default issued in the case nor theattaching of any affidavit of merit to the petition forreview. As long as there has been fraud in obtaining

the decree of registration, by reason of whichanother person has been deprived of land or anyinterest therein and such person filed his petition forreview within one year after the entry of the decree,then the decree may be opened

Is it necessary that the Order of General

Default be first lifted before a Petition to

Review the Decree of Registration may be

entertained?

Cruz vs Del Valle (55 O.G. 9901, November 23, 1952)Samonte et al. vs Descallar et al (G.R. No. L-12964, February 29,

1960)


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Effect of the Expiration of the

Period for Review

Upon the expiration of the one-year period, thedecree of registration and the certificate of titleissued shall become incontrovertible.

After one year from the date of the degree, the soleremedy of the landowner whose property has beenwrongfully or erroneously registered in another'sname is not to set aside the decree, but, to bring anordinary action in the ordinary court of justice for

reconveyance or, if the property has passed into thehands of an innocent purchaser for value, fordamages. [Gonzales vs Intermediate AppellateCourt (GR No. 69622, January 29, 1988)]


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Collateral Attack on the Decree

and Title not allowed

Attack must be direct and not by a collateral

proceeding. The validity of the certificate of

title in this regard can be threshed out only in

an action expressly filed for the purpose.[Ybaez vs Intermediate Appellate Court (G.R.

No. L-68291, March 6, 1991)


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Made through an action or proceedingthe main object of which is to annul,set aside, or enjoin the enforcement ofsuch judgment, if not yet carried into

effect ; or, if the property has beendisposed of, the aggrieved party maysue for recovery

COLLATER

AL ATTACK

Made when, in another action to

obtain a different relief, an attack onthe judgment is made as an incident

in said action

DIRECT

ATTACK


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RECONVEYANCE OF

PROPERTY


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It is the sole remedy of the land owner whoseproperty has been wrongfully or erroneouslyregistered in another's name is, after one yearfrom the date of the decree, not to set aside thedecree, as was done in the instant case, but,respecting the decree as incontrovertible and nolonger open to review, to bring an ordinary actionin the ordinary court of justice for reconveyanceor, if the property has passed into the hands ofan innocent purchaser for value, for damages.[Director of Lands et al. vs Register of Deeds ofRizal et al. (G.R. No. L-4463, March 24, 1953)


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The true owner may bring an action to have theownership or title to the land judicially settled andthe Court in the exercise of its equity jurisdiction,without ordering the cancellation of the TorrensTitle issued upon the patent[Linaza vsIntermediate Appellate Court (G.R. No. 73741,February 28, 1990)]

The term reconvey means to convey back toformer place, or to transfer back to former owner,as an estate, and reconveyance being atransfer of realty back to the original or formergrantor. (Lacorte vs. CA, 286 SCRA 24)


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Requisites for Reconveyance

To warrant a reconveyance of the land, the followingrequisites must concur:

(1) the action must be brought in the name of aperson claiming ownership or dominical right over

the land registered in the name of the defendant; (2) the registration of the land in the name of the

defendant was procured through fraud or otherillegal means;

(3) the property has not yet passed to an innocentpurchaser for value; and

(4) the action is filed after the certificate of title hadalready become final and incontrovertible [NewRegent Sources, Inc. v. Tanjuatco, (GR No. 168800,

April 16, 2009)]


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Nature of Action for

Reconveyance

Action for reconveyance is an action in

personam, judgment therein is binding only upon

the parties properly impleaded and duly heard or

given an opportunity to be heard. [ Ching vsCourt of Appeals (G.R. No. L-59731, January 11,

1990)]


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When may an Action for

Reconveyance be Filed

Action based on fraud - four years (Article 1391, NewCivil Code)

Action based on implied trust - ten years (Article1144, New Civil Code)

Action based on a void contract

imprescriptible(Article 1410, New Civil Code)

(4) Action to quiet title where plaintiff is in

possession

imprescriptible - prescription doesnot run against the plaintiff in actual possession ofthe disputed land because such plaintiff has a rightto wait until his possession is disturbed or his title

is questioned before initiating an action tovindicate his ri ht. Yared v. Tion co GR No.


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A registered owner may be barred from

recovering possession of the property by virtue

of laches.

The person who was deprived of his property

by fraud, whether actual or constructive, and

was not at fault, may file such personal actionfor reconveyance

c on or econveyance


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c on or econveyanceInpedendent and Distinct from

Reopening of Decree must be actual and means

intentional omission of a factrequired by law to be stated in the

application for registration or awillful statement of a claim againstthe truth.

FRAUDUNDER

SEC. 53

includes cases where thecircumstances are such that the personwho obtains a certificate of title in hisname over a land belonging to anothermust be presumed to have fullknowledge of the rights of the trueowner

FRAUD

UNDER

SEC. 32

review of decree of registration

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