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E. Subsequent Registration

1. Voluntary dealings

a. CONVEYANCE AND OTHER DEALINGS BY REGISTERED OWNER

1) Voluntary instruments affect parties only

An owner of registered land may convey, mortgage, lease, charge or otherwise deal with the same in accordance with existing laws. He may use such forms of deeds, mortgages, leases or other voluntary instruments as are sufficient in law. (Section 51, P.D. 1529)

GENERAL RULE: But no deed, mortgage, lease, or other voluntary instrument, except a will purporting to convey or affect registered land shall take effect as a conveyance or bind the land, but shall operate only as a contract between the parties and as evidence of authority to the Register of Deeds to make registration. (Ibid.)

EXCEPTION: … except a will (Ibid.)

2) Act of registration as operative act

The act of registration shall be the operative act to convey or affect the land insofar as third persons are concerned, and in all cases under P.D. 1529, the registration shall be made in the office of the Register of Deeds for the province or city where the land lies. (Paragraph 2, Section 51, Ibid.)

3) Constructive notice upon registration

Every conveyance, mortgage, lease, lien, attachment, order, judgment, instrument or entry affecting registered land shall, if registered, filed or entered in the office of the Register of Deeds for the province or city where the land to which it relates lies, be constructive notice to all persons from the time of such registering, filing or entering. (Section 52, Ibid.)

4) Presentation of owner’s duplicate upon entry of new certificate

No voluntary instrument shall be registered by the Register of Deeds, unless the owner’s duplicate certificate is presented with such instrument, except in cases expressly provided for in P.D. 1529 or upon order of the court, for cause shown. (Section 53, Ibid.)

a) Conclusive authority from registered owner

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. (Paragraph 2, Section 52, Ibid.)

b) In case of fraud

In all cases of registration procured by fraud, the owner may pursue all his legal and equitable remedies against the parties to such fraud without prejudice, however, to the rights of any innocent holder for value of a certificate of title. (Paragraph 3, Section 52, Ibid.)

After the entry of the decree of registration on the original petition or application, any subsequent registration procured by the presentation of a forged duplicate certificate of title, or a forged deed or other instrument, shall be null and void. (Paragraph 3, Section 52, Ibid.)

5) Dealings less than ownership, how registered

a) No new certificate if dealing is less than ownership

No new certificate shall be entered or issued pursuant to any instrument which does not divest the ownership or title from the owner or from the transferee of the registered owners.

b) Filing with Registry of Deeds

All interests in registered land less than ownership shall be registered by filing with the Register of Deeds the instrument which creates or transfers or claims such interests and by a brief memorandum thereof made by the Register of Deeds upon the certificate of title, and signed by him.

A similar memorandum shall also be made on the owner’s duplicate. The cancellation or extinguishment of such interests shall be registered in the same manner. (Section 54, Ibid.)

6) Primary Entry Book; fees; certified copies

Each Register of Deeds shall keep a primary entry book in which, upon payment of the entry fee, he shall enter, in the order of their reception, all instruments including copies of writs and processes filed with him relating to registered land. He shall, as a preliminary process in registration, note in such book the date, hour and minute of reception of all instruments, in the order in which they were received. (Section 56, Ibid.)

They shall be regarded as registered from the time so noted, and the memorandum of each instrument, when made on the certificate of title to which it refers, shall bear the same date: Provided, that the national government as well as the provincial and city governments shall be exempt from the payment of such fees in advance in order to be entitled to entry and registration. (Ibid.)

b. CONVEYANCES AND TRANSFERS

1) Procedure in registration of conveyances

a) Deed of conveyance

An owner desiring to convey his registered land in fee simple shall execute and register a deed of conveyance in a form sufficient in law. (Section 57, Ibid.)

b) New certificate of title

The Register of Deeds shall thereafter make out in the registration book a new certificate of title to the grantee and shall prepare and deliver to him an owner’s duplicate certificate. (Ibid.)

The Register of Deeds shall note upon the original and duplicate certificate the date of transfer, the volume and page of the registration book in which the new certificate is registered and a reference by number to the last preceding certificate. (Ibid.)

c) Cancellation of previous certificate of title

The original and the owner’s duplicate of the grantor’s certificate shall be stamped “canceled”. (Ibid.)

The deed of conveyance shall be filled and indorsed with the number and the place of registration of the certificate of title of the land conveyed. (Ibid.)

2) Procedure where conveyance involves portion of land

If a deed or conveyance is for a part only of the land described in a certificate of title, the Register of Deeds shall not enter any transfer certificate to the grantee until a plan of such land showing all the portions or lots into which it has been subdivided and the corresponding technical descriptions shall have been verified and approved. (Section 58, Ibid.)

3) Carry over of encumbrances

GENERAL RULE: If, at the time of any transfer, subsisting encumbrances or annotations appear in the registration book, they shall be carried over and stated in the new certificate or certificates. (Section 59, Ibid.)

EXCEPTION: … except so far as they may be simultaneously released or discharged. (Ibid.)

c. MORTGAGES AND LEASES

1) Mortgage or lease of registered land

The owner of registered land may mortgage or lease it by executing the deed in a form sufficient in law. Such deed of mortgage or lease and all instruments which assign, extend, discharge or otherwise deal with the mortgage or lease shall be registered, and shall take effect upon the title only from time of registration. (Section 60, Ibid.)

2) Registration

Upon presentation for registration of the deed of mortgage or lease together with the owner’s duplicate, the Register of Deeds shall enter upon the original of the certificate of title and also upon the owner’s duplicate certificate a memorandum thereof, the date and time of filing and the file number assigned to the deed, and shall sign the said memorandum. He shall also note on the deed the date and time of filing and a reference to the volume and page of the registration book in which it is registered. (Section 61, Ibid.)

3) Discharge or cancellation

A mortgage or lease on registered land may be discharge or canceled by means of an instrument executed by the mortgage or lessee in a form sufficient in law, which shall be filed with the Register of Deeds who shall make the appropriate memorandum upon the certificate of title. (Section 62, Ibid.)

4) Foreclosure of Mortgage

a) Judicial foreclosure

If the mortgage was foreclosed judicially, a certified copy of the final order of the court confirming the sale shall be registered with the Register of Deeds. If no right of redemption exists, the certificate of title of the mortgagor shall be canceled, and a new certificate issued in the name of the purchaser. (Section 63[a], Ibid.)

Where the right of redemption exists, the certificate of title of the mortgagor shall not be canceled, but the certificate of sale and the order confirming the sale shall be registered by a brief memorandum thereof made by the Register of Deeds upon the certificate of title. In the event the property is redeemed, the certificate or deed of redemption shall be filed with the Register of Deeds, and a brief memorandum thereof shall be made by the Register of Deeds on the certificate of title of the mortgagor. (Paragraph 2, Section 63[a], Ibid.)

If the property is not redeemed, the final deed of sale executed by the sheriff in favor of the purchaser at a foreclosure sale shall be registered with the Register of Deeds; whereupon the title of the mortgagor shall be canceled, and a new certificate issued in the name of the purchaser. (Paragraph 3, Section 63[a], Ibid.)

b) Extrajudicial foreclosure

If the mortgage was foreclosed extrajudicially, a certificate of sale executed by the officer who conducted the sale shall be filed with the Register of Deeds who shall make a brief memorandum thereof on the certificate of title. (Section 63[b], Ibid.)

In the event of redemption by the mortgagor, the same rule provided for in the second paragraph of this section shall apply. (Paragraph 2, Section 63[b], Ibid.)

In case of non-redemption, the purchaser at foreclosure sale shall file with the Register of Deeds, either a final deed of sale executed by the person authorized by virtue of the power of attorney embodied in the deed of mortgage, or his sworn statement attesting to the fact of non-redemption; whereupon, the Register of Deeds shall issue a new certificate in favor of the purchaser after the owner’s duplicate of the certificate has been previously delivered and canceled. (Paragraph 3, Section 63[b], Ibid.)

c. POWERS OF ATTORNEY; TRUSTS

1)Power of attorney

Any person may, by power of attorney, convey or otherwise deal with registered land and the same shall be registered with the Register of Deeds of the province or city where the land lies. Any instrument revoking such power of attorney shall be registered in like manner. (Section 64, Ibid.)

2) Trusts in registered land

If a deed or other instrument is filed in order to transfer registered land in trust, or upon any equitable condition or limitation expressed therein, or to create or declare a trust or other equitable interests in such land without transfer, the particulars of the trust, condition, limitation or other equitable interest shall not be entered on the certificate; but only a memorandum thereof shall be entered by the words “in trust”, or “upon condition”, or other apt words, and by a reference by number to the instrument authorizing or creating the same. (Section 65, Ibid.)

A similar memorandum shall be made upon the original instrument creating or declaring the trust or other equitable interest with a reference by number to the certificate of title to which it relates and to the volume and page in the registration book in which it is registered. (Ibid.)

3) Trust with power of sale, etc., how expressed

If the instrument creating or declaring a trust or other equitable interest contains an express power to sell, mortgage or deal with the land in any manner, such power shall be stated in the certificate of title by the words “with power to sell”, or “power to mortgage”, or by apt words of description in case of other powers. (Section 66, Ibid.)

No instrument which transfers, mortgages or in any way deals with registered land in trust shall be registered, unless the enabling power thereto is expressly conferred in the trust instrument, or unless a final judgment or order of a court of competent jurisdiction has construed the instrument in favor of the power, in which case a certified copy of such judgment or order may be registered. (Ibid.)

4) Judicial appointment of new trustee

If a new trustee of registered land is appointed by a court of competent jurisdiction, a new certificate may be issued to him upon presentation to the Register of Deeds of a certified copy of the order or judicial appointment and the surrender for cancellation of the duplicate certificate. (Section 67, Ibid.)

5) Implied, trusts, how established

Whoever claims an interest in registered land by reason of any implied or constructive trust shall file for registration with the Register of Deeds a sworn statement thereof containing a description of the land, the name of the registered owner and a reference to the number of the certificate of title. Such claim shall not affect the title of a purchaser for value and in good faith before its registration. (Section 68, Ibid.)

2. Involuntary dealings

a. ATTACHMENTS

An attachment, or a copy of any writ, order or process issued by a court of record, intended to create or preserve any lien, status, right, or attachment upon registered land, shall be filed and registered in the Registry of Deeds for the province or city in which the land lies, and, in addition to the particulars required in such papers for registration, shall contain a reference to the number of the certificate of title to be affected and the registered owner or owners thereof, and also if the attachment, order, process or lien is not claimed on all the land in any certificate of title a description sufficiently accurate for identification of the land or interest intended to be affected. (Section 69, Ibid.)

A restraining order, injunction or mandamus issued by the court shall be entered and registered on the certificate of title affected, free of charge. (Ibid.)

B. ADVERSE CLAIM

Whoever claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, may, if no other provision is made in under the law for registering the same, make a statement in writing setting forth fully his alleged right or interest, and how or under whom acquired, a reference to the number of the certificate of title of the registered owner, the name of the registered owner, and a description of the land in which the right or interest is claimed. (Section 70, Ibid.)

1) 30-day period

The adverse claim shall be effective for a period of thirty days from the date of registration.

After the lapse of said period, the annotation of adverse claim may be canceled upon filing of a verified petition therefor by the party in interest: Provided, however, that after cancellation, no second adverse claim based on the same ground shall be registered by the same claimant. (Paragraph 2, Section 70, Ibid.)

2) Petition for cancellation of adverse claim

Before the lapse of thirty days aforesaid, any party in interest may file a petition in the Regional Trial Court where the land is situated for the cancellation of the adverse claim, and the court shall grant a speedy hearing upon the question of the validity of such adverse claim, and shall render judgment as may be just and equitable. (Paragraph 3, Section 70, Ibid.)

C. SURRENDER OF CERTIFICATE IN INVOLUNTARY DEALINGS

If an attachment or other lien in the nature of involuntary dealing in registered land is registered, and the duplicate certificate is not presented at the time of registration, the Register of Deeds shall, within thirty-six (36) hours thereafter, send notice by mail to the registered owner, stating that such paper has been registered, and requesting him to send or produce his duplicate certificate so that a memorandum of the attachment or other lien may be made thereon. (Section 71, Ibid.)

If the owner neglects or refuses to comply within a reasonable time, the Register of Deeds shall report the matter to the court, and it shall, after notice, enter an order to the owner, to produce his certificate at a time and place named therein, and may enforce the order by suitable process. (Ibid.)

d. DISSOLUTION, ETC., OF ATTACHMENTS, ETC.

Attachments and liens of every description upon registered land shall be continued, reduced, discharged and dissolved by any method sufficient in law, and to give effect to the continuance, reduction, discharge or dissolution thereof the certificate or other instrument for that purpose shall be registered with the Register of Deeds. (Section 72, Ibid.)

e. REGISTRATION OF ORDERS OF COURTS, ETC.

If an attachment is continued, reduced, dissolved, or otherwise affected by an order, decision or judgment of the court where the action or proceedings in which said attachment was made is pending or by an order of a court having jurisdiction thereof, a certificate of the entry of such order, decision or judgment from the clerk of court or the judge by which such decision, order or judgment has been rendered and under the seal of the court, shall be entitled to be registered upon presentation to the Register of Deeds. (Section 73, Ibid.)

f. ENFORCEMENT OF LIENS ON REGISTERED LANDS

Whenever registered land is solved on execution, or taken or sold for taxes or for any assessment or to enforce a lien of any character, or for any costs and charges incident to such liens, any execution or copy of execution, any officer’s return, or any deed, demand, certificate, or affidavit, or other instrument made in the course of the proceedings to enforce such liens and required by law to be recorded, shall be filed with the Register of Deeds of the province or city where the land lies and registered in the registration book, and a memorandum made upon the proper certificate of title in each case as lien or encumbrance. (Section 74, Ibid.)

g. APPLICATION FOR NEW CERTIFICATE UPON EXPIRATION OF REDEMPTION PERIOD

Upon the expiration of the time, if any, allowed by law for redemption after registered land has been sold on execution taken or sold for the enforcement of a lien of any description, except a mortgage lien, the purchaser at such sale or anyone claiming under him may petition the court for the entry of a new certificate of title to him. (Section 75, Ibid.)

Before the entry of a new certificate of title, the registered owner may pursue all legal and equitable remedies to impeach or annul such proceedings. (Paragraph 2, Section 75, Ibid.)

h. NOTICE OF LIS PENDENS

No action to recover possession of real estate, or to quiet title thereto, or to remove clouds upon the title thereof, or for partition, or other proceedings of any kind in court directly affecting the title to land or the use or occupation thereof or the buildings thereon, and no judgment, and no proceeding to vacate or reverse any judgment, shall have any effect upon registered land as against persons other than the parties thereto, unless a memorandum or notice stating the institution of such action or proceeding and the court wherein the same is pending, as well as the date of the institution thereof, together with a reference to the number of the certificate of title, and an adequate description of the land affected and the registered owner thereof, shall have been filed and registered. (Section 76, Ibid.)

1) Cancellation of lis pendens

Before final judgment, a notice of lis pendens may be canceled upon order of the court, after proper showing that the notice is for the purpose of molesting the adverse party, or that it is not necessary to protect the rights of the party who caused it to be registered. It may also be canceled by the Register of Deeds upon verified petition of the party who caused the registration thereof. (Section 77, Ibid.)

At any time after final judgment in favor of the defendant, or other disposition of the action such as to terminate finally all rights of the plaintiff in and to the land and/or buildings involved, in any case in which a memorandum or notice of lis pendens has been registered as provided in the preceding section, the notice of lis pendens shall be deemed canceled upon the registration of a certificate of the clerk of court in which the action or proceeding was pending stating the manner of disposal thereof. (Paragraph 2, Section 77, Ibid.)

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