Primary Entry Booka. Entry No.b. Names of the Partiesc. Nature of the Documentd. Date, hour and minute it was presented to be registered

Registration Book

If found in orderIf not in order

REGISTERED

Advise the party in

interest in writing of

grounds for refusalAPPEAL

CONSULTA

I. Dealings with unregistered lands

A. What is an unregistered land?The system of registration under the Spanish Mortgage Law is discontinued and all lands recorded under the system which are not yet covered by Torrens title are considered as unregistered lands.

B. What are the basis of claims to unregistered lands?The ownership over the unregistered lands are claimed by the holders on the basis of:

a) Tax declarations;b) Tax titles; andc) Deeds of conveyance made by the private individuals who did not

themselves have any title thereto from the government.

C. How to register unregister lands?In accordance with Act 3344, by recording and registering with the Register of Deeds where the land is located.

Procedure in registering the instruments affecting the unregistered land. (Section 113 of P.D. 1529)

:

a. Recording of Deedb. Instruments relating

to unregistered land

II. Registration of chattel mortgage

A. What is Chattel Mortgage?

By a chattel mortgage, personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract is a pledge and not a chattel mortgage. (Article, 2140, Civil Code)

B. Nature of Chattel Mortgage

Chattel mortgage is a contract which purports to be, as in form is, a sale of personal property, while in substance essentially a contract of security for the payment of debt, or the performance of some other obligation.

I. One of the essential requisites in mortgage is that, the mortgagor must be the absolute owner of the thing mortgaged. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract is a pledge and not a chattel mortgage, unlike chattel mortgage, the delivery is not necessary.

II. Section 7, paragraph 4 of Act No. 1508 provides:

“A chattel mortgage shall be deemed to cover only the property described therein and not like or substituted property thereafter acquired by the mortgagor and placed in the same depository as the property originally mortgaged, anything in the mortgage to the contrary notwithstanding.”

Note: Section 7 of Act 1508 does not apply to drug stores, bazaars and all other stores in the nature of a revolving and floating business, example: that deals with the sale of either perishable goods, “rolling” goods, or goods subject to wear and tear.

III. Registration of Chattel Mortgage

A chattel mortgage shall be recorded in the office of the Register of Deeds of the province or city where the mortgagor resides as well as where the property is situated or ordinarily kept. (Section 114 of PD 1529)

a. If residing in the Philippines, the place of residence of the mortgagor;b. If residing abroad, in the province or city where the property is located;

andc. If residence and location of property are different, in both place of

residence of mortgagor and location of property.

IV. Section 4 of Chattel Mortgage Law

Failure to register chattel mortgage contract in due form will not affect the validity of chattel mortgage as against mortgagor, his executor or administrators but void against third persons.

V. Registration of Motor Vehicle

A chattel mortgage over a vehicle shall be registered both in the Registry of Deeds and in the Motor Vehicles Office or Land Transportation Office, under Section 5 of RA 4136.

As decided in the case of Montano vs. Lim Ang, 7 SCRA 250, "A mortgage in order to affect third persons should not only be registered in the Chattel Mortgage Registry, but the same should also be recorded in the Motor Vehicles Office as required by section 5(e) of the Revised Motor Vehicle Law. And the failure of the respondent mortgagee to report the mortgage executed in its favor had the effect of making said mortgage ineffective against Borlough, who had his purchase registered in the said Motor Vehicles Office." The mere registration of the chattel mortgage in the office of register of deeds is in itself not sufficient to hold it binding against third persons.

C. Mortgagee’s right of possession preparatory to foreclosure1. There is a 30-day cooling off period before the public auction, from the time the condition is broken2. Notice—at least 10 days notice of the time, day, place, and purpose of such sale has been posted at 2 or more public places in such municipality. Personal notice or mail shall also be given to the mortgagor or person holding under him and the persons holding subsequent mortgages of the time and place of sale.3. Sheriff should possess the property as he needs to deliver the same to the winning bidder. If the mortgagor refuses to do so, the mortgagee can seek the help of the court. There could also be a stipulation in the contract as well. But if the debtor is not willing and able, the loss is with the creditor.4. There is a 30-day equity of redemption period (payment of obligation)5. After foreclosure, there could be recovery of deficiency, but there is Recto Law (1484) pertaining to sale of personal property in installments and there is a Chattel Mortgage to secure payment of price.

Notice under oath by the owner or by

someone in his behalf.

Register of Deeds where the land is

situated

Petition of the registered owner or

other person in interest (RoD)

COURT

HEARING

Issuance of a new duplicate certificate containing

Memorandum of the fact that is issued in place of the lost

duplicate certificate

III. Replacement of Lost or Destroyed Certificate

Replacement of certificate is availed of when the owner’s duplicate certificate got lost or destroyed, and the copy at the Register of Deeds is intact.

Procedure:

Sworn statement of the fact of such loss or destruction

IV. Reconstitution of Title

Reconstitution of title is necessary if the original title with the Register of Deeds got lost or destroyed. Reconstitution of title is void when title is in the possession of another person.

A. Two modes for reconstitution of title: Judicial and Administrative.

A. Judicial mode is the general mode which is applicable to all cases of reconstitution. Judicial mode requires filing a petition in the Regional Trial Court which shall state:

A. That the owner’s duplicate of the certificate of title had been lost or destroyed;

B. That no co-owner’s mortgagee’s or lessee’s duplicate had been issued, or, if any had been issued, the same had been lost or destroyed;

C. The location, area and boundaries of the property;D. The nature and description of the buildings or improvements, if

any, which do not belong to the owner of the land, and the names and addresses of the owners of such buildings or improvements;

E. The names and addresses of the occupants or persons in possession of the property, of the owners of the adjoining properties and all persons who may have any interest in the property;

F. A detailed description of the encumbrances, if any, affecting the property; and

G. A statement that no deeds or other instruments affecting the property have been presented for registration, or, if there be any, the registration thereof has not been accomplished, as yet. (Section 12 of R.A. No. 26)

The petition must also be supported by any of the following:

A. The owner’s or co-owner’s duplicate of the certificate of title;

B. Certified copy of the certificate of title;

C. Decree of registration/patent or deed of transfer on file in the registry of deed, a mortgage, lease or encumbrance document pertaining to the lot registered in the registry of deed, or any other document which, in the judgment of the court, is sufficient and proper basis for reconstitution of title. (Sections 3 and 4, R.A. No. 26)

B. Administrative mode for reconstitution of title will only require filing a petition with the concerned Register of Deeds. This mode may only be availed of in case of substantial loss or destruction of land titles due to fire, flood or other force majeure as determined by the Administrator of the Land Registration Authority, where the number of certificates of titles lost or damaged should be at

least ten percent (10%) of the total number in the possession of the Office of the Register of Deeds, and the number of certificates of titles lost or damaged be at least five hundred. (Section 110 of P.D. No. 1529, as amended by RA 6732)

The petitioner must present:

a. Owner’s duplicate of the certificate of title; or

b. The co-owner’s, mortgagee’s, or lessee’s duplicate of the certificate of title, if any.

Note: If you pass these requirements, then administrative reconstitution is allowed. If you are not satisfied, you can go to the LRA within 15 days from the receipt of the decision. If not the LRA, file a petition for review with the proper court or specifically, the RTC. This can be done within 60 days from knowledge of decision but not later than 6 months from promulgation of decision.

(See at the last page for flowcharts of procedures in judicial reconstitution and administrative constitution)

B. Requisites for Reconstitution of Title under R.A. 26 (Section 12 of RA 26)

Layos vs. Fil-Estate Golf and Development Cor., G.R. No. 150470, August 6, 2008.

Reconstitution or reconstruction of a certificate of title literally and within the meaning of Republic Act No. 26 denotes restoration of the instrument which is supposed to have been lost or destroyed in its original form and condition. For an order of reconstitution to issue, the following requirements must be present:

1) The certificate of title has been lost or destroyed;

2) The petitioner is the registered owner or has an interest therein; and

3) The certificate of title is in force at the time it was lost or destroyed.

Republic vs. Tuastumban, G.R. No. 173210, April 24, 2009.

Addition to requirements for reconstitution:

4) That the documents presented by petitioner are sufficient and proper to warrant reconstitution of the lost or destroyed certificate of title;

5) That the description, area and boundaries of the property are substantially the same as those contained in the lost or destroyed certificate of title.

R.A. 26 presupposes that the property whose title is sought to be reconstituted has already been brought under the provisions of the Torrens System. Failure to present an authenticated copy of decree of registration under

the Torrens System or patent pursuant to which the original certificate of title was issued, application for reconstitution will be denied.

C. Sources of Reconstitution

A) RA No. 26, Section 2. Original certificates of title (OCT) shall be reconstituted from such of the sources hereunder enumerated as may be available, in the following order:

(a) The owner's duplicate of the certificate of title;

(b) The co-owner's, mortgagee's, or lessee's duplicate of the certificate of title;

(c) A certified copy of the certificate of title, previously issued by the register of deeds or by a legal custodian thereof;

(d) An authenticated copy of the decree of registration or patent, as the case may be, pursuant to which the original certificate of title was issued;

(e) A document, on file in the registry of deeds, by which the property, the description of which is given in said document, is mortgaged, leased or encumbered, or an authenticated copy of said document showing that its original had been registered; and

(f) Any other document which, in the judgment of the court, is sufficient and proper basis for reconstituting the lost or destroyed certificate of title.

B) R.A. No. 26, Section 3 enumerates the sources from which transfer certificates of title (TCT) shall be reconstituted. Section 3 reads:

Sec. 3. Transfer certificates of title shall be reconstituted from such of the sources hereunder enumerated as may be available, in the following order:

(a) The owners duplicate of the certificate of title;

(b) The co-owners, mortgagees, or lessees duplicate of the certificate of title;

(c) A certified copy of the certificate of title, previously issued by the register of deeds or by a legal custodian thereof;

(d) The deed of transfer or other document, on file in the registry of deeds, containing the description of the property, or an authenticated copy thereof, showing that its original had been registered, and pursuant to which the lost or destroyed transfer certificate of title was issued;

(e) A document, on file in the registry of deeds, by which the property, the description of which is given in said document, is mortgaged, leased, or encumbered, or an authenticated copy of said document showing that its original had been registered; and

(f) Any other document which, in the judgment of the court, is sufficient and proper basis for reconstituting the lost or destroyed certificate of title.

C) RA No. 26, Section 4. Liens and other encumbrances affecting a destroyed or lost certificate of title shall be reconstituted from such of the sources hereunder enumerated as may be available, in the following order:

(a) Annotations or memoranda appearing on the owner's co-owner's mortgagee's or lessee's duplicate;

(b) Registered documents on file in the registry of deeds, or authenticated copies thereof showing that the originals thereof had been registered; and

(c) Any other document which, in the judgment of the court, is sufficient and proper basis for reconstituting the liens or encumbrances affecting the property covered by the lost or destroyed certificate of title.

Note: “Any document” mentioned in Section 3 shall be similar to those previously enumerated. Tax declaration is not a valid basis for reconstitution.

D. Reconstitution in a pending Cadastral Action

Republic vs. Royales, GR No. 168742, September 3, 2008

SEC. 10. Pending cadastral case shall be reconstituted as follows:

“The Court shall issue an order directing the person interested to file anew their replies, for which purpose reasonable time may be allowed. The order shall be published in the Official Gazette and by local notices during a period fixed in said order.”

In this case, RTC did not acquire jurisdiction over respondent’s petition for reconstitution of title for failing to comply with publication requirement.

However, as ruled also in case of Nacua, “Act 3110 was not promulgated to penalize people for failure to observe or invoke its provisions. It contains no penal sanction. It was enacted rather to aid and benefit litigants, so that when court records are destroyed at any stage of judicial proceedings, instead of instituting a new case and starting all over again, they may reconstitute the records lost and continue the case. If they fail to ask for reconstitution, the worst that can happen to them is that they lose the advantages provided by the reconstitution law”

V. Condominiums

A condominium is an interest in a unit in a residential, industrial or commercial building and an undivided interest in common, directly or indirectly, in the land on which it is located and in other common areas of the building.

Incorporators of a condominium must be shareholders, which means that they must also own a unit in a condominium.

Aliens may acquire condominium unit and shares in condominium provided that their total capital share will not exceed 40%. As provided in the Condominium Act, no condominium unit shall be conveyed or transferred to persons other than Filipino citizens or corporations at least 60% of the capital stock of which belong to Filipino citizens, except in case of hereditary succession.

Registration of Enabling or Master Deed, and Declaration of Restriction

For a condominium project to come under the operation of the Condominium Act, an enabling or master deed of the project must be registered in the Register of Deeds and be annotated in the certificate of title. The Master Deed shall contain information such as description of the land, buildings, common areas, survey plan, and other necessary details.

Before any condominium unit may be sold or conveyed, a declaration of restriction should also be registered and annotated in the certificate of title. These restrictions will constitute a lien that shall be binding on all condominium unit owners.

Registration of Sale or Conveyance of Condominium

Sale or conveyance of a condominium unit should also be registered and annotated in the certificate of title. A condominium owner’s copy of the pertinent portion of such certificate of title will be issued. However, if the enabling or master deed provides that the land included in the project is to be owned by the condominium owners, the RD, at the request of all condominium owners and upon surrender of all condominium owner’s copy, cancel the certificate of title of the property and issue a new one under the names of the condominium owners as co-owners of the land.

VI. Subdivisions

What is a subdivision project?

Subdivision project shall mean a tract or a parcel of land registered under Act No. 496 which is partitioned primarily for residential purposes into individual lots with or without improvements thereon, and offered to the public for sale, in cash or in installment terms. It shall include all residential, commercial, industrial and recreational areas as well as open spaces and other community and public areas in the project.

When is a subdivision or condominium project is deemed registered?

Upon completion of the publication of requirement. It must be complied when the NHA has caused to published a notice of the filing of the registration statement, at the expense of applicant-owner or dealer in two (2) newspapers of general circulation, one published in English and another in Filipino, once a week

for two (2) consecutive weeks, reciting that a registration statement for the sale of subdivision lots or condominium units has been filed in the National Housing Authority.

VII. Assurance Fund

What is an Assurance Fund?

The Assurance Fund is a special fund created by P.D. No. 1529 (Sections 93 and 94) under the custody of the National Treasurer, to compensate, when proper, a person who sustains loss or damage, or is deprived of land or any estate or interest therein, by reason of the operation of the Torrens System. The action for recovery of damages from the Assurance Fund may be availed of in case of insolvency of the party who procured the wrongful registration. This action is civil in character and may be in the form of the ordinary complaint for damages.

A. Upon the entry of a certificate of title in the name of the registered owner, including building or other improvements and transfer of certificate of title, the Register of Deed is entitled to one-fourth (1/4) of one percent (1%) of the value of the assessed real estate for taxation purposes. If no assessment has been made, it shall be determined by sworn declaration of two (2) disinterested persons subject to determination by court. (Section 93, Assurance Fund)

B. All money received by the Register of Deeds shall be paid to the National Treasurer and shall keep in Assurance Fund. The Income of the Assurance Fund shall be added to the principal until said funds amounts to five hundred thousand pesos (P500,000.00) and in excess of income from investments shall be paid to the National Treasurer. (Section 94 of the Assurance Fund)

C. Who may recover from the Assurance Fund under Section 95?a) That a person sustains loss or damage, or is deprived of any estate or

interest in the land;b) On account of the bringing of the land under the operation of the

Torrens system arising after original registration;c) Through fraud, error, omission, mistake or misdescription in a certificate

of title or entry or memorandum in the registration book;d) Without negligence on his art; ande) Is barred or precluded from bringing an action for the recovery of such

land or estate or interest therein.

Note: In case of insolvency, a party may file an action against the Treasurer of the Philippines for recovery of damages from the Assurance Fund.

D. Against whom action is filed? (Section 96 of the Assurance Fund)Action is due to deprivation of land or of any state arising through fraud, negligence, omission, mistake or misfeasance of the:

a) Register of Deeds, his deputy or other employees of the Registry in the performance of their duties;

b) The National Treasurer and other person or persons as co-defendants.E. Section 97, Judgment in favor of plaintiff

a) First, satisfy the claims from private persons and execution is issued against the National Treasury, the Register of Deeds, and other defendants.

b) If the execution is returned unsatisfied, secondary liable is the National Treasurer who shall pay thru assurance fund. Thereafter Government shall be subrogated to rights of plaintiff to go against other parties or securities.

F. Where to file action against Assurance Fund?In any court of competent jurisdiction, the Regional Trial Court in city where the property is located or the residence of the plaintiff

G. When to file action against Assurance Fund?The plaintiff has a period of six (6) years from the time the right of action accrues within which to bring the action. In case the plaintiff is a minor, insane or imprisoned, or otherwise under legal disability, may bring proper action at any time within two (2) years after the disability has been removed, notwithstanding the original period of prescription.

VIII. Schedule of Fees and Special Fund

Flowcharts:

Reference from ombudsman.gov.ph