ARTICLE 476

 

REASONS, AND BASIS OF PROVISIONS ON QUIETING OF TITLE

·         The reason is that equity comes to the aid of him who would suffer if the instrument were enforced. He is in good conscience entitled to a removal of the cloud or doubt upon his title. Upon the other hand, the respondent has no legal or moral ground to hold the instrument against the petitioner’s title.

·         Originating in equity jurisprudence, its purpose is to secure “an adjudication that a claim of title to or an interest in property, adverse to that of the complainant, is invalid, so that the complainant and those claiming under him may be forever afterward free from any danger of hostile claim

CLOUD ON TITLE

DEFINITION: A cloud on title is a semblance of title, either legal or equitable, or a claim or a right in real property, appearing in some legal form but which is, in fact, invalid or which would be inequitable to enforce.

REQUISITES FOR EXISTENCE OF CLOUD:

1.       There is an instrument, record, claim, encumbrance or proceeding which is apparently valid or effective;

2.       Such instrument, etc. is, in truth and in fact, invalid, ineffective, voidable, or unenforceable (despite its prima facie appearance of validity or legal efficacy), or has been extinguished or terminated, or has been barred by extinctive prescription

3.       Such instrument, etc. may be prejudicial to said title.

 

KINDS OF ACTION REFERRED TO

(a)    Remedial (action to remove the cloud or to quiet title)

-          a remedy or proceeding which has for its purpose an adjudication that a claim of title to realty or an interest thereon, adverse to the plaintiff, is invalid or inoperative, or otherwise defective and hence, the plaintiff and those claiming under him may forever be free of any hostile claim

-          may be availed of only when by reason of any instrument, etc., which appears valid but is, in fact, invalid, ineffective, voidable, or unenforceable, a cloud is thereby cast on the complainant’s title to real property or any interest therein

-          Under Article 476, the only issue in an action to quiet title is whether there is a cloud on a title to real property because of any instrument, etc. that has a prima facie appearance of validity

(b)   Preventive (action to prevent a future cloud or doubt – action quia timet)

REQUISITES FOR AN ACTION TO QUIET TITLE

1.       The plaintiff or complainant has a legal or an equitable title to, or interest in the real property subject of the action

2.       The deed, claim, or proceeding claimed to be casting cloud on his title must be shown to be, in fact, invalid or inoperative despite its prima facie appearance of validity or legal efficacy

REQUISITE NEEDED TO BRING AN ACTION TO PREVENT A CLOUD

·         it must be made clear that there is a fixed determination on the part of the defendant to create a cloud, and it is not sufficient that the danger is merely speculative

 

	ACTION TO QUIET A TITLE	ACTION TO REMOVE A CLOUD ON TITLE
Purpose	To put an end to troublesome litigation in respect to the property involved	The removal of a possible foundation for a future hostile claim
Nature	Remedial action involving a present adverse claim	Preventive action to prevent a future cloud on the title

 

NATURE OF THE ACTION

·         Actions to quiet title are not technically suits in rem, nor are they, strictly speaking, in personam, but, being against the person in respect of the res, wherein the judgment does not extend beyond the property in controversy, these proceedings acquire a status that may be characterized as suits quasi in rem

RIGHTS OF A PROPERTY OWNER TO HAVE CLOUDS ELIMINATED

When one is disturbed in any form in his rights of property over an immovable by the unfounded claim of others, he has the right to ask from the competent courts:

(a)    that their respective rights be determined,

(b)   not only to place things in their proper place, to make the one who has no rights to said immovable respect and not disturb the other,

(c)    but also for the benefit of both,

(d)   so that he who has the right would see every cloud of doubt over the property dissipated,

(e)   and he could afterwards without fear introduce the improvements he may desire, to use, and even to abuse the property as he deems best

REASONS FOR ALLOWING THE ACTION

(a)    the prevention of litigation (eventual litigation);

(b)   the protection of the true title and possession;

(c)    the promotion of right and justice

PROPERTY TO WHICH ACTION IS APPLICABLE

·         The action to quiet title applies to real property only and not to personal property, and with respect to real property, it may refer to the title or only an interest therein

·         The law, however, does not expressly exclude personal property from actions to quiet title. By analogy, and as a matter of equity, the provisions may be applied to personalty under exceptional circumstances with respect to certain types of property which partake of the nature of real property or are treated to some extent as realty because of registration requirements for ownership or transactions affecting them.