Torrens Sytem of Registration

 


HISTORY OF THE TORRENS SYSTEM OF REGISTRATION



TORRENS SYSTEM OF REGISTRATION

·         In the Torrens system, title by registration takes the place of “title by deeds” of the system under the “general” law.

·         By “Torrens” systems generally are meant those systems of registration of transactions with interest in land whose declared object is, under governmental authority, to establish and certify to the ownership of an absolute and indefeasible title to realty, and to simplify its transfer.

·         The object of the Torrens system then is to do away with the delay, uncertainty, and expense of the old conveyancing system.

·         The dominant principle of the Torrens system of land registration is that the titles registered thereunder are indefeasible or as nearly so as it is possible to make them

PURPOSE OF THE TORRENS SYSTEM

·         The real purpose of the Torrens system of registration, as expressed in Legarda v. Saleeby, a 1915 decision, is to quiet title to land; to put a stop forever to any question of the legality of the title, except claims which were noted at the time of registration, in the certificate, or which may arise subsequent thereto.

·         That being the purpose of the law, once a title is registered the owner may rest secure, without the necessity of waiting in the portals of the court, or sitting in the “mirador de su casa,” to avoid the possibility of losing his land.

·         The Torrens system aims to decree land titles that shall be final, irrevocable, and indisputable, and to relieve the land of the burden of known as well as unknown claims.

·         The registration either relieves the land of all known as well as unknown claims absolutely, or it compels the claimants to come into court and to make there a record, so that thereafter there may be no uncertainty concerning either the character or the extent of such claims.

ADVANTAGES OF THE TORRENS SYSTEM

(a)    It has substituted security for insecurity;

(b)   It has reduced the cost of conveyances from pounds to shillings, and the time occupied from months to days;

(c)    It has exchanged brevity and clearness for obscurity and verbiage;

(d)   It has so simplified ordinary dealings that he who has mastered the ‘three R’s’ can transact his own conveyancing;

(e)   It affords protection against fraud;

(f)     It has restored to their just value many estates, held under good holding titles, but depreciated in consequence of some blur or technical defect, and has barred the reoccurrence of any similar faults

·         Main Purpose: to avoid possible conflicts of title to real estate and to facilitate transactions relative thereto by giving the public the right to rely upon the face of a Torrens certificate of title and to dispense with the need of inquiring further, except when the party concerned has actual knowledge of facts and circumstances that should impel a reasonably cautious man to make such further inquiry

·         Every person dealing with registered land may safely rely on the correctness of the certificate of title issued therefor and the law will in no way oblige him to go beyond the certificate to determine the condition of the property.

THREE PRINCIPLES IN THE TORRENS SYSTEM

1.       Mirror principle

·         if there are several transfers, the TCT will be a ‘mirror’ in that it should be identical to the current facts. If the seller sells the land, the old title must be identical to the new one in terms of technical description, so as to reinforce the concept that the buyers should be able to rely on the face of the title

·         XPN:

(1)    when a person deals with a registered land with someone that is not the registered owner

(2)    when the party has actual knowledge of facts which should impel a reasonably cautious mind to make such inquiry to the lack of title

(3)    in cases of banking and financing institutions

2.       Curtain principle

·         The concept that the buyer should be able to rely on the face of the title, and should not go beyond the certificate. In a way, the buyer does not have to go behind the curtain to ascertain the truth of the title, because the Torrens Certificate guarantees him that.

3.       Insurance principle

·         Equates registration to a guarantee by the State

REGISTRATION IS NOT A MODE OF ACQUIRING OWNERSHIP

·         Registration does not vest title. It is merely evidence of such title over a particular property. Our land registration laws do not give the holder any better title than what he actually has.

·         Registration is not a mode of acquiring ownership but is merely a procedure to establish evidence of title over realty

·         Registration of land under Act No. 496 or PD No. 1529 does not vest in the registrant private or public ownership of the land. Registration is not a mode of acquiring ownership but is merely evidence of ownership previously conferred by any of the recognized modes of acquiring ownership. Registration does not give the registrant a better right than what the registrant had prior to the registration. The registration of lands of the public domain under the Torrens system, by itself, cannot convert public lands into private lands

WHAT IS A CERTIFICATE OF TITLE?

Certificate of title is the true copy of the decree of registration or the transcription thereof and like the decree shall also be signed by the LRA Administrator. This is the certificate of ownership issued under the Torrens system of registration by the government, thru the Register of Deeds. It names and declares who the owner in fee simple is and described the property with utmost particularity and free from all liens and encumbrances except as those noted or reserved by law. Legally defined, a certificate of title is the transcript of the decree of registration made by the Register of Deeds.

TITLE V. CERTIFICATE OF TITLE

TITLE

CERTIFICATE OF TITLE

Source of right

Merely confirms a title already existing

Foundation of ownership

Mere evidence of ownership

Best evidence of ownership

Best evidence of title

 

WHAT ARE THE 2 TYPES OF CERTIFICATES OF TITLE?

1.       Original Certificate of Title (OCT)

·         the first title issued in the name of the registered owner by the Register of Deeds covering a parcel of land which had been registered under the Torrens system by virtue of a judicial or administrative proceeding

·         It consists of one original copy filed in the Register of Deeds, and the owner’s duplicate certificate delivered to the owner

2.       Transfer Certificate of Title (TCT)

·         the title issued by the Register of Deeds in favor of a transferee to whom the ownership of a registered land has been transferred by any legal mode of conveyance

·         It also consists of an original and an owner’s duplicate certificate.

PROBATIVE VALUE OF A TORRENS TITLE

·         Torrens title may be received in evidence in all courts of the Philippines and shall be conclusive as to all matters contained therein, principally as to the identity of the land owner except so far as provided in the Land Registration Act

·         A Torrens certificate is an evidence of indefeasible title of property in favor of the person in whose name appears therein – such holder is entitled to the possession of the property until his title is nullified.

INDEFEASIBILITY AND INCONTROVERTIBILITY OF CERTIFICATES OF TITLE

·         The certificate, once issued, becomes a conclusive evidence of the title ownership of the land referred to therein. What appears on the face of the title is controlling on questions of ownership of the property in favor of the person whose name appears therein and such cannot be defeated by adverse, open, and notorious possession; neither can it be defeated by prescription.

RULES REGARDING INDEFEASIBILITY AND INCONTROVERTIBILITY OF CERTIFICATE OF TITLE

1.       The certificate of title serves as evidence of an indefeasible title to the property in favor of the person whose name appears therein.

2.       After the expiration of the one (1) year period from the issuance of the decree of registration upon which it is based, it becomes incontrovertible.

3.       Decree of registration and the certificate of title issued pursuant thereto may be attacked on the ground of actual fraud within one (1) year from the date of its entry and such an 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.

NATURE OF THE REGISTRATION PROCEEDINGS UNDER THE TORRENS SYSTEM

·         Upon the presentation in court of an application for the registration of the title to lands, the theory under the Torrens system is that all occupants, adjoining owners, adverse claimants, and other interested persons are notified of the proceedings, and have a right to appear in opposition to such application.

·         Proceeding is against the whole world

·         Proceedings shall be in rem and based on generally accepted principles under the Torrens system

PROCEEDING IN REM V. IN PERSONAM

IN REM

IN PERSONAM

When the object of the action is to bar indifferently all who might be minded to make an objection of any sort against the right sought to be established, and if anyone in the world has a right to be heard on the strength of alleging facts, which, if true, show an inconsistent interest

To establish a claim against some particular person, with a judgment which generally, in theory at least, binds his body, or to bar some individual claim or objection, or to only contain certain persons who are entitled to be heard in defense

 

HOW IS JURISDICTION IN REM ACQUIRED?

By giving the public notice of initial hearing by means of:

1.       Publication

2.       Mailing

3.       Notice

v  The decree has also created the Land Registration Commission, now renamed the Land Registration Authority, under the Department of Justice, the central repository of records relative to original registration, including subdivision and consolidation plans of titled lands

WHO HAS JURISDICTION OVER LAND REGISTRATION CASES?

·         Regional Trial Courts have exclusive jurisdiction over land registration cases.

·         The jurisdiction of the Regional Trial Courts over matters involving the registration of lands and lands registered under the Torrens system is conferred by Section 2 of PD No. 1529, while jurisdiction over petitions for amendments of certificates of title is provided for by Section 108.

·         Section 2of PD No. 1529 provides that RTC shall have exclusive jurisdiction over all applications:

(1)    Original registration of title to lands including improvements and interests therein; and

(2)    Over all petitions filed after original registration of title, with power to hear and determine all questions arising upon such applications or petitions.

·         RTC shall exercise exclusive original jurisdiction in all civil actions which involve the title to, or possession to, real property, or any interest therein, where the assessed value of the property exceeds P20,000, or for civil actions in Metro Manila, where such value exceeds P50,000, except actions for forcible entry into and unlawful detainer of lands or buildings, original jurisdiction over which is conferred upon the MTC, MCTC, MMTC

·         What determines jurisdiction are the allegations in the complaint and the reliefs prayed for—where the ultimate objective of the plaintiff is to obtain title to property, it should be filed in the proper court having jurisdiction over the assessed value of the property.

·         In any event, whether a particular matter should be resolved by the RTC on the exercise of its general jurisdiction or of its limited jurisdiction as a special court is in reality not a jurisdictional question but is more in essence of a procedural question involving the mode of practice which may be waived

DELEGATED JURISDICTION OF INFERIOR COURTS IN CADASTRAL AND LAND REGISTRATION CASES

MTC, MCTC, and the MMTC are granted delegated jurisdiction to hear and determine cadastral and land registration cases in the following instances:

1.       Where the lot sought to be registered is not the subject of controversy and application

2.       Where the lot is contested but the value thereof doesn’t exceed P100,000, such value to be ascertained by the:

§  Affidavit of the claimant or

§  By the agreement of the respective claimants, if there be more than one, or

§  From the corresponding tax declaration of the real property


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