FRAUD AS BASIS OF AN ADVERSE CLAIM

We have also ruled that where the adverse claim is anchored on allegations that the transfer in favor of the registered owner was tainted with fraud and/or unlawfulness, the same may not be given credence without a court finding to that effect (Consulta No. 4818, 5162). Such allegations are litigious in nature and do not fall within the purview of Section 70 of P.D. 1529, and should rather be threshed out in an appropriate proceeding before a court of competent jurisdiction. (Consulta No. 5568 dated April 29, 2015)

Foreigners as adverse claimants

x x x x being a foreigner is not allowed to own lands in the Philippines. Consequently, he could not have any interest in the property covered by TCT No. _____. To allow registration of the adverse claim will effect be a recognition of his being part owner of the land, situation violative of the Constitution. (LRA Consulta No. 2835)

Cancellation of Adverse Claim

This Authority has abandoned the earlier practice of allowing the cancellation of adverse claim through a sworn  petition by the party interest (a registered owner) addressed to the Register of Deeds. The registered owner must instead address his petition for cancellation of the adverse claim to the proper court. This is in line with the ruling of the Supreme Court in the case of "Alfredo Sajonas and Conchita Sajonas, petitoners, versus, the Court of Appeals, Domingo A. Pilares, Sheriff Garcia of Quezon City and the Register of Deeds of Marikina, Respondents," GR No. 102377 promulgated on July 5, 1996, which declared that an adverse claim annotated on the title can only be cancelled by order of the court . (LRA Consulta No. 2805 and 2963)

Estafa

A criminal case for estafa is a personal action directed against a person of the defendant and does not in any way involve the recovery of possession of real estate, or to quiet title thereto, or to remove clouds upon a title thereof, or partition, or other proceedings of any kind in court directly affecting land or the use  or occupation thereof or the buildings thereon, which may be the basis of lis pendens as contemplated  in Section 76 of P.D. 1529.

Hereditary share as an adverse claim

LRC Circular No. 306, date April 27, 1977 embodies the guidelines in the registration of an adverse claim. Paragraph 8 thereof reads:

8. Hereditary share not a basis of adverse claim. It has been settled by this Commission in a string of consultas that the rights of an heir cannot be the subject of an adverse claim.The claim of heirs based solely on their rights of succession, cannot be the basis of an adverse claim on the property registered in the name of the person from whom they claim to inherit since as such, their claim is certainly not adverse to her. On the contrary, it should be in the interest of the heirs to uphold the title of the one they seek to inherit from in order to have a valid title to succeed to and step into the shoes of their predecessor-in-interest. Such claim based on successional rights, therefore, is not within the contemplation of Sec. 110 of Act 496." (LRA Consulta No. 2849)

Money Claim as an adverse claim. . .

A mere money claim may not be registered as an adverse claim on a Torrens certificate of title and a judge who orders the annotation on the certificate of title of such money claim as an adverse claim acts without any authority in law and commits a grave abuse of discretion amounting to lack of jurisdiction that calls for the issuance of the correcting writ of certiorari.

Adverse Claim: Formal requisites. . .

The following are the formal requisites of an adverse claim: (Sec. 70 of P.D. 1529)
1. The adverse claimant must state the following in writing:
a. his alleged right or interest;
b. how and under whom such alleged right or interest is acquired;
c. the description of the land in which the right or interest is claimed
2. The statement must be signed and sworn to before a notary public or other officer authorized to administer oath;
3. The claimant should state his residence or the place to which all notices may be served upon him. (Lozano vs. Ballesteros, 1991, 1995 SCRA 681, 688-689)