Monday, March 14, 2011

AMENDMENT OF MORTGAGE

As laid down in LRC Consulta No. 160, to wit:
" Where real estate mortgage is amended and the amendment involves an increase in the mortgage loan, the fees to be collected shall be based on the amount of the increase only, provided that no new security is given to guarantee the agregated loan and that the period of the original mortgage has not been extended.

If therefore the new security is given as an addition or in substitution for the part of the original that has been released, and that there is no stipulation that the same will answer only for a certain definite portion of the Mortgage Loan, registration should be collected on the basis of the aggregate amount of the consideration."

DAR CLEARANCE

In accordance with Administrative Order No. 8, Series of 1995, as amended by Administrative Order No. 6, Series 0f 1996 of the Department of Agrarian Reform, lands awarded under P.D. 27 may be subsequently trnasferrred and registered by the Register of Deeds only after the issuance of a DAR Clearance.This is true nothwithstanding the injunction appearing on the face of the said Emancipation Patent that it is "subject to the condition that it shall not be transferred except by hereditary succession." Administrative Order No. 8 is now being implemented by this Authority through LRA Circular No. 96-03 dated 2 February 1996. (LRA Consulta No. 2738)

Wednesday, March 2, 2011

CONSULTA

Sec. 117 of P.D. 1529 provides:

Sec. 117. Procedure. - When the Register of Deeds is in doubt with regard to the proper step to be taken or memorandum to be made in pursuance of any deed, mortgage or other instrument presented to him for registration, or where any party in interest does not agree with  the action taken by the Register of Deeds with reference to any such instrument, the question shall be submitted to the Commissioner of Land Registration by the Register of Deeds, or by the party in interest thru the Register of Deeds.

Where the instrument is denied registration, the Register of Deeds shall notify the interested party in writing, setting forth the defects of the instrument or legal grounds relied upon, and advising him that if he is not agreeable to such ruling, he may, without withdrawing the documents from the Registry, elevate the matter by consulta within five days from receipt of notice of the denial of registration to the Commissioner of Land Registration upon payment of a consulta fee in such amount as shall be prescribed by the Commissioner of Land Registration.

The Register of Deeds shall make a memorandum of the pending consulta on the certificate of title which shall be cancelled motu propio by the Register of Deeds after final resolution or decision thereof, or before resolution, if withdrawn by petitioner.

The Commissioner of Land Registration, considering the consulta and the records certified to him after notice to the parties and hearing, shall enter an order prescribing the step to be taken or memorandum to be made. His resolution or ruling in consultas shall be conclusive and binding upon all Register of Deeds, provided, that the party in interest who disagrees with the final resolution, ruling or order of the Commissioner relative to consultas may appeal to the Court of Appeals within the period and in the manner provided in Republic Act No. 5434.

Tuesday, March 1, 2011

Deed of Revocation of Deed of Donation

Thus and considering that the Deed of Donation was not registered nor annotated on the titles of Isaias Udal, registration of the Deed of Revocation of Donation executed by the latter and his heirs cannot be given due course for the simple reason that th edonation was not registered and therefore there is nothing to be revoked. To do otherwise, would create a vacuum or missing link in the chain of transactions involving the property in question. Moreover, the donor cannot unilaterally revoke the donation after it was perfected. (Parks vs. Province of Tarlac, 49 Phil. 142)

Registration and annotation

"At this stage where the act of recording has been completed and registration is an accomplished fact, this Administration can no longer direct the Register of Deeds to cancel the annotation from the certificate of title. The recording of the memorandum being fait accompli its cancellation may be effected only upon order of the court or by means of a voluntary instrument executed by the one who caused the registration. " (Consulta No. 1528)( LRA Consulta No. 2455 dated August 9, 2002)

Forged and Illegally Issued Title

Any person who is a transferee of a certificate of title emanating from a forged or illegally issued title cannot be placed in a better position than the legally  registered owner of a certificate of title. As decided by the Supreme Court in C.N. Hodges vs. Dy Buncio & Co., Inc.: " A person who bought land registered under the Torrens System from one who procured title thereto by means of fraud, cannot invoke indefeasibility of his title against the registered owner who did not perform any act which could have brought about the issuance of another certificate upon which a purchaser in good faith and for value could rely." (6 SCRA 289) (LRA Consulta NO. 2420 dated April 25, 2001)

A Void Title May Become the Root of a Valid Title in the Hnads of An Innocent Holder for Value

The Supreme Court in the case of Fule vs. De Legare, 7 SCRA 351, (1963) held:
" We have indeed ruled that a forged or fraudulent deed is a nullity and conveys no title (Director of Lands vs. Addison, 49 Phil. 19). However, we have also laid down the doctrine that there are instances when such fraudulent document may become the root of valid title. One such instance is where the certificate of title was laready transferred from the name of the true owner to the forger,and while it remained that way, the land was subsequently sold to an innocent purchaser.For then, the vendee had the right to rely upon what appeared in the certificate (Inquimbos vs. Cruz, G.R. No. L-13953, July 28, 1960).