What is a Certificate Of Title?
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 declare 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 is not synonymous with Torrens certificate of titles. It is a generic word which means proof, evidence or muniment of ownership such as tax declaration, realty tax receipts, deed of sale and Torrens Certificate of Title (best evidence of ownership) • Land title refers to that upon which ownership is based. It is the evidence of the right of the owner or the extent of his interest where he can maintain control and right to exclusive possession and enjoyment of property. • Muniments of title are instruments or written evidences that the applicant hold or possesses to enable him to substantiate and prove title to his estate. What are the attributes and limitations on certificates of title and registered lands? 1. Free from liens and encumbrances 2. Incontrovertible and Indefeasible 3. Incontrovertible and indefeasible. 4. Certificate of title not subject to Collateral Attack
What are the parts and information on the title?
• Title Form Information- where the type of form, date of revision and serial number can be found • Survey Information- where the parcel identity (lot, block, survey plan number), location, adjoining parcels, tie point, tie line, bearings and distances from corner to corner and the area and date of survey can be found • Registration Information- where the name of the Register of Deeds, title number, book number, page number, place/time/date of registration, name and signature of registrar and historical information (date and place of original registration, OCT No., Volume No., Page No., Decree No., record/name of original owner, number of cancelled title for OCT) can be found • Ownership Information- where the name/s of all persons whose interest make up the full ownership, citizenship, civil status, postal address
What are the common annotations on title?
1. Cloud on title is any condition revealed by a title search which affects the title to the property, usually relatively unimportant items but which cannot be removed without quitclaim or court action.
Quieting of title is an action brought to remove clouds on the title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title as defined in Article 476 of the New Civil Code:
Art. 476. Whenever there is a cloud on title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title. An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein.
2. Notice of lispendens. LisPendens is a Latin term meaning “a pending litigation. A Notice of LisPendens, when registered with the registry of deeds where the land is recorded serves as a warning to third parties that a particular real property is in litigation. Before the final judgment, the notice of lispendens may be cancelled upon order of the court, action of the register of deeds at the instance the party who caused the registration of the notice or verified petition of the party who caused the registration thereof.
3. Section 4 Rule 74 of the Rules of Court governs the Title that is acquired through extra-judicial settlement. Title is subject to claims of third party, with interest, for a period of two (2) years.
4. Deed of restrictions refers to limitation on use of property such as in subdivision and condominium.
a. These are conditions or limitations placed in a deed by the owner when the property is transferred to another party. It is usually created by individual parties and affects a particular property. b. Those conditions placed in the deeds by developers and usually affect the entire subdivision are called restrictive covenants c. If restrictions placed are unreasonable or unlawful restraints on an owner’s use of a land they will be unenforceable.
5. Easement or right-of-way refers to right given to another property or the dominant property. The law has defined it as: Art. 613. An easement or servitude is an encumbrance imposed upon an immovable for the benefit of another immovable belonging to a different owner. The immovable in favor of which the easement is established is called the dominant estate; that which is subject thereto, the servient estate.
6. Writ of preliminary attachment is a judicial order emanating from a legal action, authorizing the Sheriff or other public officer to take all the property or rights of any party so as to preserve the property to satisfy future judgment in favor of the Plaintiff. Attachment is governed by Rule 57 of the Rules of Court. There are three kinds of Attachment.
7. Writ of execution is a court order authorizing the sheriff to execute the final judgment for the sale of the property.
8. Mortgage is the property is used as collateral and security for a loan.
9. Adverse claim is whoever that claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, may, make a statement in writing setting forth fully his alleged right or interest, and how or under whom acquired, a reference to the number of the certificate of title of the registered owner, the name of the registered owner, and a description of the land in which the right or interest is claimed. Some of the characteristics of an adverse claim includes:
a. Title cannot be defeated by an adverse claim b. First: refers to petition of the party who claims any part or interest in registered land arising subsequent to the date of original registration c. Second: refers to the petition filed in court by a party in interest for the cancellation of the adverse claim upon a showing that the same is invalid. d. While the law states that the adverse claim shall be effective for a period of thirty (30) days from the date of registration, however, the cancellation is still necessary to render it ineffective otherwise the inscription will remain annotated and shall continue as a lien upon the property.
10. Encroachments are unauthorized physical intrusions of a building or other form of real property onto an adjoining property. It can mean a trespass, and the owner of the property being encroached on can take court action either to force the removal of the encroachment or to recover damages.
Encroachment of long-standing use may result to an easement right by prescription or adverse possession.
11. Liens (Money Claim) -These are claims or charges against the property to provide security for a debt or obligation. A lien allows the creditor to have the property sold to satisfy the debt in case of default. To enforce it, the creditor must take legal action and obtain a court order to have the property sold. Liens against real estate may reduce the value of the property; however, the owner can still convey title to another party. The following are the kinds of lien:
a. JUDGMENT LIEN is imposed when a judgment concludes a lawsuit is issued and recorded by the court and in effect, it will be done on both the real and personal property of a defendant/debtor. It will only be cleared when after a satisfaction of judgment is recorded and issued to a debtor, say, a property is sold to satisfy a debt. This is a general, involuntary lien.
b. MORTGAGE LIEN automatically ends after payment of loan. If loan remains unpaid then the lender may foreclose and sell the property. This lien is a specific, voluntary lien created after a lender makes a loan using real estate as security. The property owner signs a mortgage document that creates a lien against the property. A specific and involuntary lien, it is used when a property owner does not pay for the work or materials provided.
c. MECHANIC’S LIEN is a protection on the part of a supplier/contractor who provides materials or services for the real estate.
d. REAL ESTATE TAX LIEN which due to the is a levy on real property determined on the basis of a fixed proportion of the value of the property, it give the creditor the right to sell a property at a tax sale to satisfy outstanding tax delinquencies, plus interest and penalties. However the delinquent property owner may redeem the property so long as all obligations will be paid before (equitable redemption right) or after (statutory redemption right) the tax sale.
What are the statutory liens affecting title?
First: Claims or rights arising or existing under the laws and Constitution of the Philippines
Second: unpaid realty taxes
Third: Any public highway or private way established or recognized by law or any government irrigation canal or lateral thereof if the certificate of title does not state that the boundaries of such highway or irrigation canal or lateral thereof have been determined
Fourth: Any disposition of the property or limitation on the use thereof by virtue or pursuant to PD 27 or any other law or regulations on Agrarian reform
References: Peña, N. Registration of Land Titles and Deeds. Quezon City: Rex Printing Company, Inc. Property Registration Decree 1529, “Amending and Codifying the Laws Relative to Registration of Property and for Other Purposes” The Rules of Court of the Philippines The New Civil Code