The requirement of registration of the Special Power of Attorney (SPA) was specifically provided under Section 64 of Presidential Decree (PD) 1529 or the "Property Registration Decree" which states:
"Any person may, by power of attorney, convey or otherwise deal with registered land and the same shall be registered with the Register of Deeds of the province or city where the land lies. Any instrument revoking such power of attorney shall be registered in like manner."
The contract of agency is valid as long as the following requirements enumerated under Article 1318 of the New Civil Code of the Philippines are present:
"There is no contract unless the following requisites concur:
"(1) Consent of the contracting parties;
"(2) Object certain which is the subject matter of the contract;
"(3) Cause of the obligation which is established."
Correlative thereto, Article 1869 of the same law provides that:
"Agency may be express, or implied from the acts of the principal, from his silence or lack of action, or his failure to repudiate the agency, knowing that another person is acting on his behalf without authority. Agency may be oral, unless the law requires a specific form."
The contract of agency is perfectly valid as the requirements provided by law are complied with.
Its non-registration with the Registry of Deeds has nothing do with its validity.
This finds support in the case of Republic of the Philippines vs. Ciruelas (GR 239505, Feb. 17, 2021), where the Supreme Court speaking through Associate Justice Edgardo L. Delos Santos stated that:
"Petitioner makes much of the fact that the SPA conferring authority to Dominador was not registered with the Registry of Deeds of Batangas and, thus, in violation of Section 64 of P.D. No. 1529 which states:
"SEC. 64. Power of attorney. Any person may, by power of attorney, convey or otherwise deal with registered land and the same shall be registered with the Register of Deeds of the province or city where the land lies. Any instrument revoking such power of attorney shall be registered in like manner.
"A plain reading of the aforementioned provision, however, does not state that the registration of an SPA is a prerequisite to its validity or conversely, its non-registration makes the agent's authority ineffective. The Court agrees with the rationalization of the appellate court that the main purpose of registration is to notify the whole world and ultimately, to protect the rights of any third person who may have interests or claims over the land. ..."
The non-registration of the SPA with the Registry of Deeds affects only the notice requirement. The primary purpose of registration of said document is to notify the whole world and to protect rights of third person who has interest in the said land.
Source: Manila Times