CONCEPT OF OWNERSHIP
An independent right to the exclusive enjoyment and control of a property which includes:
a. disposition
b. recovery= subject to restrictions established by law and the rights of others.
Meaning of property
1. physical tangible or corporeal object (car, parcel of land)
2. intangible object (patent, contract franchise, shares of stock)
RIGHTS INCLUDED IN OWNERSHIP
Fee Simple- consist of ‘Bundle of Rights’ to ownership with no limitations or restrictions other than those imposed by law or contract.
a. Inherent
b. appurtenant (rights or restriction attached to the property)
Bundle of rights includes the following:
1. Right to possess
2. Right to use and enjoy
3. Right to the fruits
4. Right to dispose
5. Right or vindicate or recover
LIMITATIONS ON RIGHT OF OWNERSHIP
1. Imposed by State for taxation, police power and power of eminent domain.
2. Imposed by law re:
a. legal easement
b. requirement of legitime in succession
c. zoning
d. building code
e. rent control
f. urban and agrarian reform
g. subdivision regulations
h. escheat (The common law that transfer the estate of a person who dies without a successors or heirs to the state)
3. imposed by the grantor of the property on the grantee by contract such as
a. donation
b. last will
c. usufruct (A Civil Law term referring to the right of one individual to use and enjoy the property of another, provided its substance is neither impaired nor altered)
4. Imposed by the owner such as
a. voluntary easement
b. lease
c. mortgage
KIND OF OWNERSHIP
1. Sole ownership- undivided whole property interest
2. Co-ownership- a proportionate benefit of co-owners;
a. primary property interest is undivided
b. undivided primary property interest is a whole interest
3. Diverse ownership- primary property interest is divided and the aggregate of the property rights in the entity do not constitute the whole property interest
4. Condominium ownership- combination of sole and co- ownership
SURFACE, SUBSURFACE AND AIR RIGHT (SUPRA SURFACE)
Land extends downward to the center of the earth and upwards indefinitely to the skies
Surface and subsurface- entitle the owner to construct any works or make any plantations and excavations without detriment to servitudes and special laws.
Air right or supra surface- use and control of the air space over the land subject to the requirements of aerial navigation, laws, or contract
RIGHT OT HIDDEN TREASURE
1. Hidden treasure belongs to the owner of the land, building and other property on which it is found.
2. When the discovery is msde on the property of another, or of the State or any of its subdivisions and by CHANCE:
a. ONE HALF of the treasure shall be allowed to the finder
b. If the finder is a trespasser no entitlement of the share is given
3. Things found in the interest of science or arts, the State may acquire them at their just price divided in conformity with rule in #2
4. Hidden treasure for legal purposes- any hidden or unknown deposit of money, jewelry, or the precious objects, the lawful ownership of which does not appear.
RIGHT OF ACCESSION
1. IN GENERAL-Right to everything produced, incorporated or attached thereto naturally or artificially
2. PRODUCE OF PROPERTY
a. natural fruits- the spontaneous product of the soil
b. industrial fruits- those produce by land cultivation or labor
c. Civil fruits- the rental income of building and/or land
3. WITH RESPECT TO IMMOVABLE PROPERTY
a. Anything built, sown or planted in good faith, owner shall have the right:
i. after payment of indemnity appropriate as his own the works, sowing or planting
ii. Owner can oblige the builder or planter to pay for the land at a considerable value in which the price is not more than the building or the plants. In such case the
builder or planter shall pay reasonable rent. The parties shall agree on the terms of the lease and in case of disagreement, the court shall fix the terms thereof.
b. Anything built, sown or planted in bad faith, owner shall have the right
i. Demand removal of plant or demolition of the building at the expense of the builder or planter.
ii. Compel the planter to pay the price of the land and the sower, the proper rent.
c. To the owners of land adjoining the banks of the revers belong the accretion which they gradually receive from the effects of the current of the water.
d. The owners of estates adjoining ponds or lagoons
1. do not acquire the land left dry by the natural decrease of the waters
ii. do not lose that inundated by them in extraordinary floods.
e. Riverbeds abandoned through the natural change in the course of the waters
i. belong to the owners whose land is occupied by the new bed
ii. The area is in proportion to the area lost
iii. The owner of the land adjoining the old bed shall have the right to acquire the same by paying the value thereof.
iv. Value shall not exceed the value of the area occupied by the new bed
f. Whenever a river, changing its course by natural caused opens a new bed though a private estate, the bed shall become a public dominion.
MEANING OF TITLE
TITLE
1. not synonymous with ‘ Torrens Certificate of Title’
2. a generic word meaning:
a. proof
b. evidence
c. muniment of ownership (Muniment of Title is a legal term for a document, or other evidence, that indicates ownership of an asset) such as:
i. Tax declaration
ii. realty tax receipts
iii. Deed of sale
iv. Torrens Certificate of title- the best evidence of ownership because it is indefeasible, imprescriptible, and binding against the whole world.
MODE OF ACQUIRING TITLE
1. PUBLIC GRANT- a conveyance of public land by government to a private individual
2. Acquisitive prescription or adverse possession
a. must be in open, continuous, exclusive, and notorious possession
b. if in good faith and with just title= 10 years uninterrupted possession is requires (urban land)
c. if in bad faith without just title= 30 years continuous possession is required (rural land)
d. only available if the land possessed is punlic land that is alienable and desposable
e. a property registered under the provisions of PD 1529 is not subject to prescription.
f. prescription is unavailing not only agaisnt the registered owner, but also against his hereditary successors.
3. Accretion
Requisite
a. The deposit of soil or sediment is gradual and imperceptible.
b. It is the result of the current of waters (river/sea)
c. The land where accretion takes place is adjacent to the banks of rivers or the sea coast
i. Accretion to registered lands need new registration
ii. There must be no human intervention in the process
iii. The current causing the alluvial deposit must be from a river. If is is from the sea, the deposit will pertain to the state.
4. Reclamation
a. Filing of submerged land by deliberate act and reclaiming title thereto
b. Must be initially owned by the government
c. May be subsequently transferred to private owners
5. Voluntary Transfer of private grant
a. Voluntary execution of deed of conveyance
b. Contractual relationship between the parties
c. Consensual
6. Involuntary Alienation or involuntary grant
a. No consent from the owner of land
b. forcible acquisition by the State such as expropriation of properties
7. Inheritance
a. Hereditary succession to the estate of the deceased owner
b. Inheritance through Descent- transfer of real properties between and individual and its ancestors, disposition through kinship relations
c. Inheritance through devise- Transfer of real properties through the use of a will
8. Emancipation Patent/Grant/Certificate of Land Ownership Award(CLOA)
RIGHT TO OWN
1. General rule- People who can own land in the Philippines are only Filipinos. Corporations can own land provided 60% of the capital is owned by Filipino/Filipinos.
2. Exception to General Rule- Alien is allowed in following cases:
a. Acquisition before the 1935 Constitution
b. Acquisition thru hereditary succession if the person acquiring is a legal heir
c. Purchase of not more than forty percent(40%) interest in a condominium project.
d. Purchase by former natural born citizens subject to limitations prescribed by BP 185 and RA 8179
3. A Filipina/Filipino who marries an alien retains her Philippines citizenship (unless her marriage to the alien husband/wife compels her to assume the later’s citizenship)
and can therefore acquire real estate in the Philippines.
ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZENS
1. Mode of acquisition includes
a. Voluntary deeds- sale or donation
b. Involuntary deeds- foreclosure, execution or tax delinquency sale
2. Maximum area that maybe acquired:
a. BP 185- For residential purposes
i. Urban land- 1,000 square meters OR
ii. Rural land- 1 hectare
b. RA 8179- For business purpose
i. Urban land- 5,000 square meters OR
ii. Rural land- 3 hectares
* Business purposes– refers to the use of land primarily, directly, and actually in the conduct of business or commercial activities in the brad areas of
agricultureindustry and services including the lease of land but excluding the buying and selling thereof
3, Married couple, both former natural born Filipino citizens-both of them may avail of the right provided that the total acquisition shall not exceed the maximum area allowed.
4. A transferee, while still a Filipino who acquired land, is still allowed to acquire additional land for residential purposes, urban or rural, as long as the total does not exceed the allowable limit. If he owned urban or rural land before for business purposes the same rule applies.
5. If a transferee has acquired urban land for residential purposes he cannot buy land in rural area for the same purpose and vice versa. However, he may still avail of the right ot acquire land for business purpose under RA 8179.
LAND OF PUBLIC DOMAIN
1. Under the Constitution, lands of the public domain are classified into agricultural forst or timber, mineral and national parks.
2. Alienable lands of the public domain shall be limited to agricultural lands.
3. Filipinos may acquire land of alienable lands not more than 12 hectares by
a. Purchase
b. Homestead
c. Patent
d. Lease not more than 500 hectares
4. Private corporations cannot acquire, but may only lease alienable lands
a. A period of 25 years
b. renewable to another 25 years only.
c. 1,000 hectares or less only.
TORREN SYSTEM OF LAND REGISTRATION
A registration of transaction with interest in the land
Objective-
1. to Establish and certify to the ownership of an absolute and indefeasible title to land
2. To simplify its transfer
This was developed and introduced by Sir Robert Torrens in South Australia in 1857
The system was introduced in the Philippines in February 1, 1903 upon the effectivity of Land Registration Act 496
Purpose of Torrens System:
1. To quiet title of the land
2. To put a stop to any question on the legality of the title
3. To rest secure the owner without the necessity of waiting for the oortals of the courts or sitting in the ‘ mirador su casa’ to avoid the possibility of losing his land.
Under the Philippines law The certificate of title or The Torrens title is the best evidence of ownership over a registered land.
1. Presumed to have been regularly essued, valid, and without defects.
2. Related presumption of the buyer- he is not aware of any defect in the title of the property he purchased
3. He is not supposed to look beyond the title.
4. He has the right to rely upon the face of the Torrens title
5. He dispense with the trouble of inquiring further unless he has knowledge of facts and circumstances that impel him to make inquiry.
The Torrens System of Land Registration
1. Was introduced by the Americans because :
a. Most of the lands are old possessions or privately owned.
b. Some were already recorded in established land registry
c. Existing land registration based in the Spanish Mortgage Registration was complicated
2. Is used by 20 states in the US now.
3. One of the most significant legacies the Americans have bequeathed to the Filipinos, aside from the idea of democracy and the form of government in the country.
BRIEF HISTORY OF LAND REGISTRATION IN THE PHILIPPINES
Laws of the Indies
1. Established in the Philippines is 1596
2. Law governing registration of Land Grants issued by the Crown of Spain to Spanish settlers- civilian and military, sent here
3. Grants were in the form of Royal Decrees same system used in Spain and all its dominion/colonies.
Spanish Mortgage Law
Amended and improved the Laws of the Indies with impositions of:
a. Several laws on the land on land registration and
b. The Spanish Mortgage Law
Torrens System
Introduced by the Americans due to the complication of Spanish Mortgage Laws
a. Introduced in February 1, 1903
b. Governed by Act 496 or the Land Registration Law.
TYPES OF TORRENS CERTIFICATES OF TITLE
1. ORIGINAL CERTIFICATE OF TITLE (OCT)
a. First title issued in the name of the registered owner by the Register of Deeds (ROD)
b. It covers a parcel of land registered by virtue of judicial or administrative proceeding.
2. TRANSFER CERTIFICATE OF TITLE
a. Title issued by ROD in favor of the transferee
b. Already registered land had been transferred by virtue of slae or other modes of conveyance.
3. RECONSTITUTED CERTIFICATE OF TITLE (RT/RO)
Title issued by ROD though administrative or judicial procedures, in replacement of those lost, missing or destroyed.
Forms of original certificate of title
Judicial Forms:
11- Sales Patent*
54- Free Patent
67- Homestead Patent
167- MS Patent (Miscellaneous Sale)
107- Ordinary Judicial
108- Cadastral Judicial
45- General Form for Special Patent or Reclaimed area
109- Ordinary and Cadastral Title
140- Patent Title
* These are original forms kept in ROD. All these Judicial Forms has a duplicate, hence called Judicial Form (number of form)-D such as Judicial Form 11-D. Owner kept this form.
150- Additional Sheet ( annotation of encumbrance). This is attached to all forms both original and duplicate
Other Forms of Certificate of Title
LRC Form 1- Condominium Certificate of Title- original
LRC Form 1-A- Owner’s duplicate copy of CCT
LRC Form 1- Reconstituted CCT-original
LRC Form 1- A- Reconstituted CCT- duplicate
Judicial Forms:
11- Sales Patent- Reconstituted (Original Copy)
11-D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
54- Free Patent Reconstituted
54- D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
67- Homestead Patent Reconstituted
67-D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
107- Ordinary Judicial Reconstituted
107- D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
108- Cadastral Judicial Reconstituted
108- D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
140- Patent Title Reconstituted
140- D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
45- General Form for Special Patent or Reclaimed area Reconstituted
45- D – Duplicate (Owner’s duplicate, co-owner’s copy and new owner’s duplicate copy pursuant to the Court Order)
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