The real purpose of the system of registration of lands or the Torrens system is to put a stop forever to any question as to the legality of the title except claims that were noted in the certificate at the time of registration or subsequent thereto. This is illustrated in this case between a real estate developer, (DBT) and seven individuals (Ric et.al.)
The subject property is a parcel of land containing an area of 240,146 square meters included in Transfer Certificate of Title (TCT) No. 200519 entered on July 19, 1974 and issued in the name of BCR a subdivision developer. It was conveyed by BCR to DBT as payment for services by the latter to the former. This is a mode of payment of an obligation recognized by law known as dacion en pago. Thereafter DBT sold portions of the property to third persons.
On June 24, 1992 however Ric et.al filed an action for the cancellation of TCT 200519 and all titles derived thereat against BCR, DBT, the Register of Deeds and the other occupants of the land who purchased portions thereof from DBT. Ric claimed that he is the lawful owner of the subject property which he had declared for taxation purposes in his name and assessed in the amount of P2,602,190.00 by the City Assessor as of the year 1985. Furthermore he alleged that per certification of the Department of Environment and Natural Resources (DENR) dated May 7, 1992, the lot plan (123169) of said property was verified to be correct and on file in said office, and approved on July 23, 1948.
Ric et.al also claimed that they had been and are still in actual possession of the portions of the subject property and their possession preceded the Second World War. In fact, Ric said that to perfect his title to the land he already filed with the Regional Trial Court (RTC) a petition for the registration and titling of the same in his name where it was discovered by the mapping services of the Land Registration Authority (LRA) that there was an overlapping of the portion of the land subject of his application with the subdivision plan of BCR which was deliberately drawn to cover portions of the subject property. The said portion had by then been conveyed by BCR to DBT and DBT in turn offered the same for sale to the public. Would Ric et.al’s action prosper?
No. Under Article 1126 of the Civil Code in relation to the Land Registration Act (496) as amended by PD 1529, no title to registered land in derogation of that of the registered owner shall be acquired by adverse possession. In this case the registered owner of the subject land is DBT. Hence proof of possession by Ric et.al is immaterial and inconsequential.
Moreover in this case, there is no clear evidence that DBT participated in the fraudulent scheme. Thus it is an innocent purchaser for value and in good faith which, through a dacion en pago duly entered into with BCR acquired ownership over subject property and whose rights must be protected under Section 32 of PD 1529 prohibiting any petition reopening the registration proceedings covering a title to land where an innocent purchaser for value has acquired the land or an interest therein whose rights may be prejudiced.
It must also be pointed out that portions of subject property had already been sold to third persons who, like DBT, are innocent purchasers in good faith and for value, relying on the certificate of title shown to them, and who had no knowledge of any defect in the title of the vendor, or of facts sufficient to induce a reasonably prudent man to inquire into the status of the property. To disregard these circumstances simply on the basis of alleged continuous and adverse possession of Ric et.al., would not only be inimical to the rights of the aforementioned titleholders, but would ultimately wreak havoc on the validity of the Torrens system of registration. It will impair public confidence on the certificate of title. Hence Rice et al’s complaint for annulment of title should be dismissed (DBT Mar-Bay Construction vs. Panes et.al, G.R. 167232, July 31, 2009).
Note: Books containing compilation of my articles on Labor Law and Criminal Law (Vols. I and II) are now available. Call Tel. 7249445.
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E-mail at: jcson@pldtdsl.net