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What contracts may be the proper subject of adverse claim?

Photo from Unsplash | Scott Graham

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.


AT A GLANCE:

The prevailing rule is that voluntary instruments such as contracts of sale, contracts to sell, and conditional sales may be registered for annotation by presenting the owner’s duplicate copy of the title. The exception to this rule is when the registered owner refuses or fails to surrender his duplicate copy of the title,in which case the claimant may file with the Register of Deeds a statement setting forth his adverse claim. ||(Logarta v. Mangahis, G.R. No. 213568, [July 5, 2016], 789 PHIL 244-260)


An adverse claim is a type of involuntary dealing designed to protect the interest of a person over a piece of real property by apprising third persons that there is a controversy over the ownership of the land. It seeks to preserve and protect the right of the adverse claimant during the pendency of the controversy, where registration of such interest or right is not otherwise provided for by the Property Registration Decree. An adverse claim serves as a notice to third persons that any transaction regarding the disputed land is subject to the outcome of the dispute. Section 70 of PD 1529 states:

 

Section 70. Adverse claim. — Whoever claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, may, if no other provision is made in this Decree for registering the same,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.

 

The statement shall be signed and sworn to, and shall state the adverse claimant’s residence, and a place at which all notices may be served upon him. This statement shall be entitled to registration as an adverse claim on the certificate of title. The adverse claim shall be effective for a period of thirty days from the date of registration. After the lapse of said period, the annotation of adverse claim may be cancelled upon filing of a verified petition therefor by the party in interest: Provided, however, that after cancellation, no second adverse claim based on the same ground shall be registered by the same claimant.

 

Before the lapse of thirty days aforesaid, any party in interest may file a petition in the Court of First Instance where the land is situated for the cancellation of the adverse claim, and the court shall grant a speedy hearing upon the question of the validity of such adverse claim, and shall render judgment as may be just and equitable. If the adverse claim is adjudged to be invalid, the registration thereof shall be ordered cancelled. If, in any case, the court, after notice and hearing, shall find that the adverse claim thus registered was frivolous, it may fine the claimant in an amount not less than one thousand pesos nor more than five thousand pesos, in his discretion. Before the lapse of thirty days, the claimant may withdraw his adverse claim by filing with the Register of Deeds a sworn petition to that effect. (Emphases supplied)

 

Thus, before a notice of adverse claim is registered, it must be shown that there is no other provision in law for the registration of the claimant’s alleged right in the property.

|||(Logarta v. Mangahis, G.R. No. 213568, [July 5, 2016], 789 PHIL 244-260)

 

The prevailing rule is that voluntary instruments such as contracts of sale, contracts to sell, and conditional sales are registered by presenting the owner’s duplicate copy of the title for annotation, pursuant to Sections 51 to 53 of PD 1529. The reason for requiring the production of the owner’s duplicate certificate in the registration of a voluntary instrument is that, being a willful act of the registered owner, it is to be presumed that he is interested in registering the instrument and would willingly surrender, present or produce his duplicate certificate of title to the Register of Deeds in order to accomplish such registration. The exception to this rule is when the registered owner refuses or fails to surrender his duplicate copy of the title,in which case the claimant may file with the Register of Deeds a statement setting forth his adverse claim.||| (Logarta v. Mangahis, G.R. No. 213568, [July 5, 2016], 789 PHIL 244-260)

Read also: Why should you annotate your adverse claim on land?

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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