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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:
Before a claimant may bring an action against assurance funds, it is required that:
- the claimant must have sustained loss or damage or is deprived of land or interest therein.
- It must be caused by either the fraudulent registration of the land after its original registration, or an error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book.
- the claimant must not have been negligent. Otherwise, his or her claim shall be barred.
- the claimant must be barred by or is precluded by law from bringing an action to recover the land or estate.
- the claim must be brought within a period of 6 years from the time the right to bring such action first occurred.
(Spouses Jose Manuel et. al. v. Register of Deeds et.al, G.R. No. 224678, July 3, 2018)
The law says –
Section 93 of Presidential Decree No. 1529 provides that –
Upon the entry of a certificate of title in the name of the registered owner, and also upon the original registration on the certificate of title of a building or other improvements on the land covered by said certificate, as well as upon the entry of a certificate pursuant to any subsequent transfer of registered land, there shall be paid to the Register of Deeds one-fourth of one per cent of the assessed value of the real estate on the basis of the last assessment for taxation purposes, as contribution to the Assurance Fund. Where the land involved has not yet been assessed for taxation, its value for purposes of this decree shall be determined by the sworn declaration of two disinterested persons to the effect that the value fixed by them is to their knowledge, a fair valuation.
Nothing in this section shall in any way preclude the court from increasing the valuation of the property should it appear during the hearing that the value stated is too small.
Jurisprudence provides that:
The requisites before a claimant may bring an action against assurance funds are as follows:
First, the claimant must have sustained loss or damage or is deprived of land or any estate or interest therein.
Second, the loss, damage or deprivation must be caused by either the fraudulent registration of the land after its original registration, or an error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book. Furthermore, the loss, damage or deprivation must not be caused by breach of trust or by mistakes in the resurvey or subdivision of register land.
Third, the claimant must not have been negligent. Otherwise, his or her claim shall be barred.
Fourth, the claimant must be barred by or is precluded by law from bringing an action to recover the land or estate.
Fifth, the claim must be brought within a period of 6 years from the time the right to bring such action first occurred.
(Spouses Jose Manuel et. al. v. Register of Deeds et.al, G.R. No. 224678, July 3, 2018)
Read also: What is the Trust Fund Doctrine?
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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