Monday, October 14, 2013 in , ,

Outline notes in Land Titles and Deeds


A.     Classification of Lands

1.       According to the Constitution

                                i.      Lands of the Public domain

1.       Agricultural: may be further classified by law according to the uses to which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands.

2.       forest or timber (Applicable law: Revised Forestry code of 1975)

3.       mineral lands (Applicable law: Philippine Mining Act of 1995)

4.       national parks. (National Integrated Protection Areas Act of 1992)

                             ii.      Private lands

1.       Those who can own private lands: At least 60% of the capital of which is owned by Filipino Citizens (Sec. 7, Art. XII, 1987 Constitution).

2.       Restricted as to extent reasonably necessary to enable it to carry out purpose for which it was created

3.        If engaged in agriculture, it is restricted to 1,024 hectares

4.       Filipino citizens are entitled to acquire and own lands or real estate in the Philippines, whether private or public. This right is enshrined and guaranteed to citizens of the Philippines in the Philippine Constitution and other pertinent Philippine laws. (Article XII, National Economy and Patrimony).

5.       These also include those lands of the public domain which have been acquired from the government by purchase or grant by qualified Filipino individuals as well as those which have been in the possession of the occupant and his predecessors-in-interest  since time immemorial.  

6.       Private lands may be in the nature of

·         residential (lot, house & lot, condominium units, townhouses etc),

·         commercial (lots, office buildings, commercial spaces etc.)

·         industrial (warehouses, factories, plants, etc) and

·         agricultural lands (ricelands, farm lands or estates, forest farms, etc.)

                           iii.      Patrimonial property of the state

1.       Lease (cannot own land of the public domain) for 25 years renewable for another 25 years

2.       Limited to 1,000 hectares

3.       Applies to both Filipinos and foreign corporations

2.      Public Land Act

                                i.      Disposable lands

1.       Lands reclaimed by the Government by dredging, filling, or other means;

2.       Foreshore;

3.       Marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers;

4.       Lands not included in any of the foregoing classes.

                             ii.      lands of the public domain

1.       alienable or disposable lands - sub-classify ed according to the use or purposes to which such lands are destined as follows:

·         Agricultural;

·         Residential, commercial, industrial, or for similar productive purposes;

·         Educational, charitable, or other similar purposes;

·         Reservations for town sites and for public and quasipublic uses

(Disposable Lands)

2.      timber lands

3.      mineral land

·          If patent or title is issued – void ab initio for lack of jurisdiction

·         Not subject to acquisitive prescription; even if in possession for long time, will not ripen into ownership

·         Except: mineral lands and forest lands acquired before inauguration of Commonwealth in November 15, 1935; vested rights which are protected


 
B. Modes of Acquiring Title

a.      Requirement for prescription

a. Prescription, in general, is a mode of acquiring (or losing) ownership and real rights through lapse of time in the manner and under conditions laid down by law, namely, that the possession be in the concept of an owner, public, peaceful, uninterrupted, and adverse for a certain period of time may be converted into ownership of the land. Acquisitive prescription is either voluntary or extraordinary.  All things which are within the commerce of men are susceptible of prescription, unless otherwise provided. However, property of the State or any of its subdivisions not patrimonial in character shall not be the object of prescription.

·         Ordinary Prescription

For ordinary prescription, the following requisites must concur:

1.       Capacity to acquire by prescription;

2.       the object must be susceptible of prescription

3.       The possession must be in concept of owner, public, peaceful, continuous and uninterrupted

4.       The possession must be in good faith

5.       The possession must be by virtue of a just title;

6.       he period of possession must be 4 years if the object is movable or ten years if it is immovable.

·         Extraordinary acquisitive prescription

In extraordinary acquisitive prescription, the following must concur:

1. Capacity to acquire by prescription

2. The object must be susceptible of prescription

3. The possession must be in the concept of owner, public, peaceful, continuous, and uninterrupted; and

4. The period of possession must be 8 years if the object is movable or 30 years if it is immovable.

b.        Administrative methods

a.Homestead

                                                                                i.            A Homestead application should be filed at the Department of Energy and Natural Resources -Community Environment and Natural Resources Office where the land being applied for is located.

                                                                              ii.            Those who are qualified to apply for the patent should be :

·         a Filipino citizen and of legal age (18), most preferably the head of a family.

·         In addition, the applicant should not own more than 12 hectares of land or has not had the benefit of any gratuitous allotment of more than 12 hectares pursuant to the 1987 constitution.

·         must have resided continuously for at least 1 year in the municipality where the land is situated

·         must have cultivated at least 1/5 of the land applied for

                                                                            iii.            Legal Requirements

·         Application fee of P50.00;

·         Entry fee of P5.00;

·         Final fee of P5.00;

·         Approved plan and technical description of the land applied for;

·         Actual occupation and residence by the applicant

                                                                             iv.               Steps before a person is issue a homested application

·         Upon the filing of application, the government will conduct a preliminary investigation verifying the authenticity of the statements of the applicants. If the government, finds no fault then the application shall be approved. The applicant should then file for final proofs which consists of two parts

(1) notice of intention to make final proof which is posted for 30 days and

(2) testimony of the applicant corroborated by two witnesses mentioned in the notice.

·         The final proof in filed not earlier than one year after the approval of the application but within 5 years from the indicated date. After the submission of these papers, the government will conduct a confirmatory final investigation and then they will release an order of issuance of patent. The applicant will then wait for the preparation of patent using Judicial Form No. 67 and 67-D and the technical description duly inscribed at the back thereof. Lastly, is the transmittal of the Homestead patent to the Register of Deeds concerned.

                                                                               v.            Aim of Homestead

·         Benevolent intention of government to distribute disposable agricultural land to destitute citizens for their home and cultivation

·         As a matter of public policy, may be repurchased even if after 5 years provided not for profit

·         Right of repurchase not allowed if sold within family & not for cultivating or living but for speculation purpose

                                                                             vi.            Homestead Restrictions

·         Cannot be alienated within 5 years after approval of application for patents

·         Cannot be liable for satisfaction of debt within 5 years after approval of patent application

·         Subject to repurchase of heirs within 5 years after alienation when allowed already

·         No private corporation, partnership may lease land unless it is solely for commercial, industrial, educational, religious or  charitable purpose, or right of way (subject to consent of grantee and approval of S of Environment & Natural Resources)

·         Exceptions:

                                                                                                                                      i.      Action for partition because it is not a conveyance

                                                                                                                                    ii.      Alienations or encumbrances made in favor of the government

b. Sale Patent

                                                                                i.            To whom granted:  Citizens of the Philippines of lawful age or head of the family may purchase public agricultural land of not more than 12 hectares (

Requirements

a.        to have at least 1/5 of the land broken and cultivated within 5 years from the date of the award (public auction)

b.       shall have established actual occupancy, cultivation, and improvement of at least 1/5 of the land until the date of such final payment for agricultural Lands suitable for residential, commercial or industrial purposes, patent is issued only after:

                                                                                                                                      i.      full payment of purchase price, and

                                                                                                                                    ii.       completion of the construction of permanent improvements appropriate for purpose for which the land is purchased (must be completed within 18 months from date of award)

                                                                              ii.            Two whom granted: To any citizen of legal age for residential purposes (Sales patent without bidding)

Requirements

a.       does not own a home lot in the municipality in which he resides

b.      in good faith, established his residence on a parcel of land of public domain not needed for public service

c.       limitations: not more than 1000 sq. m.

d.      Residence requirement: occupant must have constructed his house on the land and actually resided therein (actual occupancy)

e.       no public auction required  not subject to any restriction against encumbrance or alienation

f.        age requirement: Over the age of 18 years (19 and above)

g.       land ownership requirements: Must be the owner of the lot

h.      Cultivation Requirements: residential land

c. Free Patent

                                                                                i.             Citizenship Requirement : Any natural-born citizen of the Philippines

                                                                              ii.            Land Ownership Requirement: Does not own more than 12hectares

                                                                            iii.            Requirement: At least for 30years prior to the effectivity of the amendatory Act, has continuously occupied and cultivated, either by himself or his predecessors-in-interest tract/s of agricultural public land subject of disposition for at least 30 years prior to March 28,1990, who shall have paid the real taxes thereon while the same has not been occupied by any person Note: Under the amendatory Act, the period for the filing of applications for free patents ends on Dec.31,2000

                                                                             iv.            grant will be limited to 12 hectares only

                                                                               v.            Limitations:  Does not own more than 12hectares of land

c.       Carp

a.       Private agricultural lands covered by CARP are acquired through any of the following modes:

                                                                                      i.            Compulsory Acquisition (CA);

·   whereby the land is expropriated by the State (Section 16 of RA 6657)

·   done through the mandate of the law whether or not the landowner disagrees to part with his property.

·   follows the schedule of CARP implementation based on the area of the landowner's landholdings. In contrast VOS may be done even for lands not yet scheduled by law to be acquired.

·   lands covered by compulsory acquisition:

1.       Except in the case of tenanted rice and corn lands under PD 27, which are acquired following a different set of rules, compulsory acquisition (CA) is done for all private agricultural lands which become due for coverage following the phasing of implementation earlier discussed. However, CA is suspended in those cases where the landowners opt for other modes of compliance, e.g., voluntary land transfer or stock distribution option. CA is resumed once the negotiations in these other modes fail.

2.       Compulsory acquisition is also done in idle and abandoned lands regardless of their size and phasing, and in lands whose commercial farm deferment is revoked.

                                                                                   ii.            Voluntary Offer to Sell (VOS);

·         VOS is a scheme wherein landowners come forward and voluntarily offer their agricultural lands for coverage regardless of the phasing. The DAR encourages this mode because VOS generally ensures the cooperation of the landowners.

·         Application for VOS can be filed either at the Central Office, or at any field office of DAR. However, the receiving office should forward the application to the MARO of the municipality where the land is located.

·         Incentives given to landowners who offer their lands under VOS: The cash portion of the compensation to the landowner is increased by five percent (5%), while the LBP bond portion is correspondingly decreased by five percent. However, this incentive is not available to banks and other financial institutions. It should be noted that the total compensation is not increased, only the proportion of the cash component.

                                                                             ii.            Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS);

·         scheme whereby the landowners voluntarily offer their agricultural lands for coverage regardless of phasing

·         VLT/DPS, on the other hand, is a voluntary arrangement entered into by a landowner and a qualified farmer-beneficiary to directly transfer the land to the beneficiary under terms and conditions mutually agreed by them but with payment terms not less favorable to the farmer than if it were the government purchasing the land and transferring it to the beneficiary.

·         VLT/DPS is a scheme wherein a landowner of an agricultural land covered by CARP and the qualified beneficiaries of such land agree to the direct transfer of the ownership of the land, as provided for under Sections 20 and 21 of RA 6657. The area to be transferred should not, however, be less than the area which the government through compulsory acquisition would otherwise acquire. Administrative Order No. 13, Series of 1991, embodies the rules and procedures governing VLT/DPS.

·         Basic Requirement in VLT/DPS:

                                                                                                                                      i.      ARBs must give their informed consent to the landowner's VLT/DPS proposal. Specifically, this means that the ARBs should be made aware of their rights and options under the law, particularly, the terms and conditions of land transfer under the "regular" compulsory acquisition mode.

                                                                                                                                    ii.      Among others, the field implementor (Municipal Agrarian Reform Officer or Agrarian Reform Program Technologist — MARO or SARPT/ARPT) must explain to the ARBs: (1) that the land will sooner or later be acquired under CA subject to the phasing; and (2) about how much they will have to pay under the CA mode.

                                                                                                                                  iii.      VLT/DPS is a scheme favorable to the Government for two reasons.

                                                                                                                                                        i.            First, Government does not have to pay for the land. Second, the agreement between the two parties facilitates land acquisition and distribution. The DAR, however, ought to ensure that the beneficiaries know what they are entering into and that terms and conditions of the VLT/DPS are not disadvantageous to the ARBs.

                                                                                                                                   iv.      Who are the qualified beneficiaries under VLT/DPS? The qualified beneficiaries are the same as those who would be beneficiaries if the land were to be covered under compulsory acquisition or voluntary offer to sell. (See Sec. 22, RA 6657).

                                                                                                                                     v.      Prescribed period for the completion of VLT/DPS negotiations? Negotiations for VLT/DPS between the landowner and the beneficiaries must be completed and the agreement arrived at must be submitted within one (1) year from the time the DAR receives the notice of application for VLT/DPS.

                                                                                                                                   vi.      If VLT/DPS negotiations remain unresolved after one year, the land shall be covered under compulsory acquisition.

                                                                                                                                 vii.      The transfer of possession and ownership should be done immediately after the submitted VLT/DPS agreement is approved by the DAR. Certificates of Land Ownership Award (CLOA) with the proper annotations to protect the landowner shall be issued to the beneficiaries.

                                                                           iii.            Operation Land Transfer (OLT) under PD 27 and EO 228; and

·         OLT is governed by PD 27 and EO 228 and has been in operation since 1972. It follows a different set of procedures, particularly in land valuation.

·         done through the mandate of the law whether or not the landowner disagrees to part with his property.

·         The requisites for coverage under the Operation Land Transfer  program are the following—

                                                                                                                                      i.      The land must be devoted to rice or corn crops

                                                                                                                                    ii.      There must be a system of share-crop or lease-tenancy
obtaining therein

·          If either is absent, the landowner may apply for exemption

·          PD27 grants each tenant of covered lands a 5 hectare lot, or in case the lot is irrigated, 3 hectares constituting the family size farm. However, said law allows a covered landowner to retain not more than 7 hectares of his land if his aggregate landholding doesn’t exceed 24 hectares

·         Consequently, a landowner may keep his whole covered land if its aggregate size doesn’t exceed the retention limit of 7 hectares

·          An application for exemption is different from that of retention. They are distinct remedies and thus, judgment in one doesn’t preclude the subsequent institution of the other

                                                                                                                             i.      The right to retention is a constitutionally guaranteed right which is subject to the qualifications by the legislature

                                                                                                                           ii.       Landowners who haven’t exercised their retention rights under PD27 may exercise their retention rights under RA 6657

                                                                                                                         iii.      The right to retention may be exercised over tenanted land despite the issuance of the certificate of land transfer to farmerbeneficiaries. What must be protected, however, is the right of the tenants to opt to stay on the land chosen to be retained by the landowner or be a beneficiary in another agricultural land with similar or comparable features

                                                                                                                          iv.       Land awards made pursuant to a government’s agrarian reform program are subject to the exercise of the landowner who is qualified to the right of retention

                                                                                                                            v.      The issuance of emancipation patents or certificates of land transfers doesn’t absolutely bar the landowner from retaining the area covered thereby

                                                                            iv.            Executive Order No. 407, as amended by EO 448 and EO 506

·         as amended pertains only to government agencies as landowners in a propriety capacity, or to public A & D lands under their administration by virtue of presidential proclamation.

·         directs all government instrumentalities, including government financial institutions (GFIs) and government-owned or controlled corporations (GOCCs) to immediately transfer to DAR all their landholdings suitable for agriculture for immediate distribution to qualified beneficiaries under CARP.

·         is a concrete act of the Government to divest itself of its agricultural landholdings as an example for private landowners to follow. Moreover, inasmuch as the landowners involved are also Government agencies, EO 407 has facilitated the acquisition by the DAR of thousands of hectares of agricultural lands for distribution under CARP.

·         EO 407 covers the following:

                                                                                                                    i.      all agricultural lands owned or controlled by government departments, agencies or instrumentalities, including lands foreclosed by government financing institutions;

                                                                                                                  ii.      lands covered by cancelled or expired Timber License Agreements (TLAs) and Pasture Lease Agreements (PLAs) for redistribution by the DENR, in coordination with the DAR, to qualified ARBs identified by the DAR; and

                                                                                                                iii.      lands covered by cancelled or expired Fishpond Lease Agreements (FLAs) for redistribution by the Department of Agriculture, in coordination with the DAR to qualified ARBs identified by the DAR.

                                                                                                                 iv.      EO 448 included within the coverage of EO 407 all reservations or portions thereof, which are suitable for agriculture and are no longer needed for the purpose for which they were established.

                                                                                                                   v.      EO 506, however, further amended EO 407 to exclude: all existing and proposed national parks, game refuge, bird sanctuaries wildlife reserves, wilderness areas and other protected areas, including old growth or virgin forests and all forests above 1,000 meters elevation or above 50 percent slope until such time that they are segregated for agricultural purposes or retained under the National Integrated Protected Areas System (NIPAS) of DENR.

d.      Judicial Confirmation of Imperfect Title

a.Nature

                                                                                i.            In rem, judicial proceedings

                                                                              ii.            The decree of registration issued is conclusive and final

                                                                            iii.            Governed by court procedure and law of evidence

                                                                             iv.            Application/when:Extended up to December 31, 2020, as provided in Sec. 2 of RA 9176

b.  LIMITATION TO AREA APPLIED FOR: Maximum of 12 hectares (Sec. 3, RA 6940)

a.       Applicants:

                                                                                i.            Filipino citizens who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of public domain under a bona fide claim of acquisition since June 12, 1945 or prior thereto or since time immemorial (CA No. 141  Section 48, as amended by PD No. 1073, Sec. 4).

                                                                              ii.            Filipino citizens who by themselves or their predecessors-in-interest have been, prior to the effectivity of PD 1073 on January 25, 1977, in open, continuous, exclusive and notorious possession and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition of ownership, for at least 30 years, or at least since January 24, 1947 (RA No. 1942).

                                                                            iii.            Private corporations or associations which had acquired lands from Filipino citizens who had possessed the same in the manner and for the length of time indicated in paragraphs 1 and 2 above

                                                                             iv.            Natural-born citizens of the Philippines who have lost their citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of private land up to a maximum area of 5,000 sq,m, in case of urban land or 3 hectares in case of rural land to be used by him for business or other purposes. (Section 5, RA No. 8179)

NOTE: When the conditions set by law are complied with, the possessor of the land, by operation of law, acquires a right to a grant, a government grant, without the necessity of a certificate of the title being issued. The law, as presently phrased, requires that possession of lands of the public domain must be from June 12, 1945 or earlier, for the same to be acquired through judicial confirmation of imperfect title. (Republic vs Doldol. 295 SCRA 359)

b.        Applicant Must Prove:

                                                                                i.            That the land is alienable and disposable land of public domain; and

                                                                              ii.            That they have been in open, continuous, exclusive, and notorious possession and occupation of the land for the length of time and in  the manner and concept provided by law.

                                                                            iii.            Extended period for filing of application: Section 1, RA No. 9176 provides in part that “The time to be fixed in the entire archipelago for the filing of applications under this chapter shall not extend beyond 31 December 2020. Provided that the area applied for does not exceed twelve (12) hectares.”

                                                                             iv.             Section 3 of RA No. 7196 provides that “All pending applications filed before the effectivity of this amendatory act shall be treated as having been filed in accordance with the provisions of this Act.”



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