CIVIL LAW > XIII. LAND TITLES AND DEEDS > G. Dealings with Unregistered Lands
In the Philippine legal system, the rules governing dealings with unregistered lands are primarily derived from the Civil Code, Property Registration Decree (P.D. No. 1529), jurisprudence, and special laws. Unregistered lands refer to lands not covered by the Torrens system of land registration, meaning they are not included in the registry of titles maintained under P.D. No. 1529.
The following are the legal doctrines, principles, and statutory provisions governing dealings with unregistered lands:
I. Nature and Status of Unregistered Lands
- Definition: Lands not registered under the Torrens system remain governed by the rules on ordinary or extrajudicial forms of conveyance. Ownership of unregistered land may still be validly held and transferred despite the absence of a certificate of title.
- Legal Presumption: Possession of unregistered land, especially for an extended period, raises a presumption of ownership in favor of the possessor.
- Relevance of Tax Declarations: While not conclusive proof of ownership, tax declarations and payments on unregistered lands are indicia of possession and may support claims of ownership.
II. Transactions Involving Unregistered Lands
Dealings with unregistered lands are not governed by the formalities required by P.D. No. 1529 for registered lands but follow general rules under the Civil Code and related laws.
A. Sale of Unregistered Lands
- Applicability of the Statute of Frauds:
- Contracts for the sale of land must generally be in writing to be enforceable.
- A valid sale of unregistered land must comply with the form prescribed under Article 1356 of the Civil Code.
- No Double Sale Rule:
- In cases of double sales involving unregistered lands, Article 1544 of the Civil Code applies, prioritizing:
- The first buyer to take possession in good faith.
- The first buyer with an earlier notarized document of sale.
- In cases of double sales involving unregistered lands, Article 1544 of the Civil Code applies, prioritizing:
- Importance of Public Instrument:
- While not required for validity, notarization converts a private document into a public instrument, giving it evidentiary weight.
B. Lease, Mortgage, or Other Contracts
- Lease: Leases over unregistered lands are valid and enforceable but are subject to recording requirements for notice to third parties.
- Mortgage:
- Unregistered land may be mortgaged through a chattel mortgage or a real estate mortgage.
- The mortgage must be registered in the Registry of Deeds under Act No. 3344, which governs the registration of dealings with unregistered lands.
- Usufruct, Easements, and Other Real Rights:
- These real rights may also be created over unregistered lands but must be supported by appropriate public or private instruments to establish enforceability.
C. Recording in the Registry of Deeds
- Act No. 3344 (Recording Law):
- Provides for the registration of instruments affecting unregistered lands.
- Registration under Act No. 3344 does not confer title but serves as notice to third parties of the existence of the transaction.
- Instruments such as deeds of sale, mortgages, leases, and powers of attorney involving unregistered land may be recorded under this law.
- Effect of Non-Recording:
- Failure to record an instrument does not affect its validity between the parties but renders it ineffective against third parties without notice.
III. Acquisition of Ownership
Ownership of unregistered land may be acquired through:
- Modes of Ownership:
- Sale
- Donation
- Succession
- Prescription
- Prescription:
- Unregistered lands may be acquired by acquisitive prescription, subject to the periods established under Articles 1134–1137 of the Civil Code (e.g., 30 years for extraordinary prescription).
- Actual, open, continuous, exclusive, and notorious possession is required.
IV. Special Considerations in Unregistered Lands
- Homestead and Free Patent Lands:
- Unregistered lands may still be alienable under laws such as the Public Land Act (C.A. No. 141).
- Transactions involving such lands are governed by both public land laws and the Civil Code.
- Indigenous Peoples’ Rights Act (IPRA):
- Lands possessed and occupied by indigenous peoples may be considered ancestral domains or ancestral lands, even if unregistered.
- Dealings with such lands must comply with IPRA provisions to avoid nullity.
V. Jurisprudential Doctrines
- Good Faith in Possession:
- A possessor in good faith of unregistered land is entitled to reimbursement for necessary and useful expenses.
- No Title by Laches:
- The rule of laches does not apply if there is a legal impediment to registration or acquisition of the land.
- Effect of Tax Declarations:
- Tax declarations are strong evidence of possession but are not conclusive proof of ownership.
VI. Legal Remedies
- Judicial Confirmation of Title:
- A person claiming ownership of unregistered land may file for judicial confirmation under P.D. No. 1529, provided the land is alienable and disposable.
- Ejectment Cases:
- Possessory disputes over unregistered lands may be resolved through unlawful detainer or forcible entry cases.
- Quieting of Title:
- This remedy may be pursued to remove clouds or doubts over ownership of unregistered land.
Conclusion
Dealings with unregistered lands are recognized in Philippine law, although the absence of a Torrens title necessitates stricter adherence to documentary requirements and evidentiary rules. Act No. 3344 serves as the primary legal framework for recording transactions involving unregistered lands, ensuring notice to third parties. Ultimately, the principles of equity, good faith, and diligent observance of formalities govern these transactions.