Dear PAO,

I bought a 500-square-meter lot in Bulacan for P500,000. The seller and I executed a deed of conditional sale, and we agreed that once I paid the full purchase price, he would surrender the Transfer Certificate of Title (TCT) of the land so that I could register it with the Register of Deeds. However, despite full payment, the seller refused to surrender the TCT. Because of this, I do not know how I could annotate the said sale of land on the seller’s title. I want to know what my other remedy is in order to annotate the sale on the title of the said land.

Bianca

Dear Bianca,

In the case of Philippine Charity Sweepstakes Office v. New Dagupan Metro Gas Corporation, GR 173171, July 11, 2012, the Supreme Court, through Associate Justice Bienvenido Reyes, ruled that:

” x x x That if the claimant’s interest is based on a perfected contract of sale or any voluntary instrument executed by the registered owner of the land, the procedure that should be followed is that prescribed under Section 51 in relation to Section 52 of P.D. No. 1529. Specifically, the owner’s duplicate certificate must be presented to the Register of Deeds for the inscription of the corresponding memorandum thereon and in the entry day book. It is only when the owner refuses or fails to surrender the duplicate certificate for annotation that a statement setting forth an adverse claim may be filed with the Register of Deeds. x x x” (Emphasis supplied)

As a general rule, in order for the buyer to register the sale of land with the Register of Deeds, the owner’s duplicate certificate of title must be presented with the deed of absolute or conditional sale. This requirement of surrendering the owner’s duplicate certificate of title is because the transaction of sale is considered as a voluntary dealing on the part of the seller and thus, there would be no problem for the seller to surrender his duplicate certificate of title after the payment of the purchase price.

However, by way of exception, if the seller of the lot, even after the payment of purchase price, refuses to surrender the certificate of title, the remedy of the buyer is to file an adverse claim based on Section 70 of Presidential Decree 1529 or the Property Registration Decree. An adverse claim would protect the right of the claimant over the real property because it would constitute as a constructive notice to third persons that there is controversy over the ownership of the land and any transaction regarding the disputed land is subject to the outcome of the dispute.

It should be noted, however, that this remedy of filing an adverse claim, if the interest of the claimant is based on voluntary dealings, such as sale, is available only in exceptional circumstance — when the seller refuses to surrender his or her duplicate title.

In your case, because the seller of the property refused to surrender the owner’s duplicate certificate of title, you may file a sworn statement setting forth your alleged right or interest, how and under whom acquired, and with reference to the number of the certificate of title of the registered owner, the name of the registered owner, and the description of the land in which the right or interest is claimed, with the Register of Deeds where the land is located (Section 70, Presidential Decree 1529). This would serve as an adverse claim in the subject property.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]