When you buy a property, the first step is to get the Certified True Copy of the property title from the nearest Registry of Deeds. This is to verify the authenticity of the title, the registered owner, the technical description of the property and to ensure that the property is clean, meaning it has no liens, not mortgaged, and no adverse claimant. The Certified True Copy of the property title is your first defense against fraud.
In this blog, let us discuss the duty of the buyer to conduct due diligence, the Torrens Title and the importance of land registration, the role of Land Registration Authority and its Registry Office (Registry of Deeds), and the use of the Certified True Copy of the property title. We also provide the steps in getting the Certified True Copy. If you have some questions/inquiries about buying a property in Cebu, please contact 0908-301-7398 for free assistance.
I. BUYER’S DUTY TO CONDUCT DUE DILIGENCE
As a general rule in real property transactions, you as the property buyer have the duty to conduct due diligence (“caveat emptor” or “let the buyer beware”) or to do your homework in verifying the authenticity of the land title, the registered owner of the property, the technical description of the property and its actual existence, and alike.
However, the seller has an obligation to disclose latent defects that make a property unfit for its intended use such as the property is located in a flood prone area or the house has no building permit and therefore, the house might have structural integrity issues.
You must do due diligence to protect your hard earned money, secure the sale with the notarized deed of absolute sale or any instrument of conveyance, and register/transfer the title under your name as soon as possible. Only when you registered the property in your name in the Registry of Deeds that you have peace of mind that you are the rightful owner now.
Reminder: After you pay for the property and execute the Deed of Absolute Sale (DOAS) or any instrument of conveyance, take note of the following schedule:
1. For Capital Gains Tax - 30 days after the execution of the DOAS.
2. For Documentary Stamp Tax - 5th day of the next month after the execution of the DOAS.
3. For Transfer Tax - 60 days after the execution of the DOAS.
II. THE TORRENS TITLE AND THE IMPORTANCE OF LAND REGISTRATION
In Abobon vs Abobon (GR 155830, Aug. 15, 2012), the Supreme Court said that "a certificate of title serves as evidence of an indefeasible and incontrovertible title to the property in favor of the person whose name appears therein. The real purpose of the Torrens system of land registration is to quiet title to land and put a stop forever to any question as to the legality of the title. . . anyone who deals with property registered under the Torrens system may rely on the title and need not go beyond the title.”
In Heirs of Leopoldo Vencilao Sr. vs Court of Appeals, et al. (GR 123713, April 1, 1998), the Supreme Court said “a title, once registered, cannot be defeated even by adverse, open and notorious possession. The certificate of title issued is an absolute and indefeasible evidence of ownership of the property in favor of the person whose name appears therein. It is binding and conclusive upon the whole world. All persons must take notice and no one can plead ignorance of the registration.”
The Torrens Title is a system adopted by the state in land registration and transfer of land ownership. Under the Torrens system, the state creates and maintains a register of land holdings by issuance of Original Certificate of Land Title (Original registration or the first registration of the land) to the property owner who first registered the land.
The Original Certificate of Title is entered in the Registry of Property and a duplicate owner’s copy is issued to the owner by the Register of Deeds.
In the subsequent registration, the Original Certificate of Title is cancelled and subsequently registered under a Transfer Certificate of Title in favor of the new owner in cases of land conveyance such as sale, donation or assignment. Thus, in most cases, when you buy a property, the owner will show you the Owner’s Duplicate Copy of the Transfer Certificate of Title (TCT).
III. LAND REGISTRATION AUTHORITY AND REGISTRY OF DEEDS
The Land Registration Authority (LRA) is the mandated agency to implement the Torrens system of land titling and registration in the Philippines.
“The LRA exists for the sole purpose of implementing and protecting the Torrens system of land titling and registration, as well as registration of transactions involving personal properties.”
“Through its Registry Offices, it constitutes as the central repository of all land records involving registered or titled lands as well as registered transactions involving unregistered or untitled lands.”
IV. THE USE OF THE CERTIFIED TRUE COPY OF THE LAND TITLE
The most basic question a property buyer must ask is “Who is the registered owner of the property?”. Always deal with the registered owner of the property or his/her Attorney-in-fact as evidenced of the duly notarized Special Power of Attorney (SPA). If the registered owner is residing in the Philippines, find a way to meet the owner and ask for proper identification (e.g. valid IDs).
The best evidence of proof of ownership is the Transfer Certificate of Title which is kept in the Registry of Deeds (including history of transactions) where the property is located. The RD provides the registered owner the "Owner’s Duplicate Copy". To verify the registered owner of the property, you as the property buyer must ask for the Certified True Copy of the property title from the Registry of Deeds of the Land Registration Authority. Don’t rely on the seller’s copy of Certified True Copy of the property title, even if it just taken recently (e.g. a week ago). It is best that you do it yourself. You can get a Certified True Copy of the property for less than P300.00 from the nearest Registry of Deeds.
There are many ways to determine property ownership (proof, evidence, or muniment of ownership) such as tax declaration, realty tax receipts, deed of sale, and Torrens Certificate of Title. The Torrens Title is the best evidence because it is guaranteed to be indefeasible, unassailable, imprescriptible, and binding against the whole world. The title once registered cannot be impugned, altered, changed, modified, enlarged, or diminished except in some direct proceeding permitted by law. Thus, the importance of registering the land title after the full payment of the property and the execution of the notarized Deed of Absolute Sale. (I will discuss this in a separate blog.)
(1) Compare it with the Owner’s Duplicate Copy of the Transfer Certificate of Title. Both documents must be identical.
(2) Check the registered name of the property owner.
(3) Check the technical description on the Transfer Certificate of Title.
(4) Check if the property is clean and has no liens, existing mortgage, property ownership claims, or restrictions. Mortgaged property has annotation at the back of the title. If the property has adverse claimant, the same must be annotated in the land title.
Notes on Adverse Claim on the Property
In the case of Equatorial Realty Development Inc. vs. Frogozo (G.R. No. 128563, March 25, 2004), the Supreme Court discussed the adverse claimant issue: “The annotation of an adverse claim is a measure designed to protect the interest of a person over a piece of real property where the registration of such interest or right is not otherwise provided for by the Land Registration Act or Act 496 (now Presidential Decree 1529 or the Property Registration Decree), and serves as a warning to third parties dealing with said property that someone is claiming an interest on the same or a better right than the registered owner thereof.”
“An adverse claim is a statement made under oath by someone who claims any part or interest in a registered piece of land adverse to the registered owner and serves as a notice to all of such a claim,” PAO Chief Atty. Persida Acosta explained. “Under the law, an adverse claim shall be effective for a period of thirty (30) days from the date of registration. It does not follow, however, that after the lapse of the period, the same has no force and effect. The adverse claim shall remain annotated and continue to be a lien on the property, until the same is canceled through a verified petition in court. This is according to Section 70 of Presidential Decree (PD) 1529.”
V. STEPS IN GETTING THE CERTIFIED TRUE COPY OF THE LAND TITLE
The Land Registration Authority (LRA) is offering land title holders a chance to have their titles converted electronically into eTitles through its Land Titling Computerization Project (LTCP). This makes the land titling and registration, under the Torrens system, more efficient, reliable and expeditious.
Moreover, through the A2A - ANYWHERE-TO-ANYWHERE program, you can now get a Certified True Copy of the property title from the nearest Computerized Registry of Deeds near you. You don't need to travel to the city/municipality where the property is located. You save time and money from traveling cost. Here are 3 basic steps to get a Certified True Copy of the property.
Step 1: GO TO THE NEAREST REGISTRY OF DEEDS.
REQUIREMENTS:
1. Information Request Form
2. Photocopy of Land Title
3. Identification Card
FEES:
1. For the two (2) pages, pay Php 196.97
2. Per additional page, pay Php 38.19
Step 2: APPROACH THE REGISTRATION INFORMATION OFFICER
1. Fill in the needed information (red checks below) in the INFORMATION REQUEST FORM. (Notes: You can get a copy of Information Request Form from the Form Rack. The EPEB No is useful in online verification of the status of your request.)
2. Submit the Information Request Form to the Registration Information Officer who will issue the Assessment Form and Payment Order.
3. Proceed to the Cashier for payment.
Step 3: CLAIM THE CERTIFIED TRUE COPY FROM THE RELEASING CLERK
Go directly to the Releasing Clerk for the release of the Certified True Copy of the property title. If you are not given a claim stub, use your Official Receipt to claim.
The process involves:
1. Approval of the Request by the Record Officer
2. Printing of the Certified True Copy by the Printing Clerk
3. Release of the Certified True Copy by the Releasing Clerk
Cebu House Finder is a real estate professional and currently connected with Bachelors Realty and Brokerage, Inc. If you are planning to buy a house or condo unit in Cebu and anywhere in the Visayas and Mindanao, you may contact him at 0908-301-7398 for free assistance.
Download Information Request Form