Advancing Philippine Competitiveness (COMPETE) Project

Introduction to Land Titling

Atty. Erwin L. Tiamson Component 3 - Access to Credit

Basic Principles• There are two basic principle that underpin land

ownership in the Philippines. ✓Regalian Doctrine - all lands belong to the State

and only by a grant from the State can land pass into private ownership.

✓Right to private ownership - The right is protected under the Constitution and under the law that gives land owners absolute control and exclusive rights on the basis of legal, state-conferred ownership, subject only to certain limitation on police power (land use and environmental protection) and eminent domain.

Public Domain & Private Domain Lands

• Public Domain Lands - are those lands that are owned by the State. ✓ All forest and mineral lands and national parks. ✓ All lands that are intended for public use and for

some public purpose, i.e roads, bridges, parks, camps, schools.

✓ Patrimonial Properties - public domain lands that are not intended for public use or purpose.

• Private Domain lands - Lands disposed by the State for private ownership. It is limited to agricultural lands under the Constitution.

Sources of Private Land Titles - Direct Grants

• Direct Grants - are public land grants from Alienable and Disposable Agricultural Lands of the Public Domain in favor of qualified citizens subject to Constitutional limitation (12 hectares).

• Public Land Application/Land Patents ✓Free Patent - issued to occupants and cultivator of

agricultural land; recently includes residential land under RA No. 10023 (2010)

✓Homestead Patent- issued to those who are willing to cultivate and settle to frontier lands

✓Sales Patents - Agricultural, Residential, Commercial and Industrial lands

Sources of Private Land Titles - Direct Grants

• The DENR has exclusive jurisdiction to dispose public lands subject (Quasi-Judicial); DENR has authority to determine conflicting claims of applicants and occupants subject to judicial review only in cases of fraud, imposition or mistake.

• DENR provides for the rules and regulations including the procedures for the processing of public land applications.

Sources of Private Land Titles - Direct Grants

• Authority to Sign Patents - Chief Executive; under E.O. No. 192 (1987) the Secretary DENR was given a general mandate to implement public land laws, with powers to delegate includes the power to sign patents and to delegate the same to such officers as he may deem fit. 5 hectares (PENRO), more than 5 but not exceeding 10 (RED), in excess of 10 (Secretary); Under RA No. 10023 the PENRO is authorize by Congress to sign patents.

Sources of Private Land Titles - Direct Grants

• Survey of the Land (Check A and D; Check if Titled; Check other claims); if land is already surveyed; check survey record DENR

• Filing of Application (CENRO) ✓ Examination of the Applicant for Personal

Qualification to own public land (Check nationality; check total landholding public grant)

✓ Examination and Inspection of the Land - Check land allocation record book; Check use and purpose; agricultural, residential, etc. (land patents)

✓ Prepare Inspection report - Public Land Inspector; approval of Land Management Officer;

Sources of Private Land Titles - Direct Grants

• Approval of application - (CENRO Approves application • If FP Patent is prepared at the CENRO for signing

of the PENRO • If Homestead - entry permit

• Final Proof (Cultivation 1/5 in 1-5 years/1 year residency)

• Re-investigation and preparation of Re-investigation report, (Cultivation, residency, etc)

• Patent is prepared and transmitted to PENRO for approval and signing

Sources of Private Land Titles - Direct Grants

• If Sales - appraisal and bidding ✓Payment ✓ Investigation report (Improvements,

cultivation, full-payment, etc) • Patent is prepared and transmitted to

PENRO for approval and signing • Approval and signing of Patents • Transmission to the Register of Deeds

(See Section 103, PD No. 1529)

Number of Patents issued under RA No. 10023

Residential Free Patents Issued 2011-2013

No

. o

f R

esi

den

tial Fr

ee P

ate

nts

Iss

ued

0

15,000

30,000

45,000

60,000

Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sources of Original Titles - Indirect Grants

• Land titles that were acquired by “Operation of Law”

• Lands covered by Sec. 14 of PD No. 1529 ✓Lands under open, continuous, exclusive

and notorious possession and occupation of “alienable and disposable lands” of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.

✓Lands acquired lands by prescription ✓Lands acquired by right of accession

Sources of Original Titles - Indirect Grants

• Land titles that were acquired by “Operation of Law”

• When the conditions set by law are complied with, the possessor of the land, by operation of law, acquires a right to a grant without the necessity of a certificate of title being issued

• Registration merely confirms the title of the applicant

• The land ceases to be a part of the public domain and goes beyond the authority of the DENR to dispose

Sources of Original Titles - Indirect Grants

• Lands covered by Sec. 14 of PD No. 1529 ✓Lands under open, continuous,

exclusive and notorious possession and occupation of “alienable and disposable lands” of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.

✓Lands acquired lands by prescription ✓Lands acquired by right of accession

Sources of Original Titles - Indirect Grants

• Procedure is provided under PD No. 1529, voluntary registration (See Section 14 to 30 PD No. 1529); in brief

• Filing of the application (Regional Trial Court, BP No. 129) • Order setting the date and hour of the Initial hearing

• Publication; • Mailing; and • Posting.

• Filing of Opposition • Hearing/Default • Judgement/If there is confirmation, transmittal of the

judgement to LRA for the issuance of Decree • LRA issues Decree of registration and transmit to the Register

of Deeds • Register of Deeds registers the decree

0

300

600

900

1200

2009 2010 2011 2012 2013

Number of Decrees Issued 2009-2013

0

15000

30000

45000

60000

2010 2011 2012 2013

Decrees RFP Patents

Decree vs. RFP (2009-2013)

Two System of Land Registration

•Registration of Dealings in Unregistered Lands ✓Deed Recording System ✓Dealings on lands that has not been

formally confirmed by the State as private lands

Two System of Land Registration

•Registration of lands under the Torrens System ✓Title Recording System ✓Dealings on lands that has been formally

“adjudicated” by the State as private lands - Adjudication judicial if “by operation of

law” and administrative if from public land grant

- Transfers of subsequent titles by public instruments only

19

YEAR 2009 2010 2011 2012 2013/Sept

Issuance of new TCT

635,008 635,003 638,171 657,232 435,020

Registration of Deeds

2,668,980 2,690,000 2,702,481 3,427,516 1,931,807

Issuance of TCT vs. Reg. of Instruments (2009-2013)

20

2009

2010

2011

2012

2013/Sept

0 1250000 2500000 3750000 5000000

TCT Registration of Deeds

Issuance of TCT vs. Reg. of Instruments (2009-2013)

Government Agencies Engaged in Land Titling

2

LAND AGENCIES MANDATES DENR LRA-RD LGU NCIP RECORDS GENERATED

Original Survey; Subdivision & Consolidation

X X X X Survey Data, Maps and Plans, Narrative Descriptions,

Land Classification/Use X (X) (X) LC Maps, Land Use Maps, IP Maps

Titling X X X PLAs, Expedientes, Patents, Certificate of Titles, etc.

Registration X Certificate of Titles, Primary Entry Books

Cadastre X (X) X Cadastral Maps, Tax Maps, LRA Projection Map

• There are about 20 million parcels of residential lands in the Philippines however only 50% of these are titled and registered.

• There is, therefore, a large chunk of unproductive asset (untitled lands) that cannot be fully utilized for economic undertaking (i.e., as loan collateral).

• Residential Free Patent Law (RA No. 10023) was passed in 2010 that shortened the processing time of residential title applications, reduced costs and remove restrictions.

Titling in Residential Lands

• Address the “titling gap” by providing administrative procedure in titling residential land.

• Removes the restrictions on transfers and repurchase place on “patents”.

• Enable owners to immediately use the land as a tool in accessing credit or capital upon titling.

• Banks’ interest on this type of “Patent”.

Titling in Residential Lands

Land Titles as Credit Enhancement Mechanism

(1)"Unregistered Private Land"

Not mortgaged

(2)"Registered Private Land"

Not mortgaged

(3)"Unregistered Private Land"

MORTGAGE"

(4)"Registered Private Land"

MORTGAGE

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