How a Property Owner Can File an Adverse Claim With the Registry of Deeds in the Philippines

Introduction

In the Philippine legal system, property ownership is governed by a Torrens system of land registration, which aims to provide indefeasible titles to real property. However, disputes over land rights can arise, and one mechanism to protect potential interests is through the filing of an adverse claim. An adverse claim serves as a temporary notice annotated on the certificate of title, alerting third parties to a claimant's interest in the property that is contrary to the registered owner's title. This article explores the concept, legal basis, requirements, procedure, effects, and related considerations for filing an adverse claim with the Registry of Deeds (RD) in the Philippines, drawing from relevant laws such as Presidential Decree No. 1529 (Property Registration Decree) and associated jurisprudence.

Legal Basis for Adverse Claims

The primary legal foundation for adverse claims is found in Section 70 of Presidential Decree No. 1529, which states:

"Whoever claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, may, if no other provision is made in this Decree for registering the same, make a statement in writing setting forth fully his alleged right or interest, and how or under whom acquired, and a reference to the number of the certificate of title of the land, together with a description of the land in which the right or interest is claimed. The statement shall be signed and sworn to, and shall state the adverse claimant's residence, and a place at which all notices may be served upon him. This statement shall be entitled to registration as an adverse claim on the certificate of title."

This provision allows for the annotation of claims that are not otherwise registrable under the decree, ensuring that the public is put on notice. The Supreme Court has elaborated on this in cases like Sajonas v. Court of Appeals (G.R. No. 102377, July 5, 1996), emphasizing that adverse claims are protective measures but not conclusive evidence of ownership.

Adverse claims are distinct from lis pendens (notice of pending litigation), which requires an ongoing court case, or other encumbrances like mortgages. They are remedial in nature, designed to prevent fraudulent transfers while the claimant pursues legal action.

Who Can File an Adverse Claim?

Any person, natural or juridical, who asserts a right or interest in registered land that is adverse to the registered owner may file an adverse claim. This includes:

• Property owners or co-owners disputing boundaries or shares.
• Buyers under unregistered sales agreements (e.g., deeds of sale not yet annotated).
• Heirs claiming inheritance rights.
• Lessees with long-term leases not registered.
• Creditors with attachments or liens not formalized.

The claim must arise after the original registration of the title. Claims predating registration are typically addressed through reconstitution or cancellation proceedings, not adverse claims.

Importantly, the claimant does not need to be the registered owner; the provision is broad to protect various interests. However, frivolous or baseless claims can lead to liability for damages under civil law.

Requirements for Filing an Adverse Claim

To file an adverse claim, the following elements must be satisfied:

1. Written Statement (Affidavit): A sworn affidavit detailing:

   • The nature of the adverse right or interest (e.g., ownership via sale, inheritance, or prescription).
   • How and from whom the interest was acquired.
   • Reference to the certificate of title number (TCT or OCT).
   • Description of the land (lot number, location, area, boundaries).
   • Claimant's full name, residence, and a designated address for service of notices.

   The affidavit must be notarized to ensure its veracity.

2. Supporting Documents: While not always mandatory, attaching evidence strengthens the claim, such as:

   • Deeds of sale, contracts, or court orders.
   • Tax declarations or receipts.
   • Surveys or technical descriptions if boundary disputes are involved.

3. No Pending Registration: The claim should not be registrable under other provisions of PD 1529 (e.g., if it's a mortgage, it should be registered as such).

4. Good Faith: The claim must be made in good faith; malicious filings can result in criminal charges for perjury or civil suits for abuse of right (Article 19, Civil Code).

Step-by-Step Procedure for Filing

Filing an adverse claim is a straightforward administrative process handled by the Registry of Deeds. Here is a detailed guide:

1. Prepare the Affidavit:

   • Draft the statement as described above.
   • Have it signed and sworn before a notary public.
   • Ensure all details are accurate to avoid rejection.

2. Gather Supporting Documents:

   • Compile originals and photocopies of relevant papers.
   • If the title is not in possession, obtain a certified true copy from the RD.

3. Determine the Appropriate Registry of Deeds:

   • File with the RD where the property is situated (e.g., RD of Quezon City for properties in that area).
   • For properties spanning multiple jurisdictions, file in the primary RD.

4. Submit the Application:

   • Present the affidavit and documents to the RD's receiving clerk.
   • Fill out any required entry forms provided by the RD.

5. Pay the Required Fees:

   • Registration fee: Typically Php 36.00 for the first page, plus Php 12.00 per additional page (subject to updates via LRA circulars).
   • Documentary stamp tax: Php 15.00 per Php 1,000 of property value or a flat rate.
   • Other charges: Legal research fee (Php 10.00), computer fee (Php 20.00), etc.
   • Total cost usually ranges from Php 500 to Php 2,000, depending on document length and property value.

6. Annotation by the Register of Deeds:

   • The RD examines the documents for completeness.
   • If approved, the adverse claim is annotated on the original certificate of title (OCT/TCT) and the owner's duplicate.
   • The annotation includes the date, time, and entry number.

7. Receive the Annotated Title:

   • The claimant receives a copy of the annotated title or a certification.
   • The process typically takes 1-5 working days, barring complications.

In case of rejection (e.g., incomplete documents), the RD provides reasons, and the claimant can appeal to the Land Registration Authority (LRA) or file a consulta.

Effects and Duration of an Adverse Claim

Once annotated, the adverse claim has the following effects:

• Notice to Third Parties: It binds the land, putting subsequent buyers or encumbrancers on notice (constructive notice under the Torrens system). Innocent purchasers for value may still prevail if the claim is invalid, but they cannot ignore it.

• Temporary Nature: The claim is effective for 30 days from annotation (Section 70, PD 1529). Beyond this, it lapses automatically unless the claimant files a court action (e.g., quieting of title, annulment of sale) and annotates a lis pendens.

• No Alteration of Title: It does not cancel or modify the title; it merely warns of a dispute. The registered owner retains possession and can challenge the claim.

• Protection Against Fraud: Prevents the owner from transferring clean title during the 30-day period, safeguarding the claimant's interest.

Jurisprudence, such as Diaz v. Court of Appeals (G.R. No. 109698, December 5, 1994), clarifies that the 30-day period is mandatory, and failure to litigate results in cancellation.

Cancellation or Removal of Adverse Claim

An adverse claim can be removed through:

1. Voluntary Cancellation: By the claimant filing a sworn request with the RD.

2. Lapse After 30 Days: Automatic if no court action is taken.

3. Court Order: The registered owner can petition the court for cancellation if the claim is groundless (e.g., via a petition under Section 110, PD 1529). Courts may award damages if the claim was filed maliciously.

4. Administrative Removal: If fraudulent, the LRA or RD can act upon verification.

Common Issues and Considerations

• Multiple Claims: Multiple adverse claims can be annotated on one title, each handled separately.

• Forged or Fraudulent Claims: Punishable under the Revised Penal Code (falsification of documents) and can lead to disbarment if filed by lawyers.

• Impact on Transactions: Banks and buyers often require clearance of adverse claims before loans or sales, delaying deals.

• Jurisprudential Developments: Recent cases emphasize due process; for instance, Heirs of Lopez v. De Castro (G.R. No. 211115, December 10, 2014) highlights that adverse claims cannot be used for unregistered leases exceeding one year without proper basis.

• Electronic Filing: With the LRA's digitalization efforts, some RDs accept e-filings via the Land Titling Computerization Project, but physical submission remains standard.

• Costs and Accessibility: Fees are regulated by the LRA, but indigent claimants may seek waivers through court orders.

• Alternatives: If the claim is strong, consider filing for registration of documents (e.g., annotation of sale) instead of an adverse claim.

Conclusion

Filing an adverse claim is a vital tool for property owners and claimants to safeguard interests in registered land under Philippine law. While simple in procedure, it requires precision to avoid legal pitfalls. Claimants should consult legal professionals to ensure compliance and to pursue substantive remedies beyond the 30-day window. This mechanism upholds the integrity of the Torrens system by balancing protection of titles with recognition of legitimate adverse interests.