In the landscape of Philippine land registration, efficiency and security are the dual pillars of a functional Torrens system. LRA Circular No. 35-2019, issued by the Land Registration Authority (LRA), represents a significant procedural shift aimed at streamlining the registration of voluntary dealings—such as sales, mortgages, and donations—while tightening the safeguards against land title fraud.
This Circular primarily establishes the mandatory use of the Electronic Primary Entry Book (EPEB) and sets rigorous standards for the submission and verification of documents at the Registry of Deeds (RD).
1. Scope and Applicability
LRA Circular 35-2019 applies to all voluntary instruments involving registered lands. Unlike involuntary dealings (like attachments or adverse claims), voluntary dealings are consensual contracts initiated by the parties themselves.
The Circular covers:
- Deeds of Absolute Sale
- Real Estate Mortgages (REM)
- Deeds of Donation
- Exchanges and Partitions
- Lease Agreements exceeding one year
2. The Mandatory EPEB System
The core of the Circular is the transition to a fully digitized entry system. The Electronic Primary Entry Book (EPEB) acts as the official "time-stamp" for all transactions.
- Priority of Registration: The moment an entry is made in the EPEB and the required fees are paid, it is considered registered for the purpose of establishing priority.
- Sequential Order: The RD is strictly mandated to process documents in the order they were entered in the EPEB, preventing "jumping" or preferential treatment of certain applications.
3. Documentary Requirements and Verification
To combat the proliferation of "fake titles," the Circular reinforces the "No Complete Documents, No Entry" policy. Before an entry is even made in the EPEB, the following must be verified:
- Electronic Certificate Authorizing Registration (eCAR): The LRA and the Bureau of Internal Revenue (BIR) are now linked. The RD must verify the eCAR through the BIR-LRA system to ensure taxes (Capital Gains Tax, Documentary Stamp Tax, etc.) have been paid.
- Tax Clearance and Current Tax Declaration: These must be issued by the Local Government Unit (LGU) to prove the property is updated on real property taxes.
- Original Owner’s Duplicate Copy: The physical presentation of the Owner’s Duplicate Certificate of Title is indispensable for voluntary dealings.
4. The "Checklist" System
The Circular introduced a standardized Checklist of Requirements. This removed the discretion of individual Registrars of Deeds to ask for "additional" or arbitrary documents.
Legal Note: If a transaction is denied or "pended," the Registrar is required to issue a formal notice stating the specific legal grounds for denial. This allows the party to either comply or elevate the matter to the LRA via Consulta.
5. Impact on the Torrens System
The implementation of Circular 35-2019 has several profound effects on Philippine property law:
| Feature | Impact |
|---|---|
| System Integration | Links the LRA with the BIR, making it nearly impossible to register a sale without proper tax payments. |
| Fraud Mitigation | Digital verification of titles against the LRA’s central database prevents the use of forged physical certificates. |
| Transparency | The EPEB provides a digital audit trail, making the status of a registration easily trackable by the parties involved. |
6. Common Challenges
While the Circular increases security, it also demands a higher level of "due diligence" from buyers and lawyers. Common hurdles include:
- System Downtime: Since the verification is digital, server issues between the BIR and LRA can delay the "entry" of documents.
- Inconsistencies in Technical Descriptions: If the digital database (the "e-Title") has a slight discrepancy with the physical title, the RD may require a correction of entry before proceeding with the sale.
Summary for Practitioners
LRA Circular No. 35-2019 shifted the burden of accuracy onto the transacting parties. A deed is no longer simply "filed"; it is validated. For a successful registration under this Circular, the sequence remains: Tax Payment (BIR) eCAR Issuance LRA Verification EPEB Entry Issuance of New Title.