Delivery of title
"I purchased a house and lot from Juan. I demanded from him upon full payment of the purchase price that we should execute a deed of absolute sale and he should surrender to me the owner’s duplicate of title covering the property. Juan refused to heed my demand, claiming that I must first pay the corresponding taxes before the execution of deed of absolute sale and delivery of title. I suspect that there must be a problem with the certificate of title that is why he is making an excuse. May I know the existing provisions of law governing my right as a buyer regarding the title?Lorimer
Dear Lorimer,Your right as a buyer may be found under the following provisions of Presidential Decree 1529, otherwise known as the “Property Registration Decree”:
“Section 41. Owner’s duplicate certificate of title. The owner’s duplicate certificate of title shall be delivered to the registered owner or to his duly authorized representative. If two or more persons are registered owners, one owner’s duplicate certificate may be issued for the whole land, or if the co-owners so desire, a separate duplicate may be issued to each of them in like form, but all outstanding certificates of title so issued shall be surrendered whenever the Register of Deeds shall register any subsequent voluntary transaction affecting the whole land or part thereof or any interest therein. The Register of Deeds shall note on each certificate of title a statement as to whom a copy thereof was issued.”Section 53 of the same law states the following:
“Presentation of owner’s duplicate upon entry of new certificate. No voluntary instrument shall be registered by the Register of Deeds, unless the owner’s duplicate certificate is presented with such instrument, except in cases expressly provided for in this Decree or upon order of the court, for cause shown. The production of the owner’s duplicate certificate, whenever any voluntary instrument is presented for registration, shall be conclusive authority from the registered owner to the Register of Deeds to enter a new certificate or to make a memorandum of registration in accordance with such instrument, and the new certificate or memorandum shall be binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value and in good faith.”The obligation of the seller to surrender the certificate of title upon full payment of the price agreed upon finds support also in the case of Fil-Estate Properties Inc. vs Hermana Realty Inc. (GR 231936, November 25, 2020), where the Supreme Court, through Associate Justice Amy Lazaro-Javier, stated that:
“Thus, it is clear that for purposes of registration of any voluntary transactions before the Register of Deeds and the subsequent issuance of a new certificate of title, the owner’s duplicate copy of the certificate of title must be surrendered by the parties to the Register of Deeds. To emphasize, upon HRJ’s full payment of the purchase price, not only has it acquired the right to a notarized Deed of Absolute Sale but the right as well to the owner’s duplicate CCT. For without these documents, HRJ may not possibly cause the registration of a new title under its name.”Applying the above-quoted decision in your situation, upon full payment of the purchase price, you have acquired the right to a notarized deed of absolute sale as well as the delivery of the Certificate of Title. Juan cannot require you to pay first the corresponding taxes because the latter cannot be assessed without the deed of absolute sale. Further, registration will fail before the Register of Deeds without the said certificate of title being surrendered by the parties. The presentation of the owner’s duplicate of title shall be a conclusive authority from the registered owner to the Register of Deeds to enter a new certificate.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 dearpao@manilatimes.net" - https://www.affordablecebu.com/
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"Delivery of title" was written by Mary under the Legal Advice category. It has been read 692 times and generated 0 comments. The article was created on 15 September 2021 and updated on 15 September 2021.
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