PROPERTY NOTES TITLE 2: OWNERSHIP
CHAPTER 3: QUIETING OF TITLE 2. NATIONAL GRAINS AUTHORITY vs. IAC
ART. 476
SOURCE: PARAS
1. SEVERINO BARICUATRO, JR. vs. CA, et al.
GR 105902, Feb. 09, 2000
120 SCAD 643
 QUIETING of title is a common-law remedy to remove CLOUD or
DOUBT or UNCERTAINTY with respect to the TITLE to real property.
 Equity Jurisprudence: Secure “an adjudication (a formal judgment on
a disputed matter) that a claim of title to or an interest in property,
adverse to that of the complainant, is INVALID, so that the
COMPLAINANT and those claiming under him may FOREVER
AFTERWARD FREE from any danger to HOSTILE CLAIM.” (Tolentino,
Commentaries and Jurisprudence on the Civil Code of the
Philippines, Vol. 2, p. 137)
 Competent courts determine the respective rights of the
COMPLAINANT and OTHER CLAIMANTS.
 Place things in their proper place
 Make the one who has no rights to said immovable respect and not
disturb the other who has the better rights over the immovable
 For the benefit of all the interesting parties
 He who has the RIGHT would see every CLOUD OF DOUBT over the
property DISSIPATED, and he could afterwards without FEAR
introduce the IMPROVEMENTS he may desire, to USE, and even to
ABUSE the property as he deems best.
GR 68741, Jan. 28, 1988
 TORRENS SYSTEM – QUIET title to land and to STOP FOREVER any
question as to its legality.
 REGISTERED TITLE – owner may rest secure, without the necessity
of waiting in the portals of the court or sitting on the mirador su casa,
to avoid the possibility of losing his land.
 INDIRECT or COLLATERAL ATTACK on a TORRENS TITLE – not
allowed
 EXC: Person obtains a certificate of title to a land belonging to
another and he has full knowledge of the rights of the true owner.
Such person is GUILTY of FRAUD.
Person will be COMPELLED to transfer the land to the
DEFRAUDED OWNER so long as the property has not been
passed to the hands of an INNOCENT PURCHASER for VALUE.
3. HEIRS OF UBERAS vs. CFI OF NEGROS OCCIDENTAL
L – 48268, Oct. 30, 1978
 Action to quiet title to property in possession of the plaintiff is
IMPRESCRIPTIBLE (Foja vs. CA, 75 SCRA 441 [1977])
4.
My Notes
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 PROPERTY NOTES TITLE 2: OWNERSHIP
……………………………………………………………………………………………… My Notes
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STATEMENT OF THE CODE OF COMMISSION EXPLAINING THE REASON ………………………………………………………………………………………………
FOR THE CHAPTER ON QUIETING THE TITLE ………………………………………………………………………………………………
a) Actions to remove a CLOUD from the title to real estate shall be brought ………………………………………………………………………………………………
in the province where the land is situated. (Civ. Pro. Sec. 377) …………………………………………………………………………………………
b) But no provision of the substantive law states under that conditions the …………………………………
ACTION may be brought. …………………………………
c) Well-established remedy in the American Law. …………………………………
 Reason: EQUITY comes to the aid of him who would suffer if the ……………………………………………………………………
instrument (Art. 476) were enforced.
 He is in good conscience entitled to a removal of the CLOUD or
DOUBT upon his TITLE. GR
 Upon the other hand, the respondent has no legal or moral ground - Form does not matter for a contract to be valid.
to hold the instrument against the petitioner’s TITLE. - Form is not a requirement for the validity of a contract.
- The presence of the essential requisites is enough for a contract to
be valid and enforceable.
EXISTENCE OF CLOUD OR DOUBT ON TITLE
 Consensual Contracts – COC (Consent, Object certain, Cause of
a) IRCEP
the Obligation)
b) Apparently VALID or EFFECTIVE
c) But is in TRUTH and IN FACT (IIVUEBP)
Exceptions (Requirement is absolute and indispensable.)
 Invalid
- When the law requires that a contract be in some form in order that it
 Ineffective
may be valid or enforceable.
 Voidable
 Formal Contracts or Solemn Contracts
 Unenforceable
– requires a certain specified form in addition to COC.
 Extinguished or Terminated
 A donation of real property must be in a public instrument in
 Barred or Extinctive
order to be valid, even as between the p`arties.
 Prescription (Art. 476-478)
 PROPERTY NOTES TITLE 2: OWNERSHIP
- A contract be proved in a certain way. ………………………………………………………………………………………………
 Real Contracts – require delivery to be valid as a real contract even ………………………………………………………………………………………………
as between the parties, in addition to COC. ………………………………………………………………………………………………
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When Form is Important? ………………………………………………………………………………………………
- For VALIDITY ………………………………………………………………………………………………
 True in Formal or Solemn Contracts ………………………………………………………………………………………………
 Examples ………………………………………………………
 Donations of Real Property loans, interest for the USE of the money
 Requires a public instrument for both the giving and  Said stipulation must be in writing
accepting
 Art. 749, Civil Code  Transfer of Large Cattle
 Requires the transfer of the certificate of registration
 Donations of Personal Property  Sec. 523, Rev. Adm. Code
 Requires a written contract or document if the
donation exceeds ₱500  Sale of Land through an Agent
 Art. 748, Civil Code  Authority of the agent must be in writing; otherwise,
the sale is NULL and VOID.
 Stipulation to pay interest on  Art. 1874, Civil Code
My Notes  Contracts of Antichresis*
………………………………………………………………………………………………  *contract whereby a debtor pledges (i.e., conveys
……………………………………………………………………………………………… possession but not title) real property to a creditor,
……………………………………………………………………………………………… allowing the use and occupation of the pledged
……………………………………………………………………………………………… property, in lieu of interest on the loan.
………………………………………………………………………………………………  The principal loan, and the interest if any, must be
……………………………………………………………………………………………… specified in writing; otherwise, the contract of
……………………………………………………………………………………………… Antichresis is VOID.
………………………………………………………………………………………………  Art. 1773, Civil Code
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……………………………………………………………………………………………… Sample Situations
………………………………………………………………………………………………  Camagay v. Lagera, 7 Phil. 397
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 PROPERTY NOTES TITLE 2: OWNERSHIP
A donated a real property to B in a private instrument. B
accepted the donation.
Q: Is the donation valid?
A: No, because the donation was not made in a public
instrument.
 Abellara v. Balanag, 37 Phil. 865
Real property was donated in a public instrument but the
acceptance was made in a private instrument.
Q: Is the donation valid?
A: No, because both the giving and accepting must be in a
public instrument.
 Two Possibilities in an Oral Sale
Q: Is an oral sale of land valid as between the parties?
Answer 1
 If the land had been delivered or the money
My Notes
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has been paid, the sale is completely valid.
 Although the Statute of Frauds requires this contract
to be in writing, still said statute does not apply to
executed or partially executed contracts.
Answer 2
 If the land has not yet been delivered and the price has
not yet been paid, the sale is unenforceable, that is,
neither party may be compelled by court actions to
perform unless the defense of the Statute of Frauds is
waived.
- For ENFORCEABILITY
 True for the agreements enumerated under the Statute of Frauds,
but of course this requirement may be waived by acceptance of
benefits (partial) or by failure to object to the presentation of oral
(parol) evidence.
 Art. 1403, Civil Code
 Unenforceable Contracts unless Ratified
 Unauthorized Contracts
 Those that fail to comply with the Statute of Frauds
 Those where both parties are incapable of giving
consent to a contract
- FOR CONVENIENCE
 True for the contracts enumerated under Art. 1385, Civil Code,
also known as Rescissible Contracts.
 PROPERTY NOTES TITLE 2: OWNERSHIP
H: No. The dismissal was not proper.
JPN
- L – 27010, April 30, 1969 ; Marlene Dauden-Hernaez v. Hon. Walfrido Notes
de los Angeles, et. Al  GR – All contracts are valid, regardless of the form.
F: Case filed is to recover ₱14, 700 representing a balance allegedly EXCEPT
due for the services as a star of Hernaez in two movies, and to recover  When the contractual form is needed for VALIDITY as
damages. They had an oral contract. The lower court dismissed the the case of a donation of real property, which needs a
case on the ground that under Art. 1358 of the Civil Code, since the public instrument.
contract price exceeded ₱500, the same should have been evidenced  When form is needed for ENFORCEABILITY under the
by a written instrument. Statute of Frauds.
My Notes  The contract for Hernaez services falls under neither of the
……………………………………………………………………………………………… exceptions provided above.
………………………………………………………………………………………………  Contracts covered by Art. 1358 (such as hers) are binding
……………………………………………………………………………………………… and enforceable by action or suit despite the absence of any
……………………………………………………………………………………………… writing because said article nowhere provides that the
……………………………………………………………………………………………… absence of written form will make the agreement invalid or
……………………………………………………………………………………………… unenforceable.
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………………………………………………………………………………………………  GR – Oral contracts are valid and enforceable.
……………………………………………………………………………………………… Rationale: In the matter of form, the contractual system of
……………………………………………………………………………………………… our Civil Code still follows that of the Spanish Civil Code of
……………………………………………………………………………………………… 1889 and of “Ordenamiento de Alcala” of upholding the spirit
……………………………………………………………………………………………… and intent of the parties over formalities.
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……………………………………………………………………………………………… - 80 SCRA 654 ; Duque v. Domingo
……………………………………………………………………………………………… Notes
………………………………………………………………………………………………  It is difficult to believe that registered land has been partitioned
……………………………………………………………………………………………… orally, for to affect third parties’ any transaction affecting
……………………………………………………………………………………………… registered land should be evidenced by a public instrument.
………………………………………………………………………………………………  As between parties, oral partition may be regarded as VALID.
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……………………………………………………… - L – 46892, Sept. 30, 1981 ; Heirs of del Rosario v. Santos
I: Was the dismissal proper?
 PROPERTY NOTES TITLE 2: OWNERSHIP
 When a party admits the genuineness of a document, he also were destroyed. So, by an affidavit of reconstitution, dated Dec. 02,
admits that the words and figures of the document are set out 1958, and upon presentation of the Owner’s Duplicate Certificate of
correctly, and he waives all formal requisites Title, the title was administratively reconstituted and the Register of
My Notes Deeds issued the corresponding transfer certificate of title in the
……………………………………………………………………………………………… name of Meliton. On Nov. 17, 1976, Marta, daughter of Pedro executed
……………………………………………………………………………………………… and filed an affidavit of adverse claim with the Office of the Register
……………………………………………………………………………………………… of Deeds. On Dec. 09, 976, a deed of conveyance and release of claim
……………………………………………………………………………………………… was prepared which provided that Marta is withdrawing the adverse
……………………………………………………………………………………………… claim. Marta refused to sign the affidavit of quitclaim. Meliton sued
……………………………………………………………………………………………… Marta by filing a complaint for quieting of title. Marta countered that
……………………………………………………………………………………………… the deed of sale be declared NULL and VOID ab initio. The trial court
……………………………………………………………………………………………… declared the deed of sale on August 10, 1937 as well as the
……………………………………………………………………………………………… reconstituted certificate of title of Meliton VOID ab initio. The
……………………………………………………………………………………………… Intermediate Appellate Court affirmed the trial court’s decision. SC
……………………………………………………………………………………………… sustained (agreed with) both the trial and appellate court’s decision.
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……………………………………………………………………………………………… Notes
………………………………………………………………………………………………  The Deed of Sale is not registerable under the Land
……………………………………………………………………………………………… Registration Act.
……………………………………………………………………………………………… Rationale: Private conveyance of registered property is VALID
……………………………………………………………………………………………… between the parties; however, the only right the buyer of a
……………………………………………………………………………………………… registered property in a private document is to compel through
……………………………………………………………………………………………… court processes the seller to execute a deed of conveyance
……………………………………………………………………………………………… sufficient in law for registration purposes.
………………………………………………………  The case fell into the exceptions provided in Art. 1356, Civil
required by the law, such as the oath, acknowledgement, or Code.
revenue stamps. My Notes
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- G.R. No. 67742, Oct. 29, 1987 ; Gallardo v. IAC ………………………………………………………………………………………………
F: On August 10, 1937, Pedro sold a property in a private document ………………………………………………………………………………………………
(unnotarized deed of sale), which states that the Original Certificate ………………………………………………………………………………………………
of Title was cancelled and a New Certificate of Title be issued in the ………………………………………………………………………………………………
name of Meliton. The records in the office of the Register of Deeds ………………………………………………………………………………………………
 PROPERTY NOTES TITLE 2: OWNERSHIP
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……………………………………………………………………………………………… Rationale : The exceptions are calculated to avoid litigation since ORAL
……………………………………………………………………………………………… CONTRACTS frequently lead to fraud in the fulfilment of obligations, or to
……………………………………………………………………………………………… false testimony.
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……………………………………………………………………………………………… Contracts Valid in Any Form
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……………………………………………………………………………………………… - A contract, having the essential requisites provided for in Art. 1318,
……………………………………………………………………………………………… will be valid as between the parties whatever form it may have entered
……………………………………………………………………………………………… into.
……………………………………………………………………………………………… Ex: Consensual Contracts are perfected in compliance with COC
……………………………………………………………………………………………… (Consent, Object Certain, which is the subject of the Contract, and
……………………………………………………………………………………………… Cause of the Obligation, which is established).
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……………………………………………………… - Our law upholds the spirit over the form of contracts.
 Sec. 127 of Act 496 requires conveyance be executed “before - The following contracts are valid and effective as between the
the judge of a court of record or clerk of a court of record or parties:
notary public or a justice of the peace, who shall certify such  Oral Contract of Partnership, Civil or Commercial, irrespective
acknowledgement substantially in form next hereinafter stated. of the
 The Register of Deed’s act in allowing the registration of the My Notes
private sale was authorized and did not validate the defective ………………………………………………………………………………………………
private document of sale. ………………………………………………………………………………………………
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SOURCE: TOLENTINO ………………………………………………………………………………………………
Modern Law ………………………………………………………………………………………………
- Recognizes autonomy of the will over the strict formalism in the ………………………………………………………………………………………………
execution of contracts. ………………………………………………………………………………………………
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Two Cases where Form is Absolute and Indispensable (Exceptions Provided ………………………………………………………………………………………………
in Art. 1356) ………………………………………………………………………………………………
1. FORM is essential to the VALIDITY of the contract. ………………………………………………………………………………………………
2. When the contract is UNFORCEABLE unless it is in a certain form, ………………………………………………………………………………………………
such as those under the Statute of Frauds as formulated in Art. 1403 ………………………………………………………………………………………………
 PROPERTY NOTES
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TITLE 2: OWNERSHIP
Some Formalities for Validity of Contract
- Negotiable Instruments must be made strictly in the form provided by
the Negotiable Instruments Law; the requisites as to form are
essential for the operation of said law upon such instruments, and the
parties cannot by their agreement impart negotiability to an
instrument which is not by its form a negotiable instrument.
- Donations of personal property in excess of ₱5, 000, must be made
and accepted in writing.

amount of the contribution of the partners;
 Oral contract of sale of real property;
 Exchange of land although not in writing, nor is the registration
necessary if the rights of the innocent third parties or
subsequent transferees are not involved;
 Lease of services;
 Extrajudicial partition made verbally;
 An agency that is not in writing;
 A private document which contemplates the subsequent
execution of a public document, because a private writing has
the same force as a public document as between the parties
who execute them and their legal representatives.
Formalities Required By the Law
1. Ad Esentiam Ad Solemnitatem
 Those which are required for the validity of the contract
2. Those required to make the contract effective as against third parties,
such as those mentioned in Art. 1357 and Art. 1358
3. Formalities Ad Probationem
 Those required for the purpose of proving the existence of the
contract, such as those provided in the Statute of Frauds in Art.
1403.
- Donations of real property must be made and adopted in public
instruments to be valid, even as between the parties.
My Notes
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……………………………………………………………………………………………… - Applies only when FORM is needed only for CONVENIENCE, not for
……………………………………………………………………………………………… validity or enforceability.
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Before the contracting parties may be compelled to execute the needed
- Interest in loans must be expressly stipulated in writing; otherwise, form, it is essential that the contract be:
they are not due. 1. Perfected or Valid (Art. 1357)
2. Enforceable under the Statute of Frauds (Art. 1356)
- Principal and interest in antichresis must be specified in writing;
otherwise, the contract will be void. My Notes
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- No sale or transfer of large cattle is valid unless it is registered and a ………………………………………………………………………………………………
certificate of transfer is secured as required by the Cattle ………………………………………………………………………………………………
Registration Act. Unless the record of such transfer is so registered ………………………………………………………………………………………………
and the certificate obtained, the ownership of the cattle does not pass ………………………………………………………………………………………………
and they may still be attached as property of the vendor. ………………………………………………………………………………………………
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- Registration is also essential to a chattel mortgage. ………………………………………………………………………………………………
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- A contract of partnership to which real property or real rights are ………………………………………………………………………………………………
contributed must be in a public instrument, with an inventory attached ………………………………………………………………………………………………
to be valid. ………………………………………………………………………………………………
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Execution of Instrument ………………………………………………………………………………………………
- Where the validity of a contract is made to depend upon a particular ………………………………………………………………………………………………
formality, an action under 1357 cannot be brought to compel the other ………………………………………………………………………………………………
party to execute such formality. ………………………………………………………………………………………………
- Art. 1357 presupposes the existence of a valid contract and cannot ………………………………………………………………………………………………
possibly refer to the form required to make it valid, but rather to that ………………………………………………………………………………………………
required simply to make it effective. ………………………………………………………………………………………………
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ART. 1357 Note: Art. 1356 says that when the law requires that a contract be in some
SOURCE: PARAS form in order that it may be valid or enforceable, that the requirement is
Right of One Party to Compel the Other to Execute Necessary Form
 PROPERTY NOTES TITLE 2: OWNERSHIP
absolute and indispensable. In such cases, the right of the parties – right to
compel cannot be exercised.

L – 13435, July 27, 1960 ; Manuel v. Rodriguez

 A contract partly written and partly oral is in legal effect, AN ORAL
CONTRACT.

Sample Situations
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