ASSURANCE FUND mistake or misfeasance of persons other than the court personnel, the RD or other
Section 93 - 95
CLAIMS AGAINST THE ASSURANCE FUND
Section 95 provides a remedy where a person who sustains loss or damage or is deprived of
any estate or interest in land in consequence of the operations of the Torrens system of
registration, without negligence on his part, may bring an action for the recovery of damages
to be paid out of the Assurance fund
It is a condition sine que non that the person who brings an action for damages against the
Assurance fund be the registered owner, and as to holders of transfer certificates of title that
they be innocent purchasers in good faith and for value
REQUISITES FOR RECOVERY FROM THE ASSURANCE FUND
(1) That a person sustains loss or damage, or is deprived of any estate or interest in land
(2) On account of the brining of land under the operation of the Torrens system arising
after original registration
(3) Through fraud, error, omission, mistake or misdescription in a certificate of title or
entry or memorandum in the registration book
(4) Without negligence on his part and
(5) Is barred or precluded from bringing an action for the recovery of such land or estate
or interest therein
RECORDED MORTGAGE PROTECTED EVEN IF TITLE IS SUBSEQUENTLY NULLIFIED
Being an innocent mortgagee for value, its right or lien upon the land mortgaged must be
respected and protected, even if the mortgagor obtain her title thereto thru fraud. The
remedy of the person prejudiced is to bring an action for damages against those causing the
fraud.
Section 96
AGAINST WHILE CLAIM FOR DAMAGES MAY BE FILED
1. If the action is brought for the recovery of loss or damages or for deprivation of
land or of any estate or interest therein arising through fraud, negligence, or
omission, mistake or misfeasance of the court personnel, the RD or other
employees of the registry in the performance of the duties, the action shall be
brought against the RD of the province or city where the land lies and the National
Treasurer as defendants
2. If the action is brought for the recovery of loss or damage or for deprivation of land
or of any estate or interest therein arising through fraud, negligence, omission,
employees of the Registry, the action shall be brought against the RD, the National
Treasurer and such other persons, as co- defendants
The plaintiff must clearly allege the basis of the action and specify the details which led to his
loss, damage or deprivation, as well as the market value of the property subject of the action.
Section 97
HOW IS JUDGMENT SATISFIED
Where judgment is rendered against the government, execution shall first issue against the
persons who have been joined as co- defendants, and if the execution is returned unsatisfied,
then the damages awarded by the court shall be assessed against the Assurance fund
But the plaintiff cannot recover as compensation more than the fair market value of the
land at the time he suffered the loss, damage or deprivation thereof
In every case, where payment has been made by the National Treasurer, the government shall
be subrogated to the rights of the plaintiff against any other parties or securities, and any
amount recovered shall be paid to the account of the Assurance Fund
Section 98 – 100
THE RD, UPON AUTHORITY OF THE LRA ADMINISTRATOR, IS A PROPER PARTY TO FILE ACTION FOR
ANNULMENT OR AMENDMENT OF TITLE
In the event the Assurance fund is held liable on account of the unlawful or erroneous
issuance of a certificate of title, the RD upon the authority of the LRA administrator, shall file
the necessary action to amend or cancel the title or perform any other act as may be directed
by the Court. Such action may pre-empt any action against the Assurance fund.
Section 101
LOSS OR DAMAGE ARISING FROM BREACH OF TRUST NOT RECOVERABLE
The Assurance Fund shall not be liable for any loss, damage, or deprivation of any right or
interest which may have been caused by a breach of trust, whether express or implied.
LOSS OR DAMAGE THROUGH ERRONEOUS RESURVEY RESULTING IN EXPANSION OF THE AREA NOT
RECOVERABLE
The Assurance Fund shall not be liable for any loss, damage or deprivation of property caused
by any mistake in the resurvey or subdivision of registered land resulting in the expansion of
area in the certificate of title.
Section 102
PRESCRIPTIVE PERIOD
The plaintiff has a period of 6 years from the time the right of action accrues within which to
bring the action against the Assurance Fund.