Advancing Philippine Competitiveness (COMPETE)

Project

Introduction to Land Titling

Atty. Erwin L. Tiamson

Component 3 - Access to Credit

Basic Principles
There are two basic principle that underpin land
ownership in the Philippines.
Regalian Doctrine - all lands belong to the State
and only by a grant from the State can land
pass into private ownership.
Right to private ownership - The right is
protected under the Constitution and under the
law that gives land owners absolute control
and exclusive rights on the basis of legal,
state-conferred ownership, subject only to
certain limitation on police power (land use and
environmental protection) and eminent domain.

Public Domain & Private Domain Lands

Public Domain Lands - are those lands that are
owned by the State.
All forest and mineral lands and national parks.
All lands that are intended for public use and for
some public purpose, i.e roads, bridges, parks,
camps, schools.
Patrimonial Properties - public domain lands that are
not intended for public use or purpose.

Private Domain lands - Lands disposed by the

State for private ownership. It is limited to
agricultural lands under the Constitution.

Sources of Private Land Titles - Direct Grants

Direct Grants - are public land grants from
Alienable and Disposable Agricultural Lands of the
Public Domain in favor of qualified citizens subject
to Constitutional limitation (12 hectares).
Public Land Application/Land Patents
Free Patent - issued to occupants and cultivator of
agricultural land; recently includes residential
land under RA No. 10023 (2010)
Homestead Patent- issued to those who are
willing to cultivate and settle to frontier lands
Sales Patents - Agricultural, Residential,
Commercial and Industrial lands

Sources of Private Land Titles - Direct Grants

The DENR has exclusive jurisdiction to

dispose public lands subject (QuasiJudicial); DENR has authority to determine
conflicting claims of applicants and
occupants subject to judicial review only
in cases of fraud, imposition or mistake.
DENR provides for the rules and
regulations including the procedures for
the processing of public land applications.

Sources of Private Land Titles - Direct Grants

Authority to Sign Patents - Chief Executive;

under E.O. No. 192 (1987) the Secretary DENR
was given a general mandate to implement
public land laws, with powers to delegate
includes the power to sign patents and to
delegate the same to such officers as he may
deem fit. 5 hectares (PENRO), more than 5 but
not exceeding 10 (RED), in excess of 10
(Secretary); Under RA No. 10023 the PENRO is
authorize by Congress to sign patents.

Sources of Private Land Titles - Direct Grants

Survey of the Land (Check A and D; Check if Titled;
Check other claims); if land is already surveyed; check
survey record DENR
Filing of Application (CENRO)
Examination of the Applicant for Personal
Qualification to own public land (Check nationality;
check total landholding public grant)
Examination and Inspection of the Land - Check
land allocation record book; Check use and
purpose; agricultural, residential, etc. (land patents)
Prepare Inspection report - Public Land Inspector;
approval of Land Management Officer;

Sources of Private Land Titles - Direct Grants

Approval of application - (CENRO Approves
application
If FP Patent is prepared at the CENRO for signing
of the PENRO
If Homestead - entry permit
Final Proof (Cultivation 1/5 in 1-5 years/1 year
residency)
Re-investigation and preparation of Reinvestigation report, (Cultivation, residency, etc)
Patent is prepared and transmitted to PENRO
for approval and signing

Sources of Private Land Titles - Direct Grants

If Sales - appraisal and bidding

Payment
Investigation report (Improvements,
cultivation, full-payment, etc)
Patent is prepared and transmitted to
PENRO for approval and signing
Approval and signing of Patents
Transmission to the Register of Deeds
(See Section 103, PD No. 1529)

Number of Patents issued under RA No. 10023

Residential Free Patents Issued
2011-2013

No. of Residential Free Patents Issued

60,000

45,000

30,000

15,000

0
2003

2004

2005

2006

2007

2008
Year

2009

2010

2011

2012

2013

Sources of Original Titles - Indirect Grants

Land titles that were acquired by
Operation of Law
Lands covered by Sec. 14 of PD No. 1529
Lands under open, continuous, exclusive
and notorious possession and occupation
of alienable and disposable lands of the
public domain under a bona fide claim of
ownership since June 12, 1945, or earlier.
Lands acquired lands by prescription
Lands acquired by right of accession

Sources of Original Titles - Indirect Grants

Land titles that were acquired by Operation of
Law
When the conditions set by law are complied
with, the possessor of the land, by operation of
law, acquires a right to a grant without the
necessity of a certificate of title being issued
Registration merely confirms the title of the
applicant
The land ceases to be a part of the public
domain and goes beyond the authority of the
DENR to dispose

Sources of Original Titles - Indirect Grants

Lands covered by Sec. 14 of PD No. 1529

Lands under open, continuous,
exclusive and notorious possession and
occupation of alienable and
disposable lands of the public domain
under a bona fide claim of ownership
since June 12, 1945, or earlier.
Lands acquired lands by prescription
Lands acquired by right of accession

Sources of Original Titles - Indirect Grants

Procedure is provided under PD No. 1529, voluntary registration
(See Section 14 to 30 PD No. 1529); in brief
Filing of the application (Regional Trial Court, BP No. 129)
Order setting the date and hour of the Initial hearing
Publication;
Mailing; and
Posting.
Filing of Opposition
Hearing/Default
Judgement/If there is confirmation, transmittal of the
judgement to LRA for the issuance of Decree
LRA issues Decree of registration and transmit to the Register
of Deeds
Register of Deeds registers the decree

Number of Decrees Issued 2009-2013

1200

900

600

300

0
2009

2010

2011

2012

2013

Decree vs. RFP (2009-2013)

Decrees

RFP Patents

60000

45000

30000

15000

0
2010

2011

2012

2013

Two System of Land Registration

Registration of Dealings in
Unregistered Lands
Deed Recording System
Dealings on lands that has not been
formally confirmed by the State as
private lands

Two System of Land Registration

Registration of lands under the Torrens
System
Title Recording System
Dealings on lands that has been formally
adjudicated by the State as private lands
- Adjudication judicial if by operation of
law and administrative if from public
land grant
- Transfers of subsequent titles by public
instruments only

Issuance of TCT vs. Reg. of Instruments (2009-2013)

YEAR

2009

2010

2011

2012

2013/Sept

Issuance of
new TCT

635,008

635,003

638,171

657,232

435,020

Registration 2,668,980 2,690,000 2,702,481 3,427,516 1,931,807

of Deeds

19

Issuance of TCT vs. Reg. of Instruments (2009-2013)

TCT

Registration of Deeds

2009
2010
2011
2012
2013/Sept
0

1250000

2500000

3750000

5000000
20

Government Agencies Engaged in Land Titling

LAND AGENCIES
MANDATES

DENR

Original Survey;
Subdivision &
Consolidation

Land
Classification/Use

Titling

(X)

(X)

(X)

NCIP

RECORDS GENERATED
Survey Data, Maps and Plans,
Narrative Descriptions,
LC Maps, Land Use Maps, IP Maps
PLAs, Expedientes, Patents,
Certificate of Titles, etc.
Certificate of Titles, Primary Entry
Books

Registration

Cadastre

LRA-RD LGU

Cadastral Maps, Tax Maps, LRA

Projection Map
2

Titling in Residential Lands

There are about 20 million parcels of residential
lands in the Philippines however only 50% of
these are titled and registered.
There is, therefore, a large chunk of
unproductive asset (untitled lands) that cannot
be fully utilized for economic undertaking (i.e.,
as loan collateral).
Residential Free Patent Law (RA No. 10023) was
passed in 2010 that shortened the processing
time of residential title applications, reduced
costs and remove restrictions.

Titling in Residential Lands

Address the titling gap by providing
administrative procedure in titling
residential land.
Removes the restrictions on transfers
and repurchase place on patents.
Enable owners to immediately use the
land as a tool in accessing credit or
capital upon titling.
Banks interest on this type of Patent.

Land Titles as Credit Enhancement Mechanism

(1)"
Unregistered Private Land"
Not mortgaged

(2)"
Registered Private Land"
Not mortgaged

(3)"
Unregistered Private Land"
MORTGAGE"

(4)"
Registered Private Land"
MORTGAGE

THANK YOU