SC can quiet titles or make a mess

October 15, 2009

AMADO P. MACASAET

http://www.malaya.com.ph/09012010/columnbusi1.html

‘What the decision – my guess, not the Court’s – will create is utter confusion and leave useless and meaningless all titles to those lands. Torrens titles from which transfer certificates of titles were drawn and have been quieted by operation of law and for lack of any adverse claims will be questionable as a result of the possible ruling.’

WE have no information on how the Supreme Court will decide the long-drawn land dispute among the Manotoks, the Manahans and the heirs of Homer Barque.

We can make two guesses. One, the Court may award the 34-hectare property to the Manotoks who have proven they have all it takes to own the land or to either the Barques or the Manahans.

The other possibility, remote as I see it, is the return of the land to the state. Which means that in the judgment of the Court the documents that justified the issuance of the titles of the three claimants are all forgeries.

I am personally scared of the third possibility in the sense that it creates a jurisprudence over all friar lands sold by the state.

More than 145,000 hectares of such land were former friar lands. They are scattered in at least eight provinces.

I am not saying that Court will rule that way. I am merely making a guess.

The effects can paralyze the economy. Business operates through borrowings from banks. In most cases, the collateral offered is real property.

Because of the decision – if that indeed will be the decision as I guess – the lending bank will have to first determine whether or not the offered collateral was formerly friar land.

If it happens to be, the bank will not give the loan for a very simple sensible reason. The land might be seized by the state.

Nearly all of the lands in Laguna and Cavite were former friar lands. They could be subject to forfeiture by the state if the Supreme Court rules that the Manotok property, originally part of the Piedad Estate which was friar land, must revert back to the government.

Having said that, I believe that the Supreme Court will look deeply and dispassionately into the documents presented to the Court of Appeals by the contending parties.

I said earlier that the Barques admitted that they submitted fake documents. The Manahans, on the other hand, presented documents that cannot be verified and, logically, must be presumed spurious. They do not exist.

At this point, it may be helpful to the Court and to all owners of former friar lands to know that the Manotoks, maybe like other owners of former friar lands, have in their possession documents which have never been doubted although a division decision in the same Court awarded the Manotok property to the heirs of Homer Barque.

The first step in acquiring friar lands bought or ceded to the state is to have a certificate of sale. This cannot be issued without proof of payment although such payment may be made in installments.

The certificate of sale may be assigned to just about anybody the holder wants to assign it to.

The next step is the issuance of a deed of conveyance by the director of the bureau of lands, now the Land Management Bureau under the Land Registration Administration.

The deed shall be issued only upon full payment of the value of the land. The document must be notarized.

From what I can figure out the documents are transmitted to the register of deeds in the locality where the land is located. The register of deeds issues a Torrens title.

That makes the title unassailable. So are the original certificates of title or transfer certificates of title drawn from the Torrens title. They are unassailable only if the documents that led to the issuance of the Torrens title are beyond question. Such is the case of the Manotoks as proven by official records.

In the dispute now under deliberation by the Supreme Court, it appears that only the Manotoks have proofs that their documents are genuine as proven by the existence of copies in the files of the National Archive.

I heard that there is this argument that the deed of conveyance issued to Severino Manotok is void because it does not have the signature of the secretary of agriculture and natural resources.

If that is the case, there are hundreds – if not thousands – of deeds of conveyance that do not have the signature of the secretary of agriculture and natural resources.

They are as void as the deed of conveyance issued to Severino Manotok. Therefore, these lands must likewise revert to the state. Their owners will not surrender their land without a separate order from the Supreme Court.

Or is the jurisprudence that the Court could establish equivalent to an order to surrender the land?

Advertisements