Application for new certificate of title upon expiration of redemption period - G.R. No. 185620

G.R. No. 185620

"x x x.

Notwithstanding the validity of the execution sale and Reyes’ consolidation of ownership over the subject property upon the lapse of the redemption period, we hold that Section 107 of Presidential Decree No. 1529 contemplates the filing of a separate and original action before the RTC, acting as a land registration court.

Reyes argues that to require him to “file his petition in another court would unduly divest the RTC of its jurisdiction to enforce its final and executory decision.” Reyes invokes our ruling in Natalia Realty, Inc. v. Court of Appeals[44] where we declared that “jurisdiction of the court to execute its judgment continues even after the judgment has become final for the purpose of enforcement of judgment.”[45]

Reyes’ reasoning is off tangent. Natalia is inapplicable because the execution proceedings in this case have been completed and was terminated upon the execution sale of the subject property. Reyes already consolidated ownership over the subject property; as owner, he has a right to have the same registered in his name. This transfer of title to the subject property in Reyes’ name is no longer part of the execution proceedings: the fact of levy and sale constitutes execution, not so is the action for the issuance of a new title.[46]

Indeed, the subsequent filing of a separate and original action for the titling of the subject property in Reyes’ name, no longer involves the execution of the judgment in Civil Case No. 1245-M.

Section 107 of the Property Registration Decree falls under PETITIONS AND ACTIONS AFTER ORIGINAL REGISTRATION, Chapter X thereof. The provision reads:

SECTION 107. Surrender of withhold duplicate certificates. – Where it is necessary to issue a new certificate of title pursuant to any involuntary instrument which divests the title of the registered owner against his consent or where a voluntary instrument cannot be registered by reason of the refusal or failure of the holder to surrender the owner's duplicate certificate of title, the party in interest may file a petition in court to compel surrender of the same to the Register of Deeds. The court, after hearing, may order the registered owner or any person withholding the duplicate certificate to surrender the same, and direct the entry of a new certificate or memorandum upon such surrender. If the person withholding the duplicate certificate is not amenable to the process of the court, or if not any reason the outstanding owner's duplicate certificate cannot be delivered, the court may order the annulment of the same as well as the issuance of a new certificate of title in lieu thereof. Such new certificate and all duplicates thereof shall contain a memorandum of the annulment of the outstanding duplicate.


That a succeeding registration of property in another’s name, after its original registration, contemplates a separate original action is reinforced by our ruling in Padilla v. Philippine Producers’ Cooperative Marketing Association, Inc.[47] Answering the question: “In implementing the involuntary transfer of title of real property levied and sold on execution, is it enough for the executing party to file a motion with the court which rendered judgment, or does he need to file a separate action with the Regional Trial Court,” we unequivocally declared, thus:

Petitioner is correct in assailing as improper respondent’s filing of a mere motion for the cancellation of the old TCTs and the issuance of new ones as a result of petitioner’s refusal to surrender his owner’s duplicate TCTs.

Indeed, this called for a separate cadastral action initiated via petition.

Section 107 of PD 1529, formerly Section 111 of Act 496, provides:

x x x x

Respondent alleges that it resorted to filing the contested motion because it could not obtain new certificates of title, considering that petitioner refused to surrender his owner’s duplicate TCTs. This contention is incorrect. The proper course of action was to file a petition in court, rather than merely move, for the issuance of new titles. This was the procedure followed in Blancaflor by Sarmiento Trading which was in more or less the same situation as the respondent in this case:

Petitioners reliance on prescription and laches is unavailing in this instance. It was proper for Sarmiento Trading Corporation to file a petition with the Court of First Instance of Iloilo, acting as a cadastral court, for the cancellation of TCT No. 14749 in the name of Gaudencio Blancaflor and the issuance of another in its name. This is a procedure provided for under Section 78 of Act No. 496 and Section 75 of PD No. 1529. . . .

Section 78 of Act 496 reads:

Sec. 78. Upon the expiration of the time, if any allowed by law for redemption after registered land has been sold on any execution, or taken or sold for the enforcement of any lien of any description, the person claiming under the execution or under any deed or other instrument made in the course of the proceedings to levy such execution or enforce any lien, may petition the court for the entry of a new certificate to him, and the application may be granted: Provided, however, That every new certificate entered under this section shall contain a memorandum of the nature of the proceeding on which it is based: Provided, further, That at any time prior to the entry of a new certificate the registered owner may pursue all his lawful remedies to impeach or annul proceedings under execution or to enforce liens of any description.

Section 75 of PD 1529 provides:

Sec. 75. Application for new certificate upon expiration of redemption period. ─ Upon the expiration of the time, if any, allowed by law for redemption after the registered land has been sold on execution, or taken or sold for the enforcement of a lien of any description, except a mortgage lien, the purchaser at such sale or anyone claiming under him may petition the court for the entry of a new certificate to him.

Before the entry of a new certificate of title, the registered owner may pursue all legal and equitable remedies to impeach or annul such proceedings.

It is clear that PD 1529 provides the solution to respondent’s quandary. The reasons behind the law make a lot of sense; it provides due process to a registered landowner (in this case the petitioner) and prevents the fraudulent or mistaken conveyance of land, the value of which may exceed the judgment obligation. x x x.

While we certainly will not condone any attempt by petitioner to frustrate the ends of justice − the only way to describe his refusal to surrender his owner’s duplicates of the certificates of title despite the final and executory judgment against him − respondent, on the other hand, cannot simply disregard proper procedure for the issuance to it of new certificates of title. There was a law on the matter and respondent should have followed it.

In any event, respondent can still file the proper petition with the cadastral court for the issuance of new titles in its name.[48] (Emphasis supplied).


Plainly, Reyes must institute a separate cadastral action initiated via petition.

x x x."
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