Owner's duplicate copy of the certificate of title

"Presentation of the owner's
duplicate certificate of title and
proof of payment of taxes and fees
are conditions sine qua non to the
transfer of title before the Register
of Deeds

Under Section 135 of the LGC, proof of payment of taxes and fees is a requirement before the Register of Deeds may initiate the transfer of title over a property, viz.:

SECTION 135. Tax on Transfer of Real Property Ownership. -

x x x x

(b) For this purpose, the Register of Deeds of the province concerned shall, before registering any deed, require the presentation of the evidence of payment of this tax. The provincial assessor shall likewise make the same requirement before canceling an old tax declaration and issuing a new one in place thereof. Notaries public shall furnish the provincial treasures with a copy of any deed transferring ownership or title to any real property within thirty (30) days from the date of notarization. (Emphasis supplied)

Here, HRI recognizes its obligation to pay the taxes and registration expenses as buyer of the condominium unit pursuant to paragraph 4 (b) of the Contract to Sell.23 It also does not dispute the common fact that it needs to pay the relevant taxes and fees for registration of a new title under its name. The only thing HRI demands from FEPI, which the latter has persistently refused to deliver, is copy of the owner's duplicate certificate of title on the premise that HRI must first present proof that it had already paid the required taxes and fees.

FEPI is mistaken.

Section 41 Presidential Decree No. 1529, otherwise known as the "Property Registration Decree," provides:

Section 41. Owner's duplicate certificate of title. The owner's duplicate certificate of title shall be delivered to the registered owner or to his duly authorized representative. If two or more persons are registered owners, one owner's duplicate certificate may be issued for the whole land, or if the co-owners so desire, a separate duplicate may be issued to each of them in like form, but all outstanding certificates of title so issued shall be surrendered whenever the Register of Deeds shall register any subsequent voluntary transaction affecting the whole land or part thereof or any interest therein. The Register of Deeds shall note on each certificate of title a statement as to whom a copy thereof was issued.

Section 53 of the same law expounds:

Section 53. Presentation of owner's duplicate upon entry of new certificate. No voluntary instrument shall be registered by the Register of Deeds, unless the owner's duplicate certificate is presented with such instrument, except in cases expressly provided for in this Decree or upon order of the court, for cause shown.

The production of the owner's duplicate certificate, whenever any voluntary instrument is presented for registration, shall be conclusive authority from the registered owner to the Register of Deeds to enter a new certificate or to make a memorandum of registration in accordance with such instrument, and the new certificate or memorandum shall be binding upon the registered owner and upon all persons claiming under him, in favor of every purchaser for value and in good faith.

x x x x

Thus, it is clear that for purposes of registration of any voluntary transactions before the Register of Deeds and the subsequent issuance of a new certificate of title,24 the owner's duplicate copy of the certificate of title must be surrendered by the parties to the Register of Deeds.

To emphasize, upon HRI's full payment of the purchase price, not only has it acquired the right to a notarized Deed of Absolute Sale but the right as well to the owner's duplicate CCT. For without these documents, HRI may not possibly cause the registration of a new title under its name."


G.R. No. 231936, November 25, 2020

FIL-ESTATE PROPERTIES, INC., PETITIONER, VS. HERMANA REALTY, INC., RESPONDENT.

https://lawphil.net/judjuris/juri2020/nov2020/gr_231936_2020.html