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By Ian Alfredo Magno

IN recent times, land, real property or real estate has been considered among the best forms of investments anyone could dispense their funds into. Although not as liquid as other kinds of investments such as shares of stocks, bonds and debentures, it is said that land is one type of commodity that never depreciates its worth – under normal circumstances.

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With the inevitable expansion of rural areas and the continued extension of existing suburbs, urbanization has fueled the substantial increase in the market values of certain real estate domains, which had little or insignificant peso worth in the past.

Hence, it is not unusual that a number of middle class individuals had since been eagerly purchasing hectares of untitled/unregistered lands – from apparent possessors/settlers – situated in relatively remote locations from the poblacion.  Obviously, it is the considerably lower price (with the speculation that it would soon increase in value) that motivates such sort of land acquisitions.

Nevertheless, sometimes if not oftentimes, buyers of such kind have slight or less familiarity with the nuances of real estate or land registration in general (compared to corporate purchasers which possess the extensive expertise for the purpose).

And one particular mistake could cost them much more than just any anticipated profit, ultimately.

One common oversight rookie (but eager) purchasers of tracts of unregistered/untitled land is the failure to verify whether such land is alienable and disposable – and, thus, may be safely registered via cadastral proceedings by filing a petition to that effect.  However, if indeed the land forms part of the public domain, it unfortunately could not be registered even if a petition is filed therefor – in which case such application would be denied.

Pursuant to the Regalian Doctrine, all lands purportedly not within private ownership are legally presumed to belong to the State; and are therefore beyond the commerce of man.  Moreover, they are not susceptible of private appropriation and acquisitive prescription – regardless of the length of occupation.

The person applying for registration has the burden to prove that the land subject of his petition for registration is in fact alienable and disposable by means of a positive act of the government.  It means that he/she must be able to prove that the government has previously declared or classified the land as alienable either by means of a presidential proclamation, executive order, law, administrative act, reports of the Bureau of Lands, or a certification to that effect.

In the case of Republic of the Philippines vs. Espinosa G.R. No. 186603 dated 5 April 2017, the Supreme Court held that, viz:

“In land registration proceedings, the applicant has the burden of overcoming the presumption of State ownership.  It must establish, through incontrovertible evidence, that the land sought to be registered is alienable or disposable based on a positive act of the government.”

Caveat emptor, let the buyer beware!  No matter how fanatically keen one is at buying a desired (untitled) tract of land, it would be wiser to first check that it is actually classified as alienable and disposable.  That way you are assured that registration proceedings to one’s name would be proper.

 

(Ian Alfredo T. Magno is a lawyer based in Cagayan de Oro. E-mail: ianalfredom@gmail.com)

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