2015 Civil Law, Q20

A. Mr. and Mrs. Roman and Mr. and Mrs. Cruz filed an application for registration of a parcel of land which after due proceedings was granted by the RTC acting as a land registration court. However, before the decree of registration could be issued, the spouses Roman and the spouses Cruz sold the lot to Juan. In the notarized deed of sale, the sellers expressly undertook to submit the deed of sale to the land registration court so that the title to the property would be directly issued in Juan’s name. Is such a stipulation valid? (2%)
B. Distinguish a direct attack from a collateral attack on a title. (2%)
C. If the title in Item XX.A is issued in the names of the original sellers, would a motion filed by Juan in the same case to correct or amend the title in order to reflect his name as owner be considered a collateral attack? (2%)

Quick check

Under Section 22 of Presidential Decree No. 1529, what may a buyer do if land is sold while registration proceedings are still pending?

Under Section 48 of Presidential Decree No. 1529, how may a certificate of title be legally altered, modified, or canceled?

What distinguishes a direct attack from a collateral attack on a Torrens title?

Why is a motion filed by a buyer in the land registration case to reflect his name on the title NOT a collateral attack?

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What is the legal effect of an express stipulation in a deed of sale binding sellers to submit the deed so title issues in the buyer's name?

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1. Pre-Decree Land Conveyance
Under Section 22 of Presidential Decree No. 1529 (Property Registration Decree), land subject to pending land registration proceedings may be validly sold or conveyed before the decree of registration is issued. The party acquiring the property may present the instrument of conveyance to the land registration court. Upon proper submission, the court shall order the decree of registration and certificate of title to be issued directly in the name of the new buyer or transferee. This provision explicitly validates stipulations in deeds of sale requiring direct title issuance to the purchaser.

2. Direct Collateral Attack
Under Section 48 of Presidential Decree No. 1529, a certificate of title cannot be altered, modified, or canceled except in a direct proceeding in accordance with law. A direct attack is a judicial proceeding instituted specifically for the primary purpose of annulling, setting aside, or invalidating a certificate of title or registration decree. In contrast, a collateral attack occurs when the validity of the certificate of title is questioned incidentally or as a defense in an action originally brought for an entirely different purpose, such as an ejectment suit or recovery of possession.

3. Title Amendment Relief
A motion filed by a transferee in the same land registration case to correct or amend a certificate of title to reflect his name as registered owner does not constitute a collateral attack. Rather than seeking to nullify, set aside, or invalidate the underlying judgment of registration, the transferee's motion expressly recognizes and affirms the validity of the registration decree. The motion merely seeks to enforce the valid instrument of conveyance and implement the court's decree in accordance with statutory procedures governing voluntary dealings with registered land.

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