2018 Remedial Law, Q9

In 2015, Dempsey purchased from Daria a parcel of land located in Dumaguete, Negros Oriental. The latter executed a deed of absolute sale and handed to Dempsey the owner’s duplicate copy of TCT No. 777 covering the property. Since he was working in Manila and still had to raise funds to cover taxes, registration and transfer costs, Dempsey kept the TCT in his possession without having transferred it to his name. A few years thereafter, when he already had the funds to pay for the transfer costs, Dempsey went to the Register of Deeds of Dumaguete and discovered that, after the sale, Daria had filed a petition for reconstitution of the owner’s duplicate copy of TCT No. 777 which the RTC granted. Thus, unknown to Dempsey, Daria was able to secure a new TCT in her name.
What is Dempsey’s remedy to have the reconstituted title in the name of Daria nullified? (5%)

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What is the jurisdictional prerequisite for a trial court to entertain a petition for judicial reconstitution under RA 26?

Which judicial remedy is available under Rule 47 to set aside a final RTC judgment rendered without jurisdiction?

What is the status of a judicial order granting reconstitution when the owner's duplicate title is intact and in another's possession?

Which court has exclusive original jurisdiction over a petition for annulment of judgment of a Regional Trial Court under Rule 47?

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On what two exclusive grounds may a petition for annulment of judgment be based under Rule 47, Section 2?

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1. Reconstitution Jurisdiction
Under Republic Act No. 26, judicial reconstitution of a Torrens certificate of title requires that the owner's duplicate certificate was actually lost or destroyed. If the owner's duplicate certificate is not in fact lost or destroyed but is intact and in the physical possession of another person, the trial court acquires no jurisdiction over the subject matter of the reconstitution proceedings. Consequently, any judgment or order granting judicial reconstitution when the owner's duplicate title exists is void ab initio for total lack of jurisdiction.

2. Annulment of Judgment
Under Rule 47, Section 1 of the Rules of Court, a petition for annulment of judgment is an extraordinary remedy available to set aside a final judgment or order of a Regional Trial Court. The two exclusive grounds for annulment of judgment are extrinsic fraud and lack of jurisdiction. When an RTC grants judicial reconstitution over an owner's duplicate title that was not lost, the proper remedy of the possessor of the intact duplicate title is to file a petition for annulment of judgment with the Court of Appeals.

3. Void Reconstituted Title
A reconstituted certificate of title issued pursuant to a void judgment in a reconstitution proceeding is a nullity and confers no valid property rights upon the petitioner. Since the trial court lacked subject-matter jurisdiction, the reconstituted title is void from the beginning and may be attacked either directly or collaterally. The holder of the original intact owner's duplicate copy retains superior legal right to the property, and the Register of Deeds may be compelled to cancel the void reconstituted title upon finality of the annulment decree.

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