D. Quieting of Title

D. Quieting of Title (Civil Code, arts. 476-481)

Quieting of Title (Civil Code, arts. 476-481)

CHAPTER 3

Quieting of Title (n)

Article 476. Whenever there is a cloud on title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.

An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein.

Article 477. The plaintiff must have legal or equitable title to, or interest in the real property which is the subject matter of the action. He need not be in possession of said property.

Article 478. There may also be an action to quiet title or remove a cloud therefrom when the contract, instrument or other obligation has been extinguished or has terminated, or has been barred by extinctive prescription.

Article 479. The plaintiff must return to the defendant all benefits he may have received from the latter, or reimburse him for expenses that may have redounded to the plaintiff's benefit.

Article 480. The principles of the general law on the quieting of title are hereby adopted insofar as they are not in conflict with this Code.

Article 481. The procedure for the quieting of title or the removal of a cloud therefrom shall be governed by such rules of court as the Supreme Court shall promulgated.

It is a proceeding in equity, the purpose of which is the declaration of the invalidity of a claim on a title or the invalidity of an interest in property adverse to that of the plaintiff, and thereafter to free the plaintiff and all those claiming under him from any hostile claim thereon.

Quieting of title is a common law remedy for the removal of any cloud upon, doubt, or uncertainty affecting title to real property. Whenever there is a cloud on title to real property or any interest in real property by reason of any instrument, record, claim, encumbrance, or proceeding that is apparently valid or effective, but is, in truth and in fact, invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title. In such action, the competent court is tasked to determine the respective rights of the complainant and the other claimants, not only to place things in their proper places, and make the claimant, who has no rights to said immovable, respect and not disturb the one so entitled, but also for the benefit of both, so that whoever has the right will see every cloud of doubt over the property dissipated, and he can thereafter fearlessly introduce any desired improvements, as well as use, and even abuse the property. (Phil-Ville Development and Housing Corporation v. Maximo Bonifacio, et al., G.R. No. 167391, June 8, 2011)

Nature of the action to quiet title

Significantly, suits to quiet title are characterized as proceedings quasi in rem. Technically, they are neither in rem nor in personam. In an action quasi in rem, an individual is named as defendant. However, unlike suits in rem, a quasi in rem judgment is conclusive only between the parties. A proceeding quasi in rem is one brought against persons seeking to subject the property of such persons to the discharge of the claims assailed. (Portic v. Cristobal, G.R. No. 156171, 22 April 2005)

Classifications of actions

• Remedial action – one to remove cloud on title; and
• Preventive action – one to prevent the casting of a (threatened) cloud on the title.

Scope of the action to quiet title

Only real property may be the subject of an action to quiet title. (Pineda, 2009)

Requisites for an action to quiet title

• The plaintiff has legal or equitable title to, or an interest in, the real property. Possession is not required. (NCC, Art. 477)
• To remove a cloud, an instrument, record, claim, encumbrance, or proceeding that appears valid but is actually invalid, ineffective, voidable, or unenforceable must cloud the plaintiff’s title. An action may also be brought to prevent such a cloud from being cast. (NCC, Art. 476)
• The plaintiff returns to the defendant any benefits received from the latter, or reimburses the defendant for expenses that benefited the plaintiff.

Reasons for quieting of title

• Prevent future litigation on the ownership of the property;
• Protect true title & possession;
• To protect the real interest of both parties; and
• To determine and make known the precise state of title for the guidance of all.

Persons who may file an action to quiet title

• Registered owner;
• A person who has an equitable right or interest in the property; or
• The State.

Q: Lim filed in the RTC in Cebu City a petition for the reconstitution of the owner's duplicate copy of OCT No. RO-9969-(O20449), alleging that said OCT had been lost during World War II by his mother, Luisa, who acquired title to it by virtue of a deed of sale, albeit unregistered. On account of the Oños' opposition, and upon order of the RTC, Lim converted the petition for reconstitution into a complaint for quieting of title. The Oños now contend that this action for quieting of title should be disallowed because it constituted a collateral attack on OCT No. RO-9969-(O-20449). Is their contention correct?

A: NO. The attack is direct when the objective is to annul or set aside such judgment, or enjoin its enforcement. On the other hand, the attack is indirect or collateral when, in an action to obtain a different relief, an attack on the judgment is nevertheless made as an incident thereof. The averments readily show that the action was neither a direct nor a collateral attack for Lim was asserting only that the existing title registered in the name of the petitioners' predecessors had become inoperative due to the conveyance in favor of Lim's mother, and resultantly should be cancelled. (Oño vs Lim, G.R. No. 154270, March 09, 2010)

Art. 476. Whenever there is a cloud on title to real property or any interest therein, by reason of any instrument, record, claim, encumbrance or proceeding which is apparently valid or effective but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be prejudicial to said title, an action may be brought to remove such cloud or to quiet the title. An action may also be brought to prevent a cloud from being cast upon title to real property or any interest therein.

Rules in actions for quieting of title

• These put an end to vexatious litigation in respect to property involved; plaintiff asserts his own estate & generally declares that defendant’s claim is without foundation;
• Remedial in nature;
• Not suits in rem nor personam but suits against a particular person or persons in respect to the res (quasi in rem);
• May not be brought for the purpose of settling a boundary disputes;
• Applicable to real property or any interest therein;
• An action to quiet title brought by the person in possession of the property is IMPRESCRIPTIBLE; and
• If he is not in possession, the applicable remedy and prescriptive period depend on the nature of the claim and the circumstances; the 10- and 30-year periods for ordinary and extraordinary acquisitive prescription are not universal deadlines for filing an action to quiet title (Civil Code, Arts. 476–477, 1134 and 1137).

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Quieting of Title remedy or proceeding which has for its purpose an adjudication that a claim of title to realty or an interest thereon, adverse to the plaintiff, is invalid or inoperative, or otherwise defective and hence, the plaintiff and those claiming under him may forever be free of any hostile claim. (Baricuatro, Jr. vs CA, GR No. 105902, 2000)

Reasons:

• Prevent litigation
• Protect true title & possession
• Real interest of both parties which requires that precise state of title be known. (Paras, supra, p. 305)

Action to Quiet Title

Puts an end to vexatious litigation in respect to property involved; plaintiff asserts his own estate and generally declares that the defendant’s claim is without foundation. (Baricuatro, Jr. v. CA, GR No. 105902, 2000)

Quasi In Rem - suits against a particular person or persons in respect to the res; may not be brought for the purpose of settling a boundary disputes.

Applicable to real property or any interest therein. Under Civil Code Article 476, an action to quiet title concerns real property or an interest therein, not personal property.

Note: An action to quiet title is imprescriptible if brought by the person in possession of the property. Otherwise, he must invoke his remedy within the prescriptive period. (Berico v. CA, GR NO. 96306, 1993)

Classifications

• Remedial action to remove cloud on title
• Preventive action to prevent the casting of a (threatened) cloud on the title. (Art. 476)

Requisites of Action to Quiet Title (TICR)

• Plaintiff must have a legal or equitable Title or interest in the real property (Art. 477)
• An existing Cloud in such title to be removed, or a threatened cloud to be prevented from being cast (Art. 476)
• Such cloud must be due to some Instrument, record, claim, encumbrance or proceeding which is apparently valid but is in truth invalid, ineffective, voidable or unenforceable prejudicial to the plaintiff’s title (Art. 476)
• Plaintiff must Return to the defendant all benefits received from the latter or reimburse him for expenses that may have redounded to his benefit. (Art. 479)

When Not Applicable

• Questions involving interpretation of documents;
• Mere written or oral assertions of claims; Exceptions:
• If made in a legal proceeding;
• If it is being asserted that the instrument in the plaintiff’s favor is not what it purports to be;
• Boundary disputes;
• Deeds by strangers to the title, unless purporting to convey the property of the plaintiff;
• Instruments invalid on their face;
• Where the validity of the instrument involves pure questions of law. (Paras, supra, p. 315- 316)

DISTINCTIONS BETWEEN QUIETING TITLE AND REMOVING/PREVENTING CLOUD

Action to Remove Cloud

Intended to procure cancellation, delivery, release of an instrument, encumbrance, or claim coniing a on plaintiff’s title which may be led to injure or vex him in the enjoyment of his title

Cloud - is a semblance of title, either legal or equitable, or a claim or a right in real property, appearing in some legal form but which is, in fact, invalid or which would be inequitable to enforce. (Art. 476)

Ans.