a. Adverse Claims and Notice of Lis Pendens

Posting

Posting shall be made by the sheriff in a conspicuous place on the subject land and on the bulletin board of the municipal building of the municipality or city in which the land or portion thereof is situated, at least 14 days before the date of initial hearing.

• Filing of Answer or Opposition to the application by any person whether named in the notice or not (on or before the date of initial hearing, or within such further time as may be allowed by the court.)

Involuntary Dealings that must be Registered

• Attachment; (Sec. 69, P.D. 1529)
• Adverse claim; (Sec. 70, P.D. 1529)
• Sale on execution or levy for taxes or for any assessment; (Sec. 74, P.D. 1529) and
• Notice of lis pendens. (Sec. 76, P.D. 1529)

Effect of the Non-Recording of a Writ of Attachment

An attachment levied on real estate not duly recorded in the Registry of Property is not an encumbrance on the attached property, nor can such attachment unrecorded in the registry, serve as a ground for decreeing the annulment of the sale of the property at the request of another creditor. (Siari Valley Estates, Inc. v. Lucasan, G.R. No. L-13281, 31 Aug. 1960)

Adverse Claims and Notice of Lis Pendens – P.D. No. 1529, secs. 70 and 77

SEC. 70. Adverse claim.—Whoever claims any part or interest in registered land adverse to the registered owner, arising subsequent to the date of the original registration, may, if no other provision is made in this Decree for registering the same, make a statement in writing setting forth fully his alleged right or interest, and how or under whom acquired, a reference to the number of the certificate of title of the registered owner, the name of the registered owner, and a description of the land in which the right or interest is claimed.

The statement shall be signed and sworn to, and shall state the adverse claimant's residence, and a place at which all notices may be served upon him. This statement shall be entitled to registration as an adverse claim on the certificate of title. The adverse claim shall be effective for a period of thirty days from the date of registration. After the lapse of said period, the annotation of adverse claim may be cancelled upon filing of a verified petition therefor by the party in interest: Provided, however, that after cancellation, no second adverse claim based on the same ground shall be registered by the same claimant.

The adverse-claim annotation is not automatically cancelled after 30 days; an interested party must seek its cancellation.

Before the lapse of thirty days aforesaid, any party in interest may file a petition in the Court of First Instance where the land is situated for the cancellation of the adverse claim, and the court shall grant a speedy hearing upon the question of the validity of such adverse claim, and shall render judgment as may be just and equitable. If the adverse claim is adjudged to be invalid, the registration thereof shall be ordered cancelled. If, in any case, the court, after notice and hearing, shall find that the adverse claim thus registered was frivolous, it may fine the claimant in an amount not less than one thousand pesos nor more than five thousand pesos, in its discretion. Before the lapse of thirty days, the claimant may withdraw his adverse claim by filing with the Register of Deeds a sworn petition to that effect.

SEC. 77. Cancellation of lis pendens.—Before final judgment, a notice of lis pendens may be cancelled upon order of the court, after proper showing that the notice is for the purpose of molesting the adverse party, or that it is not necessary to protect the rights of the party who caused it to be registered. It may also be cancelled by the Register of Deeds upon verified petition of the party who caused the registration thereof.

ADVERSE CLAIMS

It is a notice to third persons that any transaction regarding the disputed land is subject to the outcome of the dispute. (Arrazola v. Bernas, G.R. No. L-29740, 10 Nov. 1978)

Purpose of Annotating the Adverse Claim

The purpose of annotating the adverse claim on the title of the disputed land is to apprise third persons that there is a controversy over the ownership of the land and to preserve and protect the right of the adverse claimant during the pendency of the controversy. (Ibid. Arrazola v. Bernas, G.R. No. L- 29740, 10 Nov. 1978)

Prohibition against encumbrance of mortgaged land, without mortgagors’ consent

In this case, rights over the property, which came into existence after the execution of the deed, cannot be annotated as an adverse claim on the title of the land over the mortgagee’s opposition. (Rivera v. Peña, G.R. No. L-11781, March 24, 1961)

Instances when a Claim of Interest is Adverse

• Claimant’s right or interest in registered land is adverse to the registered owner;
• Such right or interest arose subsequent to the date of original registration; and
• No other provision is made in the decree for the registration of such right or claim. (Sec. 70, P.D. No. 1529)

Formal Requisites of an Adverse Claim for Purposes of Registration

• Adverse claimant must state the following in writing:
• His alleged right or interest;
• How and under whom such alleged right of interest is acquired;
• Description of the land in which the right or interest is claimed; and
• Certificate of title number and name of the registered owner.
• Such statement must be signed and sworn to before a notary public or other officer authorized to administer oath; and
• Claimant shall state his residence and a place at which all notices may be served upon him. (P.D. No. 1529, Sec. 70)

Subsequent registration of an adverse claim

Prior registration of a lien creates a preference. Hence, the subsequent annotation of an adverse claim cannot defeat the rights of the mortgagee or the purchaser at the auction sale whose rights are derived from a prior mortgage validly registered.

Q: Laguna West Multi-Purpose Cooperative is a cooperative recognized under Republic Act No. 6657 or the Comprehensive Agrarian Reform Law. It allegedly entered into a joint venture agreement with farmer-beneficiaries through the Certificates of Land Ownership Award (CLOA) in Silang, Cavite. While the respondent was negotiating with the farmer-beneficiaries, petitioner Cathay Metal Corporation entered into Irrevocable Exclusive Right to Buy (IERB) contracts with the same farmer-beneficiaries.

In 1996, respondent caused the annotation of its adverse claim on the farmer-beneficiaries’ certificates of title. Petitioner and the farmer-beneficiaries executed contracts of sale of the properties. Transfer certificates of title were also issued in the name of petitioner in the same year. The annotations in the original titles were copied to petitioner’s titles. Respondent’s Vice-President, Orlando dela Peña, sent two letters to petitioner, informing it of respondent’s claim to the properties. Petitioner did not respond. On September 15, 2000, petitioner filed a consolidated petition for cancellation of adverse claims on its transfer certificates of title with the Regional Trial Court of Tagaytay City. Does the respondent had a claim over the property under the Joint Venture Agreement?

A: NO. The purpose of annotations of adverse claims on title is to apprise the whole world of the controversy involving a property. These annotations protect the adverse claimant's rights before or during the pendency of a case involving a property. It notifies third persons that rights that may be acquired with respect to a property are subject to the results of the case involving it. Section 70 of Presidential Decree No. 1529 or the Property Registration Decree governs adverse claims. It describes an adverse claim as a statement in writing setting forth a subsequent right or interest claimed involving the property, adverse to the registered owner. A claim based on a future right does not ripen into an adverse claim as defined in Section 70 of Presidential Decree No. 1529. A right still subject to negotiations cannot be enforced against a title holder or against one that has a legitimate title to the property based on possession, ownership, lien or any valid deed of transfer. (Cathay Metal Corporation v. Laguna West Multi-Purpose Cooperative, Inc., G.R. No. 172204, February 23, 2015)

Registration of Adverse Claim

By filing a sworn statement with the Register of Deeds of the province where the property is located, setting forth the basis of the claimed right together with other data pertinent thereto. The duty of the Register of Deeds to record the same on the title is ministerial. (Paz Ty Sin Sei v. Jose Lee Dy Piao, G.R. No. L-11271, 28 May 1958)

NOTE: Entry of the adverse claim filed on the day book is sufficient without the same being annotated at the back of the corresponding certificate of title. (Director of Lands v. Reyes, G.R. No. L-27594, 27 Feb. 1976)

Existence of Cloud: (AIP)

• Instrument or record or claim or encumbrance or proceeding which is Apparently valid or effective;
• But is, in truth and in fact, Invalid, ineffective, voidable, or unenforceable, or extinguished (or terminated) or barred by extinctive prescription
• May be Prejudicial to the title. (Paras, supra, p. 302-303)

Effect of the Registration of an Adverse Claim

It renders the adverse claim effective and any transaction regarding the disputed land shall be subject to the outcome of the dispute.

Q: May an adverse claim exist concurrently with a subsequent annotation of a notice of lis pendens?

A: YES, an adverse claim may exist concurrently with a subsequent annotation of a notice of lis pendens. When an adverse claim exists concurrently with a notice of lis pendens, the later notice alone does not extinguish or justify cancellation of the adverse claim. Cancellation of the adverse claim must be sought on a proper basis under P.D. No. 1529, Sec. 70; until cancelled, it remains effective.

Subsequent Registration of an Adverse Claim

A prior registration of a lien creates a preference. Hence, the subsequent annotation of an adverse claim cannot defeat the rights of the mortgagee or the purchaser at the auction sale whose rights are derived from a prior mortgage validly registered.

Q: Laguna West Multi-Purpose Cooperative is a cooperative recognized under R.A. No. 6657 or the Comprehensive Agrarian Reform Law (CARL). It allegedly entered into a joint venture agreement with farmer-beneficiaries through Certificates of Land Ownership Award (CLOA) in Silang, Cavite. While respondent was negotiating with the farmer-beneficiaries, petitioner Cathay Metal Corporation entered into Irrevocable Exclusive Right to Buy (IERB) contracts with the same farmer-beneficiaries.

In 1996, respondent caused the annotation of its adverse claim on the farmer-beneficiaries’ certificates of title. Petitioner and the farmer- beneficiaries executed contracts of sale of the properties. TCTs were also issued in the name of petitioner in the same year. The annotations in the original titles were copied to petitioner’s titles. Respondent’s Vice-President, Orlando dela Peña, sent two letters to petitioner, informing it of respondent’s claim to the properties. Petitioner did not respond. On 15 Sept. 2000, petitioner filed a consolidated petition for cancellation of adverse claims on its TCTs with the RTC of Tagaytay City. Does the respondent have a claim over the property under the Joint Venture Agreement?

A: NO. The purpose of annotations of adverse claims on title is to give notice of the claimant’s asserted interest in registered land. These annotations protect the adverse claimant's rights before or during the pendency of a case involving a property. Registration of an adverse claim does not require a pending case. Sec. 70 of P.D. 1529 or the Property Registration Decree governs adverse claims. It describes an adverse claim as a statement in writing setting forth a subsequent right or interest claimed involving the property, adverse to the registered owner. A claim based on a future right does not ripen into an adverse claim as defined in Sec. 70 of P.D. 1529. A right still subject to negotiations cannot be enforced against a title holder or against one that has a legitimate title to the property based on possession, ownership, lien or any valid deed of transfer. (Cathay Metal Corp. v. Laguna West Multi-Purpose Coop., Inc., G.R. No. 172204, 23 February 2015)

Effect of Non-Registration of an Adverse Claim

The effect of non-registration or invalid registration of an adverse claim renders it ineffective for the purpose of protecting the claimant’s right or interest on the disputed land, and could not thus prejudice any right that may have arisen thereafter in favor of third parties.

Limitations to the Registration of an Adverse Claim

• No second adverse claim based on the same ground may be registered by the same claimant; (Sec. 70, P.D. 1529) and
• A mere money claim cannot be registered as an adverse claim. (Sanchez v. CA, G.R. No. L-40177, 12 Feb. 1976)

Lifespan of a Registered Adverse Claim

The adverse claim shall be effective for a period of thirty (30) days from the date of registration and it may be cancelled.

Effect of the Expiration of the period of Effectivity of an Adverse Claim

The expiration does not ipso facto terminate the claim. The cancellation of the adverse claim is still necessary to render it ineffective; otherwise, the inscription will remain annotated and shall continue as a lien to the property.

Q: May the RD cancel an adverse claim?

A: NO. The RD cannot, on its own, automatically cancel the adverse claim.

NOTE: Before the lapse of 30-day period, the claimant may file a sworn petition withdrawing his adverse claim, or a petition for cancellation of adverse claim may be filed in the proper Regional Trial Court.

Q: What must an interested party do if he seeks the cancellation of a registered adverse claim?

A: to cancel the annotation of the adverse claim on the subject TCTs, Sec. 70 of P.D. 1529 requires the filing of a court action, through a verified petition. The purpose of such court action is to have the annotation of the adverse claim physically removed or erased in the TCT because otherwise, the inscription will remain annotated in the certificate of title. (Star Asset Management Ropoas, Inc. v. Register of Deeds, G.R. No. 233737, 03 Feb. 2021)

A court order is necessary before any annotation in the TCT may be cancelled pursuant to Sec. 108 of P.D. 1529, which provides that no erasure, alteration, or amendment shall be made upon the registration book after the entry of a certificate of title or of a memorandum thereon and the attestation of the same by the Register of Deeds, except by order of the proper trial court. A registered owner therefore should apply by petition to the court in order for the adverse claim to be removed as a recorded annotation in the TCT. (Star Asset Management Ropoas, Inc. v. Register of Deeds, G.R. No. 233737, 03 Feb. 2021)

The compromise agreement embodying the contract to sell the 30 hectares of land, which has been cancelled by virtue of the inability of the buyer to pay the purchase price, can no longer be a ground for the continuous annotation of an adverse claim in the subject TCTs. (Star Asset Management Ropoas, Inc. v. Register of Deeds, G.R. No. 233737, 03 Feb. 2021)

Sale on Execution or for Taxes or for any Assessment

Whenever registered land is sold on execution or taken or sold for taxes or for any assessment or to enforce a lien of any character, or for any costs and charges incident to such liens, any execution or copy of execution, any officer's return, or any deed, demand, certificate, or affidavit, or other instrument made in the course of the proceedings to enforce such liens and required by law to be recorded, shall be filed with the Register of Deeds of the province or city where the land lies and registered in the registration book, and a memorandum made upon the proper certificate of title in each case as lien or encumbrance. (Sec. 74, P.D. 1529).

Q: In 2007, the services of Atty. Dominguez was engaged by Carmelo Africa and his brothers in one case to prevent the Bank of Commerce (B0C) from taking possession of their family homes in Marikina City, Antipolo City, and Quezon City, with a total redemption price of 25 million. Atty. Dominguez charged P250,000.00 or 1% of the redemption price as his acceptance fee. In 2009, Carmelo and his brothers once again sought the legal services of Atty. Dominguez in a suit involving Hanjin Heavy Industries and Construction Co., Ltd.

Meanwhile, BOC filed a petition for cancellation of adverse claim on TCT Nos. 473882 and 473883. This petition was opposed by the spouses Carmelo and Elizabeth Africa (spouses Africa) through Atty. Dominguez. In October 2012, Atty. Dominguez filed before the trial court a Request for Admission of the aforesaid allegations. A month later, Atty. Dominguez manifested that he was no longer representing the spouses Africa as oppositors in the petition for cancellation of adverse claim.

In January 2013, Atty. Dominguez filed a Motion to Fix Attorney's Fees and to Approve Charging (Attorney's) Lien with Motion for Production of Compromise Agreement (Motion to Fix Attorney's Fees). However, the lower courts denied his motion, ruling that trial courts cannot adjudicate money claims in petitions for cancellation of adverse claim and are restricted in the determination of the propriety of cancelling an adverse claim.

Can trial courts rule on money judgments in a petition for cancellation of adverse claim?

A: YES. The trial court may rule on money judgments such as attorney's fees and record and enforce attorney's lien in a petition for cancellation of adverse claim or in a separate action, at the option of the counsel claiming the same. To distinguish, registration or recording of attorney's lien merely recognizes the right of the lawyer to claim from the judgment of the suit, whereas the lien can only be enforced when the money judgment in favor of the counsel's client becomes final and executory. It is to be noted that among the prayers of Atty. Dominguez in his Motion to Fix Attorney's Fees is to register a statement of his lien before the rendition of judgment. If a lien may be enforced in said petition when the money judgment has become final, then the registration of the lien may be granted even prior to the judgment in order to establish the lawyer's claim. The determination and the fixing of attorney's fees may be deferred until the resolution of the case and the finality of the money judgment in favor of the lawyer's client

The language of Section 70 of the Property Registration Decree (PD 1529) is clear; it does not limit the issues that may be resolved by the trial court in a petition for cancellation of adverse claim. (Atty. Aristotle T. Dominguez vs. Bank of Commerce and Spouses Africa, G.R. No. 225207, 29 Sept. 2021, as penned by J. Hernando)

NOTICE OF LIS PENDENS

Lis pendens literally means a pending suit. The doctrine of lis pendens refers to the jurisdiction, power, or control which a court acquires over property involved in a suit, pending the continuance of the action, and until final judgment. (Sps. Po Lam v. CA, G.R. No. 116220, 06 Dec. 2000)

It merely creates a contingency and not a lien. It does not produce any right or interest which may be exercised over the property of another. It only protects the applicant’s rights which will be determined during trial.

NOTE: It is not a lien or encumbrance under our civil law. It is mere cautionary notice to prospective buyers of certain property that said property is under litigation. The annotation of a notice of lis pendens at the back of the original copy of the certificate of title on file with the Register of Deeds is sufficient to constitute constructive notice to purchasers or other persons subsequently dealing with the same property. One who deals with property subject of a notice of lis pendens cannot invoke the right of a purchaser in good faith neither can he acquire better rights than those of his predecessors-in-interest. (Tanchoco v. Aquino, G.R. No. 30670, 17 Jan. 1990)

Purposes of a Notice of Lis Pendens

• Protect the rights of the party causing the registration of the lis pendens; and
• Advise third persons who purchase or contract on the subject property that they do so at their peril and subject to the result of the pending litigation. (Agcaoili, 2006)

NOTE: A notice of lis pendens may involve actions that deal not only with title or possession of a property, but also with the use or occupation of a property. The litigation must directly involve a specific property which is necessarily affected by the judgment. (Agcaoili, 2018)

Q: When may a notice of lis pendens be made and when may it not be resorted to?

Effects of the Annotation of Notice of Lis Pendens

• It keeps the subject matter of litigation within the power of the court until entry of the final judgment to prevent the defeat of the final judgment by successive alienation; and
• It binds a purchaser, bona fide or not, of the land subject of the litigation to the judgment or decree that the court will promulgate subsequently.

However, the filing of a notice of lis pendens does not create a right or lien that previously did not exist. Without a notice of lis pendens, a purchaser is not charged with constructive notice of the pending action merely by reason of that action; whether the purchaser acted in good faith depends on the circumstances. (Lopez v. Enriquez, GR No. 146262, 21 Jan. 2005)

Updated: Good faith is a factual question requiring reasonable precautions, not an automatic consequence of relying on a title without a notice of lis pendens (Heirs of Esquivel v. Clemente, G.R. No. 260049, 4 August 2025).

Q: When may a notice of lis pendens be cancelled?

Ans: Before final judgment, a notice of lis pendens may be cancelled upon order of the court on the grounds stated in Sec. 77, P.D. 1529. It may also be cancelled by the Register of Deeds upon verified petition of the party who caused its registration. The circumstances listed below also include cancellation after final judgment:

• When it is shown that the notice is for the purpose of molesting the rights of the adverse party;
• Where the evidence so far presented by the plaintiff does not bear out the main allegations of the complaint;
• When it is shown that it is not necessary to protect the right of the party who caused the registration thereof;
• Where the continuances of the trial are unnecessarily delaying the determination of the case to the prejudice of the defendant;
• Upon verified petition of the party who caused the registration thereof; or
• After final judgment in favor of defendant, or other disposition of the action such as to terminate finally all rights of the plaintiff to the property involved, the notice is deemed cancelled upon registration of a certificate of the clerk of court stating the manner of disposal thereof. (Sec. 77, P.D. 1529; Valderama v. Arguelles, G.R. No. 223660, 02 Apr. 2018)

NOTE: Section 76 of PD 1529 and Sec. 19, Rule 13 of the ROC impliedly require the registered owner to be a party or be impleaded as a party to such pending case. (Du v. Ortile, G.R. No. 255934, 13 July 2022)

Q: When is a notice of lis pendens deemed cancelled?

Ans: Under Sec. 77 of P.D. 1529, a notice of lis pendens shall be deemed cancelled only upon the registration of a certificate of the clerk of court in which the action or proceeding was pending stating the manner of disposal thereof if there was a final judgment in favor of the defendant or the action was disposed of terminating finally all rights of the plaintiff over the property in litigation. (Cunanan v. Jumping Jap Trading Corp. G.R. No. 173834, 24 Apr. 2009)

Adverse Claim vs. Lis Pendens