BATASnatin LIVE Free Legal Advice

BATASnatin Live! Visit our YouTube channel for more details!

 

ASSURANCE FUND

Section 93. Contribution to Assurance Fund. Upon the entry of a certificate of title in the name of the registered owner, and also upon the original registration on the certificate of title of a building or other improvements on the land covered by said certificate, as well as upon the entry of a certificate pursuant to any subsequent transfer of registered land, there shall be paid to the Register of Deeds one-fourth of one per cent of the assessed value of the real estate on the basis of the last assessment for taxation purposes, as contribution to the Assurance Fund. Where the land involved has not yet been assessed for taxation, its value for purposes of this decree shall be determined by the sworn declaration of two disinterested persons to the effect that the value fixed by them is to their knowledge, a fair valuation.

Nothing in this section shall in any way preclude the court from increasing the valuation of the property should it appear during the hearing that the value stated is too small.

Section 94. Custody and investment of fund. All money received by the Register of Deeds under the preceding section shall be paid to the National Treasurer. He shall keep this money in an Assurance Fund which may be invested in the manner and form authorized by law, and shall report annually to the Commissioner of the Budget the condition and income thereof.

The income of the Assurance Fund shall be added to the principal until said fund amounts to five hundred thousand pesos, in which event the excess income from investments as well as from the collections of such fund shall be paid into the National Treasury to the account of the Assurance Fund.

Section 95. Action for compensation from funds. A person who, without negligence on his part, sustains loss or damage, or is deprived of land or any estate or interest therein in consequence of the bringing of the land under the operation of the Torrens system of arising after original registration of land, through fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book, and who by the provisions of this Decree is barred or otherwise precluded under the provision of any law from bringing an action for the recovery of such land or the estate or interest therein, may bring an action in any court of competent jurisdiction for the recovery of damages to be paid out of the Assurance Fund.

CLAIMS AGAINST THE ASSURANCE FUND

> Section 95 provides a remedy where a person who sustains loss or damage or is deprived of any estate or interest in land in consequence of the operations of the Torrens system of registration, without negligence on his part, may bring an action for the recovery of damages to be paid out of the Assurance fund

> Public policy demands that those unjustly deprived of their rights over real property by reason of the operation of our registration laws be afforded remedies

> According to the principles of the Torrens system, it is a condition sine que non that the person who brings an action for damages against the Assurance fund be the registered owner, and as to holders of transfer certificates of title that they be innocent purchasers in good faith and for value

> There must also be a showing of loss or damage or deprivation of any land or interest thereon by the operation of PD1529

> Where plaintiff is solely responsible for the plight in which it finds itself, the Director of Lands and the National Treasurer are exempt from any liability

REQUISITES FOR RECOVERY FROM THE ASSURANCE FUND

1. That a person sustains loss or damage, or is deprived of any estate or interest in land

2. On account of bringing of land under the operations of the Torrens system arising after the original registration

3. Through fraud, error, omission, mistake, or misdescription in a certificate of title or entry or memorandum in the registration

4. Without negligence on his part

5. And is barred or precluded from bringing an action for the recovery of such land or estate or interest therein

RECORDED MORTGAGE IS PROTECTED EVEN IF TITLE IS SUBSEQUENTLY NULLIFIED