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.
 

TWO ACTIONS ARE BEING REFERRED TO IN THESE PROVISIONS

1.    REMEDIAL—action to remove cloud or to quiet title
2.    PREVENTIVE—action to prevent a future cloud or doubt
 

EXISTENCE OF A CLOUD

The cloud on title exists because
1.    Of   an   instrument   or   record   or   claim   or   encumberance   or proceeding
2.    Which is apparently valid or effective
3.    But  is  in  truth  and  in  fact,  invalid,  ineffective,  voidable  or unenforceable or extinguished or barred by extinctive prescription
4.    And may be prejudicial to the title
 

RIGHT OF A PROPERTY OWNER TO HAVE CLOUDS ELIMINATED

1.    That their respective rights be determined
2.    Not  only  to  place  things  in  their  proper  place,  to  make  the  one who has no rights to said immovable respect and not disturb the other
3.    But also for the benefit of both
4.    So that he who has a right would see every cloud of doubt over the property displaced
5.    And he could afterwards without fear introduce the improvements he  may  desire,  to  use  and  even  to  abuse  the  property  as  he deems best
 

REASONS FOR ALLOWING THE ACTION

1.    The prevention of litigation
2.    The protection of the true title and possession
3.    The promotion of right and justice
 
N.B: the nature of the action for quieting of title is an action in personam
 

DOES AN ACTION FOR QUIETING OF TITLE PRESCRIBE?

It depends
1.    If the plaintiff is in possession of the property, the action doesn't prescribe
2.    If the plaintiff is not in possession of the property, the action may prescribe.  The period would be either 10 or 30 years.  It may also be barred by laches.  
 
Art.  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.
 

NECESSARY FOR TITLE OF PLAINTIFF

     Plaintiff  must  have  either  equitable  or  legal  ownership  over  the property 

Art.  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.
 
Art. 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.
 
N.B:  General rule based on equity 

 
Art. 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.
 
Art. 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.