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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
An adverse claim serves as a notice to third parties that a person is asserting a claim or interest in registered land adverse to the registered owner, or to someone whose right is annotated on the certificate of title. This annotation is entered on the title to protect the claimant’s rights, particularly when no other provision of law is available for such protection. The adverse claim remains effective for thirty (30) days from registration, unless earlier cancelled by the Register of Deeds upon petition of the interested party or by court order. After expiration, it may be re-annotated if the claimant still believes in the validity of the claim.
An adverse claim is a legal remedy provided under Section 70 of Presidential Decree No. 1529, otherwise known as the Property Registration Decree. It serves as a notice to third parties that a person is asserting a claim or interest in registered land adverse to the registered owner, or to someone whose right is annotated on the certificate of title.
The purpose of an adverse claim is to safeguard the interest of a person claiming a right over registered land by providing constructive notice to all persons dealing with the property that such a claim exists.
Filing an Adverse Claim
To file an adverse claim, the claimant must submit a sworn statement to the Register of Deeds where the property is registered. The sworn statement must:
- Set forth fully the alleged right or interest being claimed;
- Indicate how or under whom such right or interest was acquired;
- Refer to the certificate of title number of the registered owner; and
- Describe the land in which the right or interest is claimed.
Upon receipt, the Register of Deeds shall annotate the adverse claim on the certificate of title. This annotation serves as constructive notice to third parties of the claimant’s interest in the property.
The adverse claim shall be effective for a period of thirty (30) days from the date of registration, unless earlier cancelled by the Register of Deeds upon petition of the interested party or by court order. After expiration, it may be re-annotated if the claimant still believes in the validity of the claim.
Effects of an Adverse Claim
Once an adverse claim is annotated on the certificate of title, it serves as a notice or warning to third parties—including potential buyers, mortgagees, or lenders—that another person is asserting an interest or right over the registered property adverse to that of the registered owner.
However, the annotation of an adverse claim does not determine ownership or validate the claimant’s right. Instead, it preserves the claimant’s rights and maintains the status quo until the matter is settled through proper legal proceedings.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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