By Carla Calleja, MBA, REB
Isa sa pinakamadalas itanong sa akin: “Broker Carla, there’s an adverse claim on our title. What does it mean?” Usually the question comes right when a sale is about to close, and suddenly everyone is nervous. Let’s make it simple.
The story (a dramatization)
Mang Ben and Aling Nena finally found a buyer for their lot. The buyer asked for a fresh certified true copy of the title from the Registry of Deeds. On the back page was a new annotation: an adverse claim filed by a cousin who says part of the lot was promised to him years ago.
A neighbor tried to calm them: “Thirty days lang ‘yan, mawawala rin.” The buyer, meanwhile, put the deal on hold. Who is right? (Names and story are fictional, for illustration only.)
The short answer
An adverse claim is a sworn notice annotated on a Torrens title by someone who says they have a right or interest in the property that goes against the registered owner. It warns the whole world, including buyers and banks, that someone is claiming the land. And no, it does not simply vanish after 30 days. The Supreme Court has said it stays on the title until it is properly cancelled.
What the law says: Section 70 of PD 1529
The Property Registration Decree (Presidential Decree No. 1529), Section 70, allows a person who claims an interest in registered land that is adverse to the registered owner, arising after the original registration, to register that claim when the Decree provides no other way to register it. The claimant must file a sworn written statement that:
- describes the right or interest claimed and how, or from whom, it was acquired;
- identifies the certificate of title, the registered owner and the land; and
- gives the claimant’s residence and an address where notices can be served.
Key rules in the same section:
- The adverse claim is effective for 30 days from registration. After that, it may be cancelled upon a verified petition by a party in interest.
- Any party in interest may also go to the Regional Trial Court where the land is located to ask for cancellation, and the court must hear it promptly. If the claim is invalid, its registration is cancelled.
- If the court finds the claim frivolous, it may fine the claimant from ₱1,000 to ₱5,000.
- Once cancelled, the same claimant cannot register a second adverse claim on the same ground.
- The claimant may also withdraw the claim through a sworn petition to the Register of Deeds.
What the Supreme Court says: Sajonas v. Court of Appeals
In Spouses Sajonas v. Court of Appeals, G.R. No. 102377, July 5, 1996 (Second Division), a couple bought a lot on installment and annotated an adverse claim on the seller’s title in August 1984. Months later, a creditor of the seller had a notice of levy on execution annotated on the same title. When the couple’s deed of sale was registered, the levy was carried over to their new title, and the creditor wanted the lot sold at auction.
The Court of Appeals ruled that the adverse claim had already expired after 30 days, so the levy prevailed. The Supreme Court reversed. It held that an adverse claim does not lapse automatically: “the cancellation of the adverse claim is still necessary to render it ineffective.” Because the adverse claim was still in force when the levy was annotated, the levy “cannot prevail over the existing adverse claim,” and the buyers were treated as purchasers in good faith.
Lesson for Mang Ben: the cousin’s claim will stay on the title until someone has it cancelled, or until the cousin withdraws it.
Step by step: what to do
- Get a certified true copy of the title from the Registry of Deeds where the land is registered, and a copy of the adverse claim document itself.
- Read the claim. Who filed it? What right do they say they have (a sale, an inheritance, a loan, a promise)? When was it annotated?
- Talk first. Many claims end in a settlement or a voluntary withdrawal. If the parties live in the same city or municipality, barangay conciliation may be required before going to court.
- If the claim has no basis, work with a lawyer to file a verified petition to cancel it, in the Regional Trial Court where the land is located.
- If the claimant has a real case, expect it to be fought out in court. A pending case may also be annotated as a notice of lis pendens.
Costs: expect the Registry of Deeds fee for the certified true copy, the court filing fees and your lawyer’s professional fee. These vary, so ask the Registry of Deeds and your lawyer for current amounts before you start.
What this means for you
- Buyers: always check the latest certified true copy before paying anything. If there’s an adverse claim, don’t release payment until it is cancelled, withdrawn or settled in writing.
- Owners and sellers: don’t ignore it. The 30 days do not make it disappear. Act early so your sale or loan isn’t delayed.
- Claimants: file only if you have a real basis. A frivolous claim can be cancelled and fined.
- Documents to prepare: owner’s duplicate title, certified true copy, the adverse claim, tax declaration and real property tax receipts, deeds or contracts related to the claim, valid IDs.
- Where to go: Registry of Deeds, barangay (for conciliation), a lawyer, and the Regional Trial Court where the land is.
FAQ
Does an adverse claim expire after 30 days?
No. Under Sajonas v. CA, it stays effective until it is cancelled by a proper petition or withdrawn.
Can I still sell a property with an adverse claim?
Legally the owner can sell, but the buyer takes the property subject to the claim. Most buyers and banks will wait until it is cleared.
What’s the difference between an adverse claim and lis pendens?
An adverse claim is a sworn notice of a claimed right, even without a court case. Lis pendens is a notice that a court case involving the property is already pending.
Can the claimant file again after it is cancelled?
Not on the same ground. Section 70 bars a second adverse claim by the same claimant based on the same ground.
Ask Broker Carla
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This article is for general information only and is not legal or tax advice. For your specific situation, consult a lawyer or a licensed professional.
