Republic vs. St. Augustine Realty and Development Corporation

G.R. No. 268461
R.A. 26: Encumbrance removal on reconstituted title allowed without publication after 2 years & no adverse claims.
torrens title reconstitution encumbrance

Case Digest (G.R. No. 268461)

Facts:

Republic of the Philippines v. St. Augustine Realty and Development Corporation, G.R. No. 268461, April 07, 2025, Supreme Court Third Division, Singh, J., writing for the Court.

The respondent, St. Augustine Realty and Development Corporation (SARDC), is the registered owner of several parcels in Barangay Malamig, Bustos, Bulacan, covered by Transfer Certificate of Title (TCT) Nos. 039-2015005913 to 039-2015005921 and 039-2016014452 (the subject titles). These subject titles were derived from TCT No. RT-73496 (T-34599), which was administratively reconstituted at the Registry of Deeds of the Province of Bulacan with approval in July 2004. The reconstituted titles bore an encumbrance pursuant to Section 7 of Republic Act No. 26 (RA 26) reserving any rights noted in the original that were not entered on the reconstituted titles.

On June 1, 2018, SARDC filed a Petition for Cancellation of Encumbrance before Branch 82, Regional Trial Court (RTC), Malolos, Bulacan, invoking Sections 7 and 9 of RA 26 to remove the annotation on the subject TCTs. The RTC, in a decision dated March 9, 2020, granted the petition and ordered the Register of Deeds to cancel the encumbrance, reasoning that the two-year period provided in Section 9 had already lapsed (the court found the two-year period expired in July 2006) and no claims or interests had been asserted in the interim.

The Office of the Solicitor General (OSG) appealed to the Court of Appeals (CA), arguing the RTC lacked jurisdiction because SARDC failed to comply with the publication and posting requirements in Section 9 of RA 26, which the OSG maintained were mandatory for jurisdiction in an in rem proceeding. The CA, in CA-G.R. CV No. 115979, denied the OSG’s appeal by decision dated July 28, 2023, affirming the RTC’s conclusion that if a petition to remove the Section 7 reservation is filed more than two years after administrative reconstitution and no claims were brought under Section 8, the publication and posting requirements are dispensed with.

The OSG filed a Petition for...(Pro-only)

Issues:

  • In a petition to remove an encumbrance annotated on an administratively reconstituted certificate of title under Section 7 of RA 26, may the mandatory publication and posting requirements of Section 9 be dispensed with if the registered owner files the petition more than two years after administrative reconstitution and no claims or interests were asserted ...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)
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