Amendment to Land Registration Act: Title Confirmation

Act No. 3630 amends Section 38 of Act No. 496, titled Land Registration Act.
The operative rules in Section 38 govern the effect of a court decree of confirmation and registration after the required hearing.

Section 38 establishes that a decree of registration binds the land and quiets title subject only to the exceptions in Section 39.

After hearing, if the court finds that the applicant or adverse claimant has title as stated in the application or adverse claim and is proper for registration, the court enters a decree of confirmation and registration (Section 38).
Every decree of registration binds the land and quiets title thereto, subject only to the exceptions stated in the following section (Section 38).

A decree of registration is conclusive upon and against all persons, including the Insular Government and all its branches, whether mentioned by name or included under “To all whom it may concern” (Section 38).
The decree of registration is not opened because of the absence, infancy, or other disability of any person affected (Section 38).
Upon expiration of the one-year review period, every decree or certificate of title issued under Section 38 becomes incontrovertible (Section 38).

Any person deprived of land or any estate or interest by a decree of registration obtained by fraud may file a petition for review in the Court of First Instance within one year after entry of the decree (Section 38).
If an innocent purchaser for value has acquired an interest, the decree of registration shall not be opened, but it remains in full force and effect forever, subject only to the right of appeal provided earlier (Section 38).

When the phrase “innocent purchaser for value” or an equivalent phrase occurs in Act No. 496, it is deemed to include an innocent lessee, mortgagee, or other encumbrancer for value (Section 38).

A proviso provides that no decree or certificate of title issued to persons not parties to the appeal shall be cancelled or annulled (Section 38).
Any person aggrieved by such a decree may pursue a remedy by action for damages against the applicant or any other person for fraud in procuring the decree (Section 38).