Court Determination in Absence or Presence of Adverse Claim
- If no adverse claim exists and the applicant lacks proper title, the court shall dismiss the application, with a possible order of dismissal without prejudice.
- The applicant can withdraw the application before final decree on court-fixed terms.
- If there is an adverse claim, the court will determine the conflicting interests after evidence.
- The court may dismiss the application if neither party has proper title.
- If a party proves title, the court shall award the land or part thereof to that party and issue an original certificate of title.
- Where the adverse claim is only partial and not properly delimited on the plan, the adverse claimant must file an approved plan for the awarded portion.
- The court will apportion registration expenses between applicant and adverse claimant proportionate to the area awarded, unless the applicant acted in bad faith; if so, no refund is granted.
- For an adverse claim covering the entire lot, refunds include the plan-making cost.
Decree of Confirmation and Registration
- If the court finds either the applicant or adverse claimant has proper title for registration, a decree of confirmation and registration is entered.
- The decree binds and quiets title against all persons and government entities, named or general.
- The decree is not susceptible to reopening due to absence, infancy, or disability of affected persons, nor through proceedings reversing judgments or decrees.
- Exception allows review within one year for those deprived of land through fraud, provided no innocent purchaser for value intervened.
- Innocent purchasers (including lessees, mortgagees, encumbrancers for value) protect the decree's finality.
- Aggrieved persons may seek damages through legal action for fraud in procuring the decree.
Rights of Certificate Holders and Immunity from Incumbrances
- Holders of certificates of title obtained through registration and subsequent purchasers in good faith for value hold title free from encumbrances except those noted in the certificate and certain subsisting exceptions.
- Exceptions include:
- Liens or rights under U.S. or Philippine laws not required to be recorded.
- Taxes due within two years.
- Public highways, ways, private ways, or government irrigation canals not boundary-determined in the certificate.
- Easements or rights appurtenant to registered land remain valid despite failure to register, passing with the land until cut off by proper registration or other means.
Effectivity
- The Act took effect upon approval on December 5, 1929.