Limit on Contributions to Assurance Fund

Section 1 amends Sections 93 and 95 of Presidential Decree No. 1529 (Section 1).
The amendment is directed specifically to the collection of contributions to the Assurance Fund and to the action for compensation from the Assurance Fund (Section 1, Section 1 (amending Sections 93 and 95)).

The law limits when contributions to the Assurance Fund are collected by tying payment to the entry of a certificate of title in the name of the registered owner and to the original registration of buildings or other permanent improvements on registered land (Section 1 amending Section 93).
The law maintains that courts retain authority to address undervaluation during valuation-related proceedings (Section 1 amending Section 93).

Upon the entry of a certificate of title in the name of the registered owner, there shall be paid to the Register of Deeds a contribution to the Assurance Fund (Section 1 amending Section 93).
Upon the original registration on the certificate of title of a building or other permanent improvements on the land covered by the certificate, the same contribution is due (Section 1 amending Section 93).
The contribution equals one-fourth of one percent (¼ of 1%) of the assessed value of the real estate, based on the last assessment for taxation purposes (Section 1 amending Section 93).
The assessed value basis is the last assessment for taxation purposes (Section 1 amending Section 93).

Where the land involved has not yet been assessed for taxation, its value for purposes of the Decree is determined by the sworn declaration of two disinterested persons (Section 1 amending Section 93).
The sworn declarations must state that the value fixed is, to the declarants’ knowledge, a fair valuation (Section 1 amending Section 93).
The valuation submitted through sworn declarations is subject to judicial adjustment during the hearing (Section 1 amending Section 93).

Nothing in the amended Section 93 limits the court’s power to increase the valuation of the property if, during the hearing, it appears that the value stated is too small (Section 1 amending Section 93).

A person who, without negligence on his part, sustains loss or damage or is deprived of land or any estate or interest therein may bring an action for recovery of damage payable out of the Assurance Fund (Section 1 amending Section 95).
The deprivation or loss must arise in consequence of the bringing of the land under the operation of the Torrens system, or arising after original registration (Section 1 amending Section 95).
The claimant must show the loss or deprivation occurred through fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title (Section 1 amending Section 95).
The claimant must be one who, by the provisions of the Decree, is barred or otherwise precluded under the provision of any law from bringing an action for recovery of the land or estate or interest (Section 1 amending Section 95).
The action is brought in any court of competent jurisdiction for recovery of damage to be paid out of the Assurance Fund (Section 1 amending Section 95).

The law takes effect upon its approval on June 24, 1983 (Section 2).