Under the Philippine agrarian reform program, particularly for lands acquired under Presidential Decree No. 27 (PD 27) in 1980, the original title is not held by the Land Bank of the Philippines (LBP). Instead, the title is transferred to the agrarian reform beneficiary (ARB) with a lien/mortgage in favor of LBP until full payment of amortizations. Here’s a detailed clarification:
1. Ownership and Title Transfer
- Under PD 27 and Executive Order No. 228 (1987), farmer-beneficiaries are deemed full owners of the land as of October 21, 1972, even if amortizations are ongoing. The title is issued in the beneficiary’s name (e.g., via an Emancipation Patent or CLOA) but annotated with a mortgage lien in favor of LBP.
- Example: If your grandfather received the land in 1980, the title would have been transferred to his name, but LBP retains a security interest via the mortgage lien.
2. Role of LBP’s Mortgage Lien
- The lien ensures that LBP can foreclose if the beneficiary defaults on payments. Specifically:
- Failure to pay three annual amortizations allows LBP to initiate foreclosure.
- The lien remains until full payment, after which it is lifted, and the title becomes “clean”.
- Key provision: “A lien by way of mortgage shall exist in favor of LBP on all lands it has financed… until amortizations are paid in full”.
3. Post-Payment Process
- Once amortizations are fully paid, the beneficiary or heirs must:
- Secure a Certificate of Full Payment from LBP.
- Request LBP to issue a Release of Mortgage.
- Register the release with the Registry of Deeds to remove the lien from the title.
4. Exceptions and Recent Reforms
- Under the New Agrarian Emancipation Act (2023), unpaid amortizations for lands awarded under PD 27 and RA 6657 were condoned, effectively extinguishing LBP’s lien for qualified beneficiaries. If your grandfather’s obligations were waived, the lien may no longer apply.
Summary
Land Bank of the Philippines does not physically hold the title, it maintains a legal claim (via mortgage lien) on the property until amortizations are fully paid. The title remains in the beneficiary’s name but with annotations reflecting LBP’s interest. Full payment or condonation removes this encumbrance.
You can verify whether your grandfather’s land title is still with Land Bank or has been transferred by following these steps:
How to Verify the Status of the Land Title
1. Request a Certified True Copy (CTC) from the Registry of Deeds
- The most reliable way to check the status and current holder of a land title is to request a Certified True Copy from the Registry of Deeds (RD) where the property is registered.
- The CTC will show:
- The current registered owner’s name.
- All annotations, such as mortgages, liens, or encumbrances—including any in favor of Land Bank.
- Any transfers of ownership or release of mortgage.
2. Examine the Annotations on the Title
- Look for mortgage annotations or liens in favor of Land Bank. If present, this means Land Bank still holds a legal claim (mortgage/lien) on the land, even if the title is in your grandfather’s (or heirs’) name.
- If the mortgage or lien has been released (e.g., after full payment), there should be a corresponding annotation of release or cancellation of mortgage.
3. Check Online via the Land Registration Authority (LRA)
- You can use the LRA’s online services (e.g., e-Titling System, AHLT, Property Registration System) to verify the title’s status and see if there are any encumbrances or if the title has been transferred.
- Access the LRA website and use the online verification service, entering the title number and other details as required.
4. Physical Inspection of the Owner’s Copy
- If you have the owner’s duplicate copy, check the annotations section for any mortgage or lien entries in favor of Land Bank.
Key Points
- Land Bank does not physically hold the title; rather, if there is an outstanding loan or amortization, a mortgage or lien in favor of Land Bank is annotated on the title.
- The Registry of Deeds is the official custodian of land records. The CTC from the RD is the definitive proof of the current status of the title, including any encumbrances or transfers.
- If the mortgage has been paid in full and properly released, the annotation should be cancelled, and the title will show the registered owner without Land Bank’s claim.
What to Do Next
- Visit the Registry of Deeds where the property is located and request a Certified True Copy of the title.
- Review the CTC for any annotations related to Land Bank.
- If you see a mortgage or lien in favor of Land Bank, the obligation may still be outstanding or not yet released.
- If there is a release annotation, the title is already cleared and fully transferred to the registered owner.
In summary: The only way to definitively know if the title is still encumbered by Land Bank or has been fully transferred is to obtain and review the Certified True Copy from the Registry of Deeds. This document will show all current and past encumbrances, including any mortgage to Land Bank and its release, if applicable.
If the original land title cannot be located despite fulfilling liens (e.g., Land Bank mortgage) and tax obligations, beneficiaries must initiate judicial reconstitution to replace the lost title. Here’s the required procedure:
1. File an Affidavit of Loss
- Execute a notarized affidavit detailing the circumstances of the loss (e.g., when/where it was last seen, efforts to recover it).
- Submit this affidavit to the Registry of Deeds (RD) where the property is registered. The RD will annotate the loss on their records.
2. Obtain a Certified True Copy (CTC) of the Title
- Request a CTC from the RD to confirm the title’s current status, annotations (e.g., released liens), and ownership details.
- If the RD’s copy is also missing, gather secondary evidence:
- Tax declarations and receipts (proving ownership and payment history).
- Survey plans, deed of sale, or other documents linking beneficiaries to the property.
3. File a Petition for Judicial Reconstitution
- Engage a lawyer to draft and file a verified petition in the Regional Trial Court (RTC) where the property is located.
- The petition must include:
- Proof of ownership (CTC, tax documents).
- Affidavit of loss.
- Evidence that liens (e.g., Land Bank’s mortgage) have been extinguished (e.g., Release of Mortgage from LBP).
4. Publication and Notification
- The court will order publication of the petition in a newspaper of general circulation and post notices in public areas near the property.
- Adjacent landowners, government agencies (e.g., LRA, LBP), and other interested parties are notified to allow objections.
5. Court Hearing and Decision
- Attend hearings to present evidence (e.g., testimony, documents).
- If the court is satisfied, it will issue an order for reconstitution, directing the RD to issue a new title.
- The new title will reflect the beneficiary’s ownership without encumbrances if liens were properly released.
6. Registration of the Reconstituted Title
- Submit the court order to the RD to cancel the lost title and issue a reconstituted owner’s duplicate certificate.
- Processing typically takes 1–1.5 years, depending on court schedules and RD efficiency.
Key Considerations
- Costs: Include court fees (~₱5,000–₱10,000), publication fees (~₱3,000–₱5,000), and legal fees.
- Post-Reconstitution: Ensure the new title is safeguarded. Store digital/physical copies and update heirs’ details if ownership transfers occur.
For beneficiaries, judicial reconstitution is the only legally valid path to replace a lost title, even after liens are resolved. Consult a lawyer to navigate procedural nuances and avoid delays.
Based on available information, hiring a lawyer to handle the entire judicial reconstitution process of a lost land title in the Philippines typically involves the following cost components and estimates:
Estimated Lawyer’s Fees for Reconstitution of Title
- Range: ₱30,000 to ₱100,000 or more
The wide range depends on:- Complexity of the case
- Lawyer’s experience and reputation
- Number of court appearances and required submissions
- Geographic location of the property and court jurisdiction
- Some lawyers may charge a flat fee covering drafting petitions, coordinating publication, attending hearings, and liaising with the Registry of Deeds, while others may bill per appearance or hourly.
Other Major Costs to Consider
| Cost Type | Estimated Amount (₱) | Notes |
| Court Filing Fees | Several thousand to tens of thousands | Varies by assessed property value and court rules |
| Publication Fees | ₱5,000 to ₱20,000+ | Mandatory notice in newspaper for consecutive weeks |
| Notarial and Documentary Fees | ₱1,000 to ₱5,000+ | For affidavits, certifications, and document copies |
| Registry of Deeds Fees | ₱1,000 to ₱5,000+ | For registration of court order and issuance of new title |
| Survey or Technical Fees (if needed) | Variable, ₱5,000+ | Required if new or updated land survey is necessary |
Summary
- Total estimated cost (including lawyer’s fees, court, publication, and other expenses) can range from approximately ₱50,000 to ₱150,000 or more depending on case complexity and locality.
- The process can take several months to over a year, so fees may be spread out over time.
- Hiring a reputable lawyer ensures proper handling of the case, minimizing delays and legal risks.
Recommendation
- Consult with a few property lawyers to get detailed fee quotes and payment terms.
- Confirm what services are included in the quoted fees (e.g., court appearances, document preparation, publication coordination).
- Budget for additional miscellaneous expenses beyond legal fees.
This cost estimate provides a realistic expectation for beneficiaries seeking to obtain a reconstituted land title through judicial proceedings in the Philippines.