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7/31/2019 Assurance Fund2

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Assurance Fund


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ASSURANCE FUND OUTLINE

VALUEINSTANCES

PAID TO WHOM

REGISTER OF DEEDSNATIONAL TREASURER

CLAIMS AGAINST ASSURANCE FUNDAGAINST WHOM ACTION IS FILED

JUDGMENT

GENERAL FUNDSUBROGATION

UNRECOVERABLE LOSSES

LIMITATION OF ACTION


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ASSURANCE FUND Sec 93

= 0.25[(0.01) X]Where: Xis the Assessed Value of the real estate (lastassessment for taxation purposes); or fair valuation declared by

two disinterested persons (if its not been assessed for taxation

Entry of a certificate of title in the name of theregistered owner

Original registration on the OCT of a building orotherimprovements on the land

Entry of a certificate pursuant to any subsequenttransfer of registered land

PAID TO WHOM

Register of Deeds paid to the NationalTreasurer


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Received by the REGISTER ofDEEDS and paid to the

NATIONAL TREASURERand

keep it in an ASSURANCE FUND

-may be INVESTED (manner andform authorized by law)

-Condition and Income of the Fund isreported annually to the

COMMISSIONER OF THE

BUDGET


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RATIONALEFor Torrens system to be given stability,

litigations must terminate at some definitepoint, however, those unjustly deprivedof their rights over real property by reason

of the operation of our registration lawsmust be afforded REMEDIES.

REMEDIES1. Suit for reconveyance of property

2. Action forrecovery of damages againstthe party who registered through fraud

3. Action against the National Treasurer forrecovery of damages from theAssurance Fund, in case ofinsolvency ofthe party


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CLAIMS AGAINST ASSURANCE FUNDREQUISITES for Recovery from the Fund:

1. The person sustains loss or damage,or is deprived of any estate or interest inland

2. The land was brought under theoperation of the Torrens System afteroriginal registration

3. Through Fraud, Error, Omission, MistakeorMisdescription in a certificate of title or

entry or memorandum in the registrationbook

4. Without negligence on his part5. Barred or precluded from bringing an

action for recovery of such land or estate

or interest therein


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REQUIREMENTS1. (OCT) Registered owner/ (TCT)

Innocent purchasers in good faithand for value

2. No negligence

INAPPLICABILITY

1. Plaintiff is solely responsible (DBPvs Bautista)

2. Negligence in protecting interest(Torres vs CA, Entrusting Certificate of

Title to another, Joaquin vs Madrid)


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RECORDED MORTGAGE ISPROTECTED EVEN IF TITLE ISSUBSEQUENTLY NULLIFIED

Blanco v EsquierdoThe bank is an innocent mortgagee for value

because the certificate of title was in the name

of the mortgagor when the land was

mortgaged by her to the bank. As mortgagee,

it had the right to rely on what appeared in thecertificate. The remedy is to bring an action

for damages against those causing the fraud,

and if insolvent, against the Treasurer of the

Philippines for the recovery of damages

against the ASSURANCE FUND.


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AGAINST WHOM ACTION IS

FILED Sec 96

Recover forthe loss or

damage orfor

deprivationof land or ofany estate or

interest

FraudNegligenceOmissionMistake or

misfeasance

Court PersonnelRegister of Deeds

His deputyOther employeesof the Registry inperformance of

their duties

Persons otherthan those

mentioned above

Action Grounds Committed by InstitutedAgainst

REGISTER

OF DEEDS&

NATIONALTREASURER

Above+

Otherperson/s

Defended by: SOLICITOR GENERAL with the aid of the FISCAL


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PD 1529 Sec 96

The PLAINTIFF must:-Allege the basis of action

-Specify the details of loss, damage or

deprivation and market value of the

propertyThe COURT shall:-Consider the report ofLRAAdministrator

NOTE:NO DEPRIVATION, NO RECOVERY

Treasurer of the Phils vs CA

NO RECOVERY if with NEGLIGENCE


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PD 1529 Sec 97 Judgment

Execution shall first issue againstthe defendants other than the Registerof Deeds and National Treasury

Ifunsatisfied (amount due cannot becollected from the land or personal

property of defendants), the damages

shall be assessed against the AssuranceFund

The plaintiff cannot recover more than the

FAIR MARKET VALUE OF THE LAND atthe time he suffered the loss, damage or

deprivation


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ASSURANCE FUND Sec 98-99

GENERAL FUND-Any funds available in the treasury not

appropriated

-Used when the Assurance Fund is

NOT SUFFICIENT

SUBROGATION-The Republic of the Philippines shall

be subrogated to the rights of theplaintiff against any other parties orsecurities wheneverpayment has

been made by the National

Treasurer


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REGISTER OF DEEDS AS PARTY ININTEREST

Register of Deeds upon authority of

the LRA Administrator is a proper partyto file action for annulment or

amendment of title(Eagle Realty Corp vs Republic)

The government is charged with the duty to

preserve the integrity of the Torrens System

and protect the Assurance Fund


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UNRECOVERABLE LOSSES

-Those arising fromBREACH OF TRUST, express orimplied (Guaranteed Homes, Inc vs Valdez)

-Those by any MISTAKE INRESURVEY orSUBDIVISION

(unlawful enlargement or expansion)


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LIMITATION OF ACTIONShould be instituted within six (6)

years from the time the right to bringsuch action FIRST occurred

(Enriquez vs Enriquez)

-Shall survive to the legal representative of the

person sustaining the loss or damage

-if the person entitled to bring the action is aminor or insane or imprisoned or under legal

disability, such person or anyone claiming from ,

by or under him may bring the proper action at

any time within two (2) years after such disabilityhas been removed

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