Bureau of Local Government Finance Opinion

March 4, 2005 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully returned, to the Provincial Assessor of Tarlac, Tarlac City, her within preceding Indorsement dated January 7, 2005, requesting the list of requirements in the transfer of Tax Declaration (TD) from the government to a private individual relative to the request of a certain Ruben Z. Soliman for the issuance of a tax declaration over a parcel of land with an area of 3,482,732 square meters situated in Brgy. Aranguren, Capas, that province. Records show that subject land is presently declared for real property taxation in the name of the Republic of the Philippines which is part of the Military Reservation Area (Camp O'Donell). In his letter of August 05, 1999, Ruben Zamora Soliman, Atty-in-Fact of Don Jaime M. Robles, requested the Municipal Assessor of Capas for the assessment of the said properties and for inclusion in the assessment rolls, which are allegedly part of the "Intestate Estate of Don Hermogenes Rodriguez Y. Reyes covered under PSU-2031 with approved plan SWO-41255 of BCN-2005, covered by Titulo Propriedad de Terrenos, Protocol 1891, Royal Decree 01-4 with LRA Expidiente Nos. 408 and 409 on the Land Title, embodied under P.D. No. 1143." In his comment dated September 08, 1999, in response to the request for advice of the Provincial Assessor of Tarlac, the OIC, Provincial Legal Officer of Tarlac submitted among others the following comments: 1. Titulo Propriedad de Terrenos, Protocol 1891, Royal Decree 01-4 issued to Don Hermogenes Rodriguez on November 11, 1916, is no longer valid in view of the passage of P.D. No. 892, which took effect on February 16, 1976; 2. The area of the land claimed in the Municipality of Capas is at most statistically imputable. The land area being claimed in several barangays namely, Sta. Lucia, Aranguren, Sta. Juliana, Maruglo, Bueno, Cut-Cut, O'donnel exceeds by mathematical computation the total land area of the entire municipality; 3. Numerous PDs, Orders and Citations made by the claimant are found to be immaterial and irrelevant, and therefore do not deserve any serious considerations; 4. Subject request for issuance of TD should not be entertained. On December 02, 2003, a certain Judge Lore Valencia-Bagalacsa of the Regional Trial Court, 8th Judicial Region, Branch 34, Iriga City issued an Amended Order on the basis of the Absolute Sale of Real Property executed by and between Henry Rodriguez and Ruben Soliman for the 3,482,732 square meters amounting to P3,500,000.00. IaHSCc The Provincial Assessor in its 1st Indorsement dated August 25, 2004, sought again the advice of the Provincial Legal Officer with regard to the Amended Order, the dispositive portion of that opinion is quoted below: "The instant request of Mr. Ruben Z. Soliman cannot be favorably acted upon but he may only be issued by said office a copy of the existing tax declaration, which is issued in the name of the Republic of the Philippines. Although there is an Order from the Regional Trial Court of Iriga City, the same did not specifically mention, much less ordered, the Provincial Assessor of Tarlac to cancel the Tax Declaration issued in the name of the Republic of the Philippines and to issue a new one in favor of Mr. Ruben Z. Soliman. "However, the Provincial Assessor's Office should refer this matter to the Department of Justice for the reason that the subject property is presently declared in the name of the Republic of the Philippines, for its information and appropriate action." Hence in his reply dated September 20, 2004 to the Municipal Assessor of Capas, the Provincial Assessor advised the said Municipal Assessor not to give due course to the request of Mr. Soliman for the transfer of the Tax Declaration in his favor. However, an order dated October 6, 2004 from the Regional Trial Court (RTC), Iriga City was again received by the Provincial Assessor which states that "the Municipal Assessor of Capas, Tarlac and the Provincial Assessor of Tarlac may now cause the transfer of the subject tax declaration in favor of Ruben Z. Soliman". Subject order was reiterated under a Certificate of Finality issued by the same Judge of Iriga City on January 04, 2005, hence this request. Please be informed in this regard, that Presidential Decree No. 892 issued on February 16, 1976 provides for the discontinuance of the Spanish-Mortgage System of registration and of the use of spanish titles as evidence in land registration proceedings. Section 1 thereof reads as follows: "Sec. 1. The system of registration under the Spanish Mortgage Law is discontinued, and all lands recorded under said system which are not yet covered by Torrens title shall be considered as unregistered lands. "All holders of Spanish titles or grants should apply for registration of their lands under Act No. 496, otherwise known as the Land Registration Act, within six (6) months from the effectivity of this decree. Thereafter, Spanish titles cannot be used as evidence of land ownership in any registration proceedings under the Torrens system. "Hereafter, all instruments affecting lands originally registered under the Spanish Mortgage Law may be recorded under Section 194 of the Revised Administrative Code, as amended by Act 3344;" Relatedly, and with regard to the issuance of an "Order" by the RTC, Iriga City, the provision of Section 1, Rule 4, Rules of Court is quoted hereunder: "Rule 4 Venue of Actions "Section 1. Venue of real action . Actions affecting titles or possessions of real property, or interest thereon , shall be commenced and tried in the proper court which has jurisdiction over the area wherein the real property involved , or a portion thereof, is situated. (Underlining supplied) It is worth mentioning that this Bureau under its BLGF Memorandum, Circular No. 18-2004, copy attached, emphasizes the importance of the payment realty tax; transfer tax to the local treasurer concerned; and the payment of the capital gains tax to the Bureau of Internal Revenue (BIR) before the issuance/transfer of tax declaration in the conveyance of real properties whether previously registered or unregistered, be effected. Lastly and most significantly is the information gathered by this Bureau, as contained in the letter dated February 9, 1999, of the Director, Legal Affairs Department, Land Registration Authority (LRA), copy attached, the pertinent portion of which provides the following: "xxx xxx xxx "In view of the foregoing, there is sufficient evidence to arrive at the conclusion that the documents allegedly supporting the validity or authenticity of "Titulo de Propriedad, Royal Decree No. 01-4 Protocol of 1881 "or" Titulo de Propiedad de Terrenos of 1891, Royal Decree OLT 01.4 Protocol" (which allegedly covers the "Hermogenes Rodriguez Estate" or the "Estate of Hermogenes and Antonio Rodriguez) are spurious." In view thereof the herein request of a certain Ruben Z. Soliman for the issuance of a tax declaration over that parcel of land located in Capas, Tarlac, should not be given due course for reasons abovestated. EcSCHD Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director