Q. Hi Rogie, I have an inquiry about the validity of a Transfer Certificate of Title (TCT) of land situated in the Philippines. There is this Mother who has 2 children
The mother (unemployed) and her Son (who was working abroad temporary but now is unemployed) have signed an extra judicial settlement of real property with waiver of rights which they have signed. This document was entrusted to her sister.
The sister then had all the documents submitted to the Registered of Deeds and a new TCT was issued under her name.
After couple of years, the mother and the children are now disputing the ownership of the sister and maintained that they did not signed any extra judicial settlement of real property with waiver of rights.
The question is this, what will happen to the TCT registered to the sister. What are the rights of the sister now that these two parties (Mother and son) were disputing that they have not conducted any action or signing the said documents.
Is the TCT issued to the sister a valid document? What can she do to have peace of mind in this case? Please confirm what action can the sister do now? Your prompt attention is greatly appreciated. Thank you. EL.
ANS. It’s quite a challenge to answer your queries without the opportunity of perusing the purported Extrajudicial Settlement of the Estate with a Waiver of Rights, by the mother and assigned the same to the sister.
As stated in your letter and by way things are being described, it is apparent, that the mother may have signed the Extrajudicial Settlement of the Estate and at the same in the same document, a Waiver of Rights by the heirs and assigned or conveyed to the sister, wherein the title now of the property in question in under her name. And years later, the mother/heirs have found out and wonder why the property in now in the name of the sister.
If this is so, it is obvious that the so called Extrajudicial Settlement of the Estate with a Waiver of Rights, purportedly executed by the mother and the assignment of rights to the sister could be the legal basis the led to the transfer of the title of the property in the name of the sister.
Assuming that the mother may have signed the Extrajudicial Settlement at the time when the children who are heirs were still minors, then the Extrajudicial Settlement is flawed.
Under the law, Extrajudicial Settlement of Estate of the deceased person may only be affected if and when all the heirs are already of legal age, the decease left no will, no debt and all the heirs agreed to the same. In the absence of the said requisites, the proper remedy in the settling of the estate by heirs shall be by means of judicial settlement and NOT extrajudicial settlement.
Thus, if it turns out that the mother and the children did not signed the purported Extrajudicial Settlement with Waiver of Rights, then it is obvious that there is fraud surrounding the conveyance of the property, and such the signature(s) could had been a forgery and/or a Breach of Trust was made . In these cases, then the mother and her sons have valid cause of action against the sister who now holds title to the property.
In this situation, the mother and the children as heirs and rightful owners thereof can file an Action For RECONVEYANCE of the said property in court. An action for reconveyance of real property granted to rightful owner(s) of land which has been wrongfully or erroneously registered in the name of another. This remedy is only available if the property in question has not been transferred to an innocent purchaser for value, or a buyer in good faith .
Moreover, this remedy must be exercise by the true owner(s) not later than ten(10) years prescriptive period reckon from the date of the issuance of the title to the sister. Otherwise, the action can be dismissed by the court on the ground of prescription. And in the latter case, the remedy of the heirs, is only limited to monetary DAMAGES against the sister. This action is without prejudice to the initiation of criminal proceedings where there is forgery committed by the sister.
Now if on the other hand, where the transfer of the property to the sister by the mother and the heirs were in order, as the said heirs have in fact executed the said Extrajudicial Settlement with Assignment of Rights and assuming further that the children who signed the documents were already of legal age during such period and all the requisites thereof are complied with, and the sister being in good faith, shall be considered as the true and lawful owner of the land in question and the TCT is valid and enforceable for all intents and purposes.
Thus, if in the event that the mother and the children have in fact and in truth executed the Extrajudicial Settlement in favor of the sister voluntarily and for valid consideration , and mother and children shall assert any claim or interest over the said property, then the sister can file an action in Court To Quite Title , to remove a cloud in the title , on the grounds of due execution and valid conveyance of the said property and/or where application the same is already barred by extinctive prescription. ( Art.478, Civil Code).
Considering the legal nature and implications of the issues, it is suggested that the aggrieved party consult their lawyer(s) so that further professional assistance could be engendered. Thank you for writing.
Looking forward you’ll find the above in order.
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