Action For Reconveyance

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Action for reconveyance

After the lapse of one year, a decree of registration is no longer open to review or attack,
although its issuance is attended with fraud.[53] This does not mean, however, that the
aggrieved party is without remedy at law. If the property has not as yet passed to an innocent
purchaser for value, an action for reconveyance is still available. The sole remedy of the land
owner whose property has been wrongfully or erroneously registered in another’s name is, after
one year from the date of the decree, not to set aside the decree, but, respecting the decree as
incontrovertible and no longer open to review, to bring an ordinary action in the ordinary court of
justice for reconveyance or, if the property has passed into the hands of an innocent purchaser
for value, for damages.[54]

It has been held that an original owner of registered land may seek annulment of the transfer
thereof on the ground of fraud and the proper remedy is reconveyance.[55] An action for
reconveyance is a legal and equitable remedy that seeks to transfer or reconvey property,
wrongfully registered in another person’s name, to its rightful owner. To warrant reconveyance
of the land, the plaintiff must allege and prove, among others, ownership of the land in dispute
and the defendant’s erroneous, fraudulent or wrongful registration of the property.[56] In the
action for reconveyance, the decree of registration is highly respected as incontrovertible; what
is sought instead is the transfer of the property wrongfully or erroneously registered in another’s
name to its rightful owner or to the one with a better right.[57]

In New Regent Sources, Inc. v. Tanjuatco[58], the Court enumerated the four requisites that
must concur for an action for reconveyance to prosper, to wit:

“To warrant a reconveyance of the land, the following requisites must concur: (1) the action
must be brought in the name of a person claiming ownership or dominical right over the land
registered in the name of the defendant; (2) the registration of the land in the name of the
defendant was procured through fraud or other illegal means; (3) the property has not yet
passed to an innocent purchaser for value; and (4) the action is filed after the certificate of title
had already become final and incontrovertible but within four years from the discovery of the
fraud or not later than 10 years in the case of an implied trust. x x x.”

Reconveyance is based on Section 53 of P.D. 1529 which provides that in all cases of
registration procured by fraud, the owner may pursue all his legal and equitable remedies
against the parties to such fraud without prejudice, however, to the rights of any innocent holder
for value of a certificate of title. In civil law, the basis of an action for reconveyance is the trust
created by virtue of Art. 1456 of the Civil Code which provides that a person acquiring property
through fraud becomes by operation of law a trustee of an implied trust for the benefit of the real
owner of the property. The presence of fraud creates an implied trust in favor of the plaintiffs,
giving them the right to seek reconveyance of the property from the private respondents. The
aggrieved party may file an action for reconveyance based on implied or constructive trust,
which prescribes in ten years from the date of the issuance of the Certificate of Title over the
property provided that the property has not been acquired by an innocent purchaser for value.
[59]

While it is true that an action for reconveyance can prescribe or can be barred by statute of
limitations, an action for reconveyance based on a void contract is imprescriptible.[60] Thus, the
action based on a fictitious, fraudulent or forged deed may be brought by the aggrieved party at
any time.[61]

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