14 July 1978, 84 scra 76

Land Titles and Deeds – Judgment Confirms Title – In whose name may title be dealt with – Sec 29, PD
1529

In 1964, it was proven that a parcel of land located in Sta. Maria, Bulacan, is owned by Mendoza.
Mendoza applied for a title. During pendency of the application before the land registration court,
Mendoza sold the land to Daniel Cruz. The contract of sale was admitted in court in lieu of the pending
application for land title. The registration court rendered a decision in July 1965, ordering the
registration of the two parcels of land in the name of Cruz subject to the usufructuary rights of
Mendoza.

The decision became final and executory. In 1968, however, upon failure of Cruz to pay Mendoza,
Mendoza petitioned that the title issued in the name of Cruz be cancelled. The land registration court
ruled in favor of Mendoza on the ground that the court erred in its earlier decision in issuing the land
title to Cruz – who was not a party to the application of title initiated by Mendoza. Cruz appealed. The
Court of Appeals ruled in favor of Cruz.

ISSUE: Whether or not the title can be dealt with in the name of a “third party”.

HELD: Yes. The Court of Appeals ruling must be sustained. First of all, it was proven that Mendoza
caused the registration in the name of Cruz pursuant to their contract of sale. Second, Mendoza
overlooks Section 29 of the Land Registration Act which expressly authorizes the registration of the
land subject matter of a registration proceeding in the name of the buyer (Cruz) or of the person to
whom the land has been conveyed by an instrument executed during the interval of time between the
filing of the application for registration and the issuance of the decree of title.

“SEC. 29. After the filing of the application and before the issuance of the decree of title by the Chief of
the General Land Registration Office, the land therein described may be dealt with and instruments
relating thereto shall be recorded in the office of the register of deeds at any time before issuance of
the decree of title, in the same manner as if no application had been made. The interested party may,
however, present such instruments to the Court of First Instance instead of presenting them to the
office of the register of deeds, together with a motion that the same be considered in relation with the
application, and the court after notice to the parties, shall order such land registered subject to the
encumbrance created by a said instruments, or order the decree of registration issued in the name of
the buyer or of the person to whom the property has been conveyed by said instruments. . . .

A stranger or a third party may be dealt with in the land registration proceedings. The only
requirements of the law are: (1) that the instrument be presented to the court by the interested party
together with a motion that the same be considered in relation with the application; and (2) that prior
notice be given to the parties to the case. And the peculiar facts and circumstances obtaining in this
case show that these requirements have been complied with in this case.