5/3/2021
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The reconstitution of a certificate of title denotes restoration in the original form and
condition of a lost or destroyed instrument attesting the title of a person to a piece of
land.[23] The purpose of the reconstitution of title is to have, after observing the
procedures prescribed by law, the title reproduced in exactly the same way it has been
when the loss or destruction occurred.[24]
In this case, petitioners sought a reconstitution of title in the name of Lee Liong,
alleging that the transfer certificate of title issued to him was lost or destroyed during
World War II. All the documents recorded and issued by the Register of Deeds, Capiz,
which include the transfer certificate of title issued in the name of Lee Liong, were all
destroyed during the war. The fact that the original of the transfer certificate of title
was not in the files of the Office of the Register of Deeds did not imply that a transfer
certificate of title had not been issued.[25] In the trial court proceedings, petitioners
presented evidence proving the sale of the land from the Dinglasans to Lee Liong and
the latter's subsequent possession of the property in the concept of owner. Thus, the
trial court, after examining all the evidence before it, ordered the reconstitution of title
in the name of Lee Liong.
However, there is a question as to whether Lee Liong has the qualification to own land
in the Philippines.
The sale of the land in question was consummated sometime in March 1936, during the
effectivity of the 1935 Constitution. Under the 1935 Constitution,[26] aliens could not
acquire private agricultural lands, save in cases of hereditary succession.[27] Thus, Lee
Liong, a Chinese citizen, was disqualified to acquire the land in question.[28]
The fact that the Court did not annul the sale of the land to an alien did not validate the
transaction, for it was still contrary to the constitutional proscription against aliens
acquiring lands of the public or private domain. However, the proper party to assail the
illegality of the transaction was not the parties to the transaction.[29] "In sales of real
estate to aliens incapable of holding title thereto by virtue of the provisions of the
Constitution both the vendor and the vendee are deemed to have committed the
constitutional violation and being thus in pari delicto the courts will not afford
protection to either party."[30] The proper party to assail the sale is the Solicitor
General. This was what was done in this case when the Solicitor General initiated an
action for annulment of judgment of reconstitution of title. While it took the Republic
more than sixty years to assert itself, it is not barred from initiating such action.
Prescription never lies against the State.[31]
Although ownership of the land cannot revert to the original sellers, because of the
doctrine of pari delicto, the Solicitor General may initiate an action for reversion or
escheat of the land to the State, subject to other defenses, as hereafter set forth.[32]
In this case, subsequent circumstances militate against escheat proceedings because
the land is now in the hands of Filipinos. The original vendee, Lee Liong, has since died
and the land has been inherited by his heirs and subsequently their heirs, petitioners
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