The Supreme Court ruled that for an individual or corporation to register land based on possession, they must prove open, continuous, exclusive, and notorious possession since June 12, 1945, or earlier. The mere presentation of tax declarations and a CENRO certification, without solid proof of continuous occupation for the period mandated by law, is not enough to confirm land ownership. This case underscores the stringent requirements for land registration based on historical possession and the necessity of proving that possession extends back to the specific date established by law.

Can Tax Declarations Alone Secure Land Title? A Test of Historical Possession

In Republic of the Philippines v. Hanover Worldwide Trading Corporation, the central issue revolved around Hanover’s application for land registration based on its alleged possession and ownership of a parcel of land in Consolacion, Cebu. Hanover claimed ownership through a deed of sale and presented evidence including tax declarations, a survey plan, and a CENRO certification regarding the land’s alienability. The Republic opposed the application, arguing that Hanover failed to prove open, continuous, exclusive, and notorious possession since June 12, 1945, as required by law, and that Hanover, as a private corporation, was disqualified from holding alienable lands of the public domain.

The legal framework for this case rests on two critical provisions. Section 14(1) of Presidential Decree (P.D.) No. 1529, also known as the Property Registration Decree, specifies who may apply for land registration:

SEC. 14. Who may apply. -The following persons may file in the proper Court of First Instance an application for registration of title to land, whether personally or through their duly authorized representatives:

(1) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.

Additionally, Section 48(b) of Commonwealth Act 141, as amended by Section 4 of P.D. 1073, provides a similar requirement for those occupying lands of the public domain:

Section 48. The following described citizens of the Philippines, occupying lands of the public domain or claiming to own any such lands or an interest therein, but whose titles have not been perfected or completed, may apply to the Court of First Instance [now Regional Trial Court] of the province where the land is located for confirmation of their claims and the issuance of a certificate of title therefor, under the Land Registration Act, to wit:

(b) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition of ownership, since June 12, 1945, or earlier, immediately preceding the filing of the application for confirmation of title except when prevented by war or force majeure. These shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be entitled to a certificate of title under the provisions of this chapter.

These provisions make it abundantly clear that demonstrating possession since June 12, 1945, is a cornerstone for land registration claims. The Supreme Court, in analyzing the evidence presented by Hanover, found critical deficiencies. The Court emphasized that mere presentation of documents such as tax declarations is insufficient to prove the required period of possession.

The Court noted that the earliest tax declarations presented by Hanover dated back to 1965, failing to establish possession since 1945. The Court reiterated that while tax declarations can serve as proof of claim of ownership, they are not conclusive evidence. In this case, the tax declarations actually undermined Hanover’s claim, suggesting possession only from 1965 onwards. Moreover, the Court highlighted the absence of testimonial evidence to support Hanover’s claim of possession since 1945.

Furthermore, the Court addressed the requirement of proving that the land is alienable and disposable. The CENRO certification submitted by Hanover was deemed insufficient. The Supreme Court, citing Republic v. T.A.N. Properties, Inc., clarified that proving the alienability and disposability of land requires more than a simple certification:

x x x The applicant for land registration must prove that the DENR Secretary had approved the land classification and released the land of the public domain as alienable and disposable, and that the land subject of the application for registration falls within the approved area per verification through survey by the PENRO or CENRO.  In addition, the applicant for land registration must present a copy of the original classification approved by the DENR Secretary and certified as a true copy by the legal custodian of the official records.  These facts must be established to prove that the land is alienable and disposable x x x.

Hanover failed to provide a copy of the original classification approved by the DENR Secretary or present the government official who issued the CENRO certification to confirm its veracity. As a result, the Court found that Hanover did not sufficiently prove that the land was alienable and disposable. The Supreme Court granted the Republic’s petition and reversed the Court of Appeals’ decision. The application for land registration filed by Hanover Worldwide Trading Corporation was denied.

This case underscores the importance of providing concrete and convincing evidence of possession and occupation of land since June 12, 1945, when seeking land registration. It also clarifies the necessary documentation to prove that the land in question has been declared alienable and disposable by the DENR Secretary. Failing to meet these requirements will result in the denial of the land registration application. This ruling affects not only corporations but also individuals seeking to register land based on historical possession.

FAQs

What was the key issue in this case?	The key issue was whether Hanover Worldwide Trading Corporation presented sufficient evidence to prove open, continuous, exclusive, and notorious possession of the land since June 12, 1945, as required for land registration. The court also looked into the sufficiency of the CENRO certification for alienability and disposability.
What is the significance of June 12, 1945, in land registration cases?	June 12, 1945, is the date set by law as the starting point for reckoning the period of possession required for individuals or their predecessors-in-interest to claim ownership of land through open, continuous, exclusive, and notorious occupation. Possession must be proven to have started on or before this date.
What kind of evidence is needed to prove possession since June 12, 1945?	To prove possession since June 12, 1945, applicants need to present clear, positive, and convincing evidence, including testimonial evidence from individuals familiar with the land’s history, as well as documentary evidence such as old tax declarations, surveys, and any other relevant documents. The evidence must show a continuous claim of ownership.
Are tax declarations sufficient proof of ownership for land registration?	While tax declarations can serve as proof of a claim of ownership, they are not conclusive evidence. They must be supported by other evidence to demonstrate the nature and duration of the possession, especially to establish possession since June 12, 1945.
What is a CENRO certification, and why was it insufficient in this case?	A CENRO (Community Environment and Natural Resources Office) certification is a document attesting to the alienability and disposability of land. In this case, the certification was deemed insufficient because Hanover did not provide a copy of the original classification approved by the DENR Secretary, nor did they present the government official who issued the certification.
What does it mean for land to be “alienable and disposable”?	“Alienable and disposable” refers to land that the government has officially classified as no longer intended for public use and can therefore be privately owned. This classification must be proven with official documentation from the DENR.
What happens if an applicant fails to prove possession since June 12, 1945?	If an applicant fails to prove possession since June 12, 1945, their application for land registration will be denied. The burden of proof rests on the applicant to demonstrate that they meet all the legal requirements for land registration.
Why was Hanover Worldwide Trading Corporation, a private corporation, questioned regarding its eligibility to own land?	Under the Constitution, there are restrictions on private corporations owning alienable lands of the public domain. The Republic questioned whether Hanover, as a private corporation, was qualified to hold such lands, raising concerns about compliance with constitutional limitations.

This case serves as a reminder of the stringent requirements for land registration in the Philippines. Proving possession since June 12, 1945, and demonstrating that the land is alienable and disposable are critical elements that applicants must establish with convincing evidence. Failing to meet these requirements can result in the denial of their land registration application.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Republic of the Philippines vs. Hanover Worldwide Trading Corporation, G.R. No. 172102, July 2, 2010