RP vs. CA Josefina Morato (DIGESTED)

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G.R. No.

100709 November 14, 1997


REPUBLIC OF THE PHILIPPINES, represented by the DIRECTOR OF LANDS, petitioner, vs.
COURT OF APPEALS, JOSEFINA L. MORATO, SPOUSES NENITA CO and ANTONIO
QUILATAN AND THE REGISTER OF DEEDS OF QUEZON PROVINCE, respondents.
Facts:

Morato filed a Free Patent Application on a parcel of land and the patent was
approved and the Register of Deeds with OCT. Both the free patent and the title
specifically mandate that the land shall not be alienated nor encumbered within five
years from the date of the issuance of the patent. District Land Officer in Lucena City
conducted an investigation and it was established that the subject land is a portion
of the Calauag Bay and not suitable to vegetation. Morato mortgaged the property
to respondents Quilatan and Advincula. Petitioner filed an amended complaint
against respondents and the Register of Deeds of Quezon for the cancellation of title
and reversion of a parcel of land to the public domain, subject of a free patent in
favor of respondent Morato, on the grounds that the land is a foreshore land and was
mortgaged and leased within the five-year prohibitory period. After trial, the lower
court rendered a decision dismissing petitioner's complaint. In finding for private
respondents, the lower court ruled that there was no violation of the 5-year period
ban against alienating or encumbering the land, because the land was merely
leased and not alienated. It also found that the mortgage to Quilatan covered only
the improvement and not the land itself. the Court of Appeals affirmed the decision
of the trial court.

Issues:

WON the lease and/or mortgage of a portion of a realty acquired through free
patent constitute sufficient ground for the nullification of such land grant.

WON property revert to the State once it is invaded by the sea and thus
becomes foreshore land.

Held:
Respondent Morato cannot fully use or enjoy the land during the duration of
the lease contract. This restriction on the enjoyment of her property sufficiently meets
the definition of an encumbrance under Section 118 of the Public Land Act, because
such contract "impairs the use of the property" by the grantee. In a contract of lease
which is consensual, bilateral, onerous and commutative, the owner temporarily
grants the use of his or her property to another who undertakes to pay rent
therefor. During the term of the lease, the grantee of the patent cannot enjoy the
beneficial use of the land leased. As already observed, the Public Land Act does not
permit a grantee of a free patent from encumbering any portion of such land. Such
encumbrance is a ground for the nullification of the award. Even if only part of the
property has been sold or alienated within the prohibited period of five years from the
issuance of the patent, such alienation is a sufficient cause for the reversion of the
whole estate to the State. As a condition for the grant of a free patent to an
applicant, the law requires that the land should not be encumbered, sold or
alienated within five years from the issuance of the patent. The sale or the alienation
of part of the homestead violates that condition.
The application for a free patent was made in 1972. From the undisputed
factual findings of the Court of Appeals, however, the land has since become
foreshore. Accordingly, it can no longer be subject of a free patent under the Public
Land Act. When the sea moved towards the estate and the tide invaded it, the
invaded property became foreshore land and passed to the realm of the public
domain. The subject land in this case, being foreshore land, should therefore be
returned to the public domain.

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