What is the remedy of annotation of an adverse claim?
The annotation of an adverse claim is a measure designed to protect the interest of a person over a piece of real property, where the registration of such interest or right is not otherwise provided for by the Land Registration Act or Act No. 496 (now P.D. No. 1529 or the Property Registration Decree), and serves a warning to third parties dealing with said property that someone is claiming an interest on the same or a better right than that of the registered owner thereof.[1]
How may registration of a Notice of Adverse Claim be had?
Registration may be had by filing a sworn statement with the Register of Deeds of the province where the property is located, setting forth fully his alleged right or interest, and how or under whom acquired, a reference to the number of the certificate of title of the registered owner, the name of the registered owner, and a description of the land in which the right or interest is claimed.[2]
What is the purpose of annotating the adverse claim on the title?
The purpose of annotating the adverse claim on the title of the disputed land is to apprise third persons that there is a controversy over the ownership of the land and to preserve and protect the right of the adverse claimant during the pendency of the controversy. It is a notice to third persons that any transaction regarding the disputed land is subject to the outcome of the dispute.[3]
How may an annotation of adverse claim be cancelled?
An annotation of adverse claim may be cancelled by filing a verified petition therefor in court by the party in interest.[4]
How is a Notice of Adverse Claim different from a Notice of Lis Pendens?
A Notice of Lis Pendens is intended merely to constructively advise, or warn, all people who deal with the property that they so deal with it at their own risk, and whatever rights they may acquire in the property in any voluntary transaction are subject to the results of the action[5] [in court].
In Valderama v. Arguelles[6], the Supreme Court summarized the main differences between the two, to wit:
(1) an adverse claim protects the right of a claimant during the pendency of a controversy while a notice of lis pendens protects the right of the claimant during the pendency of the action or litigation; and
(2) an adverse claim may only be cancelled upon filing of a petition before the court which shall conduct a hearing on its validity while a notice of lis pendens may be cancelled without a court hearing.