Registry of Property

Acuña.  Castro.  Cea.  Cueva.De  Jesus.Fan.Feliciano.Ignacio.Pena.Sembrano  

Atty. Charlene Mae Tapic-Castro

2B  2017-­‐2018  
 Registry of Property

contemplates a system of general registry

which would cover all systems of
registration under existing laws including
the system of recording under Act No. 3344
 Register
•  act of recording or annotating;
•  book of registry;
•  office concerned; or
•  official concerned
 Registration
•  any entry made in the books of Registry, including
both registration in its ordinary and strict sense,
and cancellation, annotation, and even marginal
notes

•  it is the entry made in the Registry which records

solemnly and permanently the right of ownership
and other real rights
 COVERAGE
•  only immovable property
•  refers to the registration under
Presidential Decree No. 1529 and Act
No. 3344
 Purposes of Registration
and Publicity
•  To give true notice as to the true status of
real property and the real rights thereto

•  To prejudice third persons, unless they

have actual knowledge of the transaction
concerned;
 Purposes of Registration
and Publicity
•  To record acts or contracts (such as
transmissions and modifications of ownership
and other real rights over real property); and

•  To prevent commission of frauds, ensuring

the effectivity of real rights over real property
 Purpose of Torrens System
•  To quiet title to land and put a stop
forever to any question as to the legality
of the title.
•  To relieve from unknown claims, liens,
burdens, whether just or unjust
•  To prevent fraudulent transactions
•  To establish priority in rights or
preferential right
 Purpose of Torrens System
•  To create an indefeasible or
imprescriptible title binding upon the
whole world
•  To provide means of publication or
constructive notice to all persons
•  To provide stability to land titles.
Systems of Registration
FORMER  REGISTRATION  SYSTEMS  
 Spanish Mortgage Law of 1893
•  provided for the systematic registration of
titles and deeds as well as possessory claims

•  Forms of Grants: (a) titulo real or royal grant;

(b) concession special or special grant; (c)
composicion con el estado title or adjustment
title; (d) titulo de compra or title by purchase;
(e) informacion possesoria or possessory
information title; and (f) titulo gratuito or
gratuitous title
 Spanish Mortgage Law of 1893
•  discontinued by PD 892, as issued in
February 16, 1976, wherein all holders of
Spanish titles or grants are required to apply
for registration under Act No. 496 within 6
months from the effectivity of PD 8923
•  Spanish titles cannot be used as evidence of
land ownership in any registration
proceeding under the Torrens System
 Land Registration Act of 1902

•  enacted by the Philippine Commission,

placed all public and private lands in the
Philippines under the Torrens System
•  approved on November 6, 1902 but
became effective on January 1, 2003
•  established the Torrens system of
registration in the country
under Section 194 of the Revised
Administrative Code, as amended
by Act 3344

concerning lands not covered by a Torrens

Title nor registered under the Spanish
Mortgage Law
 PD 1529
Property Registration
Decree
PRESENT  REGISTRATION  SYSTEM    
•  incorporated  the  substanMve  and  procedural  
requirements  of  Land  RegistraMon  Act  of  1902  
but  it  has  expanded  its  coverage  
 Including:
•  Judicial Confirmation of Imperfect or
Incomplete Title,
•  Cadastral Registration Proceedings,
•  Voluntary Proceedings
•  Involuntary Proceedings,
•  Certificates of land transfer and
emancipation patents and Reconstitution
of lost or destroyed original Torrens title.
 In Director of Lands v. Santiago, the Court
enunciated that the Decree “supersedes all
other laws relative to registration of
property
Procedure
•  Private lands
•  Done through the courts where a
certificate of title would then be granted
to the owner of the land.
•  Two types:
–  Judicial
–  Administrative
ORDINARY LAND REGISTRATION
PROCEEDINGS
 Step  1:  
Survey  of  the  land  by  the  Land  Management  Bureau  or  a  duly  licensed  private  
surveyor.  

Step  2:  
Filing  of  the  applica/on  for  registra/on  by  the  applicant  at  the  Regional  Trial  
Court  of  the  province,  city  or  municipality  where  the  property  is  situated;  
 WHO MAY APPLY?
•  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.
•  Those who have acquired ownership of
private lands by prescription under the
provision of existing laws.
 WHO MAY APPLY?
•  Those who have acquired ownership of
private lands or abandoned river beds by
right of accession or accretion under the
existing laws.
•  Those who have acquired ownership of
land in any other manner provided for by
law.
CONTENTS OF THE APPLICATION
•  Description of the land
•  The citizenship and civil status of the applicant, whether
single or married, and, if married, the name of the wife or
husband, and, if the marriage has been legally dissolved,
when and how the marriage relation terminated.
•  The full names and addresses of all occupants of the land and
those of the adjoining owners, if known, and, if not known, it
shall state the extent of the search made to find them.
•  The assessed value of the land and the buildings and
improvements thereon, for taxation purposes.
•  Mortgage or encumbrance of any kind affecting the land.
•  The manner by which the applicant has acquired the land.
 Step  3:  
SeFng  of  the  ini/al  date  of  hearing  by  the  court;  

Step  4:  
TransmiCal  of  the  applica/on  and  the  date  of  ini/al  hearing  together  with  all  documents  
or  other  evidenced  aCached  by  the  clerk  of  court  to  the  Land  Registra/on  Authority  or  
the  LRA  
 Step  5:  
Publica/on  of  the  no/ce  of  ini/al  hearing  and  the  date  and  place  of  ini/al  hearing  once  in  
the  Official  GazeCe  and  in  a  newspaper  of  general  circula/on  in  the  Philippines;  

Step  6:  
Service  of  no/ce  to  all  occupants  as  well  as  con/guous  owners  and  those  who  may  have  
an  interest  in  the  property  by  the  sheriff;  
 PUBLICATION
•  PURPOSE:
–  For the court to acquire jurisdiction over the land
which is the subject matter of the proceeding
–  To charge the whole world with the knowledge of
the application of the land
•  Notice to the true status of real property and the real
rights thereto;
•  Prejudice third persons
•  Record acts or contracts
•  Prevent commission of frauds
 PUBLICATION
•  AMENDMENTS
–  In substantial change in the boundaries or an
increase in area of the land
•  There is a NEED for REPUBLICATION.
–  In decrease of the area
•  No need for Republication.
 SERVICE OF NOTICE
•  given to contiguous owners, occupants
and those known to have interest in the
property by the sheriff.
•  Sec. 23 of P.D. 1529:
a)  through publication,
b)  posting
c)  registered mail
 Step  7:  
Filing  of  answer  or  opposi/on  by  persons  having  interest  in  the  land  and  
includes  those  whose  names  may  not  appear  in  the  no/ce;  

Step  8:  
Hearing  of  the  case  by  the  court;  
 Step  9:  
Promulga/on  of  judgment  by  the  court  

Step  10:  
Issuance  of  the  decree  or  order  by  the  court  declaring  the  decision  final  and  instruc/ng  
the  Land  Registra/on  Authority  to  issue  a  Decree  of  Confirma/on  and  Registra/on;  
 Step  11:  
Entry  of  the  decree  or  order  in  the  books  of  the  Land  Registra/on  Authority  by  the  Administrator;  

Step  12:  

Sending  of  copy  of  the  decree  of  registra/on  to  the  corresponding  Register  of  Deeds;  

Step  13:  
Transcrip/on  of  the  Decree  in  the  Registra/on  book  and  the  issuance  of  the  owner’s  duplicate  Original  
Cer/ficate  of  Title  of  the  applicant  by  the  Register  of  Deeds  upon  payment  of  the  prescribed  fees.  
ADMINISTRATIVE PROCEEDINGS
•  involves the acquisition of the lands that
are covered by patents issued by the Land
Management Bureau.
•  NO NEED TO FILE FOR A PETITION
•  Upon the expiration of 1 year from its
issuance, the certificate of title shall
become irrevocable and indefeasible like
a certificate issued in a registration
proceeding.
Unregistered Lands
 Spanish system discontinued

“all lands recorded under said system which

are not yet covered by Torrens title shall be
considered as unregistered lands.”
 Section 113 of PD 1529

•  Primary Entry book

–  entry number, the names of the parties, the nature of the
document, the date, hour and minute

•  effected by an annotation on the

registration book
 Return duplicate

Record Endorse

Furnish copy
Present

Refuse Advise Appeal to CLR

 Unregistered Lands

•  without prejudice to a third party with a

“better right,
•  not covered by the rule on double sale
under Art 1544 of NCC
•  good faith or bad faith irrelevant
 Sabitsana Jr. vs Muertegui
•  Muertuegui has a better right to the
disputed lot, through the application of
Act No. 3344 as amended
•  mere registration of a sale in one’s favor
does not give him any right
•  registration does not vest title; it is merely
confirms such
Effects of Registration
 1. It operates as a constructive
notice
•  P.D. No. 1529, Section 52.  Every conveyance, mortgage,
lease, lien, attachment, order, judgment, instrument or entry
affecting registered land shall, if registered, filed or entered in
the office of the Register of Deeds for the province or city
where the land to which it relates lies, be constructive notice
to all persons from the time of such registering, filing or
entering.

•  Doctrine of Constructive Notice- as long as it complied with

the proper publication, everyone is considered to have
knowledge of the law and is deemed to be notified
 1. It operates as a constructive
notice

•  It is presumed that a purchaser examined

every instrument of record affecting title
to the land in the register of deeds.
•  The presumption is irrefutable. Proof of
innocence or good faith is not a defense.
 2. It does not validate or cure
defective instrument
•  Registration does not give a registrant a better
right if done in bad faith.
•  Prohibition against collateral attack does not
apply since such titles do not enjoy indefeasibility
•  Examples:
-Deed registered is forged or fictitious or simulated
-Deed of Donation without acceptance of donee
 3. It does not vest title

•  Registration does not vest tittle but

merely confirms title to the land.
•  Registration is NOT a mode of acquiring
ownership.
4. It cannot bind property where
it is legally ineffective
•  Effects of document evidencing transaction
registered in the wrong system:
1) Such registration is legally ineffective and
cannot bind the property
2) Not bound by the principle of constructive
notice
•  Who has a better right?
 5. Rule of first in time, first in
right
•  Under Act No. 3344, registration of instruments
affecting unregistered lands is “without prejudice to a
party with a better right”
•  “Third party with a better right”- one who would
acquired a right over the realty prior to others,
whether or not his right was registered.
•  “Mere registration of a sale in one’s favor does not give him
any right over the land if the vendor was not anymore the
owner of the land, having previously sold the same to
somebody else even if the earlier sale was unrecorded. “ –
Radiowealth Finance Co. vs. Palileo (197 SCRA 245, 1991)
Prejudice to third persons
 Concept of third persons
•  are those who did not participate
in the act, contract, or deed
registered;
•  those who not having participated in said
act, contract, or deed, base their right on
the title that has been registered; and
•  those who have no actual knowledge of
the act, contract or deed
 However, third persons are prejudiced if
they have actual knowledge or notice of the
act, contract, deed, affecting the
registered title, before they acquired
the right from such.
 “Registration is the operative act to bind
or affect the property.” (Section 52, PD
1529)

•  Section 52 of PD 1529 enunciates the

principle that the annotation of claims in the
certificate of title serves as constructive
notice to all persons regarding claims since it
is presumed that the purchaser has examined
every instrument of record related to the
property (Agcaoili, 2015).
 Mirror Doctrine
Pulido v CA (251 SCRA 673)

“… a person dealing with the same is only charged

with notice of the burdens on the property which are
noted on the face of the register or the certificate of
title. When there is nothing on the certificate of title to
indicate any cloud or vice in the ownership of the
property, or any vice thereon, the purchaser is not
required to go further than what the Torrens title upon
its face indicates.”
 Mirror Doctrine
Republic v CA (301 SCRA 366)

Where innocent third persons, relying on the

correctness of the certificate of title thus issued,
acquire rights over the property, the court cannot
disregard such rights and order the total
cancellation of the certificate
 Concept of Innocent Purchaser
for Value
Rosales v Burgos (577 SCRA 264)

“… is one who buys the property of another

without notice that some other person has a right
to or interest in it, and who pays a full and fair
price at the time of the purchase or before
receiving any notice of another person’s claim.”
 Requisites of Good Faith

Uy v Fule (G.R. No. 164961, June 30, 2014)

•  the seller is the registered owner of the land;
•  the land is in the possession of the registered
owner;
•  at the time of the transaction, the buyer was not
aware of any claim or interest of some other person
in the property, or of any defect or restriction in the
title of the seller or in his capacity to convey the
property
 Exceptions to the Mirror Doctrine
•  When the party has actual knowledge of facts and
circumstances which would impel a reasonably cautious man
to make such inquiry or when the purchaser has knowledge of
a defect or a reasonably prudent man to inquire into the
status of the property in litigation

•  Inquiry is necessary in order to invoke the defense of an innocent

purchaser for value and refute any allegations of negligence which
would destroys good faith (Sps Mathay v CA, GR No. 115788,
September 17, 1998).

•  Banks should exercise more care and prudence in dealing

even with registered lands, than private individuals, as their
business is one affected with public interest (Omengan v
PNB, 541 Phil. 293).
 Examples
•  Land sold is in possession of a person not
the vendor
•  A person buys land not from the
registered owner; and
•  The buyer has knowledge of flaws and
defects of the title
 Application of the Mirror Doctrine
•  Double Sales

•  The rules enunciated in Article 1544 are applicable tor

registered lands. The provision on double sale presumes that
title to ownership passes to the first buyer, the exceptions
being:
•  When the second buyer, in good faith, registers the sale
ahead of the first buyer; and
•  Should there be no inscription by either of the two buyers,
when the second buyer, in good faith, acquires possession of
the property ahead of the first buyer.

(Villanueva, 2016)
 Value of the Certificate of Title

One of the purposes of registration is to

prevent fraudulent claims. Section 53 of PD
1529 requires the presentation of the
Owner’s Duplicate Certificate of Title
(ODCT) together with the instrument of
conveyance (e.g., deed of sale) and shall be
the Register of Deeds’ conclusive authority
to enter a new certificate of title.
When a forged deed can be the root
of a valid title
Sps Eduarte v CA (253 SCRA 391)

—> where the certificate of title was already

transferred from the name of the true owner to the
forger, and while it remained that way, the land
was subsequently sold to an innocent purchaser.
For then, the vendee had the right to rely upon
what appeared in the certificate.
Register of Deeds
(ROD)  
 OFFICE OF THE REGISTER OF DEEDS

•  PD 1529, Sec 7, provides for the

establishment of the ORD
•  a public repository of records of
instruments affecting registered,
unregistered lands and chattel mortgages
 MAIN FUNCTION
•  register an instrument presented for
registration dealing with real or personal
property which complies with all the
requisites for registration

•  custodian of registry books of PUBLIC

NATURE
 REGISTRATION
Duty of Register of Deeds to register is
ministerial.

Exception: If the instrument is not

registrable, he shall forthwith deny
registration thereof (PD 1529, Sec 10).
 CUSTODIAN OF “PUBLIC”
REGISTRY BOOKS
Inherent power to make regulations
prescribing the manner in examination of
records.

PUBLIC = every person as long as it is clear

that the purpose of the examination is NOT
unlawful or arises from sheer, idle curiosity.
Movable Property
Chattel Mortgage
 Nature
•  ACT NO. 1508: an act providing for the
mortgaging of personal and for the
registration of the mortgages so executed

•  It is a contract by virtue of which personal

property is recorded in the Chattel
Mortgage Register as security for the
performance of an obligation
 Form and Contents
•  Section 5: Chattel mortgage is deemed to be sufficient when
made substantially in accordance with the form provided by
law and shall be signed by the person in the presence of two
witnesses, who shall sign the mortgage as witnesses

•  The contract should state the description and location of the

property, the residence of the mortgagor and that of the
mortgagee.

•  Affidavit of good faith stating therein that the mortgage is

made for the purpose of securing the obligation
 Subject Matter

•  Only personal property may be subject of

chattel mortgage
 Registration
•  Registration shall be done in the Register of Deeds where the
mortgagor resides

•  And  when  the  property  is  situated  somewhere  else,  it

needs to be registered also in the Register of Deeds of the
area where the property is situated

•  Chattel  mortgage  would  not  be  valid  and  binding  as

against third persons absent any registration

•  If what is mortgaged is a car, registration with the LTO is also 

needed.    Absent  this,  again,  it  would  not  be  binding
and invalid as against third persons
 Effect of Failure to Register
•  Void as to third persons unless the
mortgage is duly registered in the Registry
of Deeds.

•  If the mortgage is constituted in a public

instrument which is not registered, the
creditor has the right of preference
established by the Civil Code
 Foreclosure; extrajudicially
1.   30-day  cooling  off  period 
2.   Notice—at least 10 days
3.   Sheriff should possess the property as he needs to
deliver the same to the winning bidder. 
4.   30-day equity of redemption period (payment of
obligation)
5.    After  foreclosure,  there  could  be  recovery  of 
deficiency
but  there  is  Recto  Law  (1484)  pertaining  to  sale 
of personal  property  in  installments  and  there  is  a 
Chattel Mortgage  to secure payment of price.
 Foreclosure; judicially and
proceeds thereof
•  Notary Public considering the provisions of Article
2112 in relation to Article 2141 of the Civil Code of
the Philippines.

•  APPLICATION OF PROCEEDS OF FORECLOSURE

1.   Costs;
2.   Obligation  itself.    Pay  first  the  interest  and  then 
the principal.  If there is penalty, then pay it first;
3.   Junior encumbrances; and
4.   Owner
Land Transportation and
Traffic Code
RA  No.  4136,  As  amended  
 
 Brief History
•  1910 - there were already few motor vehicles seen operating
in public highways in Manila and suburbs.
•  1912 - Legislative Act No. 2159 was enacted to regulate
motor vehicles in the Philippine Islands and to provide for the
regulation and licensing of operators.
•  1922 - Act No. 3045 was passed into law compiling and
incorporating all laws governing motor vehicles
•  1933 - Act No. 3992 otherwise known as “The Revised Motor
Vehicle Law” was enacted amending Act No. 3045.
•  1964 - R.A. 4136, otherwise known as the “Land
Transportation and Traffic Code” was enacted
LAND TRANSPORTATION OFFICE

•  Prescribe the procedure for the examination, licensing and

bonding of drivers; the registration and re-registration of
motor vehicles, transfer of ownership, change of status; …
and all other special cases which may arise for which no
specific provision is otherwise made in this Act.

•  To compile and arrange all applications, certificates, permits,

licenses, and to enter, note and record thereon transfers,
notifications, suspensions, revocations, or judgments of
conviction rendered by competent courts concerning
violations of this Act, with the end in view of preserving and
making easily available such documents and records to public
officers and private persons properly and legitimately
interested therein.
 REGISTRATION OF MOTOR VEHICLES

•  Sec. 5. Compulsory registration of motor vehicles

–  All motor vehicles and trailers used in any highway in the
Philippines

–  Dealer's Report - Dealers shall submit to Land Transportation a

report concerning the sale or transfer of or any other transaction
involving motor vehicles. Such dealers shall furnish also the
buyer with a duplicate copy thereof, duly authenticated by the
LTO.
•  Sec. 14 provides that a certificate of registration will be issued
•  Sec. 15(a) The said certificate shall be preserved and carried
in the car by the owner as evidence of the registration of the
motor vehicle described therein, and shall be presented with
subsequent applications for re-registration, transfer of
ownership, or recording of encumbrances.
REGISTRATION OF MOTOR VEHICLES

–  Sec. 5(e)Encumbrances of motor vehicles. — Mortgages,

attachments, and other encumbrances of motor vehicles
must also be recorded with the LTO as well as the
cancellation or foreclosure of such mortgages,
attachments, and other encumbrances.

–  Records of encumbrances of motor vehicles shall be kept

by the LTO in chronological and/or alpha-numerical and/
or any other sequence and shall contain, among other
things, the time, date, number of the entry, and other
cross-indexing entries for immediate data retrieval, in a
"Book of Motor Vehicle Encumbrances" referring to the
creation, cancellation or foreclosure of the aforesaid
mortgages, attachments or to other encumbrances
 Effects of Registration
•  Registered Owner Rule (Erezo v. Jepte) -

–  Registration is required not to make said registration the

operative act by which ownership in vehicles is transferred, as in
land registration cases, because the administrative proceeding
of registration does not bear any essential relation to the
contract of sale between the parties but to permit the use and
operation of the vehicle upon any public highway.

–  The main aim of motor vehicle registration is to identify the

owner so that if any accident happens, or that any damage or
injury is caused by the vehicles on the public highways,
responsibility therefore can be fixed on a definite individual, the
registered owner.
The Ship Mortgage Act of 1978

PRESIDENTIAL  DECREE  NO.  1521  

 
 OBJECTIVES
•  accelerate the growth and development
of the shipping industry
The Law: Ship Mortgage
Decree of 1978
 Purposes of Ship Financing
•  The purpose for which a mortgage may
be constituted on a vessel and its
equipment in favor of any bank or other
financial institutions, domestic or foreign,
is for financing the construction,
acquisition, purchase or initial operation
of vessels.
 Requisites for Valid Mortgage
•  Must be recorded in the office of the
Philippine Coast Guard of the port of
documentation of the vessel or port of
registry of the vessel
•  Unrecorded ship mortgage shall not be
valid against third parties other than the
mortgagor, his heir or assign, and a
person having actual notice of the
mortgage
 Preferred Mortgage/ Effects of a Valid Mortgage

The creation of a preferred mortgage lien is conditioned

upon the fulfillment of these three requisites:

•  The mortgage is recorded as provided in Section 3 of

PD 1521;
•  An affidavit is filed with the record of such mortgage
to the effect that the mortgage is made in good faith
and without any design to hinder, delay, or defraud
any existing or future creditor of the mortgagor or any
lien or of the mortgaged vessel;
•  The mortgage does not stipulate that the mortgagee
waives the preferred status thereof;
•  Restrictions in the recording of the ship mortgage are provided
under Section 8, in conjunction with Section 17 of the Ship
Mortgage Decree, it states that:

•  No mortgage shall be recorded unless it states the interest of the

mortgagor in the vessel, and the interest so mortgaged.
•  No mortgage, notice of claim of lien, or certificate of discharge
thereof, shall be recorded unless previously acknowledged before
the Coast Guard District or Station Commander of the port of
documentation or a notary public or other officer authorized by a
law of the Philippines to take acknowledgment of deeds or before a
Philippine consul or consular agent.
•  When there is a change of port of documentation of the mortgaged
vessel, the mortgage cannot be recorded at a new port of
documentation unless certification has been issued by the Coast
Guard or Station Commander of the previous port of
documentation authorizing the recording of the mortgage at the
new port of documentation.
•  The preferred mortgage lien shall have
priority over all claims against the vessel,
except the following claims in the order
stated: (1) expenses and fees allowed and
costs taxed by the court and taxes due to the
Government; (2) crew's wages; (3) general
average; (4) salvage; including contract
salvage; (5) maritime liens arising prior in
time to the recording of the preferred
mortgage; (6) damages arising out of tort;
and (7) preferred mortgage registered prior
in time
 Preferred Mortgage Status covers:

•  vessel of "domestic ownership"

•  any other vessel holding a "Provisional
Certificate of Philippine Registry"
•  foreign ship mortgages
 Restrictions on the enforceability of
the preferred mortgage lien
•  Section 4:
(e) "a mortgage which includes property other than a vessel shall
not be held a preferred mortgage unless the mortgage provides for
the separate discharge of such property by the payment of a specified
portion of the mortgage indebtedness”
(f) If a preferred mortgage includes more than one vessel and
provides for the separate discharge of each vessel by the payment of a
portion of mortgage indebtedness, the amount of such portion of such
payment shall be endorsed upon the documents of the vessel. In case
such mortgage does not provide for the separate discharge of a vessel
and the vessel is to be sold upon the order of a district court of the
Philippines in a suit in rem in admiralty, the court shall determine the
portion of the mortgage indebtedness increased by 20 per centum (1)
which, in the opinion of the court, the approximate value of all the
vessels covered by the mortgage, and (2) upon the payment of which
the vessel shall be discharged from the mortgage.
 Other requirements under Section 6:
•  disclosure of existence of any maritime lien, prior
mortgage, or other obligation or liability upon the
vessel to be mortgaged, that is known to the
mortgagor
•  without the consent of the mortgagee, shall not
incur, after the execution of such mortgage and
before the mortgagee has had a reasonable time
in which to record the mortgage and have
indorsements in respect thereto made upon the
documents of the vessel, any contractual
obligation creating a lien upon the vessel
Foreclosure of Preferred Mortgage Lien
•  preferred mortgage lien may be enforced by the
mortgagee by suit in rem in admiralty, where the
vessel itself is made a party defendant and may be
arrested
•  falls within the original exclusive jurisdiction of the
Regional Trial Court of the place where the vessel may
be arrested or of the place where the mortgagor or
mortgagee resides, at the election of the mortgagee
•  Notice of Commencement of suit in rem in admiralty
must be given by the mortgagee thru publication and
actual notice to the parties which the court may direct
•  Mortgagee may bring suit in personam in admiralty
against the mortgagor of the vessel under Section 18
of the Decree, in respect of the amount representing
the outstanding mortgage indebtedness secured by
the vessel or any deficiency in the full payment
thereof.

•  a suit in rem may be instituted under Section 21 of the

Decree when maritime liens for necessaries are
enforced against the vessel, for recovery of cost of
repairs to the vessel, cost of supplies furnished to the
vessel, towage service given to the vessel, use of
drydock or maritime railway, or other necessaries
furnished to any vessel, whether foreign or domestic,
upon the order of the owner of the vessel or of a
person authorized by the owner.
How Suit in rem is enforced

Order of Arrest
Order of Discharge