Flashcards Studio

(a)Identify the central doctrine governing Voluntary Dealings under the Land Registration Decree (PD 1529) and state when title passes to the transferee. (b)Explain how a voluntary dealing affects encumbrances, such as a mortgage, and what happens to those encumbrances after registration. (c)Apply the doctrine to the following facts: A is the registered owner of Lot Alpha under TCT No. 12345. A executes a Deed of Absolute Sale in favor of B, stating that B shall assume the mortgage in favor of Bank Omega annotated on A’s title. The deed is presented for voluntary registration under PD 1529; the Registry of Deeds registers the deed and issues a new certificate of title in B’s name. Six months later, Bank Omega forecloses on the mortgage. What is the effect on B’s ownership and on Bank Omega’s rights, and what steps could B take to protect his interest?