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Question
Petitioner MB Realty, Inc. files a petition for issuance of title under Presidential Decree No. 1529 for Lot 2007 situated in City Y. Two Respondents in Action to Claim appear: (1) the predecessor’s heir alleging hereditary ownership of a portion of the parcel, and (2) a local residents’ association claiming a right to possession over another portion based on longstanding occupation. The Register of Deeds orders Petitioner to deposit into the Assurance Fund an amount representing the probable damages or value of the land to secure the Respondents’ claims while the case is pending. The deposit is made and the case proceeds to trial. (a)Identify the controlling doctrine and governing rule regarding the Assurance Fund and Respondents in Action to Claim. (b)Distinguish the rule on deposits to the Assurance Fund from other protective measures in land registration and explain its effect on the petition. (c)Apply the doctrine to these facts: should the court require deposit into the Assurance Fund in this case? if yes, what are the implications for the petitioner and the Respondents?