DISCONTINUANCE OF THE SPANISH MORTGAGE SYSTEM OF REGISTRATION AND OF THE USE OF SPANISH TITLES AS EVIDENCE IN LAND REGISTRATION PROCEEDINGS.

WHEREAS, fraudulent sales, transfers, and other forms of
conveyances of large tracts of public and private lands to unsuspecting
and unwary buyers appear to have been perpetrated by unscrupulous
persons claiming ownership under Spanish titles or grants of dubious
origin;

WHEREAS, these fraudulent transactions have often resulted
in conflicting claims and litigations between legitimate title holders, bona
fide occupants or applicants of public lands, on the one hand, and
the holders of, or persons claiming rights under, the said Spanish
titles or grants, on the other, thus creating confusion and instability
in property ownership and threatening the peace and order conditions in
the areas affected;

WHEREAS, statistics in the Land Registration Commission show
that recording in the system of registration under the Spanish Mortgage
Law is practically nil and that this system has become obsolete;

WHEREAS, Spanish titles to lands which have not yet been
brought under the operation of the Torrens system, being subject to
prescription, are now ineffective to prove ownership unless accompanied
by proof of actual possession;

WHEREAS, there is an imperative need to discontinue the
system of registration under the Spanish Mortgage Law and the use of
Spanish titles as evidence in registration proceedings under the Torrens
system;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order:

SECTION 1. The system of registration under the Spanish
Mortage Law is discontinued, and all lands recorded under said system
which are not yet covered by Torrens title shall be considered as
unregistered lands.

All holders of Spanish titles or grants should apply for
registration of their lands under Act No. 496, otherwise known as the
Land Registration Act, within six (6) months from the effectivity of
this decree. Thereafter, Spanish titles cannot be used as evidence of
land ownership in any registration proceedings under the Torrens system.

Hereafter, all instruments affecting lands originally registered under
the Spanish Mortgage Law may be recorded under Section 194 of the
Revised Administrative Code, as amended by Act 3344;

SEC. 2.
All laws, executive orders, administrative orders, rules and
regulations inconsistent with the foregoing provisions are hereby
repealed or accordingly modified;

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 16th day of February in the
year of Our Lord, nineteen hundred and seventy-six.