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0 tracked cards Civil Law and Land Titles and Deeds
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A petition for registration is granted for a 1,500-square-meter lot. The trial court issues a decree of registration and a certificate of title is issued in the name of the petitioner. Later, it is discovered that (i) the property was encumbered by an unrecorded mortgage created in 2015 by the former owner in favor of a private lender, (ii) one of the original owner's heirs did not receive summons and was not represented in the petition, and (iii) neither the mortgagee nor the heir appeared during the petition for registration. The heirs seek to challenge the decree on due-process grounds, while the mortgagee contends that the decree is final and cannot be collaterally attacked. Answer the following in exam style: (a) Identify the controlling doctrine on the effect of a decree of registration on title under the Torrens system and the permissible ways a decree may be attacked. (b) Apply the doctrine to the facts: are the heirs barred from challenging the decree for lack of due process, and what remedies, if any, do they have? What effect does the unrecorded mortgage have on the decree and on the title, if any? (c) Is the mortgagee’s claim of res judicata applicable in this scenario? Explain.

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Clara

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