Annotations on Land Titles Explained: Liens, Encumbrances, and More
- DP Law
- Apr 18
- 4 min read
Understanding Encumbrances on Land Titles in the Philippines
When buying or selling property in the Philippines, one of the most important steps is checking the land title for any annotations. These markings, usually found at the back of a Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), can have significant legal implications.
But what exactly do these land title annotations in the Philippines mean? Can you still buy or sell a property with an annotation? And how do you remove or cancel them?
In this article, we break down everything you need to know about encumbrances on title, liens, adverse claims, and other common annotations—and how to deal with them legally and properly.
What Are Land Title Annotations?
Annotations are official entries made on a land title to record any legal rights, claims, obligations, or restrictions affecting the property. These do not remove ownership from the titleholder but indicate limitations or pending actions that must be considered.
Common reasons for annotations:
Legal claims (e.g., mortgages, court cases, disputes)
Tax-related issues (e.g., levy due to unpaid taxes)
Government actions (e.g., expropriation)
Restrictions (e.g., road easements, usage limitations)
These are usually recorded on the Entry Book of the Registry of Deeds and reflected on the physical copy of the title.
Key Terms in Land Title Annotations
Let’s break down some of the most common annotations and what they mean for property owners and potential buyers.
1. Lien
A lien is a legal right or interest that a creditor has over a property as security for a debt. If the owner fails to pay, the creditor can pursue legal remedies such as foreclosure.
Example: Pag-IBIG or bank loan annotations on a property title.
2. Mortgage Annotation
A mortgage is one of the most common types of encumbrance on title in the Philippines. It gives a lender the right to foreclose the property if the borrower defaults on their loan.
Implication: A property with a mortgage annotation cannot be sold or transferred unless the mortgage is cleared or the creditor consents.
3. Adverse Claim
This is a claim by a third party who asserts a legal right to the property. It is filed with the Registry of Deeds to protect the claimant’s interest while waiting for resolution.
Duration: Valid for 30 days but can be re-filed.
Use case: Disputes in property ownership due to inheritance, fraud, or double sale.
4. Lis Pendens
Lis pendens means “pending lawsuit.” It notifies the public that the property is involved in ongoing litigation.
Implication: Buying a property with a lis pendens annotation is risky as ownership may be affected by the outcome of the case.
5. Notice of Levy
Issued by the government, usually the Bureau of Internal Revenue (BIR) or local government unit, to claim a property in satisfaction of unpaid taxes or liabilities.
Effect: The property is under legal claim and cannot be freely disposed of without settlement.
6. Easements or Restrictions
These annotations indicate land use limitations, such as rights of way, road access, setbacks, or environmental restrictions.
Effect: These may reduce the usable area or development options of the land.
Why Annotations Matter
Before buying or selling a property, it is critical to check for annotations. Ignoring them could lead to:
Buying a property with unresolved legal disputes
Delays in transfer of ownership
Inability to register the sale
Loss of investment due to foreclosure or government claims
If you’re a buyer, title clearance should always be part of your due diligence process. If you’re a seller, removing or canceling annotations (if possible) increases your property’s market value and appeal.
How to Remove Annotations on Land Titles
Not all annotations can or should be removed. However, if the basis for the annotation no longer exists (e.g., mortgage fully paid, case dismissed), a cancellation of encumbrance may be requested.
General Steps in Annotation Removal Process:
1. Secure Proof of Settlement
If it’s a mortgage: Get a Release of Mortgage from the lender, notarized.
For a lis pendens or adverse claim: Secure a court order or affidavit of withdrawal.
For notice of levy: Obtain a Certificate of Tax Clearance.
2. Prepare Legal Documents
Deed of cancellation, release, or satisfaction
Court order (if applicable)
Owner’s duplicate copy of the title
3. File with the Registry of Deeds
Submit the documents with a formal petition for annotation cancellation.
Pay the required legal and registration fees.
4. Title Update
Once approved, the Registry of Deeds will issue a new title reflecting the removal of the annotation.
Tip: It’s best to work with a lawyer to ensure compliance with legal and procedural requirements during the removal process.
Can I Still Buy a Property with an Annotation?
Yes, but with caution.
If you’re buying a property with an annotation:
Consult a lawyer to evaluate the nature of the annotation
Check if it can be resolved or waived
Secure clearance or written consent from interested parties
Consider escrow arrangements if the annotation will be settled after the sale
Buying annotated property without proper legal review exposes you to serious risk, including ownership disputes, delayed registration, or worse, losing the property altogether.
Title Clearance: A Must for Property Buyers
Before signing any deed of sale, make sure to secure a certified true copy of the land title from the Registry of Deeds and review the back page carefully. Look for:
Dates and nature of annotations
Document numbers
Parties involved
Court or government agency mentioned
You may also request a title verification report or conduct a due diligence investigation through your lawyer.
Final Thoughts
Land title annotations in the Philippines are not mere footnotes—they are powerful legal indicators that affect ownership, transfer, and use of real estate. Whether it’s a lien, mortgage annotation, lis pendens, or adverse claim, understanding and addressing these encumbrances on title is key to a safe and legally sound property transaction.
If you are unsure about an annotation or need help removing it, seek legal assistance to avoid costly mistakes.
Need Help With Title Annotations?
At DPASCUAL Law, we help clients decode, resolve, and remove annotations from land titles. Whether you need to verify an encumbrance, file for cancellation, or secure clean title before purchase, we provide fast, legal, and strategic solutions.
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