Republic vs. Court of Appeals and Naguit

The phrase "since June 12, 1945" in Section 14(1) of the Property Registration Decree qualifies the phrase "under a bona fide claim of ownership," not the antecedent phrase "alienable and disposable lands of the public domain." Thus, the land need only be classified as alienable and disposable at the time the application for registration is filed.

Corazon Naguit sought judicial confirmation of her imperfect title over a 31,374-square-meter parcel of land in Nabas, Aklan. The land was originally declared for taxation in 1945 by Ramon Urbano, who executed a quitclaim in 1992 in favor of the heirs of Honorato Maming, confirming a sale from 1955 or 1956. The heirs of Maming subsequently sold the property to Naguit, who took possession, introduced improvements, and paid taxes. The Department of Environment and Natural Resources certified the land as alienable and disposable on October 15, 1980.

• Application for Registration: On January 5, 1993, Naguit filed a petition for registration of title over Lot No. 10049, Cad. 758-D, Nabas Cadastre, situated in Brgy. Union, Nabas, Aklan, containing an area of 31,374 square meters.
• Opposition: The public prosecutor and the heirs of Rustico Angeles opposed the petition. An order of general default was issued against the whole world except these oppositors. The heirs of Rustico Angeles later failed to appear at trial despite notice.
• Possession and Ownership History: The subject parcel was declared for taxation in 1945 by Urbano under Tax Declaration No. 3888 until 1991. On July 9, 1992, Urbano executed a Deed of Quitclaim in favor of the heirs of Maming, renouncing his rights and confirming the sale made by his father in 1955 or 1956. The heirs of Maming executed a deed of absolute sale in favor of Naguit, who constituted Manuel Blanco, Jr. as her attorney-in-fact and administrator. The administrator introduced improvements and planted mahogany, coconut, and gemelina trees. Existing coconut trees were 50 to 60 years old at the time of purchase.
• Classification of Land: The land was certified by the DENR as alienable and disposable on October 15, 1980. Surrounding parcels have been issued titles by virtue of judicial decrees. No private person or the government objected to Naguit's possession until the application for registration was filed.

• Alienable Status Since 1945: The Republic argued that under Section 14(1) of the Property Registration Decree, the land must have been alienable and disposable since June 12, 1945, for possession to be considered under a bona fide claim of ownership.
• Reliance on Precedent: The Republic maintained, invoking Director of Lands v. Intermediate Appellate Court, that because the land was declared alienable only in 1980, Naguit could not have maintained a bona fide claim of ownership since June 12, 1945, as the land was still part of the public domain prior to 1980.

• Sufficiency of Subsequent Classification: Respondent countered that the alienable and disposable character of the land at the time of the application suffices, and that possession under a bona fide claim of ownership since 1945 was validly established.
• Factual Basis of Possession: Respondent argued that possession since 1945 was substantiated by tax declarations and the existence of old trees on the property, fulfilling the requirements for judicial confirmation of imperfect title.

• Qualification of "Since June 12, 1945": Whether Section 14(1) of the Property Registration Decree requires that the subject land be classified as alienable and disposable since June 12, 1945, or merely at the time of the application for registration.
• Sufficiency of Possession: Whether respondent Naguit had been in possession of the subject land in the concept of owner for the required period under Section 14(1).

• Qualification of "Since June 12, 1945": The phrase "since June 12, 1945" qualifies "under a bona fide claim of ownership," not "alienable and disposable lands of the public domain." Pursuant to the rule on statutory construction that qualifying words modify only the words to which they are immediately associated, the more reasonable interpretation is that Section 14(1) merely requires the property to be alienable and disposable at the time the application for registration is filed. Requiring the land to be alienable since 1945 would render the provision virtually inoperative for lands reclassified after that date and preclude the government from giving effect to subsequent reclassifications.
• Sufficiency of Possession: Possession since 1945 was sufficiently established. Tax declarations since 1945 and the existence of 50- to 60-year-old trees substantiate open, continuous, exclusive, and notorious possession under a bona fide claim of ownership. Tax declarations and payment of realty taxes are good indicia of possession in the concept of owner, manifesting a sincere desire to obtain title and an adverse claim against the State.

• Statutory Construction (Last Antecedent Rule) — Qualifying words restrict or modify only the words or phrases to which they are immediately associated, and not those distantly or remotely located. Applied to hold that "since June 12, 1945" modifies "bona fide claim of ownership," not "alienable and disposable lands."
• Judicial Confirmation of Imperfect Title (Sec 14(1), PD 1529) — The three requisites for registration are: (1) the property is alienable and disposable land of the public domain; (2) the applicants by themselves or through predecessors-in-interest have been in open, continuous, exclusive, and notorious possession and occupation; and (3) such possession is under a bona fide claim of ownership since June 12, 1945, or earlier. The alienable status need only exist at the time of the application.
• Evidentiary Value of Tax Declarations — Tax declarations and realty tax payments are not conclusive evidence of ownership but are good indicia of possession in the concept of owner, constituting proof that the holder has a claim of title and manifesting a bona fide claim of acquisition of ownership.

• "Since June 12, 1945," as used in the provision, qualifies its antecedent phrase "under a bonafide claim of ownership." Generally speaking, qualifying words restrict or modify only the words or phrases to which they are immediately associated, and not those distantly or remotely located. — Defines the application of the last antecedent rule in statutory construction to Section 14(1) of the Property Registration Decree.
• The more reasonable interpretation of Section 14(1) is that it merely requires the property sought to be registered as already alienable and disposable at the time the application for registration of title is filed. — Establishes the temporal requirement for the classification of land as alienable and disposable in land registration cases.

• Director of Lands v. Intermediate Appellate Court, G.R. No. 65663 (1992) — Distinguished. The Republic invoked this case to argue that the property must first be alienable before possession can be valid. The Court clarified that while the land must be alienable, it need not have been alienable since 1945, only at the time of the application.
• Republic v. Court of Appeals, G.R. No. 127060 (2002) — Followed. The Court noted that a positive act of the government classifying land as alienable, compounded by established possession before 1945, suffices to allow registration.
• Bracewell v. Court of Appeals, 380 Phil. 156 (2000) — Distinguished. In Bracewell, the application was filed in 1963, nine years before the property was declared alienable and disposable in 1972, hence registration failed. In the present case, the application was filed years after the 1980 certification.
• Palomo v. Court of Appeals, 334 Phil 357 (1997) — Distinguished. Palomo held that forest land is not registrable and possession thereof cannot ripen into ownership. The present case involves land undisputedly classified as alienable and disposable.

• Section 14(1), Presidential Decree No. 1529 (Property Registration Decree) — Governs who may apply for original registration of title. Applied to determine the requisites for registration and the interpretation of the phrase "since June 12, 1945."
• Section 48(b), Commonwealth Act No. 141 (Public Land Act), as amended by P.D. No. 1073 — Governs confirmation of imperfect titles. Noted to be concordant with Section 14(1) of PD 1529, using "agricultural lands" synonymously with "alienable and disposable lands."
• Section 14(2), Presidential Decree No. 1529 — Governs registration of private lands acquired by prescription. Cited as an alternative basis for registration if possession commenced after June 12, 1945.
• Article 1113, Civil Code — Prescription as a mode of acquiring ownership over things within the commerce of men.
• Section 3, Article XII, 1987 Constitution — Alienable lands of the public domain limited to agricultural lands.

Puno (Chairman), Austria-Martinez, Callejo, Sr., and Chico-Nazario, JJ.