In a recent case involving the cancellation of an inoperative notice of levy annotated on the certificate of title, the Haron Lledo Law Office provides insightful opinions on the proper action and venue. Here’s a summary of their analysis:

Background Facts

C–Company faced a legal dispute with M–Corp., resulting in the latter levying on five parcels of land owned by C–Company. Despite an auction sale to M–Corp, the certificates of title were not transferred.

For failure to pay the real property tax, the parcels of land were auctioned. Subsequently, Mr. Y purchased the land and petitioned for new titles, which were granted by the RTC of San Carlos City.

Proper Action for Cancellation

The recommended action is a complaint for quieting of title under Rule 63 Section 1 of the Rules of Court and Articles 476 and 477 of the Civil Code. This action aims to prove the legal title of the complainant and the invalidity of the encumbrance on the title.

Venue Selection

An action to quiet title is considered a real action and should be filed in the RTC with jurisdiction over the property’s location. Despite the issuance of the notice of levy by a different RTC, the proper venue is where the property is situated, as evidenced by similar cases where venue rules were followed based on property location.

Conclusion

The Haron Lledo Law Office concludes that the appropriate venue for an action to quiet title in this case is the RTC of San Carlos City. This opinion is grounded in legal precedent and the specific provisions of the Rules of Court and the Civil Code.