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http://www.philhealth.gov.ph/about_us/ra7875.

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QUIETING OF TITLE

Art. 476. Whenever there is a cloud on title to real property or any
interest therein, by reason of any instrument, record, claim,
encumbrance or proceeding which is apparently valid or effective
but is in truth and in fact invalid, ineffective, voidable, or unenforceable, and may be
prejudicial to said title, an action may be brought to remove such cloud or to quiet the title.

An action may also be brought to prevent a cloud from being cast upon title to real property or any
interest therein.

TWO ACTIONS ARE BEING REFERRED TO IN THESE PROVISIONS
1. REMEDIALaction to remove cloud or to quiet title
2. PREVENTIVEaction to prevent a future cloud or doubt

EXISTENCE OF A CLOUD
The cloud on title exists because
1. Of an instrument or record or claim or encumberance or proceeding
2. Which is apparently valid or effective
3. But is in truth and in fact, invalid, ineffective, voidable or unenforceable or extinguished or
barred by extinctive prescription
4. And may be prejudicial to the title

RIGHT OF A PROPERTY OWNER TO HAVE CLOUDS ELIMINATED
1. That their respective rights be determined
2. Not only to place things in their proper place, to make the one who has no rights to said
immovable respect and not disturb the other
3. But also for the benefit of both
4. So that he who has a right would see every cloud of doubt over the property displaced
5. And he could afterwards without fear introduce the improvements
he may desire, to use and even to abuse the property as he deems best

REASONS FOR ALLOWING THE ACTION
1. The prevention of litigation
2. The protection of the true title and possession
3. The promotion of right and justice

N.B: the nature of the action for quieting of title is an action in personam

DOES AN ACTION FOR QUIETING OF TITLE PRESCRIBE?
It depends
1. If the plaintiff is in possession of the property, the action doesn't prescribe
2. If the plaintiff is not in possession of the property, the action may prescribe. The period would be
either 10 or 30 years. It may also be barred by laches.

Art. 477. The plaintiff must have legal or equitable title to, or
interest in the real property which is the subject matter of the action. He need not be in
possession of said property.

NECESSARY FOR TITLE OF PLAINTIFF
Plaintiff must have either equitable or legal ownership over the property
Art. 478. There may also be an action to quiet title or remove a cloud therefrom when the
contract, instrument or other obligation
has been extinguished or has terminated, or has been barred by extinctive prescription.

Art. 479. The plaintiff must return to the defendant all benefits he may have received from the latter,
or reimburse him for expenses that may have redounded to the plaintiff's benefit.

N.B: General rule based on equity

Art. 480. The principles of the general law on the quieting of title
are hereby adopted insofar as they are not in conflict with this Code.

Art. 481. The procedure for the quieting of title or the removal of a
cloud therefrom shall be governed by such rules of court as the Supreme Court shall
promulgated.

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