This is the doctrine of 'the mortgagee in good faith' based on the rule that buyers or mortgagees dealing with property covered by a Torrens Certificate
of Title are not required to go beyond what appears on the face of the title.
A person dealing with registered land has a right to rely on its Torrens certificate of title, unless the registration thereof is attended to with bad faith or fraud.
A Torrens certificate of title is indefeasible and binding upon the whole world unless it is nullified by a court of competent jurisdiction in a direct proceeding for cancellation of title.
The power and authority of the court in the instant case is conferred upon it by Republic Act 26 entitled 'An Act providing a special procedure for the reconstitution of Torrens Certificates
of Title lost or destroyed'.