176549, October 10, 2018), is a reversal of a 2016 SC decision that adjudged CLOAs as not equivalent to a Torrens certificate
of title which rendered them voidable.
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.
To this classification should be exempted the pieces of land that have been issued Torrens Certificates
of Title, like those 'covered by the Original Certificates of Title No.
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'.