Practice question
Lara’s agent fraudulently registers Lara’s land in the agent’s own name. The agent remains the registered holder, and Lara can obtain reconveyance; no innocent purchaser has acquired a registered right. The agent is insolvent. Under Stilianopoulos, does that insolvency alone convert this breach-of-trust loss into a compensable Fund loss?
- Yes, insolvency automatically makes every trust breach compensable.
- Yes, because any registration eliminates the section101 exclusion.
- Yes, because an agent can never be sued for reconveyance.
- No, insolvency alone does not remove the trust-breach exclusion or create Torrens-based preclusion from recovery.
- No, because only government employees may cause a qualifying loss.
Legal references
- https://lawphil.net/statutes/presdecs/pd1978/pd_1529_1978.html — PD1529, sections95,97,101.
- https://lawphil.net/judjuris/juri2018/jul2018/gr_224678_2018.html — Spouses Stilianopoulos v Register of Deeds for Legazpi City, GR224678, July3 2018, main opinion: registration fraud and breach of trust.
- https://lawphil.net/judjuris/juri2015/aug2015/gr_171804_2015.html — Register of Deeds of Negros Occidental v Anglo, Sr., GR171804, August5 2015, main opinion: section95 and claimant negligence.
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