G.R. No. 25292 , November 10, 1926
HILADO & HILADO (Attorneys for Jose Ledesma y Rosario), Appellants, vs. THE REGISTER OF DEEDS OF THE PROVINCE OF OCCIDENTAL NEGROS, Appellee.

FACTS

A mortgage deed executed by Julio Ledesma in favor of Jose Ledesma, securing a loan of P225,000 with 12% annual interest and covering six parcels of land (two haciendas under the Torrens system), was presented for registration to the Register of Deeds of Occidental Negros. The Register of Deeds demanded a registration fee of P70 (the fee for a right worth P200,001 to P300,000 under Act No. 2866) *for each of the six parcels*, totaling P420. The mortgagee, Jose Ledesma, through his attorneys Hilado & Hilado, contended that only one fee of P70 should be paid for the entire mortgage covering all six parcels. The matter was elevated to the Court of First Instance of Manila via *consulta*, which ruled that the value of each property must be determined and separate fees based on each property’s value must be paid. The mortgagee appealed this ruling to the Supreme Court.

ISSUE

Whether, under Section 114 of the Land Registration Act as amended by Act No. 2866, a single mortgage covering multiple Torrens-registered parcels of land is subject to multiple registration fees based on the number of parcels, or only one fee based on the total amount of the secured debt.

RULING

The Supreme Court REVERSED the ruling of the lower court. It held that for the purpose of taxing registration fees, an ordinary mortgage on Torrens-registered property constitutes a single “right” under the law. The fee for its recording must be based on the total amount of the debt secured (P225,000), and only one such fee may be collected for recording in one province, regardless of the number of parcels covered. The Court clarified that the schedule of fees in Act No. 2866 is a revenue measure based on the value of the interest involved, not the amount of clerical work. However, if the mortgaged properties are located in different provinces requiring recording in multiple registries, each register of deeds may charge the full fee. The Register of Deeds of Occidental Negros was ordered to admit the mortgage to record upon payment of a single entry fee of P0.50 and a single recording fee of P70. No costs were awarded.