The Manila Building And Loan Association And Gregorio Penalosa, Petitioners-Appellants

Summary

The Manila Building and Loan Association sought to register a building constructed on land owned by Benito Legarda but leased to them through Gregorio Penalosa. The Court of Land Registration denied the application, and the Supreme Court affirmed, establishing that under the Land Registration Act, buildings cannot be registered separately from the land they occupy when owned by different persons. The Court held that buildings are accessories to land and both must pertain to the same owner for separate registration. The decision clarified that while the Mortgage Law permits mortgaging buildings on another's land, this does not extend to separate registration rights. The ruling emphasized that lessees lack independent possession and face the landowner's right to building removal upon lease expiration, making separate registration inappropriate and potentially unstable.