Ensuring Trust and Security: The Critical Role of Notarization in the Philippines

Notarization is a formal process that involves the certification of documents by a notary public. In the Philippines, a notary public is a lawyer who must be in good standing and must not have been convicted in the first instance of any crime involving moral turpitude.¹

The fundamental question many ask is: Why is it necessary to have a document notarized?  The answer lies in the multiple layers of protection, credibility, and legal compliance that notarization provides.

Here’s an in depth discussion of the critical role of notarization in ensuring the security and enforceability of documents in the Philippines:

Verification of Signatories

One of the primary functions of notarization is to authenticate the identities of the signatories. A notary public verifies that the individuals signing the document are who they claim to be, by personal appearance and by checking their valid identification documents. The notary public will also verify the genuineness of the signatures of the signatories to the document that will be notarized.

This verification process helps prevent identity fraud and ensures that the document is being executed by the rightful parties. The notary public ensures that all parties are signing the document willingly and without any undue influence. This impartial oversight is crucial in transactions where there is a risk of manipulation or fraud, providing a layer of protection for all involved.

Self-Authentication in Court

Notarization converts a private document into a public document, which is considered self-authenticating. This means that a notarized document is presumed to be genuine and does not require additional evidence to prove its authenticity in court. Consequently, it is entitled to full faith and credit upon its face.²

A notarized document enjoys the presumption of regularity. This means that the notarized document will be treated as having been created properly and in the usual manner. Any person who intends to prove that a notarized document is false, flawed, or defective must show clear and convincing evidence.³

Validity of Contracts

Generally, notarization is not a requirement for the validity of contracts. The law provides that contracts shall be obligatory in whatever form they may have been entered into, provided that all the essential requisites for their validity which are consent, object or subject matter, and cause or the reason for which the parties have executed the contract are present. The exception is when the law requires that a contract or document be in some specific form in order that they may be valid or enforceable.⁴

Some examples of contracts that must be in a public document to be valid are the following:

1. Sales of immovable property when the other party seeks to rescind the contract for failure to pay the agreed price at the time agreed upon, the rescission is required to be made upon the other party in writing either judicially or by a notarial act.⁵
2. Donations of immovable property must be made in a public document which clearly specifies the property being donated and the value of the charges that the recipient must satisfy. The recipient must accept the donation in the same document or if in another document, the acceptant must be made in a public document.⁶

Registrability of Deeds and Conveyances

Aside from the few exceptions such as those mentioned above, most contracts do not need notarization to be valid and effective as between the parties. However, notarization is essential to bind third persons.

Article 1358 of the Civil Code of the Philippines provides that the following documents must appear in a public document:

• acts and contracts for the purpose of creation, transmission, modification, or extinguishment of real rights over immovable property; 
• cession, repudiation or renunciation of hereditary rights or those of the conjugal partnership of gains; 
• the power to administer property, or any other power which has for its object an act appearing or which should appear in a public document, or should prejudice a third person; and 
• the cessation of actions or rights proceeding from the act appearing in a public document.⁷

Since the law provides that the contracts mentioned above must be contained in a public document, what happens if they are not notarized?

As clarified by the Supreme Court in a long line of cases, the requirement under Article 1358 that certain documents be contained in a public document is only for convenience. This formal requirement is not essential to the validity or enforceability of the transaction.⁸ We must bear in mind, however, that although private documents remain valid and in full force between the parties to it, notarizing it will turn it into a public document, which will then have a binding effect on third persons. For contracts involving real property, notarization will allow for the registration of the same with the Register of Deeds.

Corollarily, Article 709 of the Civil Code explicitly states that “the titles of ownership, or other rights over immovable property, which are not duly inscribed or annotated in the Registry of property shall not prejudice third persons.” 

In one case where the parties’ deed of sale was improperly notarized, the Supreme Court ruled that while it did not affect the validity of the sale of the properties, the deed of sale became unregistrable because notarization is essential to the registrability of deeds and conveyances. Thus, the parties were required by the Supreme Court to execute anew a registrable deed of conveyance.⁹

Creation of Public Records

Notarized documents are often entered into public records, creating a traceable history that can be referenced in the future. This public record is essential for transparency and accountability. It provides a reliable source of information that can be used to verify the authenticity and validity of documents.

Public records ensure that important transactions, such as property transfers or contractual agreements, are open to scrutiny. This transparency helps prevent secret dealings and promotes fairness in transactions. Moreover, by maintaining a public record, parties involved in a transaction are held accountable for their actions. If disputes arise, the notarized document in the public record can serve as concrete evidence of what was agreed upon.

Professional Oversight

Notaries public in the Philippines are lawyers who provide professional oversight during the notarization process. They ensure that the document complies with legal requirements and that the signatories understand the implications of their actions. This legal expertise adds a layer of protection and ensures that the document is executed correctly.

Notarization is a fundamental process that ensures the security and enforceability of documents. By verifying identities, preventing fraud, ensuring legal compliance, creating public records, and providing professional oversight, notarization adds a critical layer of protection and trust. Whether for personal agreements, business transactions, or legal proceedings, notarized documents offer a level of reliability and credibility that is essential in safeguarding interests and upholding the rule of law.

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Prepared by Cheza Marie Biliran.

FOOTNOTES

1. Sec. 1, Rule III of A.M. No. 02-8-13-SC, otherwise known as the 2004 Rules on Notarial Practice.
2. Kiener vs. Amores, A.C. No. 9417, 18 November 2020.
3. Almeda, et. al vs. Santos, et. al, G.R. No. 194189, 14 September 2017.
4. Article 1356 of the Civil Code of the Philippines.
5. Article 1592 of the Civil Code of the Philippines.
6. Article 749 of the Civil Code of the Philippines; Abellara v. Balanag et al., G.R. No. L-11970, 22 March 1918.
7. Article 1358 of the Civil Code of the Philippines.
8. Heirs of Soledad Alido vs. Flora Campano, G.R. No. 226065, 29 July 2019.
9. Spouses Aguinaldo vs. Torres, Jr. G.R. No. 225808, 11 September 2017.