The State's power, right to regulate real property
The State has the power and the right to provide for a procedure for
adjudicating property titles. It has control over real estate within its limits.
The conditions of ownership of immovable property within the State are subject
to its rules, concerning the holding, transfer, liability of obligations,
private or public, and the methods of establishing the title of ownership, and
for the purpose of deciding these questions, the State may provide reasonable
rules or procedures. The State not only has the right to determine how land
ownership can be acquired and proven, it is also within its legislative capacity
to establish the mode of procedure to achieve such an end.
The reason behind the State's power and right as discussed above is the public
interest in the settlement of disputes regarding ownership and possession of
land. It can be argued further that the Government must regulate
possession, conveyance and other methods and processes affecting real property
because public order, to a great extent, depends on such regulation. This
is exactly why the law adopting the Torrens system, among others, has been
enacted, the primary purpose of which is to quiet title. (G. R. No. 8936, October 02, 1915)