Since most people engage in only one real property transaction in their whole life (buying a house), it is understandable that most would also not understand the intricate details of real property laws and all the possible details impacting title to real property.
- Let's say you sell your old car to a guy named Bob.
- If you've ever sold a used car you know that you are required to sign your name on the back of the certificate of title where it says "Seller" or "Owner."
- You also are required to produce a bill of sale.
- You produce the bill of sale.
- You sign the back of the title.
- Bob gives you the money.
- Bob drives off in your old car.
- But is it his car?
- Yes and no.
- As far as you and Bob are concerned, yes.
- As far as the government is concerned, no.
- Until Bob goes to the DMV and requests the transfer of ownership and a new copy of the certificate of title with his name on it, the title Bob has still has your name on it, and as far as the government is concerned, it is YOUR car.
- Bob gets in an accident.
- The police see he is driving your car.
- The police come to see you.
- You produce the bill of sale - proof that you sold the car.
- Phew! You're off the hook.
- It's not your fault that Bob never went to DMV to change the title.
And Guam law requires that the existence of these documents and their effect, be recorded in the memorials section of the certificate title.
The matter is clearly not “alienation,” but simply an assigning of the title of a property that is transferred and renamed from one public juridic person subject to the Ordinary to another public juridic person subject to the same Ordinary.
Continued on Part 6