fraudulent or not?

I am in dire need of legal advice regarding our present situation here in the province. Could anyone help me?
This is our case:

A person came into our barangay in 1999 claiming to be the legal owner of the lands we (we, because almost 70 households are being affected here)are presently living. No body knew her and her company. Majority of the elders in the community believed that the place they have errected their homes are public lands. Masukal ito at magubat noon sila daw ang naglinis at naghawan. Negotiations came. They demanded for us to pay or else we will be ejected from our homes. Nobody listens and nobody believes but their representative (a lawyer in the municipality) still go back once in a while showing a land title as a sign of possession in the property. nakipagtawaran sila from 1000-800/sq m noong una then naging 400-300/sq m depende sa location kung malapit sa kalsada mas mahal. Local election came around 2000 ata yun, the mayoralty candidate promised na di kami magagalaw habang sya daw ang nakaupo kasi as he have said meron din daw syang lupa in one of the barangays also in the city na inokopa na ng maga tao and he sell it na lang for around 300/sq m kasi daw di naman nya puede paalisin ang mga tao since madami na daw nago-occupy dito so its better to sell it na lang daw depende sa kakayahan ng settlers. He promised to talked with the owner. He will convinced her na lang daw to do what he have done since majority of us naman daw don't have the capacity to pay for what is demanded of us. Its true kasi almost 85-90% naman talaga ng occupants walang permanenteng trabaho. The issue diminished during his term in fact may mga tao pa nga na nagpunta sa lugar namin, measuring each land being occupied, taga City Assessor's office daw sila, after daw masukat sa City hall na lang daw kami magbu-buwis depende daw babayaran sa laki ng sukat ng lupa mo. We believe them pero alang dumating na notice for payment galing sa nasabing opisina.

Years passed until late June this year a geodetic engr showed up saying na sya daw ang legal representative ng may-ari ng lupa showing a special power of atty to disclose the land issue with us. Matamis syang magsalita nung una, taga city lang din sya kaya wala daw syang plano na lokohin kami at ini-emphasize nya talaga that he is already rich di daw nya paghahangaran ang ano mang kikitain sa amin which at first pinaniwalaan namin. At first sabi nya ipapasok na lang daw sa Community Mortgage Program ng Pag-Ibig yung lupa so that everybody could pay but after a week iba na naman declaration nya di na daw kasi may pera naman kami. 600/sq m ang napagkasunduang presyo if cash, 700/sq m if 2 yrs to pay, 800/sq m if 3-5 yrs to pay. Sagot na daw nila capital gains tax and other taxes pati pag-aayos ng titulo. He will give it daw after a month of payment kailangan lang muna mag down ng 5000 bawat isa. We agreed, nagpagawa na kami ng kasunduan. Sinukat na nila bawat lote, pinapirmahan sa bawat tenant then idinala na nya sa pampanga.

Last month, iba na naman ang declaration nya. Di daw kasi kami nagbigay ng downpayment agad. Dapat daw before august ends nag down na kami. Naki-usap naman mga tao na palagpasin muna ang gawat since dito sa probinsya anihan lang kumikita mga tao. Nagpadala sya ng demand letter 1000/sq m na daw lahat ng taxes kami ang sasagot. Tapos may interes pa kapag utang, if ever nakipagkasundo ka na magbabayad ka sa loob ng 1 yr pero di mo nagawa magiging 1100/sq m na yun.

We already talked to a lawyer but we still need 2nd or 3rd opinion natatakot kasi ang mga tao na ilaban na lang ang kaso dahil baka daw matalo. But I think malakas naman ang kaso namin since there are certain things to consider:

1) Original Certificate of Title ang hawak nila in Spanish letters, di ba based sa PD 892, all spanish titles can not be used now as evidence of land possesion, nagbabase na tau sa torrens system right?
2) Since 2 title yung lupa na sumasakop sa property nila 2 din ang titulo nila. yung isang title na ipinapakita nila eh in lieu lang sa original title ng isang property nila since di na daw ito makilala at sira na nag request sila ng bagong title. meron din itong encumberances sa likod ng titulo
3) Ang capital gains tax ay binabayaran ng nagbebenta ng property hindi ba bakit sa amin nila pababayaran together with other taxes. Base sa record sa city hall 10 years ang di pa nila nababayaran na tax, pati ba iyon ipapasa din sa amin? from 1989-1999 lang kasi ang binayaran nila. Lumalabas na nagbayad lang sila ng tax noong bago sila unang nagpakita sa amin.
4) Hindi pa nagpapakita ang tunay na may-ari, presumably ang tunay na may-ari ay patay na since sila na lang daw ay anak. None of us ask for any proof na sila nga talaga ang tunay na may-ari and that I think is the biggest mistake of us all.

From this case, ano po ba ang maganda naming gawin. 15 days lang ang ibinigay sa amin para sagutin yung demand letter nila..
Pls. help nman po so that we will be enlightened. Thanks in advance

(1) Yes. According to Section 1 of PD 892, Spanish titles cannot be used as evidence of land ownership in any registration proceedings under the Torrens system.

The other party may argue that Spanish titles are not allowed as evidence ONLY IN REGISTRATION PROCEEDINGS but not in actions for ejectment or to quiet title or to recover possession of real property (due to the wording of Section 1 which states "registration proceedings" only).

However, in Evangelista vs. Santiago (G.R. No. 157447. April 29, 2005), the Supreme Court ruled:

"xxxcourts, likewise, are prevented from accepting and indirectly confirming such Spanish title in some other form of action brought before them (i.e., removal of cloud on or quieting of title), only short of ordering its recording or registration. To rule otherwise would open the doors to the circumvention of P.D. No. 892, and give rise to the existence of land titles, recognized and affirmed by the courts, but would never be recorded under the Torrens system of registration. This would definitely undermine the Torrens system and cause confusion and instability in property ownership that P.D. No. 892 intended to eliminate."

It would appear that by virtue of PD 892, all Spanish titles may no longer be used as evidence in any court proceedings.

(2) If they have another title (registered under the Torrens System) and they can prove that the said title covers the property where your houses are erected, then they have a strong case against you.

(3) Capital gains tax is to be shouldered by the seller UNLESS the parties agree otherwise.

(4) If they are the sons/heirs of the registered owner of the property, they have a better right against you even if the property has not yet been transferred in their name. All they have to do is to allege and prove that they are the heirs of the registered owner of the property.

If they cannot prove any right to the property, you will certainly be preferred in the possession thereof as you are presently occupying the property.

welcome back AttyButterbean. I always look forward reading your posts. you help people and we law students at the same time benefit by learning how to apply the law in real life scenarios

Thanks for the post. If anyone needs legal advice; feel free to contact me anytime.

maraming salamat po sa reply nyo sa querry ko. now I know what to do. its best to have our own lawyer na siguro para malaman yung legality talaga ng issue.