Are all contracts required to be notarized?
In Tabao v. Lacaba, A.C. No. 9269, March 13, 2019 citing Triol v. Agcaoili, Jr., A.C. No. 12011, June 26, 2018 the Supreme Court reiterated the rule that “[n]otarization converts a private document into a public document, making it admissible in evidence without further proof of its authenticity. Thus, a notarized document is, by law, entitled to full faith and credit upon its face. It is for this reason that a notary public must observe with utmost care the basic requirements in the performance of his notarial duties; otherwise, the public’s confidence in the integrity of a notarized document would be undermined.”
Article 1358 of the New Civil Code requires the following to appear in a public document:
- Acts and contracts which have for their object the creation, transmission, modification or extinguishment of real rights over immovable property; sales of real property or of an interest therein are governed by articles 1403, No. 2, and 1405;
- The cession, repudiation or renunciation of hereditary rights or of 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 cession of actions or rights proceeding from an act appearing in a public document.
While notarization is not required for all types of contracts for its validity, the importance attached to the act of notarization cannot be overemphasized.
As held by the Supreme Court in Gatan vs. Vinarao, G.R. No. 205912, 18 October 2017, “a document acknowledged before a Notary Public is a public document that enjoys the presumption of regularity. It is a prima facie evidence of the truth of the facts stated therein and a conclusive presumption of its existence and due execution. (Ocampo vs. Land Bank of the Philippines, 591 SCRA 562, 571 [2009]). Otherwise stated, public or notarial documents, or those instruments duly acknowledged or proved and certified as provided by law, may be presented in evidence without further proof, the certificate of acknowledgment being prima facie evidence of the execution of the instrument or document involved (Alfacero vs. Sevilla, 411 SCRA 387, 393 [2003]). In order to contradict the presumption of regularity of a public document, evidence must be clear, convincing, and more than merely preponderant.”