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    CASE NO. 106 Philippine National Bank vs. Primitiva Mallorca

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    juhriz
    The petitioner bought a 20,000 square meter portion of land from Lavilles that was mortgaged to Philippine National Bank (PNB) to secure a loan. When Lavilles failed to repay the loan, PNB foreclosed on the mortgage and bought the entire property, including the portion bought by the petitioner, at a foreclosure sale. The petitioner sued PNB claiming her portion was unaffected by the foreclosure since she was not party to the original mortgage. However, the court ruled that under Philippine law, a recorded real estate mortgage is a lien on the entire property that remains with the property regardless of ownership changes. As the petitioner bought a portion of land subject to the pre-existing mortgage, her interest was subordinate to

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    CASE NO. 106 Philippine National Bank vs. Primitiva Mallorca

    Uploaded by

    juhriz
    28 views2 pages
    The petitioner bought a 20,000 square meter portion of land from Lavilles that was mortgaged to Philippine National Bank (PNB) to secure a loan. When Lavilles failed to repay the loan, PNB foreclosed on the mortgage and bought the entire property, including the portion bought by the petitioner, at a foreclosure sale. The petitioner sued PNB claiming her portion was unaffected by the foreclosure since she was not party to the original mortgage. However, the court ruled that under Philippine law, a recorded real estate mortgage is a lien on the entire property that remains with the property regardless of ownership changes. As the petitioner bought a portion of land subject to the pre-existing mortgage, her interest was subordinate to

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    The petitioner bought a 20,000 square meter portion of land from Lavilles that was mortgaged to Philippine National Bank (PNB) to secure a loan. When Lavilles failed to repay the loan, PNB foreclosed on the mortgage and bought the entire property, including the portion bought by the petitioner, at a foreclosure sale. The petitioner sued PNB claiming her portion was unaffected by the foreclosure since she was not party to the original mortgage. However, the court ruled that under Philippine law, a recorded real estate mortgage is a lien on the entire property that remains with the property regardless of ownership changes. As the petitioner bought a portion of land subject to the pre-existing mortgage, her interest was subordinate to

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views2 pages

    CASE NO. 106 Philippine National Bank vs. Primitiva Mallorca

    Uploaded by

    juhriz
    The petitioner bought a 20,000 square meter portion of land from Lavilles that was mortgaged to Philippine National Bank (PNB) to secure a loan. When Lavilles failed to repay the loan, PNB foreclosed on the mortgage and bought the entire property, including the portion bought by the petitioner, at a foreclosure sale. The petitioner sued PNB claiming her portion was unaffected by the foreclosure since she was not party to the original mortgage. However, the court ruled that under Philippine law, a recorded real estate mortgage is a lien on the entire property that remains with the property regardless of ownership changes. As the petitioner bought a portion of land subject to the pre-existing mortgage, her interest was subordinate to

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    CASE NO.

    106
    PHILIPPINE NATIONAL BANK VS. PRIMITIVA MALLORCA
    G.R. No. L-22538
    October 31, 1967

    Topic: Real Estate Mortgage

    Doctrines:
    1. A recorded real estate mortgage is a right in rem, a lien inseparable from the property
    mortgaged.
    2. Real estate mortgage is indivisible, thus each and every parcel of land under mortgage
    answers for the totality of the debt.
    3. Registration of the mortgage in the Register of Deeds is notice to all persons of the
    existence thereof.
    4. Failure of the owner of a parcel of land mortgaged to exercise his right of redemption
    ends his interest in the land and estops him from denying the mortgage lien thereon.

    Facts
    Lavilles mortgaged a 48.965 sq. m. parcel of land to the PNB as security for a loan of P1,800.00.
    The lot was covered by Transfer Certificate of Title 27070 in the name of Lavilles. The mortgage
    was duly recorded. While the mortgage above-described was in full force and effect, and without
    PNB's knowledge and consent, Lavilles sold to petitioner the 20,000 square meters of the
    mortgaged land. Lavilles failed to pay her mortgage debt. PNB foreclosed the mortgage
    extrajudicially. A certificate of sale was issued to PNB as the highest bidder in the foreclosure
    sale. This certificate of sale was registered with the Register of Deeds.

    Petitioner sued PNB to enforce her right of redemption with damages. However petitioner failed
    to exercise her right of redemption as decreed by the court. Thus, the final deed of sale in favor
    of PNB was presented to the Register of Deeds for registration. The Register of Deeds refused to
    register without petitioner's co-owner's copy of TCT 24256. The Register of Deeds required
    petitioner to surrender said copy. She did not comply. Petitioner stands that her undivided
    interest consisting of 20,000 sq. m. of the mortgaged lot, remained unaffected by the foreclosure
    and subsequent sale to PNB because she was not a party to the real estate mortgage in favor of
    PNB, and she "neither secured nor contracted a loan" with said bank.

    Issue
    Whether or not the undivided interest of herein petitioner in the 20,000 sq. m of the mortgaged
    lot is unaffected by the foreclosure and subsequent sale to the PNB.

    Held
    No. Article 2126 of the Civil Code, a "mortgage directly and immediately subjects the property
    upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for
    whose security it was constituted." Sale or transfer cannot affect or release the mortgage. A
    purchaser is necessarily bound to acknowledge and respect the encumbrance to which is
    subjected the purchased thing and which is at the disposal of the creditor "in order that he, under
    the terms of the contract, may recover the amount of his credit therefrom." For, a recorded real
    estate is a right in rem, a lien on the property whoever its owner may be. Because the personality
    of the owner is disregarded; the mortgage subsists notwithstanding changes of ownership; the
    last transferee is just as much of a debtor as the first one; and this, independent of whether the
    transferee knows or not the person of the mortgagee. A mortgage lien is inseparable from the
    property mortgaged. All subsequent purchasers thereof, must respect the mortgage, whether the
    transfer to them be with or without the consent of the mortgagee. The mortgage, until discharge,
    follows the property.

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