VII- SUBSEQUENT REGISTRATION

Art. 1358. The following must appear in a public document:

(1) 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 a
governed by Articles 1403, No. 2, and 1405;
(2) The cession, repudiation or renunciation of hereditary rights or of those of the conjugal partnership
of gains;
(3) 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;
(4) The cession of actions or rights proceeding from an act appearing in a public document.
All other contracts where the amount involved exceeds five hundred pesos must appear in writing,
even a private one. But sales of goods, chattels or things in action are governed by Articles, 1403, No.
2 and 1405. (1280a)

ACT NO. 3135

ACT NO. 3135 - AN ACT TO REGULATE THE SALE OF PROPERTY UNDER SPECIAL POWERS INSERTED IN OR
ANNEXED TO REAL-ESTATE MORTGAGES

Section 1. When a sale is made under a special power inserted in or attached to any real-estate mortgage hereafter made as
security for the payment of money or the fulfillment of any other obligation, the provisions of the following election shall govern
as to the manner in which the sale and redemption shall be effected, whether or not provision for the same is made in the
power.
Sec. 2. Said sale cannot be made legally outside of the province in which the property sold is situated; and in case the place
within said province in which the sale is to be made is subject to stipulation, such sale shall be made in said place or in the
municipal
building
of
the
municipality
in
which
the
property
or
part
thereof
is
situated.
Sec. 3. Notice shall be given by posting notices of the sale for not less than twenty days in at least three public places of the
municipality or city where the property is situated, and if such property is worth more than four hundred pesos, such notice shall
also be published once a week for at least three consecutive weeks in a newspaper of general circulation in the municipality or
city.
Sec. 4. The sale shall be made at public auction, between the hours or nine in the morning and four in the afternoon; and shall
be under the direction of the sheriff of the province, the justice or auxiliary justice of the peace of the municipality in which such
sale has to be made, or a notary public of said municipality, who shall be entitled to collect a fee of five pesos each day of actual
work
performed,
in
addition
to
his
expenses.
Sec. 5. At any sale, the creditor, trustee, or other persons authorized to act for the creditor, may participate in the bidding and
purchase under the same conditions as any other bidder, unless the contrary has been expressly provided in the mortgage or
trust
deed
under
which
the
sale
is
made.
Sec. 6. In all cases in which an extrajudicial sale is made under the special power hereinbefore referred to, the debtor, his
successors in interest or any judicial creditor or judgment creditor of said debtor, or any person having a lien on the property

subsequent to the mortgage or deed of trust under which the property is sold, may redeem the same at any time within the term
of one year from and after the date of the sale; and such redemption shall be governed by the provisions of sections four
hundred and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in so far as these are not
inconsistent
with
the
provisions
of
this
Act.
Sec. 7. In any sale made under the provisions of this Act, the purchaser may petition the Court of First Instance of the province
or place where the property or any part thereof is situated, to give him possession thereof during the redemption period,
furnishing bond in an amount equivalent to the use of the property for a period of twelve months, to indemnify the debtor in case
it be shown that the sale was made without violating the mortgage or without complying with the requirements of this Act. Such
petition shall be made under oath and filed in form of an ex parte motion in the registration or cadastral proceedings if the
property is registered, or in special proceedings in the case of property registered under the Mortgage Law or under section one
hundred and ninety-four of the Administrative Code, or of any other real property encumbered with a mortgage duly registered in
the office of any register of deeds in accordance with any existing law, and in each case the clerk of the court shall, upon the
filing of such petition, collect the fees specified in paragraph eleven of section one hundred and fourteen of Act Numbered Four
hundred and ninety-six, as amended by Act Numbered Twenty-eight hundred and sixty-six, and the court shall, upon approval of
the bond, order that a writ of possession issue, addressed to the sheriff of the province in which the property is situated, who
shall
execute
said
order
immediately.
Sec. 8. The debtor may, in the proceedings in which possession was requested, but not later than thirty days after the purchaser
was given possession, petition that the sale be set aside and the writ of possession cancelled, specifying the damages suffered
by him, because the mortgage was not violated or the sale was not made in accordance with the provisions hereof, and the
court shall take cognizance of this petition in accordance with the summary procedure provided for in section one hundred and
twelve of Act Numbered Four hundred and ninety-six; and if it finds the complaint of the debtor justified, it shall dispose in his
favor of all or part of the bond furnished by the person who obtained possession. Either of the parties may appeal from the order
of the judge in accordance with section fourteen of Act Numbered Four hundred and ninety-six; but the order of possession shall
continue
in
effect
during
the
pendency
of
the
appeal.
Sec. 9. When the property is redeemed after the purchaser has been given possession, the redeemer shall be entitled to deduct
from the price of redemption any rentals that said purchaser may have collected in case the property or any part thereof was
rented; if the purchaser occupied the property as his own dwelling, it being town property, or used it gainfully, it being rural
property, the redeemer may deduct from the price the interest of one per centum per month provided for in section four hundred
and
sixty-five
of
the
Code
of
Civil
Procedure.
Sec.

10. This

Act

shall

take

effect

on

its

Approved: March 6, 1924

RULE 68
Foreclosure of Real Estate Mortgage

Section 3. Sale of mortgaged property; effect. When the defendant, after being directed to do so
as provided in the next preceding section, fails to pay the amount of the judgment within the period
specified therein, the court, upon motion, shall order the property to be sold in the manner and under
the provisions of Rule 39 and other regulations governing sales of real estate under execution. Such
sale shall not affect the rights of persons holding prior encumbrances upon the property or a part
thereof, and when confirmed by an order of the court, also upon motion, it shall operate to divest the
rights in the property of all the parties to the action and to vest their rights in the purchaser, subject to
such rights of redemption as may be allowed by law.
Upon the finality of the order of confirmation or upon the expiration of the period of redemption when
allowed by law, the purchaser at the auction sale or last redemptioner, if any, shall be entitled to the
possession of the property unless a third party is actually holding the same adversely to the judgment
obligor. The said purchaser or last redemptioner may secure a writ of possession, upon motion, from
the court which ordered the foreclosure. (3a)

approval.