JUN

30

Vda. De Baustista v. Marcos, G.R. No. L-17072 (October 31, 1961) Case
Digest
Ownership > Ownership in General > Rights of an Owner > Use, Possession, Fruits and Disposition
Facts:
Marcos obtained a loan from Bautista secured by a mortgage of an unregistered parcel of land. It was to last
for 3 years and the possession of the land mortgaged was to be turned over to Bautista by way of usufruct.
Marcos filed an application for the issuance of a free patent over the land. The free patent was issued to her
and the land was registered in her name.
Marcos was unable to pay her debt to Bautista so the latter filed for the foreclosure of her mortgage on the land
given as a security.
Issue:
Whether or not Bautista can foreclose the land made as a security for the debt.
Held:
No, the mortgage is void and ineffective because Marcos was not yet the owner of the land when the mortgage
was executed. Hence, Marcos could not encumber the same to Bautista.
Neither could the subsequent acquisition by Marcos of title over the land through the issuance of a free patent
validate and legalize the mortgage since upon the issuance of the said patent, the land was brought under the
operations of the Public Land Law that prohibits the taking of said land for the satisfaction of debts contracted
prior to the expiration of 5 years from the issuance of the patent.
Marcos had possessory rights over the land before the title was vested in her name, and these possessory
rights could validly be transferred to Bautista, as Marcos did in the deed of mortgage.