MORTGAGE and LEASES

• Under Section 60. Mortgage or lease of registered land. – Mortgage

and leases shall be registered in the manner provided in Section 54 of
this Decree. The owner of the registered land may mortgage or lease
it by executing the deed in a form sufficient in law. Such deed of
mortgage or lease and all instruments which assign, extend, discharge
or otherwise deal with the mortgage or lease shall be registered, and
shall take effect upon the title only from time of registration.
• No mortgagee’s or lessee’s duplicate certificate of title shall hereafter
be issued by the Registers of Deeds, and those issued prior to the
effectivity of this Decree are hereby deemed cancelled and the
holders thereof shall immediately surrender the same to the Register
of Deed concerned.
PARTIES TO A MORTGAGE
• Mortgagor
• Mortgagee
OBJECTS OF MORTGAGE
• Immovable
• Alienable real rights
ESSENTIAL REQUISITES OF MORTGAGE
Needed for VALIDITY:
1. That they be constituted to secure the fulfillment of a principal
obligations;
2. That the mortgagor be the absolute owner of the thing mortgaged;
3. That the mortgagor constituting the mortgage have the free disposal of
their property, and the absence thereof, that they be legally authorized for
the purpose;
4. It cannot exist without a valid obligation. Nevertheless, it could be
constituted to guarantee the performance of a voidable or unenforceable
contract. It may also guarantee a natural obligation.
Needed for ENFORCEABILITY:
5. It must be recorded in the Registry of Property
What are the effects of failure to register?
• Failure does not invalidate the mortgage
• The mortgage is nevertheless binding between the parties only, but not to the
third persons who does not have notice of such mortgage
CHARACTERISTICS OF MORTGAGE
• It is a real right
• It is an accessory contract
• It is indivisible
• It is inseparable
ESSENCE OF A CONTRACT OF MORTGAGE
When the principal obligation becomes due, the things in which the
mortgage consists may be alienated for the payment to the creditor
EFFECTIVITY
• A mortgage is effective only from the time of registration
PRESCRIPTIVE PERIOD
• Since a mortgage is a written contract, an action for could be brought
within 10 years from the time the right of action accrues or from the
default in payment of the loan amortizations. The prescription is
interrupted when:
• The action is filed in the court
• There is a written extrajudicial demand by the creditors, and
• When there is any written acknowledgement of the debt by the debtor.