Land Titles & Deeds

Real Estate Mortgage

Real Estate Mortgage

Future Improvements Included in Mortgage A building constructed by the owner of a mortgaged land is an improvement thereon within the purview of Art. 2127, and is included in the mortgage although constructed after said mortgage was constituted. (Dilag vs. Heirs of Resurreccion, 76 Phil 650)

Real Estate Mortgage

Art. 1409(3) which declares as void and inexistent conracts such as those whose cause or object did not exist at the time of the transaction and Art. 2085 which requires that the mortgagor be the absolute owner of the thing mortgage, being general provisions, must yield to particular provision of Art. 2127 in view of the rule that it is the specific provision which must control and the general provisions which must yield, and this is irrespective of their dates or relative positions in the statute. (Li Hsui Lin vs. Philamlife, 58 O.G. 40 CA)

Real Estate Mortgage

Machineries and Fixtures Included in Real Mortgage, unless stipulated to be excluded Fruits and Rents of Mortgaged Property Included - Provided they have not yet been gathered/ collected when the obligation secured falls due.

Real Estate Mortgage

Continuing Credit Secured by Mortgage
A mortgage given to secure advancements is a continuing security, and the mere fact that the payments on a particular day equal the amount of the mortgage will not discharge the mortgage before maturity so long as advancement may be demanded and are received.

Real Estate Mortgage

Mortgage Constituted by Private Document not Legal
Sec. 127 of Act No. 496, provides that the document be signed by the mortgagor executing it, in the presence of two witnesses, and acknowledged as his free act and deed before a notary public. Art. 1358 CC, provides that acts and contracts which have for their object, among other things, the creation of real rights over immovable property must appear in a public document

Real Estate Mortgage

Mortgage not Registered; Effect.
The failure to register did not nullify the obligation secured. As between the parties, such contract constituted a valid subsisting obligation and could be used as evidence or proof in an action for collection. Art. 2125 CC provides that if the instrument is not recorded, the mortgage is nevertheless binding between the parties.

Real Estate Mortgage

May Mortgage be Registered without the Owners Duplicate Title?
No, where the owners duplicate certificate of title is being withheld by the owner or otherwise could not be presented at the time of registration, the ROD may be requested to proceed in accordance with Sec. 72 of Act No. 496 ( now Sec. 71 of P.D. 1529). ( Co Chin Leng vs. Co Chin Tong, et al. G.R. No. L-29119)

Real Estate Mortgage

Assignment of Mortgage; Registration.
Pursuant to to Sec. 60 of Act No. 496, it is required that an assignment of mortgage be registered, the same to take effect upon the title only from the the time of registration. Non- registration is valid between the parties but the assignee may not be able to avail of the due protection of the law against third person.

Real Estate Mortgage

Sale of Mortgage Property does not Necessarily Constitute Novation of Mortgage.
Novation of mortgage may only be accomplished