REAL MORTGAGE Article 2124. Only the following property may be the object of a contract of mortgage 1. !mmo !mmo"a "abl ble# e#$$ 2. Alienable real right# in accor%ance accor%ance with the law#& impo#e% 'pon immo"able#. (e"erthele##& mo"able# may be the object of a chattel mortgage. Real Mortgage A contract in which the debtor guarantees to the creditor creditor the fulllment of a principal obligations, subjecting for the faithful compliance therewith a real property property in case of non-fulllment of said obligation at the times stipulated.
)haracteri#tic# )haracteri#tic# of a Real Mortgage a. b. c. d. e. f. g. h. i.
It is a rea reall rig right ht It is an acce accesso ssory ry cont contrac ractt It is indi indivi visi sibl ble e It is is ins insep epar arab able le It is is a rea reall prop proper erty ty It is a limi limitat tation ion on owners ownership hip It can can secure secure all kinds kinds of obliga obligation tion The pro property perty cannot cannot be be appro appropria priated ted The The mor mortg tgag age e is is a lien lien
*in%# of Real Mortgage# a. oluntary oluntary or !onvent !onventiona ionall " created created by the parties parties b. #egal $ortgage $ortgage " one re%uired re%uired by law to guarantee guarantee performance performance c. &%uitable $ortgage " one which reveals an intent to make make the property a security, even if the contract lacks the proper formalities of a real estate mortgage
Article 212+. !n a%%ition to the re,'i#ite# #tate% in Article 2-+ 1& it i# in%i#pen#ible& in or%er that a mortgage may be "ali%ly con#tit'te%& that the %oc'ment in which it appear# be recor%e%& the mortgage i# ne"erthele## bin%ing between the partie#. The per#on in who#e fa"or the law e#tabli#he# a mortgage ha# no other right than to %eman% the e/ec'tion an% the recor%ing of the %oc'ment in which the mortgage i# formali0e%. 'ote( -
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)nrecorded $ortgages are binding between parties. * +nce a mortgage has been signed in due form, the mortgagee is entitled to its registration as a matter of right. y eecuting the mortgage, the mortgagor is understood to have given his consent to its registration, and he cannot be permitted to revoke it unilaterally. In case of legal mortgages, the persons entitled have no other right than to demand the eecution and the recording of the document in which the mortgage is formalied. A mortgage when registered becomes binding against third persons.
Article 212. The mortgage %irectly an% imme%iately #'bject# the property 'pon which it i# impo#e%& whoe"er the po##e##or may be to the f'lllment of the obligation for who#e #ec'rity it wa# con#tit'te%. E3ect of Mortgage 1. )reate# real right A mortgage is a real right and as such it is good and binding against the whole world, and may be enforced by real action against all persons who may have eisting rights or interests in the same property, not registered prior to the mortgage.
/ Article *012, 3hilippine !ivil !ode -- The following re%uisites are essential to the contracts of pledge and mortgage(4/5 That they be constituted to secure the fulllment of a principal obligation6 4*5 That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged6 475 That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authoried for the purpose. Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property.
* Tan v. aldehuea, #-71892, August 2, /:82 *
2. )reate# merely an enc'mbrance The mortgage and the property a;ected are inseparable, so much so that that whoever may subse%uently ac%uire title to the mortgaged property is bound by the terms of the mortgage. 'ote( -
If a mortgagor sells the property, the buyer must respect the mortgage 4if registered or if he knows of its eistence5. If the creditor forecloses the mortgage, the buyer will not be responsible for the deciency. &cept in the case of a novation, where the parties consent to the buyer
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Article 212. The mortgage e/ten%# to the nat'ral acce##ion#& to the impro"ement#& growing fr'it#& an% the rent# or income not yet recei"e% when the obligation become# %'e& an% to the amo'nt of the in%emnity grante% or owing to the proprietor from the in#'rer# of the property mortgage%& or in "irt'e of e/propriation for p'blic '#e& with the %eclaration#& amplication# an% limitation# e#tabli#he% by law& whether the e#tate remain# in the po##e##ion of the mortgagor& or it pa##e# into the han%# of a thir% per#on. E/tent of #'bject matter of mortgage •
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The basic object of a real mortgage is land, and as a rule the word =land> includes every estate and interest in land. It therefore follows that, unless otherwise reserved, all buildings and improvements eisting thereon are deemed included. ?uture improvements $achineries and tures ?ruits and rents of mortgaged property !ontinuing credit secured by mortgage
=5ragnet )la'#e6 " is also known as =blanket> mortgage clause. It is a stipulation in the mortgage contract to secure future and other indebtedness. It is one which specically phrased to subsume all debts of past or future origin. It operates as a convenience and accommodation to the borrowers as it makes available additional funds without their having to eecute additional security documents, thereby saving time, travel loan closing costs, and etc. 'otes(
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$ortgage on land includes present and future houses, unless the houses are epressly eempted.7 @rowing fruits eclude those already harvested before the obligation. 9 If e%uipment on a mortgaged land is temporarily removed, the mortgage continues on said e%uipment. 2
Article 212. The mortgage cre%it may be alienate% or a##igne% to a thir% per#on& in whole or in part& with the formalitie# re,'ire% by law. Alienation of Mortgage )re%it The mortgage credit 4the right of the mortgagee5 may be alienated or assigned, in whole or in part. This is because the mortgagee is the owner of said right.
E3ect if Alienation of the Mortgage )re%it i# (ot Regi#tere% &ven if the alienation is not registered it would still be valid as between the parties. egistration is needed only to a;ect third parties.
7antiago "#. 8ioneer 7a"ing# an% Loan 9an: GR (o. +-2 ;an'ary 1+& 1< The mortgage credit 4the right of the mortgagee5 is a real right and directly and immediately subjects the mortgaged property to the fulllment of the principal obligation. Buch real right may be alienated or assigned to a third person, in whole or in part, by the mortgagee who is the owner of the said right and the assignee may foreclose the mortgage in case of nonpayment of the mortgage indebtedness. Baid assignment is valid and assignee may foreclose the mortgage in case of nonpayment of the mortgage indebtedness. =The plainti;-appellant, therefore cannot rightfully claim that ?I'ABIA, as the assignee of the mortgagee, cannot etra judicially foreclose the mortgaged property. A mortgage directly and immediately subjects the property upon which it is imposed to the fulllment of the obligation for whose security it was constituted. The assignment of receivables made by the original mortgagee, ?I'ABIA, to the Cefendant ank was valid, since a mortgage credit may be alienated or 7 ischo; v. 3omar D !ia @eneral de Tabacos, /* 3hil. E:0 9 Afable v. elando, 22 3hil. E9 2 Berra v. 'ational ank, 92 3hil. :08 9
assigned to a third person, in whole or in part, with formalities re%uired by law.>
Article 212<. The cre%itor may claim from a thir% per#on in po##e##ion of the mortgage% property& the payment of the part of the cre%it #ec're% by the property which #ai% thir% per#on po##e##e#& in the term# an% with the formalitie# which the law e#tabli#he#. Right of )re%itor to go again#t po##e##or of property mortgage% The mortgaged creditor can demand from any possessor of the mortgaged property the credit insofar as it can be obtained from the property itself, provided also that a prior demand was made on the debtor.
Article 21=-. A #tip'lation forbi%%ing the owner from alienating the immo"able mortgage% #hall be "oi%. 'ote( A stipulation wherein the mortgagor is re%uired to get the consent of the mortgagee before subse%uently mortgaging the property is valid and binding when the land is registered under the Torrens system. E
Article 21=1. The form& e/tent an% con#e,'ence# of a mortgage& both a# to it# con#tit'tion& mo%ication an% e/ting'i#hment& an% a# to other matter# not incl'%e% in thi# )hapter& #hall be go"erne% by the pro"i#ion# of the Mortgage Law an% of the Lan% Regi#tration Law. E,'ity of Re%emption This is the right of the mortgagor to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property.
Right of Re%emption This is the right of the mortgagor to purchase the property within a certain period after it was sold for the purpose of paying the mortgage debt.
E 3hilippine Industrial !o. v. &l Fogar ?ilipino, 97 3hil. 77E 2
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