Case Digest (G.R. No. 162518) Core Legal Reasoning Model
Facts:
The case involves El Hogar Filipino as the petitioner and Geronimo Paredes, the Register of Deeds of the Province of Occidental Negros, as the respondent. On September 26, 1919, Dona Aniceta Ardosa executed a mortgage on a rural estate in Manapla, Occidental Negros, called Hacienda de Bayabas y Agtongtong, to secure a loan from El Hogar Filipino. This mortgage contained material clauses, notably the tenth and fifteenth clauses. The tenth clause granted the association's manager the right to conduct an extrajudicial foreclosure in the event of non-payment. After Dona Ardosa defaulted on her payments, the association exercised this power and conducted a non-judicial sale, becoming the highest bidder. Thirty days later, upon the absence of redemption, a deed of transfer was executed in favor of the association. The property was not registered under Act No. 496 but was inscribed in Iloilo's property register.
When the association submitted the deed for registration to the R
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Case Digest (G.R. No. 162518) Expanded Legal Reasoning Model
Facts:
Mortgage Agreement: On September 26, 1919, Doña Aniceta Ardosa executed a mortgage on her rural estate, the Hacienda de Bayabas y Agtongtong, located in Occidental Negros, in favor of El Hogar Filipino, a mutual building and loan association in Manila. The mortgage secured a loan and included two key clauses:- Clause 10: Provided the creditor, El Hogar Filipino, the power to foreclose and sell the property extrajudicially upon default, after publishing notice once a week for three weeks in a newspaper. The debtor had a 30-day redemption period.
- Clause 15: Allowed El Hogar Filipino to bid in the auction and, if successful, execute a deed of sale in its favor.
Default and Foreclosure: Ardosa defaulted on the loan, and El Hogar Filipino conducted an extrajudicial foreclosure, purchasing the property as the highest bidder. After the 30-day redemption period passed without payment, El Hogar executed a deed of transfer to itself.
Registration Issue: The property was not registered under the Torrens system but was inscribed in the property register of Iloilo. El Hogar presented the deed of transfer to the Register of Deeds of Occidental Negros for registration, but the register refused, arguing that Clause 10 was void.
Legal Action: El Hogar filed a petition for mandamus to compel the registration of the deed. The respondent, Geronimo Paredes, admitted the facts but contested the validity of Clause 10.
Issues:
The primary legal issue is whether a mortgage agreement can validly include a clause granting the mortgagee the power to foreclose and sell the property extrajudicially upon the debtor’s default.Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)