Case Summary (G.R. No. 173120)
Background Facts
The dispute arose from loan transactions dating back to 1920 between Sabas, the creditor, and Garma and his deceased wife, Tarcila Vilaray, the debtors. Following a liquidation of accounts on November 10, 1930, the Garma spouses were found to owe Sabas ₱2,187.53. To secure this debt, they executed a mortgage on a parcel of land acquired under a homestead patent issued on September 14, 1926. However, the mortgage was only registered on October 5, 1932.
Mortgage Payment and Loan Defaults
The defendants failed to repay the debt in full despite having made partial payments in the form of tobacco worth ₱88.50. The evidence presented did not support Garma's claim that he was coerced into signing the mortgage agreement, nor did it indicate that the children of Tarcila Vilaray inherited any responsibility for the debt.
Legal Framework and Insurance of Validity
In determining the legality of the mortgage, the court referenced relevant provisions from Act No. 2874, particularly Sections 116 and 122, which prohibit the encumbrance or alienation of homestead property within five years from the issuance of the patent. These provisions specify that such contracts executed in violation of the stated timeframe are null and void ab initio, meaning they are considered invalid from the outset.
Decision of the Court
The court concluded that the mortgage agreement constituted by Garma and Vilaray was invalid as it was executed within the five-year period following the issuance of the homestead patent. The registration of the mortgage after this period did not confer legality since the law prohibits such encumbrances during the specified duration. Thus, the mortgage could not enforce any obligation against the land in question. Consequently, the court affirmed the lower court's decision on different grounds, ruling
...continue readingCase Syllabus (G.R. No. 173120)
Case Overview
- The case involves an appeal by Francisco Sabas from a judgment rendered by the Court of First Instance of Cagayan.
- The judgment declared the mortgage foreclosure claimed by Sabas as untenable but ordered Francisco Garma to pay Sabas an amount of P2,099.03, along with the costs of the suit.
- Other defendants, identified by various names all surnamed Garma, along with Pascual de Guzman, were absolved from the complaint.
Background Facts
- The plaintiff, Francisco Sabas, and the defendant, Francisco Garma, along with his late wife Tarcila Vilaray, engaged in multiple loan transactions since 1920.
- A liquidation of accounts occurred on November 10, 1930, revealing that Garma and Vilaray owed Sabas P2,187.53.
- To secure the payment, Garma and Vilaray executed a mortgage on a homestead property on the same date, promising to settle the debt by August 30, 1933.
- The land was acquired under the homestead provisions, with the patent issued on September 14, 1926, and the original certificate of title issued on October 18, 1926.
- The mortgage was registered on O