Case Summary (G.R. No. 188933)
Key Dates
• November 27, 1922 – Execution and delivery of the chattel mortgage document
• March 16, 1923 – Decision date
Applicable Law
• Chattel Mortgage Law (Act No. 1508), as amended by Act No. 2496, now embodied in section 198 of the Administrative Code
• Articles 334 and 335 of the Civil Code (classification of real and personal property)
• Principles governing mandamus
Facts
On November 27, 1922, Gervasia de la Rosa, as lessee of a parcel of land in Manila and owner of a substantial house thereon, executed a document styled as a chattel mortgage. The instrument purported to convey by way of mortgage her leasehold interest in the lot and the building erected thereon. After acknowledgment and delivery, the petitioner tendered the document for registration as a chattel mortgage. Register Jaramillo refused to record it, reasoning that the interests mortgaged were not “personal property” under the Chattel Mortgage Law.
Issue
Whether the Register of Deeds has authority to determine the nature (real or personal) of property described in an instrument presented for registration as a chattel mortgage and to refuse registration on that basis.
Court’s Analysis
Ministerial Duty of the Register
The role of the register in recording chattel mortgages is purely ministerial. No statute grants him judicial or quasi-judicial power to qualify instruments or to pass upon the character of the property they cover. His sole duty is to accept a properly executed instrument, collect the fee, and enter it in the chattel mortgage register.Legal Effect of Registration
Registration of a chattel mortgage operates only as constructive notice of the underlying contract. It neither alters the rights of the parties nor adds to the title; it merely gives notice to third parties.Classification under Civil Code Articles 334 and 335
While those articles offer general rules for distinguishing real from personal property, they do not provide an absolute test for every transaction. Parties may, by agreement, treat property ordinarily deemed real as personal for purposes of a mortgage. Moreover, classification may vary depending on context, taxation, or contractual arrangement.Precedent and Administrative Ruling
A 1914 ruling by Judge Ostrand, later affirmed by the Attorney-General’s 1909 opinion, held that a register cannot refuse registration on the ground that the property is real rather than personal; any cha
Case Syllabus (G.R. No. 188933)
Background and Procedural History
- The Standard Oil Company of New York filed an original petition for a peremptory mandamus.
- The petition sought to compel Joaquin Jaramillo, Register of Deeds of the City of Manila, to record a document purporting to be a chattel mortgage.
- The respondent interposed a demurrer, refusing registration on the ground that the mortgaged interests were not “personal property” under the Chattel Mortgage Law.
Facts of the Case
- On November 27, 1922, Gervasia de la Rosa, Vda. de Vera, was lessee of a parcel of land in the City of Manila and owner of the house built thereon.
- She executed a document styled as a chattel mortgage in favor of the Standard Oil Company of New York.
- The document purported to convey by way of mortgage both her leasehold interest in the lot and the building of strong materials thereon.
- After acknowledgment and delivery, the petitioner presented the instrument for recording in the chattel mortgage register.
Contents of the Mortgage Document
- The mortgage instrument recites that the mortgagor “conveys and transfers…by way of mortgage” the following:
- All right, title, and interest of the mortgagor in and to the contract of lease and the leased premises.
- The building, property of the mortgagor, situated on the aforesaid leased premises.
Attempted Registration and Grounds for Refusal
- Upon examination, Register Jaramillo concluded the instrument was not a chattel mortgage because the interests therein mortgaged did not