Question & AnswerQ&A (Acts No. 4118)
The primary purpose is to amend the provisions regulating the sale of property under special powers inserted in or annexed to real-estate mortgages, particularly concerning redemption rights and possession during the redemption period.
The debtor, his successors in interest, any judicial or judgment creditor of the debtor, or any person having a lien on the property subsequent to the mortgage or deed of trust under which the property was sold may redeem the property.
The redemption period is one year from and after the date of the extrajudicial sale.
Redemption is governed by the provisions of sections 466 inclusive of the Code of Civil Procedure, as long as they are not inconsistent with the provisions of this Act.
The purchaser may petition the Court of First Instance to be given possession of the property during the redemption period upon furnishing a bond equivalent to the property's use for twelve months.
The purchaser must file the petition under oath and prove that the sale was made without violating the mortgage or the provisions of this Act. The petition should be filed as an ex parte motion in the appropriate court proceedings.
The court shall order the issuance of a writ of possession addressed to the sheriff, who must execute the order immediately.
The debtor may petition to have the sale set aside and the writ of possession cancelled within thirty days after the purchaser is given possession, specifying damages due to non-compliance or violation of the mortgage or Act.
The court shall take cognizance of the petition following the summary procedure prescribed in Section 112 of Act No. 496.
The court shall dispose in favor of the debtor of all or part of the bond furnished by the purchaser.
Yes, either party may appeal in accordance with Section 14 of Act No. 496; however, the writ of possession shall remain in effect during the appeal.
The redeemer can deduct from the redemption price any rentals collected by the purchaser. If the purchaser used the property as dwelling (town property) or gainfully (rural property), the redeemer may deduct interest at one percent per month as provided in Section 465 of the Code of Civil Procedure.
Section 3 changed the numbering of the original Section 7 of Act No. 3135 to Section 10.
The Act took effect upon its approval on December 7, 1933.