Question & AnswerQ&A (Act No. 3135)
The primary purpose of Act No. 3135 is to regulate the sale of property under special powers inserted in or annexed to real-estate mortgages in the Philippines.
The sale must be made within the province where the property is situated. If the place within the province is stipulated, the sale shall be held there or in the municipal building of the municipality where the property or part thereof is located.
Notice of the sale must be posted for at least twenty days in at least three public places in the municipality or city where the property is located. If the property is worth more than four hundred pesos, the notice must also be published once a week for at least three consecutive weeks in a newspaper of general circulation in that municipality or city.
The sale must be conducted by public auction between 9:00 AM and 4:00 PM under the direction of the sheriff of the province, the justice or auxiliary justice of the peace of the municipality, or a notary public of the municipality.
The sale is directed by the sheriff, justice or auxiliary justice of the peace, or a notary public of the municipality, who is entitled to collect a fee of five pesos for each day of actual work performed, plus expenses.
Yes, the creditor, trustee, or other person authorized to act for the creditor may participate in the bidding and purchase under the same conditions as any other bidder, unless expressly prohibited by the mortgage or trust deed.
The debtor, successors in interest, judicial creditor, judgment creditor, or any person having a lien subsequent to the mortgage may redeem the property at any time within one year from the date of the sale.
Redemption is governed by Sections 464 to 466 inclusive of the Code of Civil Procedure, insofar as they are not inconsistent with Act No. 3135.
Yes, the Act governs the manner of sale and redemption regardless of whether such provisions are made in the special power or mortgage.
The Act took effect upon its approval on March 6, 1924.