QuestionsQuestions (Act No. 3135)
It applies when a sale is made under a special power inserted in or annexed to a real-estate mortgage as security for payment of money or performance of another obligation.
No. Section 2 provides that the sale cannot be legally made outside the province where the property sold is situated.
It must be made in the place stipulated in the mortgage; alternatively, it may be made in the municipal building of the municipality where the property (or part) is situated.
Notice must be given by posting notices of the sale for not less than twenty (20) days in at least three public places of the municipality or city where the property is located.
If the property is worth more than four hundred pesos, notice must also be published once a week for at least three (3) consecutive weeks in a newspaper of general circulation in the municipality or city.
The sale must be made at public auction between 9:00 in the morning and 4:00 in the afternoon.
It must be under the direction of the sheriff of the province, or the justice/auxiliary justice of the peace of the municipality, or a notary public of the municipality where the sale is to be made.
Yes. Under Section 5, the creditor, trustee, or authorized person may participate and purchase under the same conditions as any other bidder, unless the mortgage expressly provides otherwise.
The debtor, successors in interest, any judicial creditor or judgment creditor of the debtor, or any person with a lien subsequent to the mortgage may redeem within one (1) year from and after the date of sale.
It runs from and after the date of the sale.
Redemption is governed by Sections 464 to 466, inclusive, of the Code of Civil Procedure, insofar as these are not inconsistent with Act No. 3135.
Yes. Even if no provision for redemption is made in the power, Section 1 and Section 6 establish the rules governing manner of sale and redemption.
Act No. 3135 governs the manner in which sale and redemption shall be effected under such special power, regardless of whether the power itself provides for them (Section 1).
At least three (3) public places of the municipality or city where the property is situated.
A fee of five pesos for each day of actual work performed, in addition to his expenses.
It standardizes safeguards and procedures (venue, notice, auction time and direction, and redemption) to regulate extrajudicial sales under special mortgage powers.