Law Summary
Geographical Limitations on Sale Venue
- Sale must be held within the province where the mortgaged property is located.
- If the place of sale within the province is stipulated in the mortgage, sale must be conducted there or at the municipal building of the municipality where the property (or part of it) lies.
Notice Requirements Prior to Sale
- Notices of sale must be posted in at least three public places in the municipality or city where the property is situated.
- Posting period must be no less than twenty (20) days before the sale.
- If the property's value exceeds four hundred pesos, a public notice must also be published once a week for at least three consecutive weeks in a newspaper of general circulation in the property’s municipality or city.
Conduct and Supervision of the Sale
- The sale is conducted by public auction.
- Auction must be held between 9:00 AM and 4:00 PM.
- The sale must be supervised by one of the following officers of the municipality where the sale takes place:
- Sheriff of the province.
- Justice of the Peace or Auxiliary Justice of the Peace.
- Notary Public.
- The supervising officer is entitled to a fee of five pesos for each day of actual work plus expenses.
Participation in Bidding
- Creditor, trustee, or person authorized to act for the creditor may bid and purchase under the same conditions as any bidder.
- This right may be restricted only if expressly stipulated otherwise in the mortgage or trust deed under which the sale is made.
Right of Redemption After Sale
- Debtor, successors in interest, judicial or judgment creditors of the debtor, or any party with a lien subsequent to the mortgage may redeem the property.
- Redemption period is within one (1) year from the date of sale.
- Redemption governed by Sections 464 to 466 of the Code of Civil Procedure, except when inconsistent with this Act.
Effectivity
- The Act takes effect upon approval.