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party have remained in possession of the subject property and exercised acts of
ownership over the lot even after the purported absolute sale and it could be
gleaned from the intention of the parties that the transaction is intended secure the
payment of a debt. SPS. FELIPE SOLITARIOS and JULIA TORDA vs. SPS.
GASTON JAQUE and LILIA JAQUE, G.R. No. 199852, November 12, 2014, J
In an extra-judicial foreclosure of registered land acquired under a free patent, the
mortgagor may redeem the property within two (2) years from the date of
foreclosure if the land is mortgaged to a rural bank under Republic Act No. (RA) 720,
as amended, otherwise known as the Rural Banks Act, or within one (1) year from
the registration of the certificate of sale if the land is mortgaged to parties other
than rural banks pursuant to Act No. 3135. If the mortgagor fails to exercise such
right, he or his heirs may still repurchase the property within five (5) years from the
expiration of the redemption period pursuant to Section 119 of the Public Land Act.
The RTC and CA both correctly ruled that Sps. Guevarras right to repurchase the
subject property had not yet expired when Cadastral Case No. 122 was filed on
September 8, 2005. SPOUSES RODOLFO and MARCELINA GUEVARRA vs. THE
COMMONER LENDING CORPORATION, INC., G.R. No. 204672
DRAGNET CLAUSE
As a general rule, a mortgage liability is usually limited to the amount mentioned in
the contract. However, the amounts named as consideration in a contract of
mortgage do not limit the amount for which the mortgage may stand as security if,
from the four corners of the instrument, the intent to secure future and other
indebtedness can be gathered. This stipulation is valid and binding between the
parties and is known as the "blanket mortgage clause" also known as the "dragnet
clause. - Ramona Ramos and the Estate of Luis T. Ramos vs. Philippine
National Bank, Opal Portfolio Investments (SPV-AMC), Inc. and Golden
Dragon Star Equities, Inc., G.R. No. 178218,
Are there other instances when the right of legal redemption is also granted?
A:
1.
2.
3.
4.
5.
Redemption
Redemption
Redemption
Redemption
Redemption
of homesteads
in tax sales
by judgment debtor
in extrajudicial foreclosure
in judicial foreclosure of mortgage
2. The instrument or document evidencing the contract does not express the true
agreement between the parties 3. The failure of the instrument to express the agreement
must be due to mistake, fraud, inequitable conduct or accident
Requisites of Mistake
a. That the mistake is one of fact
Whenever an instrument is drawn with the intention of carrying an agreement previously
made, but which, due to mistake or inadvertence of the draftsman or clerk, does not carry
out the intention of the parties, but violates it, there is a ground to correct the mistake by
reforming the instrument.
b. That it was common to both parties
A written instrument may be reformed where there is a mistake on 1 side and fraud or
inequitable conduct on the other, as where 1 party to an instrument has made a mistake
and the other knows it and conceals the truth from him.
The mistake of 1 party must refer to the contents of the instrument and not the subject
mater or the principal conditions of the agreement. In the latter case, an action for
annulment is the proper remedy.
If 2 parties agree upon the mortgage or pledge of real property or personal property, but
the instrument states that the property is sold absolutely or with a right of repurchase,
reformation is proper.
c. The proof of mutual mistake must be clear and convincing