What is a Contract of Real Mortgage? Kinds of Mortgages
- An accessory contract whereby a. Voluntary the debtor guarantee the b. Legal performance of the principal c. Equitable obligation by subjecting real property or real rights as Effects of Mortgage security in case of non- a. Creates real right b. Creates merely an performance if such obligation encumbrance. It does not within the period given. extinguish the title of the debtor who remains the owner What are its Elements? 1. Constituted to secure the What is the Mirror Doctrine? performance of the principal - All persons dealing with the obligation 2. Mortgagor must be the absolute property covered by the Torrens owner of the property Certificate of Title as buyers or mortgaged mortgagees are not required to 3. Mortgagor should have free go beyond what appears in the disposal of the property and in face of the title. the absence thereof, he should be legally authorized for the Diligence Required for Banks purpose - Banks must investigate further, 4. When principal obligation impressed with public interest becomes due, the property and are expected to exercise mortgaged may be alienated more care and prudence. for the payment of such obligation Extent of Mortgage 5. Subject matter must be a. Natural accessions immovable property or b. Growing fruits alienable real rights upon c. Rents or income not yet immovables received when the obligation becomes due Special Requisites: d. Amount of indemnity granted or 1. Immovable owing to the proprietor from: 2. Public instrument i. Insurer of the 3. Registered (not for validity, only property managed to bind 3rd persons) ii. Expropriation for public use Characteristics: Exceptions: 1. Real a. Stipulation 2. Accessory b. Evidence overthrowing the 3. Subsidiary presumption that the mortgagor 4. Unilateral owns the mortgaged property. 5. Indivisible and Inseparable Registration unregistered right. Mortgagor Once a mortgage has been signed in has no right to mortgage due form, the mortgagee is entitled to property not of his own. its registration as a matter of right. What is the effect of registration when Subsequent Registration of an Adverse a third person has a better right? Claim - A registered mortgage right - A prior lien creates a over property previously sold is preference. inferior to the buyers