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Art. 415. The following are immovable property:

(1) Land, buildings, roads and constructions of all kinds adhered to the soil;
(2) Trees, plants, and growing fruits, while they are attached to the land or form an integral part of
an immovable;
(3) Everything attached to an immovable in a fixed manner, in such a way that it cannot be separated
therefrom without breaking the material or deterioration of the object;
(4) Statues, reliefs, paintings or other objects for use or ornamentation, placed in buildings or on
lands by the owner of the immovable in such a manner that it reveals the intention to attach them
permanently to the tenements;
(5) Machinery, receptacles, instruments or implements intended by the owner of the tenement for an
industry or works which may be carried on in a building or on a piece of land, and which tend directly
to meet the needs of the said industry or works;
(6) Animal houses, pigeon-houses, beehives, fish ponds or breeding places of similar nature, in case
their owner has placed them or preserves them with the intention to have them permanently
attached to the land, and forming a permanent part of it; the animals in these places are included;
(7) Fertilizer actually used on a piece of land;
(8) Mines, quarries, and slag dumps, while the matter thereof forms part of the bed, and waters
either running or stagnant;
(9) Docks and structures which, though floating, are intended by their nature and object to remain at
a fixed place on a river, lake, or coast;
(10) Contracts for public works, and servitudes and other real rights over immovable property.
Foreclosure of Real Estate Mortgage

Section 1. Complaint in action for foreclosure. In an action for the foreclosure of a mortgage or other encumbrance upon
real estate, the complaint shall set forth the date and due execution of the mortgage; its assignments, if any; the names
and residences of the mortgagor and the mortgagee; a description of the mortgaged property; a statement of the date of
the note or other documentary evidence of the obligation secured by the mortgage, the amount claimed to be unpaid
thereon; and the names and residences of all persons having or claiming an interest in the property subordinate in right to
that of the holder of the mortgage, all of whom shall be made defendants in the action. (1a)
Section 2. Judgment on foreclosure for payment or sale. If upon the trial in such action the court shall find the facts set
forth in the complaint to be true, it shall ascertain the amount due to the plaintiff upon the mortgage debt or obligation,
including interest and other charges as approved by the court, and costs, and shall render judgment for the sum so found
due and order that the same be paid to the court or to the judgment obligee within a period of not less than ninety (90)
days nor more than one hundred twenty (120) days from the entry of judgment, and that in default of such payment the
property shall be sold at public auction to satisfy the judgment. (2a)
Section 3. Sale of mortgaged property; effect. When the defendant, after being directed to do so as provided in the next
preceding section, fails to pay the amount of the judgment within the period specified therein, the court, upon motion,
shall order the property to be sold in the manner and under the provisions of Rule 39 and other regulations governing
sales of real estate under execution. Such sale shall not affect the rights of persons holding prior encumbrances upon the
property or a part thereof, and when confirmed by an order of the court, also upon motion, it shall operate to divest the
rights in the property of all the parties to the action and to vest their rights in the purchaser, subject to such rights of
redemption as may be allowed by law.
Upon the finality of the order of confirmation or upon the expiration of the period of redemption when allowed by law, the
purchaser at the auction sale or last redemptioner, if any, shall be entitled to the possession of the property unless a third
party is actually holding the same adversely to the judgment obligor. The said purchaser or last redemptioner may secure
a writ of possession, upon motion, from the court which ordered the foreclosure. (3a)

Section 4. Disposition of proceeds of sale. The amount realized from the foreclosure sale of the mortgaged property
shall, after deducting the costs of the sale, be paid to the person foreclosing the mortgage, and when there shall be any
balance or residue, after paying off the mortgage debt due, the same shall be paid to junior encumbrancers in the order of
their priority, to be ascertained by the court, or if there be no such encumbrancers or there be a balance or residue after
payment to them, then to the mortgagor or his duly authorized agent, or to the person entitled to it. (4a)
Section 5. How sale to proceed in case the debt is not all due. If the debt for which the mortgage or encumbrance was
held is not all due as provided in the judgment as soon as a sufficient portion of the property has been sold to pay the total
amount and the costs due, the sale shall terminate; and afterwards as often as more becomes due for principal or interest
and other valid charges, the court may, on motion, order more to be sold. But if the property cannot be sold in portions
without prejudice to the parties, the whole shall be ordered to be sold in the first instance, and the entire debt and costs
shall be paid, if the proceeds of the sale be sufficient therefor, there being a rebate of interest where such rebate is proper.
Section 6. Deficiency judgment. If upon the sale of any real property as provided in the next preceding section there be
a balance due to the plaintiff after applying the proceeds of the sale, the court, upon motion, shall render judgment
against the defendant for any such balance for which, by the record of the case, he may be personally liable to the
plaintiff, upon which execution may issue immediately if the balance is all due at the time of the rendition of the judgment;
otherwise; the plaintiff shall be entitled to execution at such time as the balance remaining becomes due under the terms
of the original contract, which time shall be stated in the judgment. (6a)
Section 7. Registration. A certified copy of the final order of the court confirming the sale shall be registered in the
registry of deeds. If no right of redemption exists, the certificate of title in the name of the mortgagor shall be cancelled,
and a new one issued in the name of the purchaser.
Where a right of redemption exists, the certificate of title in the name of the mortgagor shall not be cancelled, but the
certificate of sale and the order confirming the sale shall be registered and a brief memorandum thereof made by the
registrar of deeds upon the certificate of title. In the event the property is redeemed, the deed of redemption shall be
registered with the registry of deeds, and a brief memorandum thereof shall be made by the registrar of deeds on said
certificate of title.
If the property is not redeemed, the final deed of sale executed by the sheriff in favor of the purchaser at the foreclosure
sale shall be registered with the registry of deeds; whereupon the certificate of title in the name of the mortgagor shall be
cancelled and a new one issued in the name of the purchaser. (n)
Section 8. Applicability of other provisions. The provisions of sections 31, 32 and 34 of Rule 39 shall be applicable to the
judicial foreclosure of real estate mortgages under this Rule insofar as the former are not inconsistent with or may serve to
supplement the provisions of the latter. (8a)


December 3, 1986
Repealed Sec. 11 and Amended Sec. 7,8,10,12 & 13 by RA 8523

Sec. 16. Right of Redemption. Any mortgagor of the Bank whose real property has been extrajudicially sold
at public auction shall, within one (1) year counted from the date of registration of the certificate of sale,
have the right to redeem the real property by paying to the Bank all of the latter's claims against him, as
determined by the Bank.
The Bank may take possession of the foreclosed property during the redemption period. When the Bank
takes possession during such period, it shall be entitled to the fruits of the property with no obligation to
account for them, the same being considered compensation for the interest that would otherwise accrue on
the account. Neither shall the Bank be obliged to post a bond for the purpose of such possession.
ACT NO. 3135

Section 1. When a sale is made under a special power inserted in or attached to any real-estate mortgage hereafter made
as security for the payment of money or the fulfillment of any other obligation, the provisions of the following election shall
govern as to the manner in which the sale and redemption shall be effected, whether or not provision for the same is
made in the power.
Sec. 2. Said sale cannot be made legally outside of the province in which the property sold is situated; and in case the

place within said province in which the sale is to be made is subject to stipulation, such sale shall be made in said place or
in the municipal building of the municipality in which the property or part thereof is situated.
Sec. 3. Notice shall be given by posting notices of the sale for not less than twenty days in at least three public places of
the municipality or city where the property is situated, and if such property is worth more than four hundred pesos, such
notice shall also be published once a week for at least three consecutive weeks in a newspaper of general circulation in the
municipality or city.
Sec. 4. The sale shall be made at public auction, between the hours or nine in the morning and four in the afternoon; and
shall be under the direction of the sheriff of the province, the justice or auxiliary justice of the peace of the municipality in
which such sale has to be made, or a notary public of said municipality, who shall be entitled to collect a fee of five pesos
each day of actual work performed, in addition to his expenses.
Sec. 5. At any sale, the creditor, trustee, or other persons authorized to act for the creditor, may participate in the bidding
and purchase under the same conditions as any other bidder, unless the contrary has been expressly provided in the
mortgage or trust deed under which the sale is made.
Sec. 6. In all cases in which an extrajudicial sale is made under the special power hereinbefore referred to, the debtor, his
successors in interest or any judicial creditor or judgment creditor of said debtor, or any person having a lien on the
property subsequent to the mortgage or deed of trust under which the property is sold, may redeem the same at any time
within the term of one year from and after the date of the sale; and such redemption shall be governed by the provisions
of sections four hundred and sixty-four to four hundred and sixty-six, inclusive, of the Code of Civil Procedure, in so far as
these are not inconsistent with the provisions of this Act.
Sec. 7. In any sale made under the provisions of this Act, the purchaser may petition the Court of First Instance of the
province or place where the property or any part thereof is situated, to give him possession thereof during the redemption
period, furnishing bond in an amount equivalent to the use of the property for a period of twelve months, to indemnify the
debtor in case it be shown that the sale was made without violating the mortgage or without complying with the
requirements of this Act. Such petition shall be made under oath and filed in form of an ex parte motion in the registration
or cadastral proceedings if the property is registered, or in special proceedings in the case of property registered under the
Mortgage Law or under section one hundred and ninety-four of the Administrative Code, or of any other real property
encumbered with a mortgage duly registered in the office of any register of deeds in accordance with any existing law, and
in each case the clerk of the court shall, upon the filing of such petition, collect the fees specified in paragraph eleven of
section one hundred and fourteen of Act Numbered Four hundred and ninety-six, as amended by Act Numbered Twentyeight hundred and sixty-six, and the court shall, upon approval of the bond, order that a writ of possession issue,
addressed to the sheriff of the province in which the property is situated, who shall execute said order immediately.
Sec. 8. The debtor may, in the proceedings in which possession was requested, but not later than thirty days after the
purchaser was given possession, petition that the sale be set aside and the writ of possession cancelled, specifying the
damages suffered by him, because the mortgage was not violated or the sale was not made in accordance with the
provisions hereof, and the court shall take cognizance of this petition in accordance with the summary procedure provided
for in section one hundred and twelve of Act Numbered Four hundred and ninety-six; and if it finds the complaint of the
debtor justified, it shall dispose in his favor of all or part of the bond furnished by the person who obtained possession.
Either of the parties may appeal from the order of the judge in accordance with section fourteen of Act Numbered Four
hundred and ninety-six; but the order of possession shall continue in effect during the pendency of the appeal.
Sec. 9. When the property is redeemed after the purchaser has been given possession, the redeemer shall be entitled to
deduct from the price of redemption any rentals that said purchaser may have collected in case the property or any part
thereof was rented; if the purchaser occupied the property as his own dwelling, it being town property, or used it gainfully,
it being rural property, the redeemer may deduct from the price the interest of one per centum per month provided for in
section four hundred and sixty-five of the Code of Civil Procedure.
Sec. 10. This Act shall take effect on its approval.
Approved: March 6, 1924