Professional Documents
Culture Documents
Prudential Bank v. Panis - Case Digest
Prudential Bank v. Panis - Case Digest
FACTS:
Spouses Magcale secured a loan from Prudential bank by executing a real estate mortgage
over a residential building
The duly registered mortgage included the right to occupy the lot and the information about
the sales patent applied for by the spouses for the lot to which the building stood
The spouses then failed to pay for the loan and the real estate mortgage was extrajudicially
foreclosed and sold in public auction despite opposition from the spouses
The respondent court held that the real estate mortgage was null and void
LAW/S:
ISSUE/S:
Whether or not the deeds of real estate mortgage are valid
RULING:
YES, THEY ARE VALID.
Under enumeration of Art. 415, inclusion of "building" separate and distinct from the
land, in said provision of law can only mean that a building is by itself an immovable
property (Lopez vs. Orosa)
NOTE:
While mortgage of land necessarily includes, in the absence of stipulation of the improvements
thereon, buildings, still a building by itself may be mortgaged apart from the land on which it has
been built
Possessory rights over buildings before title is vested on grantee may be validly transferred via
deed of mortgage