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REAL ESTATE MORTGAGE - a contract whereby the debtor secures to the creditor the
fulfilment of the principal obligation, specially subjecting to such security immovable
property or real rights over immovable property in case the principal obligation is not
fulfilled at the time stipulated.
REGISTRATION: A mortgage, whether registered or not is binding between the
parties, registration being necessary only to make the same valid against third
persons. Registration only operates as a notice of the mortgage to others, but
neither adds to its validity nor convert an invalid mortgage into a valid one between
the parties.
III. PLEDGE
DELIVERY: The Civil Code provides that in addition to the requisites prescribed in
Art. 2085, it is necessary in order to constitute a contract of pledge that the thing
pledged be placed in the possession of the creditor, or of a third person by common
agreement. The law requires actual delivery and a mere symbolic delivery is not
sufficient.
VI. DEPOSIT
Requisites:
1) The guarantor must set up the right of excussion against the creditor upon the
latter’s demand for payment from him; and
2) He must point out to the creditor the available property of the debtor (not exempted
from execution) found within the Philippine territory.
ANTICHRESIS – a contract whereby the creditor acquires the right to receive the fruits
of an immovable of the debtor, with the obligation to apply them to the payment of
interest, if owing, and thereafter to the principal of his credit.
In a contract of antichresis, property is delivered to creditor.
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The creditor acquires only the right to receive the fruits of the property; but does not
produce a real right unless registered in the Registry of Property.
Antichresis covers only the fruits of real property, but not the immovable itself.
Delivery of the immovable is necessary for the creditor to receive the fruits and not
that the contract shall be binding.
The fruits of the immovable which is the object of the antichresis must be appraised
at their actual market value at the time of the application. The property delivered
stands as a security for the payment of the obligation of the debtor in antichresis.
Hence, the debtor cannot demand its return until the debt is totally paid.
The antichretic creditor does not acquire ownership of the real estate since what was
transferred is not the ownership but merely the right to receive fruits. Therefore, the
remedies available to him in case of non-payment are:
1) File an action for specific performance; or
2) File a petition for the public sale of the property.
RECTO LAW refers to sale of movables payable in instalments and limiting the right
of seller, in case of default by the buyer, to one of three remedies
1) After having paid installments for at least two years, the buyer is entitled to a
mandatory grace period of one month for every year of instalment payments
made, to pay the unpaid instalments without interest.
If the contract is cancelled, the seller shall refund to the buyer the cash surrender
value equivalent to fifty percent (50%) of the total payments made, and after five
(5) years of instalments, an additional five percent (5%) every year but not to
exceed ninety percent (90%) of the total payments made.
2) In case the installments paid were less than two (2) years, the seller shall give
the buyer a grace period of not less than sixty (60) days. If the buyer fails to pay
the instalments due at the expiration of the grace period, the seller may cancel
the contract after thirty (30) days from receipt by the buyer of the notice of
cancellation or demand for rescission by notarial act.
TACITA RECONDUCCION
If at the end of the contract the lessee should continue enjoying the thing leased for
fifteen (15) days with the acquiescence of the lessor, and unless a notice to the
contrary by either party has been previously given, it is understood that there is an
implied new lease, not for the period of the original contract, but for the time
established in Articles 1682 and 1687. The other terms of the contract shall be
revived.
Tacita Reconduccion refers to the right of the lessee to continue enjoying the
material or de facto possession of the thing leased within a period of time fixed by
law.
It arises if at the end of the contract, the lessee should continue enjoying the thing
leased for at least fifteen (15) days with the acquiescence of the lessor, and unless a
notice to the contrary by either party has previously been given.
Effect of the implied new lease: It is understood that there is an implied new lease
if: (1) the period of the new lease is not that stated in the original contract, but the
time established in Articles 1682 and 1687; and (2) the other terms of the original
contract shall be revived.
KINDS OF REDEMPTION
1. RESCISSIBLE CONTRACT
Those which are entered into by guardians whenever the wards whom they represent
suffer lesion by more than one-fourth (1/4) of the value of the things which are the
object thereof
2. UNENFORCEABLE CONTRACT
Those entered into the name of another person by one who has been given no authority
or legal representation, or who has acted beyond his powers.