REVIEWER BL 13

1. The distribution of proceeds of foreclosure sale includes the following, except:

a. Claim of the person foreclosing the mortgage
b. Balance, if any, shall be paid to the mortgagee
c. Claims of persons holding subsequent mortgages in their order
d. The costs of sale

2. Ondoy pledged his motorbike to Peping for P 5,000.00. When Ondoy failed to pay his
obligation, Peping sold the motor bike at public auction to the highest bidder for P
4,000.00. Therefore:
a. Peping cannot recover P 1,000.00 from Ondoy unless stipulated that he can
b. Peping cannot recover P 1,000.00 form Ondoy even if there is stipulation
c. Peping can recover P 1,000.00 from Ondoy if it is stipulated
d. Peping can recover P 1,000.00 from Ondoy even without stipulation

3. ______ is committed by a person who, pretending to be the owner of any real property,
shall convey, sell, encumber or mortgage the same or knowing that the real property is
encumbered shall dispose of the same as unencumbered. It is essential that fraud or
deceit be practiced upon the vendee at the time of sale.
a. Impersonation
b. Usurpation
c. Scammer
d. Estafa

4. Which of the following statement is not correct?

a. An agreement to constitute a commodatum is binding and is perfected from the
moment there is a meeting of minds.
b. Fixed, savings, and current deposits of money in banks and similar institutions shall be
governed by the provisions concerning mutuum.
c. In case of extraordinary expenses, the debtor in mutuum will shoulder 50% if he is in
actual use of the thing borrowed.
d. Precarium is a kind of commodatum where the bailor may demand the thing loaned at
will.

5. Statement I. In all cases of extra-judicial foreclosure, the right of redemption can be

exercised by the mortgagor within one year from and after the juridical registration of the
sale.
Statement II. In judicial foreclosure, the mortgagor may still exercise his equity of
redemption after the confirmation of the sale by the court.
a. False, True
b. True, True
c. True, False
d. False, False
REVIEWER BL 13