Man wants to pay for parents’ real estate mortgage
"My parents mortgaged their lot so that they can loan money from their friend to support my studies in college. The mortgage is recorded in the Transfer Certificate of Title (TCT) over the lot. Does it really need to be noted in the TCT? I already graduated and have a good paying job. How can I clean their title from the mortgage? I know how much it pains my mother to see that their lot is mortgaged to somebody else and I want to know how I can ease up my mother’s concerns.
Your intention of helping your parents in settling their obligation is very commendable. We highly approve of your act in somehow giving back to your parents what they truly deserve from you especially now that you have graduated and have a good paying job.A real estate mortgage is a contract constituted over an immovable property to secure the fulfillment of a debt or an obligation.
It directly and immediately subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted (Article 2126, Civil Code of the Philippines).The recording of the contract of mortgage in the Registry of Property of the place where the land mortgaged is situated is necessary because it is one of the requirements to the valid constitution of a mortgage.
However, if the contract or the instrument evidencing the mortgage is not recorded, the mortgage is nevertheless binding between the parties (Article 2125, Civil Code of the Philippines).Upon its registration together with the owner’s duplicate Transfer Certificate of Title (TCT), the Registry of Deeds will enter to the original certificate of title and to the owner’s duplicate certificate a memorandum thereof together with other particulars such as the date and time of filing and the file number assigned to the deed and shall sign the said memorandum (Section 61, Presidential Decree [PD] 1529).The registration and recording of the mortgage to the certificate of title will serve as a constructive notice to the whole world that the property is subject to a mortgage and that everyone who thereafter deals with the said property would have to respect the encumbrance (Agcaoili, Property Registration Decree and Related Laws (2006), page 474).Your parents mortgaged their lot to secure the loan they obtained from their friend. The annotation in your parents’ certificate of title regarding the said mortgage will only be removed or cancelled upon the full payment of their debt.
Once your parents’ obligation is fully settled, the mortgagee will execute a deed or instrument, which will indicate the satisfaction of the debt and the cancellation of the mortgage.This deed or instrument shall then be filed with the same Register of Deeds who shall make the memorandum as to the cancellation of the annotation of the real estate mortgage in your parents’ certificate of title (Section 62, PD 1529).Finally, we wish to remind you that this opinion is solely based on your narration of facts and our appreciation of the same. The opinion may vary if other facts are added or elaborated.We hope that we were able to address your concern.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to email@example.com or via text message (key in: Times dearpao and send to 2299)."
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"Man wants to pay for parents’ real estate mortgage"
was written by Mary
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comments. The article was created on 15 September 2021
and updated on 15 September 2021