Conjugal Partnership of Gains

What is the Conjugal Partnership of Gains (CPG)?

The Conjugal Partnership of Gains applies if agreed upon in the marriage settlement. Under this regime, the husband and the wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their effort or by chance, and upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements. This regime is thoroughly explained in this article:

Art. 106. Under the regime of conjugal partnership of gains, the husband and wife place in a common fund the proceeds, products, fruits and income from their separate properties and those acquired by either or both spouses through their efforts or by chance, and, upon dissolution of the marriage or of the partnership, the net gains or benefits obtained by either or both spouses shall be divided equally between them, unless otherwise agreed in the marriage settlements. (142a)

 What are included in the Conjugal Partnership of Gains (CPG)?

  1. Properties acquired by onerous title during the marriage at the expense of the common fund.
  2. Properties obtained during the marriage from the labor, industry, work or profession of either or both spouses.
  3. Fruits from conjugal properties and “net fruits” from separate properties
  4. Share in hidden treasures
  5. Acquired thru chance
  6. Livestock

For further elaboration, the following articles of the Family Code explains that:

Art. 116. All property acquired during the marriage, whether the acquisition appears to have been made, contracted or registered in the name of one or both spouses, is presumed to be conjugal unless the contrary is proved. (160a)

Art. 117. The following are conjugal partnership properties:

  • Those acquired by onerous title during the marriage at the expense of the common fund, whether the acquisition be for the partnership, or for only one of the spouses;
  • Those obtained from the labor, industry, work or profession of either or both of the spouses;
  • The fruits, natural, industrial, or civil, due or received during the marriage from the common property, as well as the net fruits from the exclusive property of each spouse;
  • The share of either spouse in the hidden treasure which the law awards to the finder or owner of the property where the treasure is found;
  • Those acquired through occupation such as fishing o

Regime of Separation of Property

What is the Regime of Separation of Property?

The Regime of Separation of Property governs that each spouse shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need of consent of the other. In this regime, each spouse shall belong all earnings from his/her profession, business or industry and all fruits, natural, industrial or civil, due or received during the marriage from his or her separate property.

Art. 143. Should the future spouses agree in the marriage settlements that their property relations during marriage shall be governed by the regime of separation of property, the provisions of this Chapter shall be suppletory. (212a)

What are the obligations chargeable to separate property?

  1. Support of illegitimate children of either spouse;
  2. Liabilities by reason of crime or quasi-delict;
  3. Expenses of litigation if found to be groundless;
  4. Losses in any game of chance;
  5. Debts contracted during the marriage (contracted without the consent of one spouse and which did not benefit the family);
  6. Ante-nuptial debt which did not benefit the family;
  7. Taxes incurred on a separate property which is not used by the family;
  8. Expenses incurred during the marriage on a separate property ifnot for its preservation; and the property is not used by the family.

The following provisions of the Family Code shall also govern the separate properties of each spouse:

Art. 144. Separation of property may refer to present or future property or both. It may be total or partial. In the latter case, the property not agreed upon as separate shall pertain to the absolute community. (213a)

Art. 145. Each spouse shall own, dispose of, possess, administer and enjoy his or her own separate estate, without need of the consent of the other. To each spouse shall belong all earnings from his or her profession, business or industry and all fruits, natural, industrial or civil, due or received during the marriage from his or her separate property. (214a)

Art. 146. Both spouses shall bear the family expenses in proportion to their income, or, in case of insufficiency or default thereof, to the current market value of their separate properties.The liabilities of the spouses to creditors for family expenses shall, however, be solidary. (215a)


Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.


Property Regime of Unions without Marriage

What is the property regime of unions without marriage?

The following provisions of the New Civil Code shall apply in these respective cases:

Art. 147. The conjugal partnership shall be governed by the rules on the contract of partnership in all that is not in conflict with what is expressly determined in this Chapter. (1395)

*This applies when a man and a woman, suffering no legal impediment to marry each other, so exclusively live together as husband and wife under a void marriage or without the benefit of marriage. Wages and salaries earned by either party during the cohabitation shall be owned by the parties in equal shares and will be divided equally between them. This is true even if only one party earned the wages and the other did not contribute thereto.

Art. 148. The following shall be the exclusive property of each spouse:

(1) That which is brought to the marriage as his or her own;

(2) That which each acquires, during the marriage, by lucrative title;

(3) That which is acquired by right of redemption or by exchange with other property belonging to only one of the spouses;

(4) That which is purchased with exclusive money of the wife or of the husband. (1396)

*This applies in cases where the parties in unions are incapacitated to marry each other. It refers to the property regime of bigamous marriages, adulterous relationships in state of concubinage, relationships where both man and woman are married to other persons. Wages and salaries earned by each party belong to him or her exclusively. Only property acquired by both of the parties thru “actual joint contribution of money, property, or industry “shall belong to the co-ownership, in proportion to their respective contributions.



Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.



Separation of Property of Spouses during Marriage

How is separation of property of spouses during the marriage effected?

The system of Complete Separation of Property will only govern if there is an express declaration in the marriage settlement. Separation of property may also be ordered by the court upon finality of decree of legal separation, joint petition of the spouses or petition for Judicial Separation due to a sufficient cause. The spouse if prior to marriage did not stipulate in any written marital agreement their property relationship through separation of property, they cannot alter this relationship after the marriage without mandatory judicial approval. The following may be the cause:

Art. 135. Any of the following shall be considered sufficient cause for judicial separation of property:

  • That the spouse of the petitioner has been sentenced to a penalty which carries with it civil interdiction;
  • That the spouse of the petitioner has been judicially declared an absentee;
  • That loss of parental authority of the spouse of petitioner has been decreed by the court;
  • That the spouse of the petitioner has abandoned the latter or failed to comply with his or her obligations to the family as provided for in Article 101;
  • That the spouse granted the power of administration in the marriage settlements has abused that power; and
  • That at the time of the petition, the spouses have been separated in fact for at least one year and reconciliation is highly improbable.

In the cases provided for in Numbers (1), (2) and (3), the presentation of the final judgment against the guilty or absent spouse shall be enough basis for the grant of the decree of judicial separation of property. (191a)

What is separation-in-fact orseparation-de-facto?

Separation in fact is the cessation of the cohabitation or common life of the husband and wife under the same roof but are still providing for their mutual duty of support and their duty to support and maintain the children. The separation-in-fact between husband and wife shall not affect the regime of absolute community or conjugal partnership, if without judicial approval.


Family Code of the Philippines [Executive Order No. 209]

Jurado, D. (1999). Civil Law Reviewer. Quezon City: Rex Printing Company, Inc.

Sta. Maria, M. (2010). Persons and Family Relations Law. Quezon City: Rex Printing Company, Inc.



What is the reconstitution of certificate of title?

Reconstitution of certificate of title is the restoration of the instrument which is supposed to have been lost or destroyed in its original form and condition, under the custody of the Register of Deeds.

What are the kinds of reconstitution of certificate of title?

1. Judicial reconstitution which partakes the nature of a land registration proceeding in rem. As PD 1529 states:

Section 2. Nature of registration proceedings; jurisdiction of courts. Judicial proceedings for the registration of lands throughout the Philippines shall be in rem and shall be based on the generally accepted principles underlying the Torrens system.

2. Administrative reconstitution which may be availed of only in case of:

 1. Substantial loss or destruction of the original land titles due to fire, flood, or other force majeure as determined by the Administrator of the Land Registration Authority;

2. The number of certificates of title lost or damaged should be at least 10% of the total number in the possession of the Office of the Register of Deeds;

3. In no case shall the number of Certificates of title lost or damaged be less than 500; and

4. The Petitioner must have the duplicate copy of the certificate of Title. (RA 6732)

What are the other petitions/transactions after original registration?

  1. Amendment and Alteration of Certificate of Title
  2. Surrender of Withheld Duplicate Certificate of Title
  3. Replacement of Lost Duplicate Certificate of Title

What are the laws governing the reconstitution of title?

1. Act 496: Land Registration Act of 1903 (approved November 6, 1902, effective January 1, 1903)

  1. Governs the homesteading, selling, and leasing of portions of the public domain of the country
  2. The purpose of the Torrens System of Registration is to quiet title to the land
  3. Perfects for the issuance of patents without compensation to certain native settlers
  4. The Court of Land Registration, the Register of Deeds and the Torrens system of registration were created
  5. Real estate ownership may be judicially confirmed and recorded in the archives of the government
  6. The term “public land” referred to all lands of the public domain whose title still remained with the government; excluded the patrimonial property and friar lands
  7. Act No. 926 is the first Public Land Act (1903)
  8. Act No. 2874 is the second Public Land Act (1919) and was passed under the Jones Law

2. Act No. 2259: Cadastral Act (effective on February 11, 1913)

  1. Only unregistered lands may be the subject of a cadastral survey and those already titled cannot be the subject of cadastral proceedings.
  2. It aims to settle and adjudicate any lands upon order of the President to the Director of Lands to make a government survey in the interest of the public. All conflicting interests on lands shall be adjudicated (to be settled by law) through the Solicitor General who represents the Director of Lands.
  3. The cadastral court over previously titled lands is only focused on correction of technical errors in the description of the land.
  4. The decree was awarded to the person with better claim and shall be the basis for the insurance of certificate of title which shall have the same effect as a certificate of title granted under the Property Registration Decree

 3. CA No. 141: Public Land Act (approved on November 7, 1936, effective on December 1, 1936)

  1. The law governed the classification and disposition of lands of the public domain
  2. It is the first law for judicial confirmation of imperfect and incomplete titles
  3. Free patent under rule states that the area of the land must not exceed 24 hectares for any natural Filipino citizens and cultural minorities
  4. The qualification includes: must be a natural born citizen, does not own more than 24 hectares of land since July 24, 1926, continuous occupation and cultivation for at least 30 years, pays realty tax of the property. Cultural minorities are required to have a continuous occupation and cultivation of the land since July 24, 1955 whether disposable or not for at least 30 years, not an owner of any real property.

4. PD 1529: Property Registration Decree (approved on June 11, 1978, effective on June 11, 1978)

  1. Amended and codified the laws relative to registration of property
  2. Included judicial confirmation of imperfect or incomplete titles which tackled cadastral, voluntary and involuntary registration proceedings and the certificate of land transfer and emancipation patents
  3. The court may dismiss the application of the applicant with or without prejudice to the right to file a new application for the registration of the same land Court of First Instance was given the exclusive jurisdiction over all applications for original registration of title to lands, including improvements and interests therein and over all petitions filed after original registration of title.
  4. Homestead patent Issued by the Director Lands over land not of the public domain is a nullity, devoid of force and effect against the owner whose title is covered by an OCT or TCT.
  5. Registration of untitled lands or lands with imperfect titles is ineffective against third persons. That in case of double sale, the title registered under the Torrens System is superior than title registered under Act 3344. Registration under the Torrens System, at the Registry of Deeds is needed so that title shall be binding upon third parties.

5. PD 892 (issued on February 16, 1976)

  1. Discontinued the system of land registration under the Spanish Mortgage Law and the use of Spanish titles as evidence in land registration proceedings
  2. Holders of Spanish titles must apply for registration within 6 months or until August 16, 1976 from this decree’s effectivity or else their titles would produce no registration
  3. Under this decree, Spanish titles can no longer be used as evidence of ownership

 6. 1987 Constitution

  1. SEC 3, ARTICLE XII refers to ownership of government lands which  states that for Citizens of the Philippines they can lease not more than 500 hectares and acquire not more than 12 hectares
  2. Free Patent rule under the Constitution states that any natural born citizen of the Philippines who is not the owner of more than 12 hectares and who, for at least 30 years including his predecessor-in-interest has continuously occupied the land. He shall be entitled an area not to exceed 12 hectares-Torrens title issued on the basis of the free patent becomes as indefeasible as one that was judicially secured upon the expiration of one year from date of issuance of patent.

7. RA 6732 (approved July 17, 1989)

  1. Allowing administrative reconstitution of original copies of certificates of titles lost or destroyed due to fire, flood and other force majeure;
  2. Administrative reconstitution available to original certificates of title lost are at least 10% of all the titles in the Registry of Deeds but not less than 500 titles whichever is higher;
  3. Administrative reconstitution of titles shall be without prejudice to parties whose rights or interests may been annotated on the lost or destroyed original certificates of titles.

8. RA 6657 Comprehensive Agrarian Reform Program/ CARP (approved June 15, 1988) 

  1. Applicable to all agricultural lands regardless of produce
  2. The choice of productive landholdings belongs to the owner of the land
  3. Retention is 5 hectares to landowners; plus 3 hectares for each child 15 years old and above, actually tilling and managing the farm
  4. Beneficiary : limited to 3 hectares only
  5. Under CARP, a landless beneficiary is one who owns less than 3 hectares of agricultural land

9. RA 7042 amended by RA 8179: Foreign Investment Act (approved: March 28, 1996)

  1. Allows natural-born Filipino citizen who lost their Philippine citizenship to acquire private lands subject to limitation of the law. Land limits: 5,000 square meters, in case of urban land and 3 hectares in case of rural land.

10. RA 8371: Indigenous Peoples Rights Act (approved on October 29, 1997)

  1. Indigenous Peoples Rights Act of 1997
  2. Rights of ownership is limited to ancestral lands only
  3. Law dealing with specific group of people

11. RA 9176 (approved November 13, 2002)

  1. Extending the period until December 31, 2020 for the filing of applications for administrative legalization (free patent) and judicial confirmation of imperfect and incomplete titles to alienable and disposable lands of the public domain, amending for this purpose CA 141
  2. If further, limits the area to be applied for to 12 hectares only

12. RA 9225: Citizenship Retention and Re-acquisition Act (approved August 29, 2003)

  1. This law provided that natural born citizens of the Philippines, who have lost their Philippine citizenship by reason of their naturalization as citizens of foreign country, are hereby deemed to have re-acquired Philippine citizenship upon taking their oath of allegiance to the republic and shall enjoy full civil and political rights and be subject to all attendant liabilities and responsibilities under the existing laws of the Philippines. Therefore, limitation on ownership under RA 7402 as amended by RA 8179 is deemed not applicable under this law.

13. RA 9700: Comprehensive Agrarian Reform Law/CARPER (approved August 7, 2009)

  1. It extended the program for another 5 years
  2. It is the redistribution of private and public agricultural lands to help the beneficiaries survive as small independent farmers, regardless of the tenurial arrangement
  3. It covers: alienable and disposable lands of public domain suitable for agriculture
  4. It awards ceiling of 3 hectares for beneficiaries and payment of beneficiaries must be 30 years at 6% interest per annum to Land Bank. Awarded lands shall not be sold to non-beneficiary of the program
  5. The lands covered may be disposed before 10-year period only to the government, Land Bank or program beneficiaries and may be disposed or encumbered after 10yrs from date of registration
  6. Conversion is allowed after 5 years if applicable and no conversion on irrigated lands
  7. The law has laid down a penalties of either3 years imprisonment or 15k fine or both

 14. RA 10023: The New Residential Free Patent Law of 2010 (approved March 9, 2010)

  1. The law has made any Filipino citizen who is an actual occupant of a residential land provided that in highly urbanized cities, the land should not exceed 200sqm or 500sqm in other cities as qualified for the free patent. The land should not exceed 750sqm for first class and second class municipalities and in all other municipalities, it should not exceed 1000sqm provided further that the land is not needed for public service or public use.
  2. It covers coverage: All lands that are zoned as residential areas including town sites as defined under Public Land Act provided that none of the provisions of PD 705 have been violated; zoned residential area located inside a delisted military reservation or abandoned military camp and those of local government units or town sites
  3. Those special patents may be granted under the name of the national agency of local government notwithstanding any provision of law to the contrary and subject to private rights, if any public land actually occupied and used for public schools, municipal halls, public plazas or parks and other government institutions for public use.
  4. All lands titled under this section shall not be disposed of unless sanctioned by Congress if owned by the national agency or sanctioned by the Sanggunian concerns through an approved ordinance if owned by the local govt.


Agcaoili, O. (2011). Property Registration Decree and Related Laws. Quezon City: Rex Printing Company, Inc.

Property Registration Decree 1529, “Amending and Codifying the Laws Relative to Registration of Property and for Other Purposes”


Real Estate Mortgage

What is a real estate mortgage?

Real estate mortgageis a contract whereby the debtor secures to the creditor the fulfillment of a principal obligation, specially subjecting to such security immovable property or real rights over immovable property in case the principal obligation is not complied with at the time stipulated

What are the essential requisites of real estate mortgage?

1. Secures the fulfillment of a principal obligation;
2. Mortgagor, must be the absolute owner of the thing mortgaged; and
3. Mortgagor must have free disposal of their property, or be legally authorized for such purpose.

The abovementioned enumeration is based on this article of the law:

Art. 2085. The following requisites are essential to the contracts of pledge and mortgage:

(1) That they be constituted to secure the fulfillment of a principal obligation;

(2) That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged;

(3) That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose.

Third persons who are not parties to the principal obligation may secure the latter by pledging or mortgaging their own property. (1857)

Other special requisites include the following:

1. It can cover only immovable property and alienable real rights imposed upon immovables;
2. It must appear in a public instrument;
3. Registration in the registry of property is necessary to bind third persons, but not for the validity of the contract

When the principal obligation becomes due, the things in which was mortgaged may be alienated for the payment to the creditor. This is supported by this article:

Art. 2087. It is also of the essence of these contracts that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment to the creditor. (1858)

Mortgagor retains ownership of the thing given as a security.

What are the Kinds of real estate mortgage?

1. Voluntary- agreed to by the parties or constituted by the will of the owner of the property on which it is created
2. Legal- one required by law
3. Equitable- one which, although lacking the formalities of a mortgage, shows the intention of the parties to make the property a security for a debt

What is the rule for alien mortgagors?

1. An alien may accept mortgage but he is prohibited from taking possession of the mortgaged property during the existence of the mortgage and even after default of the mortgage except for the purpose of :

• Foreclosure of mortgage
• Receivership for a period of 5 years from the actual possession
• Participating in the bidding or taking part in any sale of the property mortgaged in cases of foreclosure

The mortgagee has the right to rely on what appears on the face of the certificate and in the absence of suspicion the mortgagee has no obligation to look beyond thereon. If the title bears the name of the real owner and the mortgagee was constituted by an impostor without consent of the owner then the mortgage is null and void.


Guillermo Adriano v. Romulo Pangilinan, GR 137471, January 16, 2002

Paras, E. (2013). Civil Code Volume V (Special Contracts). Quezon City: Rex Printing Company, Inc.

The New Civil Code

Pactum Commissorium

Prohibition against pactumcommissorium?

The stipulation whereby the thing used as security shall automatically become the property of the creditor or there is the automatic transfer of ownership in the event of non-payment of the debt in due time.

As a general rule, PactumCommissorium is forbidden by law and is declared null and void except the pledgee may appropriate the thing pledged if after the first and second auctions, the thing is not sold as required by this article;

Art. 2112. The creditor to whom the credit has not been satisfied in due time, may proceed before a Notary Public to the sale of the thing pledged. This sale shall be made at a public auction, and with notification to the debtor and the owner of the thing pledged in a proper case, stating the amount for which the public sale is to be held. If at the first auction the thing is not sold, a second one with the same formalities shall be held; and if at the second auction there is no sale either, the creditor may appropriate the thing pledged. In this case he shall be obliged to give an acquittance for his entire claim. (1872a)

What is pacta non aliendo?

Pacta non aliendo refers to a stipulation in a mortgage which prohibits the mortgagor from alienating the mortgaged property subject to the mortgage within the mortgage period.

Paras, E. (2013). Civil Code Volume V (Special Contracts). Quezon City: Rex Printing Company, Inc.

Perez v. Cortez, 35 Phil. 211

The New Civil Code


What is foreclosure?

Foreclosure is the remedy available to the mortgagee by which he subjects the mortgaged property to the satisfaction of the obligation, to secure that for which the mortgage was given. It may mean the usual methods including the sale of the goods at a public auction.The right to foreclose a mortgage prescribes in ten (10) years.

What are the kids of foreclosure?

1. ORDINARY- an ordinary execution sale is governed by the pertinent provisions of Rule 39 of the Rules of Court

2. JUDICIAL – ordinary action for foreclosure under Rule 68 of the Rules of Court.

3. EXTRAJUDICIAL- when mortgagee is given a special power of attorney to sell the mortgaged property by public auction, under Act No. 3135

What is Act No. 3135 on Extrajudicial Foreclosure of Real Property all about?

The law covers only real estate mortgages. It is intended merely to regulate the extrajudicial sale of the property mortgaged.The authority to sell is not extinguished by the death of the mortgagor/mortgagee as it is an essential and inseparable part of a bilateral agreement. No sale can be legally made outside 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 the subject of stipulation, such sale shall be made in the said place in the municipality building of the municipality in which the property or part thereof is situated

What is the procedure for Extrajudicial Foreclosure of both real estate mortgage under Act No. 3135 and Chattel Mortgage under Act No. 1508?

1. Filing of application before the Executive Judge through the Clerk of Court;

2. Clerk of Court will examine whether the requirement of the law have been complied with. That is, whether the notice of sale has been posted for not less than 20 days in at least three (3) public places of the municipality or city where the property is situated, and where the same is more than P400.00, that such notice has been published once a week for at least three (3) consecutive weeks in a newspaper of general circulation in the city or municipality;

3. The certificate of sale must be approved by the Executive Judge;

4. In extrajudicial foreclosure of real mortgages in different locations covering one indebtedness, only one filing fee corresponding to such debt shall be collected;

5. The Clerk of Court shall issue certificate of payment indicating the amount of indebtedness, the filing fees collected, the mortgages sought to be foreclosed, the description of the real estates and their respective locations;

6. The notice of sale shall be published in a newspaper of general circulation pursuant to Section 1, PD No. 1079;

7. The application shall be raffled among all sheriffs;

8. After the redemption period has expired, the Clerk of Court shall archive the records;

9. No auction sale shall be held unless there are at least two (2) participating bidders, otherwise the sale shall be postponed to another date. If on the new date there shall not be at least two (2) bidders, the sale shall then proceed. The names of the bidders shall be reported to the Sheriff or the Notary Public, who conducted the sale to the Clerk of Court before the issuance of the certificate of sale


Act No. 3135, “An Act to Regulate the Sale of Property Under Special Powers Inserted in or Annexed to Real-Estate Mortgages”

IFC Service Leasing and Acceptance Corporation v. Venancio Nera, L-21720, Jan. 30, 1967

Paras, E. (2013). Civil Code Volume V (Special Contracts). Quezon City: Rex Printing Company, Inc.

C.N. Hodges, et al. v. Jose Manuel Lezema, et al., L-20630, Aug. 31, 1965

The New Civil Code


What is redemption?

Redemption is the transaction by which the mortgagor reacquired or buys back the property which may have passed under the mortgage, or divests the property of the lien which the mortgage may have created.

What are the kinds of redemption?

1. Equity of Redemption is theright of mortgagor to redeem the mortgaged property after his default in the performance of the conditions of the mortgage within the 90-day period from the date of the service of the order of foreclosure or even thereafter but before the confirmation of the sale. It applies to judicial foreclosure of real mortgage and chattel mortgage foreclosure.

2. Right of Redemption is the right of mortgagor to redeem the mortgaged property within one year from the date of registration of the certificate of sale. It applies only to extrajudicial foreclosure of real mortgage. It is best supported by this article:

Art. 1606. The right referred to in Article 1601, in the absence of an express agreement, shall last four years from the date of the contract.

Should there be an agreement, the period cannot exceed ten years.

However, the vendor may still exercise the right to repurchase within thirty days from the time final judgment was rendered in a civil action on the basis that the contract was a true sale with right to repurchase. (1508a)

What are the Periods of Redemption?

The following are the periods of redemption for the following:

a) Natural person has one year from registration of the certificate of sale with Registry of Deeds
b) Juridical personhas thesame rule as natural person
c) Juridical person(Mortgagee is a bank) isthree months after foreclosure or before registration of certificate of foreclosure whichever is earlier
d) Extrajudicial, the provisions of Act No. 3135 applies

What is the amount of the Redemption Price?

The following rules govern:

Mortgage is not a bank (Act No. 3135, in relation to Sec. 28, Rule 39 of Rules of Court)
a) Purchase price of the property
b) 1% interest per month on the purchase price
c) Taxes paid and amount of purchaser’s prior lien, if any, with the same rate of interest computed from the date of registration of sale, up to the time of redemption

Mortgagee is a bank (General Banking Law 2000)
a) Amount due under the mortgage deed
b) Interest
c) Cost and expenses

What is the redemption period in mortgage for homestead or free patent?

1. Mortgagee is a rural bank under RA 720 as amended-2 years from registration of the sheriff’s certificate of sale (titles or untitled); if the mortgagor fails to redeem he may still repurchase from the expiration of 2 years pursuant to Sec 119 of Public Land Act within 5 years

2. If land is mortgaged to parties other than rural banks, the mortgagor may redeem the property within 1 years and if he fails he or his heirs may repurchase from the expiration of 2 years from the same law within 5 years.


Act No. 3135, “An Act to Regulate the Sale of PropertyUnder Special Powers Inserted in or Annexed to Real-Estate Mortgages”

Hi-Yield Realty, Inc. v. CA, etc. GR 138978, Sep. 12, 2002

Paras, E. (2013). Civil Code Volume V (Special Contracts). Quezon City: Rex Printing Company, Inc.

The New Civil Code


What is lease?

Lease is a consensual, bilateral, onerous and commutative contract by virtue of which one person binds himself to grant temporarily the use of the thing or to render some service to another who undertakes to pay some rent.

Art. 1842. The right to an account of his interest shall accrue to any partner, or his legal representative as against the winding up partners or the surviving partners or the person or partnership continuing the business, at the date of dissolution, in the absence of any agreement to the contrary. (n)

What are the properties which may be leased?

1. Lease of Public Domain which must be those alienable lands (agricultural lands) of 1,000 hectares maybe leased by private corporation for 25 years and 12 hectares by Filipino citizens

2. Private Lands and/or improvements thereof.

What is the recording of lease of personal property?

As a general rule, the lease of real property is personal right. However if the lease partakes of the nature of real right if the lease real property is more than one (1) year or is registered regardless of duration.

Who are the persons disqualified to be lessees?

A husband and a wife cannot lease to each other their separate properties except if separation of property was agreed upon or if there has been judicial separation of property.
This is to prevent prejudice to creditors and to prevent the stronger spouse from influencing unduly the weaker spouse. Also, those mentioned in this article of the New Civil Code are disqualified:

Art. 1491. The following persons cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another:
(1) The guardian, the property of the person or persons who may be under his guardianship;

(2) Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given;

(3) Executors and administrators, the property of the estate under administration;

(4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or controlled corporation, or institution, the administration of which has been entrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale;

(5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions; this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession.

(6) Any others specially disqualified by law. (1459a)

*Persons referred to in Article 1491 of the New Civil Code are disqualified because of fiduciary relationships


The New Civil Code