United Overseas Bank vs.

BOC-HLURB
760 SCRA 300 (2015)

Facts:
EDUPLAN bought a condominium unit from J.O.S. Managing Builders, Inc. under a contract to sell. The
condominium unit was fully paid in August 1998 and executed their deed of absolute sale in December
1998. However, J.O.S. Managing Builders did not deliver the condominium certificate title to EDUPLAN,
which, in time, discovered that J.O.S. Managing Builders that the unit was the subject of mortgage by
J.O.S. Managing Builders in favour of United Overseas Bank. Now EDUPLAN filed a petition to declare
the mortgage between J.O.S. Managing Builders and United Overseas Bank null and void. On August 15,
2001, HLURB (Housing and Land Use Regulatory Board) Arbiter declared the mortgage null and void.
Such decision led to the petition of United Overseas Bank.

Issues:
W/N the HLURB erred in declaring null and void the mortgage.

Ruling:
Yes, the HLURB erred in declaring null and void the mortgage. This is because EDUPLAN, a unit buyer,
has no legal standing in order for it to seek complete nullification of the mortgage when it only has
interest to the single unit that it purchased.