(A) CONVEYANCES

AND TRANSFERS
AGUILAR, Krystalynne F.
Sec. 57.  An owner who desires to convey the land covered by
Procedure in his title to another shall execute the proper deed of
conveyance, in proper form and present the same,
registration of together with the owner’s duplicate certificate, to the
Conveyances. Register of Deeds for entry and registration
  The Register of Deeds shall note upon the original and
Sec. 57. duplicate certificate the:

Procedure in a. Date of Conveyance

registration of b. Volume and page of the registration book in which
the new certificate is registered
Conveyances.
c. Reference by number to the last preceding certificate
Sec. 57. 1. The original and owner’s duplicate of the grantor’s
certificate shall be stamped cancelled.
Procedure in
2. The deed of conveyance shall be filed with a notation
registration of of the number and place of registration of certificate
Conveyances. of title of the land conveyed.
 Sec. 58- Certain Portion of Land
Sec. 58. The Register of Deeds shall not issue any transfer certificate of
Procedure title until a plan of such land showing the portion of land has
been subdivided and the corresponding technical descriptions
has been verified and approved pursuant to Section 50.
where A deed of conveyance may in the meantime be annotated by
conveyance way of a memorandum in order to serve as a notice to third
persons of the fact of conveyance.
involves Filing with the office of the Register of Deeds for annotation on
the corresponding certificate of title. Issuance of a New CT and
portion of Cancellation of the Grantor’s CT.

land.
Sec. 58.  Carrying over of encumbrances in the new Certificate of Title

Procedure General Rule:

The rule is that between two involuntary documents, the earlier
where entry prevails.
conveyance Exception:
involves Where, however, the notice of lis pendens filed by a claimant, refers
portion of to a lot different from that covered by the adverse claim of another,
notwithstanding its prior registration, cannot be carried over to the
land. new title to be issued by the adverse claimant.
(B) MORTGAGES AND
LEASES
AGUILAR, Krystalynne F.
 The essence of a contract of mortgage indebtedness is
Sec. 60. that a property has been identified or set apart from the
Mortgage or mass of property of the debtor-mortgagor as security for
lease of the payment of money or the fulfillment of an obligation
to answer the amount of indebtedness, in case of
registered. default.
 Upon presentation of the deed or mortgage or lease for
registration together with the owner’s duplicate, the
Register o Deeds shall enter upon the original of the
Sec. 61. certificate and also upon the owner’s duplicate
Registration. certificate a memorandum thereof, the date and time of
filing and the file number assigned to the deed, and shall
sign the said memorandum.
 A recorded mortgage is a right in rem, a lien on the
property whoever its owner may be.
Sec. 61. All subsequent purchasers must respect the mortgage
Registration. whether the transfer to them be with or without the
consent of the mortgagee, for such mortgage until
discharged follows the property.
 Art. 2124. Only the following property may be the object of a
contract of mortgage:

(1) Immovables;
Sec. 61. (2) Alienable real rights in accordance with the laws, imposed
Registration. upon immovables.

Nevertheless, movables may be the object of a chattel

mortgage. (1874a)
 ESSENTIAL REQUISITES OF A MORTGAGE
1. To secure the fulfillment of a principal obligation
2. The mortgagor should be the absolute owner of thing
mortgaged
3. The mortgagor should have free disposal of the thing
Sec. 61. 4. When the principal obligation becomes due, the thing
Registration. mortgaged may be alienated to secure payment
5. For a mortgage to be validly constituted and to prejudice third
persons, the mortgage should be recorded with the Registry of
Property

NO VALIDLY CONSTITUTED MORTGAGE IF THE DEED OF

MORTGAGE IS A MERE PRIVATE DOCUMENT
 Art. 1602. The contract shall be presumed to be an equitable
mortgage, in any of the following cases:
(1) When the price of a sale with right to repurchase is unusually
Sec. 61. inadequate;

Registration. (2) When the vendor remains in possession as lessee or otherwise;

(3) When upon or after the expiration of the right to repurchase
another instrument extending the period of redemption or granting
a new period is executed;
 (4) When the purchaser retains for himself a part of the purchase
price;
(5) When the vendor binds himself to pay the taxes on the thing
sold;
Sec. 61. (6) In any other case where it may be fairly inferred that the real
Registration. intention of the parties is that the transaction shall secure the
payment of a debt or the performance of any other obligation.
In any of the foregoing cases, any money, fruits, or other benefit to
be received by the vendee as rent or otherwise shall be considered
as interest which shall be subject to the usury laws.
 For the presumption of an equitable mortgage to arise under Article
1602, two (2) requisites must concur: (a) that the parties entered
into a contract denominated as a contract of sale; and, (b) that their
intention was to secure an existing debt by way of a mortgage. Any
Sec. 61. of the circumstances laid out in Article 1602, not the concurrence
nor an overwhelming number of the enumerated circumstances, is
Registration. sufficient to support the conclusion that a contract of sale is in fact
an equitable mortgage. In several cases, we have not hesitated to
declare a purported contract of sale to be an equitable mortgage
based solely on one of the enumerated circumstances under Article
1602. This approach follows the rule that when doubt exists on the
nature of the parties’ transaction, the law favors the least
transmission of property rights.