This case has been cited 3 times or more.
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2015-08-26 |
MENDOZA, J. |
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| Preliminarily, the Court notes that the issue of whether a mortgagee is in good faith generally cannot be entertained in a petition filed under Rule 45 of the Rules of Court. This is because the ascertainment of good faith or the lack thereof, and the determination of negligence are factual matters which lie outside the scope of a petition for review on certiorari.[9] A recognized exception to this rule, however, is when there is a misapprehension of facts or when the inference drawn from the facts is manifestly mistaken and, hence, a review of factual issues is allowed.[10] The case at bench falls under the exception. | |||||
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2015-08-05 |
BRION, J. |
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| The same is true with BPI which should have exercised a higher degree of diligence when it dealt with TCT No. T-77739 and its antecedent title, TCT No. T-72029. If BPI had conducted proper due diligence, it would have discovered that Belen Uy's adverse claim was cancelled by a different person. This is an irregularity that it should have easily noticed since under Section 70[43] of PD No. 1529, an adverse claim may only be cancelled at the instance of the trial court or the claimant. As a banking institution, BPI is expected to exert a higher degree of diligence, care, and prudence than ordinary individuals in handling its real estate transactions.[44] | |||||
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2015-08-03 |
PERALTA, J. |
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| True, banks, in handling real estate transactions, are required to exert a higher degree of diligence, care, and prudence than individuals. Unlike private individuals, it is expected to exercise greater care and prudence in its dealings, including those involving registered lands. A banking institution is expected to exercise due diligence before entering into a mortgage contract.[5] Indeed, there is a situation where, despite the fact that the mortgagor is not the owner of the mortgaged property, his title being fraudulent, the mortgage contract and any foreclosure sale arising therefrom are given effect by reason of public policy. This is the doctrine of "the mortgagee in good faith," wherein buyers or mortgagees dealing with property covered by a Torrens Certificate of Title are no longer required to go beyond what appears on the face of the title.[6] However, the rule that persons dealing with registered lands can rely solely on the certificate of title is not applicable to banks. Thus, before approving a loan application, it is a standard operating practice for these institutions to conduct an ocular inspection of the property offered for mortgage and to verify the veracity of the title to determine its real owners. An ocular inspection is necessary to protect the true owner of the property as well as innocent third parties with a right, interest or claim thereon from a usurper who may have acquired a fraudulent certificate of title.[7] | |||||