This case has been cited 1 times or more.
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2015-11-10 |
PEREZ, J. |
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| The rule is long and well-settled that every person dealing with registered land has a right to rely on the face of the title when determining its ownership.[49] A mortgagee has a right to rely in good faith on the certificate of title of the mortgagor of the property given as security and has no obligation to undertake further investigation in the absence of any sign that might arouse suspicion.[50] Since their business is imbued with public interest, banks are, concededly, are expected to be more cautious than ordinary individuals in dealing with lands, even registered ones.[51] Before approving a loan, it has become the practice of banks and other financial institutions to conduct an ocular inspection of the property offered to be mortgaged and verify the genuineness of the title to determine the real owners thereof.[52] The record shows that, despite being confronted with THI's clean titles, Equitable Bank nevertheless caused an ocular inspection of Block 494. Considering the validity of the mortgage THI executed in its favor, however, there is no need to resolve the issue of whether or not Equitable Bank was in good faith in proceeding with the mortgage despite the visible improvements on the property.[53] | |||||