MANARANG AND MANARANG V. OFILADA AND ESTEBAN
99 SCRA 108
FACTS:Manarang secured a loan from Esteban guaranteed by a chattel mortgage over a house of mixed materials. Due to failure to pay, the chattel mortgage was foreclosed. Before the sale of the property, Manarang tried to pay for the property but the sheriff refused to accept tender unless there
is payment for the publication of the notice of sale in the newspapers.
This prompted Manarang to bring this suit to compel the sheriff to accept payment. He averred that the publication was unnecessary as the house should be considered as personal property per agreement in the chattel mortgage, and the publication for notice of sale is unnecessary.
HELD:There is no question that a building of mixed materials may be a subject of chattel mortgage, in which case it is considered as between the parties as personal property.
The mere fact that a house was the subject of chattel mortgage and was considered as personal property by the parties doesn’t make the said house personal property for purposes of the notice to be given for its sale in public auction. It is real property within the purview of Rule 39, Section
16 of the Rules of Court as it has become a permanent fixture on the land, which is real property.