MORTGAGES AND LEASES

Section 60. Mortgage or lease of registered land. Mortgage and leases shall be registered in the manner provided in Section 54 of this Decree. The owner of registered land may mortgage or lease it by executing the deed in a form sufficient in law. Such deed of mortgage or lease and all instruments which assign, extend, discharge or otherwise deal with the mortgage or lease shall be registered, and shall take effect upon the title only from time of registration.

No mortgagee's or lessee's duplicate certificate of title shall hereafter be issued by the Registers of Deeds, and those issued prior to the effectivity of this Decree are hereby deemed canceled and the holders thereof shall immediately surrender the same to the Register of Deeds concerned.

ESSENCE OF MORTGAGE

> A property has been identified or set apart from the mass of property of the debtor-mortgagor as security for the payment of money or the fulfillment of obligation to answer the amount of indebtedness, in case of default of payment

Section 61. Registration. Upon presentation for registration of the deed of mortgage or lease together with the owner's duplicate, the Register of Deeds shall enter upon the original of the certificate of title and also upon the owner's duplicate certificate a memorandum thereof, the date and time of filing and the file number assigned to the deed, and shall sign the said memorandum. He shall also note on the deed the date and time of filing and a reference to the
volume and page of the registration book in which it is registered.

RECORDED MORTGAGE IS A RIGHT IN REM

> Recording puts the whole world on constructive notice of its existence and warns everyone who deals thereafter with the property on which it was constituted that he would have reckon with that encumbrance

> A mortgage is a secondary contract

DOCTRINE OF INNOCENT MORTGAGEE FOR VALUE

EFFECT OF LIS PENDENS

> A notice of lis pendens is an announcement to the whole world that a particular real property is in litigation and serves as a warning that one who acquires an interest over said property does so at his own risk, so that he gambles on the results of the litigation over said property

> It has been held that any subsequent lien or annotation at the back of the certificate of title cannot in any way prejudice the mortgage previously registered, and the lots subject thereto pass to the purchaser at a public auction sale free from any lien or encumberance

UNRECORDED SALE OF A PRIOR DATE VS. RECORDED MORTGAGE ON A LATER DATE

> The unrecorded sale of prior date is preferred
> If the original owner had parted with his ownership of the thing sold then he no longer had the ownership and free disposal of that thing so as to be able to mortgage it again

JUDICIAL DECLARATION AS TO THE EXISTENCE OF A LIEN SUFFICIENT

RIGHTS OF SECOND MORTGAGE

> Right to repurchase the subject property
> Apply to the payment of its credit the excess of the proceeds of the sale after the payment of the credit of the first mortgagee

EFFECT OF MORTGAGE IF TORRENS TITLE IS NULLIFIED

> That the certificate of title issued is a nullity is not in question but whether the mortgagee is entitled to the protection accorded to an innocent purchaser for value, which includes one who is an innocent mortgagee for value

> If there was no fraud, negligence, or whatnot on the part of the mortgagee regarding the certificate which was later on nullified, then he would be deemed to be an innocent mortgagee for value, with the corresponding rights relating to him Section 62. Discharge or cancellation. A mortgage or lease on
registered land may be discharge or canceled by means of an instrument executed by the mortgage or lessee in a form sufficient in law, which shall be filed with the Register of Deeds who shall make the appropriate memorandum upon the certificate of title.

MORTGAGE DISCHARGED ONLY UPON FULL PAYMENT OF INDEBTEDNESS

RULE ON REDEMPTION LIBERALLY CONSTRUED