LLANTO V. ALZONA

450 SCRA 288

> One of the essential requisites of the contract of mortgage is that the mortgagor should be the absolute owner of the property. An exception to this rule is the doctrine of a mortgagee in good faith.

> A mortgagee has the right to rely on good faith on the certificate of title of the mortgagor to the property given as security and in the absence of any sign that might arouse suspicion, has no obligation to undertake further investigation

> For a mortgagee to be in good faith, jurisprudence requires that they should take necessary precaution expected of a prudent man to ascertain the status and condition of the properties offered as collateral and to verify the identity of the persons they transact business with