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Questions and Answers
What is the primary obligation of the mortgagor in a mortgage agreement?
What is the primary obligation of the mortgagor in a mortgage agreement?
Which right allows the mortgagee to take possession of the property if the mortgagor fails to pay the debt?
Which right allows the mortgagee to take possession of the property if the mortgagor fails to pay the debt?
What does the obligation of the mortgagee include after the debt is fully paid?
What does the obligation of the mortgagee include after the debt is fully paid?
What must a mortgagor do if they wish to redeem the property after an extrajudicial foreclosure?
What must a mortgagor do if they wish to redeem the property after an extrajudicial foreclosure?
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Under what condition can a mortgagor lose their right to possession of the property?
Under what condition can a mortgagor lose their right to possession of the property?
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What is the consequence if the mortgagor impairs the property?
What is the consequence if the mortgagor impairs the property?
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What rights does the mortgagee have regarding the proceeds from foreclosure?
What rights does the mortgagee have regarding the proceeds from foreclosure?
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What is the right of redemption for the mortgagor?
What is the right of redemption for the mortgagor?
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Study Notes
Mortgage under Philippine Civil Code
- A mortgage is a contract where a debtor (mortgagor) guarantees a debt with real or personal property, without transferring ownership to the creditor (mortgagee).
- The mortgage creates a lien on the property, securing the debt.
- Key provisions on mortgage are found in Articles 2085 to 2123 of the Civil Code.
Mortgagor's Rights and Obligations
- Right to Possession and Enjoyment: The mortgagor retains possession and can use the property, as long as the mortgage agreement is not breached.
- Right of Redemption: In extrajudicial mortgages, the mortgagor has the right to buy back the property after foreclosure by paying the debt and associated costs.
- Obligation to Pay Debt: The mortgagor's primary responsibility is to pay the debt secured by the mortgage.
- Obligation to Maintain Property Value: The mortgagor must not damage the property. If the property is impaired, the mortgagee can demand full payment.
Mortgagee's Rights and Obligations
- Right to Foreclose: If the mortgagor defaults on payment, the mortgagee can initiate foreclosure, either through judicial or extrajudicial processes.
- Right to Judicial Possession: In judicial foreclosure, the mortgagee has the right to possess the property after the sale if the mortgagor doesn't redeem it.
- Obligation to Release Property: Upon full payment of the debt, the mortgagee must return the mortgage documents and remove the encumbrance on the property.
- Obligation to Account for Foreclosure Proceeds: The mortgagee must apply foreclosure sale proceeds to the outstanding debt, return any surplus to the mortgagor, and the mortgagor remains responsible for any deficit.
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Description
This quiz covers the key aspects of mortgages under the Philippine Civil Code, focusing on the rights and obligations of mortgagors and mortgagees. Topics include lien creation, rights of possession, redemption, and responsibilities of property maintenance. Test your understanding of Articles 2085 to 2123.
