Practice question
A bank appraises a proposed collateral lot solely to estimate its sale price. Its appraiser sees third-party occupants but intentionally makes no inquiry into their rights. Does valuation alone establish the required diligence?
- Yes, any visit is enough
- Yes, because banks never inquire into possession
- Yes, if the loan is profitable
- Yes, because market price controls legal ownership
- No; a valuation visit does not by itself satisfy the bank’s ownership-and-possession inquiry duties
Legal references
- G.R. 247868, October 12, 2022, main opinion: https://lawphil.net/judjuris/juri2022/oct2022/gr_247868_2022.html
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