Practice question
Which diligence rule applies to a bank taking registered land as mortgage security?
- It may ignore all occupants
- It has less responsibility than an ordinary buyer
- It must exercise the heightened diligence expected of banks, beyond bare reliance on the title where required
- An appraisal automatically resolves ownership
- A clean title makes all investigation unlawful
Legal references
- G.R. 247868, October 12, 2022, main opinion: https://lawphil.net/judjuris/juri2022/oct2022/gr_247868_2022.html
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