Practice question
A claimant proves actual fraud and files within six months from entry of a decree. Before filing, an innocent mortgagee for value acquired an interest in the land. The facts establish that reopening would prejudice that protected interest. The claimant argues that only an outright buyer can invoke Section 32's protection. Which conclusion is correct?
- A mortgagee is always excluded from the statutory protection.
- Timeliness automatically defeats the mortgagee's protected interest.
- Section 32 includes an innocent mortgagee for value, so the petition cannot be entertained to prejudice that interest.
- Actual fraud automatically makes every subsequent mortgage fraudulent.
- The mortgagee must own the entire land to be protected.
Legal references
- https://lawphil.net/statutes/presdecs/pd1978/pd_1529_1978.html — PD 1529, Section 32.
Answer this question in flashcards to review your response and continue practicing.