Practice question
A lender advances the purchase price for land for Paolo’s benefit. By their actual arrangement, title is conveyed to the lender solely to secure Paolo’s debt. All Article1450 facts are established. The lender insists that being named in the deed makes Paolo’s redemption impossible. Which is correct?
- A statutory trust permits Paolo to redeem and compel conveyance
- The deed name conclusively defeats the security arrangement
- The lender automatically receives the land as a gift
- The lender’s children alone may redeem
- The arrangement necessarily extinguishes the debt immediately
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1445–1451,1453–1454.
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