Practice question
A real estate mortgage contains no express special power of sale inserted in or attached to it, and the owner grants none separately in the required form. The creditor relies only on an implied power because every mortgage secures payment. Which answer best follows Act 3135 section 1?
- Every mortgage automatically includes the necessary special power.
- Default cures the missing authority in every case.
- An implied enforcement purpose alone does not establish the express special power of sale required for the extrajudicial route.
- The creditor automatically owns the land without any foreclosure.
- The debt is necessarily erased because extrajudicial authority is absent.
Legal references
- https://www.lawphil.net/courts/rules/rc_1-71_civil.html — Rules of Court, Rule 68 sections 2–3.
- https://lawphil.net/judjuris/juri2024/jan2024/gr_217860_2024.html — Lontoc v Tiglao, GR 217860, January 29 2024, main opinion: Rule 68 sections 2–3.
- https://lawphil.net/judjuris/juri2017/jul2017/gr_209452_2017.html — Gotesco Properties v Solidbank, GR 209452, July 26 2017, main opinion: Act 3135 section 3 posting and publication.
- https://lawphil.net/judjuris/juri2020/sep2020/gr_226272_2020.html — Panacan Lumber v Solidbank, GR 226272, September 16 2020, main opinion: personal-notice stipulation.
- https://lawphil.net/judjuris/juri2023/aug2023/gr_228919_2023.html — Palo v Spouses Baquirquir, GR 228919, August 23 2023, main resolution: Act 3135 section 1 expressly granted special power of sale.
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