Practice question
An otherwise valid real estate mortgage instrument is not recorded. The original parties dispute whether it has any binding effect between them. Under Article 2125, which is correct?
- It necessarily has no effect of any kind even between them.
- The unrecorded instrument is nevertheless binding between the parties, while registration governs its constitution as the real mortgage right under the provision.
- Failure to record automatically transfers ownership to the creditor.
- The land becomes movable property.
- The mortgagor is released from the principal debt solely for that reason.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 2085,2087–2092 and2124–2130.
- https://lawphil.net/judjuris/juri2024/aug2024/gr_217368_2024.html — Ruby Shelter Builders v Tan, GR 217368, August 5 2024, main opinion: pactum commissorium distinguished from consensual later disposition.
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