Practice question
Lina owns land and has legal capacity and free disposal. She mortgages it to secure another person’s valid loan. Is the mortgage necessarily invalid solely because she is not the borrower?
- No, Article 2085 allows a third person to mortgage owned property to secure another’s principal obligation.
- Yes, only borrowers can ever mortgage land.
- Yes, every third-party security is a donation of ownership.
- Yes, the creditor must first own the land.
- No, because ownership is irrelevant to every mortgage.
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.
Answer this question in flashcards to review your response and continue practicing.