Practice question
A lender proves an equitable mortgage but files only a demand for possession as absolute owner. No foreclosure or independent transfer is established. The lender argues that the apparent deed and default themselves supply perfect title. Under the MAIN equitable-mortgage authorities, which is correct?
- The lender cannot replace foreclosure with the disproved claim of absolute ownership
- Default automatically validates the apparent sale as absolute
- An equitable mortgage always awards immediate title to the lender
- The debtor’s payment duty means the lender already owns the land
- The deed’s typography controls despite the established security purpose
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1602–1604,2088.
- Lambo GR269085 February2026 MAIN: https://lawphil.net/judjuris/juri2026/feb2026/gr_269085_2026.html Principal debt and equitable mortgage.
- Spouses Lontoc GR217860 January29,2024 MAIN: https://lawphil.net/judjuris/juri2024/jan2024/gr_217860_2024.html Scope of relief and foreclosure distinction.
- GR244422 July2022 MAIN: https://lawphil.net/judjuris/juri2022/jul2022/gr_244422_2022.html Mortgagee remedy.
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