Question

IV. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

B. Ownership (Civil Code, arts. 427-439)

Question:

Ms. Rodriguez owns a parcel of land with a residential house built on it. Due to financial difficulties, she decided to mortgage her property to Mr. Santos, a wealthy businessman. The mortgage contract stipulated that Ms. Rodriguez would transfer the ownership of the property to Mr. Santos in case of default. However, Ms. Rodriguez managed to settle her debts and fulfill her obligations, thus avoiding default. Despite this, Mr. Santos insists that he is now the owner of the property. On the other hand, Ms. Rodriguez firmly believes that since she was able to settle her obligations, the ownership of the property remains with her.

Based on the given scenario, discuss the following:

1. What is the nature of the mortgage contract entered into by Ms. Rodriguez and Mr. Santos? Explain. (5 points)
2. Does the settlement of Ms. Rodriguez's debts and obligations affect the transfer of ownership under the mortgage contract? Why or why not? (10 points)
3. What are the remedies available to Ms. Rodriguez to assert her ownership rights over the property? Explain. (5 points)