Practice question
A valid prior encumbrance exists before levy. The judgment creditor says levy automatically erases it and creates an unburdened title greater than the obligor’s interest. Which is best?
- Section12 expressly subjects the levy lien to existing liens and encumbrances
- Every levy eliminates all earlier interests
- The sheriff may privately cancel prior rights
- The creditor always acquires ownership immediately upon levy
- Only the debtor’s verbal preference controls
Legal references
- Rule39 Section12: https://lawphil.net/courts/rules/rc_1-71_civil.html
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