Practice question
The creditor wins a properly noticed public auction on the same conditions as other bidders. The deed contains no contrary bidding restriction and no collusion or other defect is established. The debtor attacks solely the creditor’s status as purchaser. Which Section5 principle answers?
- Creditor status alone does not invalidate the purchase
- Every creditor purchase is automatically void
- Only the debtor’s relatives may bid
- A creditor must always buy through a dummy
- All creditor bids are criminal by definition
Legal references
- Act3135 Sections3–5, unchanged by Act4118 on these points: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/28/20591
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