Practice question
A prior encumbrancer is concerned that the judicial foreclosure sale automatically destroys its earlier lien. What does Section 3 state?
- The sale does not affect rights under prior encumbrances.
- Every prior lien is automatically void.
- Only the purchaser's preference matters.
- All liens disappear upon filing the complaint.
- The sheriff may erase any lien privately.
Legal references
- https://lawphil.net/courts/rules/rc_1-71_civil.html — Rule 68, Sections 1–4 and 6.
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