Name: Charelle Mei Sy Topic: Topic: Real Real Estate Mortgage Law of Provisions Cited: Art !"#$ of the Civil Code of the Philippines Title: LE%NAR&% LE%NAR&% CAST'LL% vs SEC(R'T) SEC(R'T) *AN+ C%RP%RA C%RP%RAT'%N, etal So-rce, &ate: .R No /01//# 2" 3-ly !"/4 5acts: 'n /004, the Spo-ses Castillo o6tained a loan from respondent S*C in the amo-nt of P4$,""",""""" To sec-re said loan, they e7ec-ted a real estate mortgage on A-g-st $, /004 over eleven 8//9 parcels of land 6elonging to dierent mem6ers of the Castillo family and which are all located in San Pa6lo City They also proc-red a second loan amo-nting to P!,$"",""""", which was covered 6y a mortgage on a land in Pasay City The Spo-ses Castillo failed to settle the loan, prompting S*C S*C to proceed with with the foreclos-re foreclos-re of the properties properties S*C was then ad;-dged a d;-dged as the winning 6idder in the foreclos-re sale %n 3an-ary 2", !""!, Leonardo Castillo , /002 =e also assailed a ssailed the foreclos-re of the lots which were still registered in the name of their deceased father Spo-ses Castillo meanwhile insisted on the validity of Leonardo?s Special Power of Attorney Attorney 8SPA9 They alleged that they inc-rred inc-rred the loan not only for themselves, 6-t also for the other mem6ers of the Castillo family who needed money at that time =owever, when the loan 6ecame d-e, their relatives relatives failed to pay their respective shares s-ch that Leon was forced to -se his own money -ntil S*C had to
Leonardo asserts that his signat-re in the SPA a-thoriDing his 6rother Leon to mortgage his property was falsi, /002, the SPA is not a-tomatically invalid &efective notariDation will simply strip the doc-ment of its p-6lic character and red-ce it to a private instr-ment, 6-t nonetheless, 6inding, provided its validity is esta6lished 6y preponderance of evidence 8Art /2$# of the CC9 Leonardo was aware of the mortgage and he indeed e7ec-ted the SPA to entr-st Leon with the mortgage of his property Leon had in his possession all the titles covering the eleven 8//9 properties mortgaged, incl-ding that of Leonardo Leonardo and the rest of their relatives co-ld not have ;-st 6lindly ceded their respective TCTs to Leon, and it is liewise ridic-lo-s that Leonardo wo-ld have 6een o6livio-s to the stat-s of his property for eight 8#9 years and wo-ld only
