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Ang Batas, Sa Simpleng Salita — your rights, finally explained.

Article 2125

RA 386 · Civil Code of the PhilippinesKey provision

ELI5— what this means for you

A real estate mortgage must be registered in the Registry of Property to bind third parties. Without registration, it is valid only between the parties.

Key point

An unregistered real estate mortgage is valid between lender and borrower — but does not bind third-party buyers of the property.

Official text — RA 386

In addition to the requisites stated in article 2085, it is indispensable, in order that a mortgage may be validly constituted, that the document in which it appears be recorded in the Registry of Property. If the instrument is not recorded, the mortgage is nevertheless binding between the parties.

The persons in whose favor the law establishes a mortgage have no other right than to demand the execution and the recording of the document in which the mortgage is formalized. (1875a)

Source: lawphil.net (RA 386 as amended)

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