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Question
In a case involving immovable property, Atty. Mara privately signs a deed purporting to transfer Parcel P to Berto; the deed is not executed in a public instrument and is not registered. Berto does not take possession. Later, Mara privately signs another deed transferring the same parcel to Cora, also not in a public instrument or registered. A bank, Bank Zenith, holds a mortgage on Parcel P and has properly recorded its mortgage. (a) Classify whether the rule that transfers of immovable property must be effected by a public instrument in order to transfer ownership and bind third parties is mandatory or prohibitory under Art. 5 of the Civil Code. (b) Explain the effect of these private transfers on (i) the validity of Mara–Berto’s conveyance as to ownership between them, and (ii) Berto’s rights against third-party claimants such as Bank Zenith or neighboring encroachers. (c) If Berto later obtains from Mara a private deed to transfer the same parcel to Dana, what would be Dana’s rights and why, in light of the mandatory/prohibitory doctrine?