Flashcards Studio

(a)Identify the central doctrine governing Voluntary Dealings under the Land Registration Decree (PD 1529) and state when title passes to the transferee. (b)Explain how a voluntary dealing affects encumbrances, such as a mortgage, and what happens to those encumbrances after registration. (c)Given the following facts, apply the doctrine: M is the registered owner of Lot Delta under TCT No. 98765. M executes a Deed of Absolute Sale in favor of N, stating that the sale is "subject to" the mortgage in favor of Bank X annotated on M's title, and that N will assume the mortgage only if Bank X approves; The deed is presented for voluntary registration under PD 1529; The Registry of Deeds registers the deed and issues a new certificate of title in N's name. Six months later, Bank X forecloses on the mortgage. What is the effect on N's ownership and on Bank X's rights, and what steps could N take to protect his interest?