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0 tracked cards Remedial Law, Legal and Judicial Ethics, with Practical Exercises
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Daniel died intestate, leaving a single real property (house and lot) valued at 2,000,000 pesos. He is survived by his wife Maria and two children, Jose and Ana; there are no other assets or liabilities. The heirs execute a deed of extrajudicial settlement and partition, stating that Maria receives a 1/2 share and Jose and Ana receive the remaining 1/2 in equal halves. Maria did not join in the execution of the deed. They publish the extrajudicial settlement in a newspaper of general circulation for three consecutive weeks and file the deed with the Registry of Deeds. A bank asserts that the extrajudicial settlement is invalid as to Maria’s share because all heirs did not join, given the land is encumbered by a mortgage in favor of the bank. Answer the following: (a) Identify the controlling doctrine and determine whether the extrajudicial settlement is valid as to Maria’s share. (b) If the extrajudicial settlement is invalid as to Maria’s share, what remedy should be pursued to validly partition the estate among all heirs? (c) What is the effect of the extrajudicial settlement on the bank’s mortgage on the land and the creditor’s rights?

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