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Under NCC, Art. 782, a registered landowner dies intestate leaving heirs. The land is Torrens title and encumbered by a mortgage in favor of Bank Z. By extrajudicial settlement, the heirs transfer title to themselves. Which statement best describes the effect on ownership and the mortgage after succession?

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A. The heirs take title subject to the existing mortgage; Bank Z may foreclose on the land if the mortgage remains unpaid, and the heirs are not personally liable beyond the value of the property. E. A probate court order or letters of administration must first be obtained before the title can pass to the heirs, and only then will the mortgage attach to the heirs. C. The heirs become personally liable for the entire mortgage debt, regardless of the land's value. D. The extrajudicial settlement automatically releases the land from all encumbrances, including the mortgage.

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