This case has been cited 1 times or more.
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2011-06-13 |
DEL CASTILLO, J. |
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| The general rule that a mortgagee need not look beyond the title does not apply to banks and other financial institutions as greater care and due diligence is required of them. [48] Imbued with public interest, they "are expected to be more cautious than ordinary individuals." [49] Thus, before approving a loan, the standard practice for banks and other financial institutions is to conduct an ocular inspection of the property offered to be mortgaged and verify the genuineness of the title to determine the real owner or owners thereof. [50] Failure to do so makes them mortgagees in bad faith. | |||||