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HEIRS OF GREGORIO LOPEZ v. DEVELOPMENT BANK OF PHILIPPINES

This case has been cited 4 times or more.

	GR No. 205271 2015-09-02	LAND BANK OF PHILIPPINES v. BELLE CORPORATION PERALTA, J.
When the purchaser or the mortgagee is a bank, the rule on innocent purchasers or mortgagees for value is applied more strictly.[48] Being in the business of extending loans secured by real estate mortgage, banks are presumed to be familiar with the rules on land registration.[49] Since the banking business is impressed with public interest, they are expected to be more cautious, to exercise a higher degree of diligence, care and prudence, than private individuals in their dealings, even those involving registered lands.[50] Banks may not simply rely on the face of the certificate of title.[51] Hence, they cannot assume that, simply because the title offered as security is on its face free of any encumbrances or lien, they are relieved of the responsibility of taking further steps to verify the title and inspect the properties to be mortgaged.[52] As expected, the ascertainment of the status or condition of a property offered to it as security for a loan must be a standard and indispensable part of a bank's operations.[53] It is of judicial notice that the standard practice for banks before approving a loan is to send its representatives to the property offered as collateral to assess its actual condition, verify the genuineness of the title, and investigate who is/are its real owner/s and actual possessors.[54]
	GR No. 205271 2015-09-02	LAND BANK OF PHILIPPINES v. BELLE CORPORATION PERALTA, J.
When the purchaser or the mortgagee is a bank, the rule on innocent purchasers or mortgagees for value is applied more strictly.[48] Being in the business of extending loans secured by real estate mortgage, banks are presumed to be familiar with the rules on land registration.[49] Since the banking business is impressed with public interest, they are expected to be more cautious, to exercise a higher degree of diligence, care and prudence, than private individuals in their dealings, even those involving registered lands.[50] Banks may not simply rely on the face of the certificate of title.[51] Hence, they cannot assume that, simply because the title offered as security is on its face free of any encumbrances or lien, they are relieved of the responsibility of taking further steps to verify the title and inspect the properties to be mortgaged.[52] As expected, the ascertainment of the status or condition of a property offered to it as security for a loan must be a standard and indispensable part of a bank's operations.[53] It is of judicial notice that the standard practice for banks before approving a loan is to send its representatives to the property offered as collateral to assess its actual condition, verify the genuineness of the title, and investigate who is/are its real owner/s and actual possessors.[54]
	GR No. 205271 2015-09-02	LAND BANK OF PHILIPPINES v. BELLE CORPORATION PERALTA, J.
When the purchaser or the mortgagee is a bank, the rule on innocent purchasers or mortgagees for value is applied more strictly.[48] Being in the business of extending loans secured by real estate mortgage, banks are presumed to be familiar with the rules on land registration.[49] Since the banking business is impressed with public interest, they are expected to be more cautious, to exercise a higher degree of diligence, care and prudence, than private individuals in their dealings, even those involving registered lands.[50] Banks may not simply rely on the face of the certificate of title.[51] Hence, they cannot assume that, simply because the title offered as security is on its face free of any encumbrances or lien, they are relieved of the responsibility of taking further steps to verify the title and inspect the properties to be mortgaged.[52] As expected, the ascertainment of the status or condition of a property offered to it as security for a loan must be a standard and indispensable part of a bank's operations.[53] It is of judicial notice that the standard practice for banks before approving a loan is to send its representatives to the property offered as collateral to assess its actual condition, verify the genuineness of the title, and investigate who is/are its real owner/s and actual possessors.[54]
	GR No. 213286 2015-08-26	MAMERTA LOPEZ CLAUDIO v. SPS. FEDERICO MENDOZA, J.
The doctrine of mortgagee in good faith only applies when the mortgagor has already obtained a certificate of title in his or her name at the time of the mortgage.[20] Accordingly, an innocent mortgagee for value is one who entered into a mortgage contract with a mortgagor bearing a certificate of title in his name over the mortgaged property. Such was not the situation of Spouses Saraza. They cannot claim the protection accorded by law to innocent mortgagees for value considering that there was no certificate of title yet in the name of Florentino to rely on when the mortgaged contract was executed.