ESSENTIAL

REQUISITES

PLEDGE

REAL MORTGAGE

CHATTEL MORTGAGE

ANTICHRESIS

ART. 2085
(1) That they be constituted to secure the
fulfillment
of
a
principal
obligation;
(2) That the pledgor or mortgagor be the
absolute owner of the thing pledged or
mortgaged;
(3) That the persons constituting the
pledge
or mortgage have the free
disposal of their property, and in the
absence thereof, that they be legally
authorized for the purpose.

ART. 2085
(1) That they be constituted to secure the
fulfillment of a principal obligation;
(2) That the pledgor or mortgagor be
the absolute owner of the thing pledged or
mortgaged;
(3) That the persons constituting the
pledge or mortgage have the free
disposal of their property, and in the
absence thereof, that they be legally
authorized for the purpose.

ART. 2085
(1) That they be constituted to secure the
fulfillment
of
a
principal
obligation;
(2) That the pledgor or mortgagor be the
absolute owner of the thing pledged or
mortgaged;
(3) That the persons constituting the
pledge
or mortgage have the free
disposal of their property, and in the
absence thereof, that they be legally
authorized for the purpose.

ART. 2085
(1) That they be constituted to secure the
fulfillment of a principal obligation;
(2) That the pledgor or mortgagor be
the absolute owner of the thing pledged
or
mortgaged;
(3) That the persons constituting
the pledge or mortgage have the free
disposal of their property, and in the
absence thereof, that they be legally
authorized for the purpose.

(4) Art. 2087. It is also of the essence of

these contracts that when the principal
obligation becomes due, the things in
which the pledge or mortgage consists may
be alienated for the payment to the creditor.

(4) Art. 2087. It is also of the essence of

these contracts that when the principal
obligation becomes due, the things in
which the pledge or mortgage consists may
be alienated for the payment to the creditor.

(4) Art. 2087. It is also of the essence of

these contracts that when the principal
obligation becomes due, the things in
which the pledge or mortgage consists may
be alienated for the payment to the creditor.

Art.
2132. By the contract
of
antichresis the creditor acquires the right
to receive the fruits of an immovable of
his debtor, with the obligation to
apply them to the payment of the
interest, if owing, and thereafter to the
principal of his credit.

(1)It can cover only the fruits of an

immovable
property
but
not
the
immovable itself.
(2)Delivery of the immovable is necessary
only for the creditor to receive the fruits
and not that the contract shall be binding.
(3)Amount of the principal and interest
must be specified in writing.(Art.2134)
(4)Express agreement that the debtor will
give possession of the property to creditor
and that the latter will apply the fruits to
the interest, if any, then to the principal of
his credit.(Art. 2132)

(5) Art. 2093 That the Thing Pledge be

placed in the possession of the creditor or
of a third person by common agreement
REQUIREMENTS
(SPECIAL
REQUISITES)

Public Instrument
(Not valid against 3rd person unless a
description of the thing pledged and the date
of the pledge appear in public instrument)

1.Must appear in Public Instrument

otherwise no valid mortgage is constituted
2.It Must be recorded in the Registry of
Property. (in order to bind the third persons,
but not for the validity of the contract)
*Effect of Registration as to the Better right
of Third Parties.

Registration in the Chattel

Register.
Effects of registration:
1.Creates Real Rights
2. Adds nothing to the mortgage

PROHIBITION
AGAINST
PACTUM
COMMISSORIUM

Art. 2088. The creditor cannot appropriate

the things given by way of pledge or
mortgage, or dispose of them. Any stipulation
to the contrary is null and void.

SAME

SAME

REQUISITES:
1. There should be a pledge, mortgage
or antichresis of property.
2. There is a stipulation for an

Mortgage

SAME

automatic appropriation by the

creditor of the property in case of
nonpayment of principal obligation.
EXCEPTION:
The pledge may appropriate the thing pledge
if after the first and second auctions, the thing
is not sold. (ART.2112)
KINDS OF
OBLIGATION
THAT CAN BE
SECURED

Capability to secure all kinds of obligations.

Capability to secure all kinds of obligations.

Capability to secure all kinds of obligations.

INDIVISIBILITY

ART.2089
A pledge or mortgage is indivisible, even
though the debt may be divided among the
successors in interest of the debtor or of the

SAME

SAME

SAME

SAME

CONCEPT OF
POSSESSION

creditor.
Not in the concept of an owner, thus, the
subject property cannot be acquired through
prescriptive prescription, UNLESS, they
renounce their status as suc.

Capability to
obligations.

secure

all

kinds

RETENTION
OF OWNERSHIP

Retain ownership of the thing given as

security

SAME

SAME

PROMISE TO
CONSTITUTE

Personal right binding upon the parties and

creates no real right in the property

SAME

SAME

CRIMINAL
RESPONSIBILIT
Y

The act of the owner of a personal property

of wrongfully taking the same from its lawful
possessor, to the prejudice of the latter or
any third person is punishable.

ESTAFA is committed by a person who,

pretending to be the owner of any real
property , shall, convey, sell, encumber or
mortgage the same or knowing that the real
property is encumbered shall dispose the
same as unencumbered.

The act of the owner of a personal property

of wrongfully taking the same from its lawful
possessor, to the prejudice of the latter or
any third person is punishable.

KINDS OF
PROPERTY

Movables (all movables which are within the

commerce of men, provided they are
susceptible of possession) or document
evidencing incorporeal rights

Immovable property and alienable real

rights imposed upon immovable

Constituted over Personal property sold in

installments

Refers to real property

AS TO THE
DELIVERY

Delivery is necessary.

Not Necessary

Not necessary

Property is delivered to the creditor

of

SALE/
FORECLOSURE

Extinguishment of Pledge:
1.The same causes as all other obligations
2.Return of the thing pledge by the pledge to
the pledgor
3.Statement in writing by the pledge that he
renounces or abandons the pledge
4.Payment of debt
5. Sale of the thing pledged at public Auction
6.appropriation under Art.2112

REQUIREMENTS FOR SALE OF THE

THING PLEDGE AT PUBLIC AUCTION
1.The debt is due and unpaid
2.Sale must be at Public Auction
3.There must be notice to the pledgor and
owner stating the amount due
4.Sale must be with the intervention of a
notary public.

As to the excess
in
Foreclosure
proceeds
As
to
the
deficiency
Proceeds

EFFECT OF SALE OF THE THING

PLEDGE
1.Extinguishment of the principal obligation
WON the proceeds of the sale are equal to
the amount of the principal, interest and
expenses.
2.If the price of sale is more than the amount
due the creditor, the debtor is not entitled to
the excess unless the contrary is provided.
3.If the price of Sale is less, creditor not
entitled to deficiency.
Debtor Not entitled unless agreed upon or in
case of legal pledge
Creditor
not
notwithstanding
contrary.

entitled
to
any stipulation

recover
to the

Excess goes to Debtor

Creditor waives his right to recover the
deficiency by extrajudicial foreclosure

Creditor is entitled to recover except Art.

1484 (RECTO LAW)