REAL ESTATE MORTGAGE:

A Mortgage is the conveyance of an estate of pledge of property as security for

the payment of money or the performance of some other act, and conditioned
to become void upon such payment of performance. A mortgage is an interest
in land created by a written instrument providing security for the performance
of a duty or the payment of a debt.

Although a stipulation in the mortgage contract requiring the mortgagor to

secure the mortgagees consent before selling is valid and binding, in the sense
that the latter cannot be compelled while the loan is unpaid to recognize the
sale, it cannot be interpreted as absolutely forbidding the mortgagor, as owner
of the mortgaged property, from selling the same while the loan remained
unpaid - such stipulation contravenes public policy, being an undue
impediment or interference on the transmission of property.

Mortgagor - That party to a mortgage contract who gives legal title to the
mortgagee to secure the mortgage loan.

Mortgagee - A person that takes, holds or receives a mortgage.

Mortgage Lien - An encumbrance on property of mortgagor which secures

debt obligation. A mortgage lien is INSEPARABLE from the mortgaged property
because it is a right IN REM, a lien on the property. Thus, to substitute the
mortgage with a surety bond would convert such lien from right IN REM, to a
right IN PERSONAM. This conversion cannot be ordered for it would abridged
the rights of the mortgagee under the mortgage contract.

Mortgage Loan - A loan secured by a mortgage on real estate in which the

borrower is the mortgagor and the lender the mortgagee.

Accommodation party - A person who has signed the instrument as maker,

drawer, acceptor or indorser without receiving value therefor and for the
purpose of lending his name to some other person.

REQUISITES:

ART 2085. The following requisites are essential to the contracts of pledge and
mortgage:

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.

Third persons who are not parties to the principal obligation may secure the
latter by pledging or mortgaging their own property.

FORM NO. 343. Real estate mortgage with JUDICIAL AND EXTRA-
JUDICIAL FORECLOSURE:

In the absence of power of attorney, authorizing the mortgagee to sell the

property to answer for the obligations of the mortgagor, in case of default, the
mortgagee cannot have the property extra-judicially foreclosed. The above-
cited form does not contain any such provision. Hence, only judicial foreclosure
may be resorted to. He has to file a complaint for judicial foreclosure and follow
the procedure outline in Rule 68 of ROC.

DEED OF REAL ESTATE MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This Real Estate Mortgage made and executed by and between:

SALMAR SANTS, of legal age, Filipino, single, residence at 3834 F.Nazario St. Davao City, and
hereinafter referred to as the MORTGAGOR,

-and-

GRAZE DEGUZ of legal age, Filipino, single, residence at M Place Condominium 2501-A Mother
Ignacia St., and hereinafter referred to as the MORTGAGEE.

WITNESSETH: That

WHEREAS, the MORTGAGOR is the absolute and registered owner of a parcel of

land situated at Barrio of Bago Oshiro, City of Davao, Island of Mindanao, covered by Transfer
Certificate of Title No. T-285846;
WHEREAS, the MORTGAGOR is indebted to the MORTGAGEE in the principal sum
of FIVE HUNDRED THOUSAND PESOS (Php500,000.00), Philippine currency;

WHEREAS, the MORTGAGOR has agreed to secure the payment of the Note to the
MORTGAGEE by means of a good and valid mortgage upon the property herein described
below;

NOW, THEREFORE, for and in consideration of the foregoing premises and as security for
payment of the aforesaid obligation, the MORTGAGOR has transferred and conveyed, and by
these presents transfer and convey by way of MORTGAGE, unto the MORTGAGEE, his/her heirs,
successors or assigns the aforesaid parcel of land [with/without improvements] situated at Barrio of
Bago Oshiro, City of Davao, Island of Mindanao, and more particularly described as follows:

Registry of Deeds for the City of Davao Transfer Certificate of Title No. T-285846

A parcel of land [Lot 844-E-7, Psd-11-050727 being a portion of lot 844-E, Psd-11-005412,
situated in the Barrio of Bago Oshiro; City of Davao, Island of Mindanao. Bounded on the N., along
lines 5-6-7-1 by lot 844-E-12; on the E., along line 1-2 by lot 844-E-8 all of the subdivision plan; on
the S., along line 2-3 by lot 844-H, Psd-11-005412; along line 3- 4 by lot 844-E-11; on the W.,
along line 4-5 by lot E-6 all of the subdivision plan. Beginning at a point marked 1 on plan being
N. 19 deg. 33E., 1671.89 m. from BLLM No. 37, Cad. 102, Davao Cadastre. Thence. S. 04 deg.
51W., 55.40 m. to point 2; S. 83 deg. 40W., 24.00 m. to point 3; N.87 deg. 55W., 13.17 m. to point
4; N.02 deg.20E., 58.65 m. to point 5; S. 86 deg.02E., 21.50 m. to point 6; N. 02 deg.10E., 8.20
m. to point 7; S. 65 deg. 42E., 19.27 m. to. point of; beginning. and containing an area of TWO
THOUSAND TWO HUNDRED FIFTY (2,250) SQUARE METERS, more or less

It is agreed and understood that if at any time the MORTGAGOR shall fail or refuse to pay the
obligations herein secured, or default in any installment(s) and/or amortization(s) of such
indebtedness or the principal obligation when due, or to comply with any of the conditions and
stipulations herein agreed or in the separate instruments evidencing the obligations hereby secured
or shall, during the time this mortgage is in force, institute insolvency, suspension of payment or
similar proceedings, or be involuntary declared insolvent or writ of garnishment and/or attachment
be issued against any of the assets or income of the MORTGAGOR or if this mortgage cannot be
recorded in the Registry of Deeds, then all the obligations of the MORTGAGOR secured by this
Mortgage shall immediately become due and payable and defaulted and the MORTGAGEE may
immediately foreclose this mortgage judicially, or extra-judicially pursuant to Act No. 3135, as
amended. The MORTGAGEE is hereby appointed attorney-in-fact of the MORTGAGOR, with full
power and authority to take actual possession of the mortgaged property at once, and to forthwith
foreclose this mortgage judicially, or to sell the above-described properties extra-judicially in
accordance with Act No. 3135, as amended, and to take such other action(s) as he may be deem
necessary to recover the amount due; and in the event of such judicial or estra-judicial foreclosure
or other legal action, the MORTGAGEE shall be entitled to compensation for expenses, attorneys
fees and costs of collection, which is stipulated to be twenty five percent (25%) of the indebtedness
then unpaid but not less than Php50,000.00.

The condition of this mortgage is such that if the MORTGAGOR shall well and truly pay or cause to
be paid to the MORTGAGEE the obligation in the principal sum with accrued interest, according to
the terms and tenor hereof, then this mortgage shall thereby fully discharged and without further
effect; OTHERWISE, it shall remain in full force and effect and shall be enforceable in the manner
provided by law.

IN WITNESS WHEREOF, the parties have caused these presents to be signed on

25 May, 2017 at Davao City.

SALMAR SANTS GRAZE DEGUZ

__________________________ __________________________
Mortgagor Mortgagee

SIGNED IN THE PRESENCE OF:

DERCS MANABS GEL VALANTAS

____________________________ ____________________________

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
RR CRAWFORD BARANGAY I.D Davao City
AILA QUINTS VOTERS ID Davao City

known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.
Doc. No. 1234;
Page No. 123;
Book No. 12;
Series of 2017.

NOTE:

In case of mortgagors default, an application for extra-judicial foreclosure

should be filed with the Office of the sheriff.

Foreclosure of Mortgage:

Foreclosure of mortgage means the termination of all rights of the mortgagor in

the property covered by the mortgage. It denotes the procedure adopted by
the mortgagee to terminate the rights of the mortgagor on the property and
includes the sale itself. It is only when the foreclosure proceedings are
completed and the mortgaged property sold to the purchaser that all interest of
the mortgagor are cut off from the property.

ANNOTATION - The process by which a mortgagee acquires an absolute title

to the property of which he had previously been only the conditional owner, or
upon which he had previously a mere lien or encumbrance.

Foreclosure is but a necessary consequence of non-payment of mortgage

indebtedness. The creditor-mortgagee has the right to foreclose the mortgage,
sell the property, and apply the proceeds of the sale to the satisfaction of the
unpaid loan.

FORM NO. 345. Application for extra-judicial foreclosure filed with the
Office of the Sheriff due to mortgagors default.

Republic of the Philippines

OFFICE OF THE PROVINCIAL/CITY SHERIFF
Davao City

Grace Deguz,
Applicants - Mortgagee

-versus- Case No.123456

Salmar Sants,
Mortgagors

APPLICATION FOR EXTRA-JUDICIAL FORECLOSURE OF MORTGAGE

APPLICANT-MORTGAGEES, by counsel and to his Honorable Office, respectfully allege:

Mortgagee is of legal age and with residence at M Place Condominium 2501-A Mother Ignacia St.,
while mortgagor is also of legal age and with residence at 3834 F.Nazario St. Davao City.

The Mortgagor and Mortgagee executed a deed of mortgage, copy of which is attached herewith,
as part and parcel of this application, to secure payment of the loan of Php 500,000.00, Philippine
currency, extended by the Mortgagee to the Mortgagor, payable on or before December 30, 2017,
with 12% interest thereon per annum.

The loan became due and payable on 30 December 2017, and notwithstanding demands the
mortgagors failed to pay the same, such that mortgagors obligations as of the present amount to:

Principal Php 500,000.00

12% interest Php 60,000.00
Agreed damages, in case of default Php 20,000.00

Total Php 580,000.00

In addition, expenses relative to Extra-judicial foreclosure Php 100,000.00

Sheriffs fee Php 20,000.00

The attached deed of mortgage provides that in the case of default, the mortgaged properties may
be foreclosed extra-judicially, to wit:

However, if the Mortgagor fails to pay his principal obligations on due date and the matter is
referred to counsel for enforcement, the Mortgagor agrees to pay attorneys fees of Php 250,000.00
and other expenses related thereto. In this connection, effective upon the breach of any condition
or stipulation of the mortgage or upon the cancellation of this mortgage for causes attributable to
the Mortgagor, the Mortgagee or his lawful representative or the sheriff is hereby appointed
attorney-in-fact of the Mortgagor with full powers and authority, take actual possession of the
mortgaged properties, without the necessity of any judicial order or any other permission or power,
to remove, sell, or dispose of the mortgaged properties or any improvements attached thereto,
belonging to Mortgagor; to execute bills of sale or agreement that may be deemed convenient. The
payment of any expenses advanced by the Mortgagee in connection with the purposes herein
indicated is hereby secured by this mortgage. The mortgage i hereby authorized to apply the
proceeds of the sale and disposal of the properties mortgaged to pay taxes, assessments, and all
incidental expenses and obligations, including attorneys fees in the amount stipulated, and to pay
the original obligations and interest thereon. The Mortgagor hereby ratifies all that the Mortgagee
or his representative or the sheriff may do and execute under this power of attorney. This power
shall remain in full force and effect during the lifetime of this mortgage.

WHEREFORE, it is respectfully prayed that the sheriff sell the mortgaged properties in accordance
with the law and in compliance with its requirements.

VERIFICATION AND CERTIFICATION OF NON-FORUM SHOPPING

I, Grace Deguz, of legal age, after having been duly sworn in accordance with law, depose and
state that:

1. I am the applicant in the above-stated case;

2. I caused the preparation of the foregoing applicant;
3. I have read the contents thereof and the facts stated therein are true and correct of my personal
knowledge and/or on the basis of copies of documents and records in my possession;
4. I have not commenced any other action or proceeding involving the same issues in the Supreme
Court, the Court of Appeals, or any other tribunal or agency;
5. To the best of my knowledge and belief, no such action or proceeding is pending in the Supreme
Court, the Court of Appeals, or any other tribunal or agency;
6. If I should thereafter learn that a similar action or proceeding has been filed or is pending before
the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to report that
fact within five (5) days therefrom to this Honorable Court.

GRACE DE GUZ
Affiant

SUBSCRIBED AND SWORN to before me this 25th day of May 2017 at Davao City affiant
exhibiting to me his SSS ID: 123456789.

Doc. No. ; 1234

Page No. ; 123
Book No. ; 12
Series of 2017.

Rules governing extra-judicial foreclosures:

Extra-judicial foreclosure of mortgage is governed by Act No. 3135, as

amended and undertaken by the sheriff pursuant to the special power of
attorney inserted in the mortgage document. The guiding principles in extra-
judicial foreclosure are;

1. The statutory provisions governing publication and notice of mortgage

foreclosure sale must be strictly complied with, and even the slightest
deviations therein will invalidate the sale.
2. In extra-judicial foreclosure of mortgage, the law requires that there be
posting of the notice of sale in 3 public places and the publication of that
notice in newspaper of general circulation. Personal notice to the mortgagor
is not necessary. Proof of posting shall be the affidavit of the sheriff who
conducted the auction sale.
3. The general rule is that a bidder in an auction sale for the foreclosure of
mortgage must pay in cash to the sheriff. The rule does not apply where the
bidder is the mortgage creditor who bids for the total amount of the debt for
it would serve no purpose for the sheriff to go through the ceremony of
receiving the money and paying it back to the creditor.
4. The purchaser in an extra-judicial foreclosure sale has a right to the
possession of the property even during the one-year period of redemption
provided he files and indemnity bond. After the lapse of the said period with
no redemption having been made, that right becomes absolute and may be
demanded by the buyer even without the posting of bond. Possession may
then be obtained under a writ which may be applied for ex parte pursuant
to Section 7 of Act No. 3135, as amended.
5. With respect to foreclosures by banks and other financial institutions, Sec.
47 of R.A No. 8791.
6. Right of redemption exists in extra-judicial foreclosure.

FORM NO. 346. Release or discharge of mortgage.

DISCHARGE OF REAL ESTATE MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

I, GRAZE DEGUZ, of legal age, single, with residence and postal address at # 65
29th Avenue, East Rembo, Makati City, having received the full consideration of the
sum of FIVE HUNDRED THOUSAND PESPS (P500,000.00), to me in hand paid
by (SALMAR SANTS), of legal age, single, with residence and postal address at
3834 F.Nazario St. Davao City, hereby by these presents forever RELEASE and
DISCHARGE that certain mortgage of real estate with all the improvements
thereon, covered by Transfer Certificate Title 285846 of the Registry of Deeds of
Davao City which real estate mortgage was executed on 25 May, 2017, by the said
Mortgagor before Notary Public ATTY. JOKS BERNAL, and bearing Notarial
Registration Number 1234, Page 123, Book 12, Series of 2017 of his notarial
register.

It is also further provided that aside from the discharged of the real estate
mortgage, the mortgagee shall by this instrument voluntarily vacate the premises
that he is presently occupying covered by the said TCT-No. 285846.

IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of MAY,
2017, in Davao City, Philippines.

With conformity: GRAZE DEGUZ

Mortgagee

Signed in the presence of:

DERIC MANABS MARIVIC MELANS

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
DERIC MANABS BARANGAY I.D Davao City

known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.

Doc. No. 1234;

Page No. 123;
Book No. 12;
Series of 2017.

FORM NO. 348. Assignment of real estate mortgage.

DEED OF ASSIGNMENT AND TRANSFER OF RIGHTS

KNOW ALL MEN BY THIS PRESENTS:

This deed, made and entered into this 25th day of May, 2017 at the City of Davao, by and
between:

SALMAR SANTS, Filipino Citizen, of legal age, single with residence and postal address at 13834
F.Nazario St. Davao City, hereinafter referred to as the "ASSIGNOR"

-and-

GRACE DEGUZ, Filipino Citizen, of legal age, single with residence and postal address at 12501-
A Mother Ignacia St. Davao City, hereinafter referred to as the "ASSIGNEE".

WITNESSETH that -

WHEREAS the ASSIGNOR is the buyer situated in the Barrio of Bago Oshiro; City of Davao,
Island of Mindanao, covered by Certificate of Title No. T-285846 of the register of Deeds of Davao
City, registered in the name of the Bank of the Philippine Islands.;

WHEREAS, the ASSIGNOR has offered to to assign all his rights, title and interest over the
above unit, as referred in said Contract to Sell and the ASSIGNEE hereby accepts the assignment
in accordance with the terms herein set forth;

NOW, THEREFORE, for and in consideration of the foregoing premises and the sum of FIVE
HUNDRED THOUSAND PESOS (5000,000.00), PHILIPPINE CURRENCY, which the ASSIGNOR
hereby acknowledged to have received from the ASSIGNEE, the ASSIGNOR hereby assigns,
transfers and conveys unto the ASSIGNEE, all his rights, title and interest to the aforementioned
property and and appurtenant interest in the said real property pursuant to this Agreement and the
ASSIGNEE by these presents hereby accepts the assignment and agrees to be bound by the
terms and conditions of the Contract to Sell and the rules and regulations, and restrictions
pertaining to the said unit.
IN WITNESS WHEREOF, the parties have hereunto set their hands on the date and place first
above written.

SALMAR SANTS GRACE DEGUZ

ASSIGNOR ASSIGNEE

Signed in the presence of:

DERIC MANBS MARIVIC MELANO

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
DERIC MANABS BARANGAY I.D Davao City

known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.

Doc. No. 1234;

Page No. 123;
Book No. 12;
Series of 2017.

Dacion en pago is the delivery and transmission of ownership of a thing by the

debtor to the creditor as an accepted equivalent of performance of obligation,
thus it is a special mode of payment where the debtor offers anotehr thing to
the creditor, who accepts it as equivalent of payment of an outstanding debt,
which undertaking, in one sense, amounts to a sale. It is in essence a form of
sale, which basically involves a disposition of a property.

Lease of Realty:

FORM NO. 347. Lease of realty.

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of Davao, this 25th day May of,
2017, by and between:

SALMAR SANTS, of legal age, single, Filipino, and with residence and postal address
at 13834 F.Nazario St. Davao City, hereinafter referred to as the LESSOR.

-AND-

GRACE DEGUZ, Filipino and with residence and postal address at 12501-A Mother Ignacia
St. Davao City, hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated
at 12345 Barrio of Bago Oshiro; City of Davao, Island of Mindanao;

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is
willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto
the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to
the following:

TERMS AND CONDITIONS

1. PURPOSES: That premises hereby leased shall be used exclusively by the LESSEE for
residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that
if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind
this contract without prejudice to its other rights under the law.

2. TERM: This term of lease is for ONE (1) YEAR. from 25 May 2017 to 25 May 2018 inclusive.
Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually
agreed upon by both parties, written notice of intention to renew the lease shall be served to the
LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

3. RENTAL RATE: The monthly rental rate for the leased premises shall be in PESOS: ONE
HUNDRED THOUSAND (P 100,000.00), Philippine Currency. All rental payments shall be payable
to the LESSOR.

4. DEPOSIT: That the LESSEE shall deposit to the LESSOR upon signing of this contract and
prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of PESOS:
THREE HUNDRED THOUSAND (P 300,000.00), Philippine Currency. wherein the two (2) months
deposit shall be applied as rent for the 11th and 12th months and the remaining one (1) month
deposit shall answer partially for damages and any other obligations, for utilities such as Water,
Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of the provision
of this contract.

5. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as
when the checks are dishonored, the LESSOR at its option may terminate this contract and eject
the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of
payment for One (1) month and may forfeit whatever rental deposit or advances have been given
by the LESSEE.

6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow or permit the leased
premises to be occupied in whole or in part by any person, form or corporation, neither shall the
LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or
therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written
approval.

7. PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric, cable TV, water, Internet,
association dues and other public services and utilities during the duration of the lease.

8. FORCE MAJEURE: If whole or any part of the leased premises shall be destroyed or damaged
by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of
acts of God, as to render the leased premises during the term substantially unfit for use and
occupation of the LESSEE, then this lease contract may be terminated without compensation by
the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due
notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or
its representative at any reasonable hour to examine the same or make repairs therein or for the
operation and maintenance of the building or to exhibit the leased premises to prospective
LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as
herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all
corresponding keys and in as good and tenable condition as the same is now, ordinary wear and
tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-
compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the
latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent
therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have
complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to
leave the premises after the expiration of this Contract of Lease or termination for any reason
whatsoever.

11. JUDICIAL RELIEF: Should any one of the parties herein be compelled to seek judicial relief
against the other, the losing party shall pay an amount of One Hundred (100) % of the amount
clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in
addition to other cost and damages which the said party may be entitled to under the law.

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-
in-interest and assigns.

IN WITNESS WHEREOF, parties herein affixed their signatures on the date and place above
written.

SALMAR SANTS GRACE DEGUZ

LESSOR LESSEE

Signed in the presence of:

DERIC MANABS MARIVIC MELANO

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
DERIC MANABS BARANGAY I.D Davao City
known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.

Doc. No. 1234;

Page No. 123;
Book No. 12;
Series of 2017.

TRUST:

The right, enforceable solely in equity, to the beneficial enjoyment of property

to which another person holds the legal title; a property interest held by one
person (the trustee) at the request of another (the settlor) for the benefit of a
third party (the beneficiary).

FORM NO. 349. Trust on realty.

CONSTITUTION AND AGREEMENT ON TRUST

KNOW ALL MEN BY THESES PRESENTS:

This Constitution and Agreement on trust of real property, made and entered into -

SALMAR SANTS, of legal age, Filipino, married to WILFREDO SANTS and with residence at
13834 F.Nazario St. Davao City, Philippines, hereafter referred to as Trustor; and

-and-

GRACE DEGUZ, of legal age, Filipino and with residence at 12501-A Mother Ignacia St. Davao
City, Philippines, hereinafter referred to as Trustees,

-in favor of-

KIRAY SANTS, and DUDUNG SANTS, all minors, aged 5 and 10 years old as of the date of this
Instrument, Filipino citizen, with addresses at 13834 F.Nazario St. Davao City, whose parents
Spouses SALMAR SANTS and WILFREDO SANTS, are their natural guardians, hereinafter
referred to as Beneficiaries,

WITNESSETH:

WHEREAS, the Trustor is the absolute owners of a parcel of land, with TCT No. T-285846 of the
Registry of Davao City and which is more particularly described as follows:

A parcel of land [Lot 844-E-7, Psd-11-050727 being a portion of lot 844-E, Psd-11-005412,
situated in the Barrio of Bago Oshiro; City of Davao, Island of Mindanao. Bounded on the N., along
lines 5-6-7-1 by lot 844-E-12; on the E., along line 1-2 by lot 844-E-8 all of the subdivision plan; on
the S., along line 2-3 by lot 844-H, Psd-11-005412; along line 3- 4 by lot 844-E-11; on the W.,
along line 4-5 by lot E-6 all of the subdivision plan. Beginning at a point marked 1 on plan being
N. 19 deg. 33E., 1671.89 m. from BLLM No. 37, Cad. 102, Davao Cadastre. Thence. S. 04 deg.
51W., 55.40 m. to point 2; S. 83 deg. 40W., 24.00 m. to point 3; N.87 deg. 55W., 13.17 m. to point
4; N.02 deg.20E., 58.65 m. to point 5; S. 86 deg.02E., 21.50 m. to point 6; N. 02 deg.10E., 8.20
m. to point 7; S. 65 deg. 42E., 19.27 m. to. point of; beginning. and containing an area of TWO
THOUSAND TWO HUNDRED FIFTY (2,250) SQUARE METERS, more or less.

WHEREAS, the Trustor is desirous of constituting and creating a trust for the Beneficiaries, and the
Trustee is willing to administer the trust and to accept the responsibilities attendant thereto, for the
benefit of the Beneficiaries.

NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants
and agreements of the parties, the parties hereof have agreed as follows:

1. The Trustor hereby constitutes and creates a trust for the benefits of the Beneficiaries, and for
this purpose, the Trustor hereby conveys and transfers unto theBeneficiaries, as presented by
the Trustee or in case of his failure or inability to render the obligations thereof, the substitute
Trustee or Trustees, as herein designated, all his rights, participation and ownership of the
properties described in the First Whereas Clause, above, for the benefits of the Beneficiaries,
and the properties may then be registered in the names of the Beneficiaries, as represented by
the Trustee.
2. The Trustee hereby accepts the trust and responsibilities of thereof.
3. Sixty percent (60%) of the total yearly rental income of the properties, particularly the building
therein built shall be used for the education, health and physical needs of the Beneficiaries, unti
all of the Beneficiaries shall have finished college education, to be apportioned among them as
their needs require; and the balance of forty percent (40%) shall be spent for taxes, dues,
permits, licenses, etc., expenses in the administration of the trust and trust properties, and
compensation of the Trustee which shall not be more than P40,000.00 a month.
4. The Trustee or substitute Trustee shall not sell, mortgage, or convey or in any way dispose of
the trust properties, as they are reserved for the Beneficiaries. However, the Trustee may lease
the building or any part thereof at current or reasonable rental, as the Trustee may see fit, for
the purposes of the trust.
5. In the event that the Trustee fails at any time or in case of his death or incapacity to discharge
the duties of the trust or in the event the Trustee is removed for violation of the trust or of this
contract, he will succeeded by any of the following in this order:

The father of the beneficiaries; or

The mother of the beneficiaries; or
Anyone of the uncles of the beneficiaries of the paternal side, starting from the oldest; or
Anyone on the uncles of the beneficiaries of the maternal side, starting from the oldest; or
In case no one is qualified, any person who may be appointed by the court upon proper application
therefor.

6. This trust agreement shall terminate upon the accomplishment of the purposes of the trust or in
no case shall last until the youngest beneficiary shall have attained 30 years of age, and in such
event, the absolute ownership and possession of the trust properties shall be automatically vested
in favor of the Beneficiaries, as co-owners thereof, who shall then be entitled to secure a separate
certificate of title over the properties in their names, and who shall then jointly manage and
administer the properties, as co-owners, and the neat income thereof shall be equally divided
among them. This arrangement shall continue for a period of ten (10) years from the time they
become co-owners of the properties.

7. This trust is created principally for the education of the beneficiaries, and each of them is
expected to be studios, diligent, conscientious and devoted to their studies. Any one of them who
fails in three (3) subjects in college in one year or who drops out of study shall automatically lose
his benefits as beneficiary of the trust, and the trust will then continue with respect to the other
beneficiaries. Should all of them fail in their obligations as beneficiaries during the existence of the
trust, this trust agreement shall automatically terminate and the trust properties shall revert to the
Trustor as absolute owner thereof.

IN WITNESS THEREOF, the parties have set their hands this 25th day of May 2017 at Davao City,
Philippines.
SALMAR SANTS GRACE DEGUZ
Trustor Trustee

WITH MY CONFORMITY;

WILFREDO SANTS
Wife of Trustor

SIGNED IN THE PRESENCE OF:

DERIC MANABS MARIVIC MELANO

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
DERIC MANABS BARANGAY I.D Davao City

known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.
Doc. No. 1234;
Page No. 123;
Book No. 12;
Series of 2017.

FORM NO. 350. Extra-judicial settlement of realty with sale.

EXTRA-JUDICIAL SETTLEMENT WITH SALE

KNOW ALL MEN BY THESES PRESENTS:

This Deed of Extra-judicial Settlement of estate with sale, made and entered into by and among -

SALMAR SANTS, legal age, Filipino citizen and with residence at 13834 F.Nazario St. Davao City,
Philippines, herein after referred to as Heir and Seller.

-and-

GRACE DEGUZ, legal age, Filipino citizen and with residence at 12501-A Mother Ignacia St.
Davao City, Philippines, hereinafter referred to as Buyer.

WITNESSETH;

WHEREAS, the Heir is the children and the only heir of LAVIGNA SANTS, who died on 25 May
2009 at Davao City, Philippines, without any will and without any debt, leaving as his only estate a
parcel of land with an area of 500 sq.m, located in Davao City, which parcel of land is more
particularly described as follows:

A parcel of land [Lot 844-E-7, Psd-11-050727 being a portion of lot 844-E, Psd-11-005412,
situated in the Barrio of Bago Oshiro; City of Davao, Island of Mindanao. Bounded on the N., along
lines 5-6-7-1 by lot 844-E-12; on the E., along line 1-2 by lot 844-E-8 all of the subdivision plan; on
the S., along line 2-3 by lot 844-H, Psd-11-005412; along line 3- 4 by lot 844-E-11; on the W.,
along line 4-5 by lot E-6 all of the subdivision plan. Beginning at a point marked 1 on plan being
N. 19 deg. 33E., 1671.89 m. from BLLM No. 37, Cad. 102, Davao Cadastre. Thence. S. 04 deg.
51W., 55.40 m. to point 2; S. 83 deg. 40W., 24.00 m. to point 3; N.87 deg. 55W., 13.17 m. to point
4; N.02 deg.20E., 58.65 m. to point 5; S. 86 deg.02E., 21.50 m. to point 6; N. 02 deg.10E., 8.20
m. to point 7; S. 65 deg. 42E., 19.27 m. to. point of; beginning. and containing an area of TWO
THOUSAND TWO HUNDRED FIFTY (2,250) SQUARE METERS, more or less.

WHEREAS, the Buyer is willing to buy the above-described parcel of land for a total consideration
of Php 1,000,000.00.

NOW, THEREFORE, for and inconsideration of the above premises, the parties hereof agree as
follows:

The Heir hereby settle the estate of her Mother, the deceased LAVIGNA SANTS, extra-judicially,
and adjudicated said parcel of land unto themselves, as the only heirs of said decedent.

The Heir, for and in consideration of the amount of Php 1,000,000.00, receipt in full is hereby
acknowledged from the Buyer, hereby sell, transfer and convey by way of absolute sale said
property described in the First Whereas Clause, above, unto and in favor of Buyer GRACE
DEGUZ, of legal age, Filipino citizen, her heirs, successor or assigns.

The Buyer shall take all legal steps to transfer the property in his name, as required by law, all at
his own expenses.

IN WITNESS WHEREOF, we have set our hands thi 25th day of May, 2017 at Davao City,
Philippines.

GRACE DEGUZ
Buyer

SALMAR SANTS
As Heir and Seller

SIGNED IN THE PRESENCE OF:

 DERIC MANABS MARIVIC MELANO

ACKNOWLEDGMENT

BEFORE ME, this day of 25 May 2017 in the City of Davao, Philippines, personally came and
appeared:

Name Competent Evidence of Identity Place Issued/Validity Period

MARIVIC MELANO SSS I.D Davao City
DERIC MANABS BARANGAY I.D Davao City

known to me and to me known to be the same persons who executed the foregoing Real
Estate Mortgage and they acknowledged to me that the same is their free and voluntary act
and deed.

WITNESS MY HAND AND SEAL, at the date and place first above written.

Doc. No. 1234;

Page No. 123;
Book No. 12;
Series of 2017.