Professional Documents
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Guanzon v. Argel
Guanzon v. Argel
GUANZON vs. ARGEL and Dumaraogs While paragraph 2 is not as clear as it could
have been, nevertheless, its purport is plain
Facts that should the respondents Dumaraog fail to
pay the P1, 500.00 within the specified 20
days, petitioner Guanzon would be entitled to
Dumaraogs filed an action against have execution issue to collect the said
petitioner Guanzon for the redemption amount from the properties of the respondents
of a parcel of rice land which their Dumaraog whereupon the deed of
mother, Ines Flores, had mortgaged to reconveyance would be executed by
defendant. They prayed that the Guanzon. Should respondents Dumaraog
purported pacto de retro sale be deposit the money, but Guanzon refused to
declared a mortgage and that Guanzon reconvey, the reconveyance could then be
be ordered to execute an instrument of made by the Provincial Sheriff.
reconveyance after payment.
Guanzon denied the material
In no way can the judgment at bar be
allegations; alleged that the document construed to mean that should the Dumaraogs
executed by Flores was in fact a pacto fail to pay the money within the specified
de retro sale; that her title as vendee period then the party would be conveyed by
had been consolidated. the Sheriff to Guanzon. Any interpretation in
that sense would contradict the declaration
The lower court declared that the made in the same judgment that the contract
document involved to be one of between the parties was in fact a mortgage
equitable mortgage, and ordered and not a pacto de retro sale. The only right of
Guanzon to execute an instrument of a mortgagee in case of non-payment of a debt
reconveyance in favor of Dumaraog secured by mortgage would be to foreclose the
upon payment by the latter within 20 mortgage and have the encumbered property
days from the finality of the decision, sold to satisfy the outstanding indebtedness.
The mortgagor's default does not operate to
vest in the mortgagee the ownership of the
Guanzon, alleging the Dumarogs failure
encumbered property, for any such effect is
to pay within said time, filed a motion
against public policy, as enunciated by the Civil
for execution wherein she prayed that
Code.
the Provincial Sheriff be ordered to
execute the necessary conveyance of
the property in question in her favor
and that she be placed in the
possession thereof.
HOLDING