Professional Documents
Culture Documents
5 - Tumalad v. Vicencio
5 - Tumalad v. Vicencio
FACTS:
Vicencio and Simeon executed a chattel mortgage in favor of plaintiffs Tumalad over their house, which
was being rented by Madrigal and company. This was executed to guarantee a loan, payable in one year
with a 12% per annum interest.
The mortgage was extrajudicially foreclosed upon failure to pay the loan. The house was sold at a public
auction and the plaintiffs were the highest bidder. A corresponding certificate of sale was issued.
Thereafter, the plaintiffs filed an action for ejectment against the defendants, praying that the latter vacate
the house as they were the proper owners.
ISSUE:
W/N the chattel mortgage was null and void ab initio because only personal properties can be subject of a
chattel mortgage.
HELD:
Certain deviations have been allowed from the general doctrine that buildings are immovable property
such as when through stipulation, parties may agree to treat as personal property those by their nature
would be real property. This is partly based on the principle of estoppel wherein the principle is predicated
on statements by the owner declaring his house as chattel, a conduct that may conceivably stop him from
subsequently claiming otherwise.
In the case at bar, though there be no specific statement referring to the subject house as personal
property, yet by ceding, selling or transferring a property through chattel mortgage could only have meant
that defendant conveys the house as chattel, or at least, intended to treat the same as such, so that they
should not now be allowed to make an inconsistent stand by claiming otherwise.