What is covered under the real estate mortgage law?
Section 1 of Act No. 3135 – AN ACT TO REGULATE
THE SALE OF PROPERTY UNDER SPECIAL POWERS INSERTED IN OR ANNEXED TO REAL-ESTATE
MORTGAGES, provides:
“When a sale is made
under a special power inserted in or attached to any real-estate mortgage
hereafter made as security for the payment of money or the fulfillment of any
other obligation, the provisions of the following election shall govern as to
the manner in which the sale and redemption shall be effected, whether or not
provision for the same is made in the power.”
This covers sales with a special authority annexed to a mortgage
involving real estate as a security for the payment or obligation. Notwithstanding the presence or absence of
any provision for sale and redemption, the law shall be controlling as to how
the sale and redemption shall be made or effected. The intendment of the law is the regulation
of the sale made extra-judicially and how the property may be redeemed in
instances wherein the mortgagee was vested special or expressed authority for such.
