Thursday, April 24, 2014

Coverage of Real Estate Mortgage Law

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.