Juan mortgaged the cultivated half of the hacienda as security of the loan Juan

Juan mortgaged the cultivated half of the hacienda as

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b. Juan mortgaged the cultivated half of the hacienda as security of the loan. Juan defaulted but the land can’t be sold at a public auction despite being auctioned off 3 times already and its price reduced. Thus, Antonio took possession of the property c. From then on, Antonio has been receiving the products of the land as to collect his credits and interest. He did this with the express consent of the Juan and his heirs. d. Antonio then sold the 2/3 part of the land to Alberto. Guadalupe, the wife of Antonio also donated her rights and interest in the hacienda to Alberto (with the conditiojn that Alberot should deliver to his brothers and sisters 1/8 part of the donation. e. Alberto claims that through this donation and sale, he became the owner of the land 8. Alberto also claims that he get ownership over of the land through prescription ISSUE: WON Alberto acquired ownership over the land – NO, only right he got was to collect credits from the fruits of the hacienda, AKA antichresis Antichresis and not transfer of ownership 1. SC held that from the documentary evidence and oral evidence that is on record, nowhere did it show that the debtors and the heirs delivered to Antonio, the creditor, the whole hacienda. Thus, SC held that it may be safely asserted that the debtors limited themselves to give the creditor the right to collect his credit from the fruits of the hacienda and only conferred to him POSSESSION and not OWNERSHIP. SC assumed that it was antichresis because there was no evidence to prove that ownership was transferred. a. It was alleged in the facts that after the failure of selling the property, Antonio just took possession of the property with the consent of the owner. There really was no transfer of ownership 2. Based on this, the articles on antichresis can be applied. Here, the creditor doesn’t acquire ownership over the land possessed. The creditor can withhold the debtor from taking possession over the land until the debtor makes full payment of the entire obligation. 3. In case there is insolvency on the part of the debtor, the creditor can ask for the sale of the real property which he possesses by reason of antichresis. (since articles on mortgage and foreclosure can apply in antichresis) Leonardo’s usurpation is wrong 4. Since Alberto has the right over the possession of the land, it was wrong for Leonardo to usurp the land before the obligation to Alberto/Antonio has been paid. 5. Moreover, even if Alberto has no title of ownership over the land, his complaint praying for the restitution of the portion usurped is proper since he is in lawful possession over the portion a. What he filed was not accion reivindicatoria (recovery of possession + ownership) but only accion publiciana (recovery of possession), thus Alberto is in the right.
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