annotated in the TCT ordering that if the proprety is sold Rosario will be

Annotated in the tct ordering that if the proprety is

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annotated in the TCT, ordering that if the proprety is sold, Rosario will be credited with their pro-rate share in the proceed of it. b. Barrettos filed an MR, but on the same date, the Sheriff sold the property at a public auction where the Barrettos are the highest bidder 7. But the court’s order granting the vendor’s lien still stands, which the Barretto’s are contending against now. a. Barrettos hold that the 12k award to Rosario and her children cannot constitute as a basis for the vendor’s lien applied by Rosario ISSUE: WON Barrettos are right that the 12k award to Rosario cannot constitute as basis for the vendor’s lien. No, the 12k award can constitute as basis for the vendor’s lien 1. SC held that while the action was to recover the remaining obligation of Pura on the PN, the fact still remains that Rosario as guardian of her minor children was an unpaid vendor of the property and the PN was for the unpaid balance of the purchase price 2. Based on the Art. 2242 Civil Code, which enumerate the preferred claims, mortgages and liens on immovables: “unpaid price of real property sold on the immovable sold and mortgage credits recorded in the Registry of property” 3. Rosario, as an unpaid vendor of the property has a right to share pro-rata with the Barrettos for the foreclosure of the sale. 4. Moreover, contrary to the Barretto’s claim that since the unpaid vendor’s lien is not registered, it shouldn’t prejudice their registered rights over the property a. SC held that the law doesn’t distinguish between registered and unregistered vendor’s lien, which shows that ANY LIEN OF THAT KIND ENJOYS PREFERRED STATUS. 5. Barretto’s also hold that to give unrecorded vendor’s lien the same standing as registered mortgage credit would nullify the principle in land registration that prior unrecorded interest can’t prejudice persons who subsequently acquire interests over the property a. SC held that the LRA itself respects the paramount rights of alien holders on real property 6. SC also holds that it is wrong to hold that the articles on concurrence and preference of credits are available only to insolvent debtor because this would render the special laws on insolvency useless. MR (1962) 1. Barrettos filed an MR and prayed that their right as mortgagees be declared superior against the unrecorded claim of Rosario for the balance of the purchase price of her rights, title, and interest on the mortgaged property 2. They claim the following: a. The vendor’s lioen can only become effective in the event of insolvency of the vendee/buyer, which hasn’t been proved to exist b. That Rosario is not a true vendor of the foreclosed property ISSUE: WON the previous decision must be reconsidered. YES 1. SC held that their previous decision didn’t fully take into account the radical changes introduce by the CC of PH regarding the system of priorities among creditors a. FORMER CODE: if there are conflicts among creditors entitled to preference
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