Dear PAO,I entered into a contract to sell with a realty involving a certain house and lot. I have already paid 80 percent of the total consideration, but I discovered that the property was mortgaged to Joselito Bank. “Note that at the time PEPI mortgaged the property to the petitioner, the prevailing contract between respondents PEPI and Dee was still the Contract to Sell, as Dee was yet to fully pay the purchase price of the property. In other words, at the time of the mortgage, PEPI was still the owner of the property. x x x”Applying the above-quoted decision in your situation, a realty is still the owner of the property which is the object of the contract to sell.

Source: Manila Times December 22, 2020 15:56 UTC