G.R. No. 38925 ; November 7, 1933
YAP ANTON, plaintiff-appellee, vs. ADELAIDA CABULONG, administratrix of the estate of the deceased Santiago Fian, defendant-appellant.

FACTS

On March 10, 1922, Santiago Fian executed a document in favor of Yap Anton acknowledging a debt of P33,000 and mortgaging ten parcels of land as security. The document was registered. After Fian failed to pay and died, Yap Anton filed a foreclosure action against his estate. The Court of First Instance of Leyte ruled in favor of foreclosure. The administratrix of Fian’s estate appealed, arguing the instrument was not a valid mortgage contract.

ISSUE

Whether the instrument executed by Santiago Fian is a valid and enforceable contract of mortgage between the parties.

RULING

Yes. The Supreme Court affirmed the lower court’s judgment. First, the appellant failed to properly except to the admission of the mortgage document at trial as required by the Code of Civil Procedure. Second, under the applicable provision of the Administrative Code (as amended), a mortgage instrument is valid between the parties even if not registered. Here, the mortgage was registered, and the action involved only the original parties. Any defect in the description of the property did not invalidate the mortgage as between them.

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