Same property mortgaged and sold to different persons

CASE DIGEST: 51 Phil. 224 [ G.R. No. 26640, December 16, 1927 ] ELEUTERIO L. SANTOS, PLAINTIFF AND APPELLEE, VS. MARIA MACAPINLAC, JUDICIAL ADMINISTRATRIX OF THE ESTATE OF THE DECEASED FULGENCIO JAIME, AND EMILIO PINLAC, DEFENDANTS AND APPELLANTS.

FACTS: A mortgaged his land to B, but sold the land to C.

ISSUE: What is the effect of the transaction?

HELD: A, being the owner, could sell the property to C who after delivery became the owner, subject to B’s right to foreclose the mortgage upon non-payment of the mortgage credit. B does not have to give C anything, even if the mortgage is foreclosed, for the simple reason that B did not sell the property to him. Neither did B receive the purchase price.

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