- Petitioner
- Spouses Benito Baysa
- Respondent
- Spouses Fidel Plantilla
- Citation
- G.R. No. 159271
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Bersamin, J.
- Decided
- July 13, 2015
Summary
The Supreme Court invalidated an extrajudicial foreclosure of real estate mortgage for lack of the special power to sell required by Act No. 3135. Spouses Baysa mortgaged their Quezon City property to secure a P2.3M loan with 2.5% monthly interest from spouses Plantilla. Upon default, the Plantillas foreclosed extrajudicially, but the mortgage deed contained only consent to foreclosure, not the required special power to sell. The RTC and CA upheld the foreclosure's validity, reasoning that consent implied the power to sell. The Supreme Court reversed, emphasizing that Act No. 3135 explicitly requires the special power to sell either inserted in or attached to the mortgage deed. The Court declared that mere consent to extrajudicial foreclosure cannot substitute for the statutory requirement of special power of attorney to sell, applying Civil Code provisions on agency and sale of immovable property. The foreclosure and subsequent sale were declared null and void, with the original title restored to the Baysas.