- Petitioner
- El Hogar Filipino
- Respondent
- Geronimo Paredes
- Citation
- G.R. No. 19843
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Street, J.
- Decided
- October 3, 1923
Summary
El Hogar Filipino sought mandamus to compel the register of deeds to register a property transfer following extrajudicial foreclosure under a mortgage power of sale clause. The register refused registration, claiming the power of sale provision was void. The Supreme Court established the landmark doctrine that mortgage contracts may validly contain extrajudicial power of sale clauses, distinguishing between prohibited creditor appropriation and legitimate sale authorization. The Court relied on Spanish Civil Code jurisprudence, English and American precedents, and policy considerations favoring such provisions over more objectionable pacto de retro arrangements. This decision validated extrajudicial foreclosure as an alternative to judicial proceedings, significantly impacting Philippine mortgage law by providing creditors with efficient foreclosure remedies while maintaining debtor protections through publication and redemption requirements.