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Arturo Flores Digest

1) A woman took out a loan secured by a mortgage on a property she co-owned with her husband without obtaining his consent. The lower court dismissed the foreclosure case, ruling the mortgage was void. 2) The Supreme Court ruled that the subsequent special power of attorney (SPA) executed by the husband perfected the mortgage contract by representing acceptance and consent. 3) Both the Family Code and case law state that while encumbrances of conjugal property require both spouses' consent, the transaction can be perfected if the non-consenting spouse later accepts through a legal document like an SPA. The SPA therefore cured the initial lack of consent.

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Kenneth Buñag
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42 views2 pages

Arturo Flores Digest

1) A woman took out a loan secured by a mortgage on a property she co-owned with her husband without obtaining his consent. The lower court dismissed the foreclosure case, ruling the mortgage was void. 2) The Supreme Court ruled that the subsequent special power of attorney (SPA) executed by the husband perfected the mortgage contract by representing acceptance and consent. 3) Both the Family Code and case law state that while encumbrances of conjugal property require both spouses' consent, the transaction can be perfected if the non-consenting spouse later accepts through a legal document like an SPA. The SPA therefore cured the initial lack of consent.

Uploaded by

Kenneth Buñag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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7/11/2016

LawPhilippines:MortgageofConjugalPropertywithoutMaritalConsentisVoid(Floresv.Sps.LindoCaseDigest)

Mortgage of Conjugal Property without Marital


Consent is Void (Flores v. Sps. Lindo Case
Digest)
G.R. No. 183984, April 13, 2011
Arturo Sarte Flores v. Sps. Enrico & Edna Lindo
Mortgage of property within the community or the conjugal partnership is
void if done without the consent of the other spouse. Nevertheless, the
execution of special powers of attorney perfects the contract of mortgage. In
other words, the SPA cures the defect of the mortgage.
On the 31st day of October in the year 1995, the woman was able to obtain a
loan secured by a Real Estate Mortgage over a real proper under her and his
husband's name but without the consent of the former. Partial payments were
made by her through checks but the same were dishonored. As a result, the
creditor filed a complaint against her for foreclosure of the mortgage with
damages.
The second-level court dismissed the case as the mortgage was, in the eyes of
the court a quo, void for having been executed without the necessary consent
of the husband, despite the SPA executed later by the husband for the wife. It
must be noted that the SPA was executed only a few days after the wife
entered into the contract of loan with mortgage.
The second-level court however ruled that the subsequent execution of the
SPA cannot be made to retroact to the date of the execution of the real estate
mortgage.
ISSUE:
Did the court commit any error in dismissing the case for foreclosure against
the wife for the mortgage entered into without the husband's consent despite
the fact that a subsequent SPA was executed in her favor?

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7/11/2016

LawPhilippines:MortgageofConjugalPropertywithoutMaritalConsentisVoid(Floresv.Sps.LindoCaseDigest)

RULING:
Yes, the court acted in error.
The execution of the SPA can be considered as acceptance of the mortgage by
the other spouse that perfected the contract or continuing offer.
Both Article 96 and Article 124 of the Family Code provide that the powers of
the administration do not include disposition or encumbrance without the
written consent of the other spouse. Any disposition or encumbrance without
the written consent shall be void. However, both provisions also state that
the transaction shall be construed as a continuing offer on the part of the
consenting spouse and the third person, and may be perfected as a binding
contract upon the acceptance by the other spouse x x x before the offer is
withdrawn by either or both offerors.

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