Litonjua V. L&R Corporation Essay Example

to redeem the property that was foreclosed by L ; R Corporation. Section 6 of Act 3135 supports this argument as it grants not only the original debtor the right to redeem, but also their successors-in-interest. PWHAS, being the buyer of the mentioned properties, meets the requirements to be considered Litonjua's successor-in-interest.

3) The validity of the Stipulation On Right of First Refusal has been acknowledged for a long time. The loan-mortgage agreement includes the consideration for this right. L & R Corporation is essentially stating that it consents to lending money to Litonjua under the condition that if they choose to sell the mortgaged property, L & R Corporation will have the right to match the offered purchase price and purchase the property at that price.

In summary, the mortgagor is allowed to sell their property that has a mortgage without needing permission from the mortgagee. However, they must inform the mortgagee and give them the first opportunity to purchase the property before considering other buyers. The mortgagee can only refuse this offer and allow the mortgagor to sell to others if they choose not to exercise their right of first refusal.

PWHAS is not able to claim that they were unaware of L & R Corporation's right of first refusal over the properties in question. This provision was included in the Deed of Real Estate Mortgage and properly registered with the Register of Deeds. As a result, PWHAS can be assumed to have been informed about this provision through registration, which serves as notice to everyone. However, it cannot be held against L;R that they did not exercise their right

of first refusal promptly because Litonjua did not inform them about their intention to sell the property and prioritize L;R over other potential buyers.

The mortgagee's right of first refusal being taken away leads to the cancellation of the sale made to other purchasers. In short, the sale between Litonjua and PWHAS remains legitimate even without prior written consent from L & R Corporation. PWHAS, as successor-in-interest of Litonjua, presented a valid offer to redeem and provided the redemption price within one year. Nonetheless, despite the validity of the sale, it can be revoked due to disregarding L & R Corporation's right of first refusal.