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Question
Lila owns Lot 11 in a metropolitan subdivision. Lila privately signs a deed of sale transferring the lot to Kai, but the instrument is not in a public instrument and there is no registration. Kai does not take possession. Later, Lila conveys the same lot to Mina through a public instrument and registers the title. (a) Classify whether the rule that transfers of immovable property must be effected by a public instrument in order to transfer ownership and bind third parties is mandatory or prohibitory under Article 5 of the Civil Code. (b) Explain the effect of the private deed from Lila to Kai on (i) the validity of the transfer between Lila and Kai, and (ii) Lila’s rights against third parties who have interests in the land (such as a bank mortgage or a neighbor’s encroachment). (c) If Kai later obtains from Lila a private deed transferring the same parcel to Omar, what would be Omar’s rights and why, in light of the mandatory/prohibitory doctrine?