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Cruz owns Lot 9, Block 3. He privately sells it to Santos through a private deed; there is no public instrument or registration. Santos takes possession. Later, Cruz conveys the same lot to Ramon by a public instrument and registers the title. Santos then attempts to transfer the same parcel to Ana through a private deed (no public instrument or registration). A mortgage on the lot is held by Bank Z.
(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 Art. 5.
(b) Explain the effect of these private transfers on (i) the validity of the Cruz–Santos transfer as to ownership between them, and (ii) Santos’s rights against Bank Z and other third-party claimants.
(c) If Santos later obtains from Cruz a private deed to transfer the same parcel to Ben, what would be Ben’s rights and why, considering the mandatory/prohibitory doctrine?