Multiple Choice Flashcards

Zara and Omar own adjoining parcels. On 1 January, Zara privately signs a deed conveying Parcel Alpha to Omar; the deed is not executed in a public instrument and is not registered. Omar does not take possession. Later, Zara privately signs another deed conveying the same Parcel Alpha to Priam, again not in a public instrument or registered. A bank, Bank Meridian, holds a mortgage on Parcel Alpha and has properly recorded its mortgage.
(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 of the Civil Code.
(b) Explain the effect of these private transfers on (i) the validity of Zara–Omar’s transfer as to ownership between them, and (ii) Omar’s rights against third-party claimants such as Bank Meridian or neighboring encroachers.
(c) If Omar later obtains from Zara a private deed to transfer the same parcel to Mateo, what would be Mateo’s rights and why, in light of the mandatory/prohibitory doctrine?