07/02/2025
The has reiterated that extrajudicial demand is not required before an action for judicial foreclosure can be resorted to, unless required by law or agreed upon by the parties.
In a Decision penned by Associate Justice Mario V. Lopez, the Court’s Second Division granted the petition of Goldland Tower Condominium Corporation which challenged the Court of Appeals’ dismissal of its action for judicial foreclosure due to the absence of demand.
Goldland filed the complaint against the former registered owner of a condominium unit and its subsequent owner. Goldland demanded for payment of the principal sum of PHP 4,362,208.14, representing the unpaid association dues, and in case of default, for foreclosure of the encumbrance over the condominium unit in accordance with Rule 68 of the Rules of Court.
The Court held that “as soon a debt becomes due, the creditor gains not only the right to demand—judicially or extrajudicially—its payment or fulfillment from the debtor. In addition, the creditor becomes entitled to the right to initiate foreclosure of the security as payment."
Read the full text of the Press Release at https://sc.judiciary.gov.ph/sc-extrajudicial-demand-not-required-before-judicial-foreclosure/.
Read the full text of the Decision at https://sc.judiciary.gov.ph/268143-2.
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