FACTS:

In December 1999, petitioner Consolacion Chavez and her late husband obtained a loan from respondent Maybank Philippines, Inc. (Maybank) for the construction of a commercial building. They mortgaged the land on which the building was to be erected as collateral. However, they defaulted in the payment of their loan, prompting Maybank to extrajudicially foreclose the mortgage and emerge as the highest bidder at the public auction. Maybank was issued a Certificate of Sale at Public Auction dated December 18, 2002. Spouses Chavez filed an action for the nullification of the extrajudicial foreclosure proceedings but during the pre-trial stage, they entered into a Compromise Agreement with Maybank allowing them to buy back the property for a certain amount payable in installments. The Compromise Agreement also included provisions regarding default and possession of the property. Petitioners failed to comply with their obligations under the Compromise Agreement, prompting Maybank to enter into a Deed of Promise to Sell with J.E. TICO Realty Corporation and file a Petition for Issuance of a Writ of Possession. Petitioners opposed the petition and argued that the Compromise Agreement transferred ownership to them, so possession cannot be summarily awarded to Maybank. The Regional Trial Court (RTC) initially declined to issue a Writ of Possession and ordered the consolidation of two related cases. On appeal, the Court of Appeals (CA) set aside the RTC's ruling and directed the issuance of the Writ of Possession in favor of Maybank. Petitioners filed a petition for review on certiorari before the Supreme Court.

ISSUES:

RULING:

PRINCIPLES:

• A writ of possession is the suitable remedy of a purchaser in a foreclosure sale to obtain possession of the foreclosed property. Sections 6 and 7 of Act No. 3135, as amended by Act No. 4118, provide that an ex-parte writ of possession shall issue as a matter of course upon the filing of the proper application and the posting of a bond, unless the property is held by a third party claiming adverse possession to that of the mortgagor-debtor.

• The issuance of a writ of possession is a ministerial function of the court. The court has no discretion to deny the issuance of a writ when the proper application and bond have been filed and the foreclosure sale has been confirmed.

-Note: This is a partial digest. Further elaboration on the facts and legal discussion is necessary for a complete digest.)