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other limitations than those established by law. xxx xxx xxx Aside
from the jus utendi and the jus abutendi inherent in the right
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THIRD DIVISION.
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the
first
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Rollo, p. 21.
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(1996).
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CA Rollo, p. 33.
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The owner has the right to enjoy and dispose of a thing, without
other limitations than those established by law.
x x x x x x x x x
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Aside from the jus utendi and the jus abutendi inherent in
the right to enjoy the thing, the right to dispose, or the jus
disponendi, is the power of the owner to alienate,
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encumber, transform and even destroy the thing owned.
Because Oakland retained all the foregoing rights as
owner of the property, it was entitled absolutely to
mortgage it to Genato. Hence, the mortgage was valid.
Second Issue: Was the Registered Mortgage Superior to the
Contract to Sell?
In their memorandum, petitioners cite our ruling
in State
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Investment House, Inc. v. Court of Appeals to the effect
that an unregistered sale is preferred over a registered
mortgage over the same property. The citation is
misplaced.
This Court in that case explained the rationale behind
the rule:
The unrecorded sale between respondentsspouses and SOLID is
preferred for the reason that if the original owner xxx had parted
with his ownership of the thing sold then he no longer had
ownership and free disposal of that thing as to be able to
mortgage it again.
Jus utendi is the right to receive from the thing what it produces. Jus
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Cabuhat v. Court of Appeals, 418 Phil. 451 366 SCRA 176 (2001).
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