7/25/2019 LF Finals (Jun2016)

1/3

FEU Institute of Law Renato B. Lopez, Jr.

Legal Forms Final Examinations 3 June 20!

I.

Far East Bank is the mortgagee of a property owned by the spouses Eldan and MikaCastillo. The property, covered by TCT o. !"#$!$%# issued in the name of the couple,is a vacant lot located in a prime commercial area in &ue'on City. The Castillos

mortgaged their property in order to secure a ()#M loan which they obtained from Far

East Bank way back in !$$*.

+s the couple defaulted on their loan, Far East Bank foreclosed the mortgage on the

property and consolidated its title over it. ince then, the property formed part of the

ac-uired assets of the bank, and which it had been offering for sale.

n the meantime, in "#!*, newly/weds Mr. and Mrs. 0illiam and 1ie'el +'arcon, were

looking for a property on which to invest the substantial amount of money that theyreceived as wedding gifts from their family, sponsors, and friends. They learned about

the property previously owned by the Castillos, and that is now being sold by Far East

Bank. 2ue to neglect, however, the property had been invaded and is now occupied by

informal settlers or s-uatters. 2espite this, however, the +'arcons still saw the hugecommercial potential that the property had to offer. 3ence, they decided that they wanted

to purchase the property.

+fter some negotiations, the bank and the +'arcons came to an agreement as regards the

sale of the property, as follows4

(urchase price is ("%M 5the couple was able to haggle for a low price because ofthe presence of s-uatters67

Capital gains ta8 shall be for the account of the bank. 2ocumentary stamp ta8

and other ta8es and fees shall be shouldered by the buyers7

Buyers are well/aware of the presence of s-uatters on the property, and are willing

to buy the property on an 9as is/where is: basis.

To facilitate the sale, +tty. 2ylan ;abanal, the bank

7/25/2019 LF Finals (Jun2016)

2/3

Pretend you are Atty. ipolito. Prepare the demand letter!you can leave the addressee

blank as this letter will be sent to all "# fa$ilies% asking the s&uatters to the i$$ediately

vacate the property, or face the conse&uences of an eviction suit.

III.

More than a month had already lapsed since +tty. 3ipolito sent her demand letters to the

s-uatters. >nfortunately, her demand for the s-uatters to vacate remained unheeded.

+tty. 3ipolito then e8plained to 0illiam and 1ie'el that they have no choice now but tofile an e=ectment suit 5unlawful detainer6 against the s-uatters. The couple then told +tty.

3ipolito to =ust do whatever she thought was best in order to evict the s-uatters. n their

complaint, +tty. 3ipolito e8plained to the couple that they will ask the court to order the

s-uatters to immediately vacate the property. n addition, they will also ask the court toaward them actual damages 5the amount of (!##,###.##?month as reasonable rental for

the use of the property6, moral damages, e8emplary damages, attorneypon receipt of the (!#,###.##, each s-uatter/family will e8ecute a ;elease

0aiver A &uitclaim in favor of the +'arcons7

The +'arcons will allow the s-uatters to take with them whatever scrap pieces of

wood and?or metal that they could take7 nce the property is completely vacated and cleared, the parties will then file a

oint Motion to 2ismiss the e=ectment suit.

Prepare a si$ple Compromise Agreementto docu$ent the a$icable settle$ent arrived

at by the Azarcons with the s&uatters.

".

True to their word, the s-uatters immediately commenced their evacuation upon thesigning of the Compromise +greement. The +'arcons, on the other hand, were happy to

give the families the promised (!#,###.## financial assistance once they saw that thefamilies had actually vacated the property.

+mong the s-uatter/families that vacated the property were Mr. and Mrs. 1loyd and

Michelle (ocot. >pon leaving the property, they immediately went back to their

hometown in Calbayog City, amar, in order to try to start anew. >nfortunately, duringthe scheduled pay/out of their (!#,###.## financial assistance from the +'arcons, neither

"

7/25/2019 LF Finals (Jun2016)

3/3

1loyd nor Michelle could go back to Manila and receive their money. Fortunately, the

co/s-uatter, +ngela Federi'o was still in Manila and was actually scheduled to also

receive her financial assistance from the +'arcons. Thus, the Michelle asked +ngela ifshe can be the one to receive their money from the +'arcons. +ngela readily agreed.

3owever, she advised Michelle to prepare a pecial (ower of +ttorney in her favor to

serve as proof of her authority to receive their money.

Prepare aSPAto be e*ecuted by the Pocots in favor of Angela authorizing her to receive

the P+#,###.## financial assistance fro$ the Azarcons, as well as to e*ecute the Releaseaiver - uitclai$ and all other relevant docu$ents on behalf of the Pocots and in

favor of the Azarcons.

"I.

Following the voluntary eviction of the s-uatters and the full clearing of the property,

0illiam and 1ie'el wasted no time in having their condominium tower constructed.

+lmost two years later, the ma=estic condominium tower was finally completed. +mong0illiam and 1ie'elpon e8ecution of the lease contract, (iawill pay the +'arcons (!"#,###.## representing two/months deposit and one

month advance rental. (ia will also deliver to the +'arcons post/dated checks to fully cover all succeeding rentals7

+ll utility fees shall be shouldered by (ia7

hould (ia fail to pay at least two successive monthly rentals, the +'arcons can

declare her in default and immediately ask her to vacate the unit7

(ia shall not be allowed to retain pets and any ha'ardous materials within the unit.

Prepare aease Contractbetween the Azarcons and Pia capturing the above ter$s of

the lease. Feel free to include any other provisions that you feel will better protect the

interests of your client, Pia.

/ oo /