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Question 7
7. Atoy is one of the five children of Jawo. Jawo was the registered owner of a fourhectare parcel of land in Sta. Cruz, Laguna covered by TCT No. 77347. When Jawodied, the owner’s duplicate of the TCT was kept by Jawo’s daughter, Akiko (sister of Atoy), who resided in the said property. Wanting to have the said four-hectare
property registered under his name, Atoy got in touch with Franz who had special connections with the Register of Deeds of Sta. Cruz, Laguna. TCT No. 77347 was then cancelled and TCT No. 84660 was issued in Atoy’s name on January 29, 2013. Atoy immediately mortgaged the property to the Rural Bank of Sta. Cruz (RBSC). Upon default and after being declared the winning bidder in the extrajudicial foreclosure sale, RBSC consolidated ownership with the issuance of TCT No. 94477 in its name.
How will Akiko and the other heirs of Jawo be able to successfully argue that RBSC is not an innocent purchaser for value? Explain briefly. (5 points)
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