Mr. S sold a banana plantation to Mr. B for ₱3 million although its market value is ₱20 million. It was agreed that Mr. S shall remain in possession as lessee of the land and shall be responsible for the real estate taxes.

Question

Quizplus · Accepted Answer

The significant disparity between the sale price and the market value, combined with the seller's continued possession of the property, suggests that the transaction is more likely an equitable mortgage rather than a true sale. This is because such arrangements often indicate that the "sale" is actually security for a loan, with the original owner retaining possession as a form of collateral.

Mr S Sold a Banana Plantation to Mr