1. Baldo bought a residential house and lot from Tierra Madre Realty for

P250,000.00 giving a down payment of P10,000.00 and promising to pay the

balance of P240,000.00 in 20 years in monthly installments of P1,000.00. After

paying 72 installments Baldo defaulted in the payment of the 73rd

installment and subsequent ones. Despite the grace period he had earned

he was not able to make any further payments. Accordingly, Tierra Madre

Realty cancelled the sale.

How much cash surrender value is Baldomero entitled to receive?

take note: In answering the problem, explain your position and cite the article where you based your answers.

2. Mr. Ayco offered to sell his land to Mr. Cruz for P300,000. Mr. Cruz accepted

the offer and paid Mr. Ayco the purchase price. Mr. Ayco delivered the

owners duplicate of the Transfer Certificate of title of the land. Mr. Cruz

wants to register the land in his name but the Register of Deeds asks Mr.

Cruz for the Deed of Sale.

What is the status of the sale? What can Mr. Cruz do?

take note: In answering the problem, explain your position and cite the article where you based your answers.