Pledge Real Mortgage

1. Constituted on movables. 1. Constituted on immovables.

2. Thing is delivered to the creditor 2. Thing is not required to be
or a third person by common delivered to the creditor.
agreement.
3. Must be in a public instrument 3. Must be registered to take effect
showing a description of the thing against third person.
pledged and the date of the pledge
to bind third persons.

4. Deficiency cannot be recovered 4. Deficiency can be recovered.

even if there is a stipulation.
5. Excess of the proceeds of sale is
retained by the pledgee unless
there is a stipulation giving it to the
pledgor.
6. Pledgee may appropriate the
thing pledged if the same is not
sold in two public auctions.
5. Excess of the proceeds of sale
belongs to the mortgagor even if
there is no stipulation to that effect.
6. Mortgagee cannot appropriate
the thing mortgaged.

Real Mortgage Chattel Mortgage

1. Constituted on immovables. 1. Constituted on movables.

2. Must be registered to take effect 2. Must be registered and

against third persons. accompanied by an affidavit of
good faith to take effect against
third persons.

3. It may secure future obligations. 3. It cannot secure future

obligations.
 Pledge Chattel Mortgage

1. Thing is delivered to the creditor 1. Thing is not required to be

or a third person by common delivered to the creditor.
agreement.

2. Must be in a public instrument 2. Must be registered and

showing a description of the thing accompanied by an affidavit of
pledge and the date of the pledge good faith to take effect against
to bind third persons. third persons.

3. Deficiency cannot be recovered 3. Deficiency can be recovered

even if there is a stipulation. except in the case of personal
property sold on installment.

4. Excess of the proceeds of the 4. Excess of the proceeds of sale

sale is retained by the pledgee belongs to the mortgagor even if
unless there is a stipulation giving there is no stipulation to that
it to the pledgor and in case of effect.
legal pledge.

5. Pledgee may appropriate the 5. Mortgagee cannot appropriate

thing pledge if the same is not sold the thing mortgaged.
in two public auctions.