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Question
Fernando Santos died intestate, leaving two real properties: (A) a two-building apartment complex valued at PHP 10,000,000 encumbered by a mortgage of PHP 7,000,000 in favor of Bank Orion; (B) a vacant lot valued at PHP 3,200,000 free of encumbrances. He is survived by his widow, Rosa, and two children, Miguel and Sofia. The heirs filed a petition for distribution and partition under Rule 90 to determine ownership shares and to partition the properties among them. Bank Orion, as mortgagee over property (A), opposes partition in kind, arguing that property (A) should be sold to satisfy the mortgage. Rosa desires to keep property (A) if feasible; Miguel and Sofia seek partition in kind if feasible. (a) Identify the controlling doctrine under Rule 90 and the proper parties to a petition for distribution and partition. (b) Apply the rule to the facts and explain whether the properties can be partitioned in kind or must be sold to satisfy the mortgage; outline how the sale proceeds, if any, would be distributed among the heirs. (c) If the heirs insist on partition in kind despite the mortgage, what relief or remedy can the court grant under Rule 90?