Chapter 2 The Family Home

Art. 152 Family Home 1. It is constituted a. jointly by the husband and the wife or b. by an unmarried head of the family 2. It is a dwelling house where they and their family reside, and the land on which it is situated.

The Family Home

Art. 153 When is it deemed constituted – from the time it is occupied as a family residence

General Rule - The family home is exempted from: 1. Execution 2. Forced Sale 3. Attachment

Effectivity of the exemption from the execution, forced sale or attachment – From the constitution of the family home. Is there a need for the judicial or extrajudicial constitution of the family home General Rule – No more, upon the effectivity of the Family Code ** Reason- Under Art. 153 the Family Code, family home deemed constituted upon its occupancy as a family home

Exceptions –For the family homes constructed under the Civil Code How Constituted : 1. Judicial – Filing of Petition in the Court 2. Extrajudicial – Executing public document where family home is established and registering the same in the registry of property

Legal consequence Family homes existing before the effectivity of Family Code which were not constituted under the Civil Code may be held liable for debts incurred prior to the effectivity of the Family Code (Manacop vs. CA 277 SCRA 65) a. Reason – The provision of the Family Code on Family homes have not retroactive effect ( Modequillo vs. Breva, 185 SCRA 766)

Art. 154Beneficiaries of a Family Home

1. Husband and wife or an unmarried person who is the head of a family 2. Their parents, ascendants, descendants, brothers and sisters, legitimate or illegitimate, living in the family home and dependent on the head of the family.

Duration of the exemption of the family home – From its constitution and for as long as any of its beneficiaries actually resides therein( Art. 153)

1. Requisites – The occupancy of the family home by the beneficiaries must be actual 2. Is occupancy of the family home by a care taker or over seer sufficient to enjoy the exemption. - No. (Manacop vs. CA, supra)

Art. 155 Exemptions ( from execution, forced sales or attachment except : 1. Non payment of taxes 2. Debts incurred prior to constitution of home 3. Debts secured by mortgages on the premises 4. Debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or furnished materials for the construction of the building

Note: The exemption is limited to the value allowed by the Family Code Family Home is deemed constituted from the time of actual occupation as a

family residence Family Home must be owned by person constituting it Family Home must be permanent * Rule applies to valid and voidable and even to common-law marriages under Art. 147 and 148 Family Home continues despite death of one or more spouses or unmarried head of family for 10 years or as long as there is a minor beneficiary ( Art. 159)

Can only constitute one family home

Art. 156Properties on which Family Home must be constituted

1. What are those properties The property of the absolute community or conjugal partnership b. The exclusive property of either spouse c. The property of an unmarried head of the family. 2. May a property subject of conditional sale on installments with ownership reserved by vendor to guarantee payment of the price thereof be constituted as family home – Yes, that property purchased under an on-going installment plan may be constituted as a family home.

Art. 157Limitation on the Actual value of the family home

1. What are the limitations a. General Rule – It must not exceed Php 300,000.00 b. Exception – Family homes in rural areas which must not exceed Php 200,000.00

What if the Family home exceeds the maximum value (Art.160) 1. Remedy of the creditor – To apply for a court order for the execution of sale of family home 1. Minimum bid- Php 300,000.00 in urban areas, Php 200,000.00 in rural areas 2. How proceeds to be applied – a. First, to the amount of family home Php 300,000.00 in urban areas, Php 200,000.00 in rural areas b. Second, to the liabilities under judgement and cost c. The excess to be delivered to judgement debtor

Art. 158Sale , Alienation, Donation, Assignment, or Encumbrance of the Family Home 1. Who may sell, alienate, encumber etc. the family home - The owner/s thereof 2. Whose consent required – a. General Rule – That of the person who constitute it as family home, his / her spouse and majority of the beneficiaries of legal age 1. How consent given – it must be in writing b. Exception – In case of conflict the court shall decide

Art. 159Effect of Death of one or both spouses or the unmarried head of the Family 1. On the existence of the family home – It shall continue to be regarded as such a. For how long – For a period of 10 years or for as long as there is a minor beneficiary

2. May the heirs partition the family home a. General Rule – No 1. Effectivity of the probation – For a period of 10 years from death and for as long as there is a minor beneficiary b. Exception – upon Court order 1. Requisites – There must be compelling reason for early partition

Art. 160Requisites for the creditor to avail of the right to execute:

1. He must be a judgment creditor 2. His claim is not among those excepted under Art 155, and 3. He has reasonable grounds to believe that the family home is worth more than the maximum amount fixed. Art. 157

Procedure: 1. The creditor must file a motion in the court

proceedings where he obtained a favorable for a writ of execution against the family home

2. There will be hearing on the motion where the creditor must prove that the actual value of the family home exceeds the maximum amount fixed by the Family Code, either at the time of its constitution or as a result of the improvements introduced thereafter its constitution.

3. If the creditor proves that the actual value exceeds the maximum amount the court will order its sale in execution

4. If the family home is sold for more than the value allowed, the proceeds shall be applied as follows:

a. First the obligations enumerated in the Art. 155 must be paid a. Then the judgement in favor of the creditor will be paid, plus all the cost of execution b. The excess if any, shall be delivered

Art. 161

How many family home may be constituted by a person - Only one , the rule provides for only one who may constitute and be the sole beneficiary of a family home Art. 162 Are the provision of the family code on family home applicable to existing residence - Yes. Art 162 simply provides that all existing family residences at the time of the effectivity of the Family Code, are considered family homes and are prospectively entitled to the benefits accorded to a family home under the Family Code.

Thank you.