TITLE V 

FAMILY 

Article 154. The beneficiaries of a family home are:

(1) The husband and wife, or an unmarried person who is the head of a family; and

(2) Their parents, ascendants, descendants, brothers and sisters, whether the relationship be legitimate or illegitimate, who are living in the family home and who depend upon the head of the family for legal support. (226a)

Article 155. The family home shall be exempt from execution, forced sale or attachment except:

(1) For non-payment of taxes;

(2) For debts incurred prior to the constitution of the family home;

(3) For debts secured by mortgages on the premises before or after such constitution; and

(4) For debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or furnished material for the construction of the building. (243a)

     While those in numbers 1 and 2 mentioned in Article 154 are all referred to as beneficiaries, the family home is composed of the spouses or unmarried head of the family and the dependents. Also included in the beneficiaries are the grandparents and grandchildren. 

Modequillo vs. Breva

G.R. No. 86355, May 31, 1990

Facts:

Judgment was rendered by the Court of Appeals ordering defendant to pay a sum of money to plaintiff. The judgment having become final and executory, a writ of execution was issued by the Regional Trial Court to satisfy the judgment on the goods and chattels of defendants. The sheriff levied on a parcel of residential land. A motion to quash the levy on execution was filed by the defendant, alleging therein that the residential land is where the family home is built since 1969 which is, prior to the commencement of the case, is exempt from execution, forced sale or attachment under Articles 152 and 153 of the Family Code. The trial court denied the motion to quash.

Held:

The residential house and lot of defendant was not constituted as a family home, whether judicially or extra-judicially under the Civil Code. It became a family home by operation of law under Article 153 of the Family Code. It is deemed constituted as a family home upon the effectivity of the Family Code on August 3, 1988.

Defendant’s contention that it should be considered as a family home from the time it was occupied by him and his family in 1969 is not well-taken. Under Article 162 of the Family Code, “The provisions of this Chapter shall also govern existing family residences insofar as said provisions are applicable.” It does not mean that Articles 152 and 153 of said Code have a retroactive effect such that all existing family residences are deemed to have been constituted as family

homes at the time of their occupation prior to the effectivity of the Family Code and are exempt from execution for the payment of obligations incurred before the effectivity of the Family Code.

Article 162 simply means 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. Article 162 does not state that the provisions of Chapter 2, Title V have a retroactive effect. Defendant’s family home is not exempt from the execution of the money judgment. The debt or the liability, which was the basis of the judgment that arose, was incurred at the time of the vehicular accident on March 16, 1976 and the money judgment, arising therefrom rendered by the appellate court on 29 January 1988. Both preceded the effectivity of the Family Code on 3 August 1988. This case does not fall under the exemptions from execution provided in

the Family Code.

Under the Family Code, a family home is deemed constituted on a house and lot from the time it is occupied as a family residence. There is no need to constitute the same judicially as was required in the Civil Code. If the family actually resides in the premises, it is, therefore, a family home as contemplated by law. Thus, the creditors should take the necessary precautions to protect their interest before extending credit to the spouses or to the head of the family who owns the home. 

Reference: 

Family Code of the Philippines by Albano