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Chapter 2 .
THE FAMILY HOME
(Arts. 152-162, FC)

3. What is meant by ''family home" and how may it be constituted?

ANS: The family home, constituted jointly by the husband and the wife or by an unmarried
head of a family, is the dwelling house where they and their family reside and the land on which
it is situated. (Art. 153, FC.)

The family home is deemed constituted on a house and lot from the time it is occupied as a
family residence. From the time of its constitution and so long as any of its beneficiaries actually
reside therein, the family home continues to be such. (Art. 153, FC.)

4. Can a family home be constituted on a house without the land on which it is

erected? Reason out your answer. (1965)
ANS: It is submitted that a family home may not be constituted without including the land
on which it is erected. From the very definition of a family home enunciated in Art. 152 of the
FC, it is clear that the land on which the house is erected is an integral part of a family home.
Besides, there is a clear implication both from the definition and the purpose of such family
home as well as from the provisions of the CC, as amended by the FC, regulating said home that
it is permanent in character. Now, if a house constructed on rented land, for instance, may be
constituted into a family home, it becomes temporary. It cannot, therefore, serve the purpose of a
family home.

5. State the law regarding the exemptions of a family home from execution, forced sale
or attachment.
ANS: Under Art. 153 of the FC, from the time of the constitution and so long as any of the
beneficiaries of the family home actually resides therein, the family home is exempt from
execution, forced sale or attachment except as provided for in Art. 155 of the FC, and to the
extent of the value allowed by the law.
(a) Hence, under Art. 155 of the FC, while the family home shall be exempt from execution,
forced sale or attachment, it may not be so exempt for:
(1) non-payment of taxes;
(2) debts incurred prior to the constitution of the family home;
(3) debts secured by mortgages on the premises before or after such constitution; and
(4) debts due to laborers, mechanics, architects, builders, material men and others who have
rendered service or furnished material for the construction of the building.
(b) Moreover, Art. 157 of the FC allows the exemption of the family home from execution,
forced sale or attachment if its actual value does not exceed at the time of its constitution, the
amount of P300,000 in urban areas (chartered cities and municipalities whose annual income at
least equals that legally required for chartered cities) and P200,000 in rural areas (all others
which are not chartered cities and municipalities), or such amounts as may be fixed by the law.
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Should the value of the currency change after the adoption of the FC, the value most favorable
for the constitution of a family home shall be the basis of evaluation.

6. Has the residential house and lot of Cesario Montana which he and his family built
in 1960 but which was not constituted as a family home, whether judicially or ex-
trajudicially, under the CC been constituted as a family home by operation of law under
Art. 153 of the FC, and, therefore, exempt from execution of a money judgment where the
debt or liability was incurred before the effectivity of the FC?
ANS: Under Art. 162 of the FC, it is provided that "the provisions of this Chapter shall also
govern existing family residences insofar as said provisions are applicable." It does not mean that
Arts. 152 and 153 of the FC 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 FC and are exempt from execution for the payment of obligations incurred
before the effectivity of the FC. Art. 162 simply means that all existing family residences at the
time of the effectivity of the FC, are considered family homes and are prospectively entitled to
the benefits accorded to a family home under the FC. Art. 162 does not state that the provisions
of Chapter 2, Title V have a retroactive effect. True, under the FC which took effect on August 3,
1988, Cesario's residential house and lot became his family home under the simplified process
embodied in Art. 153 of the said Code. However, the case of Modequillo vs. Breva explicitly
ruled that said provision of the FC does not have retroactive effect. In other words, prior to
August 3, 1988, the procedure mandated by the CC had to be followed for a family home to be
constituted as such. There being absolutely no proof that Cesario's residential house and lot was
judicially or extrajudicially constituted as a family home, it follows that the law's protective
mantle cannot be availed of. Since the debt involved herein was incurred prior to August 3, 1988,
Cesario cannot be shielded by the benevolent provisions of the FC. (Manacop vs. Court of
Appeals, 277 SCRA 64, August 11, 1997.)

7. Who are the beneficiaries of a family home? ANS: The beneficiaries of a family
home are:
ANS. (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. (Art. 154, FC.) Arts. 152-162

8. Aro Mino contends that he should be deemed residing in the family home because
his stay in the U.S. is merely temporary. He asserts that the person staying in the house is
his overseer and that whenever his wife, Rosanna, visited the Philippines, she stayed in the
family home. Is the contention of Aro meritorious?
ANS: The law explicitly provides that occupancy of the family home either by the owner
thereof or by "any of its beneficiaries" must be actual. That which is "actual" is something real,
or actually existing, as opposed to something merely possible, or to something which is
presumptive or constructive. Actual occupancy, however, need not specifically be by the owner
of the house. Rather, the property may be occupied by the "beneficiaries" enumerated by Art. 154
of the FC. "Art. 154. The beneficiaries of a family home are:
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(1) The husband and wife, or an unmarried person who is the head of the 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 lead support."
This enumeration may include the in-laws where the family home is constituted jointly by
the husband and wife. But the law definitely excludes maids and overseers. They are not the
beneficiaries contemplated by the Code. Consequently, occupancy of a family home by an
overseer is insufficient compliance with the law. (Manacop us. Court of Appeals, 277 SCRA 65,
August 11, 1997.)
9. Pursuant to a writ of execution issued in an action for a sum of money filed against
B by A, several parcels of land belonging to the former were levied upon and later sold at
public auction to the latter as the highest bidded
When B failed to redeem the property, the sheriff issued the corresponding final
certificate of sale, whereupon A filed a motion for the issuance of the writ of possession. B
opposed the motion, alleging that on one of the parcels of land sold at public auction was
erected a house constituted as a family home. It appears that the house of B was constituted
as a family home after the decision in the foregoing case was issued. B now contends that
said lot and house are beyond the reach of judicial execution. Is this tenable?
ANS: Art. 155(2) of the FC provides that "the family home shall be exempt from execution,
forced sale or attachment" except "for debts incurred prior to the constitution of the family
home." B contends that since the money judgment rendered against him was appealed to the
Supreme Court, the same could not be considered as a debt at the time the family home was
constituted for it was still inchoate and as such, cannot come under the provisions of Art. 155 of
the FC. This contention is untenable. The reason of the law for providing that a family home
constituted after a debt had been incurred is not exempt from execution is to protect the creditor
against a debtor who may act in bad faith by resorting to such declaration just to defeat the claim
against him. If the purpose is to protect the creditor from frauo it would be immaterial in the
o.e'ot incurred be undisputed or inchoate, for a debtor acting in good faith would prefer to wait
until his case is definitely decided before constituting the family home. Indeed, it may result, as
in this case, in the affirmance of the judgment. Hence, the money judgment in question comes
within the purview of the word debt used in Art. 155(2) of the FC. (Siari Valley Estate, Inc.. us.
Lucasan, 109 Phil. 294.)

10. On what properties must the family home be constituted?

ANS: The family home must be part of the properties of the absolute community or the
conjugal partnership or the exclusive properties of either spouse with the latter's consent. It may
also be constituted by an unmarried head of a family on his or her own property.
Nevertheless, property that is subject of a conditional sale on installments where ownership
is reserved by the vendor to guarantee payment of the purchase price may be constituted as a
family home. (Art. 156, FC.)

11. How may a family home be sold, alienated, donated, assigned or encumbered?
ANS: The family home I\l~y be sold, alienated, donated, as // signed oy'e'ncumbered by the
owner or owners thereof with the written constant of the person constituting the same, the
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spouse, and a majority of the beneficiaries of legal age. In case of conflict, the court shall decide.
(Art. 158, FC.)

12. What is the effect of death of one or both spouses or of the unmarried head of the
family upon the family home?
ANS: Under Art. 159 of the FC, the family home shall continue despite the death of one or
both spouses or of the unmarried head of the family for a period of 10 years or for as long as
there is a minor beneficiary and the heirs cannot partition the same unless the court finds
compelling reasons therefor. This rule shall apply regardless of whoever owns the property or
constituted the family home.

13. Spouses Marilyn and Johnny died, leaving as their beneficiaries, Susan and Helen,
both minors. When can the heirs of the spouses partition the family home?
ANS: The heirs can partition the family home only after a period of 10 years and only when
Susan and Helen are no longer minor beneficiaries living in the home. The heirs cannot partition
the family home notwithstanding the lapse of the 10-year period for as long as the children (or
either of them) continue to be minor beneficiaries living in the family home. Should the court,
however, find compelling reasons for allowing the partition of the family home, then the heirs
could do so prior to the lapse of the 10-year period or even if there are still minor beneficiaries
living in the family home.

14. In September 1988, a man and his wife bought a parcel of land in Filinvest Homes,
Quezon City for P150,000, built a house thereon for P350,000 and immediately thereafter,
constituted the property into a family home. In 1989, because of the increase in land values
and the improvements subsequently introduced thereon, the family home acquired an
actual worth of P700,000. In this year also, a third person obtained a judgment for dam-
ages against the spouses in the sum of P200,000 as a result of an automobile accident which
happened in 1987. The third person applied to the court which rendered the judgment for
an order directing the sale of the family home under execution. If you were the judge, how
would you decide the case?
ANS: It is evident that the claim of the judgment creditor in the instant case does not fall
under any of the exceptions enumerated in Art. 155 of the FC. Should it, therefore, be found that
the actual value of the family home exceeds the maximum amount allowed by law as of the time
of the constitution of the family home or if the increased actual value exceeds the maximum
allowed in Art. 157 of the FC, that is, at P300,000 in urban areas and P200,000 in rural areas, as
a result of subsequent voluntary improvements introduced by the spouses-owners who
constituted the family home or by any of their beneficiaries, the court shall so order and direct
the sale of the family home under execution.
At the execution sale, no bid below the value allowed for a family home shall be
considered. The proceeds shall be applied first to the amount mentioned in Art. 155 of the FC,
and then to the liabilities under the judgment and the costs. The excess, if any, shall be delivered
to the judgment debtor. (Art. 160, FC.)

15. How many family homes may a person constitute or be a beneficiary of, for the
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purposes of availing of the benefits of a family home?
ANS: Under Art. 161 of the FC, a person may constitute or be the beneficiary of only one
family home for purposes of availing of the benefits of a family home.
16. Do the provisions of the FC on family govern family homes constituted prior to
the effectivity of the FC?

ANS: The provisions of the FC on family homes also govern existing family residences
insofar as said provisions are applicable. (Art. 162, FC.)