Family Home: Meaning Under the Family Code
Quick answer
The family home is the house where a family lives and the land on which it stands. Under the Family Code it is protected: as a rule, creditors cannot have it sold to pay debts, except in four cases listed in Article 155 and only up to the value the law allows. It is set up by the husband and wife together, or by an unmarried head of a family.
What does Article 152 say?
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.
See Article 152 for the full explanation.
When does a house become a family home?
Article 153 says the family home is deemed constituted on a house and lot "from the time it is occupied as a family residence", and stays one as long as any of its beneficiaries actually lives there. In Ramos v. Pangilinan (2010), the Supreme Court said that family homes built after the Family Code took effect on August 3, 1988 are constituted by operation of law. It added that a claim for exemption "must be set up and proved".
The home must stand on property owned by those who constitute it. In Cabang v. Basay (2009), houses built on land owned by the other party were not a family home.
What debts can still reach the family home?
The family home shall be exempt from execution, forced sale or attachment except: (1) For nonpayment 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
The fourth exception covers debts owed to laborers, builders, materialmen and others who worked on or supplied materials for the building. See Article 155.
Is there a value limit?
Yes. Article 157 says the actual value of the family home, at the time it was constituted, may not exceed three hundred thousand pesos in urban areas and two hundred thousand pesos in rural areas, "or such amounts as may hereafter be fixed by law". In Eulogio v. Bell (2015), the Supreme Court applied these limits and explained that a creditor who wants the home sold under Article 160 must prove that its value increased through voluntary improvements and now exceeds the maximum.
Who are its beneficiaries?
Under Article 154, the beneficiaries are the spouses or the unmarried head of the family, and their parents, ascendants, descendants, brothers and sisters who live in the home and depend on the head of the family for legal support. In Patricio v. Dario III (2006), a grandson living in the house was not a beneficiary because his support came from his father, not from his grandmother. Under Article 159, the family home continues despite the death of one or both spouses or of the unmarried head of the family, for ten years or for as long as there is a minor beneficiary.
Example
Made-up illustration: Vic and Wena built their house on their own lot in 2005 and live there with their children. It became a family home when they occupied it. A creditor with a court judgment for a personal loan taken in 2015 generally cannot have it sold, unless the Article 160 conditions are proven. But if the house is mortgaged to a bank and they stop paying, the bank may foreclose, because a debt secured by a mortgage on the premises is an exception in Article 155.
For more, see Can the family home be seized? and the debt and collection topic.
Which provisions use this term?
Frequently asked questions
What is a family home in simple words?
It is the house where a family lives and the land it stands on, set up by the husband and wife together or by an unmarried head of a family. It is defined in Article 152 of the Family Code.
Do I need to register a house as a family home?
For homes under the Family Code, no. Article 153 says the family home is deemed constituted from the time it is occupied as a family residence. In Ramos v. Pangilinan (2010), the Supreme Court said homes built after the Family Code took effect are family homes by operation of law.
Can a creditor take the family home?
As a rule, no. Article 155 exempts it from execution, forced sale or attachment, except for nonpayment of taxes, debts incurred before it became a family home, debts secured by a mortgage on it, and debts owed to those who built it or supplied materials.
Is there a value limit?
Yes. Article 157 says its actual value at the time it was constituted may not exceed three hundred thousand pesos in urban areas and two hundred thousand pesos in rural areas, or the amounts later fixed by law. The Supreme Court applied these limits in Eulogio v. Bell (2015).
Can a person have two family homes?
No. Under Article 161, a person may constitute, or be the beneficiary of, only one family home.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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