Article 316 of the Revised Penal Code: Other forms of swindling
Status: In force
What does Article 316 say?
The penalty of arresto mayor in its minimum and medium periods and a fine of not less than the value of the damage caused and not more than three times such value, shall be imposed upon:
1. Any person who, pretending to be the owner of any real property, shall convey, sell, encumber or mortgage the same.
2. Any person who, knowing that real property is encumbered, shall dispose of the same, although such encumbrance be not recorded.
3. The owner of any personal property who shall wrongfully take it from its lawful possessor, to the prejudice of the latter or any third person.
4. Any person who, to the prejudice of another, shall execute any fictitious contract.
5. Any person who shall accept any compensation given him under the belief that it was in payment of services rendered or labor performed by him, when in fact he did not actually perform such services or labor.
6. Any person who, while being a surety in a bond given in a criminal or civil action, without express authority from the court or before the cancellation of his bond or before being relieved from the obligation contracted by him, shall sell, mortgage, or, in any other manner, encumber the real property or properties with which he guaranteed the fulfillment of such obligation.
What does it mean in plain language?
Article 316 lists six "other forms of swindling": specific dishonest acts that are not covered by the main estafa article, Article 315. The best known is selling or mortgaging land while pretending to be its owner. The penalty for all six is arresto mayor in its minimum and medium periods (1 month and 1 day to 4 months) and a fine of not less than the value of the damage caused and not more than three times that value.
The article opens:
The penalty of arresto mayor in its minimum and medium periods and a fine of not less than the value of the damage caused and not more than three times such value, shall be imposed upon:
How does it work in real life?
Jun: a borrowed title
Jun shows a buyer the title of his uncle's lot, says it is his, and sells it for ₱300,000. Jun pretended to be the owner of real property and sold it, which is the act in item 1. The prosecutor may also look at estafa under Article 315.
Rey: the pawned motorcycle
Rey gives his motorcycle to Lando as security for a loan. A week later he secretly takes it back from Lando's garage without paying. Rey is the owner, but Lando was its lawful possessor, and Lando is prejudiced. This is the act in item 3.
Dina: a mortgaged house
Dina sells her house without telling the buyer that it is mortgaged to a lender. The mortgage is not on the title. Item 2 covers disposing of real property known to be encumbered, even if the encumbrance is not recorded.
What does this mean in practice?
- Within the family. Swindling between spouses, ascendants and descendants and some other relatives results only in civil liability. See Article 332.
- The bigger estafa rules. For the penalties by amount, see estafa penalty in the Philippines and the estafa penalties table.
- Other deceits. Fraud that fits neither Article 315 nor Article 316 may be "other deceits" under Article 318.
- Online scams. See scammed online: what to do.
- See also the question on land sold to two buyers, the topic page on crimes against property and Article 1544 of the Civil Code on double sale.
What are the six other forms of swindling?
| Item | Who is punished |
|---|---|
| 1 | Any person who, pretending to be the owner of any real property, conveys, sells, encumbers or mortgages it |
| 2 | Any person who, knowing that real property is encumbered, disposes of it, even if the encumbrance is not recorded |
| 3 | The owner of personal property who wrongfully takes it from its lawful possessor, to the prejudice of the possessor or a third person |
| 4 | Any person who, to the prejudice of another, executes a fictitious contract |
| 5 | Any person who accepts payment given in the belief that it is for services or work he did, when he did not actually do them |
| 6 | A surety in a bond in a criminal or civil case who, without express authority from the court, or before the bond is cancelled or he is relieved of the obligation, sells, mortgages or encumbers the real property that guarantees the bond |
The first two items are about land and buildings:
- Any person who, pretending to be the owner of any real property, shall convey, sell, encumber or mortgage the same.
- Any person who, knowing that real property is encumbered, shall dispose of the same, although such encumbrance be not recorded.
Item 2 covers a seller who knows the property is mortgaged or otherwise encumbered and sells it anyway. The article says this applies "although such encumbrance be not recorded".
Can an owner commit swindling over his own property?
Yes, under item 3:
- The owner of any personal property who shall wrongfully take it from its lawful possessor, to the prejudice of the latter or any third person.
This covers movable things, such as a motorcycle or jewelry, that the owner has lawfully placed in someone else's possession, for example as security for a loan, and then wrongfully takes back.
What about selling the same property twice?
Article 316 does not use the words "double sale". Item 1 punishes a person who sells real property while "pretending to be the owner". When a seller sells a lot to one buyer and then sells it again to a second buyer, whether he was still the owner at the time of the second sale, and whether that sale fits item 1, the deceit provisions of Article 315, or another provision, are decided by the prosecutor and the court on the facts. No Supreme Court ruling on Article 316 is explained on this page.
Who keeps the property between two buyers is a separate, civil question, governed by Article 1544 of the Civil Code.
How is it different from estafa under Article 315?
| Estafa (Article 315) | Other forms of swindling (Article 316) | |
|---|---|---|
| Acts covered | Abuse of confidence, false pretenses, bouncing checks and the other means listed in the article | Six specific acts listed in the article |
| Penalty | Depends on the amount of the fraud, as amended by Republic Act No. 10951 | Arresto mayor in its minimum and medium periods, for any amount |
| Fine | None stated in the article | Not less than the damage and not more than three times the damage |
Article 316 is still the 1930 text; no amending law was found. Its fine is tied to the damage caused, not to a fixed peso amount.
Frequently asked questions
What are the other forms of swindling under Article 316?
Six acts: selling or mortgaging real property while pretending to own it; disposing of real property knowing it is encumbered; an owner wrongfully taking his own personal property from its lawful possessor; executing a fictitious contract to another's prejudice; accepting payment for services not actually performed; and a surety who, without the court's express authority or before being released from the bond, encumbers the real property that guarantees it.
What is the penalty for other forms of swindling?
Arresto mayor in its minimum and medium periods (1 month and 1 day to 4 months) and a fine of not less than the value of the damage caused and not more than three times that value.
Is selling property you do not own a crime?
It can be. Article 316, item 1, punishes any person who, pretending to be the owner of any real property, conveys, sells, encumbers or mortgages it. Whether the facts fit this item or estafa under Article 315 is decided by the prosecutor and the court.
How is Article 316 different from estafa under Article 315?
Article 315 lists the main ways of committing estafa, with penalties that rise with the amount. Article 316 covers six specific acts with one lighter penalty tied to the damage caused.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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