Case Digest: DE MESA V. ACERO

DE MESA V. ACERO 

G.R. No. 185064,  [January 16, 2012]

DOCTRINE:

Rules on constitution of family homes, for purposes of exemption from execution:

First, family residences constructed before theeffectivity of the Family Code or before August 3, 1988 must be constituted as a family home either judicially or extrajudicially in accordance with the provisions of the Civil Code in order to be exempt from execution;

Second, family residences constructed after the effectivity of the Family Code on August 3, 1988 are automatically deemed to be family homes and thus exempt from execution from the time it was constituted and lasts as long as any of its beneficiaries actually resides therein;

Third, family residences which were not judicially orextrajudicially constituted as a family home prior to the effectivity of the Family Code, but were existing thereafter, are considered as family homes by operation of law and are prospectively entitled to the benefits accorded to a family home under the Family Code.

The settled rule is that the right to exemption or forced sale under Article 153 of the Family Code is a personal privilege granted to the judgment debtor and as such, it must be claimed not by the sheriff, but by the debtor himself before the sale of the property at public auction. It is not sufficient that the person claiming exemption merely alleges that such property is a family home. This claim for exemption must be set up and proved to the Sheriff.

FACTS:

Araceli De Mesa is married to Ernesto De Mesa.They purcahsed a parcel of land located in Meycauayan, Bulacan. A house was contracted in the said property, which became their family home. A year after, Arceli contracted a loan in the amount of P100,000 from Claudio Acero, which was secured by a mortgage on the said parcel of land and house. Araceli issued a check for the payment of the loan. When Acero presented the check to the bank it was dishonored because the checking account was already closed. Acero demanded payment. However, Spouses De Mesa still failed to pay. Acero filed a complaint for violation of B.P. 22 in the RTC. The RTC acquitted the Spouses but ordered them to pay Acero P100,000 plus legal interest. A writ of execution was issued to levy on the said property.

The house and lot was sold in the public auction and Acero was the highest bidder. Acero leased the property to Juanito Oliva, who defaulted payment for several years. Oliva contends that the Acero spouses are not the owners of the property.

The MTC rendered a Decision, giving due course to Spouses Acero’s complaint and ordering the Spouses De Mesa and Oliva to vacate the subject property. Spouses De Mesa contend that they are the rightful owners of the property. The MTC also stated that from the time a Torrens title over the subject property was issued in Claudio’s name up to the time the complaint for ejectment was filed, the petitioners never assailed the validity of the levy made by the Sheriff, the regularity of the public sale that was conducted thereafter and the legitimacy of Acero’s Torrens title that was resultantly issued.

Spouses De Mesa filed an action to nullify the TCT issued to Acero. Spouses De Mesa contend that the subject property is a family home, which is exempt from execution under the Family Code and, thus, could not have been validly levied upon for purposes of satisfying the writ of execution. RTC dismissed the complaint. CA affirmed RTC’s decision.

ISSUE:

Whether or not the subject property, as a family home, may be subject to execution in this case.

HELD:

YES, the subject property is family home but is subject to execution.In general, the family home is exempt from execution. However, the person claiming this privilege must assert it at the time it was levied or within a reasonable time thereafter.

RATIO:

For the family home to be exempt from execution,distinction must be made as to what law applies based on when it was constituted and what requirements must be complied with by the judgment debtor or his successors claiming such privilege.

The foregoing rules on constitution of family homes, for purposes of exemption from execution, could be summarized as follows:

First, family residences constructed before the effectivity of the Family Code or before August 3, 1988 must be constituted as a family home either judicially or extrajudicially in accordance with the provisions of the Civil Code in order to be exempt from execution;

Second, family residences constructed after the effectivity of the Family Code on August 3, 1988 are automatically deemed to be family homes and thus exempt from execution from the time it was constituted and lasts as long as any of its beneficiaries actually resides therein;

Third, family residences which were not judicially or extrajudicially constituted as a family home prior to the effectivity of the Family Code, but were existing thereafter, are considered as family homes by operation of law and are prospectively entitled to the benefits accorded to a family home under the Family Code.

Here, the subject property became a family residence sometime in January 1987 when Spouses De Mesa got married. There was no showing, however, that the same was judicially or extrajudicially constituted as a family home in accordance with the provisions of the Civil Code. Still, when the Family Code took effect on August 3, 1988, the subject property became a family home by operation of law and was thus prospectively exempt from execution. The petitioners were thus correct in asserting that the subject property was a family home.

Despite the fact that the subject property is a family home and, thus, should have been exempt from execution, Spouses De Mesa should have asserted the subject property being a family home and its being exempted from execution at the time it was levied or within a reasonable time thereafter. They are stopped from claiming the exemption of the property from execution.