SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 15 5 0 
'13 
SEP -5 P 2 :02 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This bill seeks to amend certain provisions of Executive Order No. 209, 
otherwise known as the Family Code of the Philippines, as amended, specifically 
Articles 155 and 157 found on Title V, Chapter 2, entitled "The Family Home." 
Article 155 provides that the Family home shall be exempt from execution, 
forced sale, or attachment, except in four (4) instances. Amendments are 
proposed to cover two (2) of the four exemptions, namely: for the non-payment of 
taxes, and for debts incurred prior to the constitution of the family home. First, it 
is proposed that the words REAL ESTATE be added to qualify what type of tax is 
excepted. The purpose of these amendments is to avoid any misinterpretation as 
to the true intent of the law,· as it a basic tenet that provisions granting 
exemptions are strictly construed against the person invoking the exemption and 
those which impose tax obligations are liberally construed in favor of the taxing 
authority. 
Second, it is also proposed that the family home should remain exempt 
even for the payment of debts incurred prior to the constitution of the family 
home. There is no compelling reason to hold otherwise, as it cannot be said that 
such debts redounded to the benefit of the beneficiaries of the family home. 
Another amendment introduced is that, in the event that an execution, 
forced sale or attachment on the home may be made, the family home would 
remain to be exempt if the proceeds of such sale are still insuffiCient to cover the 
. entire judgment credit. The reason for this amendment is to prevent a situation 
wherein a family not only loses the family home but also is still in debt. 
Finally, considering the present purchasing power of the peso, the value of 
the real property, and the high cost of constructing adequate, shelter, the bill also 
proposes to increase the value attached to the family home to conform it with 
present day economic realities, if only to give full meaning to the spirit of the law. 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


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O~ffl;f vf t lit!' ,.).l'lffhJt V 
SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 155 0 
'13 
SEP -5 P 2 :02 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING ARTICLES 155 AND 157 OF EXECUTIVE ORDER NO. 209 AS 
AMENDED, OTHERWISE KNOWN AS THE FAMILY CODE OF THE 
PHILIPPINES, SO AS TO STRENGTHEN THE PROVISIONS OF THE LAW 
GOVERNING THE FAMILY HOME 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Article 155 of Executive Order No. 209, as amended, is 
hereby amended to read as follows: 
"The family home shall be exempt from execution, forced sale or 
attachment except: 
"(1) For non-payment of REAL ESTATE taxes; 
"[(2) For non-payment of debts incurred prior to the constitution of 
the family home;] 
"(2) [(3)] For debts secured by mortgages on the premises before or 
after such constitution; and, 
"(3) [(4)] For debts due to laborers, mechanics, architects, builders, 
material men and others who have rendered service or furnished 
material for the construction of the building. 
"HOWEVER, IN NO INSTANCE SHALL THE FAMILY HOME BE 
SUBJECT TO EXECUTION, FORCED SALE, OR ATTACHMENT, 
IF THE VALUE OBTAINABLE AFTER SUCH SALE IS NOT 
SUFFICIENT TO COVER THE ENTIRE JUDGMENT CREDIT: 
PROVIDED, THAT THE COURT SHALL BEFORE ISSUING THE 
ORDER, ENSURE THAT THE EXECUTION, FORCED SALE OR 
ATTACHMENT OF THE FAMILY HOME IS DONE AS A LAST 
RESORT, 
OR 
THAT 
THE 
DEBTOR 
HAS 
NO 
OTHER 
PROPERTIES AVAILABLE TO SATISFY THE JUDGMENT 
CREDIT." 
SEC. 2. Article 157 of Executive Order No. 209, as amended, is hereby 
amended to read as follows: 


"The Actual value of the family home shall not exceed, at the time 
of its constitution, the amount of [three hundred thousand] ONE 
MILLION pesos in urban areas, and [two] FIVE hundred thousand 
pesos in rural areas, or such amounts as may hereafter be fixed by 
law. 
"In any event, if the value of the currency changes after the 
adoption of this Code, the value favorable for the constitution of a 
family home shall be the basis of evaluation. 
"For purposes of this Article, urban areas are deemed to include 
chartered cities and municipalities whose annual income at least 
equals that legally required for chartered cities. All others are 
deemed to be rural areas." 
SEC. 3. This Act shall be given retroactive effect insofar as it does not 
impair or prejudice vested or acquired rights. 
SEC. 4. Repealing Clause. All laws, presidential decrees, executive 
orders and issuances inconsistent with this Act are hereby modified or repealed 
accordingly. 
SEC. 5. Effectivity Clause. This Act shall take effect fifteen (15) days 
after its publication in two (2) newspapers of general circulation. 
Approved,