FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 799 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPI,.ANATORY 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 (4) exemptions, namely: for the 
nonpayment 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 exempted. The purpose of these amendments is to avoid any 
miSinterpretation as to the true intent of the law, as it is 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 is allowed, the family home shall become 
exempt, if the proceeds of such sale are still insufficient to cover the entire 
judgment or award. The reason for this amendment is to prevent a situation 
wherein a family not only loses its home but remains 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 update it with 
present day economic realities, if only to give full meaning to the spirit of the law. 
Upon these premises, approval of this bill is earnestly requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
7 9 9 
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) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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AMENDING ARTICLES 155 AND 157 OF EXECUTIVE ORDER NO. 209, AS 
AMENDED, OTHERWISE KNOWN AS THE FAMILY CODE OF THE 
PHILIPPINES, 
STRENGTHENING 
THE 
PROVISIONS 
OF 
THE 
LAW 
GOVERNING THE FAMILY HOME 
Be it enacted by the Senate and 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 nonpayment of RE~L ESTATE taxes; 
[(2) For nonpayment 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 JUDGEMENT -OR AWARD: 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 JUDGEMENT OR AWARD. 
SEC. 2. Article 157 of Executive Order No. 209, as amended, is hereby 
amended to read as follows: 


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"The Actual value of the family home shall not exceed, at the time of its 
constitution, the amount of [three hundred thousand] TWO MILLION pesos in 
urban areas, and [two hundred thousand] ONE MILLION 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. All laws, presidential decrees, executive orders and issuances 
inconsistent with this Act are hereby modified or repealed accordingly. 
SEC. 5. This Act shall take effect fifteen (15) days after its publication in 
two (2) newspapers of general circulation. 
Approved,