THIRTEENTH CONGRESS OF THE 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
. .  
Introduced by Senator LUISA “LOI” P. 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 (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 excepted. The purpose 
of this 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 may be made, the 
family home remains to be exempt, if the proceeds of such sale is 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. 
Upon these premises, approval of this bill is earnestly requested. 
. 
LUISA ‘‘LOI’’ P. 
IT0 ESTRADA 
Sehator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
FIRST REGULAR SESSION 
OF THE PHILIPPINES 
S E N A T E  
S.B. NO. 
Introduced by Senator LUISA "LOI" P. EJERCITO ESTRADA 
AM 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 P OVISltONS 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 nonpayment of REAL 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 
(31 [(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 
SUEMECT TO 
EXECUTION, 
FORGED 
SALE, 
OR 


ATTACHMENT, IF THE VALUE OBTAINABLE AFTER SUCH 
SALE IS NOT SUFFICIENT TO COVER THE ENTIRE 
JUDGEMENT 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 JUDGEMENT CREDIT. 
Section 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. 
Section 3. This Act shall be given retroactive effect insofar as it 
does not impair or prejudice vested or acquired rights. 


Section 4. All laws, presidential decrees, executive orders and 
issuances inconsistent with this Act are hereby modified or repealed 
accordingly. 
Section 5. This Act shall take effect fifteen (15) days after its 
publication in two (2) newspapers of general circulation. 
Approved, 
.. 
. 
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GVL/tmd/SB 967FEBl bills/