RULE 91

Escheats
Substantive Provisions: Articles 1011 to 1014 of Civil Code.
Article 1011. In default of persons entitled to succeed in accordance with the provisions of
the preceding Sections, the State shall inherit the whole estate. (956a)
Definition
Proceeding whereby the real and personal property of a deceased person become the property of
the State upon his death without leaving any will or legal heirs.
Escheats is the proceeding for State to acquire property of decedent who:
a) died intestate; or if died testate but will was disallowed;
b) left no heirs or person by law entitled to the same; and
c) left personal or real properties in the Philippines.
Who Files Petition? Or Who is the Real Party-in-Interest
Solicitor General or his representative, on behalf of Republic of the Philippines.
Basis?
By virtue of sovereignty of State
Where to File?
RTC of province where decedent last resided.
If non-resident, RTC of province where he had an estate.
Order for Hearing.
If petition is sufficient in form and substance:
1. Court shall set date of hearing, which shall not be more than 6 months after entry of order.
2. Copy of order shall be published before hearing at least once a week for 6 successive
weeks in news paper of general circulation in the province.
Who may oppose?
Any person alleging to have a direct right or interest in the property sought to be escheated is
likewise an interested and necessary party and may appear and oppose the petition for escheat.
Motion to Dismiss May be Filed
Motion to dismiss was allowed on ground that petition for escheat does not state the facts to entitle
petitioner for remedy prayed for.
When Motion to dismiss is entertained upon this ground, the petition may be dismissed
unconditionally and me petitioner is not entitled, as in the case of a demurrer, to be afforded an
opportunity to amend his petition. (Municipal Council of San Pedro Laguna vs Colegio de San Jose).
Judgement:
If requisites are proved, and after payment of debts and charges:
If resident:
1. Personal Property – assigned to Municipality or City where decedent last resided
2. Real Property – assigned to Municipality of City where the property is situated
If non-resident:
Whole estate assigned to Municipality or City where property is located
Purpose: For benefit of public schools, and public charitable institutions in said municipalities
and cities.
Court may order establishment of permanent trust so that only income from property is used.
Claim to Estate; When to be filed.
 Devisee, legatee, heir, widow/widower, or other person entitled to the estate may file a claim
with the court within 5 years from date of judgement.
  Person entitled shall have possession and title to the same.
 If sold, municipality or city shall be accountable to him for the proceeds after deducting
reasonable charges for care of estate.
 If claim not made within the period, it shall be barred forever. Period is imposed to encourage
claimants to be punctilious (attentive) in asserting their claim.
Other actions for escheat.
This Rule shall also apply to actions reversion or escheat of properties alienated in violation
of the Constitution or of any statute.
Action shall be instituted in province where land lies in whole or in part.
Constitution – Alien can’t own land.
Section 101, Public Land Act – Land fraudulently awarded may be recovered through
reversion.

CASES:
1. Republic vs CA
FACTS: 2 parcels of land left by decedent Elizabeth Hankings were escheated in favor of
Pasig City, judgement on June 27, 1989.
7 years later, Respondent Amada Solano, domestic helper of decedent during her lifetime, filed
petition for annulment of judgement alleging she found the deeds of donation she had been looking
for a long time executed by decedent in her favor.
ISSUE: WON claim is barred by the five-year period rule.
HELD: Affirmative. With the lapse of the 5-year period therefore, private respondent has
irretrievably lost her right to claim and the supposed “discovery of the deeds of donation” is not
enough justification to nullify the escheat judgment which has long attained finality.
Purpose of 5 year period: Not imposed to defraud any claimant but to encourage would-be claimants
to be punctilious in asserting their claims, otherwise they may lose them forever in a final judgment.

2. Manese vs Velasco
FACTS: Respondent was granted homestead patent for an allegedly foreshore land, issued
with OCT. Petitioner, claiming to be granted with Miscellaneous Lease Application over the
foreshore land, filed Complaint for Annulment of Title. RTC dismissed complaint on ground that
Petitioner is not the real-party-in-interest.
ISSUE: WON Petitioner was the real party-in-interest.
HELD: In all actions for the reversion to the Government of lands of the public domain or
improvements thereon, the Republic of the Philippines is the real party in interest. The action shall
be instituted by the Solicitor General or the officer acting in his stead, in behalf of the Republic of the
Philippines.

3. Republic vs. Register of Deeds of Roxas City

FACTS: Lee Liong, Chinse National, purchased a parcel of land. Private Respondents Heirs
of Lee Liong, Filipino Citizens, inherited the land when Lee Liong Died. Republic of the Philippines
filed Complaint for Reversion.
ISSUE: WON the subject parcel of land should be reverted to the state.
HELD: Negative. Constitutional policy of preventing lands from falling in the hands of non-
Filipinos is no longer violated since the land is in the hands of Filipinos qualified to acquire and own
such land. The subsequent transfer of the property to qualified Filipinos may no longer be impugned
on the basis of invalidity of the initial transfer. The objective of the constitutional provision to keep
our lands in Filipino hands has been achieved.