Civil Code: Persons, Family, and Relations
Kelley v Planters Products Inc
Topic: Family Code of the Philippines: The Family Home
Relevant Article/s: Article 152 of the Family Code
The family home, constituted jointly by the husband and the wife or by an unmarried head of a
family, is the dwelling house where they and their family reside, and the land on which it is situated.
(223a)
Article 153 of the Family Code
The family home is deemed constituted on a house and lot from the time it is occupied as a family
residence. From the time of its constitution and so long as any of its beneficiaries actually resides
therein, the family home continues to be such and is exempt from execution, forced sale or
attachment except as hereinafter provided and to the extent of the value allowed by law. (223a)
Article 155 of the Family Code
The family home shall be exempt from execution, forced sale, or attachment except:
(1) For nonpayment of taxes
(2) For debts incurred prior to the constitution of the family home
(3) For debts secured by mortgages on the premises before or after such constitution; and
(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. (243a)
Article 162 of the Family Code
The provisions in this Chapter shall also govern existing family residences insofar as said
provisions are applicable. (n)
Spouses Author Kelley Jr and Doris A.
G.R. No. 172263, July 9, 2008
Ponente: Justice Corona
Facts:
 Petitioner Auther G. Kelley, Jr. acquired agricultural chemical products on
consignment from respondent Planters Products, Inc. (PPI) in 1989.
 Due to Auther's failure to pay despite demand, PPI filed an action for sum of money
against him in the RTC Makati City.
 After trial on the merits, the RTC Makati City decided in favor of PPI and issued a writ
of execution.
 Pursuant to this, sheriff Jorge A. Ragutana sold on execution real property covered
by TCT No. 15079 located in Naga City.
 After being belatedly informed of the said sale, Auther and his wife Doris, filed a
motion to dissolve or set aside the notice of levy in the RTC Makati City on the
ground that the subject property was their family home which was exempt from
execution.
 Their motion was denied for failure to comply with the three-day notice requirement.
They again filed a complaint for declaration of nullity of levy and sale of the alleged
family home with damages against Ragutana and PPI in the RTC Naga City.
 The case was, however, dismissed for lack of jurisdiction and lack of cause of action
and the dismissal was upheld by the CA.
Hence, this Petition.
Issue:
Whether or not the subject property is the family home of the Kelleys and if there is a
need to constitute the family home judicially or extrajudicially
 by a mortgage on the premises before or after such constitution; and (4) For debts
due to laborers, mechanics, architects, builders, material men and others who have
Ruling/s:
rendered service or furnished material for the construction of the building.
 NO Therefore, the Court, speaking thru Justice Corona, ruled that there is no need to constitute
 Family Home is defined under Article 152 of the FC as the dwelling house where the the family home judicially or extrajudicially. However, if the subject property was the Kelley’s
husband and the wife, or by an unmarried head of a family, and their family reside, family home is to be determined for the instant case was remanded by the Court to the RTC.
and the land on which it is situated. Pursuant to Article 153, the family home is
deemed constituted on a house and lot from the time it is occupied as a family
residence. From the time of its constitution and so long as any of its beneficiaries
actually resides therein, the family home continues to be such and is exempt from
execution, forced sale, or attachment except for circumstances in Article 155 of the
Family Code.
 In this case, the Court held that there is no need to constitute the family home
judicially or extrajudicially. It laid down the rules relative to the execution of the family
home, 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, pursuant to Article
153 of the Family Code.
 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.
The rule, however, is not absolute. The Family Code, in fact expressly provides for
the following exceptions as stated in Article 155. The family home shall be exempt
from execution, forced sale or attachment except: (1) For non-payment of taxes; (2)
For debts incurred prior to the constitution of the family home; (3) For debts secured