Upon the receipt of the Writ of Execution, the judgment-
obligor says that he neither has cash nor certified bank check
to cover the payment of the judgment obligation which is a
money judmgent or other forms acceptable to the judgment
obligee, the sheriff will look into properties owned by the
judgment obligor. It can be any property -- personal or real,
tangible or intangible.
a. PERSONAL PROPERTIES
 If the judgment obligor has personal and real
properties, that can be used in order to satisfy the
judgment obligation. The option to choose what should
be paid … -- what should be used as payment for the
satisfaction of the judgment obligation shall be to the
judgment obligee.
 In case the judgment obligee does not exercise the
option, then the sheriff shall levy first the personal
properties, these personal properties shall be sold at
public auction. During the public auction, the highest
bidder should be the one to whom the sale of the
personal property shall be awarded.
The proceeds shall be used in order to pay the judgment
obligation -- in our situation, the money judgment.
What happens if there is an excess in the proceeds -- in the
sale of the personal property of the judgment obligor which
was used in order to satisfy the judgment obligation?
 The excess must be given to the judgment obligor.
What if there is no excess?
 It’s a quits-quits matter. Then judgment is still fully
satisfied.
What if the proceeds are not enough to fully satisfy the
judgment obligation?
 Other personal properties shall be levied and eventually
sold at public auction to the highest bidder. The proceeds
will be used to fully satisfy the money judgment.
b. REAL PROPERTIES
What if in spite of the sheriff levying all the personal
properties and selling the same at public auction to the highest
bidder, the proceeds in the sale of the personal properties of
the judgment obligor are not enough to fully satisfy the
judgment obligation? If there is real property owned by the
judgment. (end of video1)
 The real property shall be used to fully satisfy the
judgment obligation.
 If there is no cash or certified bank check or other forms
of payment in money judgment acceptable to the
judgment obligee and there is no personal property, the
sheriff will levy the real property.
 It should be owned by the judgment obligor (RP). Note
that this RP shall be sold at public auction to the highest
bidder after due publication and posting.
 Publication - once a week for three consecutive
weeks in a newspaper of general circulation
specifiying the date, time, place for the auction sale
 Notice of auction sale must likewise be posted in 3
conspicuous public places
 On the date, time and place of the auction sale, the
auction must proceed and whoever shall be the
highest bidder, it is to whom the sheriff must award
the auction sale
Can the judgment creditor or obligee also participate and
bid during the auction sale?
 Yes the judgment obligee/creditor may bid during the
auction sale and if he/she wins during the auction sale,
then it should be to him the sheriff should award the
auction sale. In that situation, the proceeds in the auction
sale whoever shall be the highest bidder shall be turned
over to the sheriff and these proceeds shall be used in
order to fully satisfy or partially satisfy the judgment
obligation.
In a situation where the proceeds of the auction of the RP
owned by the judgment obligee are enough to fully satisfy
the judgment obligation, then that is good. If there is an
excess just like in Personal Properties when they are
auctioned, because they have been levied in order to fully
satisfy the judgment obligation, the excess must be given to
the judgment obligor.
If it is not enough, then the judgment obligor must still pay
the balance which is remaining for purposes of fully satisfying
the judgment obligation.
REDEMPTION PERIOD (REAL PROPERTIES)
 Unlike in auction sale of Personal Properties owned by
the J-obligor, for purposes of satisfying the J-obligation
where there is no redemption period, in your auction sale
of RP owned by the J-obligor, he is given a redemption
period.
Illustration: The Personal Property is levied by the sheriff for
purposes of satifying the J-obligation of the J-obligor, was
awarded to the highest bidder today. The highest bidder
becomes the absolute owner of the property and the J-obligee
cannot assert that he has a right to redeem that personal
property. No such right is guaranteed under the law or under
the rules in favor of a judgment obligor.
However, if it were a real property, then the judgment obligor
is given one year to redeem the property sold at public
auction. The one-year redemption period should be reckoned
from the date of certificate of auction sale was registered
on the title of the RP with the Register of Deeds.
 If the auction sale transpired on August 1, 2020,
however, during that date, the certificate of sheriffs
auction sale was not yet annotated on the dorsal
portion of the title of RP but was annotated August
15, 2020. The redemption period should be
reckoned on August 15 when it was annotated on
the title of the RP.
 The J-obligor from August 15, 2020 to redeem the
property or until August 15, 2021. By such date, if
the J-obligor fails to redeem the property, then the
sheriff will issue a sheriff’s certificate of final sale
 (diff. from sheriff’s cert of auction sale - annotated
on the dorsal portion of the title)
 Once the CFS is annotated on the title of the
property after the lapse of one year to redeem the
property and there is no redemption, then the
highest bidder may be able to consolidate
ownership over the property subject of the auction
sale.
Consolidate the property - the title in the name of the J-
obligor will now be cancelled and a new title be issued in
favor of the highest bidder. If the highest bidder were the J-
creditor/obligee, then the title will be cancelled in the name of
J-obligor and a new one will be issued in the name of the J-
creditor.
IF the highest bidder is J-creditor:
 the proceeds of the auction sale will be used to
satisfy the judgment obligation (whatever the
proceeds are, it should be deducted from the J-
obligation). Logically, there will be no transfer of
money because the highest bidder is
J-obligee/creditor. If he shall shell out the money,
sa kanya rin ibibigay ni sheriff yung proceeds.
However, if the bid has an excess, in a way that it fully satisfy
the J-obligation, then the excess shall be given back to the J-
obligor.
Highest bidder is not the J-obligee:
 then the proceeds of the auction sale, less the
adminstrative expenses and the sheriff’s fees will
be turned over by the sheriff to the judgment
obligee. If enough, then it fully satisfies the
judgment. If not enough, then the judgment is not
fully satisfied and the sherriff will see to it that
there will be full satisfaction into the possibility
ofhte J-obligor paying in cash or in certified bank
check or levying enough personal and/or real
properties to fully satisfy the judgment obligation
until there is full satisfaction of the obligation.
The auction sale for purposes of exection under Rule 39 is
different from auction sale of a RP in a judicial foreclosure of
REM or in an extrajudicial foreclosure of REM.
 Auction of sale of RP under the Rules, you must
appreciate it either as an auction sale under Rule
39? Is it in pursuance of judicial foreclosure of
REM under Rules of Court? Is it pursuant to Act
3135 which is your extrajudicial foreclosure of
REM.
 (Auction sale of REM in relation to judicial
foreclosure and extrajudicial foreclosure when we
discuss Special Civil Actions. But you will be able
to observe there are certain similarities in terms of
publication and in terms of posting.)
During the redemption period when a RP is sold at public
auction for purposes of satisfying J-obligation, who owns the
civil, industrial or natural fruits of the RP if there are?
 The fruits (CIN) are all owned by the J-obligor. He
is still the owner considering that he still has the
right to redeem the RP.
That is how to execute a money judgment thru satisfaction by
levy.
----
1. Execution of Money Judgment by Immediately paying on
demand if there is cash or certified bank check or other modes
acceptable to J-obligee
2. If none, satisfaction by levy - personal, real or both
3. Garnishment of Debts and Credits.
GARNISHMENT OF DEBTS AND CREDITS
If the judgment obligor has debts and credits collectible, the
judgment obligor is a creditor in a loan, he entered into with
another person where that loan is due and demandable. The
sheriff can garnish that loan owning to the judgment obligor
from the lender who owns the loan to the J-obligor. Or credit,
such as bank deposits, financial interests, royalties,
commissions, or others which are not capable of manual
delivery.
These debts and credits are in the possession and control of
third parties, how will the sheriff be able to execute the J-
obligation thru garnishment?
a. It must issue a notice to the garnishee.
b. There must be a written report of the garnishee upon
receipt of the notice of how much is in its possession.
The report of the amount by the garnishee is very important so
that the sheriff would be appraised if he would partially or
fully execute the money judgment obligation.
What if in judgments where there is an order by the court for
the judgment of obligor to perform something because the
case is specific performance case?
Illustration: Conveyance of a RP or delivery of certain
documents such as deeds or other specific acts vesting title in
favor of the judgment obligee.
In that situation where there is judgment directing the losing
party (J-obligor) to execute a conveyance of a RP or a
personal property or to deliver other deeds/documents or to
perform any other act which would vest title in favor of the
judgment obligee and the J-obligor fails to comply. The court
will direct that the conveyance, that the delivery of deeds or
other specific acts vesting title will be done by another person
not the J-obligor.
At whose cost? J-obligor (the disobedient party). As if it were
done by the disobedient party or the J-obligor
It could be an execution of a Deed of Sale of a RP or a
Personal Property whereby the judgment obligor does not
want or did not comply with the execution of that deed of sale. (memorize, it might be asked by way of enumeration by way
In such situation, the court will order a third party to execute of quiz, exams or bar exams or it may be raised as a
for and in behalf of the judgment obligor as if the effects of hypothetical problem -- one of the properties may be used as a
which is done by the J-obligor. basis in the bar exams)

What about in a case (specific performance) whereby there is Lettered gravestones - you know the sanctity.. ---- if life is
an order to deliver a RP to the judgment obligee or that the J- sacred, what more with respect to the remains of a person and
obligee must be restituted to the RP such as in a recovery of anything in relation to the memory of a dead person which we
possession case/ unlawful detainer case/ forcible entry case? revere.
(whereby there is an order for the Defendant to vacate the
property?)
There is logic behind certain properties which are exempt
from executions.
 In that situation, the sheriff must issue a notice to the
defendant/s to vacate the premises of the property within
Questions - synch class
3 working days so that the judgment creditor shall be
restored of the possession over the property.
 Non-compliance will sanction the sheriff to oust the Thereafter, sir will discuss provisional remedies.
possessor defendant with the help of appropriate peace
officers. The sheriff and peace officers can use
reasonable force to retake the possession.

That is why in certain cases where there is ejectment suits

where there is non-compliance by the possessors to a
particular decision which has become final and executory, you
see certain dramas that are being covered by newsmen
physically ousting certain individuals in a property subject of
a recovery of possession case or accion interdictal case.

In the bar examination (2022), the question was with respect

to a person who was not named as a defendant losing party in
a judgment to be executed where it is about recovery of RP.
The question is parang nagmakaawa yung current possessor
dahil hindi naman daw siya yung defendant. (I think those are
the crucial facts in the particular question).

In that situation, is the one requesting not covered by the

judgment sought to be executed? Remember that the judgment
in these sort of judgments is -- the judgment also applies to all
persons deriving rights from the judgment obligor.
Considering that situation the one who is requesting derives
his/her rights from the judgment obligor, he is covered by the
judgment sought to be executed. He is covered with the notice
to vacate within three working days otherwise reasonable
force by the sheriff and peace officers will be used to oust the
person.

What about if in that property sought to be recovered has

improvements? Improvements are not needed by the person to
whom possession has been awarded? Can there be a motu
proprio demolition of those improvements on the property
recovered?
 NO. The removal of improvements on the property
subject of execution must be covered by a separate order
for the removal and/demolition of those structures
through a motion to remove and/demolish those
particular structures. This motion is a litiguous motion
and must follow your Rule on Motions.

PROPERTIES WHICH ARE EXEMPT FROM

EXECUTION [Rule 39, Section 13]