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EXECUTION,

SATISFACTION
AND EFFECT
OF JUDGMENT
Rule 39 Section 13 - 18 and 45-46
Represented by: Francis Therese Rosales
PROPERTY
EXEMPT FROM
EXECUTION

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EXECUTION,
01 Judgment Obligor’s Family Home
SATISFACTION AND
NATURE OF FAMILY HOME
EFFECT OF JUDGMENTS Real right
RULE 39 SECTION 13 Inalienable
free from attachment
dwelling place from on which is situated
right to enjoy such properties
Property exempt from execution. — Except as otherwise
cannot be seized by creditors
expressly provided by law, the following property, and no other,
shall be exempt from execution:
Deemed constituted:
a. The judgment obligor's family home as provided by law, or the If there is a proof that the alleged family home was constituted jointly by the husband and
homestead in which he resides, and land necessarily used in wife or by an unmarried head of a family; and
connection therewith; It must be the house where they and their family actually reside and the lot on which it is
situated.
b. Ordinary tools and implements personally used by him in his
has an actual value not exceeding P300,000 in urban areas and P200,000 in rural areas.
trade, employment, or livelihood;
c. Three horses, or three cows, or three carabaos, or other beasts of The family home is exempt from execution, except:
burden, such as the judgment obligor may select necessarily used
by him in his ordinary occupation; (1) for non-payment of taxes;
(2) for debts incurred prior to the constitution of the family home;
d. His necessary clothing and articles for ordinary personal use, (3) for debts secured by mortgages on the premises before or after its constitution; and
excluding jewelry; (4) for debts arising from the construction of the building (Art. 155, FC)

e. Household furniture and utensils necessary for housekeeping,


and used for that purpose by the judgment obligor and his family,
such as judgment obligor may select, of a value not exceeding one
hundred thousand pesos;
EXECUTION,
01 Judgment Obligor’s Family Home
SATISFACTION AND
EFFECT IF IT EXCEEDS THE ACTUAL VALUE
EFFECT OF JUDGMENTS When a creditor whose claim is not among those mentioned in Article 155 obtains a
RULE 39 SECTION 13 judgment in his favor and has reasonable grounds to believe that the family home is
worth more than the maximum amount fixed in Article 157, he may apply to the court
which rendered the judgment for an order directing the sale of the property under
f. Provisions for individual or family use sufficient for four months; execution. (Article 160 of Family Code. )
g. The professional libraries and equipment of judges, lawyers,
physicians, pharmacists, dentists, engineers, surveyors, clergymen, The court shall so order if it finds that the actual value of the family home exceeds the
teachers, and other professionals, NOT EXCEEDING THREE maximum amount allowed by law as of the time of its constitution. If the increased
HUNDRED PESOS in value; actual value exceeds the maximum amount allowed by law in Article 157 and results
h. One fishing boat and accessories NOT EXCEEDING THE from subsequent voluntary improvements introduced by the person or persons
TOTAL VALUE OF ONE HUNDRED THOUSAND PESOS owned constituting the family home, by the owner or owners of the property, or by any of the
by a fisherman and by the lawful use of which he earns his beneficiaries, the same rule and procedure shall apply.
livelihood;
i. So much of the salaries, wages or earnings of the judgment
obligor for his personal services within the four months preceding
the levy as are necessary for the support of his family;
j. Letter gravestones;
k. Monies, benefits, privileges, or annuities accruing or in any
manner growing out of any LIFE INSURANCE
l. The right to receive legal support, or money or property
obtained such support, or any pension or gratuity from the
government;
m. Properties specially exempted by law.
RETURN OF WRIT
OF EXECUTION

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EXECUTION, WRIT OF EXECUTION AFTER
SATISFACTION
SATISFACTION AND
EFFECT OF JUDGMENTS The writ of execution shall be returnable to the court issuing it
RULE 39 SECTION 14 immediately after the judgment has been satisfied in part or in
full.
Section 14. Return of writ of execution. — The writ
of execution shall be returnable to the court issuing
it immediately after the judgment has been
satisfied in part or in full. If the judgment cannot Nature of the 30 day period
be satisfied in full within thirty (30) days after his
receipt of the writ, the officer shall report to the
Imposition of 30 day period is Mandatory as a rule
court and state the reason therefor. Such writ shall
continue in effect during the period within which
the judgment may be enforced by motion. The
officer shall make a report to the court every thirty
(30) days on the proceedings taken thereon until
the judgment is satisfied in full, or its effectivity Voluntary Payments from the Parties
expires. The returns or periodic reports shall set
forth the whole of the proceedings taken, and shall allowed to receive any voluntary payments from the parties and
be filed with the court and copies thereof promptly he cannot just unilaterally demand sums of money from a party-
furnished the parties. (11a) litigant without observing the proper procedural steps.
EXECUTION, Lifetime of the Writ of Execution
SATISFACTION AND
EFFECT OF JUDGMENTS The writ shall continue in effect during the period within
which the judgment may be enforced by motion.
RULE 39 SECTION 14 The writ is enforceable within the five-year period from
entry of judgment within that period, the writ may be
Section 14. Return of writ of execution. — The writ
enforced by motion.
of execution shall be returnable to the court issuing
it immediately after the judgment has been
satisfied in part or in full. If the judgment cannot RETURN OF WRIT OF EXECUTION
be satisfied in full within thirty (30) days after his
receipt of the writ, the officer shall report to the
court and state the reason therefor. Such writ shall When the return of the writ of execution shows that the judgment
is unsatisfied, the judgment obligee is entitled to an order from
continue in effect during the period within which
the court which rendered the judgment:
the judgment may be enforced by motion. The
Order shall require the judgment obligor to appear and be
officer shall make a report to the court every thirty
examined concerning his property and income before the
(30) days on the proceedings taken thereon until
court or commissioner appointed by the court
the judgment is satisfied in full, or its effectivity However, the judgment obligor cannot be required to appear
expires. The returns or periodic reports shall set before a court or commissioner outside the province or city in
forth the whole of the proceedings taken, and shall which such obligor resides or is found.
be filed with the court and copies thereof promptly
furnished the parties. (11a) A Person, corporation, or other juridical entity, indebted to the
judgment debtor may, by an order, be required to appear beforet
he court or a commissioner appointed by it, at a time and place
within the province or city where such debtor resides or is found,
and be examined concerning the same.
EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS
Rule 39 Section 14

Duty of Officer

The duty of the officer in the execution of a writ is purely ministerial:


he is to execute the order of the court strictly to the letter.
he has no discretion whether to execute the judgment or not.
he is mandate to uphold the majesty of the law as embodied in the
decision (Raut-raut vs. Gaputan A.M. No. P-14-3214, 14
September 2015)

it is the duty of the Officer to report to the court and state the reason
therefor, if the judgment cannot be satisfied in full within 30 days after
his receipt of the writ.
Once the writ is placed in the hands of the sheriff, he is obligated to
execute the order of the court strictly to the letter and with reasonable
promptness. (Olympia-Geronilla vs. Montemayor, Jr., A.M. No. P-17-
3676, 05 June 2017)

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WRIT OF EXECUTION

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WRIT OF EXECUTION

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SALE AND
REDEMPTION OF
REAL PROPERTY

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EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS
Rule 39 Section 15

Section 15. Notice of sale of property on execution. — Before the sale of property on execution, notice thereof must be
given as follows:
(a) In case of perishable property, by posting written notice of the time and place of the sale in three (3) public places,
preferably in conspicuous areas of the municipal or city hall, post office and public market in the municipality or city where
the sale is to take place, for such time as may be reasonable, considering the character and condition of the property;
(b) In case of other personal property, by posting a similar notice in the three (3) public places above-mentioned for not less
than five (5) days;
(c) In case of real property, by posting for twenty (20) days in the three (3) public places abovementioned a similar notice
particularly describing the property and stating where the property is to be sold, and if the assessed value of the property
exceeds fifty thousand (P50,000.00) pesos, by publishing a copy of the notice once a week for two (2) consecutive weeks in one
newspaper selected by raffle, whether in English, Filipino, or any major regional language published, edited and circulated or,
in the absence thereof, having general circulation in the province or city;
(d) In all cases, written notice of the sale shall be given to the judgment obligor, at least three (3) days before the sale, except
as provided in paragraph (a) hereof where notice shall be given the same manner as personal service of pleadings and other
papers as provided by section 6 of Rule 13.
The notice shall specify the place, date and exact time of the sale which should not be earlier than nine o'clock in the morning
and not later than two o'clock in the afternoon. The place of the sale may be agreed upon by the parties. In the absence of such
agreement, the sale of the property or personal property not capable of manual delivery shall be held in the office of the clerk
of court of the Regional Trial Court or the Municipal Trial Court which issued the writ of or which was designated by the
appellate court. In the case of personal property capable of manual delivery, the sale shall be held in the place where the
property is located. (18a)

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EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS
Rule 39 Section 15

Before the sale of property on execution notice of sale pf perishable property may be given
by:

1. Posting written notice of the time and place of the sale in three public places, preferably in conspicuous areas of the municipal or
city hall, post office and public market in the municipality or city where the sale is to take place; and
2. For such time as may be reasonable, considering the character and condition of the property.

Upon a sale of real property:

1. The officer must give to the purchaser a certificate of sale. Such certificate must be registered in the registry of deeds of
the place where the property is situated.

1. The real property sold may be redeemed from the purchaser, at any time within one year from the date of the
registration of the certification of sale.
a. If there are other creditors having a lien on the property, the property so redeemed may again be redeemed within
60 days from the last redemption.

1. The property may be redeemed by the judgment obligor, or his successor in interest or by a creditor having a
lien by virtue of an attachment, judgment or mortgage on the property sold, subsequent to the lien under which the
property was sold. Such redeeming creditor is called a redemptioner.

1. The right of redemption has reference only to real, not personal property.

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EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS
Rule 39 Section 15

EFFECT IF NO REDEMPTION IS MADE

If no redemption is made within one year from the date of the registration of the
certificate of sale, the purchases is entitled to a conveyance and
possession of the property; or if so redeemed whenever 60 days have elapsed
and no other redemtpion has been made, and notice thereof given, the last
redemtpioner is entitled to the conveyance and possession of the property.

Upon the expiration of the right of redemption, the purchaser or


redemptioner shall be substituted to and acquire all the rights, title,
interest and claim of the judgment obligor to the property as of the time of the
levy.

The possesion of the property shall be given to the purchaser or last


redemptioner by the same officer unless a third party is actually holding the
property adverse to the judgment debtor.

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NOTICE OF SALE

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THIRD PARTY
CLAIM

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EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS
Rule 39 Section 16

Section 16. Proceedings where property claimed by third person. — If the property levied on is claimed by
any person other than the judgment obligor or his agent, and such person makes an affidavit of his title
thereto or right to the possession thereof, stating the grounds of such right or title, and serves the same
upon the officer making the levy and copy thereof, stating the grounds of such right or tittle, and a serves the
same upon the officer making the levy and a copy thereof upon the judgment obligee, the officer shall not be
bound to keep the property, unless such judgment obligee, on demand of the officer, files a bond approved
by the court to indemnity the third-party claimant in a sum not less than the value of the property levied on.
In case of disagreement as to such value, the same shall be determined by the court issuing the writ of
execution. No claim for damages for the taking or keeping of the property may be enforced against the bond
unless the action therefor is filed within one hundred twenty (120) days from the date of the filing of the
bond.
The officer shall not be liable for damages for the taking or keeping of the property, to any third-party
claimant if such bond is filed. Nothing herein contained shall prevent such claimant or any third person
from vindicating his claim to the property in a separate action, or prevent the judgment obligee from
claiming damages in the same or a separate action against a third-party claimant who filed a frivolous or
plainly spurious claim.
When the writ of execution is issued in favor of the Republic of the Philippines, or any officer duly
representing it, the filing of such bond shall not be required, and in case the sheriff or levying officer is sued
for damages as a result of the levy, he shall be represented by the Solicitor General and if held liable
therefor, the actual damages adjudged by the court shall be paid by the National Treasurer out of such funds
as may be appropriated for the purpose. (17a)

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EXECUTION, SATISFACTION AND EFFECT OF
JUDGMENT
Rule 39 Section 16

PROCEEDINGS WHEN PROPERTY LEVIED UPON IS


CLAIMED BY THIRD PERSONS; TERCERIA

The power of a court in executing judgments extends only to properties


belonging to the judgment debtor alone.
An execution can be issued only against a party
The duty of the sheriff is to levy the property of the judgment debtor
and not that of a third person

A person, not a party to the action, claiming a property levied upon may
execute an affidavit of his title or right of possession over the property.
Such affidavit must state the grounds of such right or title
The affidavit shall be served upon the officer making a levy and a copy
thereof must also be served upon the officer making a levy and a copy
thereof must also be serv ed upon the judgment obligee.
EXECUTION, SATISFACTION AND EFFECT OF
JUDGMENT
Rule 39 Section 16

PROCEEDINGS WHEN PROPERTY LEVIED UPON IS


CLAIMED BY THIRD PERSONS; TERCERIA

This remedy of the claiming party is also called “terceria”


Serve with the affidavit plus filing of bond approved by the court
Officer not liable of damages to third party claimant
Nothing shall prevent the third person from vindicating his claim
to the property in a SEPARATE ACTION.
Separate action includes recovery of the possession as well as
damages resulting from the wrongful seizure despite third-
party claim.
It may be brought against the sheriff and such other parties
(judgment creditor) as may be alleged to have colluded with
the sheriff in the wrongful execution proceeddings.
EXECUTION, SATISFACTION AND EFFECT OF
JUDGMENT
Rule 39 Section 16

PROCEEDINGS WHEN PROPERTY LEVIED UPON IS


CLAIMED BY THIRD PERSONS; TERCERIA

If the property levied on its claimed by any person other


than the judgment obligor or his agent, such person
shall:
Make an affidavit of his title thereto or right to the possession
thereof;
State the grounds of such or title;
Serve the same upon the officer making the levy; and
Serve a copy thereof upon the judgment oblige.
EXECUTION, SATISFACTION AND EFFECT OF
JUDGMENT
Rule 39 Section 16

PROCEEDINGS WHEN PROPERTY LEVIED UPON IS


CLAIMED BY THIRD PERSONS; TERCERIA

TERCERIA OR THIRD PARTY


Issuance of Certificate of Sale to the purchaser
Redemption period of 1 year from the date of registration of the
certification of sale
The property may be redeemed by the judgment obligor, or his
successor in interest or by a creditor having a lien by virtue of an
attachment, judgment or mortgage on the property sold,
subsequent to the lien under which the property was sold. Such
redeeming creditor is called a redemptioner.
The right of redemption has reference only to real, not personal
property.
ENFORCEMENT
MEASURES

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EXECUTION, SATISFACTION AND
EFFECT OF JUDGMENT Rule 39 Se. 17

Section 17. Penalty for selling without notice, or removing


or defacing notice. — An officer selling without the notice
prescribed by section 15 of this Rule shall be liable to pay punitive
damages in the amount of five thousand (P5,000.00) pesos to any
person injured thereby, in addition to his actual damages, both to
be recovered by motion in the same action; and a person willfully
removing or defacing the notice posted, if done before the sale, or
before the satisfaction of the judgment if it be satisfied before the
sale, shall be liable to pay five thousand (P5,000.00) pesos to any
person injured by reason thereof, in addition to his actual damages,
to be recovered by motion in the same action. (19a)
EXECUTION, SATISFACTION AND
EFFECT OF JUDGMENT Rule 39 Se. 18

Section 18. No sale if judgment and costs paid. — At any


time before the sale of property on execution, the judgment obligor
may prevent the sale by paying the amount required by the
execution and the costs that have been incurred therein. (20a)
SATISFACTION and
SURETY
BOUNDARIES

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EXECUTION, SATISFACTION AND
EFFECT OF JUDGMENT Rule 39 Sec. 45
Section 45. Entry of satisfaction with or without
admission. — Whenever a judgment is satisfied in fact, or
otherwise than upon an execution on demand of the
judgment obligor, the judgment obligee or his counsel must
execute and acknowledge, or indorse an admission of the
satisfaction as provided in the last preceding section, and
after notice and upon motion the court may order either the
judgment obligee or his counsel to do so, or may order the
entry of satisfaction to be made without such admission.
(47a)
Conditions for Entry of Satisfaction
Judgment must be satisfied in fact, or by means
other than execution upon demand of the judgment
obligor

Responsibilities of Judgment Obligee or Counsel


The judgment obligee or their counsel must execute
and acknowledge, or endorse an admission of
satisfaction as per the preceding section.

Court Intervention
Upon notice and motion, the court may order the
judgment obligee or counsel to execute the
admission of satisfaction.

Alternatively, the court may order the entry of


satisfaction to be made without such admission.
EXECUTION, SATISFACTION AND
EFFECT OF JUDGMENT Rule 39 Sec. 46
Section 46. When principal bound by judgment
against surety. — When a judgment is rendered against a
party who stands as surety for another, the latter is also
bound from the time that he has notice of the action or
proceeding, and an opportunity at the surety's request to
join in the defense. (48a)
Scope of Liability
A judgment rendered against a party acting as
surety for another also binds the principal.

Notice Requirement
The principal becomes bound from the moment
they receive notice of the legal action or proceeding.

Opportunity to Join Defense


The principal has the right, upon the surety's
request, to join in the defense proceedings.

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