In Cabang v. Basay, the Supreme Court addressed whether a family home, built on land not owned by the family, could be exempt from execution. The Court ruled that the exemption from execution does not apply because the family home must be established on property owned by the family. This means that even if a family resides in a house for a long time, it cannot claim exemption from execution if the land belongs to someone else.

Building Castles on Borrowed Land: Can a Family Home Claim Stand on Another’s Property?

The case began when Mr. & Mrs. Basay, having purchased a parcel of land (Lot No. 7777) in Molave, Zamboanga del Sur, filed a complaint to recover the property from the Cabangs, who had been occupying it. Although the Cabangs had been in continuous possession since 1956, it was later discovered that they were actually occupying Lot No. 7777, which was owned by the Basays, not the adjacent Lot No. 7778 that they believed they possessed.

After a series of appeals, the Court of Appeals declared the Basays entitled to possession of the land. The Supreme Court affirmed this decision, and the case was remanded to the trial court to determine the rights of the Cabangs concerning improvements they had made on the property. During these proceedings, the Cabangs claimed their houses on the land were exempt from execution because they constituted a family home. The trial court initially agreed, but the Court of Appeals reversed, leading to this petition before the Supreme Court.

The central issue before the Supreme Court was whether the residential houses of the Cabangs, built on land owned by the Basays, could be considered exempt from execution as a family home. The Court emphasized that a final and executory judgment can no longer be modified, especially if the modification attempts to introduce new issues or theories that were not previously raised. Here, the Basays had already been declared the rightful owners of the land in a prior ruling. The principle of immutability of judgment dictates that once a decision becomes final, it is binding and unalterable.

Building on this principle, the Supreme Court highlighted the requirements for constituting a family home. According to Article 153 of the Family Code, “The family home is deemed constituted 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.” However, as pointed out in Kelley, Jr. v. Planters Products, Inc., the family home must be part of the properties of the absolute community or the conjugal partnership, or of the exclusive properties of either spouse with the latter’s consent, or on the property of the unmarried head of the family.

The family home must be established on the properties of (a) the absolute community, or (b) the conjugal partnership, or (c) the exclusive property of either spouse with the consent of the other. It cannot be established on property held in co-ownership with third persons. However, it can be established partly on community property, or conjugal property and partly on the exclusive property of either spouse with the consent of the latter.

The Supreme Court found that the Cabangs’ claim failed because the land on which their houses stood was owned by the Basays. Since the land was not owned by the Cabangs, it could not be considered a family home exempt from execution. The Court further stated that the issue was a ploy meant to forestall the enforcement of an otherwise final and executory decision.

FAQs

What was the key issue in this case?	The key issue was whether a family home built on land owned by another party could be exempt from execution.
Who owned the land in dispute?	The land, Lot No. 7777, was owned by Mr. and Mrs. Guillermo Basay.
What was the Cabangs’ claim?	The Cabangs claimed that the houses they built on the land were their family homes and, therefore, exempt from execution.
What did the Court rule about the family home claim?	The Court ruled that because the Cabangs did not own the land, their houses could not be considered family homes exempt from execution.
What is the requirement for a property to be considered a family home?	For a property to be considered a family home, it must be owned by the family residing there, whether through absolute community, conjugal partnership, or exclusive property.
What happens when a final court decision is made?	Once a judgment becomes final and executory, it can no longer be modified, even if meant to correct erroneous conclusions.
Why was the trial court’s initial decision reversed?	The trial court’s initial decision was reversed because it went beyond its duty of executing the judgment and considered new, extraneous issues.
What is the main principle the Court emphasized in this case?	The Court emphasized that a family home must be established on property owned by the family claiming the exemption.

The Supreme Court’s decision in Cabang v. Basay clarifies that ownership is a fundamental requirement for claiming family home exemption. This ruling reinforces the principle that rights to property are intrinsically linked to ownership and cannot be claimed on land owned by others. Understanding property rights is crucial, and this case serves as a reminder of the importance of legal ownership in claiming exemptions or privileges related to property.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Simeon Cabang, Virginia Cabang and Venancio Cabang Alias “Dondon” vs. Mr. & Mrs. Guillermo Basay, G.R. No. 180587, March 20, 2009