Concept of "Legitime" in Philippine Law

Legitime refers to the portion of a deceased person’s estate that is reserved by law for compulsory heirs and cannot be freely disposed of by the decedent through a will. It is a mechanism to protect the rights of certain heirs, ensuring they receive a minimum share of the inheritance.

Law Governing Legitime

Legitime is primarily governed by the Civil Code of the Philippines, particularly Articles 886 to 914 under Title IV (Succession), Chapter 3 (Provisions Common to Testamentary and Legal Succession), and Section 5 (Legitime).

Who Are the Compulsory Heirs?

According to Article 887 of the Civil Code, the following are considered compulsory heirs:

1. Legitimate children and descendants (e.g., grandchildren, if their parent predeceased the decedent)

2. Legitimate parents and ascendants (if the decedent has no children)

3. The surviving spouse

4. Illegitimate children (who have a right to a legitime but receive a reduced share compared to legitimate children)

How Legitime Is Applied

The legitime is a fixed portion of the estate that the decedent cannot freely dispose of. The remaining estate is called the free portion, which the testator may distribute according to his will.

1. If the decedent has legitimate children:

• The legitime of legitimate children is 1/2 of the total estate, to be divided equally among them.

• The surviving spouse gets 1/4 of the total estate (equivalent to the share of one legitimate child).

• Illegitimate children get 1/2 of the share of a legitimate child each.

2. If the decedent has no children but has surviving parents or ascendants:

• The legitime of parents (or ascendants) is 1/2 of the total estate.

• The surviving spouse gets 1/2 of the total estate.

3. If the decedent has only a surviving spouse:

• The legitime of the spouse is 1/2 of the total estate.

4. If the decedent has only illegitimate children:

• The illegitimate children receive 1/2 of the total estate, divided among them.

• The surviving spouse gets 1/2 of the total estate.

Restrictions on Disposition of Property

A testator cannot will away the legitime of compulsory heirs, either through donations or by testamentary disposition. If a will reduces the legitime, the heirs can seek a reduction of the will’s provisions to comply with the mandatory legitime rules.

Disinheritance and Legitime

A compulsory heir may be disinherited, but only under specific grounds stated in the Civil Code (Articles 915–923), such as attempted murder against the testator, maltreatment, or refusal to provide support. If a compulsory heir is validly disinherited, his legitime goes to the other compulsory heirs.

Source: Ziggurat Real Estate

Sale of Mortgaged Property to Creditor Per Se Is Not Prohibited

When dealing with mortgaged properties, many people assume that selling such assets to the creditor is legally prohibited. However, this is not necessarily the case. Under the right legal framework, the sale of a mortgaged property to the creditor is allowed, provided that it does not violate laws on foreclosure, dation in payment, or the prohibition against pactum commissorium.

How Mortgages Can Be Paid

A mortgage is a security interest granted over a property to secure the performance of an obligation, typically the repayment of a loan. The debtor can satisfy the mortgage in several ways:

1. Full Payment of the Loan – The most straightforward way to release the mortgage is by repaying the debt in full. Once the debt is fully paid, the creditor must execute a release of mortgage, which should then be registered with the relevant land registry.

2. Foreclosure Sale – If the debtor fails to pay, the creditor may initiate a foreclosure process to sell the property, either through a judicial or extrajudicial foreclosure proceeding. The proceeds from the sale are then used to settle the outstanding debt.

3. Dation in Payment (Dacion en Pago) – Instead of paying in cash, the debtor may transfer ownership of the mortgaged property to the creditor in satisfaction of the debt. This is a voluntary arrangement between both parties and is valid as long as it does not constitute a disguised pactum commissorium.

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Relationship Between Dation in Payment and Pactum Commissorium

Dation in Payment (Dacion en Pago)

Dation in payment occurs when the debtor transfers ownership of the mortgaged property to the creditor in exchange for the extinguishment of the debt. This is a negotiated and consensual agreement between both parties. The key difference between dation in payment and a foreclosure sale is that in dation, the debtor willingly conveys ownership as an alternative means of settling the obligation.

For the dation to be valid, it must be agreed upon by both parties and must not be forced upon the debtor. It is a lawful and commonly used method of settling obligations when cash payment is not feasible.

Pactum Commissorium: The Prohibited Clause

Pactum commissorium, on the other hand, is an illegal provision in a mortgage or pledge that allows the creditor to automatically appropriate the mortgaged property in case of non-payment. This is prohibited because it is considered oppressive and inequitable to the debtor, as it bypasses the due process of foreclosure or voluntary dation.

For a transaction to be considered a prohibited pactum commissorium, two elements must be present:

1. A security arrangement (such as a mortgage or pledge).

2. An automatic transfer clause in favor of the creditor upon default.

Unlike dation in payment, which is voluntarily agreed upon after default, pactum commissorium is a pre-arranged forfeiture mechanism that is deemed invalid under the law.

Conclusion

The sale of a mortgaged property to the creditor is not inherently prohibited. It can be done through legitimate means, such as dation in payment or foreclosure. However, what is illegal is the automatic appropriation of the property by the creditor without due process, as seen in pactum commissorium. Understanding these legal concepts helps ensure that mortgage transactions remain fair and within the bounds of the law.

Source: Ziggurat Real Estate

Nuisance Per Accidens Cannot Be Summarily Abated

Legal Framework and Application

In the realm of property and environmental law, the concept of "nuisance" plays a crucial role in balancing individual rights with public welfare. One of the key distinctions in nuisance law is between nuisance per se and nuisance per accidens. While nuisance per se—an act or condition inherently illegal or harmful—can be summarily abated by authorities, nuisance per accidens (or nuisance in fact) cannot be removed without due process. This blog post explores the legal framework governing nuisance per accidens and its practical applications.

Understanding Nuisance Per Accidens

A nuisance per accidens is an act, structure, or use of property that becomes a nuisance due to its circumstances or effects rather than its inherent nature. For instance, a factory producing loud noise and pollution might not be illegal in itself but can be deemed a nuisance based on its impact on the surrounding community.

Because the classification of nuisance per accidens depends on factual determinations, it requires judicial evaluation before any enforcement action can be taken. Unlike nuisance per se, which can be summarily abated due to its inherent unlawfulness, nuisance per accidens necessitates proper legal proceedings to ensure fairness and prevent arbitrary government actions.

Legal Framework: Due Process and Judicial Determination

1. Constitutional Protections

The principle that nuisance per accidens cannot be summarily abated stems from constitutional due process rights. In the Philippines, the right to property is protected under the 1987 Constitution, specifically under Article III, Section 1, which states that "No person shall be deprived of life, liberty, or property without due process of law." Similar protections exist in other jurisdictions, ensuring that government actions affecting property rights follow legal procedures.

2. Judicial Precedents

Philippine jurisprudence has consistently held that a nuisance per accidens must be determined by a competent court before any abatement measures are undertaken. Courts evaluate factors such as the nature of the alleged nuisance, its impact on public welfare, and potential remedies. In contrast, nuisance per se, such as illegal structures blocking public roads, may be abated without court intervention.

3. Legislative and Local Government Authority

Under the Local Government Code (Republic Act No. 7160), local governments are empowered to regulate nuisances within their jurisdictions. However, this authority does not extend to summarily abating nuisance per accidens without a proper hearing. Any attempt to do so may be challenged as a violation of due process.

Practical Applications: How Courts Handle Nuisance Per Accidens Cases

Given the need for judicial determination, parties affected by a nuisance per accidens must file a complaint before the courts. The process typically involves:

1. Filing a Case – Affected parties must present evidence demonstrating that a specific activity or property use constitutes a nuisance based on its effects.

2. Court Evaluation – The court examines whether the nuisance claim is valid, taking into account expert testimony, environmental studies, and community impact.

3. Remedies and Enforcement – If the court determines that a nuisance exists, it may order remedies such as fines, restrictions, or even closure of operations, depending on the severity of the nuisance.

Conclusion

The distinction between nuisance per se and nuisance per accidens is crucial in protecting property rights while maintaining public order. While authorities can summarily abate nuisance per se, they must follow due process in addressing nuisance per accidens. This ensures that actions taken against property owners are justified and legally sound, preventing arbitrary government interference. Understanding these legal principles is essential for property owners, businesses, and local government units navigating nuisance-related disputes.

Source: Ziggurat Real Estate