EFFECTIVE PUBLIC AUCTION

in the Philippines

Panelist:
Justice Japar B. Dimaampao
Court of Appeals
Manila, Philippines
 WRIT OF EXECUTION of
PERSONAL PROPERTY

Rule 39, Section 9, Rules of Court

(a) IMMEDIATE PAYMENT ON DEMAND

Judgment Obligor shall pay in cash through

(a1) Certified bank check payable to judgment obligee or
(a2) Other form of payment to judgment obligee

 If Judgment Obligee or his representative is not present to receive

payment, payment shall be made to the Executing Sheriff who
shall turn it over to the Clerk of Court which issued the writ or if
the same is not practicable, deposit it to a fiduciary account in the
nearest government depository bank of the Regional Trial Court
of the locality
 The Clerk of Court arranges the remittance of the deposit to the
account of the court that issued the Writ.

 The Clerk of Court which issued the Writ shall deliver payment to
judgment obligee.

 IN CASE OF EXCESS: return to the judgment obligor

In no case shall the executing sheriff demand payment by check
payable to him.
 Rule 39, Section 40, Rules of Court

The Court may order:

1. Any property of the judgment obligor, or money due him, not

exempt from execution, to be applied to the satisfaction of the
judgment; or,

1. Judgment obligor to pay judgment in fixed monthly

installments if it appears that his earnings are more than
necessary for the support of his family.
(b) SATISFACTION BY LEVY (if payment is not fully satisfied):

 Levy is the act/s whereby the Sheriff sets apart or appropriates a part
or whole of the property of the judgment obligor for purposes of
prospective execution sale
 The Sheriff shall levy upon the properties of the judgment obligor of
every kind and nature which may be disposed of for value and not
otherwise exempt from execution.
 Judgment obligor has the option to immediately choose which
property or part thereof may be levied upon
 If the judgment obligor does not exercise this option, the Sheriff shall
first levy personal properties, if any, then real properties if personal
properties are insufficient
 Sheriff shall sell only a sufficient portion of the real or personal
property.
(c) GARNISHMENT OF DEBTS AND CREDITS not capable of manual
delivery Sheriff may levy on debts due the judgment obligor and other
personal property not capable of manual delivery.
(The act of appropriation by the Sheriff is known as garnishment.)

Q: HOW?
A: By serving notice upon the person owing such debts or having the same in his
possession or control such credits to which the judgment obligor is entitled.

Q: WHAT is the duty of the garnishee?

A: Make a written report to the court within five (5) days from service of the
notice of garnishment stating whether or not the judgment obligor has
sufficient funds to satisfy judgment. If not sufficient, garnishee shall report
how much funds he holds for the judgment obligor.

Q: HOW delivery to the judgment obligee may be made?

A: The garnished amount in cash or certified bank check in the name of the
judgment obligee shall be delivered directly to him within 10 days from notice
on said garnishee requiring notice.
 WRIT OF EXECUTION
of REAL PROPERTY

Rule 39 Section 10 (c) (d)

The Sheriff shall demand that the person against whom the judgment for
delivery or restitution of real property is rendered and all persons claiming
rights under him to peaceably vacate the property within three (3) working
days and restore possession thereof to the judgment obligee.

 The court may order a Writ of Possession if the party obliged to deliver
possession of the property refuses to peaceably vacate and surrender
possession.

 If the property subject of execution contains improvements constructed or

planted by the judgment obligor or his agent, improvements on the real
property shall not be destroyed, demolished or removed without special order
of the court, issued upon motion of the judgment obligee after due hearing and
after he has failed to remove the same within reasonable time fixed by the
court
 RETURN OF WRIT OF EXECUTION

Rule 39, Section 14

 Writ of Execution shall be returnable to the court issuing it
immediately after judgment has been satisfied in part or full

Q: What are the effects if judgment is not satisfied in full within

30 days after receipt of writ?
A: (1) Sheriff shall report to the court and give reasons therefor;
(2) Writ of Execution shall continue in effect during the period
within which judgment may be enforced by motion; and,
(3) Sheriff shall make a report every 30 days on the proceedings
taken thereon until judgment is satisfied in full or its effectivity
expires.
 PUBLIC AUCTION
(Judicial Sale Proper)
 Procedure
1. Posting of Notice
2. Written Notice of Sale
3. Public Auction Sale
4. Procedure in Case of Excess of Deficiency
5. Adjournment of Sale
6. Proceedings Where Property is Claimed by a Third
Person
7. Remedies After Expiration of Redemption Period
 I. POSTING OF NOTICE
Personal Property Real Property

A) Posting of Notice in 3 public places preferably in in 3 public places preferably in conspicuous

conspicuous areas of municipality of city areas of municipality or city hall
hall

B) Where post office and public market in the post office and public market in the
municipality/city where sale is to take municipality/city where city is to take place
place

C) How long Perishable 20 days

reasonable time depending on: (a)
character and, (b) condition of the Written notice of sale – given to judgment obligor
property 3 days before sale

Additional Requirement
Not Perishable Sec 15 (c) Rules of Court

not less than 5 days 1. Notice of Sale of Property which must describe
property to be sold and where property is to be
sold

2. If PhP 50,000.00 or more – publication of

notice once (1x) a week for two consecutive
weeks in one newspaper of general circulation
selected by raffle, whether in English, Filipino or
major regional language published, edited and
circulated
 II. WRITTEN NOTICE OF SALE

Personal Property Real Property

A) To Whom Judgment Obligor Judgment Obligor

B) When 3 days before sale 3 days before sale

Exception: Perishable property = notice
may be given at any time before sale

C) How (Mode) same as personal service of pleadings

D) What must the notice of

sale contain

(D1) Place Rule: agreed upon by the parties Rule: agreed upon by the parties
Exception: if no agreement, where Exception: if no agreement,
the property is located Office of the Clerk of Court of the
Regional Trial Court/Metropolitan
Trial Court which issued the Writ or
as designated by the appellate
court
(D2) Date and Exact Time
Not earlier than 9 am not later than 2 Not earlier than 9 am and not later
of Sale
pm than 2 pm
 II. WRITTEN NOTICE OF SALE
Personal Property Real Property

 BEFORE scheduled date of sale,  BEFORE scheduled date of sale, Judgment

judgment obligor can stop execution by obligor can stop execution by paying
paying the judgment obligee judgment obligee

NON-COMPLIANCE OF NOTICE
REQUIREMENT

Sheriff selling without complying with notice

requirement is liable for punitive damages
in the amount of PhP 5,000.00 (approx
USD 112.36)
 III. PUBLIC AUCTION SALE
Personal Property Real Property
A) How Through public auction Through public auction
(1) must be sold within the view of those
attending
(2) in such parcels as are likely to bring the
highest price

B) To Whom Highest bidder Highest bidder

C) When At the exact date and time fixed in the At the exact date and time fixed in the
notice notice
 III. PUBLIC AUCTION SALE
Personal Property Real Property
CONDUCT OF SALE CONDUCT OF SALE
Section 19, Rule 39 Rules of Court Section 19, Rule 39 Rules of Court

When such property consists of several known lots, When sale of real property consisting of several known
judgment obligor may direct the ORDER in which lots, they must be sold separately;
personal property shall be sold
When a portion of property is being claimed by a third
person, he may require it to be sold separately.

Prohibition: Sheriff conducting the sale and his Prohibition: Sheriff conducting the sale and his deputies
deputies cannot become purchaser or be interested cannot become purchaser or be interested directly or
directly or indirectly in any purchase at such sale. indirectly in any purchase at such sale.

IN CASE OF NON-PAYMENT BY HIGHEST IN CASE OF NON-PAYMENT BY HIGHEST BIDDER

BIDDER

Section 20, 21 Officer may again resell property to the highest bidder
Officer may again resell property to the highest bidder and Sheriff is not responsible for any loss occasioned
and Sheriff is not responsible for any loss occasioned thereby
thereby

Penalty against non-paying highest bidder:

 may be ordered to pay the amount of loss with

costs and may punish him for contempt if he
disobeys the order

 If judgment obligee purchases the property and

there is no third-party claim, he need not pay
the amount of the bid if it does not exceed the
amount of his judgment. If there is, he shall
pay only the excess
 IV. IN CASE OF EXCESS OR DEFICIENCY
Personal Property Real Property
EXCESS Section 19 Rule 39 Section 19 Rule 39
 Excess of property or proceeds shall be  Excess of property or proceeds shall be
delivered to the judgment obligor or his delivered to the judgment obligor or his
authorized representative authorized representative

DEFICIENCY Section 36 Rule 39 Section 36 Rule 39

 If judgment remains unsatisfied in whole  If judgment remains unsatisfied in
or in part, the judgment obligee, at any
time after return of writ of execution is
made, is entitled to an order from the
court to require judgment obligor to
appear concerning his property and
income at a specified time and place
before the court which issued the
judgment or before a commissioner.
Proceedings may be had for the
application of property and income of the
judgment obligor towards the satisfaction
of judgment.
whole or in part, the judgment obligee,
at any time after return of writ of
execution is made, is entitled to an
order from the court to require judgment
obligor to appear concerning his
property and income at a specified time
and place before the court which issued
the judgment or before a commissioner.
Proceedings may be had for the
application of property and income of
the judgment obligor towards the
satisfaction of judgment.

Limitation: Judgment obligor is not required Limitation: Judgment obligor not required
to appear before court or commissioner to appear before court or commissioner
outside province or city where he resides outside province or city which he
or is found. resides or is found.
 V. ADJOURNMENT OF SALE
Personal Property
WHAT must be  The Sheriff making the sale must
execute and deliver to the purchaser a
delivered to CERTIFICATE OF SALE (Section 24,
purchaser? Rule 39 Rules of Court).
 Effect of issuance: Conveys to purchaser
all rights which the judgment obligor had
in such property as of the date of the
levy on execution or preliminary
attachment.
Real Property
Section 25 Rule 39 Rules of Court
 Upon sale of real property, the Sheriff
must give to the purchaser certificate
of sale containing the following:
1. Description of property sold;
2. Price paid for each distinct
lot/parcel;
3. Whole price paid by him; and,
4. Statement that right of redemption
expires one (1) year from
the date of registration
of Certificate of Sale.
Additional Requirement: Certificate must
be registered in the registry of deeds of
the place where property is located
Purpose of registration:
Unless registered, period of redemption
does not begin to run.
VI. PROCEEDINGS WHERE A PROPERTY IS CLAIMED BY THIRD PERSON
Personal Property
Section 16 Rule 39 Rules of Court
Situation contemplated:
 If a third person makes an affidavit of his
title adverse to the judgment obligor
stating his grounds of his right or title
and serves it to the Sheriff making the
levy and to judgment obligee
 Effect: Sheriff shall not be bound to keep
the property unless the judgment
obligee, on demand of the Sheriff, files a
bond approved by the court to idemnify
the 3rd party complainant (sum must not
be less than the value of the property
levied).
 No claim for damages for taking or
keeping of the property may be enforced
against the bond unless action is filed
within 120 days from filing of the bond.
Real Property
Section 16 Rule 39 Rules of Court
Situation contemplated:
 If a third person makes an affidavit of
his title adverse to the judgment obligor
stating his grounds of his right or title
and serves it to the Sheriff making the
levy and to judgment obligee
 Effect: Sheriff shall not be bound to
keep the property unless the judgment
obligee, on demand of the Sheriff, files
a bond approved by the court to
idemnify the 3rd party complainant (sum
must not be less than the value of the
property levied).
 No claim for damages for taking or
keeping of the property may be
enforced against the bond unless
action is filed within 120 days from filing
of the bond.
VII. REMEDIES AFTER REDEMPTION PERIOD LAPSES
Personal Property Real Property

(1) Revival on judgment (Section 34 Rule 39)

- NONE - – by motion in the same action if
purchaser of real property sold on
execution fails to recover possession or
is evicted therefrom on account of: (a)
irregularities in the proceedings of sale;
(b) judgment has been reversed or set
aside; (c) property is exempt from
execution; and, (d) third party has
vindicated his claim to the property

Effect: Same force and effect as an original

judgment

(1) Separate action to recover – To recover

from judgment obligee the amount paid at
the judicial sale

NOTE: It is not the Certificate of Sale but the

Deed of Sale executed by the Sheriff at
the expiration of the period of redemption
which is constitutes as effective
conveyance of property.
Thank you and God Bless!!!