RULE 39 - EXECUTION, SATISFACTION, AND EFFECT
OF JUDGMENTS
Section 1: Execution Upon Judgments or Final Orders
Key Points:
1. A judgment or final order can be executed as a matter of right when no appeal is filed
within the allowed period.
2. If an appeal is properly filed and later resolved, execution can be requested from the
court of origin.
3. The appellate court may also order execution if justice requires it.
Example:
John wins a case against Mark for unpaid rent. The court orders Mark to pay ₱500,000.
• If Mark does not appeal within the prescribed time, John can request execution, and the
court will enforce the judgment.
• If Mark appeals but loses, John can apply for execution by presenting a certified copy
of the judgment to the court of origin.
• If there are special circumstances, the appellate court can direct the lower court to issue a
writ of execution.
Section 2: Discretionary Execution
Key Points:
1. Execution before an appeal is decided is not automatic—the court has discretion to
allow it.
2. The prevailing party must file a motion, and the trial court must still have jurisdiction
over the case.
3. If the trial court has lost jurisdiction, the motion must be filed in the appellate court.
4. Execution pending appeal requires good reasons stated in a special order.
(b) Execution of Several, Separate, or Partial Judgments:
• If a case has multiple parts, one part of the judgment can be executed while another is
still under appeal.
Example:
Lisa wins a lawsuit where Peter must:
• Pay her ₱1,000,000 in damages.
• Transfer ownership of a house.
If Peter appeals the money judgment but not the house transfer, Lisa can request partial
execution for the house transfer while waiting for the appeal on the money judgment.
Section 3: Stay of Discretionary Execution
Key Points:
1. If execution pending appeal is granted, the losing party can stop it by posting a
supersedeas bond.
2. The bond guarantees that if the appeal is lost, the judgment will still be fully satisfied.
3. The bond may be enforced against the surety if necessary.
Example:
• Mark loses a case and is ordered to pay ₱2 million. He files an appeal but execution is
granted.
• To stop execution, he posts a bond covering the ₱2 million.
• If he loses the appeal, the bond is used to satisfy the judgment.
Section 4: Judgments Not Stayed by Appeal
Key Points:
• Some judgments cannot be stopped by appeal, including:
1. Injunctions (court orders stopping actions).
2. Receivership (court appoints a neutral party to manage property).
3. Accounting (orders for financial audits).
4. Support (e.g., child/spousal support).
• However, the appellate court may suspend, modify, or restore these judgments.
Example:
• Anna wins a child support case against Ben, and the court orders Ben to pay ₱10,000 per
month.
• Even if Ben appeals, the payments must continue unless the appellate court orders
otherwise.
Section 5: Effect of Reversal of Executed Judgment
Key Points:
• If a judgment is executed but later reversed, the court can order:
o Restitution (return of property/money).
o Reparation of damages (compensation for losses due to execution).
Example:
• Chris is ordered to pay David ₱500,000, and the court executes it.
• Later, on appeal, the higher court reverses the ruling.
• The lower court orders David to return the ₱500,000 to Chris.
Section 6: Execution by Motion or Independent Action
Key Points:
1. Execution must be done within 5 years from entry of judgment via motion.
2. After 5 years, execution requires a separate action before the statute of limitations
expires.
3. If judgment is revived, it can be executed for another 5 years via motion.
Example:
• Maria wins a case in 2018 but forgets to enforce it.
• In 2024, she can no longer enforce it by motion. Instead, she must file a new case to
revive the judgment.
Section 7: Execution in Case of Death of a Party
Key Points:
• If the winner (judgment obligee) dies → executor/heir can enforce execution.
• If the loser (judgment obligor) dies → execution is against their estate/heirs.
• If property was already levied, the sale proceeds and the balance goes to the heirs.
Example:
• The court orders Brian to return land to Emma.
• Emma dies before execution. Her heirs can still enforce the judgment.
Section 8: Issuance, Form, and Contents of a Writ of Execution
Key Points:
A writ of execution must:
1. Be issued in the name of the Republic of the Philippines.
2. Include case details and judgment summary.
3. Direct the sheriff to enforce it by:
o Seizing real/personal property.
o Selling seized assets.
o Delivering property to the winning party.
o Stating the exact amount of interest, costs, and damages.
Example:
• The court orders Mark to return a stolen car to Sarah.
• The writ of execution instructs the sheriff to retrieve and deliver the car to Sarah.
Section 9: Execution of Judgments for Money
(a) Immediate Payment on Demand:
• Sheriff first demands full payment in cash, certified check, or any accepted mode.
• Payment is given directly to the winning party or court.
(b) Satisfaction by Levy:
• If the losing party cannot pay, the sheriff seizes property and sells it to cover the debt.
• The debtor chooses which property to sell. If they refuse, the sheriff decides.
(c) Garnishment of Debts and Credits:
• The court can freeze bank accounts, commissions, or other credits.
• Banks or third parties must report and transfer the funds to the court.
Example:
• Alex owes Bella ₱200,000. He refuses to pay.
• The sheriff garnishes Alex’s bank account and transfers the funds to Bella.
Execution of Judgments for Specific Acts
Section 10. Execution of Judgments for Specific Act
(a) Conveyance, Delivery of Deeds, or Other Specific Acts; Vesting Title
If a judgment requires a party to execute a conveyance of land or personal property, deliver
deeds or documents, or perform any specific act, and the party fails to comply within the given
time, the court may appoint another person to execute the act at the expense of the disobedient
party. Once completed, the act is deemed as if performed by the obligated party.
Example: If a seller refuses to transfer land title despite a court order, the court may authorize an
officer to sign the deed of conveyance on behalf of the seller.
(b) Sale of Real or Personal Property
If a judgment orders the sale of real or personal property, an authorized officer shall conduct the
sale and apply the proceeds as directed by the judgment.
Example: If a debtor fails to pay a loan and the court orders the sale of their vehicle to satisfy the
debt, the sheriff will auction the car and use the proceeds to pay the creditor.
(c) Delivery or Restitution of Real Property
An officer must demand the party in possession to vacate the property within three (3) working
days. If they refuse, the officer may use reasonable force with law enforcement assistance.
Example: If a tenant unlawfully remains in a rental property after eviction, the sheriff will
forcibly remove them and return possession to the landlord.
(d) Removal of Improvements on Property Subject of Execution
If the property contains improvements made by the judgment obligor, the officer cannot remove
or demolish them unless a court order is issued after a hearing. The obligor must be given time to
remove the improvements voluntarily.
Example: If a tenant constructs a shed on rented land and is later evicted, they must remove it
within a court-specified period before the sheriff demolishes it.
(e) Delivery of Personal Property
If a judgment orders the delivery of personal property, an officer shall seize and hand over the
property to the rightful party.
Example: If a person refuses to return a borrowed painting despite a court order, the sheriff will
retrieve and deliver it to the rightful owner.
Section 11. Execution of Special Judgments
If a judgment requires an act not covered by previous sections, a certified copy shall be attached
to the writ of execution and served on the obligated party. Noncompliance may result in
contempt charges.
Example: If a company is ordered to reinstate a wrongfully dismissed employee but refuses, the
court may enforce compliance through penalties.
Section 12. Effect of Levy on Execution as to Third Person
Levying execution creates a lien over the obligor’s interest in the property, subject to existing
liens and encumbrances.
Example: If a debtor's car is subject to execution but is under a mortgage, the lender’s claim
takes precedence over the judgment obligee’s claim.
Section 13. Property Exempt from Execution
Certain properties are protected from execution, including:
• Family home
• Essential tools for livelihood
• Basic household furniture
• Provisions for four months
• Professional equipment
• Legal support payments and pensions
Example: If a carpenter owes money, their essential work tools cannot be seized to satisfy a
judgment.
Section 14. Return of Writ of Execution
The officer must return the writ once the judgment is satisfied. If full satisfaction is not achieved
within 30 days, the officer must report progress every 30 days until completion.
Example: If a debtor pays only half the owed amount, the officer must report the partial payment
and continue efforts to collect the remainder.
Section 15. Notice of Sale of Property on Execution
Before selling property, proper notice must be given:
• Perishable goods: Public posting in three locations.
• Personal property: Five-day public notice.
• Real property: 20-day public posting and newspaper publication if valued above
P50,000.
• Written notice to the judgment obligor three (3) days before sale.
Example: If a court orders a foreclosed house’s sale, the sheriff must notify the owner, post
public notices, and publish the sale details if required.
Section 16. Proceedings Where Property is Claimed by a Third Party
If a third party claims the levied property, they must submit an affidavit stating their ownership.
The judgment obligee may provide a bond to contest the claim. The dispute may be resolved in a
separate court case.
Example: If a judgment obligor’s car is levied, but a friend claims they legally own it, the court
will determine rightful ownership.
Section 17. Penalty for Selling Without Notice or Removing/Defacing Notice
An officer who sells property without proper notice must pay P5,000 plus damages to the injured
party. Anyone who removes or defaces a notice before the sale is liable for the same penalty.
Example: If an auction notice is removed to prevent bidders from attending, the responsible party
must pay fines and damages.
Section 18. No Sale if Judgment and Costs Paid
A judgment obligor may prevent execution sale by paying the full judgment amount and incurred
costs.
Example: If a debtor settles the full debt before the auction, the property sale is canceled.
Section 19. How Property is Sold on Execution
Sales must be public, to the highest bidder. Excess proceeds go to the obligor unless directed
otherwise by the court.
Example: If a house sells for P1M but the debt is only P800K, the remaining P200K is returned
to the debtor.
Section 20. Refusal of Purchaser to Pay
If a winning bidder refuses to pay, the officer may resell the property. The court may compel
payment or hold the bidder in contempt.
Example: If a buyer wins a bid but refuses to pay, they can be fined or banned from future
auctions.
Section 21. Judgment Obligee as Purchaser
If the judgment obligee wins the auction, they do not need to pay unless the bid exceeds the
judgment amount.
Example: If a creditor is owed P500K and wins a bid for P450K, no payment is required.
Section 22. Adjournment of Sale
A sale may be postponed with written consent from both parties or if necessary due to time
constraints.
Example: If a sale is scheduled but cannot be completed in one day, the sheriff may extend it
with proper notice.
This detailed guide explains execution processes, ensuring clear understanding and compliance.
Section 23: Conveyance to Purchaser of Personal Property Capable of Manual
Delivery
Explanation:
• This section applies to personal property (movable assets) that can be physically handed
over, such as jewelry, electronics, or vehicles.
• If a person buys such property at a judicial sale (due to execution of judgment), they must
pay the purchase price.
• The officer conducting the sale must physically deliver the property to the buyer.
• If the buyer wants, they can also receive a certificate of sale, which serves as proof of
purchase.
• The buyer gains all rights that the previous owner (the judgment obligor) had in the
property at the time of the levy or attachment.
Example:
Imagine a court orders the sale of a car owned by a debtor to satisfy a creditor’s claim. A buyer
purchases the car at the auction. The sheriff hands over the car keys and, if requested, provides a
certificate of sale, proving that ownership has been transferred.
Section 24: Conveyance to Purchaser of Personal Property Not Capable of
Manual Delivery
Explanation:
• Some personal property cannot be physically handed over, such as stocks, bonds, or
intellectual property rights.
• In such cases, the officer conducting the sale issues a certificate of sale instead of
physically delivering the asset.
• This certificate legally transfers ownership to the buyer.
• The buyer receives all rights that the previous owner (judgment obligor) had at the time
of levy or attachment.
Example:
If shares of stock in a company are seized and sold at auction, the officer cannot physically
deliver the shares. Instead, the officer issues a certificate of sale that the buyer can use to update
ownership records with the company.
Section 25: Conveyance of Real Property and Registration with Registry of
Deeds
Explanation:
• When real estate (houses, land, buildings) is sold in execution, the officer gives the buyer
a certificate of sale.
• This certificate must include:
o A description of the property
o The price paid for each parcel or lot
o The total purchase price
o A statement that the judgment obligor has one year to redeem the property
before full ownership transfers.
• The certificate must be registered in the local registry of deeds.
Example:
A piece of land is auctioned due to an unpaid debt. The sheriff gives the buyer a certificate of
sale, which is then recorded in the registry of deeds. The original owner still has one year to
repurchase the property (redeem it) before the buyer gains full ownership.
Section 26: Certificate of Sale When Property is Claimed by a Third Person
Explanation:
• Sometimes, a third party claims ownership of the property being sold.
• If a third-party claim exists, the certificate of sale must mention this explicitly.
• This ensures that the buyer is aware of possible legal disputes over the property.
Example:
A warehouse is sold in an execution sale, but a company claims it has a valid lease on the
building. The sheriff must note this third-party claim in the certificate of sale, warning the buyer
of potential legal issues.
Section 27: Who May Redeem Real Property Sold at Execution Sale
Explanation:
• Even after a property is sold at auction, some people have the right to "redeem"
(repurchase) it within a set period.
• Those who can redeem:
o The judgment obligor (original owner) or their successor
o A creditor who has a lien (such as a mortgage) on the property
• A creditor who redeems the property is called a redemptioner.
Example:
A house is sold at an execution sale. The original owner (debtor) has one year to repurchase the
house before ownership is permanently transferred. If another creditor (e.g., a bank holding a
second mortgage) wishes to claim the property, they can redeem it.
Section 28: Time, Manner, and Amount Payable for Redemption
Explanation:
• The judgment obligor or a redemptioner has one year to redeem the property.
• To redeem, they must pay:
o The amount the buyer paid for the property
o Interest per month until the redemption date
o Any taxes or assessments the buyer paid on the property after purchase
o Any other liens the buyer had before purchasing the property
• Redemptioners can successively redeem within 60 days of each redemption.
Example:
A lot is sold at execution for ₱1,000,000. The original owner can redeem it within a year by
paying ₱1,000,000 + interest. If a creditor redeems the property, another redemptioner has 60
days to redeem it again by paying what the first redemptioner paid, plus 2% interest.
Section 29: Redemption by Judgment Obligor and Effect of Redemption
Explanation:
• If the judgment obligor (original owner) redeems, no further redemptions are allowed.
• Once they redeem, they are restored to full ownership.
• The person receiving the payment must issue a certificate of redemption.
• The certificate must be recorded with the registry of deeds.
Example:
If the debtor repurchases their auctioned house within the redemption period, no other creditor
or buyer can claim it. They will receive a certificate of redemption, proving ownership is fully
restored.
Section 30: Proof Required for Redemption by Redemptioner
Explanation:
• A redemptioner (e.g., another creditor) must provide:
o A certified copy of the judgment allowing them to redeem
o A record of their lien or mortgage
o An affidavit stating the amount they are owed
• This ensures that only legitimate creditors can redeem the property.
Example:
A bank wants to redeem a foreclosed property. They must provide:
1. A court order showing their claim
2. A mortgage contract
3. An affidavit of the unpaid loan balance
Section 31: Use of Property Pending Redemption and Waste Prevention
Explanation:
• The property can still be used during the redemption period.
• The court can prevent damage or destruction (waste).
• Normal use (e.g., farming, maintenance) is allowed.
Example:
If a farm is sold at auction, the debtor can continue farming it but cannot damage it or remove
valuable trees before redemption.
Section 32: Who Receives Rents and Earnings During Redemption Period
Explanation:
• The judgment obligor (original owner) gets all income from the property until the
redemption period expires.
• The buyer or redemptioner cannot collect rent during this period.
Example:
A rental apartment is auctioned. The old owner still gets rent from tenants until the one-year
redemption period ends.
Section 33: Transfer of Deed and Possession After Redemption Period Ends
Explanation:
• If no redemption happens within a year, the buyer gets:
o A deed of sale
o Physical possession of the property
• The sheriff ensures the buyer gets possession, unless a third party is occupying it.
Example:
A commercial building is auctioned. If the debtor does not redeem within one year, the buyer
receives the deed and can take over the property.
Section 34: Recovery of Price If Sale is Invalid
Explanation:
• If the buyer loses possession due to:
o Irregular sale procedures
o Reversal of judgment
o Property being exempt from execution
• They can ask for a refund or revive the original judgment.
Example:
If a house was wrongly sold due to an error, the buyer can demand a refund of the purchase
price.
Section 35: Right to Contribution or Reimbursement
Explanation:
• If multiple people owe a debt, but only one person’s property is sold, they can demand
repayment from the others.
• A surety (guarantor) who pays the debt can also demand reimbursement.
Example:
Three partners owe ₱3M, but only one’s house is seized. They can sue the other two for
reimbursement.
Section 36: Examination of Judgment Obligor When Judgment Unsatisfied
• When it applies: If a writ of execution (a court order to seize property to satisfy a debt)
is returned and the judgment is not fully satisfied, the creditor can request a court order to
examine the debtor’s property and income.
• Procedure: The creditor can request an order from the court where the judgment was
issued, requiring the debtor to appear for an examination. This can take place before the
court or a commissioner at a time and place set by the court. However, the debtor cannot
be required to appear outside the province or city where they reside or are found.
• Example: After attempting to seize assets from a debtor who owes $10,000, the creditor
finds that only $5,000 was recovered. The creditor can ask the court to order the debtor to
appear and disclose other assets to satisfy the remaining $5,000.
Section 37: Examination of Obligor of Judgment Obligor
• When it applies: If a writ of execution shows the judgment is unsatisfied, and there is
proof that someone else (like a third party, corporation, or other legal entity) holds
property or owes money to the debtor, the creditor can request to examine the third party.
• Procedure: The court can order the third party to appear and testify about the debtor’s
assets or debts to help the creditor enforce the judgment. This order binds the third
party’s credits or money due to the debtor from the time it’s served. The court may also
notify other parties involved in the case.
• Example: If a debtor has money in a bank, and the bank is owed the money, the creditor
can serve an order on the bank to appear and reveal the balance in the debtor’s account.
Section 38: Enforcement of Attendance and Conduct of Examination
• When it applies: If someone fails to comply with the order to appear or testify in the
examination, they may face penalties.
• Procedure: The court or a commissioner can issue a subpoena to compel a person to
attend and testify. If the person refuses to comply, they can be held in contempt of court,
which can result in penalties like fines or imprisonment. Examinations must be under
oath, and they should be conducted without unnecessary delays. If the examination is
done before a commissioner, the commissioner must write the testimony and certify it to
the court.
• Example: If a debtor refuses to attend the examination, they could be fined or jailed for
contempt. Their testimony must be recorded under oath, and if a company is involved,
the authorized representative of the company must testify.
Section 39: Obligor May Pay Execution Against Obligee
• When it applies: After a writ of execution has been issued, a third party who owes
money to the debtor can directly pay the sheriff holding the writ.
• Procedure: The third party can pay the debt to the sheriff, and the sheriff will credit the
amount toward satisfying the judgment. The sheriff’s receipt serves as proof that the
payment was made.
• Example: If a debtor is owed $5,000 by a person (say, a contractor), that person can pay
the $5,000 directly to the sheriff. This amount would be credited to the judgment to
reduce the debt.
Section 40: Order for Application of Property and Income to Satisfaction of
Judgment
• When it applies: The court can use the debtor’s property or income to satisfy the
judgment.
• Procedure: The court may order that any non-exempt property or income (such as
wages) be used to pay off the debt. If the debtor’s income exceeds what’s necessary for
family support, the court can order monthly installment payments. If the debtor fails to
make the payments, they may be held in indirect contempt.
• Example: A debtor with a high salary could be ordered to make monthly payments to
settle the judgment. If they fail to make a payment on time, the court could find them in
contempt.
Section 41: Appointment of Receiver
• When it applies: The court can appoint a receiver to take control of the debtor’s
property.
• Procedure: The receiver can manage the debtor’s non-exempt property and prevent the
debtor from transferring or interfering with it.
• Example: If the debtor is trying to hide assets, the court could appoint a receiver to take
control of and manage the debtor's assets until they are used to satisfy the judgment.
Section 42: Sale of Ascertainable Interest of Judgment Obligor in Real Estate
• When it applies: If the debtor has an interest in real estate that can be easily determined,
the receiver can sell it to satisfy the judgment.
• Procedure: The receiver can be instructed to sell the debtor’s interest in real estate, and
the sale must follow the procedures for selling property under execution. The court must
approve the sale before the deed is executed.
• Example: If the debtor owns a house or land and its value can be easily determined, the
receiver can sell it, with the proceeds going to pay the judgment.
Section 43: Proceedings When Indebtedness Denied or Another Person Claims
the Property
• When it applies: If the debtor denies the debt or someone else claims ownership of the
debtor’s property, the creditor may be allowed to file a lawsuit to resolve the issue.
• Procedure: The court can authorize the creditor to sue the third party or debtor to resolve
ownership or debt claims. The court may also prevent any further transfer or disposal of
the disputed property or debt for up to 120 days.
• Example: If the debtor claims that someone else owns the property in question, the
creditor can be authorized to sue that person to determine whether the property belongs to
the debtor.
Section 44: Entry of Satisfaction of Judgment by Clerk of Court
• When it applies: When the judgment is fully satisfied.
• Procedure: The court clerk will enter the satisfaction of the judgment into the court
docket or execution book. This occurs when the full satisfaction is shown (e.g., when a
writ of execution is returned showing the debt is satisfied or when the creditor files an
admission that the debt has been paid).
• Example: Once the debtor has fully paid off their debt, the court clerk will enter the
satisfaction in the court record.
Section 45: Entry of Satisfaction With or Without Admission
• When it applies: This section applies when the judgment is satisfied, whether the
creditor formally admits it or not.
• Procedure: The creditor must acknowledge that the judgment is satisfied. If the creditor
doesn’t do so, the court can order the satisfaction to be entered into the record without the
creditor’s acknowledgment.
• Example: If the creditor doesn’t formally admit that the debt has been paid, the debtor
can ask the court to mark the judgment as satisfied regardless.
Section 46: When Principal Bound by Judgment Against Surety
• When it applies: When a judgment is rendered against a party who stands as a surety
(guarantor) for another party.
• Procedure: The surety is bound by the judgment once they have been notified of the
proceedings and given the opportunity to join in the defense.
• Example: If someone guarantees a loan for another person and the borrower defaults, the
guarantor becomes liable for the debt once they are notified.
Section 47: Effect of Judgments or Final Orders
• When it applies: This section outlines the effect of a judgment on different types of
cases.
• Procedure:
o (a) In cases involving specific things (like real estate or status), the judgment is
conclusive about the title or status.
o (b) In other cases, the judgment is binding on the parties and their successors in
interest, covering the matters adjudicated.
o (c) In future cases, only what is explicitly adjudged in the earlier judgment is
considered binding.
• Example: If a court decides that a will is valid, the title to the estate is conclusive. In
future cases, the parties can’t re-litigate the validity of the will, but other matters can still
be contested.
Section 48: Effect of Foreign Judgments or Final Orders
• When it applies: This section governs the effect of foreign judgments in the Philippines.
• Procedure:
o (a) If the judgment is about a specific item, it’s conclusive regarding ownership.
o (b) If the judgment is against a person, it’s considered presumptive evidence of
rights between the parties, unless contested on grounds like fraud or lack of
jurisdiction.
• Example: A judgment from another country declaring someone the owner of an item of
property is generally conclusive in the Philippines, unless there’s evidence of fraud or
mistakes in the judgment.
