In the Philippines, the sale of family assets often stirs emotional and legal debates, particularly when children feel they should have a say in the disposal of "family" property. However, under Philippine law, the rights of ownership are strictly defined by the Family Code and the Civil Code.
The short answer is: Yes, parents generally can sell conjugal property without their children's consent. Here is a comprehensive breakdown of the legal principles governing these transactions.
1. The Principle of Ownership
The most fundamental reason children cannot stop a sale is that they do not own the property while their parents are alive. Under the law, children have an inchoate right—a mere expectancy of inheritance.
- Vested Rights: Only the registered owners (the parents) have vested rights.
- Succession: Ownership only transfers to children upon the death of the parents. Until that moment, the parents retain the jus disponendi (the right to dispose) of their assets.
2. The Property Regime
The rules for selling depend on when the parents were married, as this determines the "property regime" that governs their assets:
| Property Regime | Marriage Date | Rule for Sale |
|---|---|---|
| Conjugal Partnership of Gains (CPG) | Before Aug 3, 1988 | Property acquired during marriage using common funds belongs to the partnership. Sale requires consent of both spouses. |
| Absolute Community of Property (ACP) | On or after Aug 3, 1988 | All property owned before or during marriage becomes one common mass. Sale requires consent of both spouses. |
Key Note: In both regimes, the "consent" required is that of the spouse, not the children. If one spouse sells without the other's consent, the sale is generally considered voidable or unenforceable, but the children still have no legal standing to block it.
3. When is Children's Consent Required?
There are only a few specific scenarios where children must be involved in the sale of property:
- Death of One Parent: If one parent has passed away, the conjugal partnership is dissolved. The surviving spouse and the children become co-owners of the deceased parent's share. In this case, the surviving parent cannot sell the entire property without the children’s consent, as the children are now legal title-holders of their inherited portions.
- The Property is in the Child's Name: If the title (TCT) is already registered under the child's name, or if the parents are merely acting as "legal guardians" for a minor child who owns the property, they cannot sell it without court approval and the child's representation.
- Donations with Conditions: If the property was gifted to the parents with a specific deed restriction requiring the children's involvement (though this is rare).
4. The "Family Home" Protection
The Family Code provides special protection for the Family Home (the dwelling house where the family resides).
Article 158 of the Family Code states that the family home may not be sold, alienated, or encumbered without the written consent of the person constituting the same, the spouse, and a majority of the beneficiaries of legal age.
Who are the beneficiaries?
- The husband and wife, or an unmarried head of a family.
- Their parents, ascendants, descendants, and brothers/sisters (whether legitimate or illegitimate) who are living in the family home and depend upon the head of the family for support.
If the children are of legal age and are no longer dependent on the parents for support, their consent regarding the Family Home is generally not required.
5. Common Legal Remedies and Misconceptions
- Legitime: Children often cite their "legitime" (the portion of the estate reserved for compulsory heirs). However, legitime only exists upon the death of the parent. A living person has no "estate" to protect yet.
- Pre-emptive Injunctions: Children cannot file an injunction to stop a sale simply because they want to inherit the house later. They must prove that the sale is a "simulation" (a fake sale) intended to defraud them of their future inheritance, which is an incredibly high legal bar to clear.
- Capacity to Contract: If the parents are elderly and suffering from a condition that impairs their judgment (like advanced dementia), children may petition the court for Guardianship. If granted, the guardian (who could be a child) would then manage the property, and any sale would require court supervision.
Summary
Under Philippine law, as long as the parents are of sound mind and both agree to the sale, they have the absolute right to sell their conjugal property. The children, while heirs in waiting, do not possess any proprietary interest that allows them to veto the financial decisions of their living parents. Ownership remains with the parents until the moment of their passing.