In Philippine jurisprudence, the distinction between judicial and extrajudicial processes is fundamental. Judicial processes are those that require the intervention, supervision, and authority of a court of law, while extrajudicial processes are consensual, voluntary, or statutory mechanisms that achieve legal effects without court action. The choice between the two profoundly affects cost, speed, finality, enforceability, and the rights of the parties involved.

General Definitions

Judicial Process
Any proceeding that is initiated, conducted, and terminated before a court with proper jurisdiction. It is governed by the Rules of Court, follows strict procedural requirements (summons, answer, pre-trial, trial, judgment, execution), admits judicial review, and results in a decision that has the force of res judicata.

Extrajudicial Process
Any act or agreement that produces legal effects by operation of law or by mutual consent of the parties without the necessity of court intervention. It may require publication, registration with the Register of Deeds, or notarization, but the court is not seized of the matter unless a party later challenges the act.

Key Differences at a Glance

Aspect	Judicial Process	Extrajudicial Process
Court intervention	Mandatory	None required
Procedure	Governed by Rules of Court	Governed by agreement or special law
Speed	Slower (years in congested courts)	Faster (weeks to months)
Cost	Higher (filing fees, lawyer’s fees, etc.)	Lower (notarial fees, publication only)
Finality	Res judicata; appealable	Generally final unless fraud/vitiated consent alleged
Enforceability	Executable via writ of execution	Self-executory or registrable
Publicity	Public trial	Private, except required publication
Right to be heard	Full due process	Consent-based; no adversarial hearing

Specific Applications in Philippine Law

1. Settlement of Estate of Deceased Persons

Extrajudicial Settlement of Estate (Rule 74, Rules of Court; Section 1)
Allowed when:

Decedent left no will
No outstanding debts
Heirs are all of legal age (or minors represented by judicial guardian)
All heirs agree on the division

Requirements:

Execution of a public instrument (deed of extrajudicial settlement)
Payment of estate tax and issuance of CARP clearance if agricultural land involved
Publication once a week for three consecutive weeks
Registration with Register of Deeds

Effect: Title to real property passes to heirs upon registration; new certificates of title issued in heirs’ names.

Judicial Settlement
Required when:

There is a will (probate proceeding)
There are debts
Heirs disagree
There are minors or incompetent heirs without agreement

Types:

Testate proceeding (probate of will)
Intestate proceeding
Special proceedings under Rules 73–90

The court appoints an administrator/executive, approves project of partition, and issues final order of distribution.

2. Foreclosure of Real Estate Mortgage

Extrajudicial Foreclosure (Act No. 3135, as amended by Act No. 4118)
Most common and preferred by banks.
Procedure:

Notarial request by creditor
Posting of notice for 20 days
Publication once a week for three weeks
Public auction by notary public or sheriff
One-year redemption period (except juridical persons: 3 months if mortgagee is a bank under General Banking Law)

Advantages: Fast (3–6 months), inexpensive.

Judicial Foreclosure (Rule 68, Rules of Court)
Initiated by filing a complaint for foreclosure.
Procedure follows ordinary civil action.
Results in deficiency judgment recoverable in the same case (unlike extrajudicial, where separate action needed).
Redemption period: one year from registration of sale.

Used when mortgage contract does not contain special power to sell, or creditor wants deficiency judgment without separate suit.

3. Partition of Co-Owned Property

Extrajudicial Partition
Allowed when all co-owners are of legal age and agree on division.
Executed via public instrument, published if real property involved, then registered.
New titles issued.

Judicial Partition (Rule 69, Rules of Court)
Filed when:

No agreement
One co-owner refuses
There are minors or unknown owners

Two stages: (1) determination of right to partition, (2) actual partition by commissioners appointed by court.

4. Rescission/Resolution of Reciprocal Obligations

Extrajudicial Rescission
Article 1592, Civil Code (sale of immovable on installment): buyer’s default allows seller to rescind extrajudicially by notarial notice; grace period not less than 30 days.
Resolution under Article 1191: injured party may choose fulfillment or rescission with damages; Supreme Court in UP v. Delos Angeles (1970) and subsequent cases allowed extrajudicial rescission provided notarial notice is sent, but the other party may challenge in court.

Judicial Rescission
Required for:

Lesion by more than ¼ (Art. 1381)
When extrajudicial rescission is challenged
Contracts requiring judicial rescission by express provision

5. Ejectment and Unlawful Detainer

There is no extrajudicial ejectment in Philippine law. All forcible entry and unlawful detainer cases must be filed with the Municipal Trial Court (summary procedure under Rule 70). Barangay conciliation is mandatory but is a condition precedent, not a true extrajudicial ejectment.

6. Alternative Dispute Resolution Mechanisms

Katarungang Pambarangay (Local Government Code, Sections 399–422)
Mandatory conciliation for disputes between residents of the same barangay/municipalities (except where one party is government or its subdivision).
Settlement has effect of final judgment if repudiated only on grounds of fraud, violence, intimidation, etc.

Court-Annexed Mediation and Judicial Dispute Resolution
Still judicial, but mediation phase is extrajudicial in nature.

Arbitration (RA 9285, Alternative Dispute Resolution Act of 2004)
Voluntary submission to arbitrator; award is final and enforceable by court confirmation.

Construction Industry Arbitration (EO 1008)
Mandatory for disputes arising from government construction contracts.

Advantages and Disadvantages

Extrajudicial Processes
Advantages:

Speed and economy
Privacy
Preservation of relationships
Less technical

Disadvantages:

Vulnerable to attack on grounds of fraud, mistake, undue influence
No judicial supervision (risk of inequitable division)
Cannot bind non-consenting heirs or creditors
Deficiency judgment requires separate action (foreclosure)

Judicial Processes
Advantages:

Full due process
Binding on the whole world (estate settlement)
Court protects minors and absent heirs
Deficiency recoverable in same case

Disadvantages:

Expensive and slow
Public exposure
Congested court dockets

When Extrajudicial Process is Prohibited or Invalid

Presence of unpaid creditors (estate settlement)
Minor heirs without court-approved representative
Mortgage contract lacks special power to sell
One heir/co-owner objects
Public policy requires judicial oversight (e.g., declaration of nullity of marriage, adoption, corporate rehabilitation)

Conclusion

Philippine law strongly favors extrajudicial processes whenever the circumstances allow because they promote efficiency, reduce court backlog, and respect party autonomy. However, judicial processes remain indispensable when there are disputes, vulnerable parties, or the need for coercive state power. The prudent practitioner always determines first whether an extrajudicial route is available and valid before resorting to litigation, for the choice often determines not only the cost and duration but the very success of the legal objective.