Sec. 1. Who may constitute. - The head of a family owning a house and the land on which it is situated may constitute the same into a family home by filing a verified petition to that effect with the Court of First Instance of the province or city were the property is located. In the City of Manila, the petition shall be filed in the Juvenile and Domestic Relations Court.
When there is danger that a person obliged to give support may lose his or her fortune because of grave mismanagement or on account of riotous living, his or her spouse, if any, and a majority of those entitled to be supported by him or by her may petition the Court of First Instance for the creation of the family home.
Sec. 2. Contents of petition. The petition shall contain the following particulars:
(a) Description of the property;
(b) An estimate of its actual value;
(c) A statement that the petitioner is actually residing in the premises;
(d) The encumbrances thereon;
(e) The names and addresses of all the creditors of petitioner or head of the family and of all mortgagees and other persons who have an interest in the property;
(f) The names of all the beneficiaries of the family home.
Sec. 3. Notice and publication. - The court shall notify the creditors, mortgagees and all other persons who have an interest in the estate, of the filing of the petition, causing copies thereof to be served upon them, and published once a week for three (3) consecutive weeks in a newspaper of general circulation. The petition shall, moreover, be caused to be posted in a conspicuous place in the parcel of land mentioned therein, and also in a conspicuous place of the municipal building of the municipality or city in which the land is situated, for at least fourteen (14) days prior to the day of the hearing.
Sec. 4. Objection and date of hearing. - In the notice and publication required in the preceding section, the court shall require the interested parties to file their objection to the petition within a period of not less than thirty (30) days from receipt of notice or from the date of last publication, and shall fix the date and time of the hearing of the petition.
Sec. 5. Order. - After hearing, if the court finds that the actual value of the proposed family home does not exceed twenty thousand pesos, or thirty thousand pesos in chartered cities, and that no third person is prejudiced thereby, or that creditors have been given sufficient security for their credits, the petition shall be approved.
Sec. 6. Registration of order. - A certified copy of the order of the court approving the establishment of the family home shall be furnished the register of deeds who shall record the same in the registry of property.
