Donation between partners in a common-law relationship is void

Dear PAO,

My only sibling purchased a house and lot after the death of our parents, and the property was registered in her name. She later met Jose, and they eventually lived together in the house and lot. Sadly, my sister died. Jose now wants to lease the property to a foreigner, but I protested because he is not the owner thereof. However, he claimed that my sister donated the house and lot to him when they were cohabiting. Who has a better right over the house and lot?

Harthone

Dear Harthone,

The provision of law which finds application to the situation of your sister is Article 87 of the Family Code of the Philippines which provides that:

“Every donation or grant of gratuitous advantage, direct or indirect, between the spouses during the marriage shall be void, except moderate gifts which the spouses may give each other on the occasion of any family rejoicing. The prohibition shall also apply to persons living together as husband and wife without a valid marriage.”

The alleged donation by your deceased sister to her partner during their cohabitation is void. While Article 87 of the Family Code of the Philippines speaks of prohibited donation between spouses, the same article equally applies to persons living together as husband and wife without the benefit of marriage. This finds support in the pronouncement of the Supreme Court through Associate Justice Alfredo Benjamin Caguioa in the case of Perez Jr. vs. PerezSenerpida, GR 233365, March 24, 2021, where it ruled that:

“Matabuena equalized common-law relationships between a man and a woman, on the one hand, and validly married spouses on the other, in respect of the nullity of donations made between the parties. This case similarly pronounces that the prohibition against a spouse to donate any absolute community property or conjugal partnership property without the consent of the other spouse equally applies to common-law relations or cohabitations of a man and a woman without a valid marriage or under a void marriage.”

Applying the above-quoted decision in your situation, the prohibited donation between legally married individuals clearly applies to a commonlaw relationship like that of your sister and her partner Jose. Thus, the alleged donation made by your sister to her live-in partner during their cohabitation is void.

It is also important to emphasize that the house and lot is not co-owned by Jose and your sister because it was established that the latter purchased it before their cohabitation which made her the sole owner of the property. Hence, when your sister died, the ownership of her properties passed to her heirs, which does not include a common-law spouse absent a last will and testament designating the latter as an heir. If she had no child, a collateral relative like you would inherit the property pursuant to Article 1003 of the New Civil Code of the Philippines which states that:

“If there are no descendants, ascendants, illegitimate children, or a surviving spouse, the collateral relatives shall succeed to the entire estate of the deceased in accordance with the following articles.”

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.