Text of the provision

Art. 85. Donations by reason of marriage of property subject to encumbrances shall be valid. In case of foreclosure of the encumbrance and the property is sold for less than the total amount of the obligation secured, the donee shall not be liable for the deficiency. If the property is sold for more than the total amount of said obligation, the donee shall be entitled to the excess.

(131a)

Family Code of the Philippines, Executive Order No. 209, approved July 6, 1987. The Code took effect on August 3, 1988 (Republic v. Orbecido III, G.R. No. 154380, October 5, 2005). Reproduced in full.

What this article means

A donation "by reason of marriage" (a donation propter nuptias) can be made even when the property still carries a mortgage or other encumbrance — the donation is valid regardless. Article 85 then fixes what happens if that encumbrance is later foreclosed: if the sale yields less than the secured debt, the donee is not liable for the shortfall; if it yields more, the donee keeps the excess.

The rule protects the donee from inheriting the donor's debt. They take the property subject to the existing charge, but they do not become personally answerable for a deficiency they never agreed to.

Related provisions

Cases interpreting this article

Note. The text of the provision above is reproduced in full from the official enactment. The annotation, case summaries and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. Whether this provision applies to a particular marriage depends on facts that only a lawyer reviewing your situation can assess.