Beyond ordinary estafa (Article 315), the Revised Penal Code punishes several other forms of swindling under Article 316. These include: any person who, pretending to be the owner of real property, sells, encumbers, or mortgages it; any person who, knowing that real property is encumbered, disposes of it as if it were free (unless the encumbrance is expressly disclosed at the time of the sale); the owner of personal property who wrongfully takes it from its lawful possessor to the latter's prejudice; any person who executes a fictitious contract to the prejudice of another; any person who accepts compensation for services not rendered or for labor not performed; and a surety who sells, mortgages, or otherwise encumbers property given as security, without the consent of the owner or of the person in whose favor the obligation is constituted, while the obligation subsists. These are property-fraud offenses that target specific deceitful dealings with real or personal property. They exist alongside estafa, and the specific facts determine which provision applies.
Beyond Ordinary Estafa
Besides estafa (Article 315), Article 316 punishes other forms of swindling — specific deceitful dealings with property.
The Punished Acts
- Pretending to be the owner of real property and selling, encumbering, or mortgaging it;
- Disposing of encumbered property as free without disclosing the encumbrance;
- An owner wrongfully taking their personal property from its lawful possessor;
- Executing a fictitious contract to another's prejudice;
- Accepting compensation for services not rendered; and
- A surety encumbering the security property without consent while the obligation subsists.
Alongside Estafa
These offenses exist alongside estafa; the specific facts determine which provision applies.
Practical Takeaways
- Selling property you don't own, or an encumbered one as free, can be swindling under Art. 316;
- So can a fictitious contract or accepting pay for unperformed work;
- These are separate from, but related to, estafa.
Frequently Asked Questions
What is Article 316? It punishes other forms of swindling beyond ordinary estafa, such as selling property one does not own, disposing of encumbered property as free, executing fictitious contracts, and accepting pay for services not rendered.
Is selling property you don't own a crime? Yes. Pretending to be the owner of real property and selling, encumbering, or mortgaging it is a form of swindling under Article 316.
What about selling encumbered property? Disposing of real property as if free, knowing it is encumbered, is punishable unless the encumbrance is expressly disclosed at the time of the sale.
How does Article 316 relate to estafa? It exists alongside estafa (Article 315). The specific deceitful act and facts determine which provision applies.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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