How to transfer land title to heirs in the Philippines (Extrajudicial Settlement)

by | Oct 20, 2018 | Estate Law, Wills & Inheritance

This article outlines the step-by-step process to sell a Philippine inheritance or to transfer it to your name.

This process is called “settling the estate”.

In this article you’ll find:

  • Practical advice on how you can access a deceased’s bank account shortly after death.
  • Common issues you face in gathering documents and even in filling up BIR forms.
  • A pretty good understanding of the overall process from death to receiving the Certificate Authorizing Registration, which is when property transfer becomes possible.

This article specifically considers an agreeable settlement of the estate which avoids a contentious court case. It gives you a good grasp of the main issues you and your co-heirs will need.

However, you may still have to consult with an accountant or a lawyer at some point. Settling an estate can be complicated and you might need professional advice.

Settling an EstatePart 1: Introduction

If you have inherited real estate, stocks or vehicles you are going to have to settle the estate if you intend to sell the assets to another or transfer them to your name.

Settling an Estate

If you have inherited real estate, stocks or vehicles you are going to have to settle the estate if you intend to sell the assets to another or transfer them to your name.

Why?

The new owner will want the title in his name.

However, you will need the Bureau of Internal Revenue clearance called the Certificate Authorizing Registration (CAR) to formally transfer anything. You will have to settle the estate to get the CAR.

An set of items composing an estate with heirs surrounding it.

Settle an estate in 7 steps!

Settling the estate involves 7 main steps which involve paying off the debts of the deceased, settling unpaid taxes, and reaching an agreement with your co-heirs.

You should try to settle the estate within the BIR deadline of a year from the death. The reason is that the penalties beyond this period can be enormous:

  • 25% annual tax on the amount due
  • 20% surcharge on the amount due

With charges like these, it is possible that the tax required might eventually equal the estate.

Settling an estate means paying transfer taxes at the BIR, which should be paid as soon as possible.

Pay estate taxes within 1 year from the death or fees and penalties can be onerous!

You can see why it is best to file with the BIR as soon as possible or to even just file a partial return in order to forestall the penalties.

Get the Death CertificatePart 2: Death Certificate

The death certificate is the first document you’ll need to obtain.

Get the Death Certificate

The death certificate is the first document you’ll need to obtain.

You will need to present this to the funeral home, insurance office, banks, BIR, etc. – in short, everyone with whom you will need to transact with regarding the recent death.

Death certificates are one of the first documents needed.

Get several copies of the death certificate!

If the death took place in a hospital, the hospital will release the death certificate. If the death took place in a home, the attending doctor or the barangay health officer will help you accomplish the death certificate.

You’ll need 10 certified true copies of the death certificate (at least!).

It is a civil registry document which may be obtained at the local or national level.

While the local civil city registrar might have recorded the death, the national civil registrar may take between a few weeks to a few months.

This is because the process takes time.

Time passing as a man wait for the process to finish.

Be patient – it’s a time consuming process.

First, the local civil registrar will record the death. Then, it will send this to the Philippine Statistics Authority (Office of the Civil Registrar General). Then the PSA records, processes and encodes the document into the national database of the main civil registrar.

This means that the PSA certified death certificate will not be immediately available after the death. Your recourse will be to call on the local civil registry where the death was registered and get the local copy. (Note that you should remember to eventually get the PSA certified death certificate.)

In any case, with the death certificate in hand — whether local or PSA certified — you can begin to address the tax issues as well as other immediate concerns.

Get BIR form 1904Part 3: BIR 1904

Expenses can be one of the most pressing concerns of a family after a death.

Get BIR form 1904

Expenses can be one of the most pressing concerns of a family after a death.

A family may find that it does not have cash immediately on hand with which to meet the expenses death brings about. The family may find that the cash is locked in the bank account of the deceased.

The new Tax Reform for Acceleration and Inclusion Act (TRAIN) law has partially addressed this problem. Subject to certain conditions and requirements, the law now allows you to access the deceased’s bank accounts even before the settlement of the estate is concluded for up to 1 year after the death.

Withdrawing from the deceased's bank account in 5 steps.

5 steps to withdraw from a deceased’s bank account.

You would need to present to the bank the following:

  • The Death Certificate
  • The Estate’s TIN which will be received after filing BIR Form 1904
  • Other documents required by the bank

You’ve already got the death certificate.

Now, we’ll go through what needs to be done to get the Estate’s TIN.

The Estate’s TIN registers the estate as a taxable entity. This will be needed for all financial transactions regarding the estate. It is different from the TIN the deceased used while he was alive.

Getting the Estate’s TIN is a fast and simple process.

Below, we will go through the form and how to fill it up.

You can get Form 1904 from the BIR’s website.

I’ve split the form into 2 parts so that we can go through it easily.

BIR 1904 - Part 1

BIR 1904 Form – Part 1

Let’s go through some of the fields for the first part:

  • Taxpayer Type should be One-Time Taxpayer.
  • Classification should be Non-Individual here.
  • Write “Estate of [Name of the Deceased]” for the taxpayer’s name
  • Date of Birth should be the Date of the Death as it appears on the death certificate
  • I think that sex, civil status, spousal information and telephone number are pretty clear.
BIR 1904 - Part 2

BIR 1904 Form – Part 2

Almost there!

We’ll go through some of the other fields for the rest.

  • Local Address and its corresponding telephone number should be the address as it appears on the death certificate
  • One Time Transactions should be Transfer of Properties by Succession
  • Tax Type should be Estate Tax

You’ll also need to submit the Death Certificate with this form.

You then submit the form at the BIR Regional District Office (RDO) where the deceased lived. You shouldn’t submit at any other location.

You can then withdraw from banks with the estate TIN up to 1 year after the death, although this is subject to 6% withholding.

Calling to make sure the documents required to withdraw from the deceased's bank account are complete.

Call the bank to find out the bank’s requirements – they may have additional bank-specific documents needed.

This change due to the TRAIN law is new. As a result, some banks are not yet entirely updated regarding this. You’ll have to coordinate with them and explain.

This is a good time to talk about taxable and non-taxable estates.

Estates whose valuation exceeds certain thresholds are taxable. On the other hand, estates fall below these thresholds will not be subject to estate tax.

Consult with a professional to calculate estate tax as it can get complicated!

Does estate tax apply? Only estates above a certain amount are taxable.

This is important because the non-taxable estate would not be subject to the 6% withholding tax.

You would have to calculate the total estate to find out. Then you will have to pay the estate tax. At this point, you can withdraw without the 6%.

Calculating and paying the estate tax would take time however so this might not be a route for you if the family needs the locked cash immediately

Determine Estate DocumentsPart 4: Estate Documents

You and your co-heirs will need to determine the scope of the estate.

As an heir to the estate, you might want to transfer or sell your inherited assets. But what are the assets? What else is the estate composed of?

You and your co-heirs will need to determine the scope of the estate.

All the items that make up an estate.

What is the estate made of?

What are the estate’s assets?

They can be:

  • Real estate such as the family home, condominiums or land titles
  • Shares of stock or shares of memberships such as a country club
  • Motor vehicles

What are the estate’s liabilities?

  • Are there any loans that the deceased took out?
  • Are there are unpaid taxes?

You will need all the documents proving ownership as well. For real properties, you will need the titles and the tax declarations and improvements from the city assessor, if ever. You will need stock certificates for stocks and you will need the registration for all vehicles.

It is the same for loans and obligations. You will need to gather promissory notes and other obligations.

You need a lot of documents to settle an estate.

Expect to gather a lot of documents!

This can be a painstaking task.

It can be tough to figure out where documents are. Very often, only the deceased knew where the papers were kept.

Conferring with family can be an important early step for this.

It is also possible to track down the land titles by painstakingly working with the pertinent government agency. It is a detailed process and requires a lot of patience. It may require visiting the Register of Deeds where the land is located as well.

You need to complete the documents to settle an estate so investigation may be needed.

You might need a private eye.

Another option is to hire private investigators to determine the actual extent of the property and then to work towards reconstructing a complete picture.

What you end up doing to reconstruct the estate will depend on the information you have.

At this point, you might also want to hire an accountant to help you understand the estate and the taxes involved. He can help you understand what you’ll have to pay to the BIR and what you might be able to save.

Co-heirs Estate AgreementPart 5: Estate Agreement

After you’ve figured out what the estate is composed of, you and your co-heirs will need to agree among yourself how the properties will be partitioned.

After you’ve figured out what the estate is composed of, you and your co-heirs will need to agree among yourself how the properties will be partitioned.

Why?

Well, Philippine law only determines the proportions that go to specified heirs. However, the extrajudicial settlement actually determines who will receive what property.

Heirs must agree on how the properties will be shared.

Heirs need to decide how to partition the estate

This is often contentious.

Think about your family.

Then think about all the cares that each heir might have with regard to providing for his family. Add to that all the history of small hurts and disagreements and it’s easy to see how quickly things can go wrong.

Your sister might want the family home, but your brother might actually be living in it. Or there might be 2 properties but one sibling wants to keep them while the others want to liquidate. You will all have to reach an agreement about what will be done.

Heirs struggling under the burden of debt.

Heirs must agree on how to pay debt

In addition, you will have to determine how you will pay all outstanding debts. You may draw on the deceased’s bank account, but often you and your co-heirs may have to shoulder the burden. The estate must have no debts for it to be given to the heirs or even sold.

Intermediaries can often help in reaching this all-important agreement as it is this concert that is the basis of the extrajudicial settlement. A failure of the heirs to agree will make extrajudicial settlement impossible.

Execute an Extrajudicial SettlementPart 6: Extrajudicial Settlement

If an agreement is made or brokered between the heirs, they will then create the extrajudicial settlement (or the Deed of Adjudication, if you are the sole heir).

Execute an Extrajudicial Settlement

If an agreement is made or brokered between the heirs, they will then create the extrajudicial settlement (or the Deed of Adjudication, if you are the sole heir).

An extrajudicial settlement is an agreement between heirs.

An extrajudicial settlement is a legal agreement detailing the partition of an estate.

It should have the following information:

  • That the deceased left no will and no debt or that his debts have been paid
  • You and your co-heirs relationship to the deceased and that there are no other heirs
  • Description and details of the properties and how they are to be divided

Afterwards, everyone should sign and notarize the document.

A notice will then be published in a newspaper of general circulation for 3 weeks.

You will present the need the proof of publication along with the extra-judicial settlement to the BIR.

File BIR 1801Part 7: BIR 1801

If you’ve accomplished all the items up top, you are in a really good position to start filing your BIR 1801.

File BIR 1801

If you’ve accomplished all the items up top, you are in a really good position to start filing your BIR 1801. You need to do this within a year after the death to avoid those heavy penalties we talked about earlier.

BIR 1801 is filed to pay the taxes to finally settle the estate.

It is deceptively simple and is currently supported by 5 schedules.

Estate Tax Return 1801

Estate Tax Return – 1801 Form

With all the work you’ve already put in, you are in a really good position to fill this up. (Note that the BIR is currently using the pre-TRAIN law form so there will be some non-applicable fields.)

Work with your accountant to fill up the information and verify your estate taxes.

Only an accountant can help you minimize your possible taxes.

There are some pretty clear deductions straight off the bat:

  • Php 5,000,000 for Philippine citizens and resident aliens
  • Php 10,000,000 for the family home

However, there may be tax treaties and there are other possible tax exemptions applicable to your situation that only an accountant or lawyer would know.

An accountant helps calculate estate taxes.

An expert can help save you money.

Then, armed with your calculation and all your documents, you should head off to the appropriate BIR RDO (where the permanent home of the deceased was located).

You’ll need to talk to the One Time Transaction Officer (ONETT) and go through the calculation with him.

ONETT officers are rotated, but if you like the ONETT officer you are working with, try to figure out his schedule and his personal contact information. ONETT officers vary slightly how they deal with estate issues so it’s best to stick to one throughout the process.

If all your documents are in order, you should be able to do this relatively quickly.

Pay the Estate TaxPart 8: Pay for CAR

One of the last big hurdles is paying the estate tax.

Pay the Estate Tax

So, you’ve made it this far!

One of the last big hurdles is paying the estate tax.

After you’ve calculated the Estate Tax to be paid, you will need to actually pay it at the Authorized Agent Bank (AAB).

Estate taxes can only be paid at an Authorized Agent Bank.

Pay estate taxes at any Authorized Agent Bank.

An Authorized Agent Bank is a bank that accepts payments on the BIR’s behalf.

You may choose to pay the bank in cash or through a manager’s check.

If you do choose a manager’s check, call the bank so that you know exactly how they want the payee to be written on the check.

Make sure you get the banks machine validation on the proof of payment.

Now make a trip to the BIR to present this and receive your Certificate Authorizing Registration.

If you’ve got everything ready and there are no pending issues, your CAR shouldn’t take too long to process.

With the CAR, you can now easily sell your inherited property or transfer it to your name.

SummaryPart 9: Notes & Summary

If you’ve got a pretty simple estate to settle with just a few properties and some stocks, this guide is a good starting point to understand the work you need to put in.

If you’ve got a pretty simple estate to settle with just a few properties and some stocks, this guide is a good starting point to understand the work you need to put in.

This post focuses on providing practical advice from the point of view of the layperson.

This doesn’t cover all the intricacies of settling an estate.

Estate settlement has many parts.

Settling an estate has many steps.

Many times, you’ll get held up looking for documents which can require a ton of work just to replace. You might have problems with land titles. You might also have problems with unpaid real estate taxes.

Each of those issues can be detailed, expensive, and painstaking to solve (depending on the exact situation).
Still, I hope that this practical guide helps you and your family understand the process better.

54 Comments

  1. Marie Christine

    Thank you for this article! I had no idea how complicated land issues in Philippines is!! My question is this; my sister recently tried to sell land that I bought from my father. The land in question is still undivided to this day and remained in my Grandfather’s name who ded 40 years ago. So how come my sister found a buyer who was willing to pay for it, when she did not have any paperwork as proof that she owned it??

    Reply
    • Lawyers in the Philippines

      Transferring the title to the buyer’s name will be quite difficult in this situation.

      This buyer may not be aware of the work required or may be willing to undertake it.

      In the vast majority of cases however, this is often why titles are not transferred even after payment has been given. The buyer suddenly discovers how difficult it actually is to transfer the land to their name and are stymied.

      Reply
  2. Gliceria Aldana

    Very helpful information… I will apply this in my quest for extrajudicial settlement of the properties left by my parents.

    Reply
    • Lawyers in the Philippines

      Thank you. It’s good to know that the information is useful.

      Reply
  3. Muriel

    Thank you so much for this article!! Now it gives me a clear picture of what to do….which is nothing, due to so many required paper work. I don’t even where to start! Well, I do now, thanks to you. It seems such a daunting task and probably not worth my time and effort, for a property that I only paid P400,000 for.

    One last question please. What is the alternative for extra judicial settlement if the siblings won’t sign the extra judicial paperwork?

    Reply
    • Lawyers in the Philippines

      Dear Muriel:

      I believe I have sent you an email regarding this.

      Just a note —

      While confusing to the layperson, lawyers are quite familiar with this type of problem. It is possible to resolve it and see it through.

      Reply
  4. Brian

    This article is very helpful, already bookmarked this for future reference, but I have a question, My father died last 2013, till now we haven’t settled / process his only property. He doesn’t have any debts, Money to his name, Bank account or anything aside from that one property he owns in the province. question is can we go directly to the extra judicial settlement part and divide among us siblings (my mother doesn’t want to be in any part of that land as she just want it to our names) or we should still go thru the whole process?

    Reply
    • Lawyers in the Philippines

      Hi Brian:

      I am not certain what you mean.

      Transferring when there is no will is through extrajudicial settlement and it goes through all the steps I mentioned in the above article.

      Reply
  5. May

    Good evening. My grandparents, who died in 1976, left a house and lot. There were 8 children; 3 are deceased (all Philippine residents), while 3 are living abroad. May I know the procedure of executing an extrajudicial settlement, esp that the 3 siblings are abroad, and cannot physically participate in the settlement. What documents should they send, to be attached to the affidavit that the Philippine residents will execute? Thank you for your answer.

    Reply
    • Lawyers in the Philippines

      Hi May:

      First, the extrajudicial settlement needs to be executed among all the heirs. In this case, the heirs are the children of your grandparents and the children of the deceased children.

      For the heirs abroad, a red-ribboned Special Power of Attorney would first be needed with the associated proof of identity.

      Reply
  6. Chona

    Hi. I stumbled upon this article because I was trying to double check if what people from different agencies are telling us is true about how tedious the process is.Turns out that it is. We were planning to build a house on the lot we bought. The only proof of ownership we have is a deed of sale. Is that enough reason to take the risk? I would be happy to explain our case by email. Thank you so much for your time.

    Reply
    • Lawyers in the Philippines

      Sent you an email.

      Reply
  7. Augusto

    What are the solutions to an heirs encumbrance stated in the title? My siblings and i have agreed to sell the property under our names and we have a buyer already but there is a two year encumbrance on any other heir who might have a claim. My siblings and I are already in our 80s and any one of us can die anytime and we do not want to cause any complications when any One of us dies. We do not know of any other possible heir to this property except us siblings. Will an heirs bond do or a simple contract stating that in the very rare chance an heir does lay a Claim during the two year period, we will shoulder all claims on the property so the buyer is not affected. Thank you!

    Reply
    • Lawyers in the Philippines

      Yes, depending on the property and other considerations, the most practical answer may be to simply sell the property to a willing buyer as is.

      Reply
  8. Jona

    Hi! Both my parents died in 2018. All of us siblings are living abroad. What red ribboned SPA do they need to submit? SPA for a lawyer to represent them or an SPA of extrajudicial settlement? Thanks

    Reply
    • Lawyers in the Philippines

      Sent you an email.

      Reply
  9. Lea

    I came across this article as I am trying to find out what can be done with our case. I am interested in a property that is under the names of my two aunts who were both single and are now both deceased. May I know how I can purchase the property? Is it better to pursue a deed of sale or a deed of donation? Appreciate your guidance on this please.

    Reply
    • Lawyers in the Philippines

      Hi Lea – what needs to be done depends on the exact situation.

      I will send you an email with some question to explain the considerations you must take into account.

      Reply
  10. Alicia

    Hi I am Australian citizen now do I have the right to file a case against my sister to revoke the title since I didn’t sign any documents as part of the family when she applied the title for her share from iour inheritance.if so what I’m gonna do.

    Reply
    • Lawyers in the Philippines

      If you are a legal heir and did not receive your share of the inheritance, you can certainly question any property disposition that did not include your interests.

      Reply
    • Victoria

      My father died 2 years ago..i have 3 sibling and my mother…my parent having a property…but after 2 years my mother decided to subdivide the property to their children and their silbling…but my sibling not agree to her plan to give some property to their sibling just because before my fathers die he wants that property is only for his/her children….my mother already subdivide property and allocation their sibling…my question is what will we do for that case…

      Reply
      • Lawyers in the Philippines

        Sent an email.

  11. REGINA TAGAMOLILA

    Hi, i have an uncle who died 4 years ago and He doesn’t have a family (a wife and child). Their are 5 siblings in the family including may Dad who past away before my uncle. My aunt and uncle decided to make an extra Judicial settlement without our knowledge that they are the heirs of my uncle house and lot and others assets including bank accounts and gold jewelries and decided to sell the property (house and lot) without our consent. My uncle died without any will. Is it possible that we his niece and nephew have the right to have share in the said property which my uncle and auntie sold.

    Reply
    • Lawyers in the Philippines

      Sent you an email.

      Reply
  12. Jerick

    Mary sold the property to Juan. Juan failed to transfer the title to his name. Mary and Juan are both dead now. Juan’s wife has the title bearing Mary’s name. However, Juan’s daughter stole the dead of sale.

    1. What’s the best step to transfer the title to Juan’s 4 siblings.
    2. How to stop Juan’s daughter on doing something illegal with the documents she stole, where she is nowhere to be found.
    3. Juan’s wife is not interested in transferring the title to their children due to the high cost of taxes. What advises to give?

    Reply
    • Lawyers in the Philippines

      By what right do Juan’s siblings claim the property?

      Reply
  13. Ana

    Hi,

    Thank you for this quality information. I’m currently in an extrajudicial settlement at the moment. There is one property involved and although it is to be divided among the Heirs, some have interest in the property, therefore would like to buy out some of the Heirs. Those Heirs are trying to get a low appraisal value of the property, is this allowed? Also, the deceased is known to have a joint bank account with one of the Heirs will this be needed to be noted as one of the deceased assets? Finally, as some of the Heirs are now living in a different country and will be needing SPA’s, can they appoint one of the other Heirs as an SPA or should they find someone not involved in the settlement? Thank you for your time.

    Reply
    • Lawyers in the Philippines

      By its nature, an extrajudicial settlement is an agreement among the heirs. What it stipulates very much depends on what the heirs can agree to. All the deceased’s assets should ideally be accounted for. Yes, the heirs can appoint someone to sign the settlement on their behalf.

      Reply
  14. Gerry

    Is it possible to get an approximate of how much it will cost to transfer a property(house/lot) that say cost 1,000,000 pesos? My father died in 1999 and would like to transfer his property to my name. I read through the procedure but I’m confuse as to the 20% penalty and 25% surcharges that are mentioned in this website. What other costs need to be paid other than the estate tax? Do you have a recommendation of any lawyers who will be willing to do all of these procedures? I really would like to know the total cost of transferring the property title assuming the cost is 1,000,000 pesos.

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  15. Terry

    Hi, my father died in 2011 and he left some properties. We are four in the family. We wanted to execute an extrajudicial settlement however my two siblings are living abroad. The three of us want to waive our shares in favor of our other sibling. My question is – is waiving their rights be done through SPA?

    Thank you.

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  16. Jenisa

    This question is from my Father, My GrandMother died September 2017 and my grand father is still alive. They already made an extrajudicial settlement last 2017. The heirs of my grandmother are in chaos because other siblings ask somebody to process their land titles but my father wants my sister to process the land title for him. However the person which the other siblings ask to process their title is threatening my father that he will pay penalties if he didnt want him to process the title.
    My question is ;
    1. Is the estate tax needs to be all the land that is given to the heirs or my father can only pay for the parcel that he inhereted.
    2. If the land is 1500 sq.m how much my father will pay for the mentioned penalties and surcharges.
    3. Do we have to wait for the surveyed land registration number before we can process the the documents in BIR.
    4. Does my sister need and SPA to process my fathers land title? Since my father is not well educated and scared to do the process himself.

    Reply
    • Lawyers in the Philippines

      Sent you an email.

      Reply
  17. Sharon

    Hi. My question is this. The Extrajudicial settlement is already done, now waiting only for the paper to be released at the ROD. Me and my brother are named heirs, through interstate as the said property in question belonged to my dad but he passed away without a will. My dad borrowed money from a relative and has a hand-written note naming the property as a collateral in the event that he cannot pay the debt. He passed away before debt was settled. Now the relative who my father owed the money to is contesting the extrajudicial settlement of estate. Please note that the atty who has processed the judicial settlement is aware of the debt but not the promissory note as this was only made known to us recently. My question now is, can this relative bring us to court because of this and due to the fact that my father has signed a promissory note indicating the said property as collateral. What can we do to protect our interests? Are we legally bound to pay the dept, or give up the property altogether since it is held as collateral? In the promissory note, it is stated that there will be 2% interest if payment is not made in the agreed time. The debt is now 16 yrs old but my dad passed away 5 years ago. We are planning to pay the dept in good faith but relative is asking way much more that what we can afford to pa, triple the original amount. Please advise on what to do.

    Reply
    • Lawyers in the Philippines

      Yes, he can bring a case to court.

      I have sent you an email.

      Reply
  18. Teresita

    Very helpful.
    One question please:
    If all of us children are abroad and are living in different states, can we make individual separate extra judicial settlement and submit it as one.

    Reply
    • Lawyers in the Philippines

      Executing individual SPAs would address the situation.

      Reply
  19. Khal

    Hi. My uncle in US wanted to sell his properties in the Philippines. TCT indicated “Husband” married to “Wife”… Wife died a year ago. They have 4 kids (3 in US; 1 deceased in US). My uncle asked me to be his representative to deal with potential buyers, including signing the documents and receiving the payments through SPA. Do they need to file for extrajudicial settlement? Does he need to pay an estate tax? I’ve talked to one lawyer here inthe Philippines, that there is no need for them to file for extrajudicial settlement since TCT only indicates “Husband married to Wife”. Unless it indicated “Spouses” or “Husband and Wife”. Need your advise. Thanks a lot.

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  20. rose

    Hi im rose, my husband and I purchased a property and its been 6 years to be exact but until now I’m still not finished transferring the title in our name. we buy our land from an agent as they claim to us and we are very trusted to them that they will do all the transfer and so on. so we just paid them the amount that they are asking. without asking some important documents until later I decide to get the documents and I try to process on my own. and. later that we find out we are the one going to pay the estate tax, capital gain tax. so I really get frustrated. just a year ago the agent passed away so I can’t questioned them anymore. now my question are: in estate tax,
    *do I need to pay all the died member of the family?
    *the original owner was the grandparent with 8 sibling are deceased
    * do I have to pay all of them, like the grandpa and grandma, 8 sibling and their spouses and some the heirs who passed away too?
    * and how they compute all of this since they don’t have any record for date of death in the municipalities.
    * I buy the property in lower price since its a hilly for agricultural purposes. please I need your good judgment. thank you in advance.

    Reply
    • Lawyers in the Philippines

      Sent you an email.

      Reply
  21. Juliet

    Good Day!
    Just want to let you know that this article provided an insight on our situation now.
    On my dad’s side of the family, The estate left by my grandfather has not been touched ever since he died. Meaning, for over 30 years, the titles is still on his name and we still pay the taxes same as before. The thing is, my aunt who holds the title died, and we can’t find the titles now, my question is, How are we able to get a new title and if ever we get a new one, do we follow the “procedure” that is listed on this article and go from there? My father and aunt who are the remaining heirs of my grandfather, wanted everthing to be settled as they are old and wanted no trouble in the future.
    If I may specify that my auntie, lives in America and is an American citizen, how am i going to proceed on this?
    Thank you so much for taking time reading this I really apprecite your insight and help.

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  22. Joris

    Hi, may i ask once the CAR is given, the heir/heirs of the property can freely sell the property of the decedent?
    2) Will they be given a new title in their names (heirs)?
    3) Is it possible once CAR is given, can the new title bore the name of the buyer if the heirs of the decedent decide to sell the property instead?

    Reply
    • Lawyers in the Philippines

      A CAR greatly helps for serious buyers.

      A CAR allows the transfer of the title to the new owners but more processing needs to be done to complete this.

      An extrajudicial settlement with deed of sale allows the property to be transferred to the new owner if that is what was undertaken.

      More information is needed to comment on your case specifically; the above are general statements.

      Reply
  23. AURORA

    Why am I asked to file for the reconstitution of the original Tct lost in the possession of the Register of Deeds when I am Not responsible of losing it? I have my Owner’s Duplicate of Tct. This is UNFAIR!

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  24. Manel

    Hi. Our mother died in 2016 and the land title is solely entitled to her. We are planning to execute extrajudicial settlement in favor of my older sister and I. Is our father required to sign a waiver?

    Reply
    • Lawyers in the Philippines

      More information is needed to answer this clearly.

      The situation is unclear.

      Reply
  25. Bobby

    Hi. Im going to buy a Lot on a subdivision but the Owner of the lot on the Title passed away already. The wife wanted to sell the lot and she wanted us to pay right away, having only deed of sale and the original copy of the title. And later have it transferred to us as they process it. But on our research, since the original owner on the title is no longer alive, an extrajudicial settlement is needed first, noting that the favor of the settlement is to the wife of the late owner. I am a little bit worry that after the payment transaction, the mentioned property may still be sold to someone else, or other heir may have claim on the property. I am trying to negotiate that we will have the full payment after the title have been filed to the Registry of Deeds, transferring the ownership to us. May I have then the following inquiry:
    1. Holding the original title and the deed of sale will give us authority to the mentioned property? Can they acquire a CTC of the title from the RD and sell it to others?
    2. After the extrajudicial settlement, and having the transfer title to us, is it absolute? what if another heir comes out after it?
    3. What if we, the buyer is composed of two individuals, can we have a title having both names on it, even if we are not related?

    Hoping for your response. Thanks and Best Regards

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply
  26. John

    Hello.
    I just have a couple of questions. We are planning to buy a lot that has been sold to the seller (“Juan”) through a Extra-Judicial Settlement with Sale. He has the document that was signed by the heirs of the deceased owner which stated the they agreed to sell the portion of the land to “Juan”. However, Juan did not transfer the title under his name. Upon noticing that he does not have the CTC, I brought up that concern to Juan and he said that the heirs are willing to sign on the deed of sale that we are going to execute.
    1. What is the legal process in case that we will buy that portion of land?
    2. How long is the process will usually take?

    Reply
    • Lawyers in the Philippines

      Sent an email.

      Reply

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