Transfer a Land Title from a Deceased Parent





Extra-Judicial Settlement of the Estate

In order to have the land title transferred, it needs to be settled first in what is legally called the Extrajudicial Settlement of the Estate. The estate is the property involved. The process involves drafting a contract which clearly indicates how the property will be distributed among the heirs. This process is also known as "out of court settlement" because as the term suggests, the heirs will no longer have to go to court to distribute the properties which the deceased parent/s left.

An Extrajudicial Settlement of Estate is just one among many ways to transfer the ownership of assets in an estate to the heirs or beneficiaries. It is usually completed after someone dies. It avoids costly litigation for as long as all the beneficiaries agree.

Following Rule 74, Section 1 of the Rules of Court, the heirs need to secure and execute a Deed of Extrajudicial Settlement of Estate and Adjudication of Estate with the help of a lawyer. However, all heirs must get into an agreement, including those who are not interested in the property. The deed should specify the following information:

    The absence of a will.

    Proof that the deceased parent/s has no debts left.

    Name and relationship to the deceased; Heirs should be of legal age, otherwise, minors should have a legal representative.

    Affidavit of self-adjudication, and deed of extrajudicial settlement of estate and adjudication of  the estate (should be signed by all the heirs and afterwards notarized before a Notary Public).

    Description of the property to be divided among the heirs.

    Bond fixed by the court, should there be personal property involved.

After a certain number of weeks, the heirs will have to obtain the certification and publication and have it affirmed and verified by the Bureau of Internal Revenue (BIR). They will release a certificate to the heirs which should be submitted to the Registry of Deeds or Land Registration Authority.

 

What are the Steps in the Extrajudicial Settlement Process?

1.  Prepare the necessary documents:

     A certified true copy of the deceased’s death certificate

    Notarized Deed of Extrajudicial Settlement of Estate, signed by all the legal heirs ( Register the Deed of Extrajudicial Settlement of Estate with the Register of Deeds where the land is located, simultaneously filing the bond).

    Proof of publication of the notice (Publish the Deed of Extrajudicial Settlement of Estate in a newspaper of general circulation once a week for three (3) consecutive weeks.)

    Tax Identification Numbers (TIN) of the deceased and the heirs

    Other relevant documents, such as land titles and tax declarations. 

 

2. File the Deed of Extrajudicial Settlement of Estate and other required documents with the Bureau of Internal Revenue (BIR) in the Philippines.

3. The BIR will assess the estate tax, which the heirs need to pay within six months from the date of the decedent’s death. Penalties and interest may apply for late payment.

4. Secure the Certificate Authorizing Registration (CAR) from the BIR after paying the estate tax.

5. Register the properties with the appropriate government agency (e.g., Register of Deeds for land titles) and have the property titles transferred to the heirs’ names.

6. Pay the corresponding transfer taxes and documentary stamp taxes to the local government and the BIR, respectively.

 

Atty. Su

 

NOTE: This is for informational purposes only and should not be considered as legal advice.





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