fbpx

Bacolod City Properties

Finding you an investment at the heart of Negros

Ways to Transfer Land Title to Family Members

Posted on

|

Edited on

Post by

The best way to transfer a land title to family members in the Philippines depends on the specific circumstances of the transfer, such as whether it is through sale, donation, or inheritance. Below are the key methods and their legal considerations:

1. Transfer Through Sale

  • If the transfer is through a sale, the family member purchasing the property must execute a Deed of Absolute Sale.
  • The sale must be registered with the Register of Deeds, and the corresponding taxes (Capital Gains Tax, Documentary Stamp Tax, etc.) must be paid.
  • The new title will be issued in the buyer’s name upon compliance with all requirements.
  • This is a common practice in the Philippines where the sale price is lowered in order to transfer the title. But note that the sale of land at a very inadequate price raises legal issues under Philippine law. Article 1470 of the Civil Code provides that gross inadequacy of price does not affect the validity of a contract of sale, except when it indicates a defect in consent or that the parties intended a donation or another type of contract. [Heirs of Policronio Ureta vs. Heirs of Liberato Ureta, 2011] A very low price does not invalidate the sale, except when there is vitiated consent or a different intention. Under Article 1602 of the Civil Code, a contract purporting to be a sale may be presumed to be an equitable mortgage if the price is unusually inadequate or if other circumstances suggest that the transaction was intended to secure a debt. [Uy vs. CA, 1994] If the price is simulated or the sale is without consideration, the sale is void under Article 1471 of the Civil Code. [Heirs of Policronio Ureta vs. Heirs of Liberato Ureta, 2011]

2. Transfer Through Donation

  • Deed of Donation must be executed, specifying the property being donated and the recipient.
  • Taxes such as the Donor’s Tax must be paid, and the donation must be registered with the Register of Deeds.
  • The title will be transferred to the donee upon registration.

3. Transfer Through Inheritance

  • If the transfer is due to inheritance (upon the decedent’s death), the estate must undergo settlement proceedings.
  • The court or extrajudicial settlement will determine the heirs entitled to the property.
  • The Register of Deeds will issue new titles to the heirs upon submission of the required documents, including the court order or extrajudicial settlement agreement.

4. Special Considerations for Agrarian Reform Lands

  • If the land is covered by agrarian reform laws, restrictions on transferability may apply. 
  • In some instances, lands awarded under agrarian reform may only be transferred through hereditary succession or to qualified beneficiaries such as relatives within certain number of degrees, subject to approval by the Department of Agrarian Reform.

5. Trust Arrangements

  • If the land is held in trust for family members, the trustee may execute a Deed of Reconveyance to transfer the title to the rightful beneficiaries. [Serrano vs. Guzman, 2021]

General Steps for Title Transfer:

  1. Execute the appropriate legal document (e.g., Deed of Sale, Donation, or Settlement Agreement).
  2. Pay applicable taxes (e.g., Capital Gains Tax, Donor’s Tax, Estate Tax).
  3. Secure a Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR).
  4. Submit the CAR, original title, and other required documents to the Register of Deeds for registration.
  5. Obtain the new title in the transferee’s name.

Each method has specific legal and tax implications, so it is advisable to consult a lawyer or a notary public to ensure compliance with all legal requirements.

https://totoagungno1.xyz/ https://motivasiagung.com/ https://totoagung2alt.com/ https://antartidargentina.com/ https://taichinhhieuqua.com/ https://cantiktotojp.com/ https://whalebonestudios.com/ https://167.71.213.43/ https://167.71.204.61/ https://amin-toto.com/ https://cadizguru.com/ https://157.245.54.109/ https://128.199.163.73/ https://restoslot4dweb.com/ https://hokkaido-project.com/ https://slotgacor4dlink.com/ https://akb48nensensou.net/ https://bigprofitbuzz.com/