How to Transfer Land Title From Deceased Parents

Land titles are one good investment. Oftentimes, our parents most likely secured too few pieces of land for us. Moreover, it’s one good way of ensuring investments before. But what if an accident came up and your parents weren’t able to fully authorize or validate the transfer of land to your name? What if they do not have enough writing on who-gets-what between you and your siblings? Is transferring the land title name to yourself an option?

To start off, yes, you can definitely transfer the name in the land title from your deceased parents. Whether or not your parents were able to secure definite writing on the distribution of assets to you and your siblings, you definitely can transfer it. Although of course, you and your siblings need to discuss how the distribution will be.

Read: How to verify if land title is authentic in the Philippines

Steps for Transferring Land Title From Deceased Parents

First and foremost, the children or child of the deceased owner needs to secure and execute a Deed of Extrajudicial Settlement of the Estate from a lawyer. This is where the need to talk about how the distribution of assets between children comes in. All children should enter an agreement on how to dispose or distribute properties and assets left off. Even if a child is in no interest, they should get into an agreement; the deed of extrajudicial settlement would not be processed.

This deed of extrajudicial settlement needs to be published in a newspaper of general circulation in the province and city.

The publication should appear once a week for three consecutive weeks. 

After the number of weeks required, descendants need to get the certification and publication in the newspaper for them to be able to bring it to the Bureau of Internal Revenue (BIR) for affirmation and verification.

The BIR will then release a certificate that descendants should bring to the Land Registration Authority or in the Registry of Deeds to start the process of filing the transfer. Moreover, descendants should pay the estate tax of the land which is why as soon as the Deed of Extrajudicial Settlement gets released, descendants should immediately settle the file transfer so that the estate tax won’t get accumulated.

Read: How to process land transfer in the Philippines

Here is the step-by-step Guide;

Step 1. Obtain the Death Certificate

Secure a certified copy of the death certificate of the deceased parent from the Philippine Statistics Authority (PSA) or the local civil registrar. This is a basic requirement for all other steps.

Step 2. Secure an Affidavit of Self-Adjudication or Extra-Judicial Settlement

• If there is only one heir, you can execute an Affidavit of Self-Adjudication.
• If there are multiple heirs, the heirs need to execute an Extra-Judicial Settlement of Estate. This document distributes the property among the heirs according to the rules of intestate succession.
• Both documents should be notarized.

Step 3. Publish the Settlement in a Newspaper

For Extra-Judicial Settlement, you must publish a notice of the settlement in a newspaper of general circulation once a week for three consecutive weeks, as required by law.

Step 4. Pay the Estate Tax

File the Estate Tax Return and pay the necessary estate tax at the Bureau of Internal Revenue (BIR). The estate tax must be paid within one year from the date of death, but the BIR may grant extensions. Late payments are subject to penalties and interest.

Estate taxes are calculated based on the value of the estate. You will need documents like the Certified True Copy of the Land Title (Transfer Certificate of Title/Original Certificate of Title) and Tax Declaration.

Step 5. Obtain a Certificate Authorizing Registration (CAR) from BIR

Once the estate tax is paid, the BIR will issue a Certificate Authorizing Registration (CAR), which you will need to transfer the title.

Step 6. Update the Tax Declaration

Submit the CAR to the Assessor’s Office to update the property’s Tax Declaration in the names of the heirs. You will need a copy of the Deed of Extra-Judicial Settlement and the Death Certificate.

Step 7. Transfer the Title at the Registry of Deeds

With the CAR and the updated tax declaration, proceed to the Registry of Deeds where the land title is registered. The Registry will transfer the title from the deceased parent to the heirs.

Submit the following:

• Original Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)
• Notarized Deed of Extra-Judicial Settlement
• BIR-issued Certificate Authorizing Registration (CAR)
• Estate Tax Return and proof of payment
• Updated Tax Declaration
• Death Certificate

Step 8. Pay Transfer Fees

You will need to pay the transfer fees, which may include documentary stamp tax, transfer tax, registration fees, and other charges. These can be paid at the Registry of Deeds or the City/Municipal Treasurer’s Office.

Step 9. Secure the New Title

After processing, the Registry of Deeds will issue the new Transfer Certificate of Title (TCT) in the name of the heirs.

Step 10. Update the Tax Declaration in the Name of the Heirs

After the title is transferred, submit the new title to the Assessor’s Office to update the Tax Declaration to reflect the new ownership.

Documents Required for Transferring Land Title From Deceased Parents

• Death Certificate of the deceased parent
• Affidavit of Self-Adjudication (if sole heir) or Extra-Judicial Settlement of Estate (for multiple heirs)
• Certificate Authorizing Registration (CAR) from the BIR
• Estate Tax Return and proof of estate tax payment
• Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT)
• Updated Tax Declaration
• Proof of Publication (for Extra-Judicial Settlement)

Fees involved in transferring the land title from the deceased parents

When transferring a land title from deceased parents in the Philippines, several fees are involved, including taxes, legal fees, and administrative charges. Here’s a breakdown of the common fees:

1. Estate Tax

The estate tax is calculated based on the net value of the estate (total assets minus liabilities). The tax rate is currently 6% of the net estate value.

To determine the value of the property, you need to get the Fair Market Value (FMV) either from the Bureau of Internal Revenue (BIR) or the Assessor’s Office.

2. Documentary Stamp Tax (DST)

Documentary Stamp Tax is 1.5% of the property’s Fair Market Value (FMV) or the Selling Price, whichever is higher.

3. Transfer Tax

The Transfer Tax is usually 0.5% to 0.75% of the FMV or Zonal Value of the property, depending on the city or municipality. This is paid to the Local Treasurer’s Office where the property is located.

4. Registration Fees

The Registry of Deeds charges a registration fee for the transfer of title, which is based on the property’s FMV or Zonal Value. The fee is typically 0.25% of the property value but may vary depending on local rules.

5. Notarial Fees

Notarization of the Extra-Judicial Settlement of Estate or the Affidavit of Self-Adjudication is required. Notarial fees vary, but they can be around 1% to 2% of the property’s value or a flat fee, depending on the complexity of the document and the notary public.

6. Publication Fee

If the property is settled extra-judicially, you are required to publish the Extra-Judicial Settlement of Estate in a newspaper of general circulation for three consecutive weeks. The publication fee can range from ₱3,000 to ₱10,000 depending on the newspaper.

7. Attorney’s Fees (Optional)

If you hire a lawyer to assist with the estate settlement, attorney’s fees may apply. This can vary widely depending on the complexity of the estate and the lawyer’s rates. Some lawyers charge a flat fee, while others charge 5% to 10% of the estate’s value.

8. Miscellaneous Fees

• Clearance fees from the barangay or city/municipality.
• Processing fees for updated Tax Declaration at the Assessor’s Office.
• Other incidental charges may include certified true copies of the title, tax declarations, and other documents.

Sample Calculation

For a property valued at ₱1,000,000:

• Estate Tax (6%) = ₱60,000
• Documentary Stamp Tax (1.5%) = ₱15,000
• Transfer Tax (0.5%) = ₱5,000
• Registration Fee (0.25%) = ₱2,500
• Notarial Fee (1%) = ₱10,000 (approx.)
• Publication Fee = ₱5,000 (approx.)

Total (Approximation)

₱97,500 (excluding attorney’s fees and miscellaneous charges).

Notes

• Zonal Values: Property value used by the BIR for tax calculations, based on the property’s location.
• Fair Market Value: Determined by the Assessor’s Office and used as a basis for tax calculations.

Frequently Ask Questions (FAQ)

Are there penalties if this matter is forgotten or disregarded?

Certainly, yes. As said above, if the estate tax is paid later than the due date, there would already be a 25% penalty PLUS 20% yearly. This is why the children or descendants should action the transfer right away.

What if some of the siblings aren’t part of the will or the written document? Would they still be able to get a share of the asset?

All children should sign the agreement. Even if they’re not interested because the deed of extrajudicial settlement would not start process without the completion of signatures from siblings/descendants. If one of the siblings is not interested in taking part of the agreement, you should go to court to call the attention of the people involved.

But what if siblings are deceased?

If siblings are gone and they have children, their children has all the right to be part of the transferring of land title.

What happens if my deceased parent did not leave a will?

If there is no will, the estate will be settled according to the rules of intestate succession under Philippine law. The property will be divided among the legal heirs (spouse, children, etc.) based on the prescribed legal shares.

Who are considered legal heirs under Philippine law?

Primary heirs include the surviving spouse and legitimate children (including adopted ones). If the deceased has no children, the secondary heirs (such as parents or siblings) may inherit the property.

Do I need to go through probate if there is no will?

No probate is required if there is no will. Instead, the heirs will execute an Extra-Judicial Settlement of Estate to transfer the title, provided they agree on the division of the estate. If there’s a dispute among heirs, the case might need to be settled in court.

What is an Extra-Judicial Settlement of Estate?

An Extra-Judicial Settlement of Estate is a legal document used by the heirs to divide and distribute the estate among themselves without going through the court, as long as they agree on the settlement terms. This document must be notarized and published in a newspaper.

How is estate tax calculated?

Estate tax is calculated at 6% of the net estate value, which is the total value of the assets (like land) minus any debts, expenses, and deductions allowed by the BIR (e.g., medical expenses, funeral expenses, etc.).

When should I pay the estate tax?

The estate tax must be filed and paid within one year from the date of the decedent’s death. Extensions may be granted, but penalties and interest will accrue if it’s late.

What happens if the estate tax is not paid on time?

Late payment of estate tax can result in penalties, which include surcharges, interest, and compromise penalties imposed by the BIR. The estate cannot be settled or transferred until the tax is paid.

Can I sell the property before transferring the title?

No. The property must first be transferred into the names of the heirs before it can be legally sold. This requires payment of the estate tax and issuance of a Certificate Authorizing Registration (CAR) by the BIR.

How long does the process take?

The process can take anywhere from a few months to over a year depending on factors like the complexity of the estate, whether all documents are in order, timely tax payments, and if there are any disputes among heirs.

Do I need a lawyer to transfer the land title?

While it is not required, it is highly advisable to hire a lawyer, especially if the estate is large or there are multiple heirs. A lawyer can assist in preparing legal documents, ensuring tax compliance, and avoiding delays.

What is the significance of the Certificate Authorizing Registration (CAR)?

The CAR is issued by the BIR once the estate tax has been paid. It is a crucial document that allows the transfer of the title from the deceased parent to the heirs. Without it, the Registry of Deeds will not process the title transfer.

Do I need to pay taxes on future property sales after the title transfer?

Yes, if the heirs decide to sell the property after the transfer, they will be liable for taxes, including Capital Gains Tax (6%) and Documentary Stamp Tax (1.5%) based on the selling price or the Fair Market Value (whichever is higher).

What if the heirs are minors?

If the heirs include minors, the court may appoint a legal guardian to act on their behalf in the estate settlement. In most cases, court approval is needed before minors’ shares in the estate can be sold or disposed of.

What if the title is lost?

If the original land title is lost, you will need to file a petition for reconstitution of title in court, presenting proof of ownership and a certified true copy of the title from the Registry of Deeds.

Now that you know how to transfer land title from deceased parents to your name, it would now be easier for you. Even if there’s no official signatory reminder, once proven that you are a legitimate child of the deceased, you will still be able to transfer land title privilege to your name.

Know someone who might benefit from this? Or are you part of the population who has dilemmas with transferring land title names to yourself? Share this post to your friends because who knows? A simple share might be the answer to their problems.

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DISCLAIMER: The information provided here is for general informational purposes only and does not constitute legal, financial, or professional advice. Procedures, laws, and fees related to land title transfers may vary depending on your location and specific circumstances. It is always recommended to consult with a licensed lawyer or real estate professional to ensure compliance with all legal requirements and processes.

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REFERENCES

• BIR Penalty (https://www.bir.gov.ph/penalties)
• BIR Estate Tax (https://www.bir.gov.ph/estate-tax)
• Land Registration Authority (https://lra.gov.ph/registry-of-deeds/)