Court Certification Requirement for a Quitclaim Deed before Paying Donor’s Tax

Philippine Law, Practice, and Procedure – A Comprehensive Guide

1. Why this matters

Many Filipino families use a quitclaim (or waiver of rights) to transfer property or hereditary shares to a relative. Once the quitclaim is treated as a donation, the Bureau of Internal Revenue (BIR) will not issue a Certificate Authorizing Registration (CAR) until donor’s-tax has been paid. A common practical question is: must I secure a court certificate or court order first?

2. Quitclaim Deed in Philippine law

Key point	Legal basis	Practical implication
A quitclaim is a public instrument where a person renounces or assigns present or future rights over property.	Arts. 6, 1311, 1395, 1401 Civil Code; Sec. 112, Land Registration Act	Must be in a notarised deed to bind third persons and to be registrable.
If the renunciation is in favour of an identified person, it is deemed a donation inter vivos.	Arts. 773, 774, 749 Civil Code; BIR RMC 34-2013	Donation formalities apply (acceptance, description of property, etc.).
If the renunciation is in favour of the estate or the public, no donation arises; it is a repudiation of inheritance.	Art. 1041 Civil Code; BIR Ruling DA-039-20	Not subject to donor’s tax, but estate-tax implications remain.

3. Donor’s-Tax primer (after the TRAIN Law)

Item	Rule
Rate	Single 6 % on total net gifts > ₱250,000 per calendar year (Sec. 99, NIRC as amended by RA 10963).
Return & payment	BIR Form 1800, filed within 30 days from the date of donation in the Revenue District Office (RDO) where the property is located.
CAR issuance	RMO 15-2003, RMC 68-2020: release within 5–20 days once complete documents & tax are received.
Penalty for late payment	25 % surcharge + 12 % interest p.a. + compromise penalty.

4. Documentary requirements for a quitclaim treated as a donation

Notarised Quitclaim / Deed of Donation (with acceptance clause).
Taxpayer Identification Numbers and government-issued IDs of donor & donee.
Certified true copy of the Transfer/Original Certificate of Title, latest Tax Declaration & Real-property Tax clearance.
Sworn Declaration of Value (Fair Market & Zonal, whichever is higher).
Official receipts for documentary-stamp tax (1.5 % of FMV) and donor’s-tax payment.
Special Power of Attorney or court order, only if required (see Sec. 5 below).

Notice: No item on the BIR checklist mentions a court certification as a default requirement.

5. When a court certificate is required – the narrow exceptions

Scenario	Why court action is needed	Typical document BIR will ask for
A. Property is under an active probate or intestate case (quitclaim executed while the estate is sub judice)	Partition or donation of estate property during probate requires RTC approval under Rule 86 §1 & Rule 90 §2 Rules of Court.	Certified true copy of the order approving the compromise/partition or a certification from the clerk of court that the case has been finally closed.
B. Donor is a minor, incompetent, or subject to guardianship	Donations of ward’s property need authority of the proper court (Rule 97 §7, Family Courts Act).	Copy of the special authority / decision.
*C. Donation involves future* property or contingent hereditary rights** whose disposition is being litigated	Court approval removes lis pendens and clears title.	Order lifting the notice of lis pendens or certifying that none exists.
D. Quitclaim results from a court-approved compromise, judgment, or settlement of a civil case	BIR wants proof that the quitclaim is final and enforceable.	Entry of judgment or Certificate of Finality.

Outside these situations, the BIR and the Registry of Deeds do not ask for a court certificate. In practice, many RDOs still accept a Notarised Quitclaim plus the regular documentary set and process the CAR.

6. Step-by-step procedure (standard case, no court certificate)

Draft & notarise the quitclaim/deed of donation; secure donee’s written acceptance.
Compute DST (1.5 % of FMV) and donor’s tax (6 %).
File BIR Form 1800 with complete attachments within 30 days.
Pay at an AAB or via eFPS/G-cash where allowed.
Follow-up for the CAR; once released, pay transfer fees at City/Municipal Hall, then file at the Registry of Deeds for new title.

7. Jurisprudence & administrative rulings worth citing

Citation	Gist	Take-away
Heirs of Malate v. Gamboa, G.R. 181615 (2014)	Heirs’ waiver in favour of some co-heirs is a donation subject to donor’s tax.	Form and tax compliance are indispensable for validity and registration.
BIR RMC 34-2013	Distinguishes pure repudiation (no donor’s tax) from selective renunciation (taxable).	Clarifies tax base and filing duty.
BIR Ruling DA-598-11	Quitclaim during pending probate must have court approval.	Confirms the “Probate pending = court-order” rule for CAR issuance.
Estate of López v. CIR, CTA Case 9049 (2023)	CAR denied where quitclaim lacked court-approved settlement in active estate.	Reinforces documentary-integrity doctrine.

8. Practical tips for practitioners

Check for pending cases in the RTC and MTC docket before drafting the deed.
Add an acceptance page signed by the donee; BIR routinely rejects deeds without explicit acceptance.
Segregate estate-tax issues – pay estate tax first if title is still in the deceased’s name.
Use the BIR’s eONETT portal for faster assessment (pilot RDOs only).
Keep the two-year window in Rule 74 §4 in mind: a quitclaim can still be contested within two years of its registration.

9. Consequences of skipping required court certification

Consequence	Effect
BIR will hold CAR	Property cannot be transferred; donor’s-tax window may lapse, causing penalties.
Register of Deeds will annotate notices	Title shows encumbrance or lis pendens, affecting marketability.
Future heirs/creditors can nullify the deed	Art. 1390, 1397 Civil Code; action for annulment within 4 years.
Criminal exposure	Filing a falsified certification is estafa/falsification (Art. 171 RPC).

10. One-page checklist

❑ No active probate/guardianship? → proceed without court certificate.
❑ If yes, secure RTC order approving quitclaim.
❑ Notarised deed + donee acceptance.
❑ All IDs, titles, tax decs, valuation docs.
❑ Pay DST → Pay donor’s tax → Get CAR.
❑ Register deed & CAR → secure new title.

11. Frequently asked questions

Question	Short answer
Q: We’re siblings waiving in favour of our eldest brother; court certificate needed?	No, unless our parents’ estate is still in probate.
Q: Quitclaim covers condominium parking slots only – still donor’s tax?	Yes. Real or personal property alike; rate is a flat 6 %.
Q: Can we pay donor’s tax first, then get the court order later?	The RDO will not release the CAR without the complete documentary set. If a court order is required, it must accompany the return.
Q: How do we know if the clerk of court certificate is final?	It should recite the case number, state that the decision approving the compromise is final & executory, and bear the dry seal of the court.

12. Conclusion

A court certification is the exception, not the rule. For most straightforward family quitclaims treated as donations, a properly notarised deed and the usual BIR documentary set are enough to pay the 6 % donor’s tax and secure a CAR. Court involvement becomes mandatory only where the quitclaim is intertwined with pending probate or guardianship proceedings (or other situations where the Civil Code or the Rules of Court expressly require judicial approval). Practitioners who know these lines of demarcation save clients both tax penalties and months of bureaucratic delay.

This article is for educational purposes and does not constitute legal advice. Engage counsel for specific transactions.