1) What a “donation” is (and why the form matters)

A donation is a gratuitous transfer: the donor gives property or a right to the donee without being paid, and the donee accepts it. In Philippine law, donation is a contract—so it is not “complete” unless the legal requisites are present, especially acceptance and the correct formalities.

For property transfers, a Deed of Donation is commonly used for:

Land, house-and-lot, condominium unit
Shares of stock or business interests
Vehicles and other registrable personal property
Money or valuables (though smaller gifts may be informal, large ones should be documented)

A Deed of Donation can be legally void (as if it never happened) if the wrong formalities are used—most often with real property, where the law is strict.

2) Two big categories: donation inter vivos vs donation mortis causa

A. Donation inter vivos (effective during lifetime)

This is the normal Deed of Donation used to transfer ownership now, even if the donor reserves certain rights (like usufruct).

B. Donation mortis causa (effective only upon death)

If the instrument is really meant to take effect only when the donor dies, it is treated like a will and must follow the formalities of a will. A “Deed of Donation” that is actually mortis causa but does not comply with will formalities risks being invalid.

Common red flags that push an instrument toward mortis causa:

Transfer stated to take effect only upon donor’s death
Donor keeps full ownership and control and can revoke freely like a will
Donee gets no enforceable rights until death

Common safe structure for lifetime planning without becoming mortis causa:

Donation now, with donor reserving usufruct (right to use/enjoy) during donor’s lifetime

3) Essential legal requirements (all donations)

A valid donation generally requires:

Capacity of the donor (legal ability to donate)
Capacity of the donee (legal ability to accept)
A donative intent (the gift is truly gratuitous)
A determinate object (the property/right is clearly identified and transmissible)
Acceptance by the donee
Compliance with required form (strictest for immovable property)

Missing any of these can defeat the transfer.

4) What can be donated (and key limitations)

A. Property that can be donated

Movables: money, jewelry, equipment, vehicles, shares
Immovables: land, buildings, condominium units, real rights over land (e.g., usufruct)

B. Future property cannot be donated

A donor cannot donate property the donor does not yet own (future inheritance, future acquisitions), as a rule.

C. The donor must keep enough for support

Donations that leave the donor without sufficient means for support (and for dependents the donor is legally bound to support) can be attacked and reduced under the Civil Code’s protective rules.

D. Legitimes and “inofficious” donations (estate law limits)

If the donor has compulsory heirs (commonly legitimate children/descendants, spouse; and in certain cases other heirs), the law protects their legitime (reserved portion). Donations made during life may be:

brought to collation (treated as advances on inheritance for compulsory heirs), and/or
reduced if “inofficious” (they impair legitimes)

This is a major reason why a donation that is valid in form can still be partially ineffective as against compulsory heirs later.

5) Who cannot donate to whom (void or restricted donations)

Certain donations are void or heavily restricted, including:

A. Donations between spouses

As a general rule, donations between spouses during marriage are void, except moderate gifts on family occasions (e.g., birthdays/anniversaries) consistent with family custom.

B. Donations of community/conjugal property without spousal consent

If property is under Absolute Community of Property (ACP) or Conjugal Partnership of Gains (CPG), a spouse generally cannot donate community/conjugal property without the written consent of the other spouse (subject to narrow exceptions for moderate gifts on occasions).

C. Donations made under prohibited relationships or circumstances

Civil Code rules also void donations in certain situations (e.g., based on illicit relations or abuse of position in specific contexts). These are fact-sensitive and often litigated.

D. Constitutional and statutory limits on land ownership

A donation cannot validly transfer private land to a person/entity not legally qualified to own land (e.g., a foreign citizen generally cannot own private land). Condominium ownership has different rules (commonly tied to foreign ownership limits in the condominium project).

6) The most important distinction: requirements for movables vs immovables

A) Donation of MOVABLE property (personal property)

General form rule:

If the value is ₱5,000 or less: donation may be oral, but must have simultaneous delivery.
If the value is more than ₱5,000: donation and acceptance must be in writing.

Practical reality: For valuable movables (cash gifts, jewelry, vehicles, shares), use a notarized written deed to avoid disputes and for tax/registration compliance.

Special movables:

Vehicles: writing + notarization is typically required for LTO transfer processing.
Shares of stock: written deed + corporate transfer requirements (endorsement, delivery of stock certificate, transfer in corporate books, and supporting corporate approvals where required).
Business interests: may require amendments to partnership records, SEC filings, or company consents depending on structure.

B) Donation of IMMOVABLE property (real property)

Real property donations have strict formalities under the Civil Code. A donation of immovable property is not valid unless:

1) It is in a public instrument

That means a notarized deed (acknowledged before a notary public), not a private handwritten document.

2) The deed must specify the property and the charges/burdens

The deed should clearly identify the property and state any burdens the donee must assume.

Typical required property identifiers:

Title number (TCT/CCT), registry details
Lot/unit number, location, technical description (or reference to technical description)
Boundaries/area (or attach title/technical description)
Tax Declaration details (often used for local processing)

3) The donee must accept

Acceptance is not optional. For immovable property, acceptance must be:

in the same public instrument, or
in a separate public instrument

If acceptance is in a separate instrument:

The donor must be notified of the acceptance in an authentic form, and
The fact of notification must be noted/recorded as required (a commonly missed step)

4) Acceptance must happen while both are alive

Acceptance must be made while donor and donee are living, otherwise the donation fails.

Most common fatal defect in real property donations: a deed signed only by the donor with no proper acceptance (or acceptance done incorrectly).

7) What a Deed of Donation should contain (real property)

A robust deed typically includes:

A. Parties and capacity

Full names, citizenship, civil status
Addresses
Government IDs (for notarization)
For married parties: property regime context and spouse details

B. Ownership and authority to donate

Statement that donor is the registered owner (or has transferable rights)
If property is community/conjugal: spouse consent (and spouse signature where required)

C. Clear property description

Title details (TCT/CCT), registry location
Technical description or reference to title
Improvements (house/building) if included
Condominium particulars (unit, parking slot if separate, common areas interest)

D. Nature of donation

“Pure” donation or “onerous” donation (with conditions/charges)
Any reservation (e.g., donor reserves usufruct/right to occupy)

E. Conditions/charges (if any)

Examples:

Donee must pay real property tax from a certain date
Donee must allow donor to live in the property for life
Donee must shoulder a mortgage or assume certain obligations (this can affect classification and tax treatment)

F. Acceptance clause

Donee’s express acceptance
If separate acceptance deed: compliance language on notice to donor

G. Warranties and disclosures

Encumbrances (mortgage, liens, adverse claims)
Possession status (occupied or vacant)
Tenant issues, if any
For condominium: association dues status

H. Signatures and notarization

Donor (and spouse if required)
Donee (and spouse if relevant for acceptance decisions)
Notarial acknowledgment (with competent evidence of identity)

8) Special requirements and scenarios that commonly arise

A. Donation with reservation of usufruct (life use)

Common in family transfers. Ownership may pass to donee while donor keeps the right to use/enjoy the property. This should be explicitly written and later annotated on the title for enforceability against third parties.

B. Donation of property with an existing mortgage

Check loan documents: the mortgagee/bank may require consent.
A donation that shifts ownership while a mortgage exists can create practical and legal complications.
If the donee assumes the debt, the transaction may be treated partly as onerous (not purely gratuitous), which can affect tax and characterization.

C. Donation to minors

A minor cannot generally act personally; acceptance is through a parent/guardian.
If the donation imposes burdens (onerous donation), additional safeguards or approvals may be required depending on the nature of the burden.

D. Donation to corporations, foundations, or associations

Acceptance must be by an authorized representative, commonly supported by:

Board resolution / secretary’s certificate
Proof of authority of signatory

E. Property subject to transfer restrictions

Certain properties have statutory limits on transfer (examples include some government-awarded lands, agrarian reform-awarded lands within restricted periods, and similar regulated holdings). These transfers may require clearances or may be prohibited during certain periods.

F. Foreign ownership considerations

Donation of private land to a foreigner generally fails due to ownership restrictions.
Condominium transfers may be permissible but are subject to foreign ownership limits in the project and documentation with the condominium corporation.

9) Registration and “what makes it effective against third persons”

A. Between donor and donee

A properly executed and accepted donation can be valid between the parties even before registration.

B. Against third persons (Torrens system)

For titled land/condominium units, registration with the Registry of Deeds is crucial. Under the Torrens system, registration is the operative act that generally binds third persons and updates the title.

10) Taxes, fees, and government clearances commonly required (real property)

A donation is not just a civil law act; it triggers documentary and registration requirements. Common items include:

A. Donor’s tax (BIR)

Donations are generally subject to donor’s tax under the National Internal Revenue Code (as amended).
Under the TRAIN reforms, donor’s tax is generally a flat rate on net gifts in excess of an annual exemption threshold (commonly ₱250,000 per year), subject to applicable exemptions (e.g., certain gifts to the government or qualified institutions).
Donor’s tax returns for gifts are commonly due within 30 days from the date of donation, with supporting documents.

B. Documentary stamp tax (DST)

Transfers of real property typically involve DST filings/assessments in one-time transactions. In practice, DST is usually processed together with donor’s tax compliance for registration purposes.

C. eCAR (electronic Certificate Authorizing Registration)

For real property title transfers, the Registry of Deeds typically requires a BIR Certificate Authorizing Registration (CAR/eCAR) before registering the donation and issuing a new title.

D. Local transfer tax

Cities/municipalities commonly impose a transfer tax on transfers of real property, payable to the local treasurer.

E. Registry of Deeds fees

Registration fees vary depending on property value and the fee schedule.

F. Assessor’s Office update

After registration, the donee typically updates the Tax Declaration (and real property tax billing) at the local assessor’s office.

Important: Tax classification can get complicated when the “donation” has consideration-like features (debt assumption, onerous burdens, mixed transfers), so the structure of the deed matters.

11) Step-by-step: a typical real property donation transfer workflow

Due diligence
- Verify title (TCT/CCT), encumbrances, and owner’s identity
- Confirm marital property regime and spousal consent requirements
- Confirm donee’s legal capacity and land ownership eligibility
Draft the Deed of Donation
- Include full property details, conditions, acceptance, and disclosures
Execute and notarize
- Donor and donee sign (and spouse sign where needed)
- Ensure acceptance is properly done (same deed or separate public instrument with proper notice)
BIR compliance
- File donor’s tax return and pay donor’s tax (if applicable)
- Process DST (as applicable)
- Secure eCAR
Local transfer tax
- Pay to the city/municipal treasurer (requirements vary)
Register with the Registry of Deeds
- Present deed(s), eCAR, receipts, title, and supporting papers
- Obtain new title in donee’s name (and annotate usufruct/conditions if applicable)
Update tax declaration and records
- Assessor’s office tax declaration transfer
- Condo corporation / HOA record updates
- Utility and billing updates (as needed)

12) Revocation and rescission risks (why conditions must be drafted carefully)

Even a valid donation can be revoked or undone in specific cases:

A. Non-fulfillment of conditions

If the donee fails to comply with conditions/charges stated in the donation, the donor may seek revocation under Civil Code rules.

B. Ingratitude

Certain acts of ingratitude can be grounds for revocation, but the law imposes specific grounds and timelines.

C. Birth/adoption/reappearance of a child (in specific circumstances)

Under Civil Code rules, donations may be revocable or reducible in particular situations involving a donor who had no children at the time of donation and later has or is found to have a child, subject to legal conditions.

D. Reduction for being inofficious (legitime protection)

Compulsory heirs may seek reduction of donations that impair legitimes. This does not always void the entire donation but can reduce its effect.

13) Practical drafting checkpoints that prevent invalidity

For real property donations, these are the high-impact checks:

Public instrument (proper notarization)
Complete and accurate property description (title details match exactly)
Clear statement of burdens/conditions (or explicitly “none”)
Express acceptance in the correct form
If acceptance is separate: proper donor notice and documentation of that notice
Spousal consent/signature where property regime requires it
Confirm donee eligibility (especially for land)
Align deed structure with tax and registration requirements (eCAR, transfer tax, RD registration)

Key takeaways

A Deed of Donation is not just a signed paper; for real property, it must be notarized and must include proper acceptance to be valid.
The biggest legal traps are missing acceptance, incorrect acceptance formalities, and spousal/property regime restrictions.
Even valid donations can face later challenges due to legitime rules, statutory transfer restrictions, or failure to comply with conditions.
For titled land and condominium units, registration (with BIR clearance and local compliance) is essential to complete the transfer in practice.