DEED OF DONATION SIGNED BY DONEE: VALIDITY UNDER PHILIPPINE LAW
(A comprehensive legal-practice guide)
1. Why the question arises
In everyday conveyancing, it is common to see a “Deed of Donation” already bearing the donee’s signature (to signify acceptance) while the donor has yet to appear, or vice-versa. Parties then ask:
Is the instrument already valid? Can ownership transfer if only the donee (or only the donor) has signed?
Because a donation inter vivos is a bilateral contract perfected only upon (a) the donor’s donation and (b) the donee’s acceptance made known to the donor during their lifetimes, answers turn on form as much as on substance.
2. Statutory foundation
| Subject | Civil Code provision | Core rule |
|---|---|---|
| Capacity & effect | Arts. 735–737 | Donor must have capacity & free disposal; donee must have capacity to acquire. |
| Form (movables) | Art. 748 | ≤ ₱5,000: oral + simultaneous delivery. > ₱5,000: written (private or public instrument). |
| Form (immovables) | Art. 749 | Public instrument specifying property & charges; acceptance in same or separate public instrument; if separate, donor must be notified “in authentic form”. |
| Perfection | Art. 750 | Donation perfected only when donor knows of acceptance. |
| Revocation | Arts. 760–765 | Possible for birth of children, ingratitude, or non-compliance with charges. |
(The Tax Code and relevant BIR regulations govern donor’s-tax and documentary-stamp implications but do not affect intrinsic validity.)
3. Elements of a valid donation inter vivos
- Capacity & intent of the donor to transfer ownership gratuitously.
- Acceptance by the donee / legal representative.
- Form required by Art. 748 (movables) or Art. 749 (immovables).
- Notice of acceptance to the donor (if acceptance is in a separate instrument).
- For real property: notarization (public instrument) and, for enforceability against third persons, registration with the Registry of Deeds.
4. The role of signatures
| Situation | Who signed? | Is the donation perfected? |
|---|---|---|
| A. Deed signed by donor only; contains a clause that donee “may accept later.” | Donor | Not yet. Instrument is an offer. Acceptance must be expressed in writing (movables > ₱5k) or in a public instrument (immovables) and donor must learn of it. |
| B. Deed signed by donee only (purporting to accept) but donor has not signed any instrument. | Donee | Void. There is no act of disposition by the donor, hence no donation to accept. The document is merely an unaccepted solicitation. |
| C. One public instrument signed by both donor and donee with an “ACCEPTED” clause. | Donor & Donee | Perfected. All requisites concur; donee’s signature is the acceptance; donor’s is the donation. |
| D. Two instruments: (1) Deed of donation signed by donor; (2) Deed of acceptance signed by donee in another public instrument; donor receives authentic notice (e.g., notarized letter, duplicate served by sheriff, personal appearance). | Donor on deed; Donee on separate acceptance | Perfected. Compliance with Art. 749 second & third paragraphs. |
| E. Two instruments as in D but donor dies before receiving notice. | Donor on deed; Donee on separate acceptance | Ineffective. Donation not perfected because donor was never aware of the acceptance during his lifetime (Art. 750, 752). |
5. Key Supreme Court rulings
| Case | G.R. No. | Principle established |
|---|---|---|
| Abellera v. CA (1996) | 100633 | A deed of donation of immovables must be in a public instrument; acceptance in separate instrument is valid only upon proof that donor was notified in authentic form. |
| San Jose v. CA (2002) | 122612 | Where donor knew of acceptance through explicit annotation on the same day, donation was perfected even though the acceptance deed was separate. |
| Heirs of Malate v. Gamboa (2020) | 216758 | Registration cures no intrinsic defect; if donor never learned of acceptance, inscription in the Registry does not validate the donation. |
| Spouses Cruz v. Bancom (1997) | 122041 | Delivery/possession does not waive the need for the formal acceptance required by Art. 749. |
| Alcantara v. Heirs of Olaso (2012) | 171476 | The donee’s signature is not indispensable if acceptance is clearly manifested elsewhere in the instrument; but donor’s signature is always indispensable because donation is essentially an act of disposition. |
(Dates reflect promulgation; citations paraphrased.)
6. Practical drafting checklist
For immovables
Draft a single notarized Deed of Donation and Acceptance whenever feasible.
Recite:
- description of property (OCT/TCT No., lot/plan numbers);
- value or charges (e.g., real-property tax arrears) to be assumed by donee;
- express statement that transfer is “purely gratuitous.”
Conclude with “ACCEPTED by the DONEE” block and obtain donee’s signature.
Secure both parties’ competent evidence of identity and full Community Tax Certificate (CTC) data for notarization.
If using separate acceptance
- Execute a second public instrument entitled “Deed of Acceptance” referencing the donation.
- Serve notarized notice (or personally deliver a duplicate) upon the donor before either party dies; keep proof (return card, sheriff’s return, donor’s acknowledgment) because the burden of proof lies on the donee.
For movables
- When the value exceeds ₱5,000, put the donation in writing; notarization is optional but advisable to avoid later disputes on authenticity.
- Acceptance may be by mere signature of the donee in the same document (or separate written acceptance with notice).
- For vehicles or shares of stock: comply with LTO or SEC / corporate-secretary endorsement requirements to reflect the change of ownership.
7. Tax and registration after perfection
| Step | Movables | Immovables |
|---|---|---|
| Donor’s Tax Return | Within 30 days from execution (Sec. 99, NIRC); pay applicable donor’s tax (progressive rates up to 15%). | Same; zonal value or FMV governs valuation. |
| DST | P15 for every ₱1,000 of value (Sec. 195, NIRC, as amended). | P15/₱1,000 on higher of zonal or assessed value. |
| Transfer Taxes | None. | Local transfer tax (0.5–0.75 %) within 60 days; registration fee; RPT clearance. |
| Registration | If registrable (e.g., vehicle, intellectual property), follow agency procedure. | Present BIR eCAR & notarized deed to Registry of Deeds for issuance of new TCT/OCT in donee’s name. |
(Failure to register does not void the donation between the parties but leaves title vulnerable to third persons acting in good faith.)
8. Common pitfalls
- “Signed by donee only” myth A document titled “Deed of Donation” but bearing only the donee’s signature is—at best—an acceptance. It lacks the essential act of disposition by the donor and is therefore void as a donation.
- Late acceptance Acceptance after the donor’s death transmutes the instrument into a donation mortis causa, which is void for failure to observe testamentary formalities.
- No authentic notice A separate acceptance deed uncommunicated to the donor during his lifetime renders the entire donation ineffective.
- Oral acceptance for land Acceptance of immovables must be in a public instrument—even physical delivery of the title is insufficient.
- Overlooking prohibition under Art. 739 Donations between persons guilty of adultery/concubinage, or between public officers and parties with matters pending before them, are void regardless of form.
9. Special considerations
- Donations by spouses of community property require marital consent (Art. 96, Family Code) or, for conjugal-partnership property, written consent of both spouses (Art. 124).
- Donations to minors must be accepted by parent or legal guardian; guardian’s court approval is not required unless property is encumbered or sold later.
- Net-gift rule applies when multiple donations are made within a calendar year; aggregate value determines the donor’s-tax bracket.
- A condition or mode (e.g., “donee must build a chapel”) should be explicit; non-fulfillment is ground for revocation under Arts. 764–765.
10. Donation mortis causa vs inter vivos
| Feature | Donation inter vivos | Donation mortis causa |
|---|---|---|
| When ownership transfers | Upon donor’s knowledge of acceptance | Upon donor’s death |
| Acceptance required? | Yes | No |
| Form | Arts. 748/749 formalities | Must comply with will formalities (Art. 728) |
| Tax | Donor’s tax | Estate tax |
| Revocability | Generally irrevocable except on statutory grounds | Revocable ad nutum until death |
A deed signed only by the donor, expressly stating that it shall take effect only upon the donor’s death, is really a mortis causa disposition and is void unless executed as a will.
11. Best-practice summary
- Always obtain both signatures in a single notarized deed when practicable; this obviates notice issues.
- If donor cannot appear, prepare a Deed of Donation for the donor and a separate Deed of Acceptance for the donee—but do not forget authentic notice.
- Segregate tax compliance and registration timelines from validity issues; the latter turn strictly on Civil Code formalities.
- Remember that donor’s signature is indispensable; donee’s signature (or acceptance through counsel/guardian) perfects the contract but cannot substitute for the donor’s act of disposition.
- Keep contemporaneous proof (registry receipts, affidavits of personal service) showing that the donor actually learned of the acceptance while alive.
Conclusion
Under Philippine law, a deed of donation that is signed only by the donee is not, by itself, a valid donation. The donor must execute (and sign) an instrument embodying the act of gratuitous disposition; the donee’s signature evidences acceptance. When both requisites are not present in the same public instrument, they may be supplied by a separate deed of acceptance provided the donor is duly notified before death. Observing these formalities—together with the attendant tax and registration steps—secures the transfer of ownership and insulates the donation from later challenge.