A Deed of Donation is the legal instrument used when a property owner (donor) transfers ownership to another (donee) gratuitously (without valuable consideration). In Philippine law, donations are primarily governed by the Civil Code provisions on Donations and are shaped in practice by notarial rules, BIR tax requirements, and land registration procedures.

This article walks through (1) what a valid donation is, (2) the strict formalities for real property, (3) how to draft the deed, (4) taxes and registration, (5) common pitfalls, and (6) practical execution checklists.

1) Donations in Philippine Law: The Big Picture

A. What makes a transaction a “donation”

A donation exists when:

The donor intends to give and transfer ownership for free (animus donandi), and
The donee accepts the gift.

If there is any real “price” or exchange, the document may be treated as a sale or another contract—changing taxes, remedies, and legal consequences.

B. Donation inter vivos vs. mortis causa

Donation inter vivos
- Takes effect during the donor’s lifetime.
- Requires compliance with the formalities for donations.
- Generally irrevocable, subject to limited grounds for revocation/reduction.
Donation mortis causa
- Intended to take effect upon death.
- Often treated like a will, requiring testamentary formalities.
- If you “donate” but the transfer is clearly meant to occur only at death, it may be invalid unless executed as a will.

Practical tip: If the donor wants the donee to own it now (even if donor keeps the right to use it), use donation inter vivos plus reserved usufruct or similar lawful reservations.

2) Legal Requisites of a Valid Donation (Especially for Real Property)

A. Capacity of the donor

The donor must have:

Legal capacity to contract, and
The right to dispose of the property (ownership and authority to transfer).

B. Capacity of the donee

The donee must be capable of accepting. For minors or incapacitated persons, acceptance is typically made by:

Parents (for minors), or
Legal guardians/representatives (often with court authority where required).

C. The essential requirement: Acceptance

A donation is not perfected without acceptance by the donee. For real property, acceptance has strict form rules (next section).

3) The Non-Negotiable Formalities for Donations of Real Property

For immovable property (land, house, condominium unit), Philippine law imposes strict form requirements. Failure usually means the donation is void, not merely voidable.

A. Must be in a public instrument

A Deed of Donation of real property must be in a public instrument—in practice, a document notarized by a notary public.

The deed should:

Identify the parties,
Clearly state it is a donation (gratuitous),
Provide a complete property description (title number, technical description, location), and
State any charges/conditions (if any).

B. Acceptance must be:

In the same public instrument, or
In a separate public instrument.

If acceptance is in a separate instrument, there are additional steps:

The donor must be notified of the acceptance in an authentic form, and
The fact of notification must be noted in both instruments.

Practical takeaway: To avoid technical defects, many lawyers place donation and acceptance in one notarized deed, signed by both donor and donee.

4) What Can (and Cannot) Be Donated

A. Present property only

As a rule, future property cannot be donated. Donations are meant to cover what the donor presently owns and can dispose of.

B. Limitations: support and legitimes

Even a valid donation can later be:

Reduced if it impairs the legitime of compulsory heirs (forced heirs), and/or
Challenged if it leaves the donor without sufficient means of support (depending on the circumstances and applicable provisions).

Estate-planning reality: A donation may be executed perfectly and still become a problem later in probate/estate settlement if it disrupts legitimes.

C. Restrictions on certain titled lands (important in practice)

Some properties carry legal restrictions, for example:

Agrarian reform awarded lands (e.g., CLOA/EP) may have transfer restrictions for a period or except to qualified heirs.
Properties with liens/encumbrances (mortgages, adverse claims, lis pendens) may still be donated, but the lien remains unless properly dealt with.

5) Special Situations You Must Handle Correctly

A. Donation between spouses

As a general rule under Philippine family law principles, donations between spouses during marriage are prohibited/void, subject to narrow exceptions (often described as “moderate gifts” on occasions of family rejoicing). This is a major trap: spouses often try to “donate” property to each other for convenience.

Safer alternatives often used in practice: estate planning through wills, legitimate property regime planning, or proper conveyancing strategies—always with counsel.

B. Property under Absolute Community or Conjugal Partnership

If the property is community or conjugal, a donation may require:

The consent of both spouses, and
Compliance with limitations on disposition to protect the family.

Do not assume one spouse can unilaterally donate a property that is not exclusively owned.

C. Donation with reservation of usufruct (common)

A donor may donate ownership but reserve usufruct (right to use/enjoy fruits) for life or a period. This is widely used when parents donate property to children but want to retain possession/benefit.

Drafting must be careful:

Define the usufruct clearly,
Specify who pays real property tax, insurance, repairs, association dues, etc.,
Address what happens upon donor’s death (usufruct extinguishes).

D. Donation with conditions

Donations may be subject to lawful conditions (e.g., donee must maintain donor, keep property within family, etc.). If conditions are impossible, illegal, or contrary to law/morals/public policy, they can invalidate the condition (and sometimes affect the donation).

6) How to Draft the Deed: A Practical, Lawyer-Style Outline

A solid Deed of Donation (real property) typically includes:

Title

“DEED OF DONATION (Inter Vivos)”

Parties

Donor: name, citizenship, legal age, civil status, address
Donee: same details Include spouses where relevant.

Recitals (WHEREAS clauses)

Donor’s ownership (cite TCT/CCT number)
Donor’s intent to donate gratuitously
Donee’s willingness to accept

Description of Property

TCT/CCT number
Lot/unit details
Area
Location
Technical description reference
Tax Declaration number (helpful in practice)

Donation Clause

“Donor hereby gives, transfers and conveys by way of donation…”
State it is free of charge, except stated obligations/conditions.

Conditions / Reservations (if any)

Reserved usufruct
Assumption of real property taxes/dues
Non-alienation clauses (note: enforceability can be nuanced)
Any donor support arrangements (be careful: could be treated as an onerous contract if it becomes the “price”)

Acceptance

Donee’s express acceptance in the same deed (recommended)

Warranties / Representations

Donor is true owner; property is free from liens (or list liens)
Parties’ authority/capacity

Taxes and Expenses

Who pays donor’s tax, transfer tax, registration fees, documentary stamp tax (if assessed), notarial fees, etc.

Signatures

Donor and donee signatures
Spousal consent where required
Witnesses (often included)

Acknowledgment (Notarial block)

Proper notarial acknowledgment with IDs, etc.

7) Execution Steps: From Signing to New Title

Below is the typical real-world workflow.

Step 1: Gather documents (common requirements)

Often requested by notary/BIR/RD/LGU:

Owner’s duplicate copy of TCT/CCT
Tax Declaration and property location details
Latest Real Property Tax (RPT) receipts / tax clearance (varies by LGU)
Valid government IDs of parties (and spouses)
Proof of relationship if relevant (e.g., birth certificates if parent-to-child; sometimes helps with processing)
If representative signs: SPA (Special Power of Attorney), properly notarized/consularized
For condos: condominium corporation clearance/dues status (often required in practice)

Step 2: Sign and notarize the Deed of Donation

Preferably, donor and donee sign one deed with acceptance included.
Ensure notarization is done properly (competent evidence of identity, correct notarial details).

Step 3: File and pay donor’s tax with the BIR

Donation of property is generally subject to donor’s tax, computed on the net gift based on tax rules in effect at the time.
A donor’s tax return is filed, and supporting documents are submitted.

After evaluation and payment (if any), the BIR issues an eCAR (Certificate Authorizing Registration), which is typically required to transfer title.

Note: Tax rules and BIR documentary requirements can change through laws/regulations/issuances, so the exact forms, deadlines, and documentary checklist should be verified at the time of filing.

Step 4: Pay local transfer tax and other LGU requirements (where applicable)

Many LGUs require:

Transfer tax payment,
Updated tax clearance,
Other local fees before they’ll process the transfer.

Step 5: Register with the Registry of Deeds (RD)

Submit:

Notarized Deed of Donation,
BIR eCAR,
Proof of tax payments,
Title and RD requirements.

The RD will:

Cancel the old title and issue a new TCT/CCT in the donee’s name (subject to processing time and completeness).

Step 6: Update the Tax Declaration with the Assessor’s Office

After the new title:

Transfer/update Tax Declaration to donee’s name.
This is important for future RPT billing and to avoid disputes.

8) Taxes and Fees: What Commonly Applies

In practice, the transfer of real property by donation may involve:

Donor’s tax (national tax)
Documentary stamp tax (DST) (often assessed on documents affecting real property transfers)
Transfer tax (local tax, LGU)
Registration fees (Registry of Deeds)
Notarial fees
Possible miscellaneous fees (certified true copies, clearances, etc.)

Because these can be significant, parties should decide up front (and state in the deed) who shoulders which costs.

9) Can a Donation Be Revoked or Attacked Later?

Even after execution, donations face these legal risks:

A. Revocation (limited grounds)

Certain circumstances can allow revocation, commonly discussed under:

Non-fulfillment of conditions (if the donation is conditional), and/or
Ingratitude (serious acts defined by law).

Revocation has strict standards and timelines; it’s not as simple as “I changed my mind.”

B. Reduction for being “inofficious”

If a donor gives away too much and later it is shown the donation impaired compulsory heirs’ legitimes, the donation can be reduced to the extent necessary to preserve legitimes.

C. Nullity due to formal defects

A deed that fails the required public-instrument/acceptance rules for immovables can be void, jeopardizing title transfer and creating long-term property disputes.

10) Common Pitfalls (and How to Avoid Them)

No valid acceptance (or acceptance not in the proper form) → Put acceptance in the same notarized deed whenever possible.
“Donation” that is actually a sale (hidden consideration) → If money changes hands, document the correct contract.
Donating property you don’t exclusively own → Check property regime, co-ownership, and spousal consent rules.
Ignoring liens and restrictions → Verify title annotations, mortgages, adverse claims, agrarian restrictions.
Tax non-compliance → Without BIR clearance/eCAR, registration is typically blocked.
Estate-planning consequences overlooked → Consider legitimes and family settlement implications.

11) Practical Checklist: A “Clean” Donation Transfer

Drafting checklist

✅ Public instrument (notarized deed)
✅ Full property identification (TCT/CCT + technical reference)
✅ Donee acceptance in the same deed
✅ Spousal consent/participation where required
✅ Clear allocation of taxes/fees
✅ Conditions/reservations written precisely (if any)

Execution checklist

✅ Notarize properly
✅ File donor’s tax return and pay required taxes
✅ Secure BIR eCAR
✅ Pay LGU transfer tax (if required)
✅ Register with RD for new title
✅ Update Tax Declaration with assessor

12) When You Should Definitely Get a Lawyer (Not Optional in Practice)

Even though deeds can look straightforward, you should involve counsel when:

The property is conjugal/community, co-owned, inherited, or encumbered,
The donor wants to reserve usufruct or impose conditions,
The donee is a minor or represented by someone else,
The donation is part of estate planning among compulsory heirs,
The property has agrarian or other statutory restrictions,
The parties are spouses (because donation rules here are a frequent source of void transfers).

If you want, I can also provide a high-quality drafting template structure (with bracketed placeholders) for a Deed of Donation of real property with (a) simple unconditional transfer, or (b) reserved usufruct—written in a style that’s commonly accepted for notarization and registration in the Philippines.