A practical legal article for families settling land, houses, and condominium titles after a parent’s death.

1) The big picture: what “inheritance of real property” really means

When a parent dies owning real property in the Philippines (land, a house-and-lot, or a condominium unit), the heirs do not automatically get a new title in their names. What happens first is:

Ownership transfers by operation of law to the heirs at the moment of death (subject to debts and expenses), but
The property remains undivided and “in limbo” administratively until the heirs settle the estate and transfer the title/tax declaration through government processes.

In practice, inheriting real property usually involves three tracks that must line up:

Civil law / succession: Who the heirs are and what shares they get (Civil Code rules on succession, legitimes, wills).
Estate settlement procedure: Extrajudicial vs judicial settlement, and documents to evidence partition/adjudication.
Tax and registration: Paying estate tax (and local taxes/fees), securing BIR clearance (eCAR), then transferring title at the Register of Deeds and updating the tax declaration at the assessor’s office.

2) Start here: identify the property and how it is titled

Different property “paper situations” change the workflow:

A. Titled land (OCT/TCT)

Most common for land. Look for:

Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT)
The “owner” name(s) on the title
Lot details and location
Annotations (mortgage, adverse claim, lis pendens, etc.)

B. Condominium unit (CCT)

Condominiums have a Condominium Certificate of Title (CCT) and often:

A unit number and project name
A “Master Deed” / condo corporation involvement
Association clearances commonly required for transfers

C. Untitled land (tax declaration only)

Common in some provinces. There is no TCT/OCT; ownership is shown by:

Tax Declaration
Deeds, surveys, and possession history Settlement is still possible, but title transfer at the Registry is not—unless you first pursue titling (judicial or administrative procedures depending on circumstances).

D. Property owned through entities

If the “real property” is owned by a corporation or partnership, heirs inherit shares/interest, not the land itself (a different process).

3) Confirm whether the property is part of the estate (and in what portion)

Before you divide anything, determine what exactly your parent owned.

A. Sole ownership vs co-ownership

If the title is solely in the deceased parent’s name: it is generally part of the estate.
If the title lists multiple owners (e.g., your parent and siblings): only the parent’s aliquot share is inherited.

B. Marital property matters (this is huge)

If your parent was married, you must determine the property regime:

Absolute Community of Property (ACP) (common for marriages after the Family Code took effect, absent a pre-nup)
Conjugal Partnership of Gains (CPG) (common in older marriages, depending on timing and circumstances)
Separation of property (if there is a valid agreement)

Why it matters: often, only half of a community/conjugal property belongs to the deceased spouse’s estate. The other half belongs to the surviving spouse already.

Example (simplified): House-and-lot acquired during marriage under ACP → typically:

50% belongs to the surviving spouse (not inherited)
50% goes to the deceased’s estate (to be inherited by heirs)

C. Look for encumbrances or obligations

Mortgages, liens, unpaid association dues (condo), unpaid real property taxes, or pending court cases can affect transfer and settlement.

4) Determine if there is a valid will (testate) or none (intestate)

If there is a will

In the Philippines, a will typically must go through probate in court (judicial process) to be given effect. Even if all heirs agree, a will generally cannot be implemented purely by extrajudicial settlement without probate.

Key points:

Notarial wills (acknowledged before a notary with witnesses) and holographic wills (handwritten by the testator) have different proof requirements.
Probate establishes the will’s due execution and validity.
After probate, distribution follows the will but still subject to compulsory heirs’ legitimes.

If there is no will

Succession is intestate, governed by the Civil Code rules of legal succession (who inherits, and in what proportion).

5) Know the heirs: compulsory heirs and basic share rules

Philippine succession strongly protects compulsory heirs through legitimes (the minimum shares that cannot be impaired except in limited cases such as disinheritance with legal cause).

Common compulsory heirs

Legitimate children and their descendants
Surviving spouse
Legitimate parents/ascendants (if there are no legitimate children)
Illegitimate children (recognized and proven) also have legitimes under law, though their shares differ.

Very common intestate scenarios (simplified)

Below are general patterns people often encounter. Exact computations can vary (especially with illegitimate children, representation, and multiple marriages), but these guide expectations:

Surviving spouse + legitimate children
- Children inherit, and the spouse inherits; the spouse’s share is often equal to a legitimate child’s share (intestate).
Legitimate children, no spouse
- Children inherit in equal shares (with representation by descendants if a child predeceased).
Surviving spouse, no descendants; deceased’s parents alive
- Spouse and parents share (specific proportions depend on whether ascendants exist and other heirs).
Surviving spouse only (no children, no parents/ascendants)
- Spouse may inherit the whole estate.
Illegitimate children present
- They inherit under rules that differ from legitimate children; proof/recognition issues are common practical hurdles.

Important practical note: “Heirship” questions can get complicated fast when there are:

Children from different relationships
Questions of legitimacy/recognition
Missing heirs
Prior marriages and property regimes
Overseas heirs and special documents If there is any doubt, it’s normal to seek a lawyer’s help because an error can void documents or block title transfer.

6) Choose the settlement route: extrajudicial or judicial

This is the core procedural decision.

A. Extrajudicial settlement (fastest when allowed)

You can usually do extrajudicial settlement if:

The decedent left no will, and
The heirs are all identified and in agreement, and
There are no outstanding debts (or debts are settled/adequately provided for), and
All heirs are of legal age (or minors are properly represented, but minors often push the case toward court for safety and validity).

Common extrajudicial instruments:

Deed of Extrajudicial Settlement and Partition (multiple heirs)
Affidavit of Self-Adjudication (only one heir)
Sometimes combined with Sale/Donation of hereditary rights (if an heir is buying out others)

Publication requirement: Extrajudicial settlement documents are typically published in a newspaper of general circulation once a week for three consecutive weeks (a key compliance step that registries and BIR commonly look for).

Bond requirement: A bond is often required to protect creditors for a period (commonly two years) in extrajudicial settlements involving real property—implementation details vary in practice depending on the office and the document structure, but the concept is that creditors have a window to pursue claims.

B. Judicial settlement (estate proceedings)

Court is usually needed when:

There is a will (probate)
Heirs disagree
An heir is missing/unknown
The estate has significant debts/claims needing structured administration
There are minors and the situation is sensitive
There are disputes about ownership, legitimacy, or exclusion

Judicial settlement may be:

Testate (with will; probate)
Intestate (no will; court appoints an administrator)

The court issues authority to administer the estate, settle claims, and eventually distribute property.

7) The practical step-by-step roadmap (typical extrajudicial case)

Below is the usual “family workflow” when there is no will and heirs agree.

Step 1: Gather core documents

You will typically need:

Death Certificate (PSA-certified is commonly requested)
Birth certificates of heirs (PSA) to prove relationship
Marriage certificate (PSA) if spouse is an heir or property regime must be shown
Valid IDs of heirs
Tax Identification Numbers (TINs) of heirs (and of the decedent, if available)
Title (TCT/OCT/CCT) and latest tax declaration
Latest real property tax receipts / tax clearance from LGU
If applicable: loan/mortgage documents, SPA for overseas heirs, proof of payment of condo dues, etc.

Overseas heirs: Usually need a Special Power of Attorney (SPA) executed abroad, often with consular authentication or apostille (depending on the country and applicable rules), plus proper ID copies.

Step 2: Confirm the estate composition and the “net estate” concept

List:

Real properties (with fair market values)
Other assets (if relevant)
Debts and allowable deductions/expenses

Even if you only care about one property, the estate tax filing often requires a fuller picture of the estate.

Step 3: Draft and notarize the settlement document

For multiple heirs, a deed typically states:

Decedent details and date of death
Heirs and relationships
Statement of intestacy (no will)
Statement about debts (none, or settled/provided for)
Description of properties
Partition/adjudication among heirs (percentages or specific allocations)
Undertakings for publication and taxes

If only one heir, use Affidavit of Self-Adjudication.

Step 4: Publish the extrajudicial settlement (as required)

Arrange newspaper publication for three consecutive weeks; keep:

Newspaper issues
Publisher’s affidavit and clippings/proof of publication

Step 5: Pay estate tax and secure BIR clearance (eCAR)

In typical practice, you:

File the Estate Tax Return with the BIR office having jurisdiction
Submit required supporting documents
Pay the estate tax (commonly a flat rate on net estate under current frameworks, plus penalties if late)
Obtain the electronic Certificate Authorizing Registration (eCAR) for each property

The eCAR is the BIR’s go-signal for the Register of Deeds and other offices to process transfers.

Timing: Estate tax laws have changed over time; under modern rules, filing is commonly due within a set period from death (often one year, subject to extensions), and late settlement triggers surcharges, interest, and compromise penalties.

Step 6: Pay local taxes/fees (LGU)

Before the Registry accepts transfer, LGUs often require:

Transfer tax
Updated real property tax payments
Tax clearance / certificate of no delinquency

Step 7: Transfer the title at the Register of Deeds

Submit:

Owner’s duplicate title (if available)
Notarized deed + publication proofs
eCAR
Tax clearances/receipts
RD forms and fees

Outcome:

Old title is canceled
New title issued in the names of the heirs (as co-owners) or in the name of a specific heir if partition awards the property to one (often with other heirs receiving cash or other properties)

Step 8: Update the tax declaration (Assessor’s Office)

After title transfer (or sometimes parallel for untitled land), update:

Tax declaration in heirs’ names
Then update Treasurer’s records for real property tax billing

8) The tax side: what families usually pay (and what they confuse)

A. Estate tax (national)

Estate tax is imposed on the transfer of the decedent’s net estate.

Common features in modern Philippine estate tax systems include:

A tax rate applied to the net estate
Deductions such as standard deductions and certain family home/medical deductions (subject to rules and caps)
Penalties for late filing/payment

Common confusion: Estate tax is not the same as capital gains tax (CGT). CGT is typically for sales; inheritance is taxed under estate tax, not CGT.

B. Documentary Stamp Tax (DST)

DST is generally associated with certain documents and transactions. For inheritance transfers, treatment can depend on the document and current BIR rules/practice.

C. Local transfer tax and local fees

LGUs commonly impose:

Transfer tax (a percentage of consideration or fair market value, depending on LGU ordinance and practice)
Administrative fees and clearances

D. Registration fees (Register of Deeds)

RD fees depend on property value and schedule of fees.

Practical tip: Families often budget only for estate tax and forget:

Publication costs
Notarial fees
Local transfer tax
RD fees
Condo dues clearance fees These can be significant.

9) What if the heirs don’t want co-ownership?

Inheriting property often results in co-ownership (e.g., all children and the spouse are co-owners). Co-ownership can be workable—but it frequently leads to conflict later.

Common ways to resolve co-ownership

Partition in the settlement deed
- Property goes to one heir; others receive another property or a balancing cash payment.
Heirs sell their hereditary rights to one heir
- Documented carefully; still needs tax/regulatory compliance.
Sell the inherited property and split proceeds
- Requires completing estate settlement first (or structured as sale of hereditary rights, but this is sensitive and often scrutinized).

10) Special situations that change the playbook

A. Minor heirs

Minors complicate extrajudicial settlement. Courts are more likely required, or at least stricter safeguards and representation.

B. Missing heirs / unknown heirs

If an heir cannot be located or identified, extrajudicial settlement becomes risky and is often refused by registries/BIR; judicial settlement is commonly needed.

C. Disputed legitimacy or recognition

Illegitimate child claims or paternity disputes can stop settlement. These usually require careful documentation or court resolution.

D. Property still in the name of a grandparent (or someone long deceased)

This is common: the parent “inherited but never transferred.” You may need multiple sequential estate settlements (“cascade settlement”), one estate at a time, to bring the title current.

E. Foreign heirs

Foreign citizens can, under constitutional policy, generally acquire land by hereditary succession (inheritance), even though foreigners are generally barred from owning land by purchase. This area is sensitive—ensure documents clearly show acquisition is by succession.

F. Properties with mortgages or liens

You can inherit encumbered property, but the lien remains. Banks may require estate settlement documents and may have their own transfer/assumption requirements.

G. Untitled land (tax declaration only)

You can settle the estate and update tax declaration, but if you want a Torrens title, you may later need:

Administrative titling (where available) or
Judicial confirmation of imperfect title, or other appropriate proceedings This is fact-specific.

11) Common mistakes that cause delays or invalid transfers

Skipping publication (or incorrect publication) for extrajudicial settlement
Wrong heir list (excluding a compulsory heir, missing a spouse, etc.)
Not accounting for the marital property regime (treating all property as solely owned)
Using the wrong instrument (self-adjudication when there are multiple heirs, or extrajudicial when there is a will)
Incomplete BIR documents (missing TINs, missing certified civil registry documents)
Trying to sell before settling (buyers and banks typically require estate settlement and eCAR first)
Outdated or inconsistent property descriptions (title vs tax declaration vs survey)
Unpaid real property taxes or condo dues blocking clearances
Assuming one “estate” equals one “property” (BIR often evaluates the entire estate)

12) A practical checklist you can follow

If your parent left NO will and everyone agrees:

Confirm heirs (spouse, children, others) and collect PSA documents
Determine property regime (ACP/CPG/separation)
Identify properties and secure title/tax declaration copies
Settle debts/obligations (or plan for them)
Prepare and notarize Deed of Extrajudicial Settlement / Self-Adjudication
Publish for three consecutive weeks; secure proofs
File estate tax return; pay estate tax/penalties if any
Secure eCAR
Pay LGU transfer tax and secure clearances
Transfer title at Register of Deeds
Update tax declaration at Assessor; update billing at Treasurer

If there IS a will, or heirs disagree:

Consult counsel on probate/intestate court settlement
Prepare for judicial timelines, notices, bond, and claims process
After court authority/distribution, proceed to BIR eCAR and RD transfer

13) When you should strongly consider professional help

Even families that agree can get stuck when:

There’s a second marriage, blended family, or disputed heirship
The title has technical issues (lost owner’s duplicate, conflicting annotations)
There are multiple deaths and untransferred titles over decades
There’s untitled land needing a strategy
There are large estates and significant deductions/valuation issues
There are heirs abroad and SPA/authentication issues
Any heir is a minor or incapacitated

Mistakes here can invalidate documents, trigger future lawsuits, or make the property hard to sell.

14) Closing note: what “success” looks like

You’ve effectively “inherited and transferred” the property when:

The title (TCT/OCT/CCT) is in the heirs’ names (or in the name of the final awarded heir after partition), and
The tax declaration is updated, and
Estate tax and local taxes/fees are cleared, with eCAR and RD records consistent.

That’s the point at which banks, buyers, and government offices generally treat the inheritance as fully settled and marketable.

If you want, paste the basic facts (province/city, whether there’s a spouse, number of children, whether the property is titled or tax-declaration-only, and whether there’s a will). I can map the exact best route (extrajudicial vs judicial), the most likely heir shares, and a document checklist tailored to that scenario.