How to Prepare a Deed of Donation for a Portion of Land in the Philippines
(Comprehensive Legal Guide – updated to July 2025)
1. Legal Framework
| Source of Law | Key Provisions |
|---|---|
| Civil Code of the Philippines (Arts. 725 – 746) | Nature, form, capacity, revocation, acceptance of donations |
| Property Registration Decree (PD 1529) | Registration requirements for real property instruments |
| National Internal Revenue Code (NIRC), as amended | Donor’s tax (Secs. 98 – 104), documentary‑stamp tax |
| BIR Revenue Regulations & Rulings (RR 12‑2018, RR 13‑2021, RMC 24‑2023, etc.) | Updated tax rates, zonal valuation rules, electronic CAR issuance |
| Local Government Code (Secs. 135, 196) | Local transfer tax |
| DAR Administrative Orders (AO 7‑2011, AO 3‑2023) | Donations of agricultural land & retention limits |
| DENR/CENRO & LRA circulars | Subdivision surveys, approved plans, technical descriptions |
Always check for the latest issuances or implementing rules that may affect filing procedures or tax rates.
2. Parties & Capacity
| Role | Who qualifies? | Special notes |
|---|---|---|
| Donor | Natural or juridical person who owns the land; must have free disposal of the property and capacity to contract. | If married, spouse’s marital consent (Art. 96/124, Family Code) is indispensable. |
| Donee | Any person or entity not disqualified (e.g., unborn child via representative; public official forbidden from receiving gifts under R.A. 6713). | For charitable institutions or government agencies, additional acceptance formalities (Board Resolution, authority) apply. |
| Witnesses | At least two credible witnesses needed for notarization. | |
| Notary Public | Within the province/city where the deed is executed. |
3. Preliminary Due Diligence
Verify title
- Obtain a certified true copy (CTC) of the Transfer Certificate of Title (TCT) from the Registry of Deeds (RD).
- Check for liens, encumbrances, annotations (mortgage, notice of lis pendens, adverse claim, CARP notice).
Confirm property boundaries
- For portion‑only donations, commission a licensed geodetic engineer to prepare a Subdivision Plan (Lot …‑A) and technical description.
- Secure DENR/LMB approval (Blue/Red print) and LRA geodetic verification.
Clearances for special lands
- Agricultural: Obtain a DAR Land Transfer Clearance (to prove the donor still has 5‑hectare retention or qualified exemptions).
- Indigenous / ancestral domain: Follow NCIP free and prior informed consent rules.
- Condominium project: Comply with master deed and HLURB approvals.
Tax valuation
- Secure BIR zonal valuation and LGU fair market value schedules to estimate donor’s tax and local transfer tax.
4. Essential Clauses & Form Requirements
Donation of immovable property is void unless in a public instrument specifying the property and embodying the acceptance (Art. 749, Civil Code).
Include all of the following in the Deed of Donation (public instrument, notarized):
| Clause | Content |
|---|---|
| Title & introductory paragraph | “Deed of Donation Over a Portion of Land” – full civil names, marital status, citizenship, address, TIN. |
| Recitals (Whereas) | Ownership of donor; intention to donate out of liberality; absence of vices of consent. |
| Description of the Portion | Lot & block number, area (sq m), technical description from approved subdivision, boundaries, existing improvements. |
| Consideration | “Pure liberality with no monetary consideration.” |
| Delivery & Transfer of ownership | Express statement that ownership is transferred upon acceptance & notarization (constructive delivery). |
| Acceptance by Donee | Must be explicit. Either: (a) in the same deed (best practice); or (b) in a separate “Deed of Acceptance” duly notarized and annotated on the original deed. |
| Marital consent & conformity | Spousal signature of donor (if married) + spousal conformity of donee (if conjugal). |
| Tax declarations & liabilities | Donor assumes or expressly not; typically silent, as taxes are donor’s obligation by statute. |
| Warranties | Warranty against eviction & hidden encumbrances, unless expressly waived. |
| Revocation grounds | Optional: ingratitude clauses, non‑fulfilment of attached condition (if modal donation). |
| Signatures & witnesses | Hand‑written signatures above printed names; TIN indicated; two witnesses. |
| Notarial Acknowledgment | Complete jurat/acknowledgment with doc no., page no., book no., series. |
5. Supporting Documents to Attach
- CTC of TCT / OCT (latest issue within 30 days).
- Subdivision Plan & Technical Description (LMB/LRA-approved).
- Tax Declaration & Real Property Tax clearance (current year).
- Certificate of No Improvement (if vacant).
- DAR Clearance (if agricultural) / NCIP Certification (if ancestral domain).
- Birth/Marriage Certificates (PSA) for relationship proof & marital status.
- Government‑issued IDs of parties and witnesses.
- BIR Form 1800 (Donor’s Tax Return) & proof of payment.
- BIR eCAR (Electronic Certificate Authorizing Registration).
- Doc Stamps receipt (if paid separately).
6. Tax & Fee Computation (2025 rates)
| Tax/Fee | Rate | When & Who Pays | Basis |
|---|---|---|---|
| Donor’s Tax | 6 % | Within 30 days from notarization ‑ paid by donor | Greater of zonal value, FMV, or consideration (consideration is zero) × donated portion’s proportionate area |
| Documentary‑Stamp Tax (DST) | ₱ 15.00 per ₱ 1,000 of value OR min ₱ 100. | Pay simultaneously with donor’s tax | Same tax base as donor’s tax |
| Local Transfer Tax | 0.5 % – 0.75 % (province/city dependent) | Upon presentation of eCAR at Treasurer’s Office | Same tax base |
| Registration Fees (RD) | ~₱ 8,000 – ₱ 12,000 (schedule) | During registration | Number of pages + value bracket |
| Annotation & Issuance of new TCT | ₱ 910 + ₱ 20 per annotation | At RD | Per LRA circular |
| Subdivision plan approval fees (DENR) | ≈ ₱ 10,000+ (depends on area) | Prior to execution | Per hectare schedule |
Donations to qualified charitable, religious or educational institutions may be exempt from donor’s tax if they meet the strict percentage‑use requirements (Sec. 101(A), NIRC).
7. Step‑by‑Step Procedure
Commission survey & obtain approved Subdivision Plan (≈ 3–8 weeks).
Draft Deed of Donation with complete clauses and attach plan as Annex “A.”
Notarize the deed (all parties must appear before the notary with IDs).
File BIR Form 1800 → pay donor’s tax & DST → secure eCAR (5–15 working days).
Pay local transfer tax at City/Municipal Treasurer (present eCAR & notarized deed).
Register with Registry of Deeds:
- Submit notarized deed, eCAR, tax receipts, CTC of TCT, approved Subdivision Plan, and IDs.
- RD annotates original title, cancels it, and issues new TCT in the donee’s name or in the donor’s name with a memorandum if only a portion is transferred (follow‑up for owner’s duplicate).
Secure new Tax Declaration at the Assessor’s Office (submit new TCT & Sworn Statement of Value).
Inform Barangay & City Assessor for records update (RPT billing).
(If agricultural): update DAR certificate records and RSBSA registry.
8. Common Pitfalls & How to Avoid Them
| Pitfall | Consequence | Tip |
|---|---|---|
| Using private document instead of notarized public instrument | Donation void (Art. 749) | Always notarize; personal notarization is mandatory. |
| No donee acceptance (or belated acceptance beyond donor’s lifetime) | Donation ineffective | Accept in the same deed or separate deed on the same date. |
| Failure to pay donor’s tax within 30 days | 25 % surcharge + 20 % annual interest + compromise penalty | File Form 1800 promptly, even if exempt (file “zero” return). |
| Donating an undivided portion without approved subdivision | RD will not register; annotation only | Complete survey first; secure LMB approval. |
| Donating land with subsisting mortgage/adverse claim | Donee receives encumbered title; donation can be rescinded for hidden encumbrances | Secure quitclaim/release; annotate releases before donation. |
| Overlooking marital consent | Spouse may void conveyance under Art. 96/124 Family Code | Both spouses sign the deed. |
| Forgetting DAR retention limits | DAR disapproval; possible criminal liability under RA 6657 | Secure DAR clearance if land is >5 ha or CARP‑covered. |
9. Special Scenarios
Conditional or Modal Donation Conditions (e.g., “for the construction of a chapel”) must be complied with, otherwise donor may revoke under Art. 764.
Donation to a Minor Accepted by legal guardian; court approval advisable when property is substantial.
Corporate Donor or Donee Board Resolution authorizing the donation/acceptance; Secretary’s Certificate; SEC GIS to prove authority.
Donation Through Attorney‑in‑Fact Special Power of Attorney (SPA) must specifically authorize donation; notarized & apostilled if executed abroad.
10. Sample Outline (for drafting reference)
DEED OF DONATION
I. Introductory Clause
II. Recitals
III. Donation Clause
IV. Description of Property (Annex “A”)
V. Delivery & Transfer Statement
VI. Acceptance Clause
VII. Marital Consent
VIII.Warranty Clause
IX. Revocation/Condition Clause (if any)
X. Signatures/Witnesses
XI. Notarial Acknowledgment11. Quick Checklist
- Subdivision Plan approved
- CTC of TCT verified up‑to‑date
- Deed drafted with full technical description & acceptance
- Complete IDs & marital consent signatures
- Notarized in proper jurisdiction
- Donor’s tax & DST paid within 30 days → eCAR obtained
- Local transfer tax paid
- Registered with RD → new TCT released
- Tax Declaration & DAR/NCIP records updated
12. Frequently Asked Questions
| Question | Short Answer |
|---|---|
| Can the donor reserve usufruct? | Yes. Donor may reserve usufruct or lifetime occupancy; include it as a condition and annotate on TCT. |
| Is donor’s tax still due if parents donate to children? | Yes, but 6 % flat rate applies. Family home up to ₱ 10 million can be exempt if all requisites under Sec. 4(C), RR 12‑2018 are met. |
| Can a deed be revoked for “ingratitude”? | Only on grounds in Art. 765 (e.g., donee committing offense vs. donor). Must file action within 1 year from knowledge. |
| What if the donor dies before the donee accepts? | Donation ineffective; property forms part of donor’s estate. |
| Can multiple donees accept different portions? | Yes; indicate specific metes & bounds for each donee and obtain individual acceptances. |
13. Final Notes & Disclaimer
Preparing a Deed of Donation for a land portion in the Philippines is document‑intensive and requires strict compliance with form, tax, and registration rules. Missing a single requirement (e.g., technical description, acceptance, timely tax payment) can render the donation void or expose the parties to surcharges and registration refusals.
This guide is for general information only and does not constitute legal advice. Land transactions can involve nuanced issues (e.g., ancestral domain, restrictive covenants, adverse possession). Always consult a Philippine lawyer or licensed notary versed in property law to tailor the deed to your specific facts and ensure up‑to‑date regulatory compliance.