Transferring real property from a deceased owner to the heirs in the Philippines involves two parallel tracks: (1) settling the estate and paying estate taxes with the BIR, and (2) registering the transfer with the Register of Deeds and updating the Tax Declaration with the LGU Assessor. This article walks through both paths in detail, flags common pitfalls, and answers frequently asked questions. It is written for freehold land, houses and lots, and condominium units; closely related rules apply to other assets (bank accounts, shares of stock, vehicles).

The Big Picture

Goal: Have the land title (TCT/CCT) and Tax Declaration officially transferred from the deceased to the lawful heirs (or buyers, if the heirs sell).

Core sequence:

Settle the estate (extrajudicially or through court/probate).
File the estate tax return (BIR Form 1801) and secure eCAR(s) (electronic Certificate Authorizing Registration) from the BIR.
Pay local transfer taxes and present the eCAR to the Register of Deeds (RD) to issue a new title.
Update the Tax Declaration with the City/Municipal Assessor.

Step 1: Determine the Mode of Settlement

A. Extrajudicial Settlement (EJS)

Most straightforward when:

There is no will (intestate) or there is a will but probate is not pursued;
All heirs are of legal age and agree on how to divide the estate; and
The estate has no outstanding debts, or creditors are properly settled/notified.

Key requirements:

Deed of Extrajudicial Settlement (with Deed of Partition if dividing the property, or with Deed of Sale if the heirs will immediately sell to a third party).
Publication: The EJS must be published once a week for three consecutive weeks in a newspaper of general circulation.
Notarization of the EJS and related deeds.

If there are minor or incapacitated heirs, you generally need court approval (guardianship/approval of sale). EJS without proper court approval where required is risky and often rejected at registration.

B. Judicial Settlement / Probate

Required where:

There is a will that must be probated;
There is dispute among heirs, or
There are issues of debt, capacity, or title that require court resolution.

The court decree will specify heirship and distribution; you then proceed to the BIR and RD using the court order.

Step 2: Prepare the Estate Tax Filing (BIR)

When and where to file

Estate Tax Return (BIR Form 1801) is due within one (1) year from the decedent’s death (extensions may be available on meritorious grounds).
File with the BIR RDO having jurisdiction over the decedent’s domicile at the time of death. (The BIR issues eCARs per property, so coordination with the RDO(s) where properties are located is often needed.)

Estate tax rate and major deductions (TRAIN era)

Estate tax rate: 6% on the net estate.
Common deductions/allowances include:
- Standard deduction: ₱5,000,000 (no substantiation beyond death certificate/return).
- Family home deduction: Up to ₱10,000,000 (subject to proof that the property qualified as the decedent’s family home).
- Claims against the estate (valid, properly supported debts as of death).
- Losses (e.g., casualty), if within allowed periods and properly substantiated.
- Vanishing deduction (for properties recently acquired by prior transfer subject to donor’s/estate tax).
- Net share of the surviving spouse (only the decedent’s share of conjugal/community property is taxable).
CPA certification is typically required if the gross estate exceeds ₱5,000,000 or when claims against insolvent persons are involved.

Tip: Even if no estate tax is due (e.g., because deductions zero out the net estate), you still need the eCAR to register title transfers.

BIR documentary checklist (typical)

BIR Form 1801 (Estate Tax Return), with schedules.
PSA Death Certificate.
TINs of the Estate and all heirs (obtain a TIN for the “Estate of [Name]”).
EJS/Deed of Partition (or Court order if judicial), with publication proof.
Birth/Marriage Certificates proving relationships and civil status (for legitimation of claims and deductions).
Certified true copies of existing titles (TCT/CCT), Tax Declarations, and lot/condo plans if applicable.
Zonal valuation printouts and Assessor certifications (fair market value) for valuation.
Affidavit of No Improvements or Certificate of No Improvements (for raw land), or Building Tax Declaration (for improved land).
Real Property Tax (RPT) receipts and Tax Clearance (to the latest year assessable).
For special deductions: supporting loan documents, mortgage statements, insurance, loss proofs, etc.
Official Receipts for estate tax and applicable Documentary Stamp Tax (DST) if due on certain instruments.

Pay estate tax and secure the eCAR(s)

BIR evaluates, assesses, and upon payment/clearance, issues eCAR(s) for each property.
The eCAR is the BIR’s proof that estate tax on that property’s transfer has been settled—you cannot register title transfer without it.

Bank accounts: Banks may allow withdrawals of the decedent’s deposits subject to final withholding or upon presentation of BIR clearance, depending on rules in force at the time; coordinate with the depository bank’s estate department.

Step 3: Transfer of Title with the Register of Deeds (LRA)

With eCAR in hand, proceed to the Register of Deeds where the property is located.

Typical RD requirements:

Owner’s duplicate title (TCT/CCT).
eCAR (original/required copies).
EJS/Partition (or Court Order); if there was an immediate Deed of Sale by heirs, include it.
IDs/TINs of parties, SPA if using representatives.
Real Property Tax Clearance from the City/Municipal Treasurer.
Proof of payment of local transfer taxes (see Step 4).
Others as required by the specific RD (e.g., clearance from HOA/condo corp for condos, mortgage cancellation instrument if any).

What the RD does:

Cancels the old TCT/CCT in the name of the decedent.
Issues new TCT/CCT in the name(s) of the heir(s) (per partition) or buyer (if the heirs sold).

If the heirs sold immediately: The common path is EJS → BIR eCAR (succession) → RD issuance of titles to heirs (briefly) → Deed of Sale → BIR eCAR (sale) → RD issuance of buyer’s title. Some RDs may accept a direct succession-to-buyer route with proper BIR eCARs for both succession and sale; practice varies, so expect to follow the two-step chain unless the RD/BIR allows otherwise.

Step 4: Update the Tax Declaration (City/Municipal Assessor)

After the RD issues the new title:

Submit to the Assessor:

New title (certified copy or as required),
eCAR,
EJS/Partition/Court Order (and Deed of Sale if any),
Previous Tax Declaration details,
Sketch/lot plan or condo unit plan, if required,
RPT clearance.

The Assessor cancels the old Tax Declaration and issues a new Tax Declaration in the name(s) of the heir(s) or buyer. The Treasurer’s Office updates its records for billing real property taxes going forward.

Local Transfer Taxes and Other Charges

Local Transfer Tax (LGU): Usually imposed on transfers by succession and by sale/donation, computed on assessed or market value per local ordinance (rates vary by LGU, often around 0.5% for cities/first-class municipalities; check your LGU). Pay at the City/Municipal Treasurer and secure the Tax Clearance needed by the RD.
Registration fees at the RD: As per LRA fee schedule (based on value and number of pages/instruments).
Documentary Stamp Tax (DST):
- Succession itself is not subject to CGT (capital gains tax), but the document(s) (e.g., partition deed) may attract DST in limited cases; the sale of real property by the heirs to a third party is generally subject to 6% CGT (or ordinary income for dealers) plus DST on the deed of sale.

Special Situations and Practical Notes

Conjugal/Community Property

Only the decedent’s net share is part of the gross estate. The surviving spouse’s share is excluded (deducted) to arrive at the taxable net estate.

Property Held Only by Tax Declaration (Untitled Land)

A Tax Declaration is not proof of ownership. Title transfer machinery (eCAR → RD) presupposes an existing title. If the property is untitled, you may need:

Judicial titling (original registration), reconstitution, or confirmatory deeds establishing chain of ownership, before you can get a TCT/CCT. You can still update the Tax Declaration at the Assessor for billing purposes, but that does not confer indefeasible title.

Heirs Residing Abroad / Using Representatives

Use a Special Power of Attorney (SPA). If executed abroad, consularize or apostille the SPA, then present the authenticated SPA in the Philippines.

Minor Heirs or Incapacitated Persons

You’ll generally need a court-appointed guardian and court approval for partition or sale of the minor’s share.

Multiple Properties in Different RDOs/LGUs

Expect multiple eCARs (per property) and separate RD filings. Sequence your tasks carefully to avoid repeated trips and expiring clearances.

Bank Accounts & “Estate TIN”

Open an Estate bank account (using the Estate TIN) if you need to receive proceeds (e.g., sale of property, rental income during settlement) or pay estate liabilities.

Deadlines, Extensions, Penalties

File the estate tax return within 1 year from death (extensions for filing and for payment may be granted at BIR’s discretion—commonly up to 2 years for extrajudicial settlements and up to 5 years for judicial settlements—subject to conditions such as bonds and interest rules in force).
Late filing/payment may attract surcharges and interest under the Tax Code. Apply for extensions before the original due date whenever possible.

Estate Tax Amnesty (historical note)

The Philippines has periodically offered estate tax amnesties with fixed rates and penalty relief. Availability and deadlines change; verify current programs before you rely on them.

End-to-End Checklist (Practical)

Gather proofs of status/relationships: PSA Death Certificate, Marriage/Birth Certificates, valid IDs, TINs.
Inventory the estate: Titles (TCT/CCT), Tax Declarations, RPT statements, bank accounts, shares, vehicles, debts.
Choose settlement mode: EJS (if eligible) or court (probate/judicial).
Draft and notarize EJS/Partition (and publish for 3 consecutive weeks). Obtain court orders where required.
Secure valuation documents: Zonal values, Assessor certifications, last RPT paid, certificates of (no) improvements.
File BIR Form 1801 with attachments; respond to BIR queries; pay estate tax (if any).
Receive BIR eCAR(s).
Pay Local Transfer Tax and obtain RPT Clearance from the LGU Treasurer.
Register with RD: Present eCAR, EJS/Court order, title, clearances → obtain new TCT/CCT.
Update Tax Declaration at the Assessor → obtain new TD.
If selling: Compute and pay CGT, DST, and fees for the sale; register buyer’s title; update buyer’s TD.

Frequently Asked Questions

1) Can we sell the property before estate taxes are paid? You can sign a Deed of Sale, but title cannot be transferred to the buyer until the succession is first cleared and eCAR(s) issued. Many buyers require heirs to complete estate settlement first.

2) What if one heir refuses to sign? Use judicial settlement. The court can determine shares and authorize partition or sale. Proceeding with EJS without all heirs is unsafe and usually non-registrable.

3) The property has unpaid Real Property Tax. What happens? Pay the RPT plus penalties to obtain Tax Clearance. Some LGUs offer condonation programs; check locally.

4) Are publication and notarization really necessary for EJS? Yes. Notarization makes it a public instrument; publication protects creditors/heirs and is a statutory requirement for registrability and for BIR processing.

5) Do we need a lawyer or CPA? Not legally mandatory for simple estates, but strongly advisable, especially where: values are high, deductions are complex, there are minors/overseas heirs, or there are title defects.

6) How long does it take? Timelines vary widely by completeness of documents, BIR/RD workload, and LGU practices. The single biggest accelerator is submitting a complete, properly supported estate tax package.

Document Models (for orientation)

Deed of Extrajudicial Settlement with Partition (identify heirs, describe property, specify shares, include publication clause).
Affidavit of Publication + newspaper clippings (3 weeks).
Affidavit of No Improvement (for raw land) or Building TD (for improved land).
SPA (apostilled/consularized if executed abroad).
Guardianship/Court Order (if minors/incompetents).

(Use vetted templates and adapt to your facts; avoid generic language that doesn’t fit your situation.)

Common Mistakes to Avoid

Skipping estate tax filing because “no tax is due.” You still need the eCAR.
Wrong valuations (e.g., ignoring higher zonal value or Assessor FMV) causing reassessment and delays.
EJS without publication or with minor heirs but no court approval.
RPT arrears discovered only at the end—pay them early and get Tax Clearance.
Using Tax Declaration updates as a substitute for titling. Tax Declarations track assessment/billing, not ownership.

Bottom Line

To validly transfer a deceased owner’s real property in the Philippines, treat BIR clearance (eCAR) and RD registration as inseparable steps, with the LGU Tax Declaration update as the final local record change. Begin with a clean settlement instrument (EJS or court order), prepare a complete estate tax file, and follow through with local taxes and registration. Doing the steps in order—with proper documents—saves months of back-and-forth and prevents costly do-overs.