Inherited Land Sale Document Requirements in the Philippines

A comprehensive legal-practice guide (updated to April 2025)

1. Why the rules are special for inherited real property

Inherited land is, by definition, part of a decedent’s estate. Under Philippine law an estate is a juridical person separate from the heirs until the estate is fully settled (Art. 776, 777 & 1106 Civil Code). You cannot legally convey title that still belongs to the estate; you must first show that the heirs have become the registered owners, or that the estate itself (represented by an executor/administrator) is the seller.

2. Two preliminary routes to settle the estate

Route	When allowed	Key instruments	Where filed/obtained
Extrajudicial settlement (EJS) under Rule 74	All heirs are of age or represented; no outstanding debts or debts are paid	- Deed of Extrajudicial Settlement & Partition - Affidavit of Self-Adjudication (sole heir)	Notarized; published once a week for 3 consecutive weeks in a newspaper of general circulation; annotated on the title at the Registry of Deeds
Judicial settlement (Probate/Intestate proceedings)	Minor or incapacitated heirs, disputes, or unsettled debts	- Project of Partition approved by the court - Letters of Administration or Testamentary	Regional Trial Court (RTC) sitting as probate court

Tip: Even if an EJS is possible, heirs sometimes opt for probate to cut off future claims, especially where owners died long ago.

3. Core documentary checklist for the sale itself

Stage	Essential documents	Purpose/agency
A. Prove ownership & heirship	1. Original/Certified True Copy (CTC) of title (OCT/TCT) 2. Latest tax declaration (Assessor) 3. PSA-issued birth/marriage/death certificates linking heirs to owner 4. EJS or Court Order/Project of Partition	Registry of Deeds, BIR
B. Pay & clear the estate tax	5. BIR Form 1801 (Estate Tax Return) 6. Proof of payment (or amnesty acceptance) 7. Electronic Certificate Authorizing Registration – Estate (eCAR-E)	BIR; mandatory before title may be transferred to heirs
C. Draft & notarize the sale	8. Deed of Absolute Sale (DOAS) executed by all registered heirs (or by the judicial administrator with court approval) 9. If an heir is abroad: Apostilled Special Power of Attorney and valid IDs	Notary Public
D. Pay taxes on the sale	10. BIR Form 1706 (Capital Gains Tax, 6 %) and proof of payment (within 30 days of notarization) 11. BIR Form 2000-OT (Documentary Stamp Tax, 1.5 %) and proof of payment	BIR issues eCAR-Sale after both taxes are paid
E. Local transfer & title transfer	12. Transfer Tax Official Receipt (Prov./City Treasurer) 13. Real Property Tax (RPT) clearance (Treasurer) 14. DAR clearance (if agricultural; CARP rules) 15. Association/Barangay clearances if subdivision requires	LGU
F. Registration	16. Original Owner’s Duplicate Certificate 17. Two eCARs (Estate & Sale) 18. DOAS with documentary stamps 19. BIR tax clearances & receipts 20. Transfer Tax receipt 21. Issuance fees & Entry Sheet (RD Form 60-RD)	Register of Deeds cancels the heirs’ TCT and issues new TCT in buyer’s name

Expect 2–6 weeks from filing at the Registry of Deeds to release of the buyer’s new Transfer Certificate of Title, depending on backlogs.

4. Special situations and additional paperwork

Scenario	Extra requirements
Minor heirs	Court-approved guardianship order and Guardianship Bond; court authority to sell (Sec. 2, Rule 96 ROC)
Heir is an estate or trust	Certificate of incorporation/trust plus Secretary’s Certificate or Trustee’s Resolution
Property under mortgage, lien, or adverse claim	Cancellation of Mortgage or Quitclaim, or assumption agreed in the DOAS
Land is tenanted agricultural land	Department of Agrarian Reform Certification on Landowner Retention/Consent
Ancestral land of IPs	NCIP Certification Precondition
Foreign buyer	Certification that land is within condominium project or that buyer’s share in land does not exceed the 40 % constitutional limit; or long-term lease instead of sale
Estate tax paid under Amnesty (RA 11213, extended to June 14 2025)	Acceptance Payment Form and Proof of Amnesty Payment (estops BIR from audits on unpaid estate tax)

5. Fees & taxes at a glance (2025 rates)

Levy	Computation base	Rate	When due
Estate Tax	Net estate after deductions	6 %	Within 1 yr of death (extendible)
Capital Gains Tax	Higher of BIR zonal value or gross selling price	6 %	Within 30 days after notarization
Documentary Stamp Tax	Same base as CGT	₱15 per ₱1,000 (≈1.5 %)	Same deadline as CGT
Transfer Tax	Same base as CGT (LGU may use FMV)	0.5 %–0.75 % (varies by LGU)	Within 60 days (or 30 days in NCR)
Registration Fees (RD)	Schedule under Sec. 7, PD 1529	≈₱8,000–₱15,000 typical for urban lots	Upon lodgment

Penalty note: BIR surcharges (25 % or 50 % for fraud) + interest (12 % p.a.) apply to late CGT/DST; estate tax adds 6 % interest p.a. after the first year.

6. Practical workflow timeline

Gather civil documents (1–4 weeks, PSA).
Draft & notarize EJS / file probate (1–2 weeks EJS; 6 mo.–years for probate).
Pay estate tax & secure eCAR-E (2–6 weeks BIR).
Execute and notarize Deed of Sale.
File CGT & DST returns; get eCAR-Sale (2–5 days via BIR’s ONE-TIME TRANSACTION (ONETT) Center once complete).
Pay LGU transfer tax; secure clearances (1–3 days).
Register with RD; release of new TCT (2–6 weeks).

7. Common pitfalls that stall registration

Missing publication of the EJS – causes annotation refusal.
Signed but undated DOAS – BIR treats as “date of last acknowledgment”.
Underdeclared selling price – BIR will assess on zonal value anyway; may trigger audit flag.
Estate tax still unpaid for prior decedent – RD will not act even if current eCAR is complete.
**Not verifying land classification (alienable & disposable, agricultural CARP-covered, timberland).
Unsigned or un-apostilled SPA from overseas heir – Notaries must see original.

8. Key statutory and administrative references

Civil Code: Arts. 776–1105 (succession); Arts. 1623–1624 (legal redemption).
Rules of Court: Rule 74 (Extrajudicial Settlement); Rules 73–90 (Probate).
Property Registration Decree (PD 1529).
National Internal Revenue Code, as amended by TRAIN Law (RA 10963) – estate & CGT both at 6 %.
RR 12-2018 & RR 8-2023 – ONETT procedures and eCAR issuance.
Estate Tax Amnesty Act (RA 11213), latest extension to June 14 2025.
Local Government Code – Sec. 135 transfer tax.
DAR Adm. Orders 1-89, 7-11 – CARP land sales.

9. Frequently-asked questions

Question	Short answer
Can we sell before paying estate tax?	No. BIR will not issue the eCAR-Sale without first clearing the estate.
Is a buyer safe if the heirs sign but an omitted heir later appears?	No. An omitted compulsory heir (e.g., illegitimate child) can file an action for reconveyance within 4 years from discovery or 10 years from registration.
Is publication of EJS still needed if death was decades ago?	Yes. Rule 74 publication is mandatory regardless of lapse of time.
Can an administrator sell without court approval?	No; Sec. 1, Rule 89 requires leave of court.
Is tax-free exchange available?	Only for corporate reorganizations meeting Sec. 40 (C)(2) NIRC requirements; rarely applicable to estates.

10. Best-practice tips for practitioners and sellers

Start with a certified title search at the RD to spot adverse annotations early.
Secure a tax clearance print-out from the BIR RDO’s “Validation Machine” before notarizing the DOAS.
Use a “Deed of Absolute Sale with Waiver of Rights and Quitclaim” when one heir sells in behalf of others to avoid future intra-heir suits.
Spare minor heirs the delay by appointing the surviving parent as guardian ad litem and posting the bond simultaneously with the guardianship petition.
Set aside at least 8 % of the gross price for taxes and fees when quoting to buyers.
Keep digital copies (PDF & JPEG) of every page; BIR now accepts online docketing for eCAR re-issuance.
Factor in barangay clearance quirks – some LGUs require the seller’s residence clearance, others the property’s barangay.

Conclusion

Selling inherited land in the Philippines is essentially a two-step conveyance: (1) settle and transfer the land from the decedent to the heirs, then (2) convey it from the heirs to the buyer. Each step is document-intensive; missing even one certificate or tax receipt will cause the Register of Deeds or BIR to deny processing. By following the document matrix above—and engaging a competent lawyer or licensed real-estate broker when appropriate—you can anticipate and clear the most common bottlenecks, protect all parties from future claims, and bring the transaction to a legally unassailable close.

(This article is for general information only and is not a substitute for individualized legal advice. Laws and revenue regulations change; always verify the latest issuances of the BIR, LRA, and Supreme Court.)