Introduction

In the Philippines, families often ask whether a Deed of Sale is required when a child receives property from deceased parents. The short answer is: No, a Deed of Sale is generally not required for inherited property, because inheritance is not a sale. Property passes to heirs by operation of law upon the death of the owner, not because the heirs bought it.

However, while a Deed of Sale is not the usual document for inheritance, several other documents are commonly required to settle the estate, transfer title, pay taxes, and register the property in the heirs’ names. A Deed of Sale becomes relevant only if the heirs later sell the inherited property to another person, or if one heir sells their share to a co-heir or third party.

This article explains the Philippine legal framework on inherited property, when a Deed of Sale is not required, when it may be required, what documents are needed instead, and how inherited property is transferred to the heirs.

1. Inheritance Is Not a Sale

A sale is a contract where one party transfers ownership of property to another in exchange for a price. In a sale, the usual document is a Deed of Absolute Sale.

Inheritance is different. When a parent dies, their property is transmitted to their heirs by law. The heirs do not buy the property from the deceased parent. They receive it because of succession.

Under Philippine succession law, the rights of heirs to the estate arise from the moment of death of the decedent. This means that once the parent dies, ownership rights over the estate pass to the heirs, subject to settlement of the estate, payment of obligations, estate taxes, and proper registration.

Because there is no purchase price and no buyer-seller relationship between the deceased parent and the heirs, a Deed of Sale is not the correct instrument to transfer inherited property from the deceased parent to the children.

2. What Document Is Used Instead of a Deed of Sale?

For inherited property, the document depends on the situation.

The most common documents are:

Extrajudicial Settlement of Estate
Deed of Extrajudicial Settlement with Waiver of Rights
Deed of Extrajudicial Settlement with Sale
Judicial Settlement of Estate
Affidavit of Self-Adjudication
Project of Partition
Court Order or Decision
Certificate Authorizing Registration
New tax declarations and transfer certificates of title

The correct document depends on whether there is a will, whether the heirs agree, whether there are debts, whether there is only one heir, and whether the property will merely be transferred to heirs or sold to someone else.

3. When a Deed of Sale Is Not Required

A Deed of Sale is not required when the property is simply being transferred from deceased parents to their heirs through inheritance.

For example:

A father and mother owned a parcel of land. Both parents died. Their children are the legal heirs. The children want the title transferred from their parents’ names to the children’s names.

In that situation, the children do not execute a Deed of Sale from the parents to the children. Instead, they usually execute an Extrajudicial Settlement of Estate, assuming the legal requirements are present.

The transfer is based on succession, not sale.

4. When a Deed of Sale May Be Required

A Deed of Sale may be required in inheritance-related situations when there is an actual sale after inheritance has occurred.

Common examples include the following.

A. Sale by the Heirs to a Third Person

If the heirs inherit land from their parents and later sell it to a buyer, a Deed of Sale is required between the heirs and the buyer.

In this case, the sellers are not the deceased parents. The sellers are the heirs who inherited the property.

Depending on the status of the title, the parties may execute:

Deed of Extrajudicial Settlement with Sale, if the estate has not yet been settled and the heirs are simultaneously settling the estate and selling the property; or
Deed of Absolute Sale, if the title has already been transferred to the heirs and they are now selling it.

B. Sale of One Heir’s Share to Another Heir

If one sibling wants to buy the inherited share of another sibling, a Deed of Sale may be needed.

For example:

Four children inherited land from their parents. One child wants to give up their share in exchange for money from the others. That is effectively a transfer for consideration. A Deed of Sale of Hereditary Rights, Deed of Assignment of Rights, or similar instrument may be used, depending on the facts.

C. Sale of Hereditary Rights Before Partition

An heir may transfer or sell their hereditary rights, but what the heir transfers is generally their share in the estate, not a specific physical portion of the property unless there has already been partition.

Before partition, an heir usually owns an ideal or undivided share. This means the heir may not yet be able to point to a specific portion and say, “This exact area is mine,” unless the property has been partitioned among the heirs.

D. Extrajudicial Settlement with Sale

This is common in practice.

The heirs execute one document that does two things:

Settles the estate of the deceased parent or parents; and
Sells the inherited property to a buyer.

This document is often called a Deed of Extrajudicial Settlement of Estate with Sale.

It is used when the property is still titled in the name of the deceased parent, but the heirs have agreed to sell the property to a third party.

5. Extrajudicial Settlement of Estate

An Extrajudicial Settlement of Estate is the usual document used when heirs settle inherited property without going to court.

This may be used when:

The deceased left no will;
There are no outstanding debts, or the debts have been settled;
The heirs are all of legal age, or minors are properly represented;
The heirs agree on how to divide the estate; and
The settlement is made in a public instrument or affidavit and properly published.

The document identifies the deceased, the heirs, the properties left behind, and the agreed distribution of the estate.

For real property, the extrajudicial settlement is usually notarized, published, submitted to the Bureau of Internal Revenue for estate tax processing, and then presented to the Registry of Deeds for title transfer.

6. Affidavit of Self-Adjudication

If there is only one heir, the proper document may be an Affidavit of Self-Adjudication.

For example:

An only child is the sole heir of both deceased parents. There are no other compulsory heirs, no will, and no debts. The only child may execute an Affidavit of Self-Adjudication to adjudicate the estate to themselves.

This is not a Deed of Sale. It is a declaration that the sole heir is adjudicating the inherited property in their own favor by reason of succession.

7. Judicial Settlement of Estate

A court proceeding may be required if the estate cannot be settled extrajudicially.

Judicial settlement is commonly needed when:

There is a will that must be probated;
The heirs do not agree;
There are disputes about who the heirs are;
There are unresolved debts or claims against the estate;
There are minors or incapacitated heirs and court approval is needed for certain acts;
There are conflicting sales, titles, or claims;
The estate is complicated; or
Someone is contesting the inheritance.

In judicial settlement, the court determines the heirs, the estate properties, obligations, and distribution. The court order or approved project of partition becomes the basis for transferring title.

Again, this is not a Deed of Sale unless the court authorizes or confirms a sale.

8. Deed of Extrajudicial Settlement with Waiver of Rights

Sometimes, one or more heirs give up their inheritance in favor of another heir.

This may be done through a Deed of Extrajudicial Settlement with Waiver of Rights.

However, care is needed. A waiver may have tax consequences. Depending on how it is structured, it may be treated as a donation, sale, or other taxable transfer. If an heir receives money or other consideration in exchange for giving up their share, the transaction may be considered a sale or assignment rather than a pure waiver.

A waiver made before the estate is partitioned may also differ legally from a waiver made after the heir has already received a specific share.

9. Deed of Sale Versus Waiver of Inheritance

A Deed of Sale involves payment of a price. A waiver generally means the heir gives up a right, either gratuitously or under agreed terms.

The distinction matters because taxes, documentary requirements, and legal effects may differ.

Situation	Common Document
Heirs inherit property from parents	Extrajudicial Settlement of Estate
Sole heir inherits property	Affidavit of Self-Adjudication
Heirs settle estate and sell to buyer	Extrajudicial Settlement with Sale
One heir gives up share for free	Settlement with Waiver of Rights, subject to tax review
One heir transfers share for payment	Deed of Sale, Assignment of Rights, or Settlement with Sale
There is a dispute among heirs	Judicial Settlement
Property already transferred to heirs, then sold	Deed of Absolute Sale

10. Estate Tax Must Be Settled

Even if no Deed of Sale is required, estate tax must generally be addressed.

When a parent dies leaving property, the estate may be subject to estate tax. Before the Registry of Deeds transfers the title, the Bureau of Internal Revenue usually requires estate tax filing and payment, unless an exemption or special rule applies.

The BIR issues a Certificate Authorizing Registration, commonly called a CAR, after taxes and documentary requirements are complied with.

The CAR is then presented to the Registry of Deeds so the title can be transferred.

Without the CAR, the Registry of Deeds generally will not transfer the title from the deceased parent’s name to the heirs.

11. Estate Tax Amnesty

The Philippines has had estate tax amnesty laws that allowed qualified heirs to settle unpaid estate taxes under more favorable terms for deaths occurring on or before certain dates. The availability, deadline, and coverage of estate tax amnesty depend on the law currently in effect and should be verified at the time of filing.

Estate tax amnesty is important because many inherited properties remain titled in the names of deceased parents or grandparents for decades due to unpaid estate taxes. Amnesty can sometimes make it easier and less costly to clean up titles.

12. Capital Gains Tax and Documentary Stamp Tax

A pure inheritance transfer is not treated the same as a sale.

However, when inherited property is sold, taxes may arise, including:

Capital Gains Tax, if the property is a capital asset;
Creditable withholding tax, in certain cases involving ordinary assets;
Documentary Stamp Tax;
Transfer tax payable to the local government;
Registration fees with the Registry of Deeds; and
Other local fees and certification costs.

If the heirs only transfer property from the deceased parents to themselves through estate settlement, estate tax is the main national tax issue. If they later sell the property, sale-related taxes arise.

13. Transfer of Title From Deceased Parents to Heirs

The usual process for transferring inherited titled land is as follows:

Step 1: Determine the Heirs

Identify the compulsory and legal heirs. These may include the surviving spouse, legitimate children, illegitimate children, parents, or other relatives depending on who survived the deceased.

If both parents are dead, the estates of both parents may need to be settled. If one parent died first and the other later died, there may be two estate settlements or a combined settlement, depending on the circumstances.

Step 2: Gather Documents

Common documents include:

Death certificate of the deceased parent or parents;
Marriage certificate;
Birth certificates of heirs;
Original or certified true copy of the title;
Tax declaration;
Real property tax clearance;
Valid IDs of heirs;
Tax identification numbers;
Certificate of no improvement, if applicable;
Special Power of Attorney, if someone signs for an heir;
Deed of Extrajudicial Settlement or Affidavit of Self-Adjudication;
Publication documents;
BIR forms and tax returns;
Proof of payment of estate tax;
Certificate Authorizing Registration.

Step 3: Execute the Settlement Document

The heirs execute the proper document, usually an Extrajudicial Settlement of Estate. The document must be notarized.

Step 4: Publication

For extrajudicial settlement, publication is generally required once a week for three consecutive weeks in a newspaper of general circulation.

This requirement protects creditors and interested parties.

Step 5: File With the BIR

The estate tax return and supporting documents are filed with the BIR. The BIR evaluates the estate, computes taxes, and issues the CAR after compliance.

Step 6: Pay Local Transfer Tax

The heirs pay the applicable local transfer tax with the city or municipal treasurer.

Step 7: Register With the Registry of Deeds

The settlement document, CAR, tax clearances, and other documents are submitted to the Registry of Deeds. The old title in the deceased parent’s name is cancelled, and a new title is issued in the name of the heirs or buyer, depending on the transaction.

Step 8: Update the Tax Declaration

After title transfer, the tax declaration with the city or municipal assessor is updated.

14. What If the Title Is Still in the Name of Deceased Parents?

This is very common.

If the title is still in the name of deceased parents, the heirs cannot simply execute a Deed of Sale as though the parents were alive. A deceased person cannot sign a Deed of Sale.

Instead, the heirs must first establish their authority as heirs through estate settlement.

If they want to keep the property, they settle the estate and transfer title to themselves.

If they want to sell the property, they may execute an Extrajudicial Settlement with Sale, where the heirs settle the estate and sell the property to the buyer in the same document.

15. Can One Heir Sell the Entire Inherited Property?

Generally, no.

One heir cannot validly sell the entire inherited property without the consent or authority of the other co-heirs. An heir can usually sell only their undivided share, not the shares of the others.

For example:

If five siblings inherited land, one sibling cannot sell the whole land to a buyer unless the other siblings also sign, or unless that sibling has a valid Special Power of Attorney from them.

A buyer who purchases from only one heir may acquire only that heir’s rights, not the entire property.

16. Can an Heir Sell Their Share Before the Title Is Transferred?

Yes, an heir may generally transfer their hereditary rights or undivided share, subject to legal requirements and limitations.

However, before partition, the heir usually owns an abstract or ideal share in the estate, not a specific physical portion.

For example:

If four siblings inherit a 1,000-square-meter lot, each may have a one-fourth undivided interest. One sibling cannot automatically sell a specific 250-square-meter corner unless the property has been partitioned and that portion has been assigned to them.

The document may be a Deed of Sale of Hereditary Rights, Deed of Assignment of Rights, or a similar instrument.

17. What If Some Heirs Are Abroad?

Heirs abroad may still participate in the settlement.

They may sign the settlement document before a Philippine consular officer, or execute a Special Power of Attorney authorizing someone in the Philippines to sign on their behalf. Depending on the country and document, consular acknowledgment or apostille may be required.

The Registry of Deeds and BIR may require properly authenticated documents before accepting signatures made abroad.

18. What If One Heir Refuses to Sign?

If one heir refuses to sign an extrajudicial settlement, the estate generally cannot be settled extrajudicially by agreement of all heirs.

The available remedies may include:

Negotiation;
Mediation;
Partition agreement;
Judicial settlement of estate;
Court action for partition;
Sale of undivided share, if appropriate; or
Other remedies depending on the facts.

A Deed of Sale cannot cure the absence of consent from a co-heir who owns a share in the inherited property.

19. What If There Are Minor Heirs?

If some heirs are minors, extra caution is required.

A parent or guardian may represent a minor in certain acts, but transactions involving disposition of a minor’s property rights may require court approval, especially if the minor’s share is being sold, waived, compromised, or otherwise affected.

A buyer dealing with inherited property involving minor heirs should be careful because lack of proper authority or court approval may create title problems later.

20. What If the Parents Left a Will?

If the deceased parent left a will, the estate usually goes through probate. A will does not automatically transfer title by itself. The court generally must determine the validity of the will.

After probate and estate settlement, the court-approved distribution becomes the basis for transferring property to the heirs or devisees.

A Deed of Sale is still not the document that transfers property from the deceased parent to the heirs under the will, unless the inherited property is later sold.

21. Legitimate and Illegitimate Children

Under Philippine succession law, legitimate and illegitimate children may both have inheritance rights, although their shares may differ. A surviving spouse may also be a compulsory heir.

Because heirship affects ownership, all compulsory heirs must be considered before transferring or selling inherited property.

Excluding an heir can create serious problems, including annulment of documents, title disputes, damages, and buyer risk.

22. Surviving Spouse’s Share

When one parent dies and the other parent survives, the surviving spouse may own:

Their own share in the conjugal, absolute community, or co-owned property; and
An inheritance share from the deceased spouse’s estate.

This distinction is important.

For example, if land was conjugal or community property, only the deceased spouse’s portion forms part of the estate. The surviving spouse already owns their own portion and may also inherit from the deceased spouse.

When both parents are dead, the estates of both must be considered.

23. Property Regime Matters

Before deciding what document to use, determine whether the property was:

Exclusive property of one parent;
Conjugal partnership property;
Absolute community property;
Co-owned property with third persons;
Inherited by one parent from their own family;
Bought before marriage;
Bought during marriage;
Covered by a prenuptial agreement; or
Registered in the name of only one parent but actually part of the marriage property.

The title alone may not answer all questions. The date and mode of acquisition, marriage date, and property regime may affect ownership.

24. Tax Declaration Is Not the Same as Title

Some inherited properties are not covered by a Torrens title and are only declared for tax purposes.

A tax declaration is evidence of possession or claim of ownership, but it is not the same as a land title.

For untitled land, heirs may still settle the estate and update the tax declaration, but additional issues may arise, such as proof of ownership, possession, survey, land classification, and possible titling proceedings.

A Deed of Sale is not the inheritance document, even for untitled land, unless there is an actual sale.

25. Can the Heirs Avoid Estate Settlement by Using a Deed of Sale?

No.

A Deed of Sale should not be used to disguise an inheritance transfer.

If the parents are deceased, they cannot sell the property. A sale supposedly executed by a deceased person is legally defective or impossible if signed after death.

If the heirs pretend that the deceased sold the property during life when no such sale occurred, the document may be fraudulent and may expose the parties to civil, tax, and criminal consequences.

The proper route is estate settlement.

26. What If the Parent Sold the Property Before Death?

If the parent validly sold the property while alive, then the buyer’s claim is based on sale, not inheritance.

In that case, the buyer should have a valid Deed of Sale signed by the parent during the parent’s lifetime. If the title was not transferred before the parent died, the buyer may need to prove the sale and comply with registration and tax requirements.

If heirs dispute the sale, the buyer may need legal action to enforce the sale or compel recognition of the buyer’s rights.

27. What If the Parent Donated the Property Before Death?

If the parent donated the property during life, the relevant document is usually a Deed of Donation, not a Deed of Sale.

However, donations may affect legitime, compulsory heirs, donor’s tax, acceptance requirements, and possible collation or reduction if the donation impairs the lawful shares of compulsory heirs.

If the property was not validly donated during the parent’s lifetime, it may still form part of the estate.

28. What If the Property Was Mortgaged or Had Debts?

Estate settlement should account for debts and encumbrances.

If the property is mortgaged, the mortgage does not disappear because the owner died. The heirs inherit property subject to existing liens and obligations.

Creditors may have rights against the estate. If debts remain unresolved, extrajudicial settlement may not be appropriate or may expose heirs to claims.

A Deed of Sale to a buyer should disclose liens, mortgages, adverse claims, notices of lis pendens, and other encumbrances.

29. What If the Property Is Covered by an Adverse Claim or Litigation?

If the title has an adverse claim, notice of lis pendens, levy, mortgage, or other annotation, the heirs should resolve or address the issue before sale or transfer.

A buyer who accepts property with annotations takes the property subject to the legal effect of those annotations.

Inheritance does not erase title defects.

30. Can the Heirs Partition the Property?

Yes. Heirs may partition inherited property by agreement or through court.

Partition may be:

Extrajudicial, if all heirs agree;
Judicial, if there is disagreement; or
Physical, if the property can be divided;
By sale and division of proceeds, if physical division is impractical.

A partition agreement is not necessarily a Deed of Sale. It is a division among co-owners or heirs.

However, if one heir pays another to receive a larger share, sale or exchange tax issues may arise.

31. Deed of Sale of a Specific Portion Before Subdivision

Selling a specific portion of inherited land can be problematic if the land has not yet been subdivided or partitioned.

For titled land, the Registry of Deeds will generally require proper subdivision plans and technical descriptions before issuing separate titles for portions.

If heirs sell “a 200-square-meter portion” of a larger inherited property without subdivision, the buyer may face difficulty transferring title to that specific portion.

The safer approach is usually to settle the estate, partition or subdivide the property properly, and then execute the appropriate sale document.

32. Special Power of Attorney

If an heir cannot personally sign documents, they may appoint an attorney-in-fact through a Special Power of Attorney.

The SPA should specifically authorize the representative to perform acts such as:

Sign the extrajudicial settlement;
Sell the property;
Receive payment;
Sign tax documents;
Process title transfer;
Represent the heir before the BIR, Registry of Deeds, assessor, treasurer, and other offices.

For sale transactions, the authority to sell should be clear and specific.

33. Practical Scenarios

Scenario 1: Children Inherit House and Lot From Parents

The parents died. The children want the title transferred to their names.

A Deed of Sale is not needed. The usual document is an Extrajudicial Settlement of Estate, assuming the heirs agree and there is no will or unresolved debt.

Scenario 2: Heirs Want to Sell the Property Immediately

The title is still in the parents’ names. The heirs have a buyer.

The common document is a Deed of Extrajudicial Settlement of Estate with Sale.

Scenario 3: One Sibling Wants to Buy Out the Others

The siblings inherited the property. One sibling wants to own it entirely and will pay the others.

The heirs may execute an Extrajudicial Settlement with Sale, Assignment of Rights, or other appropriate transfer document, depending on whether the estate has already been settled and how the transaction is structured.

Scenario 4: Only One Child Survives

The deceased parent left only one heir.

The usual document may be an Affidavit of Self-Adjudication, not a Deed of Sale.

Scenario 5: One Heir Refuses to Cooperate

The heirs cannot validly complete an agreed extrajudicial settlement without that heir. Judicial settlement or partition may be necessary.

Scenario 6: Parent Is Still Alive and Transfers Property to Child

If the parent is alive and transfers property to a child for a price, a Deed of Sale may be used.

If the parent transfers it for free, a Deed of Donation may be used.

If the parent dies before transferring it, succession and estate settlement apply.

34. Common Mistakes

Mistake 1: Using a Deed of Sale From a Deceased Parent

A deceased person cannot execute a sale. Any document made to appear as though the deceased signed after death is invalid and potentially fraudulent.

Mistake 2: Excluding Some Heirs

All legal heirs must be considered. Excluding an heir may invalidate or cloud the transaction.

Mistake 3: Selling the Whole Property Without All Heirs’ Consent

One heir cannot sell the entire inherited property unless authorized by all other co-heirs.

Mistake 4: Ignoring Estate Tax

The title usually cannot be transferred without BIR estate tax processing and CAR issuance.

Mistake 5: Confusing Tax Declaration With Title

A tax declaration is not equivalent to a Torrens title.

Mistake 6: Assuming Possession Equals Ownership

Living in or maintaining inherited property does not automatically make one heir the sole owner.

Mistake 7: Failing to Check the Title

Annotations, mortgages, adverse claims, and technical descriptions must be reviewed before settlement or sale.

Mistake 8: Treating a Waiver as Tax-Free

A waiver may have tax consequences, especially if made in favor of specific heirs or for consideration.

35. Documents Commonly Required by the BIR

Requirements vary by office and transaction, but commonly include:

Estate tax return;
Death certificate;
Tax identification number of the estate and heirs;
Valid IDs;
Deed of Extrajudicial Settlement or Affidavit of Self-Adjudication;
Certified true copy of title;
Tax declaration;
Real property tax clearance;
Zonal valuation or valuation documents;
Proof of claimed deductions, if any;
Marriage certificate;
Birth certificates of heirs;
Special Power of Attorney, if applicable;
Publication proof;
Notarized documents;
Other documents required by the Revenue District Office.

36. Documents Commonly Required by the Registry of Deeds

The Registry of Deeds commonly requires:

Owner’s duplicate certificate of title;
BIR Certificate Authorizing Registration;
Original or certified true copy of the settlement document;
Transfer tax receipt;
Real property tax clearance;
Tax declaration;
Valid IDs;
Registration fee payment;
Approved subdivision plan, if applicable;
Court order, if judicial settlement;
Special Power of Attorney, if someone signs for an heir.

The Registry may refuse registration if documents are incomplete or inconsistent.

37. Is Notarization Required?

Yes, documents affecting real property, such as extrajudicial settlements, deeds of sale, waivers, assignments, and affidavits of self-adjudication, are normally notarized.

Notarization converts the document into a public document and is generally required for registration.

However, notarization does not automatically make an invalid transaction valid. For example, notarizing a fake sale by a deceased person does not cure the defect.

38. Is Publication Required?

For extrajudicial settlement of estate, publication is generally required once a week for three consecutive weeks in a newspaper of general circulation.

The purpose is to notify creditors and interested parties.

Publication does not replace the need to include all heirs, pay taxes, or register the document.

39. Two-Year Bond Issue in Extrajudicial Settlement

In extrajudicial settlements, the law provides protections for persons who may be deprived of participation in the estate. There are rules involving a bond or liability period connected with extrajudicial settlement. In practice, buyers, banks, and registries may be cautious with recently settled estates because claims may still arise.

This is one reason buyers of inherited property often require careful due diligence, heir confirmation, and sometimes additional safeguards.

40. Buyer’s Due Diligence When Buying Inherited Property

A buyer of inherited property should check:

Whether the registered owner is deceased;
Whether all heirs are identified;
Whether all heirs signed;
Whether there is a will;
Whether estate taxes are paid;
Whether the BIR CAR has been issued;
Whether the title has annotations;
Whether real property taxes are updated;
Whether the property is occupied;
Whether there are informal settlers, tenants, or lessees;
Whether the technical description matches the actual property;
Whether the property is subject to road right-of-way, easement, or government claim;
Whether minor heirs are involved;
Whether heirs abroad signed valid documents;
Whether the property has been previously sold, donated, mortgaged, or litigated.

A buyer should be wary of transactions where only one heir signs for everyone without a clear SPA.

41. Can Heirs Register the Property Directly to a Buyer?

Yes, in many cases, if the heirs execute an Extrajudicial Settlement with Sale and the BIR and Registry of Deeds requirements are met, the title may be transferred directly from the deceased owner’s name to the buyer’s name.

This avoids first issuing a title in the heirs’ names and then another title in the buyer’s name.

However, the BIR and Registry of Deeds will still require proper estate settlement and sale documents.

42. Is a Deed of Sale Needed Between the Deceased Parent and the Heirs?

No.

There should be no Deed of Sale between a deceased parent and the heirs for inherited property.

The heirs are not buyers from the parent. They succeed to the property by inheritance.

The proper document is usually an estate settlement document, not a sale document.

43. Is a Deed of Sale Needed Between the Surviving Parent and the Children?

It depends.

If one parent is still alive and owns a share of the property, that parent may sell their own share to the children through a Deed of Sale.

But the deceased parent’s share still passes through inheritance and must be settled through estate proceedings.

For example:

A conjugal property was owned by both parents. The father died. The mother and children are heirs. The mother may sell her own share to the children if she wants, but the father’s estate must still be settled. One transaction may involve both a settlement of the deceased father’s estate and a sale or waiver by the surviving mother.

44. Is a Deed of Donation Better Than a Deed of Sale?

For inherited property, neither a Deed of Donation nor a Deed of Sale is the ordinary document for transmission from deceased parents to heirs.

Donation applies when the owner is alive and gives property for free. Sale applies when the owner is alive and transfers property for a price. Succession applies when the owner has died.

Using the wrong document can create tax and title problems.

45. Can Heirs Make a Private Agreement Without Registration?

Heirs may make private arrangements among themselves, but unregistered documents affecting titled land may not bind third persons in the same way as registered documents.

For titled real property, registration with the Registry of Deeds is important to protect ownership and allow future sale, mortgage, or transfer.

A private family agreement may settle personal understanding among heirs, but it may not be enough to transfer title.

46. Possession by One Child Does Not Necessarily Mean Sole Ownership

It is common for one child to live in the parents’ house after the parents die. That does not automatically make that child the sole owner.

Unless there is a valid will, sale, donation, partition, waiver, or other legal basis, the property generally belongs to the heirs according to their legal shares.

Other heirs may still have rights even if they live elsewhere or have not occupied the property.

47. Improvements Made by One Heir

If one heir spent money to repair or improve the inherited property, that does not automatically make the heir the owner of the entire property.

The heir may have a claim for reimbursement or accounting, depending on the circumstances, but ownership of the inherited property still follows succession and co-ownership rules.

48. Real Property Taxes Paid by One Heir

Payment of real property taxes by one heir is evidence of a claim or administration, but it does not automatically extinguish the rights of other heirs.

An heir who paid taxes may have reimbursement claims against co-heirs, but tax payment alone does not replace estate settlement.

49. Can Inherited Property Be Sold Without Transferring Title First?

Yes, but the sale must be structured properly.

If the title is still in the deceased parent’s name, the heirs may settle the estate and sell the property through an Extrajudicial Settlement with Sale. In that case, the title may be transferred directly to the buyer after tax and registration requirements.

But a plain Deed of Sale signed by only one heir, or a Deed of Sale supposedly signed by the deceased parent, is not sufficient.

50. Can Inherited Property Be Mortgaged by the Heirs?

Heirs may mortgage inherited property only to the extent that they have authority over it.

If the property is co-owned by several heirs, all co-owners usually need to consent to mortgage the entire property. One heir may not mortgage the shares of others without authority.

Banks often require estate settlement and title transfer before accepting inherited property as collateral.

51. Legal Effect of Inheritance Before Registration

Ownership by succession may arise upon death, but registration is still necessary to update the title and protect dealings with third persons.

This means heirs may have hereditary rights even before the title is transferred. However, to sell, mortgage, subdivide, or otherwise deal with the property cleanly, estate settlement and registration are usually required.

52. Practical Answer to the Main Question

Is a Deed of Sale required for inherited property from parents?

No, not when the property is merely inherited.

The proper document is usually an Extrajudicial Settlement of Estate, Affidavit of Self-Adjudication, or Judicial Settlement, depending on the facts.

A Deed of Sale is required only when there is an actual sale, such as:

Heirs selling the inherited property to a buyer;
One heir selling their share to another heir;
Heirs selling their hereditary rights;
A surviving parent selling their own share;
A previously settled inherited property being sold after title transfer.

53. Simplified Guide

Question	Answer
Did the parent die before transferring the property?	Use estate settlement, not Deed of Sale from parent
Are the children merely transferring title to themselves as heirs?	No Deed of Sale needed
Is there only one heir?	Affidavit of Self-Adjudication may be used
Are there several heirs who agree?	Extrajudicial Settlement may be used
Are heirs selling to a buyer?	Deed of Extrajudicial Settlement with Sale or Deed of Sale may be needed
Has title already been transferred to heirs?	Heirs may execute Deed of Absolute Sale to buyer
Is one heir selling only their share?	Deed of Sale or Assignment of Rights may be used
Is there disagreement among heirs?	Judicial settlement or partition may be needed
Is a deceased parent supposed to sign?	Not valid; deceased persons cannot sell

54. Conclusion

A Deed of Sale is not required to transfer inherited property from deceased parents to their heirs in the Philippines. Inheritance is not a sale. The heirs receive their rights by succession upon the death of the parent, subject to estate settlement, tax compliance, and registration requirements.

The usual documents are an Extrajudicial Settlement of Estate, an Affidavit of Self-Adjudication, or a court order in judicial settlement. A Deed of Sale becomes necessary only when the inherited property, or an heir’s share in it, is later sold for consideration.

Using the correct document is important. A wrong or simulated Deed of Sale can cause title defects, tax issues, disputes among heirs, and possible legal liability. For inherited property, the proper legal path is to identify the heirs, settle the estate, pay the required taxes, obtain the BIR Certificate Authorizing Registration, register the transfer with the Registry of Deeds, and update the tax declaration.