Land Title Transfer Issues When the Seller Has Died (Philippines)

Updated as of July 2025 (For general information only; always consult a Philippine lawyer or licensed real-estate broker for advice on your specific facts.)

1. Why the Issue Arises

Under Article 777 of the Civil Code, ownership of a decedent’s property passes immediately and by operation of law to the estate and, ultimately, to the lawful heirs. A buyer who signs a deed of sale after the registered owner’s death is therefore dealing with someone who can no longer convey title (“nemo dat quod non habet” – one cannot give what one does not have). The mismatch between (a) title still in the deceased’s name and (b) the need to deliver a clean Transfer Certificate of Title (TCT) to the buyer creates several legal and practical bottlenecks.

2. Legal Framework

Topic	Key Authority
Succession rules	Civil Code, Arts. 960 – 1106
Registration & transfer of Torrens titles	Property Registration Decree (PD 1529)
Extrajudicial settlement	Rules of Court, Rule 74
Inheritance tax	NIRC (as amended by TRAIN Law, RA 10963) – 6 % of net estate
Estate-tax amnesty (for deaths on/before 31 Dec 2021)	RA 11213, as extended
Local transfer tax	Local Government Code (LGC), secs. 135 & 196
Documentary stamp tax (DST) & capital-gains tax (CGT)	NIRC, secs. 196 & 24(D)
Guardianship sales (if minors/heirs are incapacitated)	Rules of Court, Rule 96
Selected case law	Spouses Abalos v. Heirs of Gomez (2003), Heirs of Malate v. Gamboa (2012), Maunlad Homes, Inc. v. Diamonon (2018), Spouses Go v. Tan (2022)

3. Core Scenarios & Their Consequences

Scenario	Legal Effect	Common Remedies
*A. Seller signed the deed before* dying, but deed is unregistered.**	Contract is valid; registration may proceed because the seller had capacity on signing date.	• Register deed, pay CGT/DST • File estate-tax return & secure BIR eCAR • RD issues new TCT in buyer’s name
*B. Seller already died when the deed was signed by heirs without full authority* (not all heirs joined / no SPA / minors involved).**	Deed is void for lack of consent. Buyer acquires no title even if registered.	• Ratification by all heirs • Court-approved compromise • Action for reconveyance or rescission plus damages
C. Heirs want to sell but title remains in decedent’s name.	Heirs cannot deliver marketable title until the estate is settled and transferred to them or directly to buyer.	• Extrajudicial Settlement (EJS) if (i) no will, (ii) no minor/incapacitated heirs, (iii) no objections. • Judicial settlement / probate if any requirement for EJS is missing. • Issue one deed: “Deed of EJS with Sale” or do EJS → issue new TCT → deed of sale.
D. Buyer discovers death only after paying.	Sale may be void or voidable. Real recourse is against seller’s estate/heirs, but good-faith buyer may claim reimbursement, interest, plus damages.	• File claim in estate proceedings • Annotate adverse claim on TCT within 30 days under Sec. 70, PD 1529 • Criminal action if fraudulent concealment

4. Step-by-Step Checklist When the Registered Owner Has Died

Due diligence
- Secure certified true copy (CTC) of TCT from the Registry of Deeds (RD).
- Get certified death certificate, marriage certificate, and birth certificates of heirs.
- Verify outstanding real-property tax (RPT) and any liens/annotations (e.g., mortgage, adverse claim).
Settle the estate
- Extrajudicial settlement (EJS)
  - All heirs sign a notarized “Deed of Extrajudicial Settlement” (or “Deed of EJS With Sale”) and publish it once a week for three consecutive weeks in a newspaper of general circulation (Rule 74 §1).
  - If there is a will, file probate; the court-appointed executor or administrator will sign documents.
  - If minors are heirs, secure guardianship approval (Rule 96) and the court’s written authority to sell.
File the estate-tax return (BIR Form 1801)
- Deadline: within one year from death (extendible).
- Under TRAIN, estate-tax rate = 6 % of net estate; no more graduated schedule.
- Attach mandatory documents (EJS/Letters Testamentary, TCTs, tax clearances, proof of debts, etc.).
- Pay estate tax, penalties, and interest (or apply estate-tax amnesty where still applicable).
Obtain the BIR Electronic Certificate Authorizing Registration (eCAR)
- One eCAR for the estate transfer; another for the sale to the buyer, if the deed of sale is separate.
Pay Local Transfer Tax (0.5 % to 0.75 % of selling price/FMV/zon-value, whichever is higher) at the City/Municipal Treasurer.
Register with the Registry of Deeds
- Present:
  - Owner’s duplicate TCT
  - EJS/deed of sale (notarized)
  - eCARs, tax receipts, RPT clearance, DST and CGT proofs (BIR Forms 1706 & 2000-OT, if applicable)
  - DAR clearance if land is agricultural (> 5 ha)
- RD cancels old TCT and issues:
  - TCT in heirs’ names (if EJS only) or
  - Direct TCT in buyer’s name (if EJS with sale).
Post-registration tasks
- Secure new tax declaration in Assessor’s Office.
- Update RPT account and homeowners’ association records.
- Keep all originals and certified copies; Rule 74 §4 gives excluded heirs/creditors 2 years from registration to challenge an EJS.

5. Special Complications

Issue	Notes / Cure
Missing owner’s duplicate title	File a “Petition for the Issuance of a New Owner’s Duplicate” (Sec. 109, PD 1529), then proceed.
Title says ‘Spouses’ but only one died	Only decedent’s ½ (conjugal share) forms part of estate; surviving spouse must sign sale for their own half.
Unknown or unwilling heirs	Institute judicial settlement; court may appoint administrator and allow sale if in the best interest of estate (Rule 89 §2).
Minor or incapacitated heirs	Sale must be court-approved (Rule 96) or risk nullity.
Double sale (Art. 1544, Civil Code)	Earlier registrant in good faith prevails; buyers must register ASAP.
Buyer in good faith but title remained in decedent’s name	Torrens system protects only purchasers who rely on the face of the certificate. Since title still shows the decedent, buyer is not protected; due diligence must extend to checking if owner is alive.
Estate-tax amnesty deadlines	RA 11956 (2023) extended amnesty for deaths up to 31 Dec 2021 until 14 June 2025. Failure means paying regular estate-tax plus penalties.
Agricultural land / CARP	Land above retention limits or in CARP coverage needs DAR clearance (DAR A.O. 1-89, A.O. 7-2011).

6. Remedies and Risk-Management for Buyers

Pre-purchase precautions
- Ask for the seller’s valid ID and a recent medical certificate if elderly.
- Require heirs to sign a notarized Affidavit of Heirship and SPA.
- Keep at least 10 % of price in escrow until title is transferred.
If death is discovered post-payment
- Send notarized demand to estate/heirs to settle estate and execute valid deed.
- Annotate an Adverse Claim (Sec. 70, PD 1529) on the TCT within 30 days of learning the defect.
- Sue for rescission (Art. 1385) and damages, or file an action to compel conveyance if heirs are willing but negligent.
If deed already registered but heirs contest
- Argue buyer’s good faith if seller was still on title and you had no knowledge of death at signing (often rejected by courts).
- Prepare to return the property in exchange for reimbursement (void sale produces mutual restitution).

7. Frequently-Asked Questions

Question	Short Answer
Can one heir sell the whole property?	No. At most they may sell their undivided share, and buyer only becomes a co-owner.
Is publication of the EJS always required?	Yes – three consecutive weeks. Omission risks nullity and criminal liability for falsification.
Do we still pay capital-gains tax if estate sells directly to buyer?	Yes. Two eCARs: (1) estate transfer (estate tax); (2) sale to buyer (6 % CGT + 1.5 % DST).
What if estate tax was never filed and > 5 years have passed?	Estate-tax liability does not prescribe; BIR can assess anytime. Use amnesty if qualified.
Is the notarized deed enough to prove ownership?	No. Registration is “the operative act” that conveys and affects third parties.

8. Illustrative Judicial Doctrines

Spouses Abalos v. Heirs of Gomez (G.R. 150635, 10 Jun 2003) Sale by one heir without consent of co-heirs is void; buyer in good faith cannot rely on Torrens title still in decedent’s name.
Heirs of Malate v. Gamboa (G.R. 181276, 2 Oct 2012) Extrajudicial settlement needs publication; failure renders EJS voidable within the two-year period under Rule 74 §4.
Maunlad Homes, Inc. v. Diamonon (G.R. 200335, 5 Feb 2018) Even where buyer acted in good faith, title cannot be transferred if seller lacked capacity. Registration cannot cure void sale.
Spouses Go v. Tan (G.R. 232797, 10 Jan 2022) Buyer bears burden of verifying vendor’s legal authority; actual knowledge of vendor’s death makes buyer in bad faith.

9. Practical Tips for Practitioners and Buyers

Always get a certified death certificate during due-diligence.
Cross-check signatures against IDs and past documents; handwriting experts are cheaper than litigation.
Insist on eCAR-on-hand before releasing full payment.
Use escrow or a Title Insurance policy; insure against hidden heirs or forged documents.
Record the deed within the same day of notarization to minimize risk of double sales.
Keep notarized board resolutions if the estate is handled by a corporate executor (rare but applicable to large estates).

10. Conclusion

Transferring land when the seller has already passed away is never a mere paperwork exercise in the Philippines. The buyer’s ultimate protection lies in understanding succession law, ensuring the estate is properly settled, paying all taxes, and completing registration. Skipping any step—no matter how informal local practice may seem—invites the risk of a void sale, unpaid estate taxes, and litigation that can drag on for decades. A methodical, document-driven approach—and professional advice—are indispensable.