Petition for Judicial Authority to Sell a Minor’s Property (Philippines)

General legal information for the Philippine setting. Not legal advice. For a specific case, consult a Philippine lawyer or your local Family Court.

Why you need court authority in the first place

Under the Family Code and the Rules on Guardianship of Minors (A.M. No. 03-02-05-SC), a minor (under 18) cannot validly sell or encumber property on their own. Even parents or guardians cannot dispose of a minor’s property at will. Disposition (sale, mortgage, exchange, long-term lease, or any encumbrance) generally requires prior court approval, based on a showing that the act is necessary or manifestly beneficial to the minor.

Key ideas:

Parents are administrators/legal guardians of their unemancipated child’s property, but:
- If the minor’s property exceeds a statutory amount, the law requires bond and court supervision.
- Any alienation/encumbrance normally requires court authority even if the parent is the property administrator.
A sale without the court’s prior authority is ineffective against the minor and can be set aside; it also exposes the parent/guardian and even the buyer to legal risk.

When can the court allow a sale?

The standard is always the best interests of the child. Courts typically grant authority if the sale is necessary (e.g., urgent medical expenses, support, essential education needs) or clearly advantageous (e.g., consolidating scattered, unproductive assets into a safer or better-yielding fund). Judges also consider less restrictive alternatives (e.g., lease or mortgage instead of sale) and whether the asset is productive (earning rent/dividends) versus burdensome (taxes, repairs).

Typical fact patterns that justify a sale:

Large, non-income-producing real property that drains funds (real property tax, upkeep).
Proceeds needed for medical treatment, special education, or basic support.
Conversion of risky or illiquid assets into safer cash or fixed-income instruments.
Partition or settlement of co-owned property where retaining ownership is impractical.

Who may file the petition?

Father and/or mother exercising parental authority (the usual petitioner).
- For illegitimate children, the mother exercises sole parental authority, unless a court orders otherwise.
- If parents are married but separated or there is conflict of interest, the court may require the joinder of the other parent or appoint a guardian ad litem for the minor.
A duly appointed judicial guardian (if guardianship is already in place).
In appropriate cases, a relative or any interested person (e.g., the custodian) may initiate guardianship and then seek authority to sell.

Where to file (venue and court)

File in the Family Court (a designated branch of the Regional Trial Court) of the province/city where the minor resides.
If the petition is part of an ongoing guardianship case, file in the same court/branch.

What the petition must show and attach

A verified petition (signed and sworn to) with the following:

Parties and capacity
- Full details of the minor (name, age, residence) and the petitioner (relationship, basis of parental authority or letters of guardianship).
Description of the property
- Exact description and title identifiers for real property (TCT/CCT number, location, area); for movables, serial numbers/unique identifiers.
Nature of ownership
- Is the minor the sole owner or a co-owner? Is the property conjugal/community with improvements that affect third-party rights?
Necessity or benefit
- Clear, particular facts showing why sale (not just mortgage/lease) is necessary or manifestly beneficial—attach supporting documents (medical reports, tuition assessments, tax statements, repair estimates, proof of non-productivity, etc.).
Current valuation
- Independent appraisal or at least BIR zonal value/assessed value with a plan to secure a formal appraisal before sale.
Proposed mode/terms
- Proposed floor price, whether public auction or private sale, payment terms (cash vs. installment), and escrow or investment plan for proceeds.
Inventory and bond
- Inventory of the minor’s assets and income; acknowledgment that the petitioner is willing to post bond as the court may fix.
Notices and consents
- Names/addresses of near relatives; if one parent is not petitioning, explain non-joinder (consent, estrangement, incapacity, or adverse interest).
Prayer for relief
- Authority to sell on terms the court finds best; authority to sign the deed; approval of the use/placement of proceeds; and directions to the Registry of Deeds.

Typical attachments

PSA birth certificate of the minor.
Proof of parental authority (marriage certificate, custody orders, or guardianship appointment).
Land title and latest tax declaration/real property tax receipts; or ownership documents for movables.
Appraisal or valuation documents.
Medical/educational cost estimates, invoices, or contracts.
Proposed buyer’s offer (if any) or marketing plan (if sale will be through bidding/auction).
Draft escrow/investment plan for proceeds (e.g., time deposit, retail treasury bonds, trust for education).

The court process, step by step

Filing and raffle. Pay filing fees; case is raffled to a Family Court branch.
Docketing and initial review. The court may require curing of defects, additional attachments, or notices to relatives.
Notice and hearing.
- The court sets a hearing; requires service to near relatives and, if appropriate, posting of notices or even publication (the court has discretion depending on the circumstances and to protect the minor).
- The court may appoint a guardian ad litem to independently represent the child if there’s potential conflict with the petitioner.
Evidence.
- Petitioner presents testimony and documentary proof: necessity/benefit, valuation, and why sale (not mortgage/lease) is appropriate.
- The judge may require updated appraisal or additional buyers’ offers to ensure a fair price.
Bond and safeguards.
- Before authorizing sale, the court fixes a bond (often keyed to the asset value and projected income), to ensure faithful administration of proceeds.
Order granting authority.
- The court specifies what may be sold, minimum price, mode (public auction/private sale), who signs, deadline to conclude the sale, and how to hold/use the proceeds (usually escrow or interest-bearing account in the minor’s name with withdrawals only by court approval).
Conduct of sale; deed and registration.
- Follow the court’s terms (e.g., auction with notice or private sale for not less than court-approved floor price).
- Execute a Deed of Absolute Sale/Deed of Assignment in the petitioner’s representative capacity (e.g., “Juan Dela Cruz, as judicially authorized representative of minor Ana Dela Cruz”), then register with the Registry of Deeds (for real property).
Post-sale accounting and utilization.
- File a Report of Sale with supporting documents (deed, ORs, bank/escrow proof, BIR taxes paid, transfer documents).
- File periodic accountings showing how proceeds are kept or spent—each significant withdrawal still needs prior leave of court, unless the order already approved a specific utilization schedule.

What the judge looks for (practical checklist)

Best interest analysis is explicit in the order.
Fair or better-than-market consideration (supported by appraisal, zonal value, comps, or bids).
Narrow tailoring: Why sale over less drastic means (lease/mortgage)? Why this asset and not others?
Safeguards: Bond sufficiency; proceeds placed in escrow or risk-appropriate instruments; restricted withdrawals; timetable for accounting.
Clean title: Due diligence on liens/encumbrances; tax and association dues updated; documents ready for transfer.
No conflict of interest: If buyer is a relative or connected party, the court scrutinizes for self-dealing and often prefers an open, competitive process.

Dispositions covered (not just “sale”)

“Disposition” is read broadly. Court leave is prudent/required for:

Sale (absolute or conditional).
Mortgage or real estate loan secured by the minor’s property.
Exchange (dacion en pago, barter).
Long-term lease (especially those that substantially tie up the property).
Easements or rights-of-way that significantly diminish value.
Partition of co-owned property that will result in the minor receiving cash or a different parcel.

Tax and transfer implications (real property)

Expect the usual transaction costs, settled from the sale proceeds unless negotiated otherwise:

Capital Gains Tax (or Creditable Withholding Tax for VAT/non-dealer scenarios).
Documentary Stamp Tax, Transfer Tax, Registration Fees.
Clearances: BIR Certificate Authorizing Registration (CAR), Real Property Tax receipts, association dues, and barangay/city requirements.
Court orders are typically presented to the BIR and Registry of Deeds together with the deed.

Tip: Present the court order prominently to counterparties (buyer, bank, BIR, Registry) to avoid questions about authority.

Common pitfalls (and how to avoid them)

Selling first, asking permission later. Risky and often void against the minor. Always secure prior authority.
Undervaluation. Courts may reject a low price; use independent valuation and, if needed, competitive bidding.
Using proceeds without approval. Keep proceeds segregated; no withdrawals without court leave (unless already authorized in the order).
Title defects and unpaid taxes. Clear all liens/real property taxes; buyers (and the court) will expect clean title.
Conflict of interest/self-dealing. Related-party transactions face higher scrutiny; disclose fully and consider public auction.
Ignoring the non-petitioning parent. Explain and notify; courts disfavor secrecy. Where interests conflict, expect a guardian ad litem.

Special notes and edge cases

Illegitimate child: The mother has sole parental authority; she petitions unless a court orders otherwise.
OFW/absent parent: A special power of attorney may be allowed for procedural acts, but testimony and personal knowledge are often required; remote testimony is sometimes permitted at the court’s discretion.
Property partly owned by the minor: The court may authorize sale of the minor’s undivided share or a partition first, depending on what is more beneficial.
Insurance or settlement proceeds: Even cash already payable to a minor is typically released subject to court supervision and restricted accounts.
Trusts or donations with conditions: The court will respect donor/trust restrictions; some assets may not be sellable.

Sample structure (for drafting)

Title: In Re: Petition for Judicial Authority to Sell Real Property of Minor [Name] Parties: [Parent/Guardian] as petitioner; [Minor] represented. Allegations: Minor’s identity and residence; parental authority/letters; property details and title; necessity/benefit; valuation; proposed terms; plan for proceeds; bond. Prayer: Authority to sell under stated minimum price/mode; authority to sign; directions re: escrow/investment; leave for periodic withdrawals for specified needs; order to Registry of Deeds; other just relief.

Proposed Order (high-level clauses):

Finds sale necessary/beneficial to the minor.
Approves minimum price/terms; sets mode (auction/private sale).
Requires bond in the amount of ₱___.
Directs deposit of proceeds to [bank/escrow] account in the minor’s name; withdrawals only by leave or per an approved utilization schedule (education/medical/support).
Requires report of sale and annual accounting.

Frequently asked questions

Q: Can we just mortgage instead of selling? A: Yes, but you still generally need prior court approval. Courts prefer the least restrictive option that still meets the minor’s needs.

Q: How long does this take? A: Varies by court and case complexity (completeness of documents, need for appraisal, objections). Plan for hearings, possible additional submissions, and time to consummate the sale afterward.

Q: The property is small—do we still need court approval? A: For disposition (sale/mortgage/encumbrance), court leave is the safe rule regardless of property value. The “value threshold” mainly affects bond and supervision requirements, not the need for authority to sell.

Q: What if the buyer is a relative? A: Disclose fully. The court may require bidding, a higher floor price, or additional safeguards to avoid self-dealing.

Takeaways

Don’t sell first. Secure judicial authority before any minor’s property is disposed of.
Prove necessity/benefit with documents and, ideally, independent valuation.
Expect bond, escrow, and accountings—all designed to protect the child.
Structure the utilization of proceeds (education, healthcare, basic support) and keep everything documented for the court.

Handy preparatory checklist

Verified petition with facts proving necessity/benefit
Minor’s birth certificate; proof of parental authority or letters of guardianship
Title/ownership documents; latest tax dec/receipts
Appraisal/valuation; proposed floor price and mode of sale
Notices to near relatives; address any parental conflicts
Willingness to post bond; proposed escrow/investment arrangement
Plan for post-sale accounting and authorized uses of proceeds

If you want, I can turn this into a ready-to-file petition template and a draft court order with blanks you can fill in.