Philippine Laws on Land Ownership and Authority to Sell a Parent’s Property

1) The Legal Landscape: What Governs Land Ownership and Sales

Land ownership and transfers in the Philippines are shaped by several core legal sources:

  • 1987 Constitution (Article XII) — sets the nationality rules and limits on land ownership.
  • Civil Code of the Philippines (Republic Act No. 386) — governs property, obligations and contracts, agency (power of attorney), co-ownership, sales, and succession (inheritance).
  • Family Code (Executive Order No. 209) — governs marital property regimes and the rules on spousal consent, plus family home protections.
  • Property Registration Decree (Presidential Decree No. 1529) — governs Torrens title registration and the effects of registration.
  • Public Land Act (Commonwealth Act No. 141, as amended) and related statutes — governs alienable/disposable public lands, homestead/free patent, and how public land becomes private.
  • Tax laws (primarily the National Internal Revenue Code, as amended) — impose capital gains tax / income tax, documentary stamp tax, estate tax, and provide rules for BIR clearances (eCAR/CAR) needed for transfers.
  • Special laws (e.g., Condominium Act, Investors’ Lease Act, agrarian reform laws, IPRA) — apply to specific property types or situations.

Because Philippine land rules are a mix of constitutional restrictions, family property rules, and title registration requirements, the authority to sell a parent’s property depends first on who legally owns it and what legal capacity/authority the seller has.


2) What Counts as “Land” and What Kinds Can Be Privately Owned

A. Lands of the Public Domain vs. Private Lands

Under the Constitution, lands are either:

  • Lands of the public domain (State-owned), classified generally as agricultural, forest/timber, mineral, and national parks; or
  • Private lands (privately owned).

Only agricultural lands of the public domain may be made alienable and disposable and later become private through appropriate grants/titles (e.g., patents, judicial confirmation, etc.). Forest, mineral, and national park lands are generally not subject to private ownership.

B. Registered (Titled) vs. Unregistered Land

Philippine land may be:

  • Registered under the Torrens system (with an OCT/TCT in the Registry of Deeds), or
  • Unregistered (often evidenced by tax declarations, deeds, long possession, or other documents).

A tax declaration is not a title. It can support claims of possession or ownership history, but it is not equivalent to a Torrens title.


3) Who May Own Land in the Philippines (Nationality Rules)

A. Filipino Citizens

As a rule, Filipino citizens may acquire and own land (subject to special restrictions on certain land types like agrarian reform awards, ancestral lands, etc.).

B. Foreigners (Aliens)

As a constitutional rule:

  • Foreigners generally cannot acquire private land, except by hereditary succession (i.e., inheriting from a deceased person, consistent with succession law).

  • Common lawful alternatives include:

    • Condominium units (subject to foreign ownership limits in the condominium project),
    • Long-term leases (not ownership), and
    • Ownership of buildings/improvements (separate from the land, depending on arrangements), though land ownership remains restricted.

C. Corporations and Associations

  • Only corporations/associations that are at least 60% Filipino-owned may acquire private lands (subject to constitutional/statutory limits).
  • For alienable public lands, private corporations generally may hold them only by lease, within constitutional limits on area and term.

D. Former Natural-Born Filipino Citizens

Congress has allowed limited acquisition of private land by former natural-born Filipinos, subject to statutory limits (commonly discussed in practice as limited area caps depending on urban/rural classification). Those who reacquire Philippine citizenship (e.g., under the dual citizenship framework) generally regain broader rights as citizens.


4) Ownership in Families: Why “My Parent Owns It” Is Not One Simple Fact

In Philippine practice, family property is often complicated because the name on the title may not tell the whole story of marital property and successional rights.

A. If the Parent Is Married: Marital Property Regime Matters

If your parent is married, the land may be:

  • Exclusive property of one spouse (e.g., owned before marriage; acquired by gratuitous title such as inheritance/donation to one spouse; or otherwise proven exclusive); or
  • Community/Conjugal property (depending on the regime).

Under the Family Code, the default regime for marriages without a marriage settlement (for marriages covered by the Family Code) is generally Absolute Community of Property (ACP). For other marriages (including older ones or those with valid settlements), Conjugal Partnership of Gains (CPG) or other regimes may apply.

Practical impact: Even if the title is in only one spouse’s name, the property may still be presumed part of the community/conjugal property depending on timing, acquisition, and proof.

B. If the Parent Is Deceased: Heirs Become Co-Owners (Before Partition)

Upon death, ownership transfers by succession, but the estate is typically held in a state of co-ownership among heirs until partition and settlement are completed. This is why selling “a specific portion” before settlement is legally risky.


5) The Basic Rule on Selling Land: Only the Owner (or Someone with Legal Authority) Can Sell

A. The Core Principle

A person cannot sell what they do not own (nemo dat quod non habet). A sale by a non-owner is generally void as to the true owner’s rights, subject to specific registration and good faith doctrines that may protect buyers in certain circumstances—but forgeries and unauthorized signatures are especially fatal.

B. Requirements for a Valid Sale (Civil Code Framework)

A valid contract of sale requires:

  • Consent (from the seller-owner and buyer),
  • A determinate object (the property), and
  • A cause/consideration (price).

For land transactions:

  • Written form is critical for enforceability (Statute of Frauds concepts), and
  • Notarization (public instrument) is essential for registrability and stronger evidentiary weight.

6) Authority to Sell a Parent’s Property While the Parent Is Alive

Scenario 1: The Parent Is the Sole Owner and Competent

Only the parent can sell, unless the parent authorizes someone through agency.

  • A child (or any relative) has no inherent authority to sell merely because of relationship.
  • Even if the child has the title, pays taxes, or manages the property, that does not equal authority to sell.

Scenario 2: Sale Through an Agent (Including a Child as Attorney-in-Fact)

A parent may authorize a child to sell by executing a Special Power of Attorney (SPA).

Key points under Civil Code agency rules:

  • For the sale of land through an agent, the agent’s authority must be in writing; otherwise, the sale is void (a strict rule in the Civil Code).
  • Selling immovable property is among the acts that typically require a special power, not just a general one.

Best practice content for an SPA to sell land (to reduce disputes):

  • Exact property details (TCT/OCT number, location, technical identifiers),
  • Clear authority to sell, negotiate, sign the deed, and receive payment (if intended),
  • Price parameters or minimum price authority,
  • Authority to process BIR/Registry/Assessor documentation,
  • Valid IDs and specimen signatures.

Execution formalities:

  • SPAs are commonly notarized in the Philippines.
  • If executed abroad, they are typically notarized before a Philippine consular officer or otherwise properly authenticated for Philippine use (modern practice commonly relies on apostille/consular processes depending on where executed and applicable rules).

Scenario 3: The Parent Is Married — Spousal Consent is Often Required

If the property is part of ACP or CPG, disposition generally requires:

  • Written consent of the other spouse, or
  • Court authority in appropriate cases.

Under Family Code principles (commonly cited in practice):

  • Disposition/encumbrance of community or conjugal property without the required consent or authority is void.
  • Buyers and registries often require the spouse’s signature even when the title is in one spouse’s name, unless exclusive ownership is clearly documented.

Practical consequence: A child holding an SPA from only one spouse may still be unable to validly sell if the property is community/conjugal and spousal consent is missing.

Scenario 4: The Property Is the “Family Home”

The family home (as defined under the Family Code) has special protections. As a rule, alienation/encumbrance of the family home is restricted and requires the consents contemplated by law (commonly involving the spouses and, in some cases, beneficiaries of legal age), with court intervention when required.

Even when a parent owns the property, if it is the family home, additional legal safeguards may apply beyond ordinary sale rules.

Scenario 5: Co-Ownership While Parent Is Alive (Less Common, But Possible)

If a parent co-owns land with someone else (siblings, spouse, business partner, etc.):

  • A co-owner may generally sell only their undivided share.
  • Selling the entire property requires the consent/signature of all co-owners (or proper authority).

7) When the Parent Cannot Personally Act: Incapacity, Illness, Absence, or Missing Status

A frequent misconception is that a child can “step in” when a parent is too ill, elderly, or mentally impaired. Philippine law does not allow informal substitution.

A. Mental Incapacity / Incompetence

If a parent is no longer competent to give valid consent, then:

  • An SPA signed during incapacity is vulnerable to being attacked as invalid for lack of consent/capacity.
  • The lawful route is typically guardianship (judicial appointment of a guardian), and then court approval for sale of the ward’s property.

Sales of a ward’s real property commonly require:

  • A court petition,
  • Proof that the sale is necessary or beneficial, and
  • Compliance with court-directed safeguards.

B. Absence / Missing Person Situations

If a parent is absent or missing, legal mechanisms (e.g., judicial declarations and appointment of a representative/administrator for property) may be necessary. Authority to dispose of property in such cases is typically court-controlled, not informal.


8) Authority to Sell a Parent’s Property After the Parent Has Died

Once a parent dies, the analysis shifts from “agency” to succession and estate settlement.

A. The Estate Must Be Settled (Judicial or Extrajudicial)

Before a clean transfer to a buyer can usually occur, heirs often need:

  • Settlement of estate (judicial or extrajudicial),
  • Payment of estate tax (and other taxes/fees), and
  • Issuance of the BIR Certificate Authorizing Registration (CAR/eCAR) for transfers.

A common practice is executing:

  • A Deed of Extrajudicial Settlement (if allowed), sometimes combined with Sale in one instrument (“Extrajudicial Settlement with Sale”), to transfer directly to the buyer without first transferring the title into the heirs’ names.

B. Extrajudicial Settlement: Typical Conditions (Commonly Applied in Practice)

Extrajudicial settlement is generally used when:

  • The decedent left no will (intestate), and
  • There are no outstanding debts (or they are settled), and
  • All heirs are identified and agree.

Publication and procedural requirements are typically expected, and registries/BIR commonly require strict compliance.

C. What Heirs Can Sell Before Partition

Before partition, heirs are generally co-owners of the estate property.

Heirs may:

  • Sell or assign their hereditary rights (their undivided share) to another person.

Heirs generally may not:

  • Validly sell a specific portion as if exclusively theirs before partition (unless partition has occurred or all co-heirs consent).

Special redemption rights: The Civil Code provides legal redemption concepts in co-ownership and hereditary contexts, meaning other co-owners/co-heirs may have statutory rights to redeem shares sold to strangers under certain conditions and within specific timeframes.

D. When One Heir Sells the Entire Property Without Others

If one child/heir signs a deed selling the whole property:

  • The deed is generally ineffective as to the shares of the other heirs who did not consent.
  • At most, it may be treated as a sale of the seller’s undivided share, depending on facts and how the deed is framed, but this is dispute-prone and often unacceptable to cautious buyers and registries.

E. If an Executor/Administrator Is Appointed

In judicial settlement, an executor/administrator may be authorized to sell estate property, typically with court approval and compliance with procedural safeguards.


9) Special Property Types That Change the Rules

A. Agrarian Reform Awarded Lands (CLOA/EP and Similar)

Agrarian reform-awarded lands often carry restrictions on sale/transfer, sometimes requiring DAR clearance, waiting periods, or prohibitions. Transactions that violate these restrictions can be void or administratively challenged.

B. Ancestral Lands / Ancestral Domains (IPRA Context)

Ancestral lands/domains recognized under the IPRA framework can involve distinct rules, community rights, and restrictions that do not mirror ordinary private land conveyancing.

C. Condominium Units

Foreigners may generally acquire condominium units subject to statutory foreign ownership ceilings in the condominium corporation/project. The transfer process differs from land titled in a person’s name, though it still involves registries and taxes.

D. Mortgaged or Encumbered Property

If the parent’s title has:

  • A mortgage,
  • Lis pendens,
  • Adverse claim, or
  • Other annotations,

then sale is still possible in some cases, but it requires addressing the encumbrance (payoff, releases, clearances) or accepting the risk (which many buyers will not).


10) Documents and Signatures Commonly Required in a Proper Sale

A legally “clean” land sale typically involves the following layers:

A. Seller Capacity and Authority

  • Valid government IDs
  • Proof of civil status (marriage certificate, if relevant)
  • Spousal consent/signature (when required)
  • SPA (if agent signs), properly executed and notarized/authenticated

B. Property Documents

  • Owner’s duplicate of the TCT/OCT
  • Latest tax declaration
  • Latest real property tax clearance and official receipts
  • Certified true copy of title from the Registry of Deeds (due diligence)
  • Lot plan/technical descriptions (when needed)

C. Transaction Instruments

  • Deed of Absolute Sale (or deed appropriate to the transaction structure)
  • If estate-related: Extrajudicial Settlement / Judicial orders, and supporting documents (death certificate, heirship proofs)

D. Tax and Registry Requirements

  • BIR tax forms and proof of payment
  • CAR/eCAR
  • Local transfer tax payment (local government)
  • Registry of Deeds fees
  • Assessor’s office transfer/update for tax declaration

11) Taxes: Sale vs. Donation vs. Inheritance (Why Families Often Misstep)

Families often choose between:

  • Sale (even within family),
  • Donation, or
  • Inheritance/estate transfer.

Each has different tax consequences:

  • A typical sale of land classified as a capital asset is commonly subject to 6% capital gains tax (based on the higher of selling price or fair market value), plus documentary stamp tax and local charges; but if the property is an ordinary asset in the seller’s hands (e.g., used in business or seller is engaged in real estate business), different income tax/VAT rules may apply.
  • Donation triggers donor’s tax (modern regime generally uses a flat rate structure under recent tax reforms) and requires strict formalities for immovable property donations (public instrument and acceptance requirements under the Civil Code).
  • Inheritance requires estate settlement and estate tax, plus documentation and BIR clearances before registries will transfer titles.

A common pitfall is disguising a donation as a sale to avoid family conflict or tax misunderstandings. “Simulated” transactions invite legal challenges, especially among compulsory heirs.


12) Common Legal Pitfalls in “Child Selling Parent’s Property” Situations

  1. No SPA / wrong kind of SPA For land, authority must be in writing; selling immovable property generally demands a special authority. A vague authorization often leads to rejection by buyers, BIR, or registries—and can be attacked in court.

  2. Missing spouse signature If the property is community/conjugal, the lack of spousal consent can make the transaction void.

  3. Parent already incapacitated A signature obtained when a parent lacks capacity is vulnerable to nullification. Court-supervised guardianship is the proper path for disposition.

  4. Selling estate property without settlement Heirs skipping settlement often hit a hard stop at the BIR/Registry stage. Even if a buyer pays, title transfer can be blocked.

  5. Assuming “possession” equals authority Paying taxes, occupying the land, or keeping the title does not create authority to sell.

  6. Buying from only one co-owner/heir The buyer may end up owning only an undivided share, becoming a co-owner with the family—often a recipe for litigation.

  7. Defective notarization or execution Notarization defects can undermine registrability and credibility of the deed.

  8. Ignoring annotations and disputes Adverse claims, lis pendens, and mortgages can derail sales or turn them into lawsuits.


13) Practical Rule-of-Thumb Matrix: When Can a Child Sell?

A child can validly sell a parent’s land only when one of these is true:

  • The child is the registered owner (the property is already titled in the child’s name); or
  • The child has a properly executed written authority, typically a Special Power of Attorney, and all other required consents (e.g., spouse) are present; or
  • The child is a court-appointed guardian/administrator/executor and has court authority where required; or
  • The parent is deceased and the child is acting within a valid estate settlement framework (with all heirs consenting or proper authority/partition), with required tax clearances obtained.

A child cannot validly sell merely because:

  • They are the eldest child / family decision-maker,
  • They possess the title,
  • They have been paying real property taxes,
  • The parent verbally agreed,
  • Other relatives “allowed it” informally,
  • The parent is sick or cannot travel (without proper legal authority).

14) Key Takeaways

  • Philippine land ownership is tightly regulated by constitutional nationality rules, marital property laws, succession rules, and title registration requirements.
  • Only the owner (or a properly authorized representative) can sell land; relationship alone does not confer authority.
  • For land sales through an agent, written authority is mandatory, and selling immovable property typically requires a Special Power of Attorney.
  • If the parent is married and the property is community/conjugal, spousal consent (or court authority) is often indispensable, and lack of it can make the sale void.
  • If the parent is deceased, heirs usually must proceed through estate settlement, and heirs generally cannot sell specific parts before partition—only undivided shares/hereditary rights, unless everyone agrees or a court authorizes.
  • Taxes (sale, donation, estate) and BIR/Registry requirements are not optional paperwork; they are structural to whether title can be transferred and whether the transaction will hold up under challenge.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.