Prescription & Liability for Falsification of a Deed of Extrajudicial Settlement
Philippine Legal Overview
1 | Why the topic matters
An extrajudicial settlement of estate (EJS) under Rule 74 of the Rules of Court is the cheapest, fastest way to divide a decedent’s property when (a) he left no will, (b) the heirs are of age (or represented), and (c) the estate has no outstanding debts. Because the deed is notarised and registered, it becomes a public document. Forging signatures, inserting false statements, or making it appear another heir participated when he did not, converts the EJS into a falsified public document—a felony under Art. 171 of the Revised Penal Code (RPC) and a fertile ground for later civil suits to annul the conveyance. Understanding prescriptive periods is therefore crucial: miss the deadline and remedies—criminal or civil—can be lost forever.
2 | Legal framework at a glance
| Subject - Matter | Key Bases | Typical Prescriptive Period |
|---|---|---|
| Criminal liability for falsification of a public document | RPC Arts. 171(1-7), 90-91 | 10 years from discovery of the crime |
| Civil action to annul an EJS for voidable defects (fraud without forgery) | Civil Code Arts. 1390-1391 | 4 years from discovery of the fraud |
| Civil action to declare void/inalienable (forgery = void ab initio) | Civil Code Art. 1397; jurisprudence | Imprescriptible (subject only to laches) |
| Reconveyance / implied trust (property already transferred) | Civil Code Art. 1144; Art. 1456 | 4 years from discovery but ≤ 10 years from registration (if title issued) |
| Action after Torrens title decree becomes final | Property Registration Decree (§ 103) | 1 year from issuance of decree (then only acción reivindicatoria vs. the title holder) |
| Estate creditors vs. heirs after EJS | Rule 74 § 4 | 2 years from publication of EJS |
| Administrative/notarial liability | Rules on Notarial Practice § 1 | No explicit code; usually treated as 5-year personal action under Art. 1149 |
(“Discovery” means when the offended party or authorities first learned reliably of the falsification, per Art. 91 RPC.)
3 | Criminal dimension
3.1 Elements of falsification (Art. 171 RPC)
Document is public (notarised deed or one required by law to be public);
Offender takes any of the seven acts in Art. 171, the most common being:
- Counterfeiting or imitating signatures;
- Making untruthful statements in a narration of facts; or
- Causing it to appear that persons participated when they did not.
Intent to cause damage or intent to gain is not an element; the mere act endangers public faith.
3.2 Penalty & prescription
- Falsification of public documents is punished by prisión mayor + fine.
- Under Art. 90, felonies punishable by prisión mayor prescribe in 10 years.
- Art. 91: if the falsified deed remains hidden, prescription runs only from discovery.
- Interruptions: filing of complaint, issuance of judicial proceedings, or extraterritorial absence of accused.
Illustrative cases
| Case | Gist on prescription |
|---|---|
| People v. Dizon (G.R. 138934, 2000) | Running of 10-year period started on the date the omitted heir discovered the falsified EJS. |
| People v. Malana (G.R. 233531, 2021) | Filing with the prosecutor’s office—even if later dismissed—already interrupts prescription. |
4 | Civil dimension
4.1 Void vs. voidable deeds
| Situation | Legal characterization | Prescriptive rule |
|---|---|---|
| Forged signature or dead heir “signing” | Void ab initio (absence of consent) | Action imprescriptible but may be barred by laches |
| Genuine signatures but fraud (e.g., heir lied about absence of debts, or concealed another heir) | Voidable | Annul within 4 years from discovery (Art. 1391) |
Doctrine: Spouses Abalos v. Heirs of Abalos (G.R. 158989, 2005) treats a deed with forged signatures as “non-existent” and imprescriptible; Heirs of Malate v. Gamboa (G.R. 167175, 2018) reiterates the same even if a Torrens title was issued.
4.2 Reconveyance & implied trust
When property has already been titled in the forger’s name, the defrauded heir sues for:
- Reconveyance (restores property to the true owner)
- Implied/constructive trust (Art. 1456)
Prescriptive windows • 4 years from the date the defrauded party discovered the fraud and • 10 years from the issuance of the Torrens title (Art. 1144).
Past the 10-year cut-off, action for reconveyance is barred, but an action to quiet title against a void title is still available (imprescriptible), subject to laches.
4.3 Creditors’ two-year window (Rule 74 § 4)
Creditors of the estate have two years after publication of the EJS to sue the heirs directly; thereafter, they can still sue but the heirs’ liability becomes pro-rata, protecting bona-fide purchasers.
5 | Administrative & tax overlays
| Topic | Notes |
|---|---|
| Notarial liability | Complaints filed with the RTC Executive Judge; disbarment or suspension possible. While no statute fixes a prescriptive period, the SC has applied Art. 1149’s 5-year rule for “all other actions” not expressly governed. |
| BIR estate tax clearance | A falsified EJS often contains false declarations to the BIR. Under the Tax Code, a “false return” allows the BIR 10 years (instead of 3) to assess deficiency estate taxes. |
| Register of Deeds | Upon final judgment annulling a falsified deed, the RD must cancel the fraudulent entry; no prescriptive issue because registration acts are ministerial once judgment is final. |
6 | Laches: the ever-present wildcard
Even imprescriptible actions may be dismissed if the plaintiff slept on his rights and the defendant relied on the silence. Courts balance:
- Length of delay
- Why the delay occurred
- Whether defendant changed position to his prejudice
- Public policy on stability of titles
7 | Practical checklist for an aggrieved heir or creditor
| Step | Timing | Purpose |
|---|---|---|
| 1 Verify the deed (obtain certified copy of EJS, tax declarations, titles) | ASAP | Gather evidence of falsification/fraud |
| 2 Complain to the prosecutor (criminal) | ≤ 10 yrs from discovery | Interrupt criminal prescription |
| 3 File civil action (annulment/ reconveyance/ quiet title) | Voidable: ≤ 4 yrs; Reconveyance: ≤ 4 yrs & ≤ 10 yrs | Preserve property rights |
| 4 Annotate lis pendens on titles | Immediately after filing civil case | Notify third parties & suspend title indefeasibility |
| 5 Consider estate tax & BIR issues | Before or parallel with civil case | Avoid secondary tax liabilities |
| 6 Watch the 2-year creditor window (if you are a creditor) | Within 2 yrs of EJS publication | Sue heirs solidarily |
8 | Key Supreme Court pronouncements
| Case | Core ruling related to prescription |
|---|---|
| Heirs of Yutingco v. Rasul (G.R. 138888, 2001) | An action to declare void a deed with a fictitious party does not prescribe. |
| Spouses Abalos v. Heirs of Abalos (2005) | Forged EJS = void; reconveyance imprescriptible; but laches may apply. |
| Benin v. Tuason (L-23601-02, 1970) | 1-year period under Torrens decree applies only to contesting the decree itself; action to reconvey void title remains imprescriptible. |
| Serna v. CA (G.R. 162114, 2006) | 4-year period under Art. 1391 begins when plaintiff knew or could have known of fraud with reasonable diligence. |
| Heirs of Malate v. Gamboa (2018) | Registration of a void deed does not cure the nullity; title may be challenged any time, absent laches. |
9 | Frequently-confused points, clarified
| Myth | Reality |
|---|---|
| “Once a Torrens title issues, you only have 1 year to sue.” | The 1-year rule applies to petitions against the decree itself. Actions attacking a void title—because the underlying deed was forged—are imprescriptible. |
| “All actions on falsified EJS prescribe in 10 years.” | Only the criminal action follows the 10-year rule. Civil actions depend on whether the deed is void or voidable, or whether reconveyance is sought. |
| “If the elder brother forged signatures in 1990 and I discovered in 2024, I’m barred.” | For criminal liability, yes (10 years lapsed). But an action to declare the deed void is still open—subject to laches analysis. |
| “Filing a barangay complaint interrupts prescription.” | Not for criminal prescription (requires filing with prosecutor or court). Civil prescription is tolled by any extrajudicial demand, which a barangay complaint qualifies as. |
10 | Take-aways
- Pin down the right prescriptive clock—criminal (Art. 90) ≠ civil (Arts. 1144, 1391) ≠ Torrens challenges.
- Discovery date is pivotal; keep evidence (letters, notices, tax receipts) to prove when you learned of the forgery.
- Act fast—even imprescriptible actions can be thrown out on laches if you sleep on your rights.
- Dual-track strategy is common: simultaneous criminal complaint (to pressure wrong-doer) and civil suit (to recover property).
- Publication & creditor period: creditors of the estate get a two-year shortcut under Rule 74—don’t miss it.
Suggested initial pleading captions (for reference)
- “Complaint for Reconveyance, Annulment of Deed of Extrajudicial Settlement and Cancellation of Transfer Certificates of Title, with Damages” (voidable deed; property already titled)
- “Action to Declare Deed of Extrajudicial Settlement Void ab initio and to Quiet Title” (forged signatures; imprescriptible)
- “Information for Falsification of Public Document (Art. 171, RPC)” (criminal case before the prosecutor)
Bottom-line
A falsified deed of extrajudicial settlement is a hydra-headed legal problem—criminal, civil, tax, and administrative. Mastering the prescription rules is your first shield: they tell you how long you have and what remedy still survives.