In Philippine law, a donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. When this transfer is intended to take effect during the lifetime of the donor, it is known as a donation inter vivos.

Because real property (land, buildings, houses) involves significant value and public interest, the Civil Code of the Philippines imposes strict formal and substantive requirements. Failure to comply with these "solemnities" renders the donation void—meaning, in the eyes of the law, the transfer never happened.

1. The Three Essential Elements

For a donation to be valid, three elements must coexist:

Reduction of the Donor’s Patrimony: The donor must actually give up ownership of the property.
Increase in the Donee’s Patrimony: The receiver must acquire the property.
Animus Donandi (Intent to Donate): The donor must have the clear, subjective intention to perform an act of pure liberality.

2. Strict Formal Requirements (Article 749)

Unlike a sale, which can sometimes be proven through other means, a donation of real property is a solemn contract. Under Article 749 of the Civil Code, the following formalities are mandatory:

I. The Public Instrument

The donation must be made in a public document (a Deed of Donation). This means the document must be acknowledged before a Notary Public. A private handwritten note or a simple signed letter is insufficient to transfer title to land.

II. Description of the Property

The deed must specify the property being donated. For real property, this usually requires the inclusion of the Transfer Certificate of Title (TCT) number, the technical description (boundaries/square meters), and the location. Any "charges" or obligations the donee must satisfy should also be stated.

III. The Acceptance

This is the most common area of litigation. A donation is a bilateral contract in the sense that it requires the consent of both parties.

The donee must accept the donation.
Acceptance may be made in the same Deed of Donation or in a separate public instrument.
If the acceptance is made in a separate document, the donor must be notified thereof in an "authentic form," and this step must be noted in both instruments.

Timing is critical: The acceptance must be made during the lifetime of the donor. If the donor dies before the acceptance is properly executed and communicated, the donation is void.

3. Capacity of the Parties

Not everyone is legally permitted to give or receive property via donation.

Who can donate: Any person who has the capacity to contract and dispose of their property.
Who can receive: All those who are not specially disqualified by law. Even minors can receive donations, though acceptance must be done by their legal representatives.
Prohibited Donations:
- Donations between spouses during the marriage (except moderate gifts during family celebrations) are generally void to protect creditors and prevent undue influence.
- Donations made between persons who were guilty of adultery or concubinage at the time of the donation.
- Donations made to a public officer by reason of his office.

4. Substantive Limitations: The Rule on Legitimes

A donor cannot give away everything if they have compulsory heirs (e.g., children, spouse, or parents).

Inofficious Donations: A donation is considered "inofficious" if it exceeds the amount the donor can freely give by will.
If a donation impairs the legitime (the portion of the estate reserved by law for compulsory heirs), it may be reduced or totally revoked upon the donor's death to satisfy the heirs' shares.

5. Taxation and Registration

While the donation is valid between the parties once the deed is notarized and accepted, two more steps are required to protect the donee’s rights against the rest of the world.

The Donor’s Tax

Under the TRAIN Law (Republic Act No. 10963), the donor’s tax is a flat rate of 6% on the total value of the gifts in excess of ₱250,000 made during a calendar year. The tax must be paid within 30 days after the donation is made.

Registration with the Registry of Deeds

To bind third parties, the Deed of Donation must be registered with the Registry of Deeds where the property is located.

Pay the Donor's Tax and secure a Certificate Authorizing Registration (CAR) from the BIR.
Pay the Transfer Tax at the City or Municipal Treasurer's Office.
Submit the CAR, the Deed of Donation, and the owner's duplicate TCT to the Registry of Deeds to issue a new title in the donee's name.

6. Revocability

Generally, a donation inter vivos is irrevocable. However, the law provides specific grounds for revocation or reduction:

Birth, Appearance, or Adoption: If the donor subsequently has a child (even if posthumous), or a child thought dead reappears.
Ingratitude: If the donee commits an offense against the person, honor, or property of the donor, or if the donee refuses the donor support when they are in need.
Non-fulfillment of Conditions: If the donation was made subject to certain conditions (e.g., "build a school on this land") and the donee fails to comply.