Selling Undivided Inherited Land: Can You Execute a Deed of Sale if the Owner Is Deceased?

Selling a piece of property in the Philippines is straightforward when the owner is alive. However, once the registered owner passes away, the property enters a state of "undivided inheritance" among the heirs. A common question arises: Can you execute a Deed of Sale if the owner is already deceased?

The short answer is no, you cannot execute a deed of sale in the name of a dead person. However, you can still sell the property through a specific legal process.


1. The Legal Reality: Death Extinguishes Agency

Under Philippine law, the "personality" of a person ends at the moment of death. Since a Deed of Absolute Sale is a contract, it requires the consent of the seller. A deceased person cannot give consent, nor can they sign a document.

  • Forging a signature of a deceased person on a Deed of Sale is falsification of a public document, which is a criminal offense.
  • Post-dated Sales: Even if a deed was drafted before death but signed/notarized after, it is generally void or voidable because the authority to transfer title technically passed to the heirs the moment the owner died (Article 777, Civil Code).

2. The Solution: Settlement of Estate

Before any sale can be legally recognized by the Register of Deeds, the property must first transition from the deceased owner to the heirs. This is done through the Settlement of the Estate.

A. Extrajudicial Settlement (EJS)

If the deceased left no will and no debts, and all heirs are in agreement, they can execute an Extrajudicial Settlement of Estate.

  • The heirs sign a public instrument (the EJS) stating they are the sole heirs.
  • They can include a "Deed of Sale" clause within the same document. This is often called an Extrajudicial Settlement with Absolute Sale.
  • In this scenario, the heirs are the ones selling their "successional rights" to the buyer.

B. Judicial Settlement

If the heirs cannot agree on how to split the property, or if there is a complex will, the settlement must go through the courts. This is a longer, more expensive process.


3. The Concept of "Undivided Shares"

Until the property is physically partitioned (divided into specific lots), it is considered co-owned by all heirs.

  • Can one heir sell their share? Yes. An heir can sell their ideal or pro-indiviso share of the inheritance even before the land is partitioned.
  • Limitation: The buyer does not get a specific corner of the land; they simply step into the shoes of the heir as a co-owner of the whole.
  • Right of Redemption: If one heir sells their share to a stranger, the other co-heirs have the legal right to "redeem" (buy back) that share within 30 days of being notified in writing.

4. Required Taxes and Documents

Selling inherited land is more expensive than a standard sale because you must settle the Estate Tax before the title can be transferred.

Necessary Paperwork:

  1. Death Certificate of the registered owner.
  2. Birth Certificates of the heirs (to prove relationship).
  3. Notice of Death (filed with the BIR).
  4. Proof of Payment of Estate Tax: The BIR must issue a Certificate Authorizing Registration (CAR).
  5. Affidavit of Publication: An EJS must be published in a newspaper of general circulation once a week for three consecutive weeks.

5. Summary of the Process

If you are a buyer looking at "deceased-owner" land, or an heir wanting to sell, follow these steps:

  1. Verify the Heirs: Ensure all legitimate heirs are part of the transaction. If one is left out, the sale could be contested later.
  2. Execute the EJS with Sale: Instead of a simple Deed of Sale, use a document where the heirs settle the estate and simultaneously sell it to the buyer.
  3. Pay the Taxes: Settle the Estate Tax (and potentially Capital Gains Tax) at the BIR.
  4. Register the Sale: Submit the EJS, the CAR, and the old Title to the Register of Deeds to get a new title in the buyer’s name.

The Bottom Line

You cannot sell "for" a dead person. You must settle the estate first so that the heirs become the legal sellers. Proceeding without settling the estate leads to "clouded" titles that are nearly impossible to insure or use as collateral for bank loans.


Would you like me to draft a checklist of the specific BIR requirements for paying Estate Taxes under the current TRAIN Law rules?

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