In the Philippine legal landscape, the settlement of an estate is rarely a linear process, particularly when the decedent leaves behind a trail of conflicting documents. A common and highly litigious scenario arises when a property is subject to a Deed of Sale executed during the decedent's lifetime, yet is also disposed of through a Last Will and Testament.
Resolving these conflicts requires an interplay of the Civil Code of the Philippines, the Rules of Court, and established jurisprudence from the Supreme Court.
I. The Nature of the Conflict: Ownership vs. Succession
To understand the resolution, one must distinguish between inter vivos transfers (during life) and mortis causa successions (at death).
- Deed of Sale: This is a contract that transfers ownership upon the perfection of the contract and the delivery of the thing sold. If valid, the property leaves the vendor's "patrimony" immediately.
- Last Will and Testament: This is a purely personal, free, and revocable act whereby a person disposes of their property to take effect after death. A will only conveys "inchoate" (incomplete) rights until the testator passes away and the will is probated.
II. The Rule of Prior Alienation
The fundamental principle in Philippine law is that a person can only transmit through succession that which they own at the time of their death.
If a decedent executed a valid, absolute Deed of Sale while alive, ownership transferred to the buyer at that moment. Consequently, when the decedent dies, that property is no longer part of their estate. Even if the decedent subsequently includes that same property in a Will, the testamentary disposition is generally void regarding that property because the testator no longer had the right to dispose of it.
Key Doctrine: If the sale is valid, the property is "excluded" from the inventory of the estate.
III. Common Points of Contention
When these two documents collide, the dispute usually centers on the validity of the instruments.
1. Simulated or Fictitious Sales
Heirs often challenge a Deed of Sale by claiming it is "simulated" (e.g., a father "selling" to one child to deprive others of their legitime). Under Article 1345 of the Civil Code:
- Absolutely simulated contracts are inexistent and void from the beginning. In this case, the property remains in the estate and the Will's provisions may prevail.
- Relatively simulated contracts (where the parties conceal their true agreement, like a donation disguised as a sale) may be binding if they do not prejudice third persons or intended law.
2. The Issue of Registration (PD 1529)
A frequent complication occurs when a Deed of Sale is executed but not registered with the Registry of Deeds, while the property remains under the decedent's name.
- Between the parties, the sale is binding.
- Regarding the estate, the unregistered buyer must prove the sale's authenticity to exclude the property from the probate proceedings.
3. Formalities of the Will
If the Deed of Sale is found invalid, the Will does not automatically take over. The Will must still undergo Mandatory Probate. In the Philippines, no will shall pass either real or personal estate unless it is proved and allowed in the proper court.
IV. Resolution Procedures
How are these conflicts settled in practice?
| Stage | Action | Legal Basis |
|---|---|---|
| Probate | The court determines the extrinsic validity of the Will (was it signed correctly? was the testator of sound mind?). | Rule 75/76, Rules of Court |
| Inventory | The executor/administrator lists the properties. The buyer under the Deed of Sale must file an opposition to exclude their property. | Rule 83, Rules of Court |
| Trial on Ownership | Generally, a probate court has limited jurisdiction and cannot decide on questions of ownership with finality. A separate "Ordinary Civil Action" for Quiet Title or Annulment of Sale is usually required. | Jurisprudence (Agtarap v. Agtarap) |
V. The Shield of Legitimes
Regardless of whether a Deed of Sale or a Will is used, Philippine law protects Compulsory Heirs (children, spouses, parents).
- Preterition: If a Will totally omits a compulsory heir in the direct line, the institution of heirs may be annulled.
- Inofficious Donations/Sales: If a "sale" was actually a donation that exceeds the "free portion" of the estate, it is considered inofficious. The heirs can demand the "reduction" of the transfer to satisfy their legitimes (the portion of the estate reserved for them by law).
VI. Summary of Priority
- Valid Deed of Sale: Prevails over a Will. The buyer owns the property; the estate does not.
- Void/Simulated Sale: The Will prevails (provided it passes probate).
- Conflict in Inventory: The probate court can make a provisional determination of ownership for inventory purposes, but the final word belongs to a regional trial court in a dedicated civil case.
In the Philippines, the integrity of the Torrens System and the strict requirements of the Civil Code ensure that while a Will expresses the decedent's final wishes, it cannot override a legal transfer of ownership that occurred while the decedent was still alive.