Transfer Certificate of Title (TCT) and the Inclusion of Multiple Heirs

Philippine Legal Overview and Step-by-Step Guide (2025)

This article is for general information only and is not a substitute for individualized legal advice.

1. Key Concepts and Governing Laws

Concept	Core Legal Bases
Succession (intestate & testate)	Civil Code of the Philippines (Book III, Arts. 774-1103), Family Code, special laws on legitimes
Registration of Land	Presidential Decree 1529 (Property Registration Decree), Land Registration Act No. 496 (historical), relevant circulars of the Land Registration Authority (LRA)
Estate Tax & Clearance	National Internal Revenue Code (NIRC) as amended by R.A. 10963 (TRAIN) – 6 % flat estate tax; BIR Revenue Regulations 12-2018 et seq.
Extrajudicial Settlement	Rule 74, Rules of Court; Civil Code Arts. 1083-1101; B.P. 129 (for summary settlement in first-level courts)
Notarial & Registration Fees	Doc.-stamp tax (Sec. 196, NIRC); Local Government Unit (LGU) transfer tax (usually ≤ 0.75 %); Registry fees (PD 1529 Schedule)

2. Who May Be Included as Heirs on a TCT?

Compulsory heirs – spouse, legitimate and illegitimate children, ascendants (Civil Code Arts. 887-899).
Voluntary heirs/legatees/devisees – if a valid will exists.
Heirs by right of representation – grandchildren, nephews/nieces, etc., when their parent predeceases the decedent (Art. 970).
Heirs with disqualifications removed by law – e.g., after legitimation or legitimation by subsequent marriage.

Tip: The Register of Deeds (RD) requires every heir listed on the Deed of Settlement or Partition to present a Taxpayer Identification Number (TIN) and valid IDs—even minors, through their judicial or testamentary guardian.

3. Modes of Transferring Title to Multiple Heirs

Mode	When Appropriate	Core Document	Court Involvement
Extrajudicial Settlement (EJS)	Decedent left no will and estate has no unpaid debt (or debts are fully settled); heirs are at least 18 yrs (or represented)	Deed of EJS (with or without Partition)	Not required, but must be published in a newspaper of general circulation once a week for 3 consecutive weeks (Rule 74 §1)
Judicial Settlement (Probate/Intestate)	There is a will; heirs dispute shares; estate has substantial obligations; presence of minors with adverse interests	Court-approved project of partition	Required (RTC/Family Court)
Affidavit of Self-Adjudication	Only one heir (not applicable to multiple heirs)	Affidavit	No court unless contested

Partition vs. Co-ownership

Co-ownership: One TCT issued naming all heirs as co-owners (e.g., “Juan, Maria, Pedro, and Ana, all of legal age, Filipinos, married, etc.”) with undivided shares.
Partition: Estate is subdivided, and separate TCTs are issued per heir or per group of heirs after an approved subdivision plan (Lot …-A, Lot …-B, etc.).

4. Documentary Requirements (Typical Checklist)

Certified true copy of the Owner’s TCT/OCT
Original Death Certificate (PSA-authenticated)
Deed of Extrajudicial Settlement / Court-approved Partition (notarized)
Proof of Publication (3 weeks, newspaper affidavit & clippings)
BIR Form 1801 – Estate Tax Return & Payment Receipt
Certificate Authorizing Registration (CAR) issued by the BIR
Tax Clearance for Real Property Taxes (LGU)
TIN IDs of all heirs; Marriage Certificates/Birth Certificates as proof of filiation
Plan & Technical Description (if partition requires subdivision survey) duly approved by the DENR-LMB/LMS
Special Power of Attorney (SPA) if any heir is represented
Court order (if judicial settlement) or Letters of Guardianship (if minors)
Notarial/Transfer & Registration Fees payment slips

Always verify with the local RD and BIR Revenue District Office, as they may add site-specific documentary requirements or checklists.

5. Step-by-Step Process for Multiple-Heir Transfer

Stage	Responsible Office	Key Actions
A. Settlement Stage	Heirs & Counsel	Draft, notarize, and—if EJS—publish Deed; secure SPA/guardianship papers
B. BIR Stage	BIR RDO where property is located	File Estate Tax Return within 1 year from death (extendible); pay 6 % of net estate; BIR inspects documents and issues CAR with electronic Documentary Stamp (eDST)
C. LGU Stage	City/Municipal Treasurer	Pay transfer tax (within 60 days of execution/filing); secure tax clearance
D. Registry of Deeds Stage	Register of Deeds (LRA)	Present CAR + original docs. RD annotates the existing TCT or cancels it and issues new TCT(s) in heirs’ names; original duplicate owners’ copy released after fees
E. Assessor’s Office	City/Municipal Assessor	Update Tax Declaration names & lot numbers; secure new tax declarations per subdivided lot if applicable

Processing timelines vary but a well-prepared EJS case can finish in 2-4 months outside Metro Manila (longer if survey/subdivision is required).

6. Tax & Fee Computation Highlights (2025)

Estate Tax: 6 % × net estate (Gross less standard deduction ₱5 M + actual funeral/medical expenses up to set caps + family home value up to ₱10 M + debts/mortgages).
DST on EJS/Partition: ₱15 per every ₱1,000 of market value when partition assigns specific portions; waived if title remains co-owned.
Transfer Tax (LGU): Up to 0.75 % of zonal or fair market value, whichever is higher.
Registration Fee (RD): About 0.25 % of value + ₱30 entry fee (see PD 1529 schedule).
Publication Cost: ₱3,000–₱8,000 (varies by locality and newspaper).

7. Special Issues & Practical Notes

Minors or Incapacitated Heirs
- Need court-appointed guardian; court approval of settlement is mandatory to protect their legitime.
Foreign-resident Heirs
- Execute Consularized SPA (or Apostille) for signing and tax filing.
Spouses Under the Absolute Community (Family Code)
- The share inherited remains exclusive property, but subsequent improvements may fall into community property.
Unsatisfied Debts
- Creditors may petition within 2 years from registration to recover debts (Rule 74 §4).
Selling Before Partition
- Co-owners may sell only their undivided share without consent of others. Full conveyance of specific lots requires prior partition.
Prescription & Penalties
- Estate tax must be paid within 1 year. Late payment incurs 25 % surcharge + 12 % annual interest (Sec. 248-249, NIRC).
Lost Owner’s Duplicate Title
- File Petition for Re-issuance under Sec. 109, PD 1529 before transfer; processing can take 6–12 months.

8. Sample Annotation (Co-ownership)

“This Transfer Certificate of Title is issued in the names of JUAN DELA CRUZ, of legal age, Filipino, married to MARIA SANTOS; PEDRO DELA CRUZ, of legal age, Filipino, single; and ANA DELA CRUZ, minor, represented by her mother and legal guardian MARIA SANTOS, all Filipinos, as co-owners in undivided equal shares.”

9. Compliance Checklist Before Deed Signing

☐ Death certificate verified
☐ All heirs identified & located
☐ Estate inventory drafted and values agreed (seek licensed appraiser if needed)
☐ Debts settled or waived by creditors
☐ Draft EJS reviewed by counsel
☐ Guardianship paperwork prepared (if minors)
☐ TINs secured for each heir
☐ Draft CAR requirements complete

10. Frequently Asked Questions

FAQ	Quick Answer
Can we keep the title in the decedent’s name?	Legally possible but risky—heirs cannot validly mortgage/sell or subdivide; estate remains liable for unpaid taxes.
Must all heirs be physically present?	No. They may execute SPAs, provided signatures are properly notarized or consularized.
Do we need a lawyer?	Not mandatory for EJS, but strongly advised to avoid later nullity; required for court proceedings.
Can heirs choose to issue separate TCTs later?	Yes. Start with co-ownership then, upon agreement, file a Deed of Partition and subdivision plan to split TCTs.

11. Practical Timeline (Illustrative)

Week 1-4: Gather docs, prepare & notarize Deed, pay publication.
Week 5-6: Run 3 weeks of publication, collate proofs.
Week 7-8: File estate tax return, pay, secure CAR.
Week 9-10: Pay LGU transfer tax, get tax clearances.
Week 11-12: Register with RD; new TCT(s) released.
Week 13+: Update tax declarations; distribute owners’ copies.

Delays stem largely from missing TINs, incomplete debt clearance, or survey issues.

12. Conclusion

Transferring real property to multiple heirs in the Philippines blends succession law, tax compliance, and land-registration procedure. The essence is to (1) settle the estate properly—extrajudicially or through the courts—then (2) clear all taxes, and finally (3) register the heirs’ ownership with the Register of Deeds. Diligent preparation of documentary requirements, timely tax filing, and adherence to publication and guardianship rules ensure a smooth issuance of a new Transfer Certificate of Title that accurately reflects the rightful co-owners or individual owners.

For estates with unique complications—foreign heirs, minors, disputed partitions—obtaining professional guidance from a Philippine lawyer or estate-planning specialist is highly recommended to safeguard both the heirs’ rights and the property’s marketability.

(Current as of 1 June 2025 – legislation and administrative issuances may change; always verify the latest regulations.)