TRANSFER OF REAL PROPERTY TITLE FROM DECEASED OWNERS IN THE PHILIPPINES A Comprehensive Legal Guide (updated to July 2025)

1. Overview

When a registered owner of Philippine real property dies, legal title does not pass automatically to the heirs. Ownership first vests in the estate of the decedent; title can only be transferred after proper settlement of the estate and payment (or valid condonation) of estate tax. Failing to do so bars registration in the Registry of Deeds (RoD) and may expose heirs to surcharges, interest, and even criminal liability for tax evasion.

2. Sources of Law & Key Regulations

Subject	Authority	Highlights
Succession & co-ownership	Civil Code, Arts. 774-1106; 1620-1623	Defines heirs, legitimes, collation, partition, right of redemption
Estate settlement (judicial)	Rules of Court, Rules 73-90	Probate of wills, letters testamentary/administration, claims period, liquidation, partition
Estate settlement (extrajudicial)	Rule 74; Sec. 1, Act No. 3815 (Revised Penal Code)	Allows EJS if no will or will already probated, no outstanding debts; penalizes omission of creditors
Land registration	PD 1529; RA 11573 (2021) on summary original registration; RA 6732 on administrative reconstitution	Governs Torrens titles, annotation, reconstitution
Estate tax	NIRC 1997, Title III as amended by TRAIN (RA 10963, 2017)	Flat 6 % on net estate; due within 1 year from death with optional 2×6-month extensions
Estate Tax Amnesty (now expired)	RA 11213 (2019) & RA 11956 (2023)	Amnesty period ended 14 June 2025; unpaid estates thereafter subject to regular rates, interest, surcharge
Documentary stamp tax & fees	NIRC Secs. 196, 200; RoD schedule of fees (DOJ)	DST on conveyances; registration, entry, issuance, annotation fees
Special property regimes	Condominium Act (RA 4726), Indigenous Peoples’ Rights Act (RA 8371), CARP (RA 6657), Agrarian Free Patent (RA 11573)	May impose additional clearances (HLURB/DHSUD, NCIP, DAR)

3. Which Mode of Settlement Applies?

Scenario	Typical Path	Notes
Testate (with a valid will)	Judicial probate (mandatory) before RTC (Branch of Special Jurisdiction)	Probate validates the will; executor administers estate
Intestate OR will already probated and no debts	Extrajudicial Settlement (EJS) under Rule 74	All heirs (of legal age or through guardians) execute public instrument
Intestate with outstanding debts, or disputes among heirs, or a minor lacks guardian	Regular (judicial) intestate proceedings	Court appoints administrator; liquidation, partition
Small estate ≤ ₱10 M & uncomplicated	Summary settlement under RA 11573/Rule 74 (common in rural properties)	Still file with RoD + BIR; publication required

Heirs may always opt for judicial settlement for certainty—even if EJS is allowed.

4. Step-by-Step Process (Extrajudicial Route, the most common)

Gather core documents
- Certified true copy of Transfer/Original Certificate of Title (TCT/OCT)
- Certified true copies of the decedent’s death certificate & marriage certificate
- Birth certificates of heirs (for filiation)
- Latest tax declaration (municipal assessor) and real-property tax clearance
- Barangay clearance re: no land dispute (some LGUs)
Secure tax valuation
- Get BIR zonal/assessor’s FMV (higher value prevails).
- Identify deductions (funeral costs up to ₱200 k, medical expenses within 1 year prior death up to ₱500 k, standard deduction ₱5 M, family home up to ₱10 M, etc.).
Compute & pay Estate Tax (BIR Form 1801)
- Rate: 6 % of net estate (TRAIN).
- Deadline: Within 1 year from death; extensions require BIR approval; interest = 20 % p.a. + 25 % surcharge.
- Amnesty reference: If death occurred on or before 31 Dec 2021 and payment made by 14 June 2025, heirs could have used amnesty (now lapsed).
File for Certificate Authorizing Registration (CAR)
- Submit estate tax return, proof of payment (or amnesty), EJS deed, IDs, the title, updated RPT receipts.
- BIR processes & tags the title “CAR issued”; release in 2-8 weeks.
Execute & notarize Deed of Extrajudicial Settlement (with or without sale)
- Must recite: heirs, description of properties, shares.
- Must be published once a week for 3 consecutive weeks in a newspaper of general circulation.
- If with simultaneous sale (“… and Sale”), also pay DST (1.5 % of consideration/FMV), plus Capital Gains Tax (CGT) 6 % if property is sold to third party (not among co-heirs). In a pure settlement (no sale), no CGT.
Posting of Bond (optional but recommended if minor heirs or potential creditors).
Register with Registry of Deeds
- Present CAR, EJS deed, original owner’s duplicate title, RPT clearances, DST, transfer tax receipts (provincial/city treasurer), and RoD fees.
- RoD cancels old title and issues:
  - One new title per heir (if partitioned), or
  - Single title in co-ownership with annotations.
- Annotation of EJS and CAR appears on title’s Memorandum page.
Update Tax Declaration & Real-Property Tax account
- Submit new title + RoD affidavit to Municipal Assessor & Treasurer for new TD under heirs’ names.
Special Clearances (case-to-case)
- DAR Clearance if agricultural land > 5 hectares.
- DHSUD/Condo Corp certificate for condominium units.
- NCIP Certification if property overlaps ancestral domain.

5. Judicial Settlement Highlights

Phase	Timeframe (typical)	Key Actions
Petition & publication	2-3 months	RTC issues order; require publication & posting
Issuance of Letters Testamentary/Administration	│	Executor/administrator posts bond, prepares inventory
Claims period	6-12 months	Creditors file claims; estate pays debts & taxes
Project of Partition	│	Court approval after hearing; adjudication to heirs
Order for distribution & writ of possession	│	RoD registers partition & issues new titles

Judicial settlement tolls the estate-tax filing period during probate only if administrator secures a BIR payment extension. Otherwise, estate tax remains due.

6. Unregistered Land & Other Edge Cases

Unregistered property (Tax Declaration only)
- Settle estate tax & CAR (still required).
- Heirs execute EJS + “Adjudication of Unregistered Land” (Sec. 4, Rule 74).
- File Original Registration (Land Registration Act/PD 1529) or Free Patent if agricultural and qualified.
Lost / burnt title
- Initiate Administrative reconstitution (RA 6732) or Judicial reconstitution; must finish before estate transfer.
Heirs abroad
- Consularized Special Power of Attorney (SPA) designating attorney-in-fact to sign EJS and tax forms.
Minor or incapacitated heir
- Court-appointed guardian must act; SPC required for EJS; otherwise estate must go through judicial settlement.

7. Tax & Fee Quick-Reference (2025)

Item	Rate	Base	Usual Collector
Estate Tax	6 %	Net estate (after deductions)	BIR
Transfer Tax	0.5 %-0.75 %	FMV / consideration	Provincial / City Treasurer
Documentary Stamp Tax	₱15/₱20 per ₱1,000	Consideration / FMV (deed)	BIR
Registration Fee	≈ 0.25 % (variable table)	Assessed value	RoD
Annotation Fee	₱50-₱500 per entry	per document	RoD
Publication	₱3,000-₱8,000 average	Newspaper ads	Private publisher
Notarial Fee	₱500-₱2,000	Per deed	Notary Public

8. Common Pitfalls & How to Avoid Them

Ignoring outstanding debts. An EJS executed despite unpaid creditors is voidable; creditors can petition annulment within 2 years from discovery.
Late estate-tax filing. BIR imposes 20 % annual interest + 25 % surcharge; CAR will not be issued without full settlement.
Unpublished EJS. RoD may still register, but the deed remains vulnerable to third-party challenge; advertise promptly.
Partial estate tax payment. CAR is asset-specific; if one property’s tax unpaid, you cannot transfer any real property from that estate.
CAR expiration. CAR is valid for 1 year; renew (free) if RoD process delayed.
Missing barangay/ DAR clearances in agricultural land >5 ha—registration gets suspended.

9. Special Notes as of July 2025

Estate Tax Amnesty under RA 11213 and the 2023 extension (RA 11956) ended on 14 June 2025. Estates of persons who died on or before 31 Dec 2021 that failed to avail must now pay regular estate tax plus penalties.
Pending bills seek a second extension to 2027, but none have been enacted as of this writing.
Electronic CAR (eCAR) issuance is now nationwide; verify authenticity through the BIR eCAR validation portal before proceeding to RoD.
The One-Time Transaction Number (OTN) is mandatory when filing Form 1801 electronically; include it in all annexes.
DHSUD now requires online submission of condo-unit clearance requests; processing averages 5 working days.

10. Practical Checklist for Heirs / Counsel

☐ Confirm succession order (legitimes) and identify all heirs.
☐ Determine whether estate has debts; if any, consider judicial settlement.
☐ Gather civil registry & property docs early; secure certified true copies concurrently.
☐ Compute tentative estate tax to decide whether to liquidate assets.
☐ Set publishing schedule simultaneously with BIR filing to avoid CAR expiry overlap.
☐ Pay real-property tax up-to-date before submission—RoD will not accept arrears.
☐ Engage a licensed geodetic engineer if partition requires subdivision survey.
☐ Before sale, obtain Buyers’ bank’s statement of account to wire CGT & DST promptly (RoD requires BIR proof of actual payment).
☐ Keep a notarized Deed of Undertaking between heirs to cover latent liabilities post-transfer.

11. Conclusion

Transferring a deceased person’s real-property title in the Philippines demands strict compliance with both succession law and tax regulations. Whether heirs opt for an extrajudicial or judicial route, three themes are constant: full disclosure, timely tax payment, and faithful documentation. Meticulous attention to these requirements not only secures valuable property rights but also shields heirs from prolonged litigation, financial penalties, and possible criminal exposure.

When in doubt, consult a Philippine lawyer experienced in estate and property law; nuances such as agrarian restrictions, ancestral domain claims, or condominium bylaws can materially alter the workflow.