Validity of Deed of Donation with Mismatched Title Holders

I. Introduction

In Philippine practice, it is very common to see a Deed of Donation where the donor indicated in the deed is not the same person as the registered owner in the title (TCT/CCT or tax declaration). Sometimes the discrepancy is minor (middle name, marital status, spelling); sometimes it is drastic (completely different person, different spouses, or an estate that has never been settled).

This article discusses, from a Philippine law perspective:

  • When such a deed is valid or void;
  • The difference between intrinsic validity and registrability;
  • Typical scenarios (co-ownership, spouses, inheritance, buyers without title, etc.);
  • Practical and procedural consequences.

This is general information only and not a substitute for consultation with a Philippine lawyer on a specific case.

II. Basic Legal Framework on Donations of Immovables

  1. Only the owner can donate. Under the Civil Code, ownership is acquired and transmitted by law, donation, succession, and other modes. Embedded in this system is the principle that one cannot transmit a right they do not have (“nemo dat quod non habet”). A donation is a mode of acquiring ownership; therefore, as a rule, the donor must be the owner of the property or at least of the interest he or she donates.

  2. Formal requirements for donation of immovable property. For real property, a donation is void if these formalities are not substantially complied with:

    • It must be in a public instrument (a notarized document);

    • The deed must describe the property donated adequately;

    • The donation must be accepted by the donee:

      • Either in the same deed, or
      • In a separate public instrument, notified in authentic form to the donor. Failure in these formalities (e.g., not notarized, no acceptance) makes the donation void, regardless of the title holder issue.

  3. Registration is not required for the donation to be valid between the parties. Registration with the Registry of Deeds is not a requirement for validity of the donation as between donor and donee. However, unregistered donations do not bind third persons and are vulnerable to later transactions and claims.

  4. Title vs. ownership. In Philippine Torrens system:

    • The TCT/CCT is evidence of ownership, but it is not the source of ownership itself.
    • A person may be the “true” owner by virtue of a sale, succession, or prescription, even if the title has not yet been transferred in his or her name. This distinction is crucial when dealing with deeds of donation where the donor’s name does not match the title.

III. What Does “Mismatched Title Holders” Mean?

“Mismatched” can mean several different things, each with different legal consequences:

  1. Donor is a different person from the registered owner.

    • Example: Title in the name of “Juan Santos,” but the deed of donation lists “Maria Reyes” as donor.

  2. Donor is only one of several registered co-owners.

    • Example: Title in the names of “Juan, Pedro, and Maria, co-owners,” but only Juan signs the deed donating the entire property.

  3. Donor is a spouse, but title is in the name of the other spouse only.

    • Example: Title in the name of “Juan Santos, married to Maria Reyes,” but Juan alone donates, or Maria alone donates.

  4. Donor is heir or buyer, but title still in the name of the deceased or previous owner.

    • Example: Title in the name of the deceased parent, but child-heirs donate; or buyer donates before title transfer.

  5. Donor’s name appears different on the title due to errors.

    • Example: Title says “Juan S. Santos” while the deed says “Juan Santos y Reyes,” or maiden vs. married name, or minor spelling errors.

  6. Tax declaration holder vs. titled owner.

    • Example: Tax declaration in donor’s name, but the land is actually titled in someone else’s name.

Each scenario must be analyzed separately.

IV. Intrinsic Validity vs. Registrability

A very important distinction:

  • Intrinsic validity – whether, as a matter of substantive law, the donation is valid between the donor and the donee.
  • Registrability – whether the Registry of Deeds is justified in entering or transferring the title in favor of the donee.

A deed can be intrinsically valid but not registrable (e.g., donor is true owner by sale, but the title still reflects the seller; the donation will bind donor and donee but the ROD may refuse to register without the chain of title).

Conversely, even if the ROD mistakenly registers a void donation, registration does not cure intrinsic nullity. A void donation remains void.

V. Core Rule: Donation by a Non-Owner

As a general principle:

  • If the donor is not the owner of the property or interest donated, the donation is void insofar as it purports to transfer ownership of that property.
  • This is usually described as an inexistent or void donation, lacking a valid cause or subject matter, or contrary to law and public policy.

However, we must carefully check what “not the owner” really means in specific cases.

VI. Common Scenarios and Their Legal Consequences

1. Completely Different Person from Registered Owner, with No Proof of Ownership

Example: Title: “TCT No. 12345 – Registered owner: Juan Santos, Filipino, single.” Deed: “Deed of Donation by Maria Reyes in favor of Pedro Cruz.” No prior sale to Maria; no extrajudicial settlement; no inheritance document; nothing.

Analysis:

  • Maria appears to have no right at all over the property.
  • In the absence of any proof that she acquired ownership or even an undivided share, there is no right to donate.
  • The deed of donation is, in essence, a donation of property of another.
  • Result: Void donation as to that property. It transfers no ownership even between donor and donee; at best, it may be treated as a personal undertaking or basis for some other civil liability, but not as a valid donation of that specific land.

The fact that the ROD might mistakenly annotate or even issue a title in the donee’s name does not cure the nullity; the real owner (Juan, or his successors) can still question it.

2. Donor is Real Owner but Not Yet in the Title (Unregistered Sale, Inheritance, etc.)

Typical examples:

  • Juan bought the land from the registered owner Maria via a notarized Deed of Absolute Sale, but the TCT is still in Maria’s name. Juan later donates the land to Ana.
  • Parents died; title remains in the parents’ name, but their heir Carlos executes a donation of the specific lot to his sibling.

Key points:

  1. Ownership vs. registration. If Juan already acquired ownership by a valid sale (or as an heir via a valid settlement and adjudication), he may validly donate his acquired ownership or hereditary rights even if the title is not yet in his name.

  2. Intrinsic validity. As between Juan (donor) and Ana (donee), the donation may be intrinsically valid, assuming all formal requirements for donation are met, because Juan is actually the owner, even if the title has not caught up.

  3. Registrability and proof. The Registry of Deeds will normally require the chain of title:

    • Deed of Sale or Extrajudicial Settlement, etc., in favor of the donor; and
    • Then the Deed of Donation to the donee. Without this chain, the ROD may refuse registration.

  4. Risk to the donee. Until the donee’s title is issued, the donation is vulnerable:

    • The previous registered owner (or his successor) might sell or encumber the property to someone in good faith.
    • Conflicts could arise in double-sale scenarios or creditor claims.

So, in this scenario:

  • Donation may be valid, but must be supported by documents proving that the donor indeed acquired ownership from or through the registered owner.

3. Co-Ownership: One Co-Owner Donates the Whole Property

Example: Title: “TCT No. X – Registered owners: Juan Santos, Pedro Santos, and Maria Santos, all single, in equal co-ownership.” Deed: Juan executes a donation of the entire property in favor of his friend Ana, without Pedro and Maria’s participation.

Civil Code rule on co-ownership: Each co-owner may dispose of his/her undivided interest (ideal share), but not the shares of the others.

Consequences:

  • The donation is valid only to the extent of Juan’s undivided share (e.g., 1/3), assuming the donation’s other requirements are met.

  • As to the interests of Pedro and Maria, the donation is ineffective/void.

  • Practically:

    • The donation makes Ana a co-owner, stepping into Juan’s shoes for his share.
    • She cannot exclude or eject the other co-owners based solely on the donation.

  • For registration, the ROD may:

    • Annotate the donation on the existing title (indicating transfer of Juan’s undivided share to Ana), or
    • If doing a new title, reflect the co-ownership among Pedro, Maria, and Ana.

If Juan purports to donate 100% and the deed is worded this way, courts tend to uphold it only as to the donor’s share and treat the excess as void.

4. Conjugal / Absolute Community Property: One Spouse Donates Without the Other’s Consent

Example:

  • Title: “TCT No. Y – Registered owner: Juan Santos, married to Maria Reyes.”
  • Date of marriage: after the effectivity of the Family Code.
  • Property acquired during the marriage → presumed absolute community (or conjugal partnership depending on circumstances/period).
  • Deed: Juan alone donates the land to his sibling, without Maria’s consent.

Family law rules:

  • Under the Family Code:

    • Disposition or encumbrance of community (or conjugal) property generally requires the consent of both spouses.
    • If one spouse disposes of real property without the other’s consent, the disposition is void (not merely voidable), subject to certain protections for buyers in good faith in some contexts.

So:

  • Even if Juan is the only one named on the title, if the property is in fact part of the absolute community or conjugal partnership, a donation without Maria’s consent is generally void as to the community/conjugal property.
  • It may still be valid if the property is shown to be exclusively owned by Juan (e.g., acquired before marriage or by gratuitous title with exclusion from community), but the presumption favors community property unless rebutted.

Conclusion for this scenario:

  • The donation is suspect and frequently void if one spouse alone donates community or conjugal property without the other’s consent, even if the title is in his/her name alone.

5. Heirs Donating Before Transfer of Title from the Decedent

Scenario: Title remains in the name of the deceased parent, but one or more heirs execute a Deed of Donation of:

  • Either a specific lot, or
  • Their hereditary rights in the estate, to another person.

Key distinctions:

  1. Donation of specific property before partition. Before the estate is partitioned, the heirs generally have undivided shares in the entire estate, not yet in specific properties. A donation of a specific property, as if the heir alone owned it, is legally problematic:

    • It may be treated as a disposition of a determinate thing that the donor does not yet exclusively own.
    • It can be ineffective or void beyond the donor’s share.

  2. Donation or assignment of hereditary rights. Filipino law recognizes that hereditary rights can be ceded or assigned. An heir can donate or assign:

    • His undivided hereditary share in the estate, even before partition.
    • This donation does not necessarily require that the title be in his name already, but it transfers only whatever rights he has as heir, subject to settlement of estate obligations.

Thus, a deed might be re-characterized:

  • On paper: “Donation of Lot 1, TCT No. 9999.”
  • In law: effectively only a donation of the donor’s hereditary rights in that lot, to the extent they exist.

Registrability will again depend on the complete chain of estate documents (death certificate, settlement, partition, tax clearances, etc.).

6. Erroneous Names, Spelling, and Marital Status on Title vs. Deed

Examples:

  • Title: “Juan S. Santos, single.” Deed: “Juan Santos y Reyes, married to Maria Reyes.”
  • Title: “Jose R. Cruz.” Deed: “Joseph Cruz.”

If the mismatch is merely clerical and both clearly refer to the same natural person, then:

  • The donation is not void simply because of the difference in how the name appears.

  • What matters is the identity of the person, established by:

    • Residence and address,
    • Tax records,
    • Identity documents,
    • Continuity of transactions, etc.

In practice:

  • The ROD may require a sworn affidavit of identity, or even a petition for correction of title entries, to avoid confusion and risk of double titling.
  • But intrinsically, if Juan is indeed the same person, the mismatched naming does not invalidate the donation itself.

7. Tax Declaration Holder vs. Registered Owner

Sometimes the donor’s name appears in the tax declaration, while another name remains on the TCT (or sometimes no title exists, only tax declarations).

  • If the property is already titled, the title prevails over tax declarations.
  • A tax declaration is not proof of ownership by itself; it is only some evidence of possession and a basis for real property tax assessment.

Thus:

  • A donation by a tax declaration holder who is not the true owner (and not shown to have acquired ownership) is generally void as a donation of someone else’s property.

  • Where there is no existing Torrens title, and the land is of the kind still typically supported by tax declarations and possession, the question becomes more factual:

    • Who is the actual owner?
    • Has there been acquisitive prescription? In such situations, the mismatch is less about formal title and more about proving actual ownership.

VII. Effect on Transfer, Registration, and Third Persons

  1. Registry of Deeds’ role. The ROD examines documents for registrability:

    • If the donor is not the registered owner and there is no evident chain of title, the ROD may refuse registration.
    • If there is a complete chain (sale, settlement, etc.), it may proceed.

  2. Registration does not cure intrinsic nullity. If the donation is void (e.g., donor clearly not owner, no right at all), even if the ROD registers and issues a new title to the donee:

    • The real owner can often still file an action to nullify the donation and cancel the title.
    • The principle that a derivative title cannot rise higher than its source applies.

  3. Effect on third persons.

    • A valid, registered donation generally enjoys the protection of the Torrens system and is binding on third persons, subject to specific exceptions (e.g., fraud).

    • An unregistered but valid donation:

      • Is binding between donor and donee;
      • But may lose out to subsequent purchasers or encumbrancers in good faith who rely on the title.

VIII. Tax and Administrative Considerations (Brief Overview)

Even though the focus here is on validity, in practice a mismatched title holder also creates practical issues:

  1. Donor’s Tax and Capital Gains / Documentary Stamp Taxes.

    • The BIR may question how the donor can donate a property that he/she does not appear to own.
    • Additional documentation may be required to show that the donor actually holds the property or rights being donated.

  2. Local transfer tax and real property tax.

    • The local treasurer or assessor may also require proof of ownership before allowing transfer of tax declarations or issuing tax clearances.

These issues do not by themselves decide legal validity, but they often block the implementation of the donation (no tax clearances → no registration).

IX. Curative Measures and Remedies

If there is already a deed of donation with mismatched title holders, several remedial steps are possible, depending on the situation:

  1. Execute missing prior instruments.

    • If the donor is actually the buyer or heir, but the chain of title is incomplete:

      • Execute the necessary Deed of Sale, Extrajudicial Settlement, Partition, or Adjudication;
      • Then file the deed of donation, or a confirmatory donation if needed.

  2. Confirmatory or corrective deeds.

    • The true registered owner (or all co-owners/spouses) can execute a confirmatory deed acknowledging the donation and curing defects in authority.
    • This may convert a void or ineffective donation into a new, valid donation, provided that the parties still consent and the law allows it.

  3. Petitions for correction of title.

    • Where the mismatch is about name, civil status, or clerical errors, a petition may be filed to correct the title, then proceed with the donation or its registration.

  4. Judicial actions.

    • Action to declare nullity of the donation or subsequent titles, if one party claims the donation is void.
    • Quieting of title or reconveyance actions to settle conflicting claims.

X. Practical Tips for Drafting and Due Diligence

For practitioners, buyers, or donees, key precautions include:

  1. Always verify the title.

    • Obtain a certified true copy of the latest TCT/CCT.
    • Confirm that the donor and the registered owner are the same person or that there is a clear chain of title.

  2. Identify the nature of the property regime.

    • If the donor is married, determine whether the land is exclusive or part of the community/conjugal property.
    • If community/conjugal, ensure both spouses sign the donation.

  3. Check for co-ownership.

    • If there are multiple registered owners, ensure that:

      • Either all co-owners sign; or
      • The donation is limited to the donating co-owner’s ideal share.

  4. For inherited property, examine estate documents.

    • Check if there is:

      • A will or extrajudicial settlement;
      • A court-approved partition, if there was judicial settlement.

    • If none, consider doing estate settlement first.

  5. Address identity discrepancies early.

    • If names differ between title and deed, prepare:

      • Affidavits of identity;
      • Supporting documents; or
      • A petition to correct the title, as necessary.

  6. Ensure all formal requisites for donation are strictly followed.

    • Public instrument;
    • Clear description of the property;
    • Proper acceptance in a public instrument and notification where required.

XI. Summary

A Deed of Donation with mismatched title holders is not automatically void, but it is always a red flag that requires careful analysis.

In the Philippine context:

  • If the donor genuinely owns the property or rights (even if not yet on the title) and the legal and formal requirements of donation are met, the donation can be intrinsically valid, though there may be registration hurdles.
  • If the donor is not the owner at all and has no right over the property, the donation is generally void as a donation of property of another.
  • Co-ownership, conjugal/community property, inheritance, and identity issues all create specific wrinkles that may limit the donation’s effect or render it void in part or in whole.

Given how fact-sensitive these issues are, anyone involved in such a donation should conduct thorough documentary due diligence and seek personalized legal advice from a Philippine lawyer before relying on a deed where the title holder and the donor do not match.

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

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