In the Philippine legal landscape, land ownership is a frequent subject of litigation, particularly when the property involved is "untitled"—meaning it is not registered under the Torrens System (Presidential Decree No. 1529). A common method for transferring such property is through a Deed of Donation.

While a donation is a valid mode of acquiring ownership under the Civil Code, its application to untitled land involves specific legal nuances regarding the nature of the right being transferred and the formalities required for validity.

1. The Nature of Untitled Land

Untitled land refers to property that lacks a Transfer Certificate of Title (TCT) or an Original Certificate of Title (OCT). In the Philippines, most untitled lands are considered public agricultural lands over which a private individual has a claim of ownership based on open, continuous, exclusive, and notorious possession (OCEN).

When someone "owns" untitled land, they technically hold possessory rights and a "claim of ownership" rather than an absolute indefeasible title. Consequently, a Deed of Donation for untitled land transfers these possessory rights and the right to apply for original registration in the future.

2. Legal Basis: Donation as a Mode of Acquisition

Under Article 712 of the Civil Code, ownership and other real rights over property are acquired and transmitted by law, by donation, by estate and intestate succession, and in consequence of certain contracts by tradition.

For a donation of real property (titled or untitled) to be valid, it must comply strictly with Article 749 of the Civil Code:

Public Instrument: The donation must be made in a public document (notarized).
Description: The document must specify the property donated.
Acceptance: The acceptance by the donee must be made in the same deed of donation or in a separate public document.
Notification: If acceptance is in a separate document, the donor must be notified in an authentic form, and this step must be noted in both instruments.

Failure to comply with these solemnities renders the donation void ab initio (from the beginning).

3. Validity Against Third Parties

While a notarized Deed of Donation is valid between the donor and the donee, it may not automatically bind third parties or the State unless additional steps are taken.

Registration with the Register of Deeds: Under Section 113 of Presidential Decree No. 1529, any instrument affecting untitled land must be recorded in the Primary Entry Book of the Register of Deeds for the province or city where the land lies.
Tax Declarations: Since untitled land is primarily tracked through the Assessor’s Office, the donee must transfer the Tax Declaration into their name. While a Tax Declaration is not conclusive evidence of ownership, it is a "strong indicia of possession" and a basis for land tax payments, which support a claim of ownership.

4. Risks and Challenges

Transferring untitled land via donation carries inherent risks that are not present in Torrens-titled properties:

The "Mirror Doctrine" Does Not Apply: In titled lands, a buyer or donee can rely on the face of the title. In untitled lands, the donee takes the property at their own risk, inheriting any existing liens, encumbrances, or overlapping claims.
Double Sale/Donation: If a donor signs a Deed of Donation for "Person A" and later sells the same untitled land to "Person B," the rules on double sale (Article 1544, Civil Code) apply. Generally, the person who first records the transaction in the Registry of Deeds in good faith—or, in the absence thereof, the first possessor in good faith—shall be preferred.
Reversion to the State: If the land is later classified as forest land or inalienable public land, the Deed of Donation becomes moot as the property cannot be privately owned.

5. Essential Steps for a Valid Transfer

To ensure the transfer of untitled land via donation is as legally robust as possible, the following steps are typically required:

Verification: Confirm the land is "alienable and disposable" (A&D) through a certification from the DENR-CENRO.
Execution of Deed: Draft a Deed of Donation Inter Vivos containing a technical description (metes and bounds) of the property.
Notarization: Ensure both donor and donee sign in the presence of a Notary Public.
Payment of Taxes: Pay the Donor’s Tax at the Bureau of Internal Revenue (BIR) within 30 days of the donation to obtain the Certificate Authorizing Registration (CAR).
Local Government Transfer: Pay the Transfer Tax at the Treasurer’s Office.
Administrative Registration: Register the Deed under PD 1529 (Section 113) and update the Tax Declaration at the Assessor's Office.

Summary Table: Titled vs. Untitled Donation

Feature	Titled Property	Untitled Property
Evidence of Ownership	Torrens Title (OCT/TCT)	Tax Declaration / Actual Possession
Governing Law	PD 1529 (Torrens System)	Civil Code / Section 113, PD 1529
Security	High (Indefeasible)	Moderate (Prone to disputes)
Transfer Document	Notarized Deed of Donation	Notarized Deed of Donation
Required for Validity	Registration + Delivery of Title	Notarization + Possession / Recording