Mr. K asks: My father died without a will last January 2020 and left my brother and I real properties. Our mother is also deceased. My brother and I wish to sell the real properties that our mother left us. The titles are all in her name. What do we do?
Inheriting property can be a blessing, but it can also bring about a host of legal complexities, especially when it comes to selling it. If you've inherited property in the Philippines and are considering selling it, you'll need to understand the legal process involved. This guide will walk you through the necessary steps to sell inherited property in the Philippines.
Segment 1: Settlement of Estate between Heirs
The first step in transferring inherited property is reaching an agreement among all heirs on how to divide the deceased's estate. This can be accomplished through the execution of a Deed of Extrajudicial Settlement of Estate, which allows the heirs to distribute the properties among themselves without going to court. To ensure the legality of the settlement, it's advisable to engage a lawyer who can assist you in preparing the Deed of Extrajudicial Settlement of Estate. Once the deed is ready, it must be published in a newspaper of general circulation for three consecutive weeks, as required by Section 1 of Rule 74 of the Revised Rules of Court.
Segment 2: Release of Certificate Authorizing Registration
To complete the transfer of inherited properties, you will need a BIR clearance known as the Certificate Authorizing Registration (CAR). This clearance is obtained by paying the estate tax. First, you need to register your father's estate as a taxable entity by filing an Application of Registration (BIR Form 1904) with the BIR. Submit this form along with your father's death certificate, and the BIR will issue the estate's Tax Identification Number (TIN).
Next, you must fill out the estate tax return (BIR Form 1801) within one year from the date of death to avoid interests and penalties. Submit the form along with the required documents, including the Deed of Extrajudicial Settlement of Estate, certified true copies of the property titles, latest tax declarations, and any other documents requested by the BIR.
Segment 3: Sale of Inherited Property
With the CAR in hand, you can proceed with selling the inherited property. Engage the services of a lawyer to execute a Deed of Sale in favor of the buyer of the property. Finally, visit the Register of Deeds and present the following documents for the registration of the sale: the Deed of Extrajudicial Settlement of Estate, Deed of Sale, Owner's duplicate of the property title, Affidavit and Certification of Publication from the newspaper, CAR, estate tax clearance, real estate tax clearance, certified copy of tax declaration, and any other documents requested by the Register of Deeds.
Navigating the intricacies of selling inherited property in the Philippines can be challenging and time-sensitive. However, with apt guidance, the process can be streamlined. It's advisable to consult with legal professionals to facilitate a smooth transaction. At Lawyers Online PH, we connect you with the right experts to help you with the sale of inherited property or any other legal concerns you may have.
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