#NotOnMyWatch: How to transfer ownership of inherited land

#NotOnMyWatch: How to transfer ownership of inherited land

The process for transferring ownership of inherited land is confusing, a netizen reports. Their application has been pending for almost two years.

MANILA, Philippines – Have you ever experienced difficulties in transferring ownership of inherited land?

Extrajudicial settlement

• That the deceased owner has left no will.
• That the deceased owner has left no debt.
• The name and relationship of the heirs to the deceased. The heirs should be of legal age. Minors should be legally represented.
• A brief description of the properties which will be divided among the parties.
• Posting of a bond fixed by the court if there is personal property included.

• Step 1: Fill out BIR Form 1904 (Application for Registration). In filling out the form, note that all parties should have a valid Tax Identification Number (TIN), even the deceased. Some things to note:
  • On the space provided for the taxpayer’s name, the name of the deceased should be written.
  • The local address of the deceased should be the same as indicated on his or her death certificate.
  • If the person died abroad and has no official residence in the Philippines, fill out the foreign address as indicated on the death certificate.
  • Attach a photocopy of the Certified True Copy of the death certificate
• Step 2: Prepare mandatory documents to be submitted to the BIR. The BIR should give a checklist of the documentary requirements to the applicant. Among the mandatory requirements are:
  • TIN of Estate
  • Photocopy of the death certificate, subject to the presentation of the original
  • Official Receipt/Deposit Slip and duly validated return as proof of payment
  • Any of the following:
  • Affidavit of Self Adjudication
  • Deed of Extrajudicial Settlement of the Estate (if the estate had been settled extrajudicially)
  • Court Order (if settled judicially)
  • Sworn declaration of all properties of the estate
• Step 3: Prepare BIR Form 1801 (Estate Tax Return). The Officer of the Day at the BIR should assist in filling out the form as they will be the one computing the taxes based on the documents submitted.
• Step 4: Pay the computed estate tax. According to Revenue Memorandum Order (RMO) No. 15-2003, it can be paid at:
  • An authorized agent bank (AAB) by the BIR;
  • To the Revenue Collection Officer;
  • To a duly authorized Treasurer of the city or municipality in the Revenue District Office where the residence of the deceased at the time of death is located;
  • If the person died abroad and cannot be represented in the Philippines, the estate tax can be settled through an AAB under RDO No. 39 South Quezon City
• Step 5: Submit all documentary requirements and proof of payment to the RDO. Once all requirements have been submitted, a claim stub with a reference number will be given. A Certificate Authorizing Registration document will be released once the processing is done.
• Step 6: Release of Certificate of Authorizing Registration (CAR). According to RMO No. 15-2003, CARs should be released for all one-time transactions within 5 days from the date of receipt of tax returns with complete documentary requirements.

Registering the land

• Deed of Extrajudicial Settlement of Estate
• Deed of Sale (if the property has been sold to a third party)
• Supporting Documents:
• BIR CAR/tax clearance certificate
• Owner’s Duplicate Copy of Title
• Realty Tax Clearance
• Tax Declaration (Certified Copy)
• Transfer Tax Receipt/Clearance
• Affidavit of Publication of Settlement

• The titled property is not on the database;
• There are multiple titles in one transaction;
• Multiple transactions;
• There are technical problems in the system;
• Transactions with incomplete documents;
• Other conditions beyond the control of the Registry.