How to Transfer an Inherited Property Title: 4 Major Fees to Pay (House & Lot, Land, or Condominium Unit)
If you're wondering how to transfer an inherited property title, you've come to the right place. Whether inheriting a house and lot, land, or condominium unit, you should undergo essential paperwork to transfer the property title under your name. In addition, there are necessary fees you must settle to gain ownership of the property title you're inheriting. But what are the fees to transfer an inherited property title in the Philippines?
To find out, read on as we share the four (4) major fees to transfer an inherited property title. We also added a sample computation below to give you an overview of the fees, so let’s get started.
1. Estate Tax
One of the fees to transfer an inherited property title is the Estate Tax. It is 6% of the Net Estate - the accumulated price or Gross Estate Value of the deceased minus the Bureau of Internal Revenue (BIR) set deduction. For instance, the deceased total Net Estate is P10,000,000. If the Estate Tax is 6%, the fee to transfer an inherited property title worth P10,000,000 is P600,000. You can pay the Estate Tax at the BIR office where the deceased was a resident when still living.
2. Transfer Tax
Another fee when transferring an inherited property title is the Transfer Tax, which is 0.5%. So, if the deceased properties have a total value of P10,000,000, the Transfer Tax fee is P50,000. To pay the Transfer Tax fee, head to the Treasurer’s Office where the inherited property is located.
3. Registration Fee
Aside from that, a Registration Fee should be settled to successfully transfer an inherited property title. Meanwhile, the Registration Fee is not calculated by percentage. It depends on the assessed value of the property, which is system-generated. If the deceased property is worth P10,000,000, the Registration Fee is P49,386.83. Also, note that the cost of the Registration fee may vary. It may be higher or lower based on the number of titles and supporting documents.
4. Notarial Fee
The cost of the Notarial Fee varies per notary public. While it depends on where you're getting the notarization, the average Notarial Fee is 1%. If the property is valued at P10,000,000, the Notarial Fee is P100,000 at 1%. When we add it, the total fee to transfer an inherited property title worth P10,000,000 is P799,386.83.
Apart from that, insurance companies will ask for payment for cash bonds. It applies to personal properties, like stocks, cash, or cars. But since we're only talking about real estate properties, paying the stated fees above is essential to transfer an inherited property title in the Philippines, be it a house and lot, land, or condominium unit.
Overall, transferring an inherited property title is troublesome and expensive. Other issues may also arise during the process. For instance, if the deceased did not leave a will, you should legally settle everything before transferring an inherited property title.
Meanwhile, paying the associated fees and taxes is vital to ensure property ownership. But if you're unsure if you're a rightful heir, it's ideal to consult a lawyer to know your rights and learn more about the legal process of transferring an inherited property title.