Transferring Inherited Property Title in the Philippines: Extrajudicial Settlement of Estate
Most of the time, Filipinos who have inherited land or house from the deceased have trouble transferring a property title in the Philippines. In most cases, the deceased individual didn't make a Last Will and Testament, which serve as proof of inheritance to the property’s rightful heirs.
For example, your deceased parents left you and your siblings with real property. If both parents are dead, conjugal properties will be inherited by the legitimate child, given a Last Will doesn't exist. But how do you transfer a property title inherited from a deceased relative or individual?
Read on as we share the 5 steps to transfer property title inherited from the deceased, assuming there’s no Last Will.
5 Steps To Transfer Property Title Inherited from Deceased
1. Get the CAR from BIR
The first step to transfer a property title inherited from a deceased person is to secure a Certificate of Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR). But before getting the CAR, you should pay the Estate Tax at the BIR office where the deceased was a legal resident.
For instance, you have inherited a property in Baguio City from a deceased relative who was a resident of Quezon City. In this case, the Estate Tax should be paid at the BIR office in Quezon City, where the deceased resided when still alive.
2. Visit a Publication Company
The second step is to visit a publication company. It can be a newspaper company, such as SunStar and Philippine Star. Once you’ve chosen a publication company, you should bring the Deed of Extrajudicial Settlement of Estate to their office.
If first time inheriting a property, you may wonder what a publication company has to do with this process. You should visit a publication Company since the Deed of Extrajudicial Settlement of Estate should be published within three (3) consecutive weeks.
You should publish the Deed of Extrajudicial Settlement of Estate once every week in the city and province. It's an essential process since it's a way to inform those interested in the deceased property. Also, you should secure the Affidavit and Certificate of Publication as you have to submit these documents to BIR.
3. Go to the Treasurer’s Office
Next, visit the Treasurer's Office to pay the Transfer Tax Fee. Then, obtain the Tax Clearance, which you should present to the Registry of Deeds.
4. Head to the Registry of Deeds
Before visiting the Registry of Deeds, complete the requirements from the BIR, Publication Company, Treasurer’s Office, and the original documents, including the property title of the deceased.
However, you should pay bonds to the insurance company if the deceased gives you an inheritance, aside from real estate property, such as cash, bonds, or cars. Remember, don’t skip this process since the Registry of Deeds will also request the necessary documents.
Once you've submitted the requirements to the Registry of Deeds, wait for the issuance of the property title named after the heirs.
5. Go to the Assessor's Office
For the 5th and final step, go to the Assessor's Office and request the Tax Declaration name to be changed from the deceased to the heirs. You have successfully transferred an inherited property title to the deceased property owner to their rightful heirs.
Meanwhile, this step only applies if the deceased doesn't have a Last Will and Testament. This process is also applicable if there are many heirs and they are not arguing about the property.