CIVIL LAW

IX. PROPERTY, OWNERSHIP, AND ITS MODIFICATIONS

C. Different Modes of Acquiring Ownership

3. Donation

f. Form

Under Philippine Law, donations are a mode of acquiring ownership whereby a person (the donor) voluntarily transfers ownership of a thing or right to another person (the donee) without any consideration or for less than adequate consideration. The form of donations is meticulously governed by the Civil Code of the Philippines, particularly under Articles 748 to 750 for formal requirements and related provisions under property and succession laws.

1. General Rule on the Form of Donations

The form of a donation depends on the nature of the property donated and the value of the donation. The Civil Code establishes clear guidelines for formality to ensure enforceability and protect against fraud or undue influence.

A. Donation of Movable Property

Applicable Law: Article 748, Civil Code of the Philippines.
Form Requirements:
1. Oral Donation: Allowed only if the value of the donated movable property is 5,000 pesos or less.
  - Must be accompanied by simultaneous delivery of the thing or document representing the right.
2. Written Donation: Required if the value exceeds 5,000 pesos.
  - Must comply with general principles of contracts: consent, object, and cause.
3. Delivery: Regardless of the value, actual or constructive delivery is essential for the validity of the donation. Without delivery, ownership is not transferred.

B. Donation of Immovable Property

Applicable Law: Article 749, Civil Code of the Philippines.
Form Requirements:
1. Public Instrument: The donation must be made in a public document (notarized deed of donation).
  - The public instrument must contain a clear description of the property being donated to identify it with certainty.
2. Acceptance:
  - The donee’s acceptance must also be in the same public instrument or in a separate public instrument.
  - If the acceptance is in a separate instrument, the donor must be notified in an authentic manner (e.g., written acknowledgment, registered mail).
3. Registration:
  - For real property, the deed of donation must be registered with the Registry of Deeds to affect third parties. However, lack of registration does not invalidate the donation between the parties.

C. Donation Through Succession

Applicable Law: Articles 728 and 752, Civil Code.
Donations mortis causa must comply with the formalities of a last will and testament:
1. Must be in writing.
2. Must adhere to the formalities of a will (notarial or holographic).
3. Can be revoked by the donor during their lifetime.

2. Donation with Burden (Mode)

A donation may include a burden or condition imposed by the donor. In this case:

Form: Follows the form required for donations of the specific type of property (movable or immovable).
Acceptance: The donee must explicitly accept not only the donation but also the burden or obligation.
Failure of the donee to comply with the burden may lead to revocation of the donation.

3. Revocation and Reduction

Certain formal defects or conditions may render a donation void or revocable:

Violation of Form: Donations that fail to meet the form requirements are null and void.
Excessive Donations: Donations exceeding the portion of disposable free property may be reduced in favor of compulsory heirs during estate settlement under the rules on legitime (Article 760, Civil Code).

4. Special Forms of Donations

A. Donation Propter Nuptias (Prenuptial Donation)

Form Requirements:
1. Must be made in a public document.
2. Subject to the rules on donations of immovable property if the subject is real property.

B. Conditional and Modal Donations

Conditional donations require the fulfillment of a condition for the donation to take effect.
Modal donations impose an obligation on the donee to use the property for a specific purpose.
- Both must adhere to the same form required for the principal donation.

5. Nullity for Lack of Form

Absolute Nullity: Donations that do not adhere to the required form (e.g., oral donation of immovable property) are considered absolutely void. They produce no legal effect and cannot transfer ownership.
Exception: When a party invokes estoppel or acts in bad faith to deny the donation after receiving benefits.

6. Tax Implications and Documentary Requirements

Donations are subject to Donor’s Tax under the National Internal Revenue Code (NIRC).
A Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR) is necessary for the transfer of real property.

Conclusion

The formality of donations is vital to their enforceability. Compliance with the Civil Code's requirements ensures that donations are legally binding, protects the interests of both donor and donee, and avoids disputes or invalidations due to procedural defects.