Notarization Requirements for Deed of Adjudication and Property Tax Declaration in the Philippines

Below is a comprehensive overview of the notarization requirements for a Deed of Adjudication, as well as considerations involving the corresponding Property Tax Declaration in the Philippines. This article aims to clarify the legal basis, procedural steps, and practical guidelines. However, this information is for general reference only and should not be treated as formal legal advice. For specific issues, always consult a licensed Philippine attorney or notary public.

1. Understanding Key Terms

1.1 Deed of Adjudication

  • Definition: A Deed of Adjudication is a legal instrument used predominantly in the settlement of estates in the Philippines, especially in situations involving extrajudicial settlement. If there is a sole heir or a single party adjudicating property from a decedent’s estate, this document states that the heir has taken ownership or rights to the property.
  • Purpose: It formally declares the heir’s claim to the deceased’s property and enables the heir to transfer ownership, register the property under their name, and attend to related administrative tasks (e.g., updating the tax declaration).

1.2 Property Tax Declaration

  • Definition: A Tax Declaration is a document issued by the local Assessor’s Office declaring certain property details such as owner’s name, land classification, assessed value, and tax due.
  • Purpose: It serves as a basis for real property tax assessment and payment, reflecting who is recognized for tax purposes on a specific real property.

2. Legal Framework

  1. Civil Code of the Philippines (Republic Act No. 386)

    • Governs the rights and obligations related to property, inheritance, and succession.
    • Articles on succession and inheritance outline when extrajudicial settlement is permissible.

  2. Rules of Court (Rule 74 on Settlement of Estate of Deceased Persons)

    • Provides guidelines on extrajudicial settlement for estates, including the requirement of publishing a notice in a newspaper of general circulation when resorting to extrajudicial settlement of estate.

  3. 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC)

    • Outlines the duties, responsibilities, and qualifications of notaries public in the Philippines.
    • Specifies the formal requirements for notarizing documents, including personal appearance, proof of identity, and the notarial register.

  4. Local Government Code of 1991 (Republic Act No. 7160)

    • Governs local government powers, including real property taxation, assessment, and issuance of tax declarations.

  5. National Internal Revenue Code (NIRC) and Bureau of Internal Revenue (BIR) Regulations

    • Requires the payment of estate tax or other applicable taxes (documentary stamp tax, capital gains tax, etc.) before registration of property.

3. Notarization Requirements for a Deed of Adjudication

To have legal effect and be considered a “public document,” a Deed of Adjudication generally requires notarization. Below are the main requirements:

  1. Personal Appearance by the Principal (Heir/Adjudicant):

    • Under the 2004 Rules on Notarial Practice, the person signing the document must appear before the notary public.
    • A notary public must verify the identity of the individual via government-issued identification (e.g., passport, driver’s license, Unified Multi-Purpose ID, etc.).

  2. Competence and Willingness to Sign:

    • The signer must be of legal age and mentally competent to execute the Deed of Adjudication.
    • The notary must ensure that the execution is free, voluntary, and fully understood by the signatory.

  3. Complete and Accurate Document Details:

    • The Deed must clearly identify the subject property, its technical description, as well as details of the deceased owner.
    • Reference to the Certificate of Title (if titled property) or the applicable Tax Declaration (if untitled property).

  4. Supporting Documents to Present to the Notary Public:

    • Death Certificate of the deceased (to prove ownership interest being transmitted).
    • Proof of Relationship (e.g., birth certificate, marriage certificate, or other evidence establishing the heir’s right).
    • Certificate Authorizing Registration (CAR) or eCAR from BIR if estate taxes have been settled (though sometimes this is processed in tandem with the local Register of Deeds).
    • Tax Declaration (to confirm the property’s details and assessment).

  5. Proper Execution and Signature:

    • Sign the Deed in the presence of the notary public.
    • The notary public will affix their signature, seal, and details in the notarial register.

  6. Notarial Fees:

    • Fees vary by region and notary public. They typically include notarization fee and other charges for the drafting of documents (if availed).

  7. Publication Requirement (If Extrajudicial Settlement Applies):

    • If the Deed of Adjudication is part of an extrajudicial settlement of estate, the law usually requires the publication of a notice of the settlement in a newspaper of general circulation once a week for three consecutive weeks. This is to put possible creditors or other heirs on notice.

4. Steps to Notarize and Use a Deed of Adjudication

  1. Drafting the Deed of Adjudication:

    • Usually prepared by a lawyer or a legally-knowledgeable individual.
    • Must contain complete details: name of deceased, name/s of heir/s, description of the property, the heir’s statement of adjudication, and any stipulations on warranties.

  2. Appear Before the Notary Public:

    • Bring all original documents for verification (IDs, death certificates, supporting proofs).
    • Sign the document in front of the notary public.

  3. Acquire Notarial Acknowledgment and Seal:

    • Once acknowledged, the notary public will apply the official notarial seal and annotation in the notarial register.
    • The Deed becomes a public document, bearing a notarial annotation for authenticity.

  4. Pay Applicable Taxes and Fees (if transferring property):

    • Estate Tax: If the decedent’s estate has not yet been settled or if a settlement leads to property transfer, the heir must file and pay any applicable estate tax with the BIR.
    • Documentary Stamp Tax (DST): This may also apply for the transfer of property.
    • Obtain a Certificate Authorizing Registration (CAR or eCAR) from the BIR.

  5. Register with the Register of Deeds (for titled property):

    • Present the notarized Deed of Adjudication, the eCAR/CAR, and other documents to the Register of Deeds of the city or province where the property is located.
    • The Register of Deeds will annotate the transfer, and a new title may be issued in the heir’s name.

  6. Update the Tax Declaration at the Local Assessor’s Office:

    • After registering the property with the Register of Deeds (for titled property) or, in the case of untitled property, presenting proof of ownership changes, proceed to the local Assessor’s Office.
    • Submit the notarized Deed of Adjudication and other relevant documents.
    • Request the issuance of a new Tax Declaration in the name of the adjudicating heir.

5. Significance of the Property Tax Declaration in this Process

  1. Assessment of Real Property Tax:

    • The Tax Declaration indicates the official assessed value and tax obligations.
    • Failure to update the Tax Declaration promptly can result in confusion over property tax liabilities.

  2. Local Assessor’s Office Procedure:

    • They typically require:
      • Notarized Deed of Adjudication (and proof of its registration if titled).
      • Certified true copy of the title (if applicable).
      • Updated real property tax receipts.
    • After review, the office will update its records and issue a new Tax Declaration to reflect the current owner (or heir).

  3. Legal Proof of Possession & Ownership (For Untitled Land):

    • In some parts of the Philippines, properties may still be untitled.
    • A Tax Declaration in the occupant’s name is often used as evidence of possession or claim, though it is not conclusive proof of ownership like a Torrens Title.
    • Thus, a properly notarized Deed of Adjudication plus updated Tax Declaration strengthens the heir’s claim.

6. Practical Tips and Considerations

  1. Consult a Lawyer:

    • Estate settlement involves tax and property implications. Legal advice ensures compliance with procedural requirements and helps avert future disputes.

  2. Comply with Publication Requirements:

    • If you are executing an extrajudicial settlement, ensure that publication is done and an affidavit of publication is secured as evidence of compliance.

  3. Be Aware of Deadlines:

    • The estate tax must be filed and paid within a specific period (generally one year from the decedent’s death, subject to extensions or updates in BIR regulations).
    • Delays may incur penalties and surcharges.

  4. Keep Document Copies and Notarial Records:

    • Store the original notarized Deed safely.
    • Obtain certified true copies, if necessary, for submission to government offices (BIR, Register of Deeds, Assessor’s Office).

  5. Rectify Any Delinquent Real Property Taxes:

    • If the property has unpaid real property taxes, the heir/s must address them to avoid complications in the transfer process or possible penalties.

  6. Prepare for Possible Additional Documents:

    • Some local governments or BIR offices might request extra documentation such as extrajudicial settlement affidavits, heirship affidavits, or genealogical documents.

7. Frequently Asked Questions (FAQs)

  1. Is Notarization Mandatory for a Deed of Adjudication?

    • Yes. To be valid as a public instrument and to be registrable, a Deed of Adjudication must be notarized in accordance with the 2004 Rules on Notarial Practice.

  2. Can I Notarize a Deed of Adjudication Without Paying Estate Tax First?

    • While you can have the document notarized, you will generally need to pay the estate tax (and secure the BIR’s Certificate Authorizing Registration) before the property can be officially transferred or registered with the Register of Deeds.

  3. How Long Does It Take to Update the Property Tax Declaration?

    • It varies by municipality. The process may take a few days to a few weeks, depending on the volume of transactions and completeness of documentation.

  4. Do I Need to Publish the Deed of Adjudication in a Newspaper?

    • If it forms part of an extrajudicial settlement and not just an internal family arrangement, yes, publication is required under Rule 74 of the Rules of Court. Check with an attorney if your situation qualifies as an extrajudicial settlement requiring publication.

  5. What Happens If There Are Multiple Heirs?

    • If there are multiple heirs, typically an Extrajudicial Settlement of Estate with Partition is executed instead of a single Deed of Adjudication.
    • Each heir’s share or agreement on distribution must be indicated, and all heirs must sign the document.

8. Conclusion and Disclaimer

A Deed of Adjudication is a critical document in the extrajudicial settlement of estates when there is a sole heir, or where an heir is adjudicating certain property interests from a decedent. Notarization is an essential step to ensure the document is legally valid and registrable. Likewise, updating the Property Tax Declaration with the local Assessor’s Office not only fulfills local tax obligations but also serves as evidence that the government recognizes the new owner/heir for tax purposes.

Disclaimer: This article provides a general overview of the notarization requirements for a Deed of Adjudication and related property tax considerations in the Philippines. It should not substitute for tailored legal advice. For specific concerns, always consult a qualified attorney or notary public experienced in Philippine property, estate, and tax laws.

References (for further reading):

  1. Civil Code of the Philippines (R.A. No. 386)
  2. Rules of Court, Rule 74 – Extrajudicial Settlement of Estate
  3. 2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC)
  4. Local Government Code of 1991 (R.A. No. 7160)
  5. National Internal Revenue Code – Provisions on Estate Tax, Documentary Stamp Tax

Always verify with current BIR regulations and local government office directives to account for any recent changes or local implementing guidelines.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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