Disclaimer: The following discussion provides general legal information based on Philippine laws and jurisprudence. It is not intended as formal legal advice. For specific concerns, you should consult a qualified attorney who can address your unique situation.

Overview

In the Philippines, when a person passes away (the decedent), any property they leave behind (the estate) is subject to succession. The heirs who inherit such property typically become co-owners until the property is partitioned. Questions often arise regarding how to properly partition inherited property and whether a co-owner can transfer title without the consent of the other co-owners. This article examines the key laws, procedures, and legal principles that govern these matters.

Legal Framework

Civil Code of the Philippines (Republic Act No. 386)
- Book III, Title III: Co-Ownership (Articles 484–501)
- Book III, Title VI: Partition (Articles 1079–1119; partition of estate-related provisions are also found in Articles 494–501)
Rules of Court (for Judicial Settlement of Estate)
- Rule 74: Summary settlement of estate (extrajudicial) for small estates
- Rule 73 to Rule 90: Cover judicial settlement proceedings, claims against the estate, and other procedural rules.
New Civil Code Provisions on Succession
- Articles 774–1105 address testate and intestate succession, delivery of legacies and devises, and partition of the estate.
Notarial Practice Act (for the validity and effectivity of notarized documents, especially deeds of extrajudicial settlement or deeds of partition)
Local Government Code and Registration Requirements
- Register of Deeds rules regarding registration of titles and deeds involving co-owned property.

Part I: Partition of Inherited Property

A. Nature of Co-Ownership Among Heirs

When a person dies, their estate automatically vests in the heirs. If there is more than one heir, a co-ownership is created over the property (Article 1078 of the Civil Code). Under this co-ownership:

Each heir owns an undivided or ideal share in the entire property.
No heir has a right to a specific portion (like a specific room, floor, or lot) until a formal partition is conducted.
Each co-owner is entitled to use and enjoy the property and is responsible for their proportionate share of expenses, taxes, and upkeep (Article 488 of the Civil Code).

B. Methods of Partition

There are two principal methods of partition: extrajudicial and judicial.

Extrajudicial Partition (Settlement)
- Used when the decedent left no will (intestate succession) or when there is a will but it does not contain specific instructions that would prevent out-of-court settlement.
- All heirs must agree on how to divide the estate.
- A public instrument (notarized deed) must be executed, known as a "Deed of Extrajudicial Settlement" or "Extrajudicial Partition."
- Creditors must be notified, and the settlement must be published in a newspaper of general circulation (once a week for three consecutive weeks) as required under Rule 74 of the Rules of Court.
- Heirs must file the estate tax return and pay the necessary estate taxes before finalizing the transfer of titles.
Judicial Partition
- Occurs when the heirs cannot agree on how to divide the property, or if minor heirs are involved, or if there is a contest regarding the authenticity/validity of the will.
- The court will determine each heir’s share according to law (whether testate or intestate) and order the partition, sometimes appointing a commissioner if needed.
- The resulting court order serves as the basis for the Register of Deeds to issue new titles reflecting each heir’s share.

C. Effects of Partition

Once partition is completed, co-ownership is terminated, and each heir receives a definite share of the property.
If an heir is allocated a particular portion of land or real property, they can then apply for a new title (Transfer Certificate of Title) in their name covering the allocated portion.
If the estate includes various properties, partition could involve distributing different properties to different heirs or splitting each property proportionally among all.

Part II: Title Transfer Without Co-Owner Consent

A. General Rule: An Heir (Co-Owner) Can Only Transfer Their Undivided Share

Under Article 493 of the Civil Code, each co-owner may freely sell, mortgage, or otherwise dispose of their undivided share in the co-owned property. However:

Effect is Limited to the Seller’s Share
- The buyer or transferee simply steps into the shoes of the selling co-owner, acquiring all the rights that the seller had as a co-owner.
- The transferee does not acquire the right to a definite portion of the property (because it remains undivided).
- The co-ownership arrangement remains; the transferee becomes a co-owner alongside the other original co-owners.
Cannot Sell Specific or Segregated Portions Without Partition
- If a co-owner sells a specific metes and bounds portion without a formal partition, that sale is generally valid only with respect to the seller’s ideal or fractional share.
- The actual boundary or location of the portion that might later be allocated to that co-owner can only be finalized through a valid partition (judicial or extrajudicial).

B. Requirement of Co-Owner Consent for Whole Property Transfers

No single co-owner can unilaterally dispose of or encumber the entire property without the express consent of all the co-owners.
If one co-owner attempts to sell the entire property, such a transaction would only be binding with respect to the seller’s undivided share. The sale of the rest of the property (the shares of other co-owners) would be void unless ratified by the remaining co-owners.

C. Right of Redemption in Certain Cases

In some scenarios, the other co-owners may have a right of redemption (right to buy back the share that was sold) when a co-owner sells to a third person, especially if the property is small and not divisible without prejudice to others. This is a protective measure so that co-owners can maintain the property’s integrity. The right of redemption is typically exercised within the time limit set by law (30 days from notification of the sale, under certain conditions—Article 1620, in relation to Article 494, may apply depending on circumstances).

Part III: Practical Steps and Considerations

Assess the Existence of a Will
- If there is a will, determine whether probate (court proceeding) is mandatory and whether the will contains instructions on how to partition the estate.
- If the will is silent on property division or if the heirs unanimously agree, they might proceed with an extrajudicial settlement if all legal requirements are met.
Settle Estate Taxes
- Payment of estate taxes to the Bureau of Internal Revenue (BIR) is a prerequisite to any valid extrajudicial settlement, transfer, or partition. The BIR will issue a Certificate Authorizing Registration (CAR) or Electronic Certificate Authorizing Registration (eCAR) before the property’s title can be transferred.
Prepare and Notarize the Necessary Documents
- Extrajudicial Settlement / Partition Agreement: Must be signed by all heirs and notarized.
- Affidavit of Self-Adjudication (when there is only one heir, but that is a special case).
- Deed of Sale or Assignment of Rights (if one co-owner decides to sell their undivided share to another co-owner or third party).
Publication and Notification Requirements
- Rule 74 of the Rules of Court requires publication of the extrajudicial settlement in a newspaper of general circulation once a week for three consecutive weeks.
- Creditors must be notified to allow them to lodge any claims against the estate.
Registration with the Register of Deeds
- Once the partition or sale is complete, the heirs or buyers need to register the deed with the appropriate Register of Deeds to annotate or issue new titles.
- If the property is covered by the Torrens system (with a Transfer Certificate of Title or Original Certificate of Title), the Register of Deeds will cancel the old title and issue new ones based on the partition or sale.
Consider Judicial Remedies if Agreement Is Not Possible
- If co-owners cannot agree on partition or if disputes arise (e.g., one co-owner refuses to sign), any interested heir can file a judicial petition for partition. The court can then resolve the dispute and either order a physical division or a sale of the property (known as partition by public sale or partition by appraisal) with the proceeds to be divided among the co-owners.
Seek Legal Counsel for Complex Situations
- Issues such as hidden heirs, contested wills, minors’ interests, or ongoing debts of the estate require more careful handling.
- Involvement of lawyers, estate planners, and even appraisers (for fair valuation) might be necessary to avoid legal complications.

Part IV: Common Questions

Can I sell my share without notifying my siblings (co-heirs)?
- Generally, yes. You can sell your undivided share. However, it is prudent to notify them, especially because co-owners often have a right of redemption in certain cases, and you want to avoid future conflicts or lawsuits over the sale.
If one heir refuses to sign the extrajudicial settlement, can we still proceed?
- You cannot validly execute an extrajudicial settlement without all heirs’ signatures. The remedy is to file a judicial partition.
Will the buyer get a separate title immediately after buying an undivided share?
- The buyer can have the deed of sale annotated on the existing certificate of title. However, they typically cannot get a separate Transfer Certificate of Title for a specific metes and bounds portion until there is a formal partition and subdivision plan approved by the relevant government agencies.
What happens if the property is indivisible?
- If, after due consideration, the court or the co-owners deem the property as physically indivisible without prejudice to its value (e.g., a small parcel of land or building), the court may order its sale at a public auction, with the proceeds split among the co-owners.
Are there time limits on seeking partition?
- Prescription (statute of limitations) generally does not run against co-owners regarding partition actions. Co-ownership can exist indefinitely unless one heir adversely possesses the property against the others in a way recognized by law. However, to protect rights and avoid complications, it is advisable to formalize partition sooner rather than later.

Conclusion

In the Philippines, inherited property typically enters a state of co-ownership among the heirs until it is partitioned. While any co-owner may sell their undivided share without the consent of the other co-owners, they cannot unilaterally transfer specific portions of the property nor the entire property on behalf of everyone else without full agreement.

Proper partition—either extrajudicial (through a notarized agreement among all heirs, after paying estate taxes and satisfying publication requirements) or judicial (via court proceedings)—is crucial for each heir to obtain a clear, separate title and exercise full ownership rights over their respective shares. Given the technicalities of estate tax compliance, publication, notice to creditors, and registration with the Register of Deeds, it is prudent to consult legal counsel to ensure the process is correct and binding on all parties.

Key Takeaways:

Heirs become co-owners of inherited property; each has an ideal or undivided share.
Extrajudicial partition requires unanimous consent, payment of estate taxes, and proper publication.
Judicial partition is the remedy when heirs cannot agree.
A co-owner may sell or encumber only their undivided share without the others’ consent.
For clear ownership and separate titles, partition must be completed and registered.

Always seek professional legal advice for your specific situation.