Requirements for Property Donation in the Philippines

Query: What additional documents are needed for a property donation in the Philippines aside from the Deed of Donation?

In the Philippines, a donation of property is not just executed through the signing of a Deed of Donation. It involves several steps and documents to ensure the legality and enforceability of the donation under the law. The main document is the Deed of Donation, but other necessary documents and steps are crucial for completing the process:

1. Notarized Deed of Donation: The deed must be executed in writing and notarized to have any legal effect. This deed should clearly state the donor's intention to donate and the donee's acceptance thereof.

2. Acceptance by the Donee: Acceptance by the donee must be made during the lifetime of the donor and stated in the deed itself. If not in the deed, it must be in a separate public document.

3. Witnesses: The signing of the deed must be witnessed by at least two disinterested parties, especially for real property donations.

4. Description of the Property: A complete and accurate description of the property being donated. This includes the technical description and title number if it involves real estate.

5. Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT): For donations involving real estate, the original copy of the TCT or CCT needs to be presented.

6. Tax Clearance and Certificates:

   • Certificate Authorizing Registration (CAR): Issued by the Bureau of Internal Revenue (BIR), this certifies that the taxes on the transfer of real property have been paid.
   • Tax Declaration: The latest tax declaration for the property being donated must be submitted to reflect the change in ownership.

7. Donor’s Tax Return: The donor must file a donor’s tax return within 30 days after the donation is made. The tax is based on the fair market value of the property at the time of donation.

8. Payment of Registration Fees: After securing the CAR, the Deed of Donation must be taken to the Registry of Deeds for registration. The appropriate registration fees must be paid to effect the transfer of the title to the donee.

9. Local Government Unit Clearance: Depending on the local government unit, other clearances or permits may be required as part of the registration process.

This documentation ensures that the transfer is legally binding and recognized, protecting both the donor's and the donee’s interests. It is advisable for both parties to consult with a legal expert to ensure that all legalities are correctly observed and that the donation process complies with all statutory requirements. Proper documentation and adherence to legal protocols not only validate the donation but also prevent potential disputes related to property transfers in the future.