Transfer of a House & Lot to the Only Heir in the Philippines
(Everything You Need to Know, 2025 Edition)
1. Why the procedure is “special” when there is a single heir
When only one person qualifies as a compulsory heir—e.g., an only child and no surviving spouse or parents—the Civil Code (Arts. 960 - 1016) and the Rules of Court allow a far simpler settlement than the usual multi-heir co-ownership:
| Scenario | What the law allows |
|---|---|
| Inheritance (cause of death) | Affidavit of Self-Adjudication (ASA) under Rule 74, §1—no need for co-heirs’ signatures. |
| Transfer while the owner is alive | 1) Inter vivos donation (Deed of Donation) or 2) Sale to the heir. Both are taxable differently from inheritance. |
| With a notarial Will | The heir is still a devisee/legatee, but probate is mandatory; transfer follows the probate decree. |
2. Quick table of taxes & fees (TRAIN Law and current rates)
| Levy | Basis | Current rate (2025) | Notes |
|---|---|---|---|
| Estate Tax | Net estate value | 6 % flat (TRAIN, R.A. 10963) | Pay within 1 year from death. Penalty + interest after. |
| Estate Tax Amnesty | Undeclared estates of decedents who died on/before 31 Dec 2022 | 6 % of net estate OR minimum ₱5,000 (R.A. 11956, deadline 14 Jun 2025) | Heavily used for old, untitled properties. |
| Donor’s Tax | Net gift value (if inter vivos) | 6 % flat | Must be paid within 30 days of notarization. |
| Local Transfer Tax | Zonal or FMV | 0.5 % – 0.75 % (LGU-specific) | City/municipal treasurer. |
| Registration Fee | BIR-zonal or Assessor’s FMV | Graduated (≈0.25 % – 0.75 %) | Registry of Deeds. |
| Documentary Stamp | FMV | ₱15/₱1000 | Applies to Deed of Donation/Sale. |
| Real Property Tax arrears | Assessed value | Varies | Must be cleared before eCAR release. |
3. Road-map: settling the estate and getting a new title
Gather core documents
- PSA-issued death certificate (original + 2 photocopies)
- Owner’s duplicate Original/Transfer Certificate of Title (OCT/TCT)
- Latest Tax Declaration + Real Property Tax clearance
- Valid IDs of heir & decedent, birth certificate proving filiation
- Certificate of No Marriage (if heir is a spouse) or PSA CENOMAR for decedent to prove no surviving spouse
- Notarized Affidavit of Self-Adjudication (with jurat, bar code, and notarial seal)
Publish the ASA
- Once in a newspaper of general circulation (Rule 74§1). Keep the entire page and publisher’s affidavit.
File the Estate Tax Return (BIR Form 1801)
- Attach all documents, Statement of Assets & Liabilities of the decedent, and compute deductions:
Standard ₱5 M, Family Home (max ₱10 M), Funeral (≤₱200 k), Medical (last year, ≤₱500 k), etc. - Pay at the Revenue District Office where the decedent resided.
- Secure electronic Certificate Authorizing Registration (eCAR)—the BIR’s clearance.
- Attach all documents, Statement of Assets & Liabilities of the decedent, and compute deductions:
Pay Local Transfer Tax at the city/municipal treasurer.
Apply for new Tax Declaration at the Assessor’s Office (in heir’s name).
Register with the Registry of Deeds
- Present: owner’s duplicate title, eCAR, RPT clearance, Transfer Tax receipt, ASA, IDs.
- Registry cancels the old title and issues a new TCT/OCT in the heir’s name.
4. Special wrinkles and how to handle them
| Issue | Practical solution |
|---|---|
| Property is conjugal/community | Surviving spouse must sign a Deed of Extrajudicial Settlement with Waiver in favor of the child; or spouse inherits per legitime rules if not waiving. |
| Title is lost or still in OCT form | Secure a Petition for Re-issuance or administrative reconstitution before the estate settlement. |
| Estate spans several LGUs | File one ETR in the RDO of last residence, attach separate schedules per property. |
| Heir is a minor | A guardian ad litem (court-appointed) must sign and the property may be subject to court approval for disposition. |
| Encumbrances/mortgage exist | Settle or assume the debt; creditor must execute release for title cancellation. |
| Foreign-resident heir | May execute a SPA apostilled in the country of residence so a local attorney-in-fact can sign the ASA and deeds. |
| Squatted or untitled land | Secure DENR Free Patent or Administrative Titling first; amnesty cannot cure absence of title. |
| Pre-2018 unpaid estate taxes | Use Estate Tax Amnesty (until 14 Jun 2025) to avoid surcharges/interest; file ETR-Amnesty Form 2118-EA. |
5. Inter vivos alternative: donation or sale to the only child
| Donation | Sale |
|---|---|
| Pros: Transfer is immediate; no probate later. | Pros: Heir pays price—avoids donor’s tax; still qualifies for “purchase price” as basis. |
| Cons: Donor’s Tax (6 %); legitime rights of future heirs (e.g., future spouse/children) may cause reduction later. | Cons: Capital Gains Tax (6 %) + DST; must be at FMV else BIR treats undervaluation as partial donation. |
| Requires notarized Deed of Donation + Acceptance by donee; if heir is a minor, acceptance by legal guardian. | Requires Deed of Absolute Sale; if heir pays less than FMV, the difference is still subject to Donor’s Tax. |
6. Probate path if there is a will
- File verified Petition for Probate in the RTC of the place where the decedent resided.
- After notice & hearing, the court issues an order allowing the will and appointing an executor.
- Executor files the ETR, gets eCAR, and conveys the house & lot to the devisee-heir by Court-approved Deed of Conveyance.
- Register deed + court order with the Registry of Deeds.
While this route adds time & cost, it can be necessary if the decedent wanted, for example, to impose conditions (usufruct for someone else, prohibition on selling, etc.) that an ASA cannot implement.
7. Penalties & common pitfalls
- Late estate tax filing – 25 % surcharge + 12 % annual interest.
- Failure to publish ASA – Title may be attacked by creditors within 2 years.
- Undeclared co-owned improvements – Later RPT back taxes billed to the heir.
- Using the wrong RDO – Causes weeks-long eCAR revalidation.
- Illegible or mismatched names – Must file a supplemental sworn affidavit and sometimes a Petition for Reissuance of title.
8. Frequently asked questions
| Question | Answer |
|---|---|
| Do I need a lawyer? | The ASA itself can be drafted using a template, but a lawyer ensures correct publication, tax computation, and registry requirements. Probate always needs counsel. |
| Can I live abroad during the process? | Yes—issue an apostilled Special Power of Attorney to a Philippine-based representative. |
| What if the property’s still in the grandparents’ name? | You must settle each prior estate in sequence or in a consolidated amnesty filing. |
| Is the estate tax amnesty automatic? | No. You must still file Form 2118-EA and get an eCAR. Amnesty merely waives surcharges/interest. |
9. Timeline & cost snapshot for a straightforward ASA (Metro Manila example, 2025 pesos)
| Step | Typical processing time | Ball-park cost |
|---|---|---|
| ASA drafting & notarization | 1–2 days | ₱1,500–₱3,000 |
| Newspaper publication | 3 weeks (includes layout) | ₱4,000–₱6,000 |
| Estate Tax & eCAR | 2–6 weeks | Tax: depends on net estate; e.g., ₱6 % of ₱3 M = ₱180,000 |
| LGU Transfer Tax | 1–3 days | 0.75 % of FMV (₱22,500 on ₱3 M) |
| Registry of Deeds | 1–2 weeks | ≈₱10 k–₱12 k fees + ₱3 k entry, annotation |
| New Tax Declaration | 1–2 weeks | ₱1,000–₱2,000 |
| TOTAL time | 6–12 weeks | ₱220 k + (mostly taxes) |
10. Practical checklist (tear-off version)
- ☐ PSA Death Certificate
- ☐ Owner’s Duplicate Title
- ☐ Latest Tax Declaration & RPT clearance
- ☐ Birth/Marriage certificates proving sole heirship
- ☐ Draft & notarize Affidavit of Self-Adjudication
- ☐ Newspaper publication (keep full page + affidavit)
- ☐ Pay Estate Tax / file amnesty, secure eCAR
- ☐ Pay LGU Transfer Tax
- ☐ Register ASA + eCAR at Registry of Deeds → New TCT
- ☐ Update Tax Declaration (Assessor)
- ☐ Keep duplicates of every receipt & certified copies of new title
Final Take-away
For a lone heir, Philippine law offers the Affidavit of Self-Adjudication route—fast, inexpensive, and often entirely administrative—provided estate taxes are settled and documentary requirements are met. Failing to comply (or simply delaying) exposes you to surcharges, potential title challenges, and higher costs later. Begin gathering documents immediately after the decedent’s death, file the estate tax return within one year, and you can have a clean Transfer Certificate of Title in approximately two to three months.
(This article is for general information only and does not constitute legal advice. Complex situations—multiple properties, foreign elements, pending litigation—should be evaluated with a Philippine lawyer specializing in estates and property.)