Simplified Question: Do the heirs need to sign an extrajudicial settlement to transfer a property title if one of the co-owners is still alive?
In the Philippines, transferring a property title when the registered owners are deceased involves specific legal procedures, one of which is an extrajudicial settlement of the estate. This process can be complex, especially when dealing with multiple heirs and co-owners. Here's a detailed look at the legal considerations and requirements.
Extrajudicial Settlement of Estate
An extrajudicial settlement of estate is a legal process used to distribute the assets of a deceased person without going to court, provided the heirs agree on the distribution and there are no outstanding debts. This is typically documented through a "Deed of Extrajudicial Settlement of Estate."
Requirements for Extrajudicial Settlement
Unanimous Consent of Heirs: All legal heirs must agree to the extrajudicial settlement. If the deceased person’s children are the heirs, all of them need to sign the settlement document, regardless of their location (even if abroad).
Publication: The settlement must be published in a newspaper of general circulation once a week for three consecutive weeks.
Bond Requirement: A bond equivalent to the value of the personal property is required to protect potential creditors.
Affidavit of Self-Adjudication: If there is only one heir, they may execute an affidavit of self-adjudication to transfer the property to their name.
Special Cases: Co-Owned Property
If the property is co-owned with someone who is still alive, such as a relative (e.g., an aunt or uncle), the process involves additional steps:
Surviving Co-Owner’s Consent: The surviving co-owner’s consent is necessary. In this case, if the aunt is willing to sign, her consent facilitates the transfer process.
Heirs of Deceased Co-Owners: The heirs of the deceased co-owners must also sign the extrajudicial settlement. If these heirs are abroad, they must provide their consent through a special power of attorney (SPA) authenticated by the Philippine consulate in their country of residence.
Spousal Share: In the context of inheritance, the surviving spouse typically inherits a portion of the deceased spouse’s share, which must be considered during the distribution.
Automatic Transfer to Spouse
It is a common misconception that the property automatically transfers to the surviving spouse upon the death of a co-owner. The transfer is not automatic; it requires legal documentation and the consent of all heirs. The surviving spouse's share is determined by law and must be reflected in the settlement agreement.
Process Overview
Preparation of Documents: Gather necessary documents, including the death certificates of the deceased owners, proof of ownership (title), and IDs of all heirs and surviving co-owners.
Drafting the Settlement: A lawyer typically drafts the deed of extrajudicial settlement.
Signing and Notarization: All heirs and the surviving co-owner must sign the document. If any heir is abroad, their signature must be authenticated by the Philippine consulate.
Publication and Bond: Publish the settlement in a newspaper and secure the required bond.
Filing with the Registry of Deeds: File the deed, along with other required documents, with the Registry of Deeds to effect the transfer of title.
Conclusion
To transfer the property title to the siblings, the heirs must comply with the extrajudicial settlement process, including securing the necessary signatures, even from those abroad. The process ensures that the property distribution is legally recognized and free from disputes. Consulting with a legal professional is recommended to navigate the complexities of property transfer and inheritance laws in the Philippines.