Dear Attorney,

I recently purchased a 70-square-meter lot through a Deed of Donation. When I attempted to secure a tax declaration for the property from the municipal office, they advised me to proceed to the National Housing Authority (NHA). However, the NHA is asking for a title to the property, which I do not possess. All I have is the Deed of Donation, and many other residents here are in the same situation. I seek guidance on how to address this issue and obtain the necessary tax declaration.

Sincerely,
A Concerned Property Owner

Comprehensive Guide on Land Ownership and Tax Declarations in the Philippines

Legal Framework for Land Acquisition and Registration

In the Philippines, ownership of real property is established through the Torrens System of land registration. This system is governed by the Property Registration Decree (Presidential Decree No. 1529), which mandates that ownership of titled properties be evidenced by a Certificate of Title. Properties without titles are generally classified as untitled or alienable and disposable lands, which are governed by other legal principles and administrative regulations.

When a property is acquired through a Deed of Donation, the recipient becomes the new owner. However, a Deed of Donation does not automatically serve as proof of ownership recognized by government offices such as the Assessor’s Office or the NHA.

Steps to Obtain a Tax Declaration

A Tax Declaration is a document issued by the local government to recognize a person as the declarant of a property for taxation purposes. It does not confer ownership but is essential for paying real property taxes and subsequent registration processes.

1. Verification of Property Status

Check if the property has a title through the Registry of Deeds. If no title exists, verify whether the land is classified as alienable and disposable by consulting the Department of Environment and Natural Resources (DENR).
Confirm if the previous owner paid all required obligations, including taxes, especially if the property is part of an NHA project.

2. Execute the Deed of Donation

Ensure the Deed of Donation is notarized and contains all necessary information, including donor and donee details, the description of the property, and conditions of the donation.

3. Present the Deed to the Assessor’s Office

Submit the notarized Deed of Donation to the Municipal or City Assessor's Office for annotation and processing of a new Tax Declaration. The office may require the following documents:
- Certified True Copy of the Deed of Donation
- Previous Tax Declaration (if any)
- Barangay Certification (to confirm property location)
- Real Property Tax Clearance

4. Resolution of NHA Issues

If the NHA is involved, it may indicate the property was part of a government housing program with unpaid balances. To resolve this:
- Request a statement of account or certification of remaining balances from the NHA.
- Coordinate with the donor (if possible) to settle outstanding obligations.
- If the obligation remains unpaid, explore options to settle the balance or negotiate with the NHA for a transfer of rights.

5. Tax Declaration Issuance

Once requirements are met, the Assessor’s Office will process the new Tax Declaration in your name.

Legal Issues and Potential Remedies

Ownership vs. Declarancy

A Tax Declaration is not conclusive evidence of ownership. While it establishes a presumption of possession, actual ownership can only be proven with a title. If the property remains untitled, the following options are available:

Judicial Confirmation of Title under the Public Land Act (Commonwealth Act No. 141) if you or the donor have been in possession for the required period.
Free Patent Application through the DENR for residential lands.

NHA-Related Concerns

Outstanding obligations to the NHA create an encumbrance on the property, which must be resolved before formalizing your ownership. Failure to address these obligations may lead to forfeiture or complications in transferring rights. Seek legal advice to explore options, including payment arrangements or contesting the liability if the obligation is not clearly yours.

Practical Considerations and Recommendations

Clarify the Scope of the Deed of Donation
- The Deed should explicitly state whether the donor has settled all obligations with third parties, such as the NHA. This will help clarify whether you assumed responsibility for the unpaid balance.
Coordinate with Relevant Agencies
- Engage with the Assessor’s Office and the NHA to understand procedural requirements. A step-by-step approach will prevent duplication of efforts.
Seek Legal Assistance
- Given the complexity of land ownership and property tax issues, consult a lawyer specializing in property law for assistance in drafting legal documents and resolving disputes.
Monitor Compliance with Real Property Tax Obligations
- Ensure that real property taxes are paid regularly to avoid penalties and complications.

Conclusion

Obtaining a Tax Declaration for a property acquired through a Deed of Donation requires navigating several legal and administrative processes. Coordination with government offices, resolution of any outstanding obligations, and clear documentation of the donation are critical steps. If complications arise due to the involvement of the NHA, legal recourse may be necessary to protect your rights as the new owner.