Q: Real estate to put in a corporation. Properties are under our mom's name who is 90 years old. What should be done in this scenario?

A: Transferring real estate properties to a corporation in the Philippines involves several legal considerations and procedures. The following guide outlines the general steps and considerations you may encounter:

1. Determine the Type of Transfer

Is the transfer a sale, donation, or some other form of conveyance? The type of transfer will affect the legal documents required and the taxes involved.

2. Establish or Identify the Corporation

If a corporation does not already exist for this purpose, you'll need to establish one following the requirements of the Securities and Exchange Commission (SEC) in the Philippines.

3. Prepare the Necessary Legal Documents

Depending on the type of transfer, this may include Deeds of Sale, Deeds of Donation, or other contracts. These documents must clearly define the terms of the transfer and be executed by all parties involved.

4. Obtain Tax Clearances

Various taxes may be applicable, such as capital gains tax, documentary stamp tax, and transfer tax. Consult with the Bureau of Internal Revenue (BIR) or a tax lawyer to ensure compliance with all tax requirements.

5. Secure Required Clearances and Approvals

Certain transfers may require clearance or approval from government agencies such as the Housing and Land Use Regulatory Board (HLURB) or local government units.

6. Register the Transfer

Once all documents are prepared and taxes paid, register the transfer with the Register of Deeds in the jurisdiction where the property is located. This will update the title of the property to reflect the corporation as the new owner.

7. Consider Special Situations

Since the properties are under your mother's name and she is 90 years old, it may be prudent to consult with an attorney to discuss any special considerations, such as her legal capacity to transfer the property, estate planning implications, or potential rights of other heirs.

Conclusion

Transferring real estate to a corporation is a complex process that requires compliance with various legal and tax obligations. Engaging the services of a legal professional with experience in Philippine real estate and corporate law can ensure that the process is carried out correctly and in accordance with all relevant laws and regulations.