Q. Hi Atty. Wong I have a question regarding a property of my deceased father in Manila. My father died in 2000 and still has his name in the land title of the property.
How can I and my older brother transfer the land title from our deceased father to us?
Points to consider:
• Both parents are dead. Mom died 8 years before dad.
• All property taxes are paid regularly.
• Me and my brother moved to Canada 2005 and now both Canadian Citizens. I am now 25 yrs old and my brother is 26.
Please also provide additional information about other taxes and legal fees. Thank you! Ms. D.
ANS:
Hello Ms D, in order that the title of the property(ies) left by your parents can be transferred from the name(s) of your deceased parents to the children as their heirs, you and your sibling are required to execute the so called EXTRAJUDICIAL SETTLEMENT OF ESTATE.
You could ask your lawyer in the Philippines to make the necessary documentations for the purpose. However, if you don’t intend to travel to the Philippines for the said purpose, you can execute the Extrajudicial Settlement of Estate with a Special Power of Attorney(SPA) in Canada and have the said document, duly acknowledged and notarized (with red ribbon) before our Philippine Consulate in order that the said document will be recognized in the Philippines.
However, if you and your sibling intend to travel to the Philippines to personally attend to this matter, you can have the Extrajudicial Settlement prepared and notarized in the Philippines.
The inclusion of the SPA in the settlement of the estate documents as stressed above, is a convenient way for your representative(s) to make the necessary legwork for and on your behalf, and more particularly, in the cancellation of the old land title which still bears the name(s) of your deceased parents, and for the issuance of a new title(s) under your name and the name of your sibling as co-owners of the land(s) in question.
Moreover , if you and your brother agree , you could have a physical partition of the property and an individual titles thereof will be issued separately for segregated lot . Should you opt for this option , you have to get the professional services of a Geodetic engineer or surveyor to make the necessary Lot/Subdivision plan of the subject property and thereafter for the approval of the same by the Land Management Bureau and the Land Registration Authority (LRA).
As to taxes and fees, you guys need to work fast. You really have to address ASAP this matter as the interest and penalty charges per annum of failing to pay estate taxes that are already due reckon from the death of your father in 2000 and your mother in 2008 respectively .
As to the amount of taxes that you have to pay, I am not in position to determine the amount as the taxes thereof depends on the zonal or market of the property whichever is higher per the schedule as listed and provided by the Bureau of Internal Revenue(BIR) of a given place or locality referred to as the zonal valuation .
What is certain is the fact that you have to pay the prescribed of taxes/fees (aside from real estate taxes which you claimed are paid on time) and more particularly, the following:
a) Estate Tax plus interest at 25% on the tax amount due for late filing and payment and annual interest of 20%
interest per annum.
b) Documentary stamp tax( 1.5% of the zonal or market value whichever is higher)
c) Transfer tax/fees ( ranging from .5 to 1% of the consideration/ zonal or market value whichever is higher)
For further assistance on tax matters, it is recommended that you engage the services of tax practitioner in the Philippines, for professional guidance.
Then there is also a need for the Extrajudicial Settlement of the Estate that you have executed to be published in the news paper of general circulation for three(3) consecutive weeks in the Philippines or in the locality where the property is situated and thereafter secure an affidavit of such publication from the publisher or editor of the newspaper .
Once, the above formalities are done, the above taxes will then have to be paid to the Bureau of Internal Revenue (BIR) for the issuance of Certificate Authorizing Registration(CAR), followed by the payment of fees/taxes to the Assessor’s Office/Register of Deeds . Depending on the scope of the professional services of the lawyer, the above tasks could be included as part and parcel of your lawyer’s job.
As regards the legal fees for the lawyer, again it depends on the value/kinds/nature of the property involved , the complexity of the job and the professional standing of the lawyer in the community. In short if there are problems and issues over the property or if you’ll hire a high caliber lawyer or De campanilla , the higher the professional/attorney’s fees will be.
For now, the first order of business is for you is to scout a prospective lawyer of your preference to provide you with such professional services at the earliest opportunity.
Lastly. The fact that you and your sibling are now Canadian citizens and are therefore considered as foreigner, does not disqualify either of you from owning real properties in the Philippines, being the intestate heirs of your deceased.
However, in terms of the land area ownership , there is a limit imposed upon former natural-born Filipino citizens who are now citizens of other country . A maximum of 1,000 square meters in urban centers and 10,000 square meters of land in rural areas.
The above-restrictions does not apply to those citizens who availed of the Dual Citizenship and Retention Act, otherwise known as RA 9225.
Under this law, a natural-born Filipino citizen is deemed not to have lost their Philippine citizenship notwithstanding becoming a naturalized citizens of other country. As such, all the rights of being Filipino citizens, more particularly, in land ownership is fully restored upon them. Hence, the restrictions on land ownership imposed upon foreigners does not apply to them.
Looking forward you’ll find the above in order. Thank you for writing and good luck!
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