Inheritance is one of the core components of conflicts in Philippine teleserye / telenovelas. Parents, wives or children fighting over a piece of land or property left by a deceased relative. It can mostly be attributed to the person who passed away and not living in last will and testament.

In this Youtube video by Real Estate Broker Rodel Revilla, he will discuss with us the step by step process of selling a property when the owner is already dead.

Process Summary:

Below is the step-by-step procedure required when selling an inherited property:

  1. Determine if the deceased died without a valid last will and testament.
  2. Ask for a family tree to determine the compulsory heirs.
    • If the deceased was single without children, the heirs are the surviving parents.
    • If the deceased was single with children, the heirs are legitimate and illegitimate children only.
    • If the deceased was single with illegitimate children and surviving parents, the heirs are the illegitimate children and surviving parents only.
    • If the deceased was married with children, the heirs are legal spouse, legitimate and illegitimate children only.
    • If the deceased was married with illegitimate children, the heirs are legal spouse, illegitimate children and surviving parents.
    • Any scenario that does not fall in any of the categories above, you need to consult a lawyer.
  3. Advise the heirs to comply and make a Special Power of Attorney (SPA) – if needed. It should be with Red Ribbon if heirs are from abroad or unable to be physically present when signing documents.
  4. Get the Certificate of Aggregate Landholdings.
  5. Get the Property Traceback.
  6. Secure legal documents such as death certificate, CTC of title, tax declaration, and tax clearance.
  7. Prepare Deed of Extrajudicial Settlement of estate.
  8. Publish in a generally circulated newspaper.
  9. Process the estate taxes and Certificate Authorizing Registration (CAR) in BIR.
  10. Process the transfer tax in Assesor’s office to transfer to property from the deceased to heirs.
  11. Process registration fee and transfer of title in Registry of Deeds.
  12. Prepare the Deed of Sale to transfer the property from heirs to the buyer.
  13. Process the Capital Gain tax, DST, and Certificate Authorizing Registration (CAR) in BIR to transfer the property from heirs to buyer.
  14. Process the transfer tax in Assessor’s office to transfer the property from heirs to buyer.
  15. Process the registration fee and transfer of title in Registry of Deeds to transfer the property from heirs to buyer.
  16. Process the transfer of tax declaration to buyer.

If you do not have time to process all these documents, you can hire a licensed Real Estate Broker to assist you with the whole process of selling your inheritance.

BIR Forms Required:

  • BIR Form No. 1904 – Application for Registration For One-Time Taxpayer and Person Registering under E.O. 98 (Securing a TIN to be able to transact with any Government Office). This form is to be accomplished by one-time taxpayer and persons registering and applying for a TIN (E.O. 98). To be filed with the RDO having jurisdiction over the place where property is located for one time taxpayer; or place of residence for applicants under E.O. 98. This should be filed before payment of any tax due/before filing of return or before the issuance of TIN under E.O.98. Download