ATTY. ALDRIN

Blog

  • Understanding Real Estate Title Transfers in the Philippines

    The process of transferring property titles, especially from a “Mother” title to individual subdivided lots, has its set of intricacies. Here’s a detailed breakdown:

    Extrajudicial Settlement of Estate (EJSE): This is an agreement among heirs on how the property of a deceased will be divided. This requires the consensus of all heirs who have interests in the property.

    Publication: The EJSE must be published in a newspaper of general circulation for once a week for three (3) consecutive weeks.

    Land Partition & Survey: For this purpose, a Geodetic Engineer must be hired. This engineer will prepare the subdivision plan based on the partition agreement between the heirs. Subsequently, it’s sent to the Land Management Bureau – Department of Environment and Natural Resources (LMB-DENR) for approval.

    Tax Processing with BIR: Before transferring the title, several taxes and fees must be settled:
    Local Transfer Tax: The tax is either 0.50% (provincial) or 0.75% (Metro Manila)
    Documentary Stamp Tax: 1.5%
    Notarial Fee: typically ranges between 1-2%
    Estate tax: 6% (net estate under TRAIN Law)

    Title Update: After the release of the eCAR (Certificate Authorizing Registration), heirs can proceed with the Registry of Deeds. New titles will then be released in the name of the heirs.

    Assessment: Once the new titles are released, heirs should proceed with the local Assessor’s office. This step involves property assessment, inspection, and the issuance of a new tax declaration.

    Annotation: Properties that have undergone estate tax settlement and subdivision will have annotations for a 2-year period, as per Sec. 4, Rule 74. This ensures protection for any unaware heirs or creditors.

    Acquiring a Segment of Land: Process & Steps: If you’re interested in purchasing a portion / part of the property, follow these guidelines:
    The Deed of Sale should be executed with details of the technical description (from the LMB-DENR-approved subdivision plan)
    1. Capital Gains Tax, Documentary Stamp Tax, and other transfer fees should be settled at the BIR
    2. Wait for the release of the eCAR
    3. Proceed with title transfer at the Registry of Deeds.
    4. Proceed with the Assessor’s office for the updated/new tax declaration.

  • Resignation in the Philippines: What Every Employee Should Know 🇵🇭

    Navigating the waters of resignation? It’s essential to know your rights and the rules of the game. Here’s a straightforward breakdown:

    The 30-Day Notice 📅: Always submit your resignation letter 30 days in advance to your immediate supervisor or employer. And don’t forget – keeping a copy is a smart move.

    When the 30-Day Rule Doesn’t Apply 👀
    Honor Compromised: If you find yourself in a situation where your honor has been insulted by the employer or their representative.
    Unbearable Treatment: Cases where the treatment meted out to an employee becomes inhuman or intolerable.
    Criminal Actions: Situations where the employer has committed a crime against the employee.
    Similar Circumstances: Other scenarios closely aligned with the reasons mentioned above.

    Consequences of Skipping the 30-day Notice ⚠️: Neglecting this notice might lead to loss of final pay, being held liable for damages and potential blacklisting.

    Withdrawing Resignation? 🔄: It’s possible, but there are factors to consider. For instance, if the employer hasn’t hired a replacement yet, one might still be in the clear.

    Employer’s Role in Resignation 🔍: An employer can’t decline your resignation. It’s your right. But they do influence scenarios like when an employee wishes to withdraw their resignation.

    Forced to Resign? ❌: No one should be cornered into resigning. If you ever feel forced or placed in an untenable situation pushing you to resign, it’s vital to recognize this as constructive dismissal – an illegal practice.

    Final Pay? 💵: If you’ve resigned with notice, you’re entitled to unpaid salary and benefits convertible to cash.

    Informing oneself is empowering. As we navigate our careers, understanding the nuances ensures we act both professionally and in line with our rights.

  • Liability As A Co-Maker

    QUESTION: Aldrin, I signed as a co-maker in a loan contracted by a close friend. She used it to finance her business venture. Sadly, she died. The bank is now coming after me. Aldrin, I didn’t get a single centavo from that loan. I only signed out of the kindness of my heart. At the time, she was desperate to get her business running and was begging me to sign. Am I liable?

    ANSWER:

    Unfortunately, yes.

    As a co-maker, you and your friend both signed the Promissory Note.

    The Promissory Note represents the debt.

    By signing as a co-maker, you made yourself a debtor, liable to the bank upon demand.

    You cannot really blame the bank for going after you because your signature is found in the loan documents.

    Now, I understand that paying the loan may be unfair to you

    After all, you didn’t get a single centavo from that loan

    So, once the bank comes after you through a collection of sum of money case, here’s my advice:

    Institute a cross-claim against the estate of your friend.

    And through that cross-claim, present convincing evidence that will prove that you didn’t benefit from the loan… that you were merely an accommodation party… that in fact you only signed to help your friend.

    LESSON: Be very careful when signing as a co-maker, even if that someone is close to you

  • Donating Something You Don’t Own

    QUESTION: Aldrin, I bought my parents a lot and have it titled in their name. I’m working in the US for over 25 years now so it was my gift for them. Desirous of providing them with a better place to live, I financed the construction of a 3-storey house on the lot, stating however that the house is mine. My parents are old and I learned that my brother convinced my parents to execute a Deed of Donation over the house and lot in his favor. My decades of toiling and hard work flashed before me. What can I do to prevent my brother from having the house and lot registered in his name?

    ANSWER:

    You have to assert your right over the house.

    You must have a position that’s very clear – that the house is yours.

    In a Donation, the donor can give any property as long as the property being given is owned by him.

    Now, if the Deed of Donation was already executed by your parents in favor of your brother, have it annulled through a petition filed in our Courts.

    You are the owner of the house and your parents cannot donate something they don’t own.

    Of course, this is something that’s easier said than done.

    Sometimes, the most meaningful remedy in a conflict is empathy, respect, and taking a genuine interest to listen to and understand the needs and concerns of the other.

  • Business Partner Sold The Business Without My Conformity

    QUESTION: Aldrin, me and my business partner are the owners of a real property. We have built single family residences thereon for lease. The profits derived from the rentals are divided equally between us. My problem is, I have learned that my business partner executed a Deed of Absolute Sale in favor of a buyer without securing my consent and conformity. I’m not even made a party to this Sale. What should I do?

    ANSWER:

    The first step you need to do is to talk with your business partner.

    Try to take a step back from your personal opinions and think about the facts.

    Try to mend fences without personal confrontation.

    Set a meeting with him so he can explain his side.

    In the meeting, tell him that as a part-owner of the business, you are entitled to be informed of these matters.  

    Perhaps, his only plan is to expedite the sale transaction.

    If this is the case, then you can simply reform the contract through our Courts. Another option is to execute an Amended Deed of Absolute Sale with you included as a Seller, if the buyer would agree to the expenses to be incurred.

    Now, if his intention is to commit fraud and/or deceit, then that’s a different story altogether. One that would necessitate judicial relief through civil, administrative and/or criminal liability.

  • Property Mortgaged Without Brother’s Consent

    QUESTION: Aldrin, a certain warehouse standing on a lot owned by our deceased father was mortgaged by my Kuya without my knowledge and consent. Is the mortgage valid?

    ANSWER:

    When a property is inherited, ownership passes to the surviving heirs of the deceased.

    This means that…

    If you and your brother are the ONLY surviving heirs of your deceased father…

    (assuming your father didn’t execute a last will and testament during his lifetime)…

    The ownership with respect to the properties passes on to you and your brother.

    Which means that… you and your brother are joint co-owners of the parcel of land and the warehouse therein situated as an improvement.  

    And hence, nobody can sell, dispose, lease, mortgage or encumber this particular property without the concurrence of both you and your brother.

    Having said that…

    If your brother didn’t secure your consent before mortgaging the property…

    Then the mortgage is invalid insofar as your ½ share in the property is concerned.

  • The Law On Unethical Sales Practices

    In these trying times, even at the time of pandemic, a lot of fly-by-night “schemes” proliferate all over the country…

    Promising these schemes can be used successfully by anyone with little or no experience.

    Or that…

    These programs or services can make you money using the service in as little as a few hours per day or that it can be used profitably even by people who do it “part-time”…

    Lurking and waiting to prey on innocent Filipino consumers…

    And ganging up on them like a pack of wolves with their sugar-coated sales talk and false representations disguised as “overzealous marketing strategies”

    Fortunately, we have a law on this.

    Namely:

    The Prohibition Against Deceptive Sales Acts or Practices and Unfair or Unconscionable Sales Act or Practice under the Consumer Act of the Philippines (Republic Act No. 7394)

    If proven guilty, the penalties are…

    Fine or imprisonment of not less than five (5) months but not more than one (1) year or both, upon the discretion of the court.

    In addition, the court may grant an injunction restraining the conduct and/or actual damages and such other orders as it thinks fit to redress injury to the person caused by such conduct.

    Hence, consumers can’t just be robbed in broad daylight of their hard-earned money

  • COVID-19 Vaccination For Your Employees

    Department of Labor and Employment Labor Advisory No. 3 Series of 2021 issued 12 March 2021 stated that…

    Covered establishments and employers shall adopt and implement the appropriate vaccination policy in the workplace.

    Many biz owners have asked me:

    QUESTION: Does it mean that I should issue a policy requiring my employees to get vaccinated?

    ANSWER: No. A no vaccine, no work policy is PROHIBITED.

    In fact, you cannot discriminate against those who refuses or fails to be vaccinated in terms of tenure, promotion, training, pay and other benefits, among others, or terminated from employment.

    However, what you can do is to ENCOURAGE them to get vaccinated.

    QUESTION: Does it mean that I should cover the expenses for vaccination?

    ANSWER: No. However, if you have the means to cover the expenses, then by all means you MAY procure COVID-19 vaccine, supplies and other services.

    You MAY also seek the support of appropriate government agencies in the procurement, storage, transport, deployment and administration of these vaccines.

    QUESTION: If I encourage my employees to get vaccinated, can I charge the cost to them?

    No. Deductions of the cost of vaccination from the wages / salary of the employees is PROHIBITED.

  • Can Your Surname Be Used By A Child That Is Not Yours?

    QUESTION:

    I duly acknowledged a child born from a previous relationship. We were never married. I supported her and the baby throughout (from the time she was pregnant, up to the time the baby was born and up to present time). The baby used my surname. However, doubts about paternity kept bugging me, and I was genuinely tortured by the possibility. We took the DNA test. As it turned out, I am not the father. Now, my question is, can the surname be reverted back to the child’s mother?

    ANSWER:

    Yes, considering the lack of blood relations between you and the child.

    Under our law…

    The surname to be used by an illegitimate child – or one that’s born outside of wedlock…

    Is principally the surname of the mother.

    If there’s an acknowledgment, the child can use the father’s surname.

    Conversely, the surname to be used by a legitimate child…

    Is principally the surname of the father.

    If there’s a proper and reasonable cause, the legitimate child can use his or her mother’s surname.

    So, going back to your case…

    The answer is yes, it’s possible to compel the child to no longer use your surname considering the lack of blood relations.

    However, you must file a petition in court for this to prosper.

    As a side note: 

    The rule that a legitimate child can use his or her mother’s surname, as long as there’s a JUSTIFIABLE REASON (proper and reasonable cause) for it was reiterated in a recent decision of the Supreme Court entitled Alanis v. Court of Appeals, G.R. No. 216425, 11 November 2020

  • Can Child Born Outside Wedlock Use Father’s Surname?

    QUESTION:

    Aldrin, me and the mother of my 6 year old-child aren’t married. However, I want my son to use my surname. Does the law allow this?

    ANSWER:

    Yes, the law allows this (Republic Act No. 9255).

    What you need to do…

    Is to execute a Sworn Statement or Sinumpaang Salaysay in the form of an Affidavit to Use the Surname of the Father (AUSF)…

    Narrating the facts involved…

    And including a statement that you acknowledge the child as yours, and that you permit such child to use your surname…

    Finally, praying that the same be reflected in the child’s birth certificate:

    If the child is a minor, of course, the person who’ll represent his or her interests is the mother.

    In which case…

    The mother shall also execute a Sworn Statement (Sinumpaang Salaysay)…

    Narrating the facts involved…

    And including a statement that as the mother… she’s conforming to the child’s use of the father’s surname.

    Afterwards, these Sworn Statements should be submitted to the Local Civil Registrar.

     Then, it will proceed from there