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.
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