CONTRACT OF SALE (Article 1458 of the Civil Code)

By the contract of sale, one of the contracting parties obligates himself to transfer the ownership of and to
deliver a determinate thing, and the other to pay therefore a price certain in money or its equivalent.

The elements
(a) consent or meeting of the minds, that is, consent to transfer ownership in exchange for the price;
(b) determinate subject matter; and
(c) price certain in money or its equivalent.5
:
CONTRACT TO SELL (art 1479 of the Civil Code)
[A] bilateral contract whereby the prospective seller, while expressly reserving the ownership of the subject
property despite delivery thereof to the prospective buyer, binds himself to sell the said property exclusively to
the prospective buyer upon fulfillment of the condition agreed upon, that is, full payment of the purchase price.

In a contract of sale, the title to the property passes to the buyer upon the delivery of the thing sold, whereas in
a contract to sell, the ownership is, by agreement, retained by the seller and is not to pass to the vendee until
full payment of the purchase price.6

DEED OF SALE

A deed of sale is also called a property title. It is an authentic deed drafted and signed by a public officer,
generally a notary, which makes mention of the legal situation of the building and its nature. For more
definitions, consult the real estate glossary of leshypotheques.com.

A deed is used solely for the transfer of real property. The deed lists the address, or other identifying features,
used to locate the property, as well as the two parties to the transfer. Traditionally, the deed also contained any
promises the buyer and seller made to each other as part of the transfer, such as the purchase price and any
restrictions on use of the property. However, the modern practice is to immortalize these promises in a
separate contract of sale, which is then referenced in the deed.

Absolute Sale Deeds

The deed of absolute sale is used in many real estate sales. A deed is a document that states that one party is
transferring his real estate property rights to another. The deed proves the transfer, but, if properly recorded
with the county recorder, it serves to give other prospective purchasers notice that all of the seller's rights in the
property have now passed on to another party. An "absolute sale" deed is defined by having no conditions
attached to the sale except the buyer's payment of the purchase price. When the seller signs and delivers the
absolute sale deed, this is generally recognized by law as the moment of sale.
Deed Requirements

To be valid, an absolute sale deed must clearly describe the property being transferred, either by address or
other distinguishing information. The deed must also clearly identify the seller and purchaser, the date on
which the transfer becomes legally effective, and pertinent information such as the purchase price. In modern
real estate transactions, the parties often get around trying to cram all of this information into the deed by
having an ancillary real estate sales contract. However, the deed must reference the information contained in
the contract.
ASSIGNMENT
Assignment is slightly different from an outright transfer. An assignment occurs when two parties are in a
contractual relationship and one party wants to give all of his contractual rights to a third party and entirely
remove himself from the contract. The new party, known as the "assignee," effectively replaces the old
contracting party, taking on not only his rights under the contract, but his obligations as well. Typically, unless
the original contract states otherwise, both of the parties to the original contract must approve an assignment
before it can take place.
Deed of Assignment

The deed of assignment is the document used to transfer the contracting party's rights. The parties may also
choose to accomplish assignment via an assignment contract. In real estate, the deed of assignment often
shows up in mortgage transactions. Mortgage lenders hold certain rights to property, notably the right to
foreclose if the borrower fails to make payments. Lenders frequently wish to sell their rights in a piece of
mortgaged property to, or purchase mortgage rights from, another lender. A mortgage lender uses a deed of
assignment to "assign" its rights in the property to another lender.

CERTIFICATE OF TITLE
Generally, a certificate of title is a state-issued document that proves ownership of property. Certificates of title
can be used for both real property (land) and personal property (possessions). The certificate will generally
contain the property owner's name and address, as well as some identifying features of the piece of property,
such as a vehicle's license plate number or the address or location of a piece of land. However, sometimes the
property is encumbered, meaning that someone else may have potential rights to the property (for instance, if
another party holds a mortgage on the property or lien on a vehicle). If this is the case, the certificate of title will
list such encumbrances as well.
Title Insurance Uses

In real estate transactions, certificates of title can be especially important. When a title company issues a
certificate of title on a piece of real property, the certificate sets forth the title company's opinion that the seller
is, in fact, the owner of the piece of property. Because a piece of land, as opposed to personal property, cannot
be picked up and given to someone else, it's more difficult to determine who "owns" real estate; just because
someone is living on the property doesn't mean he's the owner. Therefore, the title company's certificate of title
says the company has done a full background check on the ownership of the land and certifies that the person
selling actually has the right to sell.
Deed of donation; acceptance by donee; defective notarial acknowledgment.

[G.R. No. 132681. December 3, 2001]

RICKY Q. QUILALA, petitioner, vs. GLICERIA ALCANTARA, LEONORA ALCANTARA, INES REYES and JOSE REYES, respondents.

Under Article 749 of the Civil Code, the donation of an immovable must be made in a public instrument in order to be
valid,[7] specifying therein the property donated and the value of the charges which the donee must satisfy. As a mode
of acquiring ownership, donation results in an effective transfer of title over the property from the donor to the donee,
[8] and is perfected from the moment the donor knows of the acceptance by the donee, [9] provided the donee is not
disqualified or prohibited by law from accepting the donation. Once the donation is accepted, it is generally considered
irrevocable,[10]and the donee becomes the absolute owner of the property. [11] The acceptance, to be valid, must be
made during the lifetime of both the donor and the donee. [12] It may be made in the same deed or in a separate public
document,[13] and the donor must know the acceptance by the donee. [14]

In the case at bar, the deed of donation contained the number of the certificate of title as well as the technical
description as the real property donated. It stipulated that the donation was made for and in consideration of
the love and affection which the DONEE inspires in the DONOR, and as an act of liberality and
generosity.[15] This was sufficient cause for a donation. Indeed, donation is legally defined as an act of
liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.[16]

The donees acceptance of the donation was explicitly manifested in the penultimate paragraph of the deed,
which reads:

That the DONEE hereby receives and accepts the gift and donation made in her favor by the DONOR and she hereby
expresses her appreciation and gratefulness for the kindness and generosity of the DONOR. [17]

Below the terms and stipulations of the donation, the donor, donee and their witnesses affixed their
signature. However, the Acknowledgment appearing on the second page mentioned only the donor, Catalina
Quilala. Thus, the trial court ruled that for Violetas failure to acknowledge her acceptance before the notary
public, the same was set forth merely on a private instrument, i.e., the first page of the instrument. We
disagree.

The pertinent provision is Section 112, paragraph 2 of Presidential Decree No. 1529, which states:

Deeds, conveyances, encumbrances, discharges, powers of attorney and other voluntary instruments, whether affecting
registered or unregistered land, executed in accordance with law in the form of public instruments shall
be registrable: Provided, that, every such instrument shall be signed by the person or persons executing the same in the
presence of at least two witnesses who shall likewise sign thereon, and shall be acknowledged to be the free act and
deed of the person or persons executing the same before a notary public or other public officer authorized by law to take
acknowledgment. Where the instrument so acknowledged consists of two or more pages including the page whereon
acknowledgment is written, each page of the copy which is to be registered in the office of the Register of Deeds, or if
registration is not contemplated, each page of the copy to be kept by the notary public, except the page where the
signatures already appear at the foot of the instrument, shall be signed on the left margin thereof by the person or persons
executing the instrument and their witnesses, and all the pages sealed with the notarial seal, and this fact as well as the
number of pages shall be stated in the acknowledgment. Where the instrument acknowledged relates to a sale, transfer,
mortgage or encumbrance of two or more parcels of land, the number thereof shall likewise be set forth in said
acknowledgment. (underscoring ours).

As stated above, the second page of the deed of donation, on which the Acknowledgment appears, was signed
by the donor and one witness on the left-hand margin, and by the donee and the other witness on the right-
hand margin. Surely, the requirement that the contracting parties and their witnesses should sign on the left-
hand margin of the instrument is not absolute. The intendment of the law merely is to ensure that each and
every page of the instrument is authenticated by the parties. The requirement is designed to avoid the
falsification of the contract after the same has already been duly executed by the parties. Hence, a contracting
party affixes his signature on each page of the instrument to certify that he is agreeing to everything that is
written thereon at the time of signing.

Simply put, the specification of the location of the signature is merely directory. The fact that one of the parties
signs on the wrong side of the page, that does not invalidate the document. The purpose of authenticating the
page is served, and the requirement in the above-quoted provision is deemed substantially complied with.

In the same vein, the lack of an acknowledgment by the donee before the notary public does not

also render the donation null and void. The instrument should be treated in its entirety. It cannot be
considered a private document in part and a public document in another part. The fact that it was
acknowledged before a notary public converts the deed of donation in its entirety a public instrument. The fact
that the donee was not mentioned by the notary public in the acknowledgment is of no moment. To be sure, it
is the conveyance that should be acknowledged as a free and voluntary act. In any event, the donee signed
on the second page, which contains the Acknowledgment only. Her acceptance, which is explicitly set forth on
the first page of the notarized deed of donation, was made in a public instrument.

It should be stressed that this Court, not being a trier of facts, can not make a determination of whether Violeta
was the daughter of Catalina, or whether petitioner is the son of Violeta. These issues should be ventilated in
the appropriate probate or settlement proceedings affecting the respective estates of Catalina and
Violeta. Suffice it to state that the donation, which we declare herein to be valid, will still be subjected to a test
on its inofficiousness under Article 771,[18] in relation to Articles 752, 911 and 912 of the Civil Code. Moreover,
property donated inter vivos is subject to collation after the donors death,[19] whether the donation was made
to a compulsory heir or a stranger, [20] unless there is an express prohibition if that had been the donors
intention.[21]
LAST WILL AND TESTAMENT
A will is a legal document which is required to be in writing in a language or dialect known to the person who
makes it, he said Tuesday on Mornings at ANC.
The person who creates the will is called a testator, while recipients are called heirs. Strictly speaking, one only
becomes an heir upon the death of the testator.
Though other countries accept oral wills, Tenafrancia said that only written wills are accepted in the Philippines.
Under the law, any person 18 yearsold and above, and with a sound mind, is qualified to prepare a will without
the aid of a lawyer.
Two kinds of wills
The only major difference between the two kinds of wills is the form. Tenafrancia said that both notarial and
holographic wills may actually contain the same thing.
A notarial will requires at least three credible witnesses, and it should be acknowledged before a notary public
in order to ensure that it was made by the testator. Tenafrancia recommended the assistance of a lawyer
should one choose to make a notarial will, given its many legal techicalities.
Its full of formalities required by law, and if the formalities are not complied with, it would mean that the will
may not be allowed a probate, or it may not be considered valid. So it would be good if a lawyer advise you,
he said.
A holographic will, on the other hand, is entirely written, dated, and signed by the testator. This imposes less
demands when it comes to legal formalities on the part of the person creating the will.
Its simpler, its handwritten, Tenafrancia said.
Compulsory heirs
Tenafrancia said that although the testator can choose his heirs, the will he created cannot prejudice the
legitime, or forced share, of his compulsory heirs.
The law has reserved portions of the testators estate to compulsory heirs, which are: legitimate children or
descendants, legitimate parents or ascendants, surviving spouse, and illegitimate children.
In other words, the testator cannot disinherit leave out the compulsory heirs without sufficient legal cause.
Should they be disinherited, however, it must be stated in the will that the testator has created.
The law provides for the grounds for disinheritance, and common grounds for disinheritance of the children or
the spouse would be if the person is found guilty of attempting on the life of the testator, or if the person
disinherited was accused by the testator of having committed a crime of which the penalty prescribes six years
or more. For children if they have maltreated the testator by word or deed during their lifetime, Tenafrancia
said.
Making a will
In making a will, Tenafrancia stated that the testator can include any prerequisite for a inheritors acquisition of
his wealth, provided that guidelines stated in the civil code should are followed.
Our law in succession is based on the old Spanish civil code so it probably survived from that era. A testator
can put in a tradition, for example, that the surviving spouse shall not marry again, he said.
However, the testator cannot include as a requirement that the heir should first commit an illegal, immoral, or
any act against the law in order to get his share of the estate.
Tenafrancia added that although the testator can pass on all that he owns to his inheritors, this does not
include debts and obligations.
After the testator dies, a probate proceeding may be initiated in court to determine the validity of the will that
the testator may have created.
If the will is ruled to be invalid, the inheritance will take place under the laws of intestacy as if a will was never
made. In this process, Tenafrancia said that the law will decide how to dispose of the deceased persons
estate.
Intestate succession happens when no will is made. It provides certain proportions to certain people. Its a
straightforward application of the provisions of the law.
When the will has been executed in accordance with law, then comes the settlement of claims. At this stage, all
heirs will be notified so they can get their share of the testators property. Tenafrancia said that this stage, taxes
and other expenses will be deducted from the testators property.
A notarial will includes the legal cost, for the notary public, for the lawyer who will assist the testator, and in
filing for the probate of a will, the rules of court provide for the estates where the property is not more than
P100,000 then the filing fees would be P3,500. For P400,000 of total properties, its about P6,500, he said.
 What is a Will?

At the most basic level, a will is a legal document which tells how a person wants to distribute his estate upon
his death.

The person creating the will is called the testator, and it must be written in a language or dialect that is known
to him.

Meanwhile, individuals who are set to be recipients of the wealth are called heirs. And the person named in the
will who is assigned to implement the provisions is called the executor.

In the Philippines, wills should be written (and cannot be in any other form, i.e., audio or video recording).
Moreover, any person 18 years old and above, with a sound mind, can prepare a will without the aid of a
lawyer.

Two Main Kinds of Wills

1. Notarial Will
o Requires at least three credible witnesses
o Acknowledged by a notary public that it was made by the testator
o and many other legal requirements
2. Holographic Will
o A will thats entirely handwritten, dated and signed by the testator
o much simpler and with less legal formalities and requirements

Wills and Compulsory Heirs

Compulsory heirs are legitimate children or descendants, legitimate parents or ascendants, surviving spouse,
and illegitimate children.

And its important to note that a testator cannot use a will to disinherit compulsory heirs without sufficient legal
cause.

Usually, accepted reasons for disinheritance are proven attempts to take the testators life, or receiving
maltreatment from the compulsory heirs, among others.

Short to say, there is a lot of legal notes here so its always best to just consult a lawyer if this is an important
concern for you.

Other Interesting Notes and Important Details

Did you know that in the Philippines, a testator can put in his will that his surviving spouse cannot marry
again?

A testator cannot require an heir to commit an illegal act in order to receive his inheritance.

All or any part of the testators remaining debts and obligations do not pass on to the heirs.

When a person dies without a will, inheritance distribution according to the laws of intestacy is followed.
 In the Philippines, a notarial will with estate property worth not more than P100,000 would incur filing
fees of about P3,500. This goes a bit higher as the total estate value increases.
 LAST WILL AND TESTAMENT

KNOW ALL MEN BY THESE PRESENTS:

I, ____name of testator_____ , Filipino citizen, of legal age, single/married to ___insert name of spouse if
any___, born on the ____th of ______________, ____ , a resident of __insert address__ , being of sound and
disposing mind and memory, and not acting under undue influence or intimidation from anyone,
do hereby declare and proclaim this instrument to be my Last Will and Testament, in English, the language
which I am well conversant. And I hereby declare that:

I. I desire that should I die, it is my wish to be buried according to the rites of the Roman
Catholic Church and interred at our family mausoleum in Manila;

II. To my beloved wife _____name of wife_____, I give and bequeath the following property to
wit:_________________________ ;

III. To my esteemed children, ________________________ and ______________________I give and

bequeath the following properties to wit:_______________________________ in equal shares;

IV. To my dear brother, __________________________I give and bequeath the following properties to
wit:_______________________________.

V. To my loyal assistant, __________________________I give and bequeath the following properties to

wit:_______________________________.

VI. I hereby designate ____name of executor_____ the executor and administrator of this Last Will
and Testament, and in his incapacity, I name and designate _____________________ as his substitute.

VII. I hereby direct that the executor and administrator of this Last Will and Testament or his
substitute need not present any bond;

VIII. I hereby revoke, set aside and annul any and all of my other will or
testamentary dispositions that I have made, executed, signed or published preceding this Last Will
and Testament.

IN WITNESS WHEREOF, I have hereunto affixed my signature this ________ day of _____________, 20__, in
________________, Philippines.

_______________________________________
(Signature of Testator over Printed Name)

ATTESTATION CLAUSE
We, the undersigned attesting witnesses, do hereby affirm that the forgoing is the last Will and Testament of
___name of testator___ and we certify that the testator executed this document while of sound mind and
memory. That the testator signed this document in our presence, at the bottom of the last page and on the left
hand margin of each and every page, and we, in turn, at the testator's behest have witnessed and signed the
same in every page thereof, on the left margin, in the presence of the testator and of the notary public, this
_____ day of __________, 20__ at____________.

______________________________ ____________________________________________
Signature of Witness Address
 ______________________________ ____________________________________________
Signature of Witness Address

______________________________ ____________________________________________
Signature of Witness Address

JOINT ACKNOWLEDGMENT

BEFORE ME, Notary Public for and in the city of ________________, personally appeared:

The testator ________________, with CTC No. __________ issued at ___________ on ____________;

Witness, ___________________, with CTC No. __________ issued at ___________ on ____________;

Witness, ___________________, with CTC No. __________ issued at ___________ on ____________;

Witness, ___________________, with CTC No. __________ issued at ___________ on ____________;

all known to me to be the same persons who executed the foregoing Will, the first as testator and the last
three as instrumental witnesses, and they respectively acknowledged to me that the same as their
own free act and deed.

This Last Will and Testament consists of __ page/s, including the page on which this acknowledgment is
written, and has been signed on the left margin of each and every page thereof by the testator and his
witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand the day, year, and place above written.

Notary Public

Doc. No. _____;

Page No._____;
Book No._____;
Series of 20__.
 HOLOGRAPHIC WILL

A holographic will is a will written, dated and signed entirely in the testator's own hand. That means, it's completely handwritten by the
testator himself (not typewritten or printed!) It's also valid as far as Philippine law is concerned and the formalities are not as stringent. It
is also called a "secret will" because it doesn't need to be signed by witnesses and notarized by a lawyer.

Formalities

1.) Written in a language known to the testator

2.) Entirely handwritten by the testator himself
3.) The will must be dated by the testator himself
4.) The will must be signed by the testator himself
5.) There must be animus testandi/intent to make a will
6.) It must be executed at at the time holographic wills are allowed

Probate of Holographic Wills

Like ordinary/notarial wills, holographic wills have to be brought into probate. In the probate of a holographic will, it is important to prove
that the signature and handwriting are the testator's; if not, the will is invalid. Regarding witnesses, their job is to prove that the
handwriting in the holographic will belongs to the testator. Remember the following:

1.) If the will is not contested/questioned, at least 1 witness is required to prove that there was no fraud present.

2.) If the will is questioned/contested, at least 3 witnesses are needed.

In both cases, if there are no witnesses available, experts may be called on.

Generally as an overview, an attested will is a form of will which requires your signature as the testator, together with the signature of at
least three witnesses who shall attest the execution of the will, which then must be notarized (Articles 805 and 806, Civil Code of the
Philippines). A holographic will on the other hand, requires that it should be entirely made in your handwriting which must also include
the date of its execution and your signature without the need for witnesses in its execution (Article 810, Ibid). In both cases, it is
required that the will must be written and executed in a language or dialect known to the testator (Article 804, Id.)

In detail, the Civil Code of the Philippines requires the following for the preparation of an attested will:

Article 805. Every will, other than a holographic will, must be subscribed at the end thereof by the testator himself or by the testators
name written by some other person in his presence, and by his express direction, and attested and subscribed by three or more
credible witnesses in the presence of the testator and of one another.

The testator or the person requested by him to write his name and the instrumental witnesses of the will, shall also sign, as aforesaid,
each and every page thereof, except the last, on the left margin, and all the pages shall be numbered correlatively in letters placed on
the upper part of each page.

The attestation shall state the number of pages used upon which the will is written, and the fact that the testator signed the will and
every page thereof, or caused some other person to write his name, under his express direction, in the presence of the instrumental
witnesses, and that the latter witnessed and signed the will and all the pages thereof in the presence of the testator and of one another.

If the attestation clause is in a language not known to the witnesses, it shall be interpreted to them. (n)

Article 806. Every will must be acknowledged before a notary public by the testator and the witnesses. The notary public shall not be
required to retain a copy of the will, or file another with the office of the Clerk of Court.

For the holographic will, the law requires that:

Article 810. A person may execute a holographic will which must be entirely written, dated, and signed by the hand of the testator
himself. It is subject to no other form, and may be made in or out of the Philippines, and need not be witnessed (Civil Code of the
Philippine).
EXTRAJUDICIAL SETTLEMENT OF ESTATE

Settlement of an estate need not undergo judicial proceedings all the time. Rule 74, Section 1 of the Rules of Court allows
the extrajudicial settlement of estate by agreement among the heirs.
Said Rule states:
Sec. 1. Extrajudicial settlement by agreement between heirs. If the decedent left no will and no debts and the heirs
are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose, the
parties may, without securing letters of administration, divide the estate among themselves as they see fit by means of a
public instrument filed in the office of the register of deeds, and should they disagree, they may do so in an ordinary action
of partition. If there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed in the
office of the register of deeds. The parties to an extrajudicial settlement, whether by public instrument or by stipulation in a
pending action for partition, or the sole heir who adjudicates the entire estate to himself by means of an affidavit shall file,
simultaneously with and as a condition precedent to the filing of the public instrument, or stipulation in the action for
partition, or of the affidavit in the office of the register of deeds, a bond with the said register of deeds, in an amount
equivalent to the value of the personal property involved as certified to under oath by the parties concerned and
conditioned upon the payment of any just claim that may be filed under Section 4 of this rule. It shall be presumed that the
decedent left no debts if no creditor files a petition for letters of administration within two (2) years after the death of the
decedent.

The fact of the extrajudicial settlement or administration shall be published in a newspaper of general circulation in the
manner provided in the next succeeding section; but no extrajudicial settlement shall be binding upon any person who has
not participated therein or had no notice thereof.

However, extrajudicial settlement of estate cannot be resorted to every time. There are conditions which must be satisfied
such as:
1.The decedent left no will
2. The decedent has no debts or his debts have been fully paid.
3. The heirs are all of legal age or the minors are duly represented by their judicial or legal representatives.
4. A public instrument is duly executed by the heirs and filed with the Register of Deeds.

Extrajudicial settlement of estate is often recommended to expedite the transfer of properties of the decedent to his heirs.
This is in view of the fact that judicial settlement of estate takes years before the case is concluded. Furthermore, this is
more adversarial and is resorted to when the heirs disagree on the properties to be partitioned and the corresponding
shares of the respective heirs.

An extrajudicial settlement of estate is done by executing an Extrajudicial Settlement Among Heirs. This is a legal
document specifying:
1. Compliance with the legal conditions for an extrajudicial settlement
2. Description of the properties to be extrajudicially settled (title number, value, location, lot size, technical description,
etc.)
3. Nature of the property (if conjugal property)
4. Name of the heirs
5. How the properties shall be divided amongst the heirs.
6. Posting of a bond if there is personal property involved.
7. Undertaking that the Deed will be published in a newspaper of general circulation once a week for 3 consecutive
weeks.
It must be noted that the Deed of Extrajudicial Settlement must be published in a newspaper of general circulation once a
week for 3 consecutive weeks. Kindly consult with the Register of Deeds where the property is located for the listing of
these newspapers.

Before filing the Deed of Extrajudicial Settlement with the Register of Deeds where the land is located, it is necessary that
the estate taxes be paid first. Under Philippine laws, estate tax is defined as a tax on the right of the deceased person to
transmit his estate to his lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by
law as equivalent to testamentary disposition. According to the Bureau of Internal Revenue, estate tax is not a tax on
property but rather imposed on the privilege of transmitting property upon the death of the owner.

It bears great emphasis that the Estate Tax Return must be filed within six (6) months from the decedents death. The
deadline may be extended by the Commissioner of the BIR, in meritorious cases, not exceeding thirty (30) days. It must
be noted that the estate itself is assigned its own Tax Identification Number (TIN). The Estate Tax Return is filed with
Revenue District Office (RDO) having jurisdiction over the place of residence of the decedent at the time of his death.

If the decedent has no legal residence in the Philippines, then the return can be filed with:
1. The Office of the Revenue District Officer, Revenue District Office No. 39, South Quezon City; or
2. The Philippine Embassy or Consulate in the country where decedent is residing at the time of his death.

Furthermore, the estate tax shall be paid at the time the return is filed. However, upon request and if the Commissioner of
the BIR finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship upon the
estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years,
in case the estate is settled through the courts or two (2) years in case the estate is settled extra-judicially. If an extension
is granted, the BIR Commissioner may require a bond in such amount, not exceeding double the amount of tax, as it
deems necessary.
The estate tax is based on the value of the net estate as follows:
1. If not over P200,000, it is exempt
2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000
3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the excess over P500,000
4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of the excess over P2,000,000
5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of the excess over P5,000,000
6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000

The basis shall be the net estate. That means that there are allowable deductions on the estate. These deductions include
funeral expenses, share of the surviving spouse, medical expenses incurred by the decedent within 1 year prior to his
death, family home deduction of not more than P1,000,000.00, standard deduction of P1,000,000.00, among others. It is
best to consult with an accountant on this matter to determine the accurate estate tax.

For extrajudicial settlement of estate, the following documents must be submitted with the BIR:
1. Notice of Death
2. Certified true copy of the Death Certificate
3. Deed of Extra-Judicial Settlement of the Estate
4. Certified true copy of the land titles involved
5. Certified true copy of the latest Tax Declaration of real properties at the time of death
6. Photo copy of Certificate of Registration of vehicles and other proofs showing their correct value
7. Photo copy of certificate of stocks
8. Proof of valuation of shares of stocks at the time of death
a. For listed stocks newspaper clippings or certification from the Stock Exchange
b. For unlisted stocks latest audited Financial Statement of issuing corporation with computation of book value per share
9. Proof of valuation of other types of personal property
10. CPA Statement on the itemized assets of the decedent, itemized deductions from gross estate and the amount due if
the gross value of the estate exceeds two million pesos
11. Certification of Barangay Captain for claimed Family Home
Other documents may also be requested by the BIR.

After the estate taxes have been paid, the heirs may proceed to the Register of Deeds where the land is situated. If the
Register of Deeds would allow it, the filing with the BIR and Register of Deeds may be simultaneous. The proof of
payment of the estate tax, Affidavit of Publication of the Deed, the Deed of Extrajudicial Settlement of Estate are the basic
requirements to be submitted to the Register of Deeds. When all pertinent documents are submitted, the Register of
Deeds will correspondingly issue the Transfer of Certificates of Title to the proper heirs.
On a final note, it must be borne in mind that the extrajudicial settlement can be nullified if it was done in fraud of creditors
or other rightful heirs. Furthermore, this can open the erring heirs to criminal liabilities.