10/12/2025
๐ HOW TO SELL A PROPERTY WHEN THE OWNER IS ALREADY DECEASED โ WHAT YOU MUST DO FIRST
Because selling without the right process is illegal, risky, and impossible to transfer.
Many Filipino families want to sell a property that belonged to their parents or grandparents.
But when they check the titleโฆ
Itโs still under:
Lolo, Lola, Mama, Papa โ who already passed away.
And thatโs when the harsh truth hits:
๐ A property CANNOT be sold if the owner on the title is already deceased.
๐ A buyer cannot get the title.
๐ Banks will not approve a loan.
๐ The Deeds office will refuse to transfer.
Before any sale, these legal steps MUST be done first.
1๏ธโฃ SETTLE THE ESTATE TAX FIRST
This is the non-negotiable step.
The BIR requires:
โข Notice of death
โข Estate tax return
โข Tax computation
โข Payment of estate tax (or proof of exemption)
Only after this will BIR issue the Authority to Register (ATR) โ
the document REQUIRED before any buyer can transfer the title.
Without ATR = no sale, no transfer.
2๏ธโฃ PREPARE THE EXTRAJUDICIAL SETTLEMENT (EJS)
All heirs must sign a notarized EJS stating:
โข Who the heirs are
โข Agreement between heirs
โข How the property will be sold or divided
If one heir refuses, the property cannot be sold.
If an heir is abroad โ you need a Consularized SPA.
If an heir is minor โ you need court approval.
The EJS is the foundation of the entire sale.
3๏ธโฃ TRANSFER THE TITLE TO THE HEIRS FIRST (OR DIRECTLY TO THE BUYER)
After paying estate tax and notarizing the EJS, heirs can choose:
Option A: Transfer title first to the heirs
Then heirs sell to buyer.
OR
Option B: Directly transfer from deceased owner โ buyer
This saves time if all documents are complete.
Both options require:
โข BIR Certificate Authorizing Registration (CAR)
โข Authority to Register (ATR)
โข Transfer documents
โข Updated tax declaration
Only then can the Registry of Deeds issue a new title.
4๏ธโฃ COMPLETE ALL REQUIRED DOCUMENTS
Hereโs what buyers, lawyers, and the Registry will look for:
โ Death Certificate
โ Birth & Marriage Certificates of heirs
โ IDs of all heirs
โ Updated tax declaration
โ Real property tax clearance
โ Notarized EJS
โ SPA if an heir is abroad
โ Certified true copy of title
โ BIR estate tax papers
Any missing item = delay or cancellation of sale.
5๏ธโฃ AGREE AMONG HEIRS ON THE TERMS OF SALE
Before offering the property to buyers, heirs must agree on:
โข Selling price
โข Distribution of proceeds
โข Who will handle paperwork
โข Who pays for expenses
โข Who deals with agents
Family conflict is the #1 reason sales collapse.
๐ก SO WHY DO MOST PROPERTIES FAIL TO SELL?
Because families skip the basics:
โ Estate tax not paid
โ No EJS
โ Title still under a deceased owner
โ Heirs abroad cannot sign
โ Family disagreements
โ Missing documents
โ Property is โdead capitalโ
The good news?
Every single one of these problems is fixable with the right guidance.
๐ Need help preparing EJS, settling estate tax, or selling inherited property?
โ ๏ธ DISCLAIMER:
This post is for educational and general informational purposes only. It does not constitute legal, tax, or financial advice. Please consult licensed professionals and appropriate government agencies for official guidance.
