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Mother Title, Extrajudicial Settlements and Settlement of Estate

An Important Lesson To Learn.

Recently we were preparing to build a new home for a client when some one started putting “no trespassing signs” up on the lot. As you can well imagine this scenario is potentially one of the worst nightmares for any person who has bought and paid for a property in the Philippines. Once the dust settled, we found out the true story and sadly it does not paint a pretty picture.

Our clients were sold a portion of a mother title lot by one heir who claimed he had the rights to sell  a certain percentage of the land he had inherited from a deceased relative. When the clients relatives started clearing the land in preparation for the home construction, apparently numerous other heirs came out of the woodwork claiming that the heir who sold them their small lot form the mother title, did not have the right to do so. These other heirs then offered to sell the remaining portion of the lot at a greatly inflated price tag, 5 times what the clients had paid per square meter initially , and the heir that sold is no where to be found. What a mess!!

So what went wrong? Actually it is quite simple and something everyone should be aware of when buying property in Dumaguete and surrounding Negros Oriental, or ANYWHERE in the Philippines.

I should start by briefly and simply explain what is meant by a “mother titles”. In legal terms it is the original title that has been issued on the property, and acknowledges the very first owner of the title land. In practical terms, what a potential buyer should know is that in all likelihood, that “original” owner is long deceased and the ownership of that property sits with all the descendants and heirs of that “original” owner. If you are seeing a mother title now, it usually means that the heirs never followed through on legally dividing the property into their inherited sub lots. Also, more often than not, there have been several generations of heirs that also never legally registered and titled their sub-properties. Putting aside the whole other issue of estate taxes (which I will deal with in another article) the problem is that if you buy a sub portion of a titled lot, you have to get every single heir and sub heir from the original owner on down that has an interest in the property, to sign off on the Deed of Absolute Sale of the portion of the property you are purchasing. The only , and by far the simplest way around this is if there is a settlement of estate of the original owner(s) with an extra-judicial settlement document and assignment of which  portion of the property, which heir owns. This documentation MUST include  a sketch plan and technical description of the portion each heir is inheriting.

To make a long story short, if you intend to buy a piece of property, and the person selling it to you is NOT the owner named on the title, you better do a whole lot of very in depth due diligence. If it turns out the the person listed on the title is deceased, the first thing you need to do is research the family tree to find out every single last one of the heirs, and what their interest may be in the property being offered to you. Once you know that, if there is an extrajudicial settlement of estate, you can compare the signatories on that to the list of heirs you have found through your research. If that all matches, then and only then should your proceed with your next crucial stages of due diligence, one of which is ensuring all the estate taxes have been paid.

As a conclusion to the story of our client, the one saving factor is that the person who sold them the sub-portion of the mother titled lot, also signed off all rights to them in terms of his portion of the property. They can file an adverse claim on the property and have that annotated on the title so that before the property or any portion of it is sold, they have to sign off, and receive that heirs percentage of the proceeds. In the end, considering that they purchased at about 25% of the true value of the property, when the lot is sold they might even make a nice tidy profit. The only question is when that will happen.

(25) Comments

  1. jeniffer

    on   said 

    hello po. tanong ko lng namatay na po ang mama ko w/c is sa kanya po nakapangalan ang mother title ng lupa namin namana nya po yun sa ama nya (lolo po namin).. 3 po kami magkakapatid ang buhay pa po ang papa ko. . problema po namin is hindi po namin alam ang proseso ng lupa po namin kasi 3/4 po na lupang pagmamay.ari ng late mother ko is nabenta napo at ang iba installment ang bayaran.. na declare na po namin sa b.i.r na patay na po ang mama namin… pwd po bang humingi ng advise anong fdapat po naming gawin para maayos ang lupa po namin ngayong wala na ang ina namin..? looking forward po sa reply nyo..salamat!

  2. Victoria Enriquez

    on   said 

    Hi Mam Shirley,
    Mayisa po kasing isang tao na naka mana ng 25 sq meter na lote pero namatay na eh may mga anak. Gagawan ko po sna ng extrajudicial settlement of estate. Pano po kaya gwin yun. Ang buong area po 150.00


  3. Paulo

    on   said 

    Mai subdivide po ba ang property kahit nasa america yung original title. Possible po ba mag ka title lahat ng taga sa anim kahit wala nasa america yung original title

  4. gord

    on   said 

    Yes you can do the subdivision without the original title, but you would not be able to get the new titles without the original title in hand.

  5. Cheska Natividad

    on   said 

    What should i do if i wanted to buy a house. The case is the mother sell house and lot and the title is under her name but it’s already undergone judicial partition but her children is not living in that house because they already have a house cause they are all maried? What should i do in order to acquire that house and lot?

  6. Rose Darren Rayos

    on   said 

    Hi Ms. Cheska. If the mother is selling the house and it is under her name…
    She can directly sell the house and lot to you…
    Please check the title if she is the real owner then get primary id’s from her.
    May I know your location Mam.
    or pls contact me here….09274884177/09303150931
    I am a surveyor’s secretart/processor that’s why i have a knowledge in processing paper for buying and selling of properties.

  7. perl

    on   said 

    Good day po!

    Ask lang po bumili po ako ng bahay at lupa sa nag loan sa Pag ibig Fund. meron po kming dokumento Deed of Sale and Transfer of Rights at saka SPA.

    Kame napo ang nagbayad sa simula ng maloan nila ang bahay. Nagbabayad po kame under the borrowers name pero kame ang nagbabayad at may handle ng mga papels sa pag ibig.
    Ang problema ponaghahabol ang mga anak ng borrower . at kame po ay hina haharass pilit kaming pinaalis sa bahay na tirnan namin na binenta ng tatay nila. dahil anak daw sila at may habol sila kase pangalan pa ng tatay nila ang nakalagy dun sa pag ibig.
    ano po ba ang ma i advice nyo sa akin.

  8. namatay napo ang nagbenta ng property ang problema naghahabol ang mga anak. dahil sila daw ang beneficiaries. ang bahay na nabenta ay loan sa pag ibig at ako ang nagpatuloy ng pagbabayad sa simula pa hanggang sa ngayon. Meron po kaming Deed of Sale at Transfer of Rights at SPA.

    Di ko na po itinuloy ang pagbabayad sa pag ibig dahil ginugulo kame ng mga anak ng nmatay …
    ano po ba ang aking gagawin

  9. Gusto ko po sana bilhin ang lupa ng nanay ko. Ang title ay nakapangalan sa nanay ko. Sabi sa akin ng napagtanungan ko di din dw mailipat sa pangalan ko kc pangalan ng nanay ko tpos married tatay ko. Nid dw muna i settle ang state tax ng tatay ko kc patay n bago mailipat sa akin ang land title. Papano po b gagawin ko?

  10. Reychelle

    on   said 

    Hi po, tanong ko kung kung may ng ooffer ng lupa mother title pero may extrajudicial for titling na dw po un. sila sasagot ng CGT, commission ng agent, state tax na po ba tong bilhin at ano2x p po ang process on my part at ano ang panghahawakan kong documents when i buy it?

    thanks po

  11. Janelle

    on   said 

    Valid po b n ibenta lht ng ttay ko ang isang estate ng ama nila n hindi pipirma ang knyang mga kapatid?ang lupa po ay nkapangalan sa grandfather ko at hindi po sa tatay ko. Ang tanong po pwede po b ibenta ng tatay ko ang property n mag isa lng niang pipirma at ung 7 niang kaptid ay hindi na pipirma?

  12. Hello, ask ko po if magpapa transfer kami ng potion ng lupa from the Mother title, kailangan ba na lahat ng heirs ay magpapa partition nadin? o pwedeng kami muna? wala kasing balak yung iba na gawin yun ee..

  13. joytaporco

    on   said 

    hi po..ask lng po.ako..posible po ba na divided na ang mother title if ang lote po ay by blocks na? kasi po hndi nmn lahat dto nkabili..squat nga po yung iba.kmi po nkabili lmg ng rights.anga ktabi po nmin ay my title na dw kc bayad sila.

  14. Maribel Sibug

    on   said 

    Good pm po. May gusto po sana kaming bilhin na portion ng lupa kaso naka mother title pa po. Ang ibibigay pa lng po nila e deed of sale. Anong mga process p po ang gagawin upang maipangalan sa amin po yung lupa. Pls. Advise po. Thanks much

  15. jackie

    on   said 

    hi good day po… may plano po kmi bumili ng house and lot pro po may mother title pa po un. ano po ba pwd namin gawin bilang paunang hakbang po. kc po installment basis po ang kontrata namin. bale bibili lng po kami ng portion ng lot ngayon gusto namin ma assure n ung nagbebenta sa amin tunay n may-ari ng lupa. Given po na totoo nga po isa sya s may -ari at may naipakita nmng SPA anong po bang susunod n hakbang? lalo na po ung sa concern about taxes. sa downpayment po ba nmin dpt po ba na bayad n nila yung mga taxes makakapagprovide na po ba sya dapt ng mga OR sa amin ? thanks hoping for you response.

  16. William Tierra

    on   said 

    Magkano po kaya abutin ang pagpa-divide ng mother title into 11 siblings. May blue print na po kami nung hatian. Iyong land po ay nasa 500 sq meters. Salamat kung masabihan nyo kami kung ano ang mga next steps at estimate ng magagastos pa.

  17. Hi po paano naman po kung ang mother title ay belongs to 38 na tao farmers association, and gusto na namin magkaroon ng title? Pero ayaw ipahiram ang mother title for no apparent reason or probably ayaw nila kami magka title wala ba kami pwede gawin?

  18. Trisha

    on   said 

    Hi, ask lang po . Is it okay na deed of sale lang yung hawak kong document as an evidence na binili ko yung lupa? Or should I require the seller to give me the land title ?

  19. yuki

    on   said 

    gud day sir/madam balak ko ipa subdivide sa walo yung 2 hectares na lupa q TCT po ang title at updated s amilyar, sa walong tao ko po ipapangalan, gaano kaya katagal ang approval nito. at nasa magkano ang uubusin. kumpleto

  20. Rheaa

    on   said 

    Hello po, yung father po kasi ng lolo ko ay namatay at may naiwan po siyang lupa para po sa mga anak niya w/c are my lolos and lolas (8 po silang magkakapatid), paano po mahahati ang lupa kung dalawa na po sa kapatid ng lolo ko ang namatay at parehas po silang walang pamilya at anak. at naka mother title pa po ang lupa? thank you po

  21. Miya mikee MALLARI

    on   said 

    Hello po balak po sana ng father ko na magpatitulo ng subdivide lot from mother title na nakapangalan pa sa lola ko na patay na ngayon. Kailangan po ba na lahat ng portion na ididivide is need ng kumuha din ng srailing titulo o kahit kami lang po kais parang wala naman silang balak na ipa subdivide e. Ang gusto kasi ng father ko is maisettle ang lahat atlis kung mawala man daw sila ay okay na at maayos na lahat anu po kayang maaari naming gawin?

  22. Onofre Caranza

    on   said 

    Ask ko lng po,paano po ba ang proseso,balak ko bumili ng portion lng po ng lupa n nka mother title lng po,ung mother title po ay nkapangalan s magulang ng ngbebenta,uto ay pamana sa kanilang magkakapatid,kung sakali po,pwede po ba ito iparehistro s pabgalan ko,
    Sna po mapayuhan nyo aqu,
    Maraming salamat po

  23. Maria

    on   said 

    What happens if i buy a piece of lot that still has a mother title?. How will i know if the taxes were paid?. I was told that since the inheritance tax cost millions, it wouldn’t be possible for me to have a title.

  24. neil

    on   said 

    Good day mam pwd po mag tanong if ano legal action sa case namin kasi ung properties is mother title pa at hawak namin ngaun ung original pero gsto e claim ng kapatid ng papa ko na cxa daw ang may karapatan kung bibigyan daw kami ng share o hindi kasi nag past away na si papa gsto nya e claim lahat. ung pinagawa namin nga bahay para pa rentahan sana pina upahan nya na at ung plan ko sana tayoan negosyo na d ko na tinuloy kinuha nya pa dn we bring this up sa barangay na. kaso lagi papa re schedule cxa. sana ma tulongan nyo po kmi thanks in advance

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