Inherited and estate property

You cannot sell what is not yet yours

A deceased owner's property passes to the heirs by law, but the title stays in the deceased's name until the estate is settled. A buyer cannot take a clean title until the estate tax is paid and the transfer documents exist — so the seller's first job is not listing, it is settling.

Two paths exist: an extrajudicial settlement (all heirs agree, no disputes, no unpaid debts the estate cannot cover — settled by a notarised deed published in a newspaper) or a judicial settlement when heirs disagree or creditors are involved. The extrajudicial path is faster and cheaper, but needs every heir's signature.

Estate tax — the gate before transfer

The BIR charges estate tax on the net estate — a flat 6% under the TRAIN law, with a standard deduction and a family-home deduction that soften most ordinary estates. Filing is due within a year of death, and amnesty programs have periodically reopened old unsettled estates — check current BIR rules, because the amnesty windows come and go.

Only after the BIR issues its clearance can the Registry of Deeds retitle the property to the heirs (or directly to a buyer). The tax declaration and title then carry the heirs' names, and only then is a normal sale possible.

Selling with multiple heirs

Co-owned property needs every heir to consent — one refusing signature blocks the sale, and a deed signed by fewer than all owners sells only their share, which almost no buyer wants. Heirs abroad sign through a consularised SPA. Price and split expectations should be agreed in writing among the heirs before the home lists; mid-sale inheritance disputes are how listings stall for years.

A note of caution

Estate sales sit at the intersection of family law, tax and property registration — this page is an honest orientation, not legal advice. A lawyer and an accountant who handle estate settlements will save you months; the fees are small next to a voided sale or a penalty-laden late estate filing.