Formal Requirements in Donating Real Property in the Philippines

What are the formal requirements for a donation of real property to be valid?

1. It must be made in a public instrument. Meaning, the deed of donation must be notarized.

2. Specify in the deed of donation the description of the property to be donated. You can find the property description in the Title.

3. Specify in the deed of donation the value of charges* which the donee must satisfy, if any.

4. The donee must specify his acceptance of the donation in the same deed of donation or in a separate public document.

5. If the acceptance is made in a separate public document:

a. the donor must be notified of such acceptance; and

b. the fact that the donor was duly notified must be noted in the deed of donation and the deed of acceptance.

(Basis: Article 749 of the New Civil Code)

*What is the significance in specifying in the deed of donation the value of charges?

To determine the classification of the donation.

What are the classifications of donation?

1. Simple donation

The cause of donation is pure liberality (no strings attached).

2. A remuneratory donation

When the donee gives something to reward past or future services or because of future charges or burdens, and the value of said services, burdens or charges is less than the value of the donation.

3. Onerous donation

When the donation is subject to burdens, charges or future services equal (or more) in value than that of the thing donated.

(Reference: Edgardo L. Paras, Civil Code of the Philippines Annotated, 11 ed., Vol. 11, p. 726)

What is the effect of classifying donations?

For onerous donations, it shall be governed by the rules on contracts.

For remuneratory donations, the amount of the burden imposed shall be governed by the rules on contracts and the excess shall be treated as donation.

(Basis: Article 733 of the New Civil Code)

What is the effect of donations being governed by rules on contracts?

The formalities required under Article 749, as enumerated above, shall not be applicable.

What is the next step after completing the formal requirements?

1. Pay the Donor's tax with the Bureau of Internal Revenue.

2. Pay the Transfer Tax with the Treasurer's Office.

3. Apply for new Title with the Registry of Deeds.

4. Apply for new Tax Declaration with the Assessor's Office.

For a more detailed guide on how to do this, you may refer to our article entitled "Guide on How to Transfer Title of Real Property".

Email for assistance in documentation and processing of Transfer of Title, Land Use Conversion, Replacement of Lost Title, Extrajudicial Settlement, and Title Verification.

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