Deed of Absolute Sale Notarized but Seller Died

Hi.
Ask ko lang po, what to do with our case?
The property was fully paid this March 2013, with Deed of Absolute Sale notarized. Seller died on May 2013.

How can the Buyer transfer the title? Does the property need to be included in the Estate of the Seller? If yes, who will shoulder the Estate Tax for the said property? The heirs of the Seller insist that the Buyer should pay for it.

Hoping for some clarifications.
Thank you.

Hello. meron po bang makakasagot sa kanyang katanungan? mukhang maraming tao ang napupunta sa ganitong sitwasyon. Any feedback can help somebody for this forum. thank you.

The owner of the property is responcible for the tax to the officials UNDEPENDING of if the unpaid tax is from before or after the transfer was done.

If you can demand the tax from the sellers is an other question. What do the sale contract say concerning tax?
Undepending of what the contract says, it can me hard to get money. That's why tax, title transfers and such better be done before/at the same time as transfering (some of the) pay for the property, so costs and depts can be cleared.

The rest I don't know, but I asume it's possible to go to court to get the title transfered by proove your part of the deal is done,
BUT such take long time, so better if you can make the heirs agree to transfer. Perhaps you can reach a compromise, if they don't agree it's their tax to pay. If you can't reach an agreement concerning the tax, then it's up to you if you want to go to court or pay the missing tax. Or you can try to skip to pay the tax (now) as rather many property owners do   IF it isn't demanded to get the title transfered, but then it will be your dept to RP. (=You sign a document to the selling family saying it's your tax dept, in exchange for they sign transfer the title, NOTE! make sure ALL needed sign the transfering to avoid such risks for problems in the future.)

thanks for the reply. hirap ng ganitong scenario. gumastos ka na ng malaking pera sa pagbili ng lupa tapos malamang gagastos pa ulit dahil sa estate tax.

mu54376 wrote:thanks for the reply. hirap ng ganitong scenario. gumastos ka na ng malaking pera sa pagbili ng lupa tapos malamang gagastos pa ulit dahil sa estate tax.

Yes. It's much money, but it's less than 1 % per year. I suppouse you bought the land to use it to earn money, so I suppouse you can earn much more than 1 % of the value.* Business profit taxes are much biger than 1 %, so the business profit taxes are a much biger problem to pay than real estate taxes.

* I send you a private message about it.

Good morning Dymphna,

Mar 2013 - You fully paid a property and you have the Deed of Absolute Sale
(duly notarized).

May 2013 - Seller died.

I suggest that you go to the Registry of Deeds and go ahead with the transfer of title
to your name.

You will be happy to know that you do not have any problem.

All you need is to complete the documentation to transfer said property to your name,
as you already have the notarized Deed of Sale.

 

@ Estate tax management;

hindi ho ba ito magkakaproblema kung patay na yung seller lalo na sa BIR? hindi na ho ba hahanapin yung seller sa BIR at sa Registry of deeds?

BIR will tell you what to do "step by step" how to transfer the title of your
property.

Hindi naman ikaw ang namatay.

If you need documents from the "seller's side", alamin mo muna, para
itanong mo ulit dito sa forum.

what i mean is hindi po ba illegal na makipagtransact ako (buyer) sa BIR to pay taxes kung patay na yung pumirma (seller)?

Good morning mr54376!

A. It is not illegal to deal with BIR regarding your concern, where the seller of
the property you bought died after you fully paid and had the Deed of Sale
notarized.

B. Your problem is, you were not able to transfer the title of the property to your name.

Since the Seller (who died May 2013) still has the title of the property to his name,
his heirs should file his Estate Tax Return.

This has requirements to comply with and if this is accomplished, you need to request
a copy of the Estate Tax Clearance (from the heirs) which you need to present to BIR
to go through the process of transfer of title to your name.

This process will end with the Registry of Deeds to transfer the title
to your name.

You also need to go to Assessor's Office to transfer the Tax Declaration
to your name.

C. Estate Tax

The heirs of the seller should file the Estate Tax Return (with BIR) and has the
obligation to pay the Estate Tax, if any.

Whether there is an Estate Tax, depends on the valuation of the estate of the
deceased (seller). There is a table for this.

I hope this helps.
Please feel free to ask again.

ok thank you po. last question... pwede ba na hindi na bayaran yung estate tax since na notarized na naman yung sale before death? bayaran na lang namin yung cap gain at doc stamps sa BIR pg nagkapera na ulit kami.kami kasi ang magbabayad lahat ng tax as mention sa deed of sale since mura lang nmin nabili. legal ho ba ito?

Estate Tax Management wrote: C. Estate Tax

   The heirs of the seller should file the Estate Tax Return (with BIR) and has the
   obligation to pay the Estate Tax, if any.

   Whether there is an Estate Tax, depends on the valuation of the estate of the
   deceased (seller). There is a table for this.

Yes, but it's rather common people don't pay the estate tax
That's why I suggested think of if want to pay the tax himself to not get stucked in the title transfer process, IF they refuse (and perhaps demand it from them later in a separate process).

"ok thank you po. last question... pwede ba na hindi na bayaran yung estate tax since na notarized na naman yung sale before death? bayaran na lang namin yung cap gain at doc stamps sa BIR pg nagkapera na ulit kami.kami kasi ang magbabayad lahat ng tax as mention sa deed of sale since mura lang nmin nabili. legal ho ba ito?"
(Not sure if I understood.)
In the eyes of tax people, the new owner will be demanded of old taxes too.
But if you want you can try demand that tax from the hiers IF it's from BEFORE you bought it and the buying contract don't say you will pay it.
But if the tax is from AFTER you bought it, I suppouse it's your tax to pay (at leat if you have got access to USE the real estate).

There will be no problem to transfer the title as long as the capital gaintax is paid. if the capital gaintax was not paid, you as the buyer should oblige the seller or seller representative or heir to pay the capital gain tax - this document is required to be presented in processing the transfer of title.
in some instances, an estimate of the capital gain gain tax is being deducted in the purchase price; whereas the buyer pay this tax from his side.
moreover, in your case, if the capital gain tax was not paid before the death of the seller; and no one from among the heir/s or representative is willing to pay this tax, then, you as the buyer shall pay. then the transfer of title can be expedited/processed.
for more details, please refer to Law on Obligation & Contacts...

maraming salamat po sa inyo. ngdecide na po kami na bayaran na ang capital gain at doc tax sa BIR. para matapos na po ito. hahagilap lang kami ng pera ASAP. sa tingin niyo ho ba sisingilin pa kami ng estate tax ng BIR kung ang pakikita naming deed of sale ay pirmado na at napanotaryuhan na bago pa man namatay ang isa sa seller (husband)? kasi po buhay pa naman ang seller nung kami ay nagpanotaryo sa abogado in front of him... yun nga lang 3 months after namatay na yung seller, hindi pa namin nababayaran yung cap at doc stamp sa BIR.

oobligahin ka ng bir magbayad ng estate tax if you tell them that the sellr is already dead.

Goodmorning to all...
             Gusto ko sana magtanong about sa property ng in laws ko..ibinigay nila sa youngest son nila na husband ko ngayun...nkapagpirma na sila ng deed of absolute sale and deed of donation para daw kami na pumili saan don i paprocess namin sa property transfer na mas lesser po ang expenses.?
              Second question ko po saan po mas safe na legal document para sa pag tatransfer ng rights
yon Deed of absolute sale? or yong deed of donation...kasi sabi ng in laws ko di lahat ng mga anak nya nakakalam na sa amin ibinigay ang property. Sana po masagot agad mga questions ko...Maraming salamat po..Godbless..

dymphna wrote:Hi.
Ask ko lang po, what to do with our case?
The property was fully paid this March 2013, with Deed of Absolute Sale notarized. Seller died on May 2013.

How can the Buyer transfer the title? Does the property need to be included in the Estate of the Seller? If yes, who will shoulder the Estate Tax for the said property? The heirs of the Seller insist that the Buyer should pay for it.

Hoping for some clarifications.
Thank you.

Thank you po sa mga sumagot. Hindi na nga kasali sa Estate if nabenta na yung property before the seller died as long as may proof like Deed of Sale.

If hindi naman agad nabayaran ang CGT or DST on time, it accumulates HUGE penalty.

Thanks hlslawph