Contract of Sale vs. Deed of Donation. Which should you choose?

Are you transferring property to a loved one? Or is a loved one transferring property to you? What is the best way to transfer property between relatives?
In the Philippines, it’s typical for parents to transfer properties to their children during their lifetime…Either as a gift, or an advanced inheritance. Sometimes they do this so that the properties are already transferred before the pass away.
Our question today comes from Ronald P., and she asks:
“My parents are old and they want to transfer their house and lot to me so that I won’t have any more problems when they die. What’s the best way for them to transfer the property to me? I heard from my friends that we can choose between a sale or a donation? Which is better?”
If you’re in a similar position as Amanda, stick around as we answer her question.
This video is brought to you by "Transferring Land in the Philippines", a mini-workshop that teaches Filipinos the basic modes of transferring lands and real properties in the Philippines. It provides the pros and cons of each mode, as well as the steps and procedures so that you eliminate your confusion and successfully navigate the whole process.
Transfer with confidence! Transfer without fixers!
Go to info.legalguide.ph/land to learn more.

[@paulcmata]

Atty. Erwin Zagala and Atty. Ramon Ramirez are excellent lawyers!

[@perlitodignadice4755]

Thanks to both of you Attorneys. First time, I saw your posts and I found your topics very enlightening, easy to understand. I saved it and shared to others. More power to you. God Bless.

[@herminiamendoza8702]

Thanks for the very clear explanations handsome attorneys! You did a very lively discussion and explanation. I learned a lot today. More videos on land matters please. Thanks po! 😍

[@tesswall3143]

Thank you both Attorney, very helpful information ! 🙏🏼

[@motostrollero]

salamat po. malinaw n ngayon napaka laking tulong dahil madaming naniniwala dun sa unang proseso.

[@vervillanueva2309]

Tnx to both of your legal opinions Atty's. Timely important and helpful b/c the donor is aged and suffering from dementia. So, bestowal of her share to two adopted daughters is the best option

[@LegalGuidePhilippines]

Happy to help

[@melitaelizabethlardizabal4719]

Thank you so much for the legal information, great help to us. 👏👏👏

[@LegalGuidePhilippines]

Glad it was helpful!

[@fayeo.2117]

such important information. Easily understood by people like me:) great segment. Thank you for this.

[@LegalGuidePhilippines]

Glad you enjoyed it!

[@juvyjean]

Thank you so much po, Attorneys! Sobrang laking tulong po nito sa amin. 😊

[@LegalGuidePhilippines]

You're welcome! :)

[@alphamega3822]

Eto Po ang topic na kailangan ko.

[@LegalGuidePhilippines]

Maraming salamat for watching! :)

[@whomillc6305]

Thank you for the knowledge. Mabuhay

[@LegalGuidePhilippines]

Always welcome

[@leela4979]

New subscriber here. Thank you po at naliwanagan ako tungkolnsa different tax rates 6% na pala lahat 😅. I'm Off to look for more of your videos 😊

[@LegalGuidePhilippines]

Thank you! We're happy we were able to help!

[@douglascanlassr.6487]

Normally when you go for Deed of Sale, you pay agents a commission of 3-6% of the sale value, what if it is Deed of Donation, do you pay agents a commission since the was no sate involved? Can you advise please??? Thanks guys. BTW you are doing a good job. Keep it up! ! !

[@noeltancangco5391]

Hi Atty's. putting aside the taxes to be paid for both Sale or Donation, but looking into the differences of the requirements to process each of the adventure, which one would be the easiest and less complicated way, sale or donation? Thank you so much for making this segment, really helpful and simple to understand.

[@pinoysenior8164]

Thank you Atty. Erwin Zagala and Atty. Ramon Ramirez.; very clear and enlightening. Question. i will execute a Deed of Donation to my kids for my house but I would like to still use and live in the house until my death. How can the Deed be worded?

[@ellenmalonzo5609]

No to simulated contracts,honesty is the best policy and give the government what is due.

[@carrievives6417]

What if the bir is asking for so much that it’s not already FAIR?

[@krizpearl]

Thnk u po sa info na ito..pero sana all tagalog ang explanatiom hehehe...

[@MariaLuzBuenaventura-fs9xc]

Sale is usually to a non family member or in "business" such as realty sales firm, Donation is, by the wordings of the document, may be for a family member example to children, Or through court if by inheritance ? Thanks for the info on the difference between sale or donation by way of you tube like these concerning land And both, now in Train Law, have 6%tax

[@champongkorea8921]

Ang dami ko pong natututunan sa inyong mga videos. Tanong ko lang po pano po yung iba na hindi nagdedeclare kung magkano talaga ang halaga ng bayad sa lupang binili. Like in actual binili ng 1.7M tapos ang nilagay lang nila sa ADOS ay 850k .? another thing sa bentahan- bilihan hindi pa isinali yung wife dahil sa title ay sa single pa yung husband. No prenuptial agreement made and marriage happeend In 1990. Salamat po kung makatawag sa inyo ito ng pansin.

[@egxell_9080]

Hi atty's. I bought a land of my lolo and now we are planning to get a title... ang sabi ng magaayos is mas makakamura da babayaran pag donation! Maramjng salamat at napanood ko itong video nyo, naliwanagan din ako sa gagawin ko

[@LegalGuidePhilippines]

Happy to hear we helped! :)

[@gloriavillelaagres1905]

Paano kung Ang donation ay di nargisterd sa RD at di ngbayad sa mga masabing tax masasabi ba na totoo yon na kanila na Ang idinonate or pwede ba.mabalewa Ang idinote o maghabol Ng ibang kmaganak o kaaptid?

[@cherylpink1544]

😊😊❤❤❤

[@jaysoncampos28]

atty. bago po mawala ang parents namin , nakagawa na po kami ng deed of donation and is duly notarized na po, at sa bi ng atty dapat daw deed of sale eh wala nmn pong bayaran na nangyari, kaya DOD ang pinagawa namin.. tanong lang po , do we need to process a transfer of name of title to the heirs or our deed of donation is already sufficient to say that it is already owned by the heirs or the children..

[@ModernHomesManila]

Pag DOAS ba tapos Yung market value is 200k pero sa DOAS IS 150K ? HINDI BA YAN MA QUESTION SA BIR? PINILI KASI NI CLIENTE IS DOAS NOT DONATION

[@reginrexcastillo7406]

Thank you for explaining the process, but I have some questions and I hope your response would shed light on our predicament. Under deed of donation meron pong terms and conditions na dapat masunod, otherwise pwedi e-invalidated ni donor yong property na denonate nya. Also even if the deed of donation does not entail terms and condition, but it is still possible to invalidate the donation. As you explained about sale, pwedi din ma invalidate yong sale if it can be proved as simulated. Is there any other ways to transfer a property with ironclad agreement that cannot be invalidated? I plan to ask more, but nakakahiya.. for the mean time yan muna... thank you :)

[@user-mh7vz2ft2h]

If a lot was transferred to you by sale or donation, is there a period to pay the taxes attached to it?

[@erinegreen01]

I heard pede mag execute ng deed of donation pero apply lng sya pag namatay ang donor.

[@captain08brown]

Magandang araw po, Atty. My alive grand mother gave to us (3 Siblings) her only land which we our living since birth and she execute a deed of donation. My grand mother has only 2 Children, my father and my aunty who is living and a citizen of other country na for almost 4 decades. My question is, does the deed of donation may become void in the future incase my aunt questioned or maghabol pa sa land in the future? Sana po mapansin niyo. Great Vid and more power po.

[@ginalaborte533]

Maganda advices po pero sana lang po wag masyado marami mga adlib sa explanation kasi po minsan para nang isang topic lang andaming sanga2 sa explanation. Direct to the point po. Opinion ko lang po.

[@wilmarobles4717]

How about if a corporation wants to give its real property to an officer of the same corp. Is the deed of donation approriate? Are there special requirements for corp?

[@fernandodelrosario7070]

Kung Korte ay nagutos n ipawlang bisa Ang titulo paano k po malalaman kung ito ay nag took effect

[@josh3677]

Atty. magtatanong lang po sa procedures or estimated niyong cost kung paano na gagawin kung gusto kong ilipat yung title ng lupa ko sa corporation/business ko. samakatuwid ang may ari ng lupa is sya din pong may ari ng corporation. Ano rin po ba mas magandang gawin kung deed of donation po ba or deed of absolute sale sir. Salamat po atty. sana masagot.

[@vervillanueva2309]

May I request for yur legal opinion and advise on how to withdraw bank savings of our deceased brother who died on Nov 30 2021?

[@LegalGuidePhilippines]

You can get a free consult from us at www.legalaccess.ph and choose ESTATE SETTLEMENT from the options.

[@albertosolano8521]

Thanks for the info! may we ask po if ano pwede gawin sa 2 properties being consolidated sa subdivision plan,tapos na EJS naihabol sa amnesty last august 14,2023 but walang partition agreement since di pa nakapag pasurvey at the time nagpa approve ng EJS.nung na approved ang EJS making the 13 siblings as co-owners nung dalawang property saka nag pa survey and gumawa ng consolidated plan among 13 siblings plus road lot at yung isang kapatid nag decide na tulungan yung isa nyang kapatid sa pagpapa opera ng prostate kapalit nung share nung kapatid.

[@nonoitv786]

Atty good day Meron lang po sana ako iconsult sa inyo Ung lupa na natayuan ng bahay namin since birth don po kami lumaki ay hindi mo nila nabili during his marrage, nkapag abroad po ako at binili ko po yun pinapangalan sa akin as buyer meron napo deed of sale with my name and notarized na on process pa po ang transfer of title sa name ko pinarenovate ko giniba ung lumang bahay binago ko lahat ako rin nagasto lahat meron po akong 6sisters nag iisa lang po ako lalaki na anak ang tanung ko po ay ... May karapatan ba ang mga kapatid ko sa bhay at lupa in the future may mga sarili narin clang pamilya nkabukod sana matugunan salamat at godbless

[@cherrybellbuenaobra8449]

question po. paano po kaya makakuha ng titulo ng bahay na awarded po ng wish ko lng

[@otrebor7631]

Atty. pwede po bang mag donate Ang magulang sa anak na former Pilipino (not dual citizen). Ang anak ay May existing na 2 residential properties.

[@jdelrosarioo]

Pwede po bang makiusap sa bir para amnesty sa cgt at magkano po b ang penalty sa expired n deed of sale at sa extra judicial settlement w sale ano po bang tax ang babayaran at kung may ari ng property ay nag execute ng extra judicial settlement bago mamatay magbabayad pa po b sa estate tax

[@annyeongjuliegreen1415]

Hello po, may question po ako. May dinonate na lupa ang lolo ko sa papa ko dito sa amin sa qc, ang lupa na yun nag silbing driveway namin. Na notarize po at may pirma ng lolo ko, papa ko at tito ko. Tapos binenta ng tito ko at lolo ko ang lupa pero yung lolo ko wala na sa right mind kasi ulyanin na. After 1 year namatay lolo ko. Napaka unfortunate lang po talaga hindi agad na transfer yung title kasi my father suddendly died. Ano po habol namin, atty.? Thanks po.

[@LegalGuidePhilippines]

Hi Julie, medyo complicated po yung case. Would strongly suggest consulting a lawyer na po so documents could be checked and clarificatory questions can get asked. If you want to consult us, you can book at www.legalaccess.ph or if you want probono services, this link is available: www.legalguide.ph/where-to-ask-for-free-legal-assistance

[@annyeongjuliegreen1415]

@@LegalGuidePhilippines ok thank you po.

[@juanangelomorales9622]

Pano po mag tetake effect ang deed of donation kung meron pa pong legal na mag mamana ng property? Mavovoid po ba ito kapag nag habol yung anak kunware.

[@momswaknswak3304]

Ask lang po, ano po ang pagkaka iba ng Affidavit of ratification sa Deed of Ratification. (Deed of sale ipapa amend dahil hindi nakasama ang name ng anak as co-owner sa property) Ano po ba pwede ipagawa as supplemental/supporting document Please advise po. Salamat po 🙏

[@RudyAvens]

Yung mama at papa ko po gusto pong ibigay ang lupa at bahay sa pinas sa pangalan ko po. Magpapagawa kami ng notarize deed of donation with Apostille from California. Acceptable po ba ang notarized deed of donation with Apostille na galing from California? Filipino citizen po ako at andito po ang original title po ng lupa. Maraming salamat po in advance.

[@raffymonteverde7419]

When the sale is on donated sale who is responsible on the 6% tax due between the parties?

[@rickystanicky85]

My ?s. If the tax is the same across the board, then there will be only one other thing we would need to know. Which, Sale/Donation/Estate, is best with minimal papers to fill out and fastest to process? Also, what if the kids or the parents cannot afford to pay the tax in whole/at one time, what then?, is there a payment schedule that can be applied, to pay the Donor Tax, CGT, Estate Tax? Thank you

[@marianitotabuzo7157]

God's evening everyone. Is there a way for someone to avail a lifetime trust of all our respective assets in favor of our beneficiaries, i.e., children in the Philippines? I am trying to create a generational wealth for my family. Diyos mabalos

[@zujifilmax2848]

what if nsa abroad ka at sa kapatid mo pinangalan un lupa. then gusto mo na ipalipat sa name mo . ano po maganda gawin at saan mas nkkatipid

[@user-iy9jc4de7h]

Pano po kung ang property namin may mga informal settler and we decided na bumili another property to donate sa LGU para sa relocation ng mga informal settler. Papano po ba ang magiging process namin ? Mag ta tax pa po ba kmi???

[@gamalieljonasdinauto1361]

Good day to both of you atty. Valid po ba ang deed of donation papers na hinde pina register sa registry of deed? Maraming salamat po?

[@albertosolano8521]

now since magpapa approved na ng subd.plan sa LRA para makatipid din sa bayarin sa survey yung gumastos ng pagpapa opera nung kapatid nadoble na yung share nya sa plan.ang sabi ng BIR magpa approved ng doc such as partition agreement stating the bigger share of the sister who pays for the operation of his brother.sabi pa ng BIR if the ROD would allow such partition agreement they can already compute the donations tax. can this be possible so as to proceed with the transaction and the plan be approved by LRA thus afterwards they can have their individual titles after.thanks so much in advance if these would be answered by you😊

[@kingmotovlog5025]

Attorney kung di pa napaghiwalay hiwalay ang mana buo pa taz bininta sa kapatid ang mana lang niya anu magandang panghawakan na papel katunayan binili na ng papa namin ang mana niya ok naba ang dead of at ang witness kailangan ba ang kapatid ang pumerma?

[@STANLYIGROSVLOG]

PAANO PO ATTY PAG NAMATAY NA PO IYONG LOLA KO ANONG PONG GAGAWIN NAMIN NAGIISANG ANAK SI MAMA KO , TITULO MAY SPECIFIC NA SHARE IYONG LOLA KO PWEDE BA NAMIN PATITULUHAN NA PO IYON, PERO IYONG IBANG NASA TITLE AYAW PA NILA AYUSIN DIN IYONG MANA NILA SA KAPATID NG LOLA KO, SALAMAT PO SA HELP.

[@alphamega3822]

Sir Sana Po masagot nyo. Yung lupa at bahay po naka pangalan sa lola ko at papalipat po sa akin ( buhay pa po ang lalo ko) . Sabi po ng iba, mas mura at mas mabilis daw kung sale kaysa sa donation. Ano po ang mas magandang gawin para malipat po sa pangalan ko ang properly? Salamat po

[@LegalGuidePhilippines]

Hi Alpha, timing na timing yung tanong mo. The answers are in this video itself, kung ano ang best way to proceed. In case you have other questions, please feel free to submit them at legalguideph.frill.co

[@tiyopepping]

Atty's. tanong ko lang po... Sa isang may asawang tatanggap ng Mana or Donation sa kamag anak or sa ibang tao at Deed of DOnation po ang ginawa Magiging conjugal ba ang minanang ari-arian?

[@julietaguilar8906]

TCT named father joint father and son, both are legally married, if they want to donate to another sibling, should their both spouses sign in the deed of donation

[@LegalGuidePhilippines]

Generally, yes. But there will be some exceptions (acquisition thru gratuitous title, inheritance, etc.). Best to consult your lawyer who will be in charge of drafting the deed.

[@josieoberio9239]

Good day Atty., ano po ba ang dapat naming gamitin, deed of sale, deed of donation or extrajudicial settlement para matransfer po sa aming magkakapatid yung lupa?, kasi yung lupa po ng parents ko ay nakapangalan sa father ko, married to lang and mother ko pero deceased na po siya, ano po ang dapat naming gamitin sa 3. Salamat po.

[@LegalGuidePhilippines]

Looks like estate settlement po ang kailangan. Watch this video, it will help you a lot: kzbin.info/www/bejne/rH-we6mwid53sM0

[@skytan3151]

hello po attys thanks for the info. ask ko lang, paano po kung walang capacity to pay yung donee and even yung donor. Meron pong bahay ang tatay ko at gusto na sana ipasa sa aming magkapatid ang title para hindi na problemahin kung mawala na siya. Ngayon po, regular na emplyedo lang po kaming magkapatid at wala pong 100k ang aming bank account savings. Meaning, living day to day lang po kami. Kaya po nakapagpatayo ng bahay ang tatay ko ay dahil nakapagloan sya sa opisina at nabayaran unti unti. Meron po bang puwedeng sistema na i-avail kaming magkapatid para mabayaran ang donor's tax. Like for example a payment arrangement or a loan na gobyerno din ang nagbibigay? Mukhang patas ang 6% across all the board, pero paano naman yung mga anak na mabigyan sana ng inheritance na naipundar ng magulang pero hindi naman ganun kayaman. Estimated property po namin is 12-15k per sqm, meron po kaming 120sqm lupa wala pa duon ang halaga nung mismong bahay. Salamat sa sino mang makakasagot.

[@LegalGuidePhilippines]

Kung pera pambayad po ang issue, baka better po na estate settlement ang method na gamitin ninyo. Rewatch the video po, may discussion dyan kasi mas marami ang deductions pag estate settlement vs. donation po. Hope it helps!

[@skytan3151]

@@LegalGuidePhilippines Hello po atty, actually inaral ko po yung estate settlement after nitong video at pag post ng aking tanong. At nakita ko nga po yung mga deductions from 5m standard to 10m if family home at marami pang iba. Mukhang last will and testament na lang ang aming asikasuhin. Maraming salamat po ulit.

[@najalsaffar]

Hello po. Pakitagalog po. At paano po ba kayo makontak

[@globeoppo752]

Good morning atty. tanong ko lang bahay namin naitayo half of the parcel is titled lot under my name et al my siblings pero the other half is not titled under us pero yong owner ng lupa at papa ko meron silang deed of donation document notarized before namatay yong owner pero hindi na e process sa city assessor, bir and registry of deeds at walang donors tax yong previous owner. documento hawak ng papa ko is 15 yrs na po. ngayon gusto namin magkapatid ebenta itong titled lot at bahay gusto ng papa ko e benta as a whole pero hindi kami pumayag kasi hindi completo papeles nya ayaw namin may problema sa buyer side. Nag punta po ako sa registry of deeds pina verify ko yong documento hawak ng papa ko it turn out yong lupa donated sa kanya naka double title sa records and may kaso unresolve hangang ngayon. Tanong ko po may full rights ba papa ko sa lupa na donated sa kanya? Valid ba yong documento hawak niya? Salamat po atty.

[@LegalGuidePhilippines]

Marami pa kasing mga tanong na kailangan masagot para maka recommend ng tama sa sitwasyon ninyo. Maganda po rito, kumonsulta na po kayo ng abogado para masuri ang document na nabanggit.

[@globeoppo752]

@@LegalGuidePhilippines thank you po atty. your vlog is such a great help.

[@academiadesanjosecainta3060]

Hello Atty Ramon! I have a question po. If one of the spouses died, does the surviving spouse need to pay tax to BIR?

[@LegalGuidePhilippines]

Yes, this would be a good video to get you started: www.legalguide.ph/tips-on-how-to-get-started-on-estate-settlement

[@jhoeldejesus2648]

Good day po Atty. Hope you are doing well. May itatanong po sana ako. May bibilin po ako na property na may kashare ako sa bilihan. Bali magiging business partner po kami. Pero since nasa abroad sya kelangan nya po mgprovide ng SPA para po sa pirmahan ng deed of sale. Pwede po ba ako na din ang gawin nya na authorized sa SpA kahit po ako ang ka business partner nya? Salamat po

[@LegalGuidePhilippines]

Yes, that's allowed. :)

[@user-pn3wb8sm2d]

tagalog

[@hekterskelter2346]

Sir,can my parents execute a Deed of donation DIRECTLY to his grandchildrens bypassing the parents?Tnx po..