Dear Atty. Gab,

Musta Atty! My name is Ricardo Cruz, and I’m writing to you because I’m in a bit of a bind. My grandfather passed away a few years ago, and he left behind a piece of land that we, his heirs, are supposed to inherit. The problem is, we haven’t officially transferred the title to our names yet because of some family disagreements. Now, I really need some money, and I was thinking of selling my share of the land. But, a friend told me that I can’t legally sell it because the title is still under my grandfather’s name. Is this true? Can I even sell something that isn’t officially mine yet?

I’m really confused about my rights here. I don’t want to do anything illegal, but I also really need the money. Any advice you could give me would be greatly appreciated.

Thank you in advance for your help.

Sincerely,
Ricardo Cruz

Dear Ricardo,

I understand your concerns about selling your share of the land before the title is transferred to your name. It’s a common situation, especially when dealing with inherited properties. The key issue here is whether you have the right to sell property that is part of an inheritance but hasn’t been formally transferred.

Understanding Future Inheritance and Your Rights

In the Philippines, the sale of future inheritance is generally prohibited. This means you cannot enter into a contract to sell property that you expect to inherit, but haven’t yet received through a formal settlement of the estate. This is because, at the time of the attempted sale, your right to the property is not yet fully established.

Article 1347 of the Civil Code addresses this directly. The law states that contracts regarding future inheritance are generally void, with some exceptions:

“No contract may be entered into upon future inheritance except in cases expressly authorized by law.”

This means that until the estate is settled and your share is formally assigned to you, any agreement to sell that specific property may be considered invalid. As the Civil Code further says:

Paragraph 2 of Article 1347, characterizes a contract entered into upon future inheritance as void. The law applies when the following requisites concur: (1) the succession has not yet been opened; (2) the object of the contract forms part of the inheritance; and (3) the promissor has, with respect to the object, an expectancy of a right which is purely hereditary in nature.

To further clarify, the requisites mentioned must occur before the sale is valid. The succession has to be opened (death of the grandfather), the object of the contract (the land) forms part of the inheritance, and you having an expectancy of a right that is purely hereditary in nature (as an heir of your grandfather.) It would be premature to dispose of the land, until the requirements are met.

However, once the estate is settled and you officially receive your share, you are free to sell it. Before that, you only have an inchoate hereditary right, which is not sufficient to transfer ownership.

Even if a deed of sale is executed before the formal transfer, it may be considered simulated or fictitious, especially if there is evidence suggesting that the parties involved didn’t genuinely intend to transfer ownership at that time. For example:

[S]ince there are discrepancies in the signature of the notary public, his PTR and the document number on the lower-most portion of the document, as well as the said deed of sale being found only after the plaintiffs-appellants were ejected by the defendants-appellants; that they were allegedly not aware that the said property was bought by their father, and that they never questioned the other half of the property not occupied by them, it is apparent that the sale dated March 5, 1975 had the earmarks of a simulated deed written all over it. The lower court did not err in pronouncing that it be declared null and void.

So it is important to address these requirements before considering any actions in the land you are planning to sell.

Furthermore, even if a will exists assigning the property, it needs to be probated. Even if there is a will, the name of one of the heirs appears in the will, the will needs to be probated first before you can sell your property:

In this case, at the time the deed was executed, Faustina’s will was not yet probated; the object of the contract, the 9,000 square meter property, still formed part of the inheritance of his father from the estate of Faustina; and Domingo had a mere inchoate hereditary right therein.

Without the requirements mentioned, there is no right to transfer the ownership of the property and the sale will be declared void.

Practical Advice for Your Situation

• Prioritize Estate Settlement: Focus on settling your grandfather’s estate and transferring the title to the heirs as soon as possible.
• Consult with Other Heirs: Discuss your plans with the other heirs to avoid any conflicts and ensure a smooth transfer of the property.
• Consider an Extrajudicial Settlement: If all heirs agree, explore the possibility of an extrajudicial settlement to expedite the process.
• Wait for Formal Ownership: Refrain from entering into any agreements to sell your share until you officially own it.
• Seek Legal Assistance: Consult with a lawyer to review all relevant documents and provide guidance on the specific steps you need to take.
• Explore Legal Options: Explore options such as a loan using your inheritance as collateral, but be sure to seek legal advice first.

I understand this can be a frustrating situation. However, by taking the right steps and seeking legal advice, you can protect your rights and ensure a smooth transfer of the property.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.