Dear Atty. Gab,

Musta Atty!? My siblings and I inherited a piece of land from our parents in Davao. We haven’t formally divided the property yet. I’m planning to sell my share because I need money for my child’s education. However, some of my siblings are against the sale, saying it will complicate things and devalue the land. They insist we should all agree before any sale happens. Is it legal for me to sell my share even if the land is not yet formally partitioned and some of my siblings object? Will the buyer have full ownership rights, or will they just become co-owners with my siblings? I’m really confused about my rights and don’t want to cause any family conflict, but I really need the money. Can you please shed some light on this situation?

Thank you in advance for your help.

Sincerely,
Maria Hizon

Dear Maria,

Kumusta! I understand your concern about selling your share of inherited land while navigating your siblings’ objections. Selling your share is generally permissible, but the buyer only acquires rights to your specific portion. This means they become a co-owner with your siblings until a formal division occurs, potentially leading to complications that all parties should consider.

Understanding Your Rights as a Co-Owner in Philippine Inheritance Law

When a person dies, their heirs immediately become owners of the inherited property, even if it hasn’t been formally divided. This creates a state of co-ownership. Each co-owner has the right to sell, assign, or mortgage their share. However, this right is limited. You cannot sell the entire property without the consent of all co-owners. The buyer only acquires the rights corresponding to your specific share.

This principle is rooted in the Civil Code, which governs property rights in the Philippines. The law emphasizes that while you can dispose of your individual interest, it doesn’t automatically give the buyer the right to exclusive possession or ownership of a specific portion of the land. Instead, they step into your shoes as a co-owner, subject to the same rights and responsibilities as the other heirs. This can lead to complications if the co-owners don’t agree on how to manage or divide the property.

Each co-owner shall have the full ownership of his part and of the fruits and benefits pertaining thereto, and he may therefore alienate, assign or mortgage it, and even substitute another person in its enjoyment, except when personal rights are involved. But the effect of the alienation or the mortgage, with respect to the co-owners, shall be limited to the portion which may be allotted to him in the division upon the termination of the co-ownership. (Article 493 of the Civil Code)

This means that the buyer’s rights are tied to the eventual division of the property. They only get what corresponds to your share after the partition. It’s crucial to remember that you can only transfer the rights that you actually possess. You can’t sell or transfer ownership of a portion that belongs to your siblings.

Furthermore, consider the implications if some heirs were excluded from the initial settlement of the estate. The Supreme Court has ruled that extrajudicial settlements are not binding on individuals who did not participate in them or were not properly notified. This can create further legal complexities if the original settlement is challenged.

SECTION 1. Extrajudicial settlement by agreement between heirs. – x x x
The fact of the extrajudicial settlement or administration shall be published in a newspaper of general circulation in the manner provided in the next succeeding section; but no extrajudicial settlement shall be binding upon any person who has not participated therein or had no notice thereof.

If there was an improper extrajudicial settlement, legal action could be taken even many years later. The action to recover property held in trust, which arises in these situations, has a prescriptive period of ten years from the accrual of the cause of action.

However, the action to recover property held in trust prescribes after 10 years from the time the cause of action accrues, which is from the time of actual notice in case of unregistered deed. (CIVIL CODE, Art. 1144)

Therefore, it is wise to consult with other heirs and agree to make sure all the necessary people are included and the sale proceeds as smoothly as possible. The goal is for everyone to be on the same page.

Practical Advice for Your Situation

• Communicate with your siblings: Discuss your financial needs and attempt to reach a compromise that respects everyone’s interests.
• Consider a formal partition: Before selling, consider initiating a formal partition of the land to clearly define each heir’s share.
• Disclose co-ownership to potential buyers: Be transparent with potential buyers about the co-ownership situation and the potential complications.
• Draft a clear agreement: If a sale proceeds, ensure a written agreement clearly outlines the buyer’s rights as a co-owner.
• Seek legal advice before proceeding: Consult a lawyer to review the sale agreement and ensure compliance with Philippine property laws.
• Explore alternative solutions: Consider if a loan, or other forms of financing might be a better option than selling the land.

I understand that this is a delicate situation, and I hope these insights help you navigate it with confidence. Remember that open communication and a clear understanding of your legal rights are crucial for a positive outcome.

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.