Dear Atty. Gab

Musta Atty! My name is Gregorio Panganiban from Batangas. I hope you can shed some light on a family problem I’m facing regarding inherited land. My father passed away over 25 years ago without leaving a will. He owned three parcels of land. Shortly after his funeral, my siblings and I (there were five of us then) gathered and verbally agreed on how to divide the properties. Everyone was present, and we all consented. I was given the smallest lot, Lot 123, which is about 950 square meters. It was where our parents’ old nipa hut stood.

Since that agreement, I’ve lived exclusively on Lot 123. I tore down the old hut and built my concrete family home there around 1998. I raised my children on that land. My other siblings also took possession of their respective assigned lots based on our verbal agreement. One of my brothers, Roberto, passed away about 10 years ago. Now, his eldest son, Michael, suddenly showed up last month claiming that Lot 123 belongs to him as his father’s supposed share. Michael presented a Tax Declaration for Lot 123 issued just last year (2023) under Roberto’s name. He says our verbal agreement means nothing and is demanding that my family and I vacate the property immediately, threatening to file an ejectment case.

I am confused and worried. We all agreed decades ago, and I’ve lived here peacefully ever since. Does Michael’s recently acquired tax declaration override our long-standing verbal agreement and my actual possession of the land? What are my rights? My surviving siblings remember the agreement clearly.

Thank you for any guidance you can provide.

Respectfully,
Gregorio Panganiban

Dear Gregorio

Thank you for reaching out. I understand your distress regarding your nephew’s claim over the land you’ve considered your family home for decades based on a verbal agreement with your siblings.

The situation you described involves important principles in Philippine property and succession law. Primarily, it touches upon the validity of oral partitions of inherited property among co-heirs and the evidentiary weight of documents like tax declarations versus actual possession based on such agreements. Generally, Philippine law recognizes the validity of an oral partition, especially when the heirs have already acted upon it by taking possession of their respective shares and exercising acts of ownership, as you and your siblings seem to have done.

Untangling Family Land Disputes: When Verbal Agreements Matter

When your father passed away without a will, his estate, including the three parcels of land, was inherited by you and your siblings as co-owners. Each of you acquired a pro-indiviso (undivided) share in the entire estate. To end this co-ownership, heirs can agree to partition the estate among themselves.

While written agreements are always preferable for clarity and ease of proof, Philippine jurisprudence explicitly recognizes the validity of oral partitions among heirs. The Statute of Frauds, which typically requires certain agreements involving real property to be in writing, is generally held inapplicable to partition agreements.

“An agreement of partition may be made orally or in writing. An oral agreement for the partition of the property owned in common is valid and enforceable upon the parties. The Statute of Frauds has no operation in this kind of agreements, for partition is not a conveyance of property but simply a segregation and designation of the part of the property which belong[s] to the co-owners.”

This principle underscores that partition is not about transferring ownership (which you already obtained through succession) but about physically dividing and identifying the specific portion that corresponds to each heir’s existing share.

Crucially, an oral partition is strengthened and can be enforced if it has been substantially performed or ratified by the parties. Taking possession of the assigned portions, exercising acts of ownership (like building a house, as you did), paying taxes specifically for that portion (though not determinative on its own), and the acquiescence of other co-heirs over a long period are strong indicators that the oral partition was not only agreed upon but also consummated.

“Regardless of whether a parol partition or agreement to partition is valid and enforceable at law, equity will [in] proper cases[,] where the parol partition has actually been consummated by the taking of possession in severalty and the exercise of ownership by the parties of the respective portions set off to each, recognize and enforce such parol partition and the rights of the parties thereunder… A parol partition may also be sustained on the ground that the parties thereto have acquiesced in and ratified the partition by taking possession in severalty, exercising acts of ownership with respect thereto, or otherwise recognizing the existence of the partition.”

Your situation, where you took possession of Lot 123 based on the verbal agreement, built your home, and lived there undisputed by your siblings for over two decades, strongly suggests ratification and performance of the oral partition. This continuous possession in the concept of an owner, based on the partition, establishes a significant claim.

Regarding the tax declaration presented by your nephew, Michael, it’s vital to understand its legal weight. While tax declarations can be useful as an indicia (indication) of an ownership claim, they are not conclusive proof of ownership by themselves.

“It is settled that tax declarations and tax receipts alone are not conclusive evidence of ownership. They are merely indicia of a claim of ownership, but when coupled with proof of actual possession of the property, they can be the basis of claim of ownership through prescription. In the absence of actual, public and adverse possession, the declaration of the land for tax purposes does not prove ownership.”

In your case, the tax declaration is recent (2023) and in the name of your deceased brother, Roberto. Michael would need to establish how Roberto acquired exclusive ownership of Lot 123 from your father’s estate to validate that tax declaration’s claim against your long-standing possession based on the partition agreement. Simply presenting the tax declaration, especially one obtained long after the supposed partition and Roberto’s death, does not automatically negate the verbal partition agreed upon by all siblings and acted upon for years. Your actual, long-term possession under a claim of ownership derived from the partition raises a disputable presumption of ownership under the law (Article 433, Civil Code), which the tax declaration alone may not overcome.

If Michael proceeds with an ejectment case (which focuses on physical possession), the court might provisionally look into the ownership issue to determine who has the better right of possession. However, the findings in an ejectment case regarding ownership are not final and do not bar a separate action (like an accion reinvindicatoria or an action to quiet title) where the issue of ownership can be fully threshed out.

Practical Advice for Your Situation

• Gather Evidence: Collect proof of the oral partition. This includes sworn statements (affidavits) from your surviving siblings confirming the agreement and their acknowledgment of your possession of Lot 123 as your share.
• Document Possession: Compile evidence of your long-standing, open, and continuous possession of Lot 123 (e.g., photos of your house over the years, utility bills addressed to you at that property, barangay certifications, testimonies from long-time neighbors).
• Show Improvements: Document the improvements you made, particularly the construction of your concrete house, including permits (if any), receipts, or photos. This demonstrates acts of ownership.
• Communicate with Siblings: Discuss the matter formally with your surviving siblings. Their unified stance confirming the partition will be crucial. Perhaps they can also talk to Michael to clarify the original agreement.
• Check Tax Records: Verify the history of tax declarations for Lot 123. Who paid taxes before the recent declaration under Roberto’s name? While not conclusive, this might provide context.
• Consult a Lawyer: Engage a lawyer immediately to discuss your options. They can help prepare your defense if an ejectment case is filed or advise on potentially filing an action to quiet title to formally establish your ownership based on the partition.
• Avoid Conceding Possession: Do not vacate the property based solely on Michael’s demands or the tax declaration. Your actual possession is a strong point in your favor.

Your situation highlights the importance of documenting family agreements, especially concerning property. However, the law and jurisprudence provide protection for valid oral partitions that have been acted upon in good faith over time. Your long-standing possession and the testimony of your siblings are significant factors in upholding your claim based on the verbal partition.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

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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.