How to Sell Inherited Property in the Philippines While Abroad (OFW Guide 2025)

You're working abroad when you get the call. A parent passed away. Condolences turn to questions. There's property back home. Your siblings are scattered across three countries. Nobody knows what to do next.

This situation is more common than you'd think. And it's more complicated than most OFWs expect.

This guide walks you through the entire process of selling inherited property in the Philippines while you're abroad — from the legal requirements to the practical coordination challenges, and everything in between.

1. Can You Sell Inherited Property Without Returning to the Philippines?

Yes, you can sell inherited property without flying back. But you can't just list it immediately.

Here's the reality: when someone dies, their property doesn't automatically transfer to your name. The title still shows the deceased as owner. No buyer will purchase a property with a dead person's name on the title — and no bank will finance it.

This process takes 6 to 18 months depending on complexity. The more heirs involved, the longer it takes. The more countries those heirs are scattered across, the more coordination headaches you'll face.

2. The 5-Step Process to Sell Inherited Property

Here's the high-level roadmap:

1. Extrajudicial Settlement of Estate — All heirs must agree and sign a legal document dividing the estate.
2. Pay Estate Tax — The BIR charges 6% of the net estate value. Deadline is 1 year from death.
3. Get Certificate Authorizing Registration (CAR) — After estate tax is paid, the BIR issues a CAR authorizing the title transfer.
4. Transfer Title to Heirs — The Registry of Deeds issues a new title in the heirs' names.
5. Sell the Property — Now you can legally sell. Each heir either signs personally or through their SPA representative.

3. Extrajudicial Settlement of Estate

Extrajudicial settlement is the fastest and cheapest way to settle an estate — but it only works under specific conditions.

Requirements for Extrajudicial Settlement

You can use extrajudicial settlement if:

• The deceased left no will (intestate), OR the will has already been probated
• There are no outstanding debts, or all debts have been paid
• All heirs are of legal age (or minors have court-appointed guardians)
• All heirs agree on how to divide the estate

What the Document Contains

The Deed of Extrajudicial Settlement lists:

• All properties and assets of the deceased
• All legal heirs and their relationship to the deceased
• How the estate will be divided among heirs
• Signatures of all heirs (or their attorneys-in-fact)

The Publication Requirement

After the document is notarized, it must be published in a newspaper of general circulation once a week for three consecutive weeks. This gives potential creditors or unknown heirs the chance to come forward.

Keep the newspaper clippings. You'll need them for BIR processing.

The OFW Challenge: Getting Everyone to Sign

This is where it gets complicated for families with heirs abroad. If you have four siblings — one in Singapore, one in Dubai, one in Canada, and one in the Philippines — each one abroad needs to either:

Option A: Sign at the Philippine Embassy or Consulate
The heir appears in person. The document is notarized there and authenticated.

Option B: Execute a Special Power of Attorney (SPA)
The heir grants authority to someone in the Philippines to sign on their behalf. The SPA must be notarized in the heir's country, then apostilled or authenticated at the Philippine embassy.

4. Estate Tax

The estate tax is 6% of the net estate value. This is non-negotiable and must be paid before the BIR releases the Certificate Authorizing Registration.

How to Compute Net Estate

Net estate = Gross estate minus allowable deductions

Gross estate includes:

• Real properties (land, house, condo)
• Bank accounts and deposits
• Vehicles
• Stocks and investments
• Other personal property

Allowable deductions include:

• Standard deduction of ₱5 million
• Funeral expenses (up to ₱200,000)
• Judicial expenses (if applicable)
• Claims against the estate (debts)
• Family home allowance (up to ₱10 million)
• Medical expenses of the deceased (up to ₱500,000)

Example Computation

Let's say the deceased left:

• House and lot worth ₱15 million
• Bank deposits of ₱2 million
• Vehicle worth ₱1 million

Filing Deadline

Estate tax must be filed within 1 year from the date of death. Extensions are possible but penalties apply for late filing.

Documents Required for Estate Tax Filing

• BIR Form 1801 (Estate Tax Return)
• Death certificate (PSA copy)
• TIN of the deceased and all heirs
• Notarized Extrajudicial Settlement
• Proof of publication (newspaper clippings)
• Certified true copy of titles (TCT/CCT)
• Tax declarations for all real properties
• Bank certificates for deposit accounts
• Zonal valuation from BIR

5. Title Transfer to Heirs

Once estate tax is paid, the BIR issues a Certificate Authorizing Registration (CAR). With the CAR, you proceed to the Registry of Deeds where the property is located.

Documents Required

• Original CAR from BIR
• Original owner's duplicate copy of title (TCT/CCT)
• Notarized Deed of Extrajudicial Settlement
• Proof of publication
• Transfer tax receipt (pay at local treasurer's office)
• Real property tax clearance
• Valid IDs of heirs (or attorneys-in-fact with SPAs)

Fees

The Registry of Deeds issues a new title in the names of the heirs. If there are multiple heirs, the title shows all names as co-owners.

6. Selling the Property

Now that the title is in the heirs' names, you can proceed with the sale.

If All Heirs Are Abroad

Each heir needs an SPA authorizing someone to sign the Deed of Absolute Sale on their behalf. The SPA should specifically grant authority to:

• Sell the property at a specified price (or price range)
• Sign the Deed of Absolute Sale
• Receive payment on behalf of the heir
• Execute other documents related to the sale

Taxes When Selling

Dividing the Proceeds

If there are multiple heirs, the sale proceeds are divided according to the shares specified in the Extrajudicial Settlement.

Options for receiving proceeds:

• Direct deposit to each heir's Philippine bank account
• Remittance to overseas accounts (Wise, bank wire)
• Combination of both

7. Coordinating Multiple Heirs Across Countries

This is the most frustrating part of the process for most OFW families.

The Scenario

Mom passed away. She left a house and lot in Bulacan. There are four children: Ana is in Dubai, Ben is in Toronto, Carlo is in Singapore, and Diana is in Manila. Diana is willing to be the representative, but Ana, Ben, and Carlo each need to execute SPAs from their respective countries.

What Each Heir Abroad Needs to Do

1. Get the SPA document — The lawyer in the Philippines drafts the SPA and sends it to each heir abroad.
2. Notarize the SPA — Each heir brings the SPA to a notary public in their country.
3. Apostille or Authenticate — If the country is part of the Hague Apostille Convention, get an apostille. If not, get authentication at the Philippine embassy.
4. Send to the Philippines — Courier the original apostilled/authenticated SPA to the representative.

Common Problems

• Embassy appointments are weeks out. During peak seasons, slots fill up quickly.
• Different time zones make coordination difficult. Scheduling calls with siblings across 3-4 time zones is exhausting.
• One heir drags their feet. Everything stalls if one heir doesn't process their SPA on time.
• Documents get lost in transit. Always use tracked shipping.
• Errors in the SPA. A misspelled name or wrong property description means the document is rejected. Start over.

8. What If One Heir Won't Cooperate?

This happens more often than people admit. Family dynamics, old grudges, or simple stubbornness can derail the entire process.

Option 1: Negotiate

Start with a conversation. Understand their objection. Sometimes the holdout heir wants a larger share, has emotional attachment, doesn't trust the representative, or is dealing with personal issues.

Option 2: Buy Out the Difficult Heir

If one heir simply doesn't want to sell, the other heirs can offer to buy their share. This requires agreeing on a fair valuation and executing a Deed of Sale of Undivided Interest.

Option 3: Partition Action (Court)

If negotiation fails and buyout isn't possible, the remaining heirs can file a petition for partition in court. The court will order the property to be divided or sold with proceeds divided.

9. Special Cases

Agricultural Land

Agricultural land has additional requirements:

• DAR Clearance: The Department of Agrarian Reform must certify the land is not covered by agrarian reform.
• Tenant Issues: If there are tenants, they may have rights under agrarian reform laws.
• Land Use Conversion: Additional approvals needed if selling to a developer for conversion.

Property Inherited from Grandparents

If your grandparent owned the property and your parent also passed away, the estate needs to be settled in stages:

1. First, settle the grandparent's estate (transfer to your parent's name)
2. Then settle your parent's estate (transfer to your name)

This means double the paperwork and double the estate tax filings.

Property with Existing Mortgage

• The loan doesn't disappear. Heirs inherit both the property and the debt.
• Contact the bank immediately — they may offer options to restructure.
• If selling, the sale proceeds pay off the remaining balance first.

Condo vs. House and Lot

The process is largely the same, but condos require:

• Association clearance (no unpaid dues)
• Move-out clearance
• Transfer fees charged by condo management

10. Realistic Timeline

What Causes Delays

• Slow SPA processing — embassy appointments, notarization backlogs
• Incomplete documents — missing birth certificates, lost titles
• BIR processing — understaffed RDOs, missing signatures
• Heir disagreements — even minor disputes add weeks
• Finding a buyer — provincial properties may take longer to sell

11. Common Mistakes to Avoid

1. Not Filing Estate Tax on Time

The 1-year deadline is firm. Even if you can't pay the full amount, file the return on time. You can request installment payments.

2. Assuming One Heir Can Decide for Everyone

Legally, all heirs must agree. One sibling cannot sell the property without the others' consent. Get everyone aligned before starting.

3. Selling Before Settlement

Some families try to sell "as-is" with the title still in the deceased's name. This creates massive legal problems. Complete the settlement process first — there are no shortcuts.

4. Undervaluing for Estate Tax Purposes

The BIR audits this. They have zonal values and can reject undervalued declarations. Declare fair market value — the tax savings aren't worth the audit risk.

5. Trusting the Wrong Person with SPA

Your attorney-in-fact will have legal authority to sell property worth millions and receive the proceeds. Consider appointing a licensed broker or lawyer with professional liability, and specify that proceeds must go directly to your bank account.

Related Guides

• How to Sell Property While Working Abroad
• SPA Guide for OFW Property Transactions
• Complete Pag-IBIG Housing Loan Guide

This guide is for informational purposes only and does not constitute legal or tax advice. Laws and regulations may change. Consult with licensed professionals for your specific situation.