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!

[perlitodignadice]

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.

[motostrollero]

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

[tesswall]

Thank you both Attorney, very helpful information ! 🙏🏼

[herminiamendoza]

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! 😍

[paulcmata]

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

[arasfronda]

Thank you for the insights Attorneys! Well delivered and explained.👍

[vervillanueva]

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

[fayeo.]

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

[champongkorea]

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.

[juvyjean]

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

[krizpearl]

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

[douglascanlassr.]

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! ! !

[melitaelizabethlardizabal]

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

[leela]

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 😊

[gloriavillelaagres]

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?

[pinoysenior]

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?

[noeltancangco]

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.

[cherrybellbuenaobra]

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

[jaysoncampos]

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..

[otrebor]

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.