Extrajudicial Settlement (Step by Step Process and Requirements)

An Extrajudicial Estate Settlement (ESE) allows heirs to divide a deceased person’s estate without court proceedings, provided that:

• The deceased left no will (intestate).
• There are no outstanding debts, or heirs agree to pay them.
• All heirs are of legal age or properly represented.
• All heirs agree on the distribution of the estate.

Publication Requirement

When the estate includes real property (land, houses, or other immovable assets), Philippine law requires the ESE or Affidavit of Self-Adjudication to be:

• Published in a newspaper of general circulation
• Once a week for three consecutive weeks
• In the province where the deceased resided or where the property is located

The publication serves as public notice to creditors, unknown heirs, and other interested parties who may have claims against the estate.

Information Included in the Notice

The published notice generally contains:

• Name of the deceased
• Date of death
• Names of the heirs
• Brief description of the property involved
• Statement that an extrajudicial settlement or self-adjudication has been executed

Proof of Publication

After publication:

• Obtain an Affidavit of Publication from the newspaper.
• Attach it, along with newspaper clippings, to the settlement documents.

Other Requirements

Before transferring property titles, heirs must:

• Execute and notarize the ESE or Affidavit of Self-Adjudication.
• Pay applicable estate taxes and secure a Certificate Authorizing Registration (CAR/eCAR) from the BIR.
• Post a bond if required.
• Submit all documents to the Register of Deeds for title transfer.

Consequences of Non-Compliance

Failure to publish may result in:

• Refusal of registration by the Register of Deeds.
• Delays or inability to transfer property titles.
• Continued exposure to claims by creditors or omitted heirs.
• Possible invalidation of the settlement by the courts.

Key Takeaway

Publication is a mandatory legal requirement for extrajudicial settlements involving real property. The notice must appear in a newspaper of general circulation once a week for three consecutive weeks to ensure transparency, protect third-party rights, and allow the proper transfer of property titles to the heirs.