Legal Procedure in Donating a House and Lot?
We refer to Article 725 of the New Civil Code, which reads as follows:
“Article 725. Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.”
By this definition, you as a donor voluntarily transfer ownership over a property to your intended recipient or donee, who, in turn, accepts the donated property as a donee.
For immovable properties such as land, the law provides that:
“Article 749. In order that the donation of an immovable may be valid, it must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy.
“The acceptance may be made in the same deed of donation or in a separate public document, but it shall not take effect unless it is done during the lifetime of the donor.
“If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted in both instruments.”
In other words, for there to be a valid donation, the law requires that a Deed of Donation be executed in a public document indicating the details of the property to be donated and conditions for the donations, if any.
It is also required that the person receiving the donation expressly manifest his or her conformity in receiving the donation in the same document of donation or in a separate document which must be executed within the lifetime of the donor.
These formal requirements in the preparation and execution of a Deed of Donation must be fully observed for there to be an actual valid donation.