Inherited Land

[vineyardworker]

Hi everyone,

Me and my 2 brothers inherited a land. One sibling(J) is interested to buy out the rest. Rest of siblings are wanting to build an apartment or sell publicly as J mentioned that according to law, any heirs/relative that is interested to purchase will be a priority. Issue is, he said that the price will be at a highly discounted rate (50% of market value) due to us being family (we thought this law might be real but rate is absurdly low). Sorry, I don't have an idea as I've been living in Canada for 15 years.

Is there anyone who can point me where I can find this law? I've been researching for days and got nothing.

Thanks peepz!

 

[lauraminn]

@vineyardworker Once you and your siblings become co-owners of the inherited property, each co-owner has a right of first refusal to buy out the other shares before it can be offered to third parties. This right exists only within 30 days from written notice of the intention to sell the co-owner’s share.

There is no requirement that the sale price to a co-owner be discounted, only that it won’t be excessive, i.e. not far from market value.

You can take a look at Articles 1620 and 1623 of the civil code of the philippines. This circumstance is termed as legal redemption of a co-owner.

As an alternative, you can ask to partition the property so each sibling can have shares separately titled. The usual issue on partitions is the manner, and location, of each partition.

 

[vineyardworker]

@lauraminn Thanks! I'll go and do some reading about that civil code! Our main worry is selling it at below market price if such law exists.

 

[jamief1990]

@vineyardworker They are the priority IF THEY ARE ALREADY OCCUPYING THE SPACE.

Again, "the priority' and NOT THE ONLY OPTION.

Also the law is not there to be abused, 50% discount is too much and no such law for such a big discount.

Kupal na sibling definitely.

If I were you just sell it to the other sibling (or sell it to anyone) or hold it. Dont let them build anything to it else you will have problems in the future. E now pa lang nga complicated na, magkakapatid pa kayo, pag sumali na mga anak (pamangkin) mas malala pang understanding yan (or lalo na nga apo na).

 

[dyesa]

@vineyardworker Regarding partition as an option, medyo madugo sya ha. Speaking from experience kasi meron kami ongoing partition.

Una sa lahat, ilan sqm ang property? Ano ang lot plan? Ilan side ng lot ang may frontage, at main road ba or side street?

Kasi kapag nag partition kayo, u are going to need to discuss all of that. Next naman is who will get which part? Lalo na if hindi maganda ang lot. Kung wala pa syang lot plan, kailangan nyo magpagawa kasi para tama ang shape at measurement ng lupa. Geodetic engineer is needed.

Ngayon palang, medyo kakaiba na magisip ang kapatid mo no such thing as 50% discount. Have the lot assessed for fair value, and ask around magkano ang bentahan near ur lot. From there, malalaman mo na magkano mo pwde benta.

Ang problema dyan if gusto nya bilhin pero ayaw nya sa presyo nyo. Another option is u, and ur other sibling buy him out.

But as early as now, ang masasabi ko lang better na 1 na lang ang mayari to prevent family quarrels.

 

[vineyardworker]

@dyesa Thank you! It sounded like our only option was to sell to him at lower $$$ due to that "law". I don't mind selling it based on market value or a bit lower than market value but definitely not 50%

 

[dyesa]

@vineyardworker That already gives u an idea of how ur brother is. U can talk to ur other brother to have an idea if sell din sya. If parehas kayong sell, u can work on ur selling prices together. And ano un last prices nyo. Para hopefully mas mabilis usapan.

Good luck

 

[thiena]

@vineyardworker To OP: Dont be fooled by your cunning sibling and the comments here.

There is no such thing as “priority ang heirs/relative” and at “50% discount”. Wala din right of first refusal dyan since ALL of the co-owners (J included) are selling.

If were talking significant sums here, my best advice is to lawyer up. If hindi naman ganon kalaki, pa-buyout ka nalang sa iba mong mga kapatid for a fair amount and keep your peace of mind.

 

[doingwhatjesusdid]

@vineyardworker There is no such law. The property you inherited right now is pro indiviso. Undivided. The limits and boundaries of lot ownership of each sibling has not been defined per se. Best if you execute a partition agreement and decide how the lot will be divided individually to each sibling. Hire a geodetic engineer and a lawyer who can draft a partition agreement and eventually have those lots individually titled.

 

[mirrorport]

@vineyardworker NO SUCH LAW. Tell your creative brother run for congress, win, then legislate it.

 

[kekeli]

@mirrorport Meron right of first refusal pero ni mekus mekus ni brother kasi gago sya

 

[thiena]

@kekeli Anong right of first refusal pinagsasabi mo e gusto nga ng co-owners patayuan ng apartment and or ibenta?

 

[kekeli]

@thiena By law, your neighbor (lots on your left / right), people mentioned on the title, shareholders of a company where the title is named under have the first right to be offered or the first to refuse the purchase of the property.

The issue with them is 1 sibling wants to buy out the property (he wants is claiming right of first refusal) but the caviat is gusto nya low ball offer which is shady. While the rest wants to develop - and thats a typical magkakapatid agawan sa lot story.

Usually if meron isang sibling willing to buy out ang discount lang nya is ang share nya so (ex 4 magkakapatid he only pays 3/4) and si buyer magsshoulder lahat ng transfer expenses and tax purchased at FMV. Or suklian ng ibang lots or stocks.

 

[thiena]

@kekeli You are confusing legal redemption with right of first refusal (which if we are strictly speaking, is not applicable here kasi walang contractual obligation ang parties).

Besides OP does not mention any interested adjacent lot owners and or shareholders in his query (not even a corporation was mention ffs) so why assume that there are?

READ OP’s query again. READ.

 

[thiena]

@kekeli And oh, it’s caveat; not caviat.

 

[spiderkiller007]

@mirrorport Even better, run for president

 

[bibletruths]

@vineyardworker Bakit 50% discount? 50% ba ng lupa siya dapat ang magmamana? Discount lang kung ano yung stake na niya kung tatlo kayo magkakapatid tanggap pa yung 33% discount kasi technically 33% ay kaniya na. But if you ask me generous na yung 10-20% kasi yung lupa niya tataas pa yan, yung pera niyo kakainin lang Yan ng inflation. Alangan nga namang bayaran pa niya sarili niya pero pwede rin tas hampas mo sa kaniya share niya bwisit hahaha /s

 

[vineyardworker]

@bibletruths Nah, so we have equal shares. Let's say each shares is 500sqm @ 2M - so because of this "law" he will buy us out at 1M.

 

[bibletruths]

@vineyardworker Just sell it outside the family and split the cash. He can buy land with his share elsewhere.

 

[throwawaymana]

@vineyardworker So to get this straight - 3 kayo magkakapatid - 1 gusto bilhin yung shares nung dalawa at ikaw at isa mong kapatid niyo na ibenta or patayuan ng apartment na I'm guessing for rent. Only do the rent part if there will be sure renters otherwise sell.

Yung 50% walang batas pero baka gustong presyong kapatid. Kung di mo naman kailangan ng extra pera then benta mo na para wala na gulo. Madami na ang pamilyang sinira sa agawan ng lupa. Kaya talaga dapat bago mamatay magpapamana prepared na mga hati para wala na gulo.