When children inherit land, it is common for one sibling to invest more than others—such as by building a house on a specific portion of the property. However, this often leads to a complex emotional and financial tug-of-war when the other siblings decide they would rather sell the entire estate for cash.

Dear Atty. Duran,

Good day, Atty!

My mom (the eldest child) and her siblings inherited land from my grandfather. Years ago, she built a house on the prime lot, which her siblings would use when visiting.

Now, they claim no knowledge of the improvement, and they want to sell the land with the house. Of course, my mom doesn’t want to sell. She held the title and paid the estate tax, but she gave it to them assuming the house would be excluded from any sale.

Now, Atty., can my mom keep the house? Can she choose which part of the land to claim? Does being the eldest give her any advantage? Do her siblings have the right to sell the house or share any proceeds?

I’d really appreciate your legal guidance.

Curious Daughter

Dear Curious Daughter, 

Thank you for your inquiry. Your mother’s situation presents a classic conflict between co-ownership and accession—a common complexity in estate settlement. While her siblings may assume that their interest in the land extends to all improvements, Philippine law maintains a clear distinction between land ownership and the ownership of structures built upon it.

Whether your mother can retain her home depends on the specific circumstances of its construction, the history of its use by the family, and the formal partition of the estate. These issues are governed primarily by the Civil Code of the Philippines (R.A. 386), which serves as the definitive authority on property relations, the settlement of estates, and the legal treatment of improvements made on commonly owned land.

Succession, Co-ownership, and Partition

In the Philippines, succession is the legal mode by which a decedent’s property, rights, and obligations are transmitted to their heirs. Under Article 777 of the Civil Code, this transmission occurs at the precise moment of death. Consequently, the heirs become legal co-owners immediately, even prior to the issuance of a new title or the formal settlement of the estate. From the instant of your grandfather’s passing, your mother and her siblings were vested with undivided interests in the property by operation of law.

Pending a formal partition and issuance of transfer title(s), all heirs exist in a state of co-ownership, where each possesses an abstract percentage of the entire estate rather than a specific physical portion. During this period, Article 486 permits each co-owner to use the common property, provided such use aligns with its intended purpose and does not prejudice the interests of the co-ownership or impede the rights of the other co-heirs.

The right to demand a partition under Article 494 is the legal bridge between the state of co-ownership and the finality of estate settlement. Such “undivided interests” are transformed into specific titled properties through either an Extrajudicial Settlement, which requires a unanimous agreement among all heirs via a deed, or a Judicial Partition if disputes arise.

The ‘Builder in Good Faith’ Principle

In Philippine property law, the general rule of accessorium sequitur principale (accessory follows the principal) dictates that improvements belong to the landowner. However, this rule is nuanced when a person builds on land he or she partly owns. Since your mother built a house on commonly owned property pursuant to Article 486, her rights are governed by the principles of co-ownership and accession. 

Moreover, under Article 448, a “builder in good faith” is afforded significant legal protection. With the apparent knowledge (and implied consent) of your mother’s siblings—who used the house for years during visits—she is presumed to be a builder in good faith. 

In terms of partition, Philippine jurisprudence, such as in Del Campo vs. Abesia, G.R. No. L-49219 (04-15-1988), establishes that the portion of land containing the improvements—such as a house—should be assigned to the co-owner who introduced them, provided it does not prejudice the rights of other co-owners. 

However, if the parcel on which the improvement stands is worth much more than her legal share, that co-owner may still retain possession of the property by compensating the other co-owners the excess value, or conversely, exercise the right of retention until full reimbursement for the value of the improvements is made. 

‘Eldest-Heir’ Advantage (Primogeniture) in Inheritance

Under Philippine law, the concept of primogeniture—or the granting of special privileges to the eldest child—has no legal standing. Pursuant to Article 980, the children of the deceased shall always inherit from him in their own right, with the estate being divided into equal shares. 

While your mother is the eldest of her siblings, Philippine law does not grant her any special preference or “prime” rights to the property. Any advantage your mother possesses, if any, stems not from her birth order, but from her status as a builder in good faith and her proactive role in preserving the estate by paying the necessary taxes, both of which grant her specific credits and rights of retention during the partition process.

Equally, under Article 1085, partition of the estate shall, as far as practicable, preserve equality by dividing property into similar lots or assigning co-heirs property of the same nature, quality, and kind. However, under Article 1086, if a property is indivisible or would be impaired by division, it may be adjudicated to one heir, subject to payment of the others’ shares in cash.

Rights of the Siblings to Sell the Undivided Property

Your mother’s siblings may sell the undivided property. Under Article 493, each co-owner has full ownership of their “ideal” or abstract share and may consequently alienate, assign, or mortgage it. However, the effect of such a sale is strictly limited to the portion that may be allotted upon the termination of the co-ownership or upon partition. 

While your mother’s siblings have the right to sell their respective interests in the land, they cannot sell the house itself (in which they do not own the improvement), nor can they sell a specific “prime” patch of land without the consent of all co-owners.  

If they sell the land to a third party without your mother’s consent, the buyer merely steps into the shoes of the selling siblings as a new co-owner and must respect your mother’s rights as a builder in good faith, including her right of retention. 

Payment of Estate Tax and Possession of Title

Payment of the estate tax is a mandatory administrative requirement under the National Internal Revenue Code (NIRC), as amended, and serves as the legal prerequisite for the settlement of any inheritance. 

While the physical possession of a land title (TCT) does not in itself grant absolute ownership, the heir who settles the estate tax—as your mother has done—secures a significant advantage by initiating the process for a Certificate Authorizing Registration (CAR), which allows the Register of Deeds to cancel the decedent’s title and issue new ones. 

Furthermore, under the principle of unjust enrichment, your mother’s payment of the taxes for the entire property creates a legal claim against her siblings, entitling her to reimbursement for their respective shares of the tax burden during the final partition of the estate.

Yes, your mother holds a superior legal position to retain her house as a builder in good faith. She has a legal right to either be assigned the specific land it sits on during the partition or be fully reimbursed for the improvement’s value before she can be forced to leave. 

While being the eldest provides no extra share—as all children inherit equally—her payment of estate taxes gives her a significant financial claim against her siblings.

Regarding the siblings’ demands, they may alienate their undivided interests in the land, but they lack the authority to sell the house or any specific physical lot without unanimous consent. Any third-party purchaser merely steps into the siblings’ shoes as a new co-owner, subject to your mother’s existing possessory rights.

I hope this provides a clear explanation and some initial guidance despite the limited information provided. For any further clarification or assistance with estate settlement in the Philippines, feel free to contact our team at Duran & Duran-Schulze Law. We are located just in Bonifacio Global City (BGC), Taguig, Metro Manila. You may call us at (02) 8478-5826 (landline) or +639171940482 (mobile), or email info@duranschulze.com.