Dear PAO,

My mother was awarded a residential lot by the National Housing Authority (NHA) in 2015. After my mother’s untimely demise earlier this year, my older brother expressed his intent to assume the title over the awarded lot in his name alone. Is he correct?

Ellie

Dear Ellie,

The New Civil Code of the Philippines ensures that the estate of a deceased person is divided according to specific rules. Our laws are so designed in order to protect the rights of all legal heirs, and ensure that they receive their rightful shares in the estate of the deceased person.

When a person dies intestate or without leaving a will, the distribution of his/her estate shall be based on the provisions of legal or intestate succession. Article 961 of the New Civil Code specifies the compulsory heirs in such a case as follows: 1) legitimate children and descendants; 2) legitimate parents and ascendants; 3) the surviving spouse; and 4) illegitimate children. Generally, legitimate children are entitled to receive equal shares of the estate. (Article 980, in relation to Article 983 of the New Civil Code)

Similarly, the National Housing Authority (NHA) allows the transfer of award and corresponding rights and obligations over an awarded lot through hereditary succession. When the original awardee of a lot from the NHA passes away, the rights and obligations over said property form part of his/her estate, which shall then be distributed to the compulsory heirs in accordance with the law. Consequently, in the absence of a co-borrower, the responsibility for continuing the loan amortization likewise falls on the legal heirs. (National Housing Authority 2021 Citizen’s Charter Handbook, p. 17)

In your case, upon the death of your mother, her rights and corresponding obligations over the awarded lot were transmitted by operation of law to you and your brother as her compulsory heirs. (Valente Raymundo v. Teofista Isagon Vda. De Saurez, et al., GR 149017, Nov. 28, 2008, Ponente: Associate Justice Antonio Eduardo Nachura)

Because you and your brother are entitled to receive equal shares of the awarded lot, you also share the same responsibilities and obligations associated with those shares. If your brother wishes to acquire sole ownership of the subject property, he may offer to buy your share in exchange for your waiver of rights in his favor. Note, however, that in any case, the approval of the awarding agency ― the NHA, is necessary before the transfer of rights may be effected.

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your continued trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]