Unpaid condominium unit

Unpaid condominium unit "My husband and I bought a condominium unit. At the time of his death, we were still paying the down payment and the balance is still outstanding as of today. When I requested the Registry of Deeds to remove my husband’s name as a co-buyer in the Title upon his death, the Registry of Deeds insisted that I should first settle the estate and clear the estate tax with the Bureau of Internal Revenue (BIR) before any amendment to the title can be made. Since this condominium unit is not yet fully paid upon my husband’s death, should this condo be considered as part of the “estate” of my husband? And should I first settle the estate tax with the BIR? AnnieDear Annie, To answer your query, we must respond to the following questions. First, whether the condominium unit bought at the time of your marriage is part of your community/conjugal property and second, whether the settlement of the estate is a condition precedent before any transfer of ownership involving the condominium unit can be annotated in the Title.With respect to the first question, Article 91 of Executive Order 209, otherwise known as “The Family Code of the Philippines,” provides, to wit: “Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements, the community property shall consist of all the property owned by the spouses at the time of the celebration of the marriage or acquired thereafter.”In a similar vein, under Article116 and Article 117 of the same law, it is stated that all the properties acquired during the marriage through onerous title at the expense of the common fund are conjugal property. A perusal of the law would dictate that the condominium unit is deemed part of the community/conjugal property regardless of the time when the marriage was celebrated since both property regimes dictate that a property bought during the marriage is considered a part of the community/conjugal property.Consequently, since the condominium unit is deemed a part of the community/conjugal property, the same is to be included in the liquidation of the community/conjugal property, which occurs upon the death of your husband. Pertinently, the Supreme Court in Noveras vs. Noveras (GR 188289, Aug. 20, 2014), through former Associate Justice Jose Perez, held, viz:“Art. 99 of the Family Code provides that the absolute community terminates upon the death of either spouse”xxx “Consequently, under Article 102 of the same Code, liquidation follows the dissolution of the absolute community regime.”Thus, the death of either spouse terminates the property relation of the spouses and will be followed by the liquidation. Briefly, it is only upon liquidation that the issue on the payment of the balance will be collated and charged.As to your second question, the BIR issued Revenue Regulation 3-2019, which provides that the Registry of Deeds shall not allow registration of any document transferring ownership of real property without a corresponding electronic Certificate Authorizing Registration (eCAR) duly issued by the BIR and retrieved by the Registry of Deeds through the LRA-BIR eCAR Verification System. Pertinently, before any eCAR will be issued, prior settlement of the estate is necessary as supported by Section 58(E) and Section 95 of the National Internal Revenue Code. Thus, settlement of the estate is indeed necessary before the Registry of Deeds can act upon your request.We hope that we were able to answer your queries. This advice is 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.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net" - https://www.affordablecebu.com/