Short answer. Yes, but only with court approval. Under Rule 95, Section 1 of the Rules of Court, the guardian of an incompetent adult may sell, mortgage or otherwise encumber the ward's real estate only after filing a verified petition and obtaining an order from the very court that made the appointment.
What the law says
When the income of an estate under guardianship is insufficient to maintain the ward and his family
Rule 95, Section 1 — Petition of guardian for leave to sell or encumber estate. Read the full provision →
What the law says
the guardian may present a verified petition to the court by which he was appointed setting forth such facts, and praying that an order issue authorizing the sale or encumbrance
Rule 95, Section 1 — Petition of guardian for leave to sell or encumber estate. Read the full provision →
The two grounds the rule recognises
Rule 95, Section 1 opens the door in two situations. The first is need: when the income of an estate under guardianship is insufficient to maintain the ward and his family, the guardian may seek leave to sell or encumber real estate to cover that shortfall. The second is advantage — when the sale or mortgage is for the benefit of the ward, with the proceeds put out at interest, or invested in some productive security, or used to improve or secure other real estate the ward owns. In both, the property is converted only so that it serves the ward better. Nothing in the rule lets a guardian deal with the land for the guardian's own convenience.
The guardian cannot simply sign a deed
The common assumption — that a court-appointed guardian stands in the ward's shoes and can therefore sell like an owner — is exactly what the rule rejects. The guardian must present a verified petition to the court by which he was appointed setting forth such facts, and praying that an order issue authorizing the sale or encumbrance. Two details matter. The petition is verified, so the guardian swears to the facts justifying the sale. And it goes to the appointing court, not any court: the judge who placed the property under guardianship supervision decides whether it may leave the estate. Until that order issues, there is no authority to sell or mortgage anything.
This rule now governs incompetent adults, not minors
Rule 95 speaks of maintaining and educating a minor ward, but that part of its work is done. Since 1 May 2003, guardianship of minors has been governed by A.M. No. 03-02-05-SC, the Rule on Guardianship of Minors, which amended Rules 92 to 97 in that respect. Guardianship of incompetents who are not minors continues to be governed by the Rules of Court. So if your ward is an adult who has been judicially declared incompetent — through illness, advanced age or disability — Rule 95 is the procedure for selling or mortgaging their land. If the ward is a child, the 2003 Rule applies instead.
What to prepare before petitioning
The petition stands or falls on the facts it sets forth, so gather the evidence behind the ground you invoke. For the need ground, that means a picture of the estate's income against the actual cost of the ward's maintenance and the family's — medical bills, care expenses, the rentals or earnings the property produces. For the benefit ground, be ready to show what the proceeds will do: the interest-bearing placement, the productive investment, or the improvement to the ward's other real estate. A lawyer will also need the guardianship case number and letters of guardianship, since the petition returns to the same court that issued them.