land titles and deed 2nd exam

8/10/2019 Land Titles and Deed 2nd Exam

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AttyYekkyNotes Land Titles and deeds 2ndExam Manresa 2012-2013

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LAND TITLES AND DEEDS SECOND EXAM COVERAGE

APPLICANTS FOR ORIGINAL LAND REGISTRATION

Lands of the Public Domain; Constitutional Provisions:

Section 2- on Regalian Doctrine and IPRA. With the exception of

agricultural lands, all other types of land cannot be alienated; only

agricultural lands are susceptible of private appropriation.

Section 2.All lands of the public domain, waters, minerals,

coal, petroleum, and other mineral oils, all forces of

potential energy, fisheries, forests or timber, wildlife, flora

and fauna, and other natural resources are owned by the

State. With the exception of agricultural lands, all other

natural resources shall not be alienated. The exploration,

development, and utilization of natural resources shall be

under the full control and supervision of the State. The

State may directly undertake such activities, or it may

enter into co-production, joint venture, or production-

sharing agreements with Filipino citizens, or corporations

or associations at least sixty per centum of whose capital is

owned by such citizens. Such agreements may be for aperiod not exceeding twenty-five years, renewable for not

more than twenty-five years, and under such terms and

conditions as may be provided by law. In cases of water

rights for irrigation, water supply fisheries, or industrial

uses other than the development of water power,

beneficial use may be the measure and limit of the grant.

practically, apart from other natural resources of the state, agri

lands are declared by constitutional fiat as alienable and disposable)

The State shall protect the nation's marine wealth in its archipelagic

waters, territorial sea, and exclusive economic zone, and reserve its

use and enjoyment exclusively to Filipino citizens.

The Congress may, by law, allow small-scaleutilization of natural resources by Filipino citizens, as well

as cooperative fish farming, with priority to subsistence

fishermen and fish- workers in rivers, lakes, bays, and

lagoons.

The President may enter into agreements with

foreign-owned corporations involving either technical or

financial assistance for large-scale exploration,

development, and utilization of minerals, petroleum, and

other mineral oils according to the general terms and

conditions provided by law, based on real contributions to

the economic growth and general welfare of the country.

In such agreements, the State shall promote the

development and use of local scientific and technicalresources.

The President shall notify the Congress of every

contract entered into in accordance with this provision,

within thirty days from its execution.

SECTION 3: CLASSIFIFICATION.

Section 3.Lands of the public domain are

classified into agricultural, forest or timber, mineral lands

and national parks. Agricultural lands of the public domain

may be further classified by law according to the uses to

which they may be devoted. Alienable lands of the public

domain shall be limited to agricultural lands. Private

corporations or associations may not hold such alienable

lands of the public domain except by lease, for a period not

exceeding twenty-five years, renewable for not more than

twenty-five years, and not to exceed one thousand

hectares in area. Citizens of the Philippines may lease not

more than five hundred hectares, or acquire not more than

twelve hectares thereof, by purchase, homestead, or grant.

Taking into account the requirements of

conservation, ecology, and development, and subject to

the requirements of agrarian reform, the Congress shall

determine, by law, the size of lands of the public domain

which may be acquired, developed, held, or leased and the

conditions therefor.

In the light of these constitutional provisions, what would be the

limitations imposed upon persons and corporations if they wish to

acquire agricultural lands and private lands?

1. ACQUISITION OF LANDS of the PUBLIC DOMAIN

a. For forest lands, mineral and national parks:

Neither a Filipino citizen nor a corporation may acquire

b. With respect to alienable/disposable agricultural lands,

only 2 classes of persons may acquire:

As a rule, only Filipino citizens. (Filipino corporations

cannot apply but can LEASE)

2. ACQUISITION OF PRIVATE LANDS

a. Filipino citizens

b. corporations or partnerships with least 60% of the shares

are owned by Filipinos are entitled to acquire land in the

Philippines.

Is there a constitutional provision on alienation of private lands?

Section 7. Save in cases of hereditary succession,

no private lands shall be transferred or conveyed except to

individuals, corporations, or associations qualified to

acquire or hold lands of the public domain.

The proposition of Section 7 is that the law subordinates the ability

of person/corporation to acquire private lands in its own ability to

acquire lands of the public domain. SoIfyou are not allowed to

acquire lands of PD, you are also not allowed to acquire private

landslands susceptible of private appropriation, or previously

appropriated by a private individual. From the moment land isdeclared as A/D and subsequently alienated, that land which is also

alienable is now in itself private land and no longer land of the public

domain. This means simply that if you cannot acquire, land of PD,

you also cannot acquire Private lands. The capacity to acquire

private land is dependent on capacity to acquire/hold lands of the

public Domain. PL may only be transferred or acquired only to

persons or entitieswho are qualified to acquire lands of the PD

under Article 12 of the constitution. The 1987 constitution reserves

the right to participate in the EDD and U of lands of the public

domain to Filipino citizens or corporations to Filipino citizens or

associations at least sixty per centum of whose capital is owned by

such citizens. Aliens therefore, be it individuals or corporations,

therefore have been disqualified from acquiring public lands. Hence,

aliens whether individuals or corps have also been disqualified fromacquiring private lands.

Who are citizens of the Philippines?

Section 1.The following are citizens of the Philippines:

[1] Those who are citizens of the Philippines at the time of

the adoption of this Constitution;

[2] Those whose fathers or mothers are citizens of the

Philippines;

[3] Those born before January 17, 1973, of Filipino

mothers, who elect Philippine citizenship upon reaching the

age of majority; and

[4] Those who are naturalized in accordance with law.

TYPES OF APPLICANTS

2 general classes of Filipinos: natural born and naturalized?

Importance:

1. know who are citizens of the Philippinesdetermine law

applicable CA 141 or PD 1529.

2. Natural born v. naturalized, in terms of ability to acquire

lands of the public domain or private lands in the

Philippines.


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SIGNIFICANCE OF DISTINCTION

Are there instances allowed by law where a foreigner or non-Filipnio

Citizen where they are allowed to acquire lands in the Philippines?

YES. IN the same section 7save in cases of HEREDITARY

SUCCESSION. A non-filipino may be a transferee of public

lands if he is such by virtue of hereditary succession.

Problem: A is a Filipino citizen and he has lands in the pHils. Before

he died, he executed a will w/c provides that he included a devise. He

devised certain properties that he owns to X who is an American

citizen. It seems therefore, that that would fall within the exception

as that would fall under exception?

NO. we are talking about hereditary and NOT testate

succession.

When the consti speaks of hereditary succession, it only refers to

LEGAL OR INTESTATE SUCCESSION. For in testate successionthere

is testation by means of will where he names beneficiaries of his

estate, etc. it is not even required that his beneficiaries are his

relatives for so long as it does not impair the legitime of his

compulsory heirs. (Spouse, children or their parents) if the legitimeis affected, the bequest can be declared inofficious and should be

reduced accordingly. If you allow testate succession to be covered, it

would be very easy to circumvent the prohibition for aliens to

acquire lands in the Philippines by just simply including them in the

will.

HEREDITARY SUCCESSION--On legal or intestate successionone

where there was no will written. The division of the property will be

followed by civil code of the family code.

Can there be legal succession despite the fact that there was a will?

YES. If the will is invalidated subsequently for some specific reasons.

What if the deceased Filipino had a child who is not a Filipino citizen,he made a last will and testament and he included therein devise for

that child?ALLOWED.Because the children, apart from being a

voluntary heir is also a compulsory heir.

2nd

exception:

Suppose I am Joseph Estrada, and then I changed by citizenship. Can

I acquire lands of the public domain? Private lands in the Philippines?

Next thing you need to ask, is he natural-born? YES. Coz he is the

past president of the Philippines. But he is no longer a Filipino citizen,

can he be allowed?

YES. Article 12, Section 8. Notwithstanding the provisions

of Section 7 of this Article, a natural-born citizen of the Philippines

who has lost his Philippine citizenship may be a transferee of privatelands, subject to limitations provided by law.

BP 185also allows formal natural born Filipinos to acquire.

3rd

exception:

acquisition by a dual citizen under RA 9225. Under the said

law, the Consti declares that dual citizenships or dual allegiance

(propert term) is inimical to public interest and should be dealth

with by law.

Contradiction of terms: RA 9225 (Dual Citizenship Act of 2007)..this

law provides that if you are a former natural-born, you may apply

for dual citizenship and in so doing, for all intents and purposes, yourevert back to your old status. Therefore, if you are merely a formal

natural born and you lost citizenship, there are limiations. If you are

a dual citizen, these limiatiaons will no longer apply. If that is dual

allegiance. We are actually sanctioning duall allegiance! How does

the law deal with it? It gives dual citizens equal status with Fiulipino

citizens!

4th

exception

Aliens who acquire properties before the effectivity of

the 1935 Constitution.

5th

exception:

Purchase of not more than 40% interest as a whole in a

condominium project. If you want to say that you own

proportionately the lands, then it is a circumvention but an

allowable exception.

6th

exception:

lands acquired by americans prior to July 4, 1946.Why?

Prior to this period, Americans governed the Philippines and in sodoing, they allowed themselves to acquire property. Vested right is

respected.

7th

exception:

PRESIDENTIAL DECREE No. 713 May 27, 1975

Allowing americans who were formerly filipino citizens, americans

who became permanent residents of the philippines, and americans

who have resided in the philippines continuously for at least twenty

years and who in good faith had acquired private residentiallands for

family dwelling purposes in the philippines prior tojuly 3, 1974to

continue holding such lands and transfer ownership over the same

to qualified persons or entities

OTHERWISE STATED, Lands acquired by Americans before July 3,

1974, provided the ff. requisites are present:

1. They are formerly Filipino citizens or one who had

continuously resided in the phils for more than 20yrs

or have become permanent residents and had

acquired private residential lands not exceeding five

thousand (5,000) square meters for a family dwelling

before the expiration of the Philippine-United States

Trade Agreement on midnight July 3, 1974

Under the Parity Amendment, the Americans were given

equal opportunities by the then President marcos.

STATUS OF FORMAL NATURAL BORN CITIZENS AND THEIR ABILITY

TO ACQUIRE

Qualifications of Former Filipinos

Both laws (BP 185 and RA 7049) define former Filipinos as citizens

of the Philippines from birth without having to perform any act to

acquire or perfect their Philippine citizenship, who lost said

Philippine citizenship, and who have the legal capacity to enter into

a contract under Philippine laws.

BATAS PAMBANSA BILANG 185

AN ACT TO IMPLEMENT SECTION FIFTEEN OF ARTICLE XIV OF THE

CONSTITUTION AND FOR OTHER PURPOSES.

Section 1.In implementation of Section fifteen of Article XIV of the

Constitution, a natural-born citizen of the Philippines who has lost

his Philippine citizenship may be a transferee of private land, for use

by him as his residence, subject to the provisions of this Act.

Section 2.Any natural-born citizen of the Philippines who has lost his

Philippine citizenship and who has the legal capacity to enter into a

contract under Philippine laws may be a transferee of a private land

up to a maximum area of one thousand square meters, in the case of

urban land, or one hectare in the case of rural land, to be used by

him as his residence. In the case of married couples, one of them

may avail of the privilege herein granted; Provided, That if both shall

avail of the same, the total area acquired shall not exceed the

maximum herein fixed.

In case the transferee already owns urban or rural lands for

residential purposes, he shall still be entitled to be a transferee of

additional urban or rural lands for residential purposes which, when

added to those already owned by him, shall not exceed the

maximum areas herein authorized.

Section 3.A transferee under this Act may acquire not more than

two lots which should be situated in different municipalities or cities

anywhere in the Philippines; Provided, That the total area thereof

shall not exceed one thousand square meters in the case of urban

lands or one hectare in the case of rural lands for use by him as

urban land shall be disqualified from acquiring rural land, and vice

versa.

Section 4.As used in this Act - (a) A natural-born citizen is one who

is a citizen of the Philippines from birth without having to perform

any act to acquire or perfect his Philippine citizenship.


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(b) Urban areas shall include:

(1) In their entirety, all municipal jurisdictions which,

whether designated as chartered cities, provincial capitals

or not, have a population density of at least 1,000 persons

per square kilometer;

(2) Poblaciones or central districts of municipalities and

cities which have a population density of at least 500

persons per square kilometer;

(3) Poblaciones or central districts (not included in 1 and 2)regardless of population size which have the following:

(a) Street pattern, i.e., network of streets in

either at parallel or right angle orientation;

(b) At least six establishments (commercial,

manufacturing, recreational and/or personal

services); and

(c) At least three of the following:

1. A town hall, church or chapel with

religious services at least once a

month;

2. A public plaza, park or cemetery;

3. A market place or building where

trading activities are carried on at least

once a week; and4. A public building like a school,

hospital, puericulture and health

center or library.

(4) Barangays having at least 1,000 inhabitants

which meet the conditions set forth in sub-

paragraph (3) of paragraph (b) above, and in

which the occupation of the inhabitants is

predominantly other than farming or fishing.

(5) All other areas of the Philippines which do

not meet the conditions in the preceding

definition of urban areas shall be considered as

rural areas.

Section 5. Transfer as a mode of acquisition of private land under

this Act refers to either voluntary or involuntary sale, devise ordonation. Involuntary sales shall include sales on tax delinquency,

foreclosures and executions of judgment.

Section 6.In addition to the requirements provided for in other laws

for the registration of titles to lands, no private land shall be

transferred under this Act, unless the transferee shall submit to the

register of deeds of the province or city where the property is

located a sworn statement showing the date and place of his birth;

the names and addresses of his parents, of his spouse and children,

if any; the area, the location and the mode of acquisition of his land-

holdings in the Philippines, if any; his intention to reside

permanently in the Philippines; the date he lost his Philippine

citizenship and the country of which he is presently a citizen; and

such other information as may be required Section 8 of this Act.

Section 7. The transferee shall not use the lands acquired under thisAct for any purpose other than for his residence. Violations of this

Section, any misrepresentation in the sworn statement required

under Section 6 hereof, any acquisition through fraudulent means or

failure to reside permanently in the land acquired within two years

from the acquisition thereof, except when such failure is caused by

force majeure, shall, in addition to any liability under the Revised

Penal Code and deportation in appropriate cases, be penalized by

forfeiture of such lands and their improvements to the National

Government. For this purpose the Solicitor General or his

representative shall institute escheat proceedings.

Any transferee liable under this Section shall moreover be forever

barred from further availing of the privilege granted under this Act.

Section 8. The Minister of Justice shall issue such rules and

regulations as may be necessary to carry out the provisions of this

Act. Such rules and regulations shall take effect fifteen days

following its publication in a newspaper of general circulation in the

Philippines.

Section 9. If any part of this Act shall be declared unconstitutional,

the remaining provisions not thereby affected shall remain in full

force and effect.

Section 10. This Act shall take effect upon its approval.

Approved: March 16, 1982

URBAN LANDland that is no longer for cultivation (i.e. Davao city,

no longer agricultural in classification. If that it is so, he may acquire

1000sq m for use as his residence.

If walay urban land available, pwede 1 has. Of rural land; lands not

yet developed. REMEMBER: pwede xa mukuha ug 1000sq.m if

residential in classifaction or 10,000sq m or 1hectare of agri land but

the purpose is purely RESIDENTIAL. (under BP 185; law requires that

eh property so acquired shall be used as his residence.

DISTINCTION BETWEEN NATURAL BORN, DUAL CITIZEN UNDER RA

9225 AND NATURAL BORN WHO LOST ITS CITIZENSHIP

NATURAL BORN DUAL NAT-BORN AND

LOST CITIZENSHIP

You can acquire as

much land is

allowed under

existing laws. Dili ka

limited sa 1K sq.m or

1 hecatre rural land

Same advantages

with ctiizens of the

Philippines;

therefore not

limited to the

exceptions

mentioned above.

1000sq urban land

and 1 hectare for

rural land

If the former nat-born citizen already owns rural/urban land ,pwede

ba pa mukuha dungag ug land under BP 185?

YES. For as long as ti does nto exceed these allowed

limitations (i.e. mu-excess ug 1K sqm or 1 hecatare)

If mag-asawa, born Filipino citizens, pwede ba mukuha ang both ug

1sqm.urban each?

NO. accdg to 185, the privilege given by the law for

acquisitiuiton of urban/rural lands apply jointly to spouses. For if

both spouses shall avail of the same, the maximum total area

acquired should nto exceed the maximum.

Can both spouses acquire 2 lots? If 400sq. m first, then palit ug

another 600sqm?YES. Basta dili mulampas ug 1000sq.m.

If I want to buy more, 300sq, 400sq, then 300sq, 3 residential lots?

No. EVEN if allowed under 1Ksq m limiter, former nat born

citizen, cannot acquire more than two lots. When he acquires two

lots, it must be situated in different cities and municipalities.

if he has acquired urban land already, can he still acquire 1

ehactare rural?

No. FROM acquiring urban, you are disqualified from

acquiring rural and vice-versa. (pili lang ka kung unsa ang ganahan

nimu, 1 hectare rural or 1000sq urban)

Katong former nat-born citizen, kung ganahan mgnegosyo, pwede

mukuha ug pangnegosyo?

Yes. Under another law. Under RA 7242 as amended by RA

8179RA 7242(foreign investments act of 1991).

Republic Act No. 7042 June 13, 1991

AN ACT TO PROMOTE FOREIGN INVESTMENTS, PRESCRIBE THE

PROCEDURES FOR REGISTERING ENTERPRISES DOING BUSINESS IN

THE PHILIPPINES, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled::

Section 1. Title. - This Act shall be known as the, "Foreign

Investments Act of 1991".

Section 2. Declaration of Policy. - It is the policy of the State to

attract, promote and welcome productive investments from foreign

individuals, partnerships, corporations, and governments, including

their political subdivisions, in activities which significantly contribute

to national industrialization and socioeconomic development to the

extent that foreign investment is allowed in such activity by the

Constitution and relevant laws. Foreign investments shall be

encouraged in enterprises that significantly expand livelihood and

employment opportunities for Filipinos; enhance economic value of

farm products; promote the welfare of Filipino consumers; expand

the scope, quality and volume of exports and their access to foreign

markets; and/or transfer relevant technologies in agriculture,

industry and support services. Foreign investments shall be welcome


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as a supplement to Filipino capital and technology in those

enterprises serving mainly the domestic market.

As a general rule, there are no restrictions on extent of foreign

ownership of export enterprises. In domestic market enterprises,

foreigners can invest as much as one hundred percent (100%) equity

except in areas included in the negative list. Foreign owned firms

catering mainly to the domestic market shall be encouraged to

undertake measures that will gradually increase Filipino

participation in their businesses by taking in Filipino partners,electing Filipinos to the board of directors, implementing transfer of

technology to Filipinos, generating more employment for the

economy and enhancing skills of Filipino workers.

Section 3. Definitions.- As used in this Act:

a) The term "Philippine national" shall mean a citizen of

the Philippines or a domestic partnership or association

wholly owned by citizens of the Philippines; or a

corporation organized under the laws of the Philippines of

which at least sixty percent (60%) of the capital stock

outstanding and entitled to vote is owned and held by

citizens of the Philippines; or a trustee of funds for pension

or other employee retirement or separation benefits,

where the trustee is a Philippine national and at least sixty

(60%) of the fund will accrue to the benefit of thePhilippine nationals: Provided, That where a corporation

and its non-Filipino stockholders own stocks in a Securities

and Exchange Commission (SEC) registered enterprise, at

least sixty percent (60%) of the capital stocks outstanding

and entitled to vote of both corporations must be owned

and held by citizens of the Philippines and at least sixty

percent (60%) of the members of the Board of Directors of

both corporations must be citizens of the Philippines, in

order that the corporations shall be considered a

Philippine national;

b) The term "investment" shall mean equity participation

in any enterprise organized or existing under the laws of

the Philippines;

c) The term "foreign investment" shall mean as equityinvestment made by a non-Philippine national in the form

of foreign exchange and/or other assets actually

transferred to the Philippines and duly registered with the

Central Bank which shall assess and appraise the value of

such assets other than foreign exchange;

d) The praise "doing business" shall include soliciting

orders, service contracts, opening offices, whether called

"liaison" offices or branches; appointing representatives or

distributors domiciled in the Philippines or who in any

calendar year stay in the country for a period or periods

totalling one hundred eighty (180) days or more;

participating in the management, supervision or control of

any domestic business, firm, entity or corporation in the

Philippines; and any other act or acts that imply acontinuity of commercial dealings or arrangements, and

contemplate to that extent the performance of acts or

works, or the exercise of some of the functions normally

incident to, and in progressive prosecution of, commercial

gain or of the purpose and object of the business

organization: Provided, however, That the phrase "doing

business: shall not be deemed to include mere investment

as a shareholder by a foreign entity in domestic

corporations duly registered to do business, and/or the

exercise of rights as such investor; nor having a nominee

director or officer to represent its interests in such

corporation; nor appointing a representative or distributor

domiciled in the Philippines which transacts business in its

own name and for its own account;

e) The term "export enterprise" shall mean an enterprise

which produces goods for sale, or renders services to the

domestic market entirely or if exporting a portion of its

output fails to consistently export at least sixty percent

(60%) thereof; and

g) The term "Foreign Investments Negative List" or

"Negative List" shall mean a list of areas of economic

activity whose foreign ownership is limited to a maximum

of forty ownership is limited to a maximum of forty

percent (40%) of the equity capital of the enterprise

engaged therein.

Section 4. Scope. - This Act shall not apply to banking and other

financial institutions which are governed and regulated by the

General Banking Act and other laws under the supervision of the

Central Bank.

Section 5. Registration of Investments of Non-Philippine Nationals.

- Without need of prior approval, a non-Philippine national, as that

term is defined in Section 3 a), and not otherwise disqualified by law

may upon registration with the Securities and Exchange Commission

(SEC), or with the Bureau of Trade Regulation and ConsumerProtection (BTRCP) of the Department of Trade and Industry in the

case of single proprietorships, do business as defined in Section 3 (d)

of this Act or invest in a domestic enterprise up to one hundred

percent (100%) of its capital, unless participation of non-Philippine

nationals in the enterprise is prohibited or limited to a smaller

percentage by existing law and/or limited to a smaller percentage by

existing law and/or under the provisions of this Act. The SEC or

BTRCP, as the case may be, shall not impose any limitations on the

extent of foreign ownership in an enterprise additional to those

provided in this Act: Provided, however, That any enterprise seeking

to avail of incentives under the Omnibus Investment Code of 1987

must apply for registration with the Board of Investments (BOI),

which shall process such application for registration in accordance

with the criteria for evaluation prescribed in said Code: Provided,finally, That a non-Philippine national intending to engage in the

same line of business as an existing joint venture in his application

for registration with SEC. During the transitory period as provided in

Section 15 hereof, SEC shall disallow registration of the applying

non-Philippine national if the existing joint venture enterprise,

particularly the Filipino partners therein, can reasonably prove they

are capable to make the investment needed for they are competing

applicant. Upon effectivity of this Act, SEC shall effect registration of

any enterprise applying under this Act within fifteen (15) days upon

submission of completed requirements.

Section 6. Foreign Investments in Export Enterprises. - Foreign

investment in export enterprises whose products and services do

not fall within Lists A and B of the Foreign Investment Negative List

provided under Section 8 hereof is allowed up to one hundredpercent (100%) ownership.

Export enterprises which are non-Philippine nationals shall register

with BOI and submit the reports that may be required to ensure

continuing compliance of the export enterprise with its export

requirement. BOI shall advise SEC or BTRCP, as the case may be, of

any export enterprise that fails to meet the export ratio

requirement. The SEC or BTRCP shall thereupon order the non-

complying export enterprise to reduce its sales to the domestic

market to not more than forty percent (40%) of its total production;

failure to comply with such SEC or BTRCP order, without justifiable

reason, shall subject the enterprise to cancellation of SEC or BTRCP

registration, and/or the penalties provided in Section 14 hereof.

Section 7. Foreign Investments in Domestic Market Enterprises. -

Non-Philippine nationals may own up to one hundred percent(100%) of domestic market enterprises unless foreign ownership

therein is prohibited or limited by existing law or the Foreign

Investment Negative List under Section 8 hereof.

A domestic market enterprise may change its status to export

enterprise if over a three (3) year period it consistently exports in

each year thereof sixty per cent (60%) or more of its output.

Section 8. List of Investment Areas Reserved to Philippine Nationals

(Foreign Investment Negative List). - The Foreign Investment

Negative List shall have three (3) component lists: A, B, and C:

a) List A shall enumerate the areas of activities reserved to

Philippine nationals by mandate of the Constitution and

specific laws.

b) List B shall contain the areas of activities and

enterprises pursuant to law:

1) Which are defense-related activities, requiring

prior clearance and authorization from

Department of National Defense (DND) to

engage in such activity, such as the manufacture,

repair, storage and/or distribution of firearms,

ammunition, lethal weapons, military ordnance,

explosives, pyrotechnics and similar materials;

unless such manufacturing or repair activity is

specifically authorized, with a substantial export

component, to a non-Philippine national by the

Secretary of National Defense; or


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2) Which have implications on public health and

morals, such as the manufacture and distribution

of dangerous drugs; all forms of gambling;

nightclubs, bars, beerhouses, dance halls; sauna

and steambath houses and massage clinics.

Small and medium-sized domestic market

enterprises with paid-in equity capital less than

the equivalent of five hundred thousand US

dollars (US$500,000) are reserved to Philippinenationals, unless they involve advanced

technology as determined by the Department of

Science and Technology. Export enterprises

which utilize raw materials from depleting

natural resources, with paid-in equity capital of

less than the equivalent of five hundred

thousand US dollars (US$500,000) are likewise

reserved to Philippine nationals.

Amendments to List B may be made upon

recommendation of the Secretary of National Defense, or

the Secretary of Health, or the Secretary of Education,

Culture and Sports, indorsed by the NEDA, or upon

recommendation motu propio of NEDA, approved by the

President, and promulgated by Presidential Proclamation.c) List C shall contain the areas of investment in which

existing enterprises already serve adequately the needs of

the economy and the consumer and do not require further

foreign investments, as determined by NEDA applying the

criteria provided in Section 9 of this Act, approved by the

President and promulgated in a Presidential Proclamation.

The Transitory Foreign Investment Negative List

established in Sec. 15 hereof shall be replaced at the end

of the transitory period by the first Regular Negative List to

the formulated and recommended by the NEDA, following

the process and criteria provided in Section 8 and 9 of this

Act. The first Regular Negative List shall be published not

later than sixty (60) days before the end of the transitory

period provided in said section, and shall becomeimmediately effective at the end of the transitory period.

Subsequent Foreign Investment Negative Lists shall

become effective fifteen (15) days after publication in two

(2) newspapers of general circulation in the Philippines:

Provided, however, That each Foreign Investment

Negative List shall be prospective in operation and shall in

no way affect foreign investments existing on the date of

its publication.

Amendments to List B and C after promulgation and

publication of the first Regular Foreign Investment

Negative List at the end of the transitory period shall not

be made more often than once every two (2) years.

Section 9. Determination of Areas of Investment for Inclusion in List

C of the Foreign Investment Negative List. - Upon petition by aPhilippine national engage therein, an area of investment may be

recommended by NEDA for inclusion in List C of the Foreign

Investment Negative List upon determining that it complies with all

the following criteria:

a) The industry is controlled by firms owned at least sixty

percent (60%) by Filipinos;

b) Industry capacity is ample to meet domestic demand;

c) Sufficient competition exists within the industry;

d) Industry products comply with Philippine standards of

health and safety or, in the absence of such, with

international standards, and are reasonably competitive in

quality with similar products in the same price range

imported into the country;

e) Quantitative restrictions are not applied on imports of

directly competing products;

f) The leading firms of the industry substantially comply

with environmental standards; and

g) The prices of industry products are reasonable.

The petition shall be subjected to a public hearing at which affected

parties will have the opportunity to show whether the petitioner

industry adequately serves the economy and the consumer, in

general, and meets the above stated criteria in particular. NEDA may

delegate evaluation of the petition and conduct of the public

hearing to any government agency having cognizance of the

petitioner industry. The delegated agency shall make its evaluation

report and recommendations to NEDA which retains the right and

sole responsibility to determine whether to recommend to the

President to promulgate the area of investment in List C of the

Negative List. An industry or area of investment included in List C of

the Negative List by Presidential Proclamation shall remain in the

said List C for two (2) years, without prejudice to re-inclusion upon

new petition, and due process.

Section 10. Strategic Industries.- Within eighteen (18) months after

the effectivity of this Act, the NEDA Board shall formulate andpublish a list of industries strategic to the development of the

economy. The list shall specify, as a matter of policy and not as a

legal requirement, the desired equity participation by Government

and/or private Filipino investors in each strategic industry. Said list

of strategic industries, as well as the corresponding desired equity

participation of government and/or private Filipino investors, may

be amended by NEDA to reflect changes in economic needs and

policy directions of Government. The amended list of strategic

industries shall be published concurrently with publication of the

Foreign Investment Negative List.

The term "strategic industries" shall mean industries that are

characterized by all of the following:

a) Crucial to the accelerated industrialization of the

country,b) Require massive capital investments to achieve

economies of scale for efficient operations;

c) Require highly specialized or advanced technology

which necessitates technology transfer and proven

production techniques in operations;

d) Characterized by strong backward and forward linkages

with most industries existing in the country, and

e) Generate substantial foreign exchange savings through

import substitution and collateral foreign exchange

earnings through export of part of the output that will

result with the establishment, expansion or development

of the industry.

Section 11. Compliance with Environmental Standards. - All

industrial enterprises regardless of nationality of ownership shallcomply with existing rules and regulations to protect and conserve

the environment and meet applicable environmental standards.

Section 12. Consistent Government Action. - No agency,

instrumentality or political subdivision of the Government shall take

any action on conflict with or which will nullify the provisions of this

Act, or any certificate or authority granted hereunder.

Section 13. Implementing Rules and Regulations. - NEDA, in

consultation with BOI, SEC and other government agencies

concerned, shall issue the rules and regulations to implement this

Act within one hundred and twenty (120) days after its effectivity. A

copy of such rules and regulations shall be furnished the Congress of

the Republic of the Philippines.

Section 14. Administrative Sanctions. - A person who violates any

provision of this Act or of the terms and conditions of registration orof the rules and regulations issued pursuant thereto, or aids or abets

in any manner any violation shall be subject to a fine not exceeding

One hundred thousand pesos (P100,000).

If the offense is committed by a juridical entity, it shall be subject to

a fine in an amount not exceeding of 1% of total paid-in capital

but not more than Five million pesos (P5,000,000). The president

and/or officials responsible therefor shall also be subject to a fine

not exceeding Two hundred thousand pesos (P200,000).

In addition to the foregoing, any person, firm or juridical entity

involved shall be subject to forfeiture of all benefits granted under

this Act.

SEC shall have the power to impose administrative sanctions as

provided herein for any violation of this Act or its implementing

rules and regulations.

Section 15. Transitory Provisions. - Prior to effectivity of the

implementing rules and regulations of this Act, the provisions of

Book II of Executive Order 226 and its implementing rules and

regulations shall remain in force.

During the initial transitory period of thirty-six (36) months after

issuance of the Rules and Regulations to implement this Act, the

Transitory Foreign Investment Negative List shall consist of the

following:

A. List A:

1. All areas of investment in which foreign

ownership is limited by mandate of Constitution


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6

and specific laws.

B. List B:

1. Manufacture, repair, storage and/or

distribution of firearms, ammunitions, lethal

weapons, military ordinance, explosives,

pyrotechnics and similar materials required by

law to be licensed by and under the continuing

regulation of the Department of National

Defense; unless such manufacturing or repairactivity is specifically authorized with a

substantial export component, to a non-

Philippine national by the Secretary of National

Defense;

2. Manufacture and distribution of dangerous

drugs; all forms of gambling; nightclubs, bars,

beerhouses, dance halls; sauna and steam

bathhouses, massage clinic and other like

activities regulated by law because of risks they

may pose to public health and morals;

3. Small and medium-size domestic market

enterprises with paid-in equity capital or less

than the equivalent of US$500,000, unless they

involve advanced technology as determined bythe Department of Science and Technology, and

4. Export enterprises which utilize raw materials

from depleting natural resources, and with paid-

in equity capital of less than the equivalent

US$500,000.

C. List C:

1. Import and wholesale activities not integrated

with production or manufacture of goods;

2. Services requiring a license or specific

authorization, and subject to continuing

regulations by national government agencies

other than BOI and SEC which at the time of

effectivity of this Act are restricted to Philippine

nationals by existing administrative regulationsand practice of the regulatory agencies

concerned: Provided, That after effectivity of this

Act, no other services shall be additionally

subjected to such restrictions on nationality of

ownership by the corresponding regulatory

agencies, and such restrictions once removed

shall not be reimposed; and

3. Enterprises owned in the majority by a foreign

licensor and/or its affiliates for the assembly,

processing or manufacture of goods for the

domestic market which are being produced by a

Philippine national as of the date of effectivity of

this Act under a technology, know-how and/or

brand name license from such licensor duringthe term of the license agreement: Provided,

That, the license is duly registered with the

Central Bank and/or the Technology Transfer

Board and is operatively in force as of the date of

effectivity of this Act.

NEDA shall make the enumeration as appropriate of the areas of the

investment covered in this Transitory Foreign Investment Negative

List and publish the Negative List in full at the same time as, or prior

to, the publication of the rules and regulations to implement this

Act.

The areas of investment contained in List C above shall be reserved

to Philippine nationals only during the transitory period. The

inclusion of any of them in the regular Negative List will require

determination by NEDA after due public hearings that such inclusion

is warranted under the criteria set forth in Section 8 and 9 hereof.

Section 16. Repealing Clause. - Articles forty-four (44) to fifty-six

(56) of Book II of Executive Order No. 226 are hereby repealed.

All other laws or parts of laws inconsistent with the provisions of this

Act are hereby repealed or modified accordingly.

Section 17. Separability. - If any part or section of this Act is

declared unconstitutional for any reason whatsoever, such

declaration shall not in any way affect the other parts or sections of

this Act.

Section 18. Effectivity. - This Act shall take effect fifteen (15) days

after approval and publication in two (2) newspaper of general

circulation in the Philippines.

Approved: June 13, 1991

Republic Act No. 8179

AN ACT TO FURTHER LIBERALIZE FOREIGN INVESTMENTS,

AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7042, AND FOR

OTHER PURPOSESSECTION 1. Section 3, paragraph (a), of Republic Act No. 7042,

otherwise known as the Foreign Investments Act of 1991, is

hereby amended to read as follows:

Section 3. Definitions. As used in this Act:

*a+ the term Philippine national shall mean a citizen of

the Philippines, or a domestic partnership or association

wholly owned by citizens of the Philippines; or a

corporation organized under the laws of the Philippines of

which at least sixty percent [60%] of the capital stock

outstanding and entitled to vote is owned and held by

citizens of the Philippines; or a corporation organized

abroad and registered asdoing business in the Philippines

under the Corporation Code of which one hundred

percent [100%] of the capital stock outstanding andentitled to vote is wholly owned by Filipinos or a trustee of

funds for pension or other employee retirement or

separation benefits, where the trustee is a Philippine

national and at least sixty percent [60%] of the fund will

accrue to the benefit of Philippine nationals: Provided,

That where a corporation and its non-Filipino stockholders

own stocks in aSecurities and Exchange Commission [SEC]

registered enterprise, at least sixty percent [60%] of the

capital stock outstanding and entitled to vote of each of

both corporations must be owned and held by citizens of

the Philippines, in order that the corporation shall be

considered a Philippine national.

SEC. 2.Sec. 7 of Republic Act No. 7042 is hereby amended to read as

follows:Sec. 7. Foreign investments in domestic market enterprises. Non-

Philippine nationals may own up to one hundred percent [100%] of

domestic market enterprises unless foreign ownership therein is

prohibited or limited by the Constitution and existing laws or the

Foreign Investment Negative List under Section 8 hereof.

SEC. 3.Section 8 of the Foreign Investments Act of 1991 is hereby

amended to read as follows:

Sec. 8. List of investment areas reserved to Philippine nationals

[Foreign Investment Negative List]. The Foreign Investment

Negative List shall have two [2] component lists: A and B:

[a]List A shall enumerate the areas of activities reserved

to Philippine nationals by mandate of the Constitution and

specific laws.

[b] List B shall contain the areas of activities and

enterprises regulated pursuant to law:

1. which are defense-related activities, requiring

prior clearance and authorization from the

Department of National Defense [DND] to

engage in such activity, such as the manufacture,

repair, storage and/or distribution of firearms,

ammunition, lethal weapons, military ordnance,

explosives, pyrotechnics and similar materials;

unless such manufacturing or repair activity is

specifically authorized, with a substantial export

component, to a non-Philippine national by the

Secretary of National Defense; or

2. which have implications on public health and

morals, such as the manufacture and distribution

of dangerous drugs; all forms of gambling;

nightclubs, bars, beer houses, dance halls, sauna

and steam bathhouses and massage clinics.

Small and medium-sized domestic market enterprises

with paid-in equity capital less than the equivalent of Two

hundred thousand US dollars [US$200,000.00], are

reserved to Philippine nationals: Provided, That if [1] they

involve advance technology as determined by the

Department of Science and Technology, or [2] they employ

at least fifty [50] direct employees, then a minimum paid-

in capital of One hundred thousand US dollars
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(US$100,000.00) shall be allowed to non-Philippine

nationals.

Amendments to List B may be made upon

recommendation of the Secretary of National Defense, or

the Secretary of Health, or the Secretary of Education,

Culture and Sports, endorsed by the NEDA, or upon

recommendation motu proprio, of NEDA, approved by the

President, and promulgated by a Presidential

Proclamation.The transitory Foreign Investment Negative List

established in Section 15 hereof shall be replaced at the

end of the transitory period by the First Regular Negative

Lists to be formulated and recommended by NEDA

following the process and criteria provided in Sections 8

and 9 of this Act. The First Regular Negative List shall be

published not later than sixty [60] days before the end of

the transitory period. Subsequent Foreign Investment

Negative List shall become effective fifteen [15] days after

publication in a newspaper of general circulation in the

Philippines: Provided, however, That each Foreign

Investment Negative List shall be prospective in operation

and shall in no way affect foreign investments existing on

the date of its publication.Amendments to List B after promulgation and publication

of the First Regular Foreign Investment Negative List at the

end of the transitory period shall not be made more often

than once very two *2+ years.

SEC. 4.Section 9 of the Foreign Investments Act of 1991 is hereby

amended to read as follows:

SEC. 9. Investment rights of former natural-born Filipinos. For

purposes of this Act, former natural-born citizens of the Philippines

shall have the same investment rights of Philippine citizens in

Cooperatives under Republic Act No. 6938, Rural Banks under

Republic Act No. 7353,Thrift Banks and Private Development Banks

under Republic Act No. 7906, and Financing Companies under

Republic Act No. 5980. These rights shall not extend to activities

reserved by the Constitution including [1] the exercise of profession;[2] in defense-related activities under Section 8 (b) hereof, unless

specifically authorized by the Secretary of National Defense; and [3]

activities covered by Republic Act No. 1180 [Retail Trade Act],

Republic Act No. 5487 [Security Agency Act],Republic Act No. 7076

[Small Scale Mining Act], Republic Act No. 3018, as amended [Rice

and Corn Industry Act], and P.D. 449 [Cockpits Operation and

Management+.

SEC. 5.The Foreign Investments Act is further amended by inserting

a new section designated as Section 10 to read as follows:

SEC. 10. Other rights of natural-born citizen pursuant to

the provisions of Article XII, Section 8 of the Constitution.

Any natural-born citizen who has lost his Philippine

citizenship and who has the legal capacity to enter into a

contract under Philippine Laws may be a transferee of aprivate land up to a maximum area of five thousand

[5,000] square meters in the case of urban land or three [3]

hectares in the case of rural land to be used by him for

business or other purposes. In the case of married couples,

one of them may avail of the privilege herein granted:

Provided, That If both shall avail of the same, the total

area acquired shall not exceed the maximum herein fixed.

In case the transferee already owns urban or rural land

for business or other purposes, he shall be entitled to be a

transferee of additional urban or rural land for business or

other purposes which when added to those already owned

by him shall not exceed the maximum areas herein

authorized.

A transferee under this Act may acquire not more than

two [2] lots which should be situated in different

municipalities or cities anywhere in the Philippines:

Provided, That the total land area thereof shall not exceed

five thousand [5,000] square meters in the case of urban

land or three [3] hectares in the case of rural land for use

by him for business or other purposes. A transferee who

has already acquired urban land shall be disqualified form

acquiring rural land and vice versa.

SEC. 6. The National Economic and Development Authority, in

consultation with the Board of Investments, the Department of

Trade and Industry and Securities and Exchange Commission, shall

prepare and issue the necessary primer and other information

campaign materials regarding the Foreign Investments Act and the

amendments introduced thereto, with copies of said materials

furnished all the Philippine embassies, consulates and other

diplomatic offices abroad and disseminated to Filipino nationals,

former natural-born Filipino citizens, and foreign investors, within

sixty [60] days after the effectivity hereof.

SEC. 7. The NEDA is hereby directed to make the necessary

amendments to the implementing rules and regulations of RepublicAct No. 7042 in order to reflect the changes embodied in the Act.

SEC. 8.Sections 9 and 10 of Republic Act No. 7042 and all references

thereto in said law are hereby repealed or modified accordingly. All

other laws, rules and regulation and/or parts thereof inconsistent

with the provisions of this Act are hereby repealed or modified

accordingly.

SEC. 9.If any part or section of this Act is declared unconstitutional

for any reason whatsoever, such declaration shall not in any way

affect the other parts or sections of this Act.

SEC. 10.This Act shall take effect fifteen [15] days after publication

in two [2] newspapers of general circulation in the Philippines.

Approved: March 28, 1996

_________

Republic Act No. 7042 was amended byRepublic Act No. 8179 whichwas approved on March 28, 1996. The date of effectivity thereof

was on April 15, 1996.

RA 7042, as amended by RA 8179

A former natural born Filipino citizen is entitled to an area

not in excess of not more 5000sq m if it is urban land or 3 hectares if

rural land, provided this is primarily, directly and actually used by

the transferee for commercial, business purposes whether it be on

agriculture or industry services including the lease of lands but

excluding the buying and selling thereof.

(later on I will exclude ang speculation of property.dili pwede angbuy and sell sa former natural born citizen. Later on , we will be

discussing SC cases werher property bought by a foreigner and

bought by a Filipino citizen. This can be done for so long as the

foreigner subsequently sells it to a Filipino. This is an absolute

prohibition.)

In RA 8179, it has same limitations as to BP 185. They

cannot acquire more than 2 lots. In the case of married couples, one

of them may avail of the privilege herein granted: Provided, That If

both shall avail of the same, the total area acquired shall not exceed

the maximum herein fixed by law.

SAME SAME SAME

SEC. 10.Other rights of natural-born citizen pursuant to the

provisions of Article XII, Section 8 of the Constitution. Any

natural-born citizen who has lost his Philippine citizenship

and who has the legal capacity to enter into a contract

under Philippine Laws may be a transferee of a private

land up to a maximum area of five thousand [5,000]

square meters in the case of urban land or three [3]

hectares in the case of rural land to be used by him for

business or other purposes. In the case of married couples,

one of them may avail of the privilege herein granted:

Provided, That If both shall avail of the same, the total

area acquired shall not exceed the maximum herein fixed.

In case the transferee already owns urban or rural land

for business or other purposes, he shall be entitled to be a

transferee of additional urban or rural land for business or

other purposes which when added to those already owned

by him shall not exceed the maximum areas herein

authorized.

A transferee under this Act may acquire not more than

two [2] lots which should be situated in different

municipalities or cities anywhere in the Philippines:

Provided, That the total land area thereof shall not exceed

five thousand [5,000] square meters in the case of urban

land or three [3] hectares in the case of rural land for use

by him for business or other purposes. A transferee who
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has already acquired urban land shall be disqualified form

acquiring rural land and vice versa.

Under both BP 185 AND RA 8179, dili pwede ang co-mingling of

classes of property..urban2x..rural-rural..pasensya ka kung kulangan

ka!

RECAP/DISTINCTIONS

Provisions on Land OwnershipThe following are the provisions of BP 185 and RA 7042, as

amended, pertinent to land ownership by Filipinos overseas:

Particulars Provision under BP 185 Provisions under RA

7042

as amended by RA

8179

Size/Area of

Coverage

Land Acquisition

for Both Spouses

Additional LandAcquisition

maximum of 1,000

sq. meters for urban

land

maximum of one (1)

hectare for rural land

either of the spousesmay avail of the

privilege

in case both spouses

wish to acquire lands

for this purpose, the

total area acquired

should not exceed the

maximum allowed

In case he/she already

owns urban or rural

lands for residentialpurposes, he/she may

acquire additional

urban or rural lands,

which when added to

those he/she presently

owns shall not exceed

the authorized

maximum area

maximum of 5,000

sq. meters for urban

land

maximum of three

(3) hectares for rural

land

either of the

spouses may avail of

the privilege

in case both

spouses wish to

acquire lands for this

purpose, the total

area acquired should

not exceed the

maximum allowed

In case he/she

already owns urbanor rural lands for

business purposes,

he/she may acquire

additional urban or

rural lands, which

when added to

those he/she

presently owns shall

not exceed the

authorized

maximum

Limits to

Acquisition of

Land

A person may acquire

not more than two (2)

lots which should be

situated in different

municipalities or cities

anywhere in the

Philippines, provided

that the total area of

these lots do not

exceed 1,000 sq.

meters for urban land

or one (1) hectare for

rural land for use as

residence.

An individual who has

already acquired urban

land shall be

disqualified from

acquiring rural land and

vice versa.

A person may

acquire not more

than two (2) lots

which should be

situated in different

municipalities or

cities anywhere in

the Philippines,

provided that the

total area of these

lots do not exceed

5,000 sq. meters for

urban land or three

(3) hectares for rural

land for business

purposes.

Under Section 4 of

Rule XII of the

Implementing Rules

and Regulations of

RA 7042 as amended

by RA 8179, a

transferee who has

already acquired

urban land shall be

disqualified from

acquiring rural land

and vice versa.

However, if the

transferee has

disposed of his/her

urban land, he/she

may still acquire

rural land and vice

versa, provided thatthis will be used for

business.

Use of Land

Special

Requirements

The acquired land

should not be used for

any purpose other

than for residence.

In addition to the

requirements

provided for in other

laws for the

registration of titles to

lands, the transferee

should submit to the

Register of Deeds of

the province or city

where the property is

located a sworn

statement stating the

following :

date and place of

birth;

names and addresses

of his/her parents,

spouse, and children,

if any;

area, location, and

mode of acquisition of

landholdings in the

Philippines, if any

his/her intention to

reside permanently in

the Philippines;

date he/she lost

his/her Philippine

citizenship and the

country of which

he/she is presently a

citizen

A transferee of

residential land

acquired under

Batas Pambansa Blg.

185 may still avail of

the privilege granted

under this law.

Section 5 of Rule XII

specifically states

that the land shouldbe primarily,

directly, and actually

used in the

performance or

conduct of the

owners business or

commercial activities

in the broad areas of

agriculture, industry

and services

including the lease

of land, but

excluding the buying

and selling thereof.

In addition to the

usual registration

requirements

pertinent to the

conveyance of real

estate, the transfer

contemplated shall

not be recorded

unless the transferee

submits to the

Registry of Deeds of

the province or city

where the land is

situated, the

following:

certification of

business registration

issued by the Bureau

of Trade Regulation

and Consumer

Protection of the

DTI;

sworn statement

stating information

required under Batas

Pambansa 185;

certification from

assessor of

municipality or

province where the

property is situated

that the subject land

for transfer is an

urban or rural area;

if an agricultural land

is acquired, a

certification from

the Department of


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9

Violations and

Penalties

Violations through:

misrepresentation

in the sworn

statement

acquisition of land

through fraudulentmeans

failure to reside

permanently in the

land acquired within

two (2) years from its

acquisition, except

when such failure is

caused by force

majeure shall be

penalized by the

following:

liability to

prosecution under theapplicable provisions

of the Revised Penal

Code and subject to

deportation in

appropriate cases

forfeiture of such

lands and their

improvements to

theNational

Government through

escheat proceedings

by the representative

of the Solicitor

General - permanent

disqualification from

availment of the

privilege under this

Act

Agrarian Reform that

the land is a retained

area of the

transferor and an

affidavit of the

transferee attesting

that his/her total

landholding inclusive

of the land to beacquired does not

exceed the 5-hectare

limit provided under

R.A. 6657, is

required

RESERVATION OF LANDS TO FILIPINOS; EXCLUSIVE

Why is ownership of lands reserved to Filipino citizens?

We have been a product of more than 300years of Spanish

rule and few more decades of American rule and few years of

Japanese rule. Naturally, when the framersof 1973 constitution sat

down to discuss limitations on land ownership in the Philippines,

they took that fact in consideration and decided to reserve the use

of lands in the Philippines for exclusive use of the Filipinos.

In the ultimate analysis, what the SC as well as our laws

seeks to protect would be a permanent transfer to non-filipinos.

Such that it has ruled to be valid subsequent transfers from Filipino-

to foreigner to Filipinothat is alienation valid for the policy sought

to be enforced by the law is still intactland exclusively for Filipinos.

Aliens are prohibited from acquiring lands in the

Philippines in order to preserve the nations lands for future

generations of Filipinos(Sarsosa v. Cuenco, april 16, 1982).

The exclusion of aliens from the privilege of acquiring

public agricultural lands and owning real estate is a necessary part

of public land laws in the Philippines as it pays the idea of

preserving the Philippines for Filipinos (krivenko vs. register of

deeds, 1947)

ILLUSTRATIVE CASE:

G.R. No. L-31956 April 30, 1984

FILOMENA GERONA DE CASTRO, Petitioner, vs. JOAQUIN TENG

QUEEN TAN, TAN TENG BIO, DOLORES TAN, ROSARIO TAN HUA

ING, and TO O. HIAP,

FACTS: In 1938, petitioner Filomena Gerona de Castro sold a 1,258

sq. m. residential lot in Bulan, Sorsogon to Tan Tai, a Chinese. In

1956, Tan Tai died leaving herein respondents - his widow, To O.

Hiap, and children Joaquin Teng Queen Tan, Tan Teng Bio, Dolores

Tan and Rosario Tan Hua Ing.rary

Before the death of Tan Tai or on August 11, 1956, one of his sons,

Joaquin, became a naturalized Filipino. Six years after Tan Tai's

death, or on November 18, 1962, his heirs executed an extra-judicialsettlement of estate with sale, whereby the disputed lot in its

entirety was alloted to Joaquin. law library

On July 15, 1968, petitioner commenced suit against the heirs of Tan

Tai for annulment of the sale for alleged violation of the 1935

Constitution prohibiting the sale of land to aliens. law

ISSUE: IS teng, a mere naturalized Filipino citizen, entitled to own

the land?

HELD: YES.

RATIONALE: Independently of the doctrine ofpari delicto, the

petitioner cannot have the sale annulled and recover the lot sheherself has sold. While the vendee was an alien at the time of the

sale, the land has since become the property, of respondent Joaquin

Teng, a naturalized Philippine citizen, who is constitutionally

qualified to own land.

... The litigated property is now in the hands of a naturalized Filipino.

It is no longer owned by a disqualified vendee. Respondent, as a

naturalized citizen, was constitutionally qualified to own the subject

property. There would be no more public policy to be served in

allowing petitioner Epifania to recover the land as it is already in the

hands of a qualified person. Applying by analogy the ruling of this

Court in Vasquez vs. Giap and Li Seng Giap & Sons:

... if the ban on aliens from acquiring not only agricultural but also

urban lands, as construed by this Court in the Krivenko case, is to

preserve the nation's lands for future generations of Filipinos, thataim or purpose would not be thwarted but achieved by making

lawful the acquisition of real estate by aliens who became Filipino

citizens by naturalization. (Sarsosa Vda. de Barsobia vs. Cuenco, 113

SCRA 547, at 553.)

NOTE:

Reasons:

1. Vendor was in pari delicto with the vendee. (between 2

guilty persons, no relief can be had; if you are a party to an

illegal transaction, you cannot question anymore). If

somebody would question that sale, it is the SOLICITOR

GENERAL who will now institute reversion or escheat

proceedings.2. While the vendee was an alien at the time of the sale, the

land has since become the property, of respondent

Joaquin Teng, a naturalized Philippine citizen, who is

constitutionally qualified to own land. The litigated

property is now in the hands of a naturalized Filipino. It is

no longer owned by a disqualified vendee. Respondent, as

a naturalized citizen, was constitutionally qualified to own

the subject property. There would be no more public

policy to be served in allowing petitioner to recover the

land as it is already in the hands of a qualified person.

*you can circumvent actually! Apply for NATURALIZATION! THE

constitution does not distinguish as to WON you are natural born or

naturalized! For so long as you are a Filipino! That is for Atty. Zache,

a travesty!

OTHER PRINCIPLES ON LAND ACQUISITION

HULST V. PR BUILDERS, September 3, 2007

The capacity to acquire private land is made dependent upon the

capacity to acquire or hold lands of the public domain. Private land

may be transferred or conveyed only to individuals or entities

?qualified to acquire lands of the public domain.? The 1987

Constitution reserved the right to participate in the disposition,


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exploitation, development and utilization of lands of the public

domain for Filipino citizens or corporations at least 60 percent of the

capital of which is owned by Filipinos. Aliens, whether individuals or

corporations, have been disqualified from acquiring public lands;

hence, they have also been disqualified from acquiring private lands.

Since petitioner and his wife, being Dutch nationals, are proscribed

under the Constitution from acquiring and owningreal property,it is

unequivocal that the Contract to Sell entered into by petitionertogether with his wife and respondent is void. Under Article 1409 (1)

and (7) of the Civil Code, all contracts whose cause, object or

purpose is contrary tolaw or public policy and those expressly

prohibited or declared void by law are inexistent and void from the

beginning. Article 1410 of the same Code provides that the action or

defense for the declaration of the inexistence of a contract does not

prescribe. A void contract is equivalent to nothing; it produces no

civil effect. It does not create, modify or extinguish a juridical

relation.

Generally, parties to a void agreement cannot expect the aid of the

law; the courts leave them as they are, because they are deemed in

pari delicto or ?in equal fault.? In pari delicto is ?a universal doctrine

which holds that no action arises, in equity or at law, from an illegalcontract; no suit can be maintained for its specific performance, or

to recover the property agreed to be sold or delivered, or the money

agreed to be paid, or damages for its violation; and where the

parties are in pari delicto, no affirmative relief of any kind will be

given to one against the other.?

This rule, however, is subject to exceptions that permit the return of

that which may have been given under a void contract to: (a) the

innocent party (Arts. 1411-1412, Civil Code); (b) the debtor who

pays usurious interest (Art. 1413, Civil Code); (c) the party

repudiating the void contract before the illegal purpose is

accomplished or before damage is caused to a third person and if

public interest is subserved by allowing recovery (Art. 1414, Civil

Code); (d) the incapacitated party if the interest of justice sodemands (Art. 1415, Civil Code); (e) the party for whose protection

the prohibition by law is intended if the agreement is not illegal per

se but merely prohibited and if public policy would be enhanced by

permitting recovery (Art. 1416, Civil Code); and (f) the party for

whose benefit the law has been intended such as in price ceiling

laws (Art. 1417, Civil Code) and labor laws (Arts. 1418-1419, Civil

Code).

Necessary conlusion: if you are not allowed to acquire public lands,

you are also not allowed to acquire private lands, at least with

respect to aliens as applicants.

NON-FILIPINOS WHO BY EXCEPTION ARE ALLOWED TO ACQUIRE

LANDS IN THE PHILIPPINES.

1. In cases of hereditary succession, a non-filipino may be a

transferee of private lands

2. Former natural born citizens, with limitations

3. Dual citizens under RA 9225

4. Acquisition before 1935 Constitution

5. Purchase of not more than 40% interest as a whole in a

condominium project by an alien

As defined in Section 2 of The Condominium Act (R.A. 4726),

aCondominium is an INTEREST in real property consisting of a

separate interest in a unit in a residential, industrial or commercial

building and an UNDIVIDED INTEREST in common directly or

indirectly, in the land of which it is located and in other common

areas of the building.

The ownership over the unit is the separate interest of the

owner which makes him automatically a shareholder in the

condominium. The most common types of condominium is

referred to as a combination of both perpendicular and horizontal

co-ownership. While a horizontal condominium offers the benefits

of a townhouse, it is when the various units are in one place - as

when one-story units all set on the ground.

The common areas and facilities are portions of condominium

property not included in the units, whereas, a unit is a part of the

condominium property which is to be subject to private

ownership.The BOUNDARY of the unit granted are the INTERIOR

surfaces of the perimeter wall, floors

ceilings, windows and door thereof. The common areas are held in

common by the holders of units, in equal shares one for each unit.

The law mandates that said common areas shall remain

UNDIVIDED, and there shall be no judicial partition thereof.

Further, it is mandated that ALL incorporators of a condominium

project must be an owner of a condominium unit.

**In a way, there is a circumvention! Remember however, that in

the instance the percentage of Filipino ownership of a condo project

goes below 60%, the corporation is obliged to hold the vacated unit

for sale to somebody who is a Filipino. So you really have to

maintain the 60%.

6. Land acquired by americans before Jully 3, 1946

7. Lands acquired by Americans before July 3, 1974, provided

the ff. requisites are present:

1. They are formerly Filipino citizens or one who had

continuously resided in the phils for more than 20yrs

or have become permanent residents of the

philippines and had acquired private residential landsnot exceeding five thousand (5,000) square meters

for a family dwelling before the expiration of the

Philippine-United States Trade Agreement on

midnight July 3, 1974

FORMER NATURAL BORN FILIPINO CITIZENS, AND NOW

NATURALIZED AS A FOREIGN CITIZEN

Former natural-born Filipino citizen subject to the limitations

prescribed by Law (Batas Pambansa 185 andR.A. 8179)

1 For residential purpose 1,000 square meters of

urban land or one (1) hectare of rural land (BP 185)

2 Cannot own both urban and rural land. Choose

one type only3Previous ownership (when still a Filipino citizen) of

residential urban or rural land will lower the 1,000 sq

meter and 1 hectare limits above.

4 Can own a maximum of two (2) lots only.

5 Those lots must be in different cities or

municipalities in the Philippines.

6 A transferee of residential land acquired under

Batas Pambansa Blg. 185 may still avail of the

privileges granted underR.A. 7042 as amended by

R.A. 8179.

For business or other commercial purpose 5,000

square meters of urban land or three hectares of rural

land. Section 5 of Rule XII states: the land should be

primarily, directly and actually used in the

performance or conduct of the owner's business or

commercial activities in the broad areas of agriculture,

industry and services including the lease of land but

excluding the buying or selling thereof.

- Ownership (when still a Filipino citizen) of urban or

rural land used for business purposes will lower the

5,000 square meter and 3 hectare l imits.

- Ownership of only one type of land is allowed either

urban or rural not both.

- Ownership is restricted to 2 lots. Each lot must be in

a different municipality.

FORMER NATURAL BORN, NATURALIZED AS A FOREIGN CITIZEN

BUT AVAILS OF THE DUAL CITIZENSHIP LAW

Former natural born filipinos who avail of the Dual Citizenship Law in

the Philippines can buy as much as any other Filipino citizen. Under

Republic Act 9225 (Philippines Dual Citizenship Law of 2003), former

Filipinos who became naturalized citizens of foreign countries are

deemed not to have lost their Philippine citizenship, thus enabling

them to enjoy all the rights and privileges of a Filipino regarding land
http://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-propertyhttp://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-propertyhttp://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-propertyhttp://www.bcphilippineslawyers.com/republic-act-no-8179/http://www.bcphilippineslawyers.com/batas-pambansa-bilang-185/http://www.bcphilippineslawyers.com/republic-act-no-7042/http://www.bcphilippineslawyers.com/republic-act-no-7042/http://www.bcphilippineslawyers.com/batas-pambansa-bilang-185/http://www.bcphilippineslawyers.com/republic-act-no-8179/http://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-propertyhttp://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-propertyhttp://globalnation.inquirer.net/cebudailynews/opinion/view/20080123-114293/Aliens-and-acquisition-of-real-property


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ownership in the Philippines.

Filipinos who re-acquire Filipino citizenship under the Republic Act

No. 9225 can fully exercise civil, economic and political rights, as

well as accept liabilities and/or responsibilities as Filipino citizens

provided in the existing laws of the Philippines.

RIGHTS OF DUAL CITIZENS

1. Right to own land and other properties.As stated in the 1987Constitution of the Philippines, a Filipino citizen

is entitled to purchase land and other properties. There is no limit in

terms of area or size of land or real property he can

acquire/purchase under his name. This right also applies to Filipinos

with dual citizens under R.A. 9225.

Steps to Gain Dual Citizenship:

If you are in the Philippines, file a "Petition for DualCitizenship and Issuance of Identification Certificate (IC)

pursuant to RA 9225 at the Bureau of Immigration (BI)

and for the cancellation of your alien certificate of

registration.

Those who are not BI registered and overseas should filethe petition at the nearest embassy or consulate.

Requirements:

Birth certificate authenticated my the Philippines NationalStatistics Office (NSO)

Accomplish and submit a Petition for Dual Citizenship andIssuance of Identification Certificate (IC) pursuant to RA

9225 to a Philippine embassy, consulate or the Bureau of

Immigration

Pay a $50.00 processing fee, schedule and take an "Oathof Allegiance" before a consular officer

The Bureau of Immigration in Manila receives the petitionfrom the embassy or consular office. The BI issues and

sends an Identification Certificate of citizenship to the

embassy or consular office.If a former Filipino who is now a naturalized citizen of a foreign

country does not want to avail of the Dual Citizen Law in the

Philippines, he or she can still acquire land based on BP (Batas

Pambansa) 185 & RA (Republic Act) 8179 but limited to the

following:

For Residential Use

(BP 185 - enacted in March 1982):

Up to 1,000 square meters of residential land

Up to one (1) hectare of agricultural of farm landFor Business/Commercial Use (RA 8179 - amended the Foreign

Investment act of 1991):

Up to 5,000 square meters of urban land

Up to three (3) hectares of rural land

MCQ:

1. Which of the ff. cannot acquire lands of the Philippines?

a. Corporation sole

b. Former citizen who is not a dual citizen

c. Former chinese citizen who is naturalized a Filipino

d. Corporation with 40% Filipino ownership (answer)

Kim, a chinese, bought private land from Maja, a Filipino. Kim sold it

to Anne,a dual citizen. The sale to anne is:

a. Not valid, Kim, a transferor never acquired valid title to theland

b. Not valid, Maja and kim entered into an illegal transaction

c. Valid, If anne renounces her foreign citizenship

d. Valid, the defect in first transaction was cured by the

second transaction (answer)

Kim, a chinese, bought private land from Maja, a Filipino. Kim sold it

to Erich with right of repurchase, Kim:

a. Must secure Majas consent to have right of repurchase

b. Should be naturalized a Filipino to have valid title and have

right to repurchase (answer: see De castro v. Joaquin

Teng)

c. Cannot repurchase if erich is a Filipino

d. Cannot repurchase as she has no right under the law

A, chinese bought land from B, a Filipino. The transaction:

a. B can question As title in an action to collect purchase

price (no, it is a collateral attack, not allowed!)

b. Valid, B cannot question As title coz he is equally at fault

c. Void, either of them can question the sale

d. Void, none of them can question the sale (answer: solicitorgeneral can file the action: Lee v. Republic: action for

escheat or reversion)

there is a question as to whether Lee Liong has the qualification to

own land in the Philippines.

The sale of the land in question was consummated sometime in

March 1936, during the effectivity of the 1935 Constitution. Under

the 1935 Constitution, aliens could not acquire private agricultural

lands, save in cases of hereditary succession. Thus, Lee Liong, a

Chinese citizen, was disqualified to acquire the land in question.

The fact that the Court did not annul the sale of the land to an alien

did not validate the transaction, for it was still contrary to the

constitutional proscription against aliens acquiring lands of the

public or private domain. However, the proper party to assail the

illegality of the transaction was not the parties to the transaction. Insales of real estate to aliens incapable of holding title thereto by

virtue of the provisions of the Constitution both the vendor and the

vendee are deemed to have committed the constitutional violation

and being thus in pari delictothe courts will not afford protection to

either party. The proper party to assail

land titles and deed 2nd exam

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