land titles and deed 2nd exam
TRANSCRIPT
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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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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
http://www.bcphilippineslawyers.com/republic-act-no-7042/http://www.bcphilippineslawyers.com/republic-act-no-7042/http://www.bcphilippineslawyers.com/republic-act-no-7042/http://www.bcphilippineslawyers.com/philippines-partnership/933/http://www.bcphilippineslawyers.com/doing-business-in-the-philippines/602/http://www.bcphilippineslawyers.com/philippine-commercial-law/http://www.sec.gov.ph/http://www.bcphilippineslawyers.com/philippines-regular-foreign-investment-negative-list-a/http://www.bcphilippineslawyers.com/philippines-regular-foreign-investment-negative-list-b/http://www.bcphilippineslawyers.com/philippines-regular-foreign-investment-negative-list-b/http://www.bcphilippineslawyers.com/philippines-regular-foreign-investment-negative-list-a/http://www.sec.gov.ph/http://www.bcphilippineslawyers.com/philippine-commercial-law/http://www.bcphilippineslawyers.com/doing-business-in-the-philippines/602/http://www.bcphilippineslawyers.com/philippines-partnership/933/http://www.bcphilippineslawyers.com/republic-act-no-7042/ -
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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
http://www.bcphilippineslawyers.com/republic-act-no-6938/http://www.bcphilippineslawyers.com/republic-act-no-7353/http://www.bcphilippineslawyers.com/republic-act-no-7906/http://www.bcphilippineslawyers.com/republic-act-no-5980/http://www.bcphilippineslawyers.com/republic-act-no-1180/http://www.bcphilippineslawyers.com/republic-act-no-5487/http://www.bcphilippineslawyers.com/republic-act-no-7076/http://www.bcphilippineslawyers.com/presidential-decree-no-449/http://www.bcphilippineslawyers.com/boi-board-of-investments-tax-incentives/522/http://www.dti.gov.ph/http://www.dti.gov.ph/http://www.bcphilippineslawyers.com/republic-act-no-8179/http://www.bcphilippineslawyers.com/republic-act-no-8179/http://www.dti.gov.ph/http://www.dti.gov.ph/http://www.bcphilippineslawyers.com/boi-board-of-investments-tax-incentives/522/http://www.bcphilippineslawyers.com/presidential-decree-no-449/http://www.bcphilippineslawyers.com/republic-act-no-7076/http://www.bcphilippineslawyers.com/republic-act-no-5487/http://www.bcphilippineslawyers.com/republic-act-no-1180/http://www.bcphilippineslawyers.com/republic-act-no-5980/http://www.bcphilippineslawyers.com/republic-act-no-7906/http://www.bcphilippineslawyers.com/republic-act-no-7353/http://www.bcphilippineslawyers.com/republic-act-no-6938/ -
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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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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