Land power of attorney or leasing

[Snowy79]

I'm very close to purchasing a lot via a girlfriend I've known for over two years. I'm aware of the pitfalls involved and have done as much due diligence as I can. She's a good girl, not materialistic and her family don't pester her so I don't expect her to head for the hills once it purchased. It's a sum that won't break the bank if I lose it but I'm not just going to give it away.

I'm aware I can't own the land but at the title transfer what is the best way to protect my investment? Do I get written into the last page of the title that I'm leasing it for 25yrs with an option to extend or do I go for the special power of attorney over then land? Obviously I don't want to fall foul of the anti dummy laws.

[Dave Hounddriver]

2 minutes ago, Snowy79 said:

do I go for the special power of attorney over then land?

There are times when this will fall into the "anti-dummy" category and times when its perfectly legal and the best way to go.  The reason they have a SPOA available is when the owner cannot be present for any reason, such as she has left the country.  But if  she wants to make waves somewhere down the road it can cost you more than its worth.  Still a good way to go.  Especially if you want to put a personal mortgage against the title.  This is because the SPOA is only valid so long as the person giving it to you is alive.  If she dies then the inheritance laws come into play and your SPOA is worthless but your mortgage still needs to be paid by the heirs.  That is where it helps to have a lease.  I do not see any reason why you could not have all three and use whatever is needed if there is a conflict down the road.

[Snowy79]

I was going to use the inheritance thing as an excuse to her why I'm protecting my investment. As you say if she passes away first then I can get screwed over by the family. I don't see her having an issue with it where as other girlfriends I know would have started the emotional blackmail scenario.

[jpbago]

52 minutes ago, Dave Hounddriver said:

 If she dies then the inheritance laws come into play and your SPOA is worthless but your mortgage still needs to be paid by the heirs.

For example, A takes out a mortgage on a lot for 1 M pesos using his condo in Boracay as collateral and puts B's name on the title with SPOA to A. B gets hit by a bus so the lot goes to the parents of B. You say that the parents of B have to pay the mortgage that is in the name of A with A living on the lot with a 25 year lease. If I was the bank, I would put a lien on the condo if the mortgage payments were in default.

[RBM]

Ask a 1000 attorneys expect a 1000 different answers, also location matters due to differing implementation of the act. It's really a minefield out there, I believe one should never invest more than 1/3 of one's assets here.

If any help what I did, SPA  over land with my name registered on titles. Further a totally separate legal agreement stating any attempt to sell Mortgage or other wise use land would be voided by this agreement, this was notarized and registered. 

Situations can and  do change in relationships, beliving otherwise because she is such a nice girl, non materialistic good family is simply misguided. Like many here I have witnessed strange happenings with mostly the white monkey the looser.

It's also cloudy regarding the usual lease unless the GF is a registered trader this can be over turned.

Bottom line, legal beagles aside, if ever she really wants you out your out.....

Sorry to be negative but having  seen so many sad cases one must be prepared.

 

 

 

[Dave Hounddriver]

21 minutes ago, jpbago said:

For example

Your example is too complicated for me to follow.  Here is my example:

Foreigner's gf buys house.

Foreigner loans her money to buy house with registered, personal, collateral mortgage on said house as security.

Gf gives Foreigner SPOA to act in all matters concerning said house.

If Gf dies or changes mind then there is still a registered mortgage on the title in favor of the foreigner.  He must be paid or he can get a lawyer to foreclose and sell and get his money back plus agreed upon costs and interest.

 

[Snowy79]

1 minute ago, Dave Hounddriver said:

Your example is too complicated for me to follow.  Here is my example:

Foreigner's gf buys house.

Foreigner loans her money to buy house with registered, personal, collateral mortgage on said house as security.

Gf gives Foreigner SPOA to act in all matters concerning said house.

If Gf dies or changes mind then there is still a registered mortgage on the title in favor of the foreigner.  He must be paid or he can get a lawyer to foreclose and sell and get his money back plus agreed upon costs and interest.

 

Can this mortgage be a personal loan, repayable monthly or chipped away at with an agreeable fee of say 5,000 php per month for the lease and a promise to pay back any improvements to the land (house build) from any sale of the land?

I'm working on 1.5m php for the land which will give me 25yrs in theory living there. After that I'll probably head to the UK to be a burden on the National Health Service 

[Dave Hounddriver]

26 minutes ago, Snowy79 said:

Can this mortgage be a personal loan, repayable monthly or chipped away at with an agreeable fee of say 5,000 php per month for the lease and a promise to pay back any improvements to the land (house build) from any sale of the land?

I have seen that done.  In my case its like a "fee simple" mortgage.  Nothing needs to be done or paid unless I feel like I want my money back.  At that point I demand payment and whoever owns the land has to pay me. Its not free though. It costs 5% of the mortgage value to set it up.

[AlwaysRt]

3 hours ago, Dave Hounddriver said:

Your example is too complicated for me to follow.  Here is my example:

Foreigner's gf buys house.

Foreigner loans her money to buy house with registered, personal, collateral mortgage on said house as security.

Gf gives Foreigner SPOA to act in all matters concerning said house.

If Gf dies or changes mind then there is still a registered mortgage on the title in favor of the foreigner.  He must be paid or he can get a lawyer to foreclose and sell and get his money back plus agreed upon costs and interest.

 

*note* not applicable if your spouse is the buyer.

Question, what happens to the plan if/when you marry your gf?

[Snowy79]

48 minutes ago, AlwaysRt said:

*note* not applicable if your spouse is the buyer.

Question, what happens to the plan if/when you marry your gf?

It'll be written in that if I cancel the lease through my own choice the title clears in my girlfriends name. I'll spend my honeymoon in the Land Registry.