How To Own Real Estate Property In Rp

[i am bob]

A really basic explanation of what you can and can't do as a foreigner can be found here: real-estate-guide.philsite.net/foreigners.html

 

* Acquisition thru hereditary succession if the foreign acquire is a legal or natural heir. This means that when you are married to a Filipino citizen and your husband/wife dies, you as the natural heir will become the legal owner of his/her property. The same is true for the children. Every natural child (legitimate or illegitimate) can inherit the property of his/her Filipino father/mother even if he/she is not a Filipino citizen.

According to that a Filipina wife CAN own real estate  :thumbsup:   

(But that text is what the writer of the text think, it's not the law text.)

Sorry, Thomas, but your Filipino wife can own land. If she passes away before you, you can inherit the land BUT, as a foreigner and not being able to own land, you are caught in a catch 22 and thus you will be forced to sell the land. Most people avoid this by having a Filipino dependent (like a child) inherit the land and then leased back to you for 25 or 50 years for something like a couple pesos.

[fred]

Foreigners cannot own land in Philippines.  Any attempt to circumvent that law is also illegal.

 

That being said, there are many 'schemes' that are touted by various people who think they have a way to beat the system.  Sometimes these unusual systems work and sometimes they do not.  I suggest talking to three different lawyers who specialize in foreign ownership or control of land in Philippines.  My experience is you will get three different answers.  That should give you some clue as to the minefield.

 

I live by 3 rules:

 

1)  Don't 'invest' more in Philippine real estate than you can afford to walk away from if things go sour.

 

2)  Protect your investment by putting the property in the name of a person (usually your wife or partner) or corporation (that you own 40% of) who can legally own it and then holding a lien on the property until you get your investment paid back. (This carries risk but as far as I can tell is legal)

 

3)  Lease it back so you have control over the use of the property.

 

Remember, this is what I am comfortable with and your comfort level will be different but I still say foreigners cannot own land here and every transaction that contravenes that law is very risky (See rule 1)

 

You forgot rule number 5.

If you are married to a woman that loves you and gives you children that love you too...The land is as good as yours until you die..

If the Filipino woman that loves you happens to die before you (God forbid) then there are inheritance laws here that make us the owners...And its all legal! 

[fred]

you can inherit the land BUT, as a foreigner and not being able to own land, you are caught in a catch 22 and thus you will be forced to sell the land.

 

 

 

The constitutional law says that we can inherit the land quite legally from our spouses re inheritance.

Can you find a single case where the foreigner was forced to sell and rescind his constitutional rights? 

Edited July 10, 2014 by fred

[robert k]

Thomas, I think it's always safe to go back to the spirit of the law, that no foreigner ever will own the land short of those rare business that are extremely expensive and government approved. I have read of foreigners who did inherit and they did not sell the land, because they never had to appear in court. I believe there would be a different outcome if anyone ever complained. I believe you may have a constitutional right to inherit from a wife but that does not change the fact that you are not allowed to "own" land. They are not taking your inheritance away by forcing you to sell it, you are getting the cash value of whatever it brings. I believe it's something like eminent domain, where undoubtedly you own but they will force you to transfer ownership, for the greater good, as soon as someone complains. Do you expect that nobody in your wifes family will complain? I wouldn't be so sure. The wife had better have an iron clad will also, I have not gone deep into it but Philippine inheritance laws in the absence of a really good will seem to go not just down as in a western country but back up and possibly even laterally. What little research I did do gave me a headache and the desire to avoid the situation.

 

I believe Frosty-Chris has the correct answer that, in the event the matter comes up, you deed the land to a minor child that you are the custodial parent of and for whom you act as caretaker for their asset. I think it's good advise to always try to stay within the "intent" of the law. Good luck, and I hope the issue never comes up and if it does, I'm sure you will be flexible. :)

[Dave Hounddriver]

Do you know where to find the law text? 

 

Article 147 of the Family Code provides:

 

Article 147. When a man and a woman who are capacitated to marry each other, live exclusively with each other as husband and wife without the benefit of marriage . . . .

 

 

Just one more mine in the field :-)  Read more at http://attylaserna.blogspot.com/2011/02/nullity-of-marriage-under-art-36-family.html or search for similar articles

Edited July 10, 2014 by Dave Hounddriver

[Jake]

Gentlemen, if I could join in this discussion......there are some expats or visiting foreigners that somehow were

able to own property or to carry a concealed weapon.  We all know that criminal and civil laws are practiced by

the best crooks that money can buy.  And then you throw in real estate laws and their interpretation.  Unless you

have solid and trusted connections and are willing to risk your initial capital investment at a possible loss......

I really don't have a warm and fuzzy feeling about it.

 

My wife Judy and her sister were sole property owners of 3 hectares near the Batangas international seaport,

which was prime real estate before the port expansion and modernization.  The annual property tax were duly

paid and recorded at Batangas city hall.  Years later, a fire ensued in the city clerk's office which destroyed

many documents, especially titles of businesses and properties.  Most were recovered by the proper owners,

but Judy was unfortunate.  We travelled to Bureau of Land Management in Manila and they had no record of it.  

And she failed to produce her own documents (misplaced, can't find it).

 

In the end (1995), the outgoing mayor finally took possession......and yes, he was a lawyer too.   

[i am bob]

you can inherit the land BUT, as a foreigner and not being able to own land, you are caught in a catch 22 and thus you will be forced to sell the land.

 

 

The constitutional law says that we can inherit the land quite legally from our spouses re inheritance.

Can you find a single case where the foreigner was forced to sell and rescind his constitutional rights?

Another catch 22... I've heard people say they had to sell and others didn't say anything. I talked to one Phillipine lawyer who (according to his best guess and before he had to start charging me for legal services) told me it was as I showed. But I'm really not convinced this is correct either so if anybody can definitively prove I am wrong, I just might buy you several drinks!

[hyaku]

Personally my approach was I wanted some control over what I had bought. Also reading about so many "failed" relationships even before I moved here I didn't want to end up on the street after some wild false accusations.

First of all I got a lease on what I had bought. This 'must' be registered at the Register of Deeds otherwise it's not worth the paper its written on. Your partner could otherwise sell or mortgage the house you live in.

My second step was as I can't legally own I can still be attorney-in-fact. My attorney drew up an absolute irrevocable power of attorney allowing me to dispose of or do whatever I saw fit with what I had purchased. Needless to say one delegate another Filipino/Filipina to sell for you.

I'm not saying it would work for everyone. Thing is ownership in this case is not in question.

[robert k]

I have never heard of an irrevocable power of attorney for anyone who is mentally competent.

 

I don't know how it would work in the Philippines but elsewhere powers of attorney expire on the death of the person granting the power of attorney, it certainly expires on death of the person granting the POA in the US.

 

Not just arguing for arguments sake, I hope both that you are correct and that it is never tested.

[Dave Hounddriver]

I hope both that you are correct and that it is never tested.

 

Hyaku's experience has already been tested.  He is separated from his legal, filipina wife and I know that (so far) his claim to his house has been upheld.  As he mentions, this may not work for everyone and he is not claiming ownership of the land.  Also, as another thread discusses, the more money a filipina is able to throw into a court case the more chance this may not work.