Differing interpretations of the1987 Filipino Constitution results to misunderstandings on whether a foreigner can acquire property in the Philippines. Not only that, foreigners moving into household condominium units in the country are commonplace; hence, adding more confusion to the issue. Land Administration
Article XII, Section 7 of the 1987 Philippine Constitution supplies the following:
Section 7. Conserve in cases of inherited succession, no private countries shall be transferred or conveyed except to many of these, corporations, or associations qualified to acquire or hold lands of the public domain.
It truly is clear from the above provision which a foreigner is not allowed to buy or hold lands of the public domain since he could be not an individual skilled to accomplish this by law; but what is prohibited is the acquisition or positioning of lands only. Condo units are therefore not covered under the forbidance.
In cases of condo units, the owner has the unit purchased but co-owns the arrive at which it is built. With this, it is a common practice nowadays for unit keepers to establish a condominium organization. Said corporation in convert, leases the land from the Philippine Government.
The Philippine Constitution itself lets the above practice, to wit:
Private corporations or associations might 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. (Article XII, Section 3, 1987 Philippine Constitution)
The Condominium Act likewise allows said practice as long as 60% of the capital stock of the corporation is owned by Filipino citizens. Foreign collateral cannot therefore exceed forty percent.
Lands on which condo properties are made are usually less than an acres in area; thus, it meets the area required legally.
Further, in view of the quoted constitutional provision above, anxieties also arise about the foreigner’s size of ownership of the condominium unit. Simply put, does the foreigner-owner lose ownership of the device after twenty-five years since the lease of the land on which it is created expires at that time?
The answer is number The unit owner has full ownership over his unit; hence might not exactly be taken far from him. As regards the lease contract, the corporation is allowed to renew it for as many times as it wishes, provided each renewal does not go over twenty-five (25) years.
Without a doubt, foreigners cannot own gets in the Philippines if they cannot belong to the exceptions provided by legislation. However, there is no prohibition with respect to their acquisition of condo units.