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WHO CAN OWN LANDS IN THE PHILIPPINES

As a general rule, only Filipino Citizens and corporations or partnerships at least 60% of the capital of
which is owned by Filipinos are entitled to acquire land in the Philippines.

However, the following are the cases wherein the above-mentioned rule can be excused:

1. Property is acquired prior to the effectivity of the 1935 Constitution;

2. Acquisition by hereditary succession being the legal heir;
3. Acquisition of not more than 40% interest in a condominium project pursuant to R.A. 4726;
4. Former natural born citizen of the Philippines who became a citizen of another country but is now
returning to the Philippines to reside permanently, subject to limitations under BP 185 and RA 8179;
5. Filipina who marries an foreigner but retains her Philippine citizenship can acquire and own land.

From the above enumeration, the 1987 Constitution, Article XII has laid down two sections to justify some of
the above exceptions:

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.

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 private lands, subject to limitations
provided by law

WHO ARE NATURAL AND NATURAL BORN CITIZENS

Natural citizens of the Philippines are:
 Citizens of the Philippines at the time of the adoption of the 1987 Constitution;
 Those whose fathers or mothers are citizens of the Philippines (any parent);
 Those born before January 17, 1973, of Filipino mothers, who elect Philippine citizenship upon reaching
the age of majority (18 years old) – born anywhere in the world;
Natural-born citizens are those:
 Born in the Philippines;
 Those born of Filipino mothers and non-Filipino father who elect Philippine citizenship upon reaching the age of majority;
 Naturalized under Naturalization Law;
 Citizens of the Philippines who marry aliens but have not renounced their Phil. Citizenship;
 Those who acquired dual citizenship;
 Those who acquired derivative (origin or descent) citizenship;
 The unmarried child, legitimate or not or adopted, below 18 years of age, of those who re-acquire Philippine citizenship upon
effectivity of this Act shall be deemed citizens of the Philippines;
 Section 7 of Art. XII of 1987 Constitution states that a natural born citizen of the Philippines who has lost his Phil. citizenship may be
a transferee of private lands subject to limitations provided by law.

Rules regarding former natural-born Filipino citizens acquiring lands in the Philippines
Mode of acquisition may be through both voluntary deeds (sale or donation) and involuntary deeds
(foreclosure, execution, tax delinquency sale)
AREA ALLOWED (MAXIMUM)
1. If the purpose is for residence:
 1,000 square meters of urban land
 1 hectare of rural land

2. If the purpose is for business:

(refers to the use of land primarily, directly and actually in the conduct of 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)
 5,000 square meters of urban land
 3 hectares of rural land

 A transferee who acquired urban or rural land for residential purpose while still a Filipino citizen may
acquire additional urban or rural land for residential purpose which, when added to that already
owned shall not exceed the maximum area allowed by law. It shall also apply to a transferee who
already owns urban or rural land for business purpose while still a Filipino citizen.
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 A transferee who has already acquired urban land for residential purpose shall be disqualified to
acquire rural land for residential purpose and vice versa.
 A transferee of residential land under BP 185 may still avail of the right to acquire land for business
purpose under RA 8179.

*In case of married couples where both are former natural born Filipino citizens, both of them may
avail provided that the total acquisition shall not exceed the maximum area allowed.

Q: Can aliens acquire lands in the Philippines?

General rule: Aliens are not qualified to acquire land in the Philippines.
Exceptions:
1. Aliens may acquire private land by inheritance
2. PD 713 (May 27, 1975) Allows 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 20 years and are in good faith had acquired private residential lands for family dwelling purposes in
the Philippines prior to July 3, 1974 to continue holding such lands and transfer ownership over the same
to qualified persons or entities.
3. BP 8179 (March 16, 1982)Former natural born citizens of the Philippines who has lost his citizenship may
be transferee of a private land up to a maximum area of 1,000sqm in case of urban land and 1 hectare for
rural to be used as his residence; In case of married couples, only one may avail and if both the total area
should not exceed the maximum herein fixed
4. RA 8179 (March 28, 1996) 5,000sqm urban land/ 3 hectares rural land for business or other purposes
5. RA 9225 (August 29, 2003) Aliens may re-acquire Filipino citizenship

Particulars Provision under BP 185 Provisions under RA 7042

(for establishing residence) as amended by RA 8179
(for investment)

Size/Area of • maximum of 1,000 sq. Meters • maximum of 5,000 sq. meters

Coverage for urban land for urban land

• maximum of one (1) hectare • maximum of three (3) hectares

for rural land for rural land

Land • either of the spouses may avail • either of the spouses may avail
Acquisition of the privilege of the privilege
for Both
Spouses • in case both spouses wish to • in case both spouses wish to
acquire lands for this purpose, acquire lands for this purpose,
the total area acquired should the total area acquired should
not exceed the maximum not exceed the maximum
allowed allowed

Additional In case he/she already owns In case he/she already owns

Land urban or rural lands for urban or rural lands for business
Acquisition residential purposes, he/she purposes, he/she may acquire
may acquire additional urban or additional urban or rural lands,
rural lands, which when added which when added to those
to those he/she presently owns he/she presently owns shall not
shall not exceed the authorized exceed the authorized maximum
maximum area. area.

Limits to A person may acquire not more
Acquisition of than two (2) lots which should
Land 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.
Use of Land The acquired land should not
be used for any purpose other
than for residence.
Special In addition to the requirements
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:
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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 that this will be
used for business.
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 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 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:
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# date and place of birth; # certification of business

# 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
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
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 be acquired does
not exceed the 5-hectare
limit provided under R.A.
6657, is required



Violations
and
Penalties Violations through:
• misrepresentation in the
sworn statement
• acquisition of land through
fraudulent means
• 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
the applicable provisions of
the Revised Penal Code
and subject to deportation in
appropriate cases
- forfeiture of such lands and
their improvements to the
National Government
through escheat
proceedings by the
representative of the
Solicitor General
- permanent disqualification
from availment of the
privilege under this Act
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PUBLIC LANDS: ALIENABLE AND DISPOSABLE LANDS IN GENERAL

Public Lands refers to such lands of the public domain as are subject to alienation and disposal of the State
in accordance with the Public Land Act.

CLASSIFICATION OF LANDS
LANDS OF PUBLIC DOMAIN - either alienable or inalienable
LANDS OF PRIVATE DOMAIN - land belonging to and owned by the State as a private individual, without
being devoted of national wealth
-similar to patriomonial properties of the State

PUBLIC LAND VS. GOVERNMENT LAND

Public Land -equivalent to Public Domain,
-includes lands open to private appropriation and settlement by homestead and other like general laws
Government Land - more extensive and embraces not only the public land but also other lands of the
government already reserved or devoted to public use or subject to private right

HISTORICAL BACKGROUND

ACT NO. 926 – the first Public Land Act

Prescribed rules and regulation of the homesteading,selling and leasing of portions of the public
domain,and prescribed the terms and conditions to enable persons to perfect their titles to public lands in the
islands.
Also provided for the issuance of patents to certain native settlers upon public lands for the establishment
of town sites and sale of lots therein,for the completion of imperfect titles and for the cancellation or
confirmation of Spanish concessions and grants in the islands.

ACT NO. 2874

The second Public Land Act was more comprehensive in scope but limited the
exploitation of agricultural lands to Filipinos and Americans and citizens of other countries which gave
Filipinos same privileges.

PUBLIC LAND ACT (COMMONWEALTH ACT NO.141)

- Enacted November 7, 1936
-grants of public lands are brought under the operation of the Torrens system of registration
-its provisions govern the classification and disposition of lands of the public domain other that timber and
mineral lands
NOTE: Public land patents when duly registered are veritable Torrens titles, they become private property
which can no longer be subject of subsequent disposition by the director of Lands

Q: Can a private corporation acquire a land?

A: No. They can only hold alienable lands of the public domain BY LEASE
- cannot exceed 25 years, renewable for not more than 25 years
- Lease cannot exceed 1,000 hectares
- CONSTITUTIONAL PROVISION: Article 12, 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.
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ADDITIONAL INFORMATION:
a. Private Lands
i. At least 60% Filipino (Sec. 7, Art. XII, 1987 Constitution)
ii. Restricted as to extent reasonably necessary to enable it to carry out purpose for which it was created
iii. If engaged in agriculture, it is restricted to 1,024 hectares.
b. Patrimonial Property of the State (Sec. 3, Art. XII, 1987 Constitution)
i. Lease (cannot own land of the public domain) for 25 years renewable for another 25 years
ii. Limited to 1,000 hectares iii. Applies to both Filipinos and foreign corporations.

AGE REQUIREMENT AS TO ACQUISITION OF LAND

Under the Philippine law, only persons of legal age (18 years and above) are allowed to enter into
contracts. A minor may, however, be allowed to purchase real property from his/her own funds if represented by
a legal guardian. The legal guardian is required to furnish a bond in such amount as the court may determine,
but not less than 10% of the value of the property or annual income of the minor, to guarantee the performance
of the obligations prescribed for the guardian.
The guardian purchasing the property on behalf of the minor must submit a Certificate of Finality of the
Order of the court appointing him/her as guardian of the minor child and approving the bond posted by him in
compliance with the requirements of the Family Code of the Philippines.
(CA 141, Sec. 12: Any citizen of the Philippines over the age of eighteen years, or the head of a family, who
does not own more than twenty-four hectares of land in the Philippines or has not had the benefit of any
gratuitous allotment of more than twenty-four hectares of land since the occupation of the Philippines by the
United States, may enter a homestead of not exceeding twenty-four hectares of agricultural land of the public
domain.)

Q: Can a corporation sole acquire lands?

(A corporation sole consists of one person only, and his successors (who will always be one at a time), in some
particular station, who are incorporated by law in order to give them some legal capacities and advantages,
particularly that of perpetuity, which in their natural persons they could not have had. In this sense, the king is
a sole corporation; so is a bishop, or dens, distinct from their several chapters)
A: Yes. Corporation sole can acquire by purchase a parcel of private agricultural land without violating the
constitutional prohibition since it has no nationality.
-Act. No. 1459 (The Corporation Law)
Section 159. Any corporation sole may purchase and hold real estate and personal property for its church,
charitable, benevolent, or educational purposes and may receive bequests or gifts for such purposes. Such
corporation may mortgage or sell real property held by it upon obtaining an order for that purpose from the
Court of First Instance of the province in which the property is situated; but before making the order proof must
be made to the satisfaction of the court that notice of the application for leave to mortgage or sell has been given
by publication or otherwise in such manner and for such time as said court or the judge thereof may have
directed, and that it is to the interest of the corporation that leave to mortgage or sell should be granted. The
application for leave to mortgage or sell must be made by petition, duly verified by the bishop, chief priest, or
presiding elder, acting as corporation sole, and may be opposed by any member of the religious denomination,
society, or church represented by the corporation sole: PROVIDED, HOWEVER, That in cases where the rules,
regulations, and discipline of the religious denomination, society, or church concerned represented by such
corporation sole regulate the methods of acquiring, holding, selling and mortgaging real estate and personal
property, such rules, regulations, and discipline shall control and the intervention of the courts shall not be
necessary.

Q: Can banks acquire lands?

A:
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APPLICATION FOR LAND REGISTRATION

- PD 1529, Chapter III A. Applications

Section 16. Non-resident applicant. If the applicant is not a resident of the Philippines, he shall file with his
application an instrument in due form appointing an agent or representative residing in the Philippines, giving
his full name and postal address, and shall therein agree that the service of any legal process in the proceedings
under or growing out of the application made upon his agent or representative shall be of the same legal effect
as if made upon the applicant within the Philippines. If the agent or representative dies, or leaves the
Philippines, the applicant shall forthwith make another appointment for the substitute, and, if he fails to do so
the court may dismiss the application.
Section 17. What and where to file. The application for land registration shall be filed with the Court of First
Instance of the province or city where the land is situated. The applicant shall file together with the application
all original munients of titles or copies thereof and a survey plan of the land approved by the Bureau of Lands.
The clerk of court shall not accept any application unless it is shown that the applicant has furnished the
Director of Lands with a copy of the application and all annexes.

Section 18. Application covering two or more parcels. An application may include two or more parcels of land
belonging to the applicant/s provided they are situated within the same province or city. The court may at any
time order an application to be amended by striking out one or more of the parcels or by a severance of the
application.

Section 19. Amendments. Amendments to the application including joinder, substitution, or discontinuance as to
parties may be allowed by the court at any stage of the proceedings upon just and reasonable terms.
Amendments which shall consist in a substantial change in the boundaries or an increase in area of the land
applied for or which involve the inclusion of an additional land shall be subject to the same requirements of
publication and notice as in an original application.

Section 20. When land applied for borders on road. If the application describes the land as bounded by a public
or private way or road, it shall state whether or not the applicant claims any and what portion of the land within
the limits of the way or road, and whether the applicant desires to have the line of the way or road determined.

Section 21. Requirement of additional facts and papers; ocular inspection. The court may require facts to be
stated in the application in addition to those prescribed by this Decree not inconsistent therewith and may
require the filing of any additional paper. It may also conduct an ocular inspection, if necessary.

Section 22. Dealings with land pending original registration. After the filing of the application and before the
issuance of the decree of registration, the land therein described may still be the subject of dealings in whole or
in part, in which case the interested party shall present to the court the pertinent instruments together with a
subdivision plan approved by the Director of Lands in case of transfer of portions thereof and the court, after
notice to the parties, shall order such land registered subject to the conveyance or encumbrance created by said
instruments, or order that the decree of registration be issued in the name of the person to whom the property has
been conveyed by said instruments.