Fundamentals of Property Ownership PDF

**A. Fundamentals of Property Ownership** **REGALIAN DOCTRINE** All Lands of the public domain belong to the state\*. \"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 faun...

**A. Fundamentals of Property Ownership** **REGALIAN DOCTRINE** All Lands of the public domain belong to the state\*. \"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 and 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. x x x\" \[Sec. 2. Art. XII\] **I. RIGHT TO OWN LAND** The right to own real estate in the Philippines is governed by: **A. Constitution \[1987 Philippine Constitution\]** and *Art.XII. Sec. 3.* Philippine citizenship may be lost or reacquired in the manner provided by law. *Art. XII. Sec.4.* Citizens of the Philippines who marry aliens shall retain their citizenship, unless by their act or omission they are deemed, under by law, to have renounced it. *Art.XII. Sec.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. *Art. XII. Sec.8.* Notwithstanding the provisions of Section 7 of the article, a natural- born citizen of the Philippine citizenship may be transferee of private lands, subject to limitations provided by law. **B. Other Special or Pertinent Laws II. LANDS OF THE PUBLIC DOMAIN** 1\. Lands of the public domain are classified into: (1) agricultural, (2) forest or timber, (3) mineral, and (4) national parks. 2\. Alienable lands of the public domain shall be limited to agricultural lands. 3\. Private corporations and associations may hold such alienable lands of the public domain only by lease,for a period not exceeding 25 years, renewable for not more than 25 years, and not to exceed 1,000 has. 4\. Filipino citizens may lease not more than 500 hectares, or acquire not more than 12 hectares by purchase, homestead, or grant. **III. STEWARD CONCEPT OF OWNERSHIP** Ownership carries with it a distinct social obligation. As stewards of their land, owners are obliged to use their properties to promote not only their properties to promote not only their interest but also the general welfare. When a person\'s landholdings exceed the requirements of his needs, or their utilization is not conducive to general welfare, the state may exercise its power to regulate and control ownership. **IV. BUNDLE OF RIGHTS THEORY** This refers to the rights or attributes which are inherent in, or appurtenant to ownership, and include the rights. to possess to use, to the fruits, to dispose, and to recover **V. RESTRICTIONS OR LIMITATIONS TO BUNDLE OF RIGHTS** **1. Government or Legal**: a\. **Zoning** - refers to use restrictions in particular areas or the delineation of allowable uses in particular areas. b\. **Subdivision Regulations** - requirements which must be complied within subdivision specifications, etc., c\. **Police Power** - the power of the state to regulate the use of the property d\. **Building Code** - regulations pertaining to specifications such as height, setbacks e\. **Eminent Domain** - the power of the State to take the private property for public use upon payment of just compensation. f\. **Escheat** - the reversion of the State to take private property for public use upon payment of just compensation. g**. Taxation** - power of the State to impose and collect tax and other charges. **2. Contractual or Voluntary:** a**. Lease Contract** - the temporary surrender of the right to possess, use and enjoy in favor of person who pays a consideration. b**. Right of Way Easement** - the right given to an owner of an adjoining land to pass or have access thru another land. c\. **Usufruct** - conveyance of the right to enjoy the fruits of the property. d. Use Restrictions in Subdivision Contract **BUNDLE OF RIGHTS** **VI. ESTATE AND REAL ESTATE** **Estate** - refers to the totality of the assets owned by a person which includes real estate and personal properties. **Real State -** refers to the land and all permanent improvements thereon. **VII. CONCEPT OF TITLE** \"**TITLE**\" is not synonymous with the **Torrens Certificate of Title**. It is a term which means evidence or proof of ownership, such as tax declaration, realty tax receipts, deed of sales, and Torrens Certificate of Title. The best evidence of ownership of title is the Torrens Certificate of Title because it is **imprescriptible and indefeasible**. A person is deemed to have title to a property when he can exercise or has the bundle of rights over it. **VIII. MODES OF ACQUIRING TITLE** 1\. **Private Grant -** voluntary transfer or conveyance such as sale or transfer. 2\. **Public Grant** - acquisition of alienable public land by homestead patent, free patent, sales patent, or other government award. 3\. **Involuntary Grant** - acquisition against consent of owner, such as foreclosure or executive sale. 4\. **Inheritance** - acquisition by hereditary succession. 5\. **Reclamation** - filling of submerged land subject to government regulations and existing laws. 6\. **Accretion** - acquisition of land adjoining banks of rivers due to gradual deposit of soil. 7\. **Prescription** - acquisition of title by actual, open continuous and uninterrupted possession for a period of time under claim of title. **-** Ten (**10**) years in good faith and - Thirty (**30**) years if in bad faith. **IX. GENERAL RULE ON OWNERSHIP OF LAND** 1\. Only Filipino citizens 1\. By birth 2\. Naturalization Process 3\. Act of Congress 4\. Repatriation 5\. Dual Citizenship 2\. Corporations or partnership at least 60% of the capital of which is owned by Filipinos are entitled to acquire land in the Philippines.. **NOTE: FOREIGN OWNERSHIP OF HOUSE/IMPROVEMENTS** A foreigner may own a house and improvements, which may be constructed on the land owned by a Filipino \[e.g. under lease\] **EXCEPTIONS** 1\. As exceptions to the general cases to the rule, alien acquisition of real estate in the Philippines is allowed in the following cases. a\) Acquisition before the 1935 Constitution; b\) Acquisition by hereditary succession \[LEGAL HEIR\] ; c\) Purchase by aliens of not more than 40% of the units in a condominium project; d\) Purchase by former natural-born Filipino citizens, subject to the by law requirements or limitations prescribed. ***Under Batas Pambansa Bilang 185 (B.P. 185)*** aa) Acquisition shall not exceed - 1,000 square meters for urban land or - 1 hectare for rural land to be used solely for residence of the buyer **WHAT IS URBAN LAND?** **Urban land** shall refer to land located in an urban area. The urban areas shall include: \(1) In their entirety, all municipal jurisdictions which, whether designated or not as chartered cities, provisional capitals, have 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 above) regardless of population size which have the following: (a) A street pattern, i.e., a network of streets in either at parallel or right angle orientation; and (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 or cemetery; 3. A market place or building where trading activities are carried on at least once a week; and 4. A public building like a school, hospital, puericulture and health center or library. (d) Barangays having at least 1,000 inhabitants which meet the conditions set forth in the preceding subparagraph \[sub-par. (3)\] and in which the occupation of the inhabitants is predominantly other than farming or fishing. **Rural lands** shall refer to land located in a rural area. The rural areas shall refer to all the areas of the Philippines which do not meet the conditions set forth in the definition of urban areas in the immediately preceding paragraph (par. 3) of this Section. *(Sec. 1. IRR. BP 185)* bb) In case of married couples, one or both of them may avail of the privilege provided that the total area shall not exceed the maximum limit. cc) When the transferee already owns urban or rural lands for residential purpose, he shall be entitled to acquire additional urban or rural land for residential purpose which, when added to those already owned by him shall not exceed maximum area allowed by law. **BP 185: Mechanics for registration of transfer** No deed of conveyance in favor of a transferee under Batas Pambansa Blg. 185 shall be registered by the Register of Deeds unless accompanied by a **sworn statement** showing the; 1\. date and place of the transferee\'s birth; 2\. names and addresses of his parents, of his spouse and children if any; 3. area, location and mode of acquisition of his landholdings in the Philippines if any; 4. his intention to reside permanently in the Philippines; 5. date he lost his Philippine citizenship, and 6\. country of which he is presently a citizen. The sworn statement herein above mentioned shall be in addition to the documentary requirements prescribed as prerequisites for the registration of titles under existing law and regulation. *(Sec.4, IRR. BP 185)* **Under Foreign Investments Act of 1991** e) 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. aa) up to a maximum area of five thousand (5,000) square meters in the case of urban land or 3 hectares in the case of rural land to be used by him for business or other purposes. bb) 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. cc) In the case of the transferee already owns urban or rural land for business or other purposes, he shall still 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. dd) 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 from acquiring rural land and vice versa\".*(Sec.10. RA 7042 as amended by R.A 8179. Approved March 28,1996)* **IMPLEMENTING RULES AND REGULATIONS OF RA 7042** (As amended by Republic Act No.8179) SECTION 5. Land acquired under this Act shall be primarily, directly and actually used by the transferee in the performance or conduct of his business or commercial activities in the broad areas of 1. agriculture 2. industry and 3. services, 4. including the lease of land. but excluding the buying and selling thereof. A transferee shall use his land to engage in activities that are not included in Negative List or in those areas wherein investment rights have been granted to him under this Act. 2. A Filipina who married an alien retains her Philippine Citizenship (unless by her act or omission she is deemed under the laws to have renounced her Philippine Citizenship) and may therefore acquire real estate in the Philippines. 3. A former natural-born citizen of the Philippines who became of another country and reacquires Filipino citizenship under R.A. No. 9225(Dual Citizenship Law). **d. DUAL CITIZENSHIP LAW** \[REPUBLIC ACT NO.9225 \] AN ACT MAKING THE CITIZENSHIP OF PHILIPPINE CITIZENS WHO ACQUIRE FOREIGN CITIZENSHIP PERMANENT, AMENDING FOR THE PURPOSE COMMONWEALTH ACT NO. 63 AS AMENDED, AND FOR OTHER PURPOSES *Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:* SECTION1. Short Title - This Act shall be known as the \"Citizenship Retention and Re-acquisition Act of 2003.\" SEC.2.*Declaration of Policy* - It is hereby declared the policy of the state that all Philippine citizens who become citizens of another country shall be deemed not to have lost their Philippine citizenship under the conditions of this Act. SEC.3. *RETENTION OF PHILIPPINE CITIZENSHIP* **-** Any provision of law to contrary notwithstanding, natural-born citizens of the Philippines who have lost their Philippine citizenship by reason of their naturalization as citizens of a foreign country hereby deemed to have reacquired Philippine citizenship upon taking the following oath of allegiance to the Republic: \"I **,** solemnly swear (or affirm) that I will support and depend the Constitution of the Republic of the Philippines and obey the laws and legal orders promulgated by the duly constituted authorities of the Philippines: and I hereby declare that I recognize and accept the supreme authority of the Philippines and will maintain true faith and allegiance thereto; and that I impose this obligation upon myself voluntarily without mental reservation or purpose of evasion.\" Natural-born citizens of the Philippines who, after the effectivity of this Act, become citizens of a foreign country shall retain their Philippine citizenship upon taking the aforesaid oath. SEC. 4 *Derivative Citizenship* **-** The unmarried child, whether legitimate 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. SEC. 5 *Civil and Political Rights and Liabilities -* Those who retain or reacquire Philippine citizenship under this Act shall enjoy full civil and political rights and be subject to all attendant liabilities and responsibilities under existing laws of the Philippines and the following conditions: (1) Those intending to exercise their right of suffrage must meet the requirements under Sec.1,Article V of the Constitution, Republic Act No. 9189, otherwise known as the, \"The Overseas Absentee Voting Act of2003\".and other existing laws. (2) Those seeking elective public office in the Philippines shall meet the qualifications for holding such public office as required by the Constitution and existing laws, and at the time of the filing of the certificate of candidacy, make a personal and sworn renunciation of any and all the foreign citizenship before any public authorized to administer an oath; (3) Those appointed to any public office shall subscribe and swear to an oath of allegiance to the Republic of the Philippines and its duly constituted authorities prior to their assumption of office: Provided, that they renounce their oath of allegiance to the country where they took that oath; (4) Those intending to practice their profession in the Philippines shall apply with the proper authority for a license or permit to engage in such practice; and (5) That right to vote or be elected or appointed to any public office in the Philippines cannot be exercised by, or extended to, those who: (a) Are candidates for or are occupying any public office in the country of which they are naturalized citizens; and/or (b) Are in active service as commissioned or non-commissioned officers in the armed forces of the country which they are naturalized citizens. SEC.6. *Separability Clause -* If any section or provision of this Act is held unconstitutional or invalid, any other or provision not affected thereby shall remain valid and effective. SEC. 7. *Repealing Clause -* All laws, decrees, orders, rules and regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly. SEC.8. *Effectivity Clause. -* This Act shall take effect after fifteen (15) days following its publication in the Official Gazette or two newspapers of general circulation.