ARTICLE XII, PHILIPPINE CONSTITUTION

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 7. PRIVATE LANDS

General rule

1. Private lands CAN only be transferred or conveyed to:

A. Filipino citizens

B. Corporations or associations incorporated in the Philippines, at least 60% of whose capital is owned by
Filipino citizens

2. Exceptions

A. In intestate succession, where an alien heir of a Filipino is the transferee of private land.

B. A natural born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of
PRIVATE LAND, subject to limitation provided by law. Hence, land can be used only for residential
purposes. In this case, he only acquires derivative title. (Art. XII, Section 8)

C. Foreign states may acquire land but only for embassy and staff residence purposes.

3. Filipino citizenship is only required at the time the land is acquired. Thus, loss of citizenship after acquiring
the land does not deprive ownership.

4. Restriction against aliens only applies to acquisition of ownership. Therefore:

A. Aliens may be lessees or usufructuaries of private lands

B. Aliens may be mortgages of land, as long as they do not obtain possession thereof and do not bid in
the foreclosure sale.

5. Land tenure is not indispensable to the free exercise of religious profession and worship. A religious
corporation controlled by non-Filipinos cannot acquire and own land, even for religious purposes.

Remedies to recover private lands from disqualified aliens:

1. Escheat proceedings

2. Action for reversion under the Public Land Act

3. An action by the former Filipino owner to recover the land

A. The former pari delicto principle has been abandoned

B. Alien still has the title (didn’t pass it on to one who is qualified)

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.

Foreigners Owning Filipino Land

Only Filipino citizens and corporations and associations at least 60% of whose capital is owned by Filipinos
may acquire private lands.
Foreigners are allowed to purchase a condominium unit, provided that total foreign ownership of the
condominium corporation does not exceed 40%. They may also inherit real property from their deceased
Filipino spouses or parents.

Children born to a Filipino parent, whether legitimate or illegitimate, may inherit the property o the Filipino
parent, even if the child is not a Filipino citizen.

Filipinos who lost their Filipino citizenship will remain the owners of any property they have acquired before
changing nationalities. On the other hand, a natural-born Filipino citizen who has lost his Philippine
citizenship may be a transferee of private land, subject to the following limitations and conditions:

Land Ownership by Former Filipinos in the Philippines

Natural-born Filipinos who have acquired foreign citizenship are entitled to own or acquire lands in the
Philippines.

Governing Laws on Land Ownership by Former Filipinos

The laws on land ownership by natural-born Filipinos who have lost their Philippine citizenship are governed
by Batas Pambansa Blg. 185 (BP 185), which was enacted in March 1982, and Republic Act 8179 (RA 8179),
which amended the Foreign Investment Act of 1991.

BP 185 stipulates the guidelines on land ownership by former Filipinos for purposes of establishment of
residence while RA 8179 (Section 10) specifies entitlements and conditions for * acquisition for investment
purposes. The acquisition or transfer of private lands refers to either voluntary or involuntary sale, devise or
donation. Involuntary sales include sales on tax delinquency, foreclosures, and execution of judgment.

The following are the provisions of BP 185 and RA 7042, as amended by RA 8179, pertinent to land
ownership by former Filipinos:

Provision under BP 185 (Applies to Provisions under RA 7042 as amended BY RA 8179

Particulars acquisition of land for purposes of (Applies to acquisition of land for purposes of
residence) business or commerce)
 Maximum of 1000 sq. meters for
Size/Area urban land  Maximum of 5000 sq. meters for urban land
Coverage  Maximum of one (1) hectare for  Maximum of three (3) hectares for rural land
rural land
 Either of the spouses may avail of  Either of the spouses may avail of this privilege
Land Acquisition this privilege  In case both spouses wish to acquire lands for
for Both  In case both spouses wish to acquire this purposes, the total area acquired should not
Spouses lands for this purposes, the total area exceed the maximum
acquired should not exceed the maximum
In case he/she already owns urban or rural In case he /she already owns urban or rural lands for
lands for residential purposes, he/she may business purposes, he/she may acquire additional
Additional Land acquire additional urban or rural lands, urban or rural lands which when added to those he/she
Acquisition which when added to those he/she presently owns shall not exceed the authorized
presently owns shall not exceed the maximum area.
authorized maximum area.
Limits to  A person may acquire not more than  A person may acquire not more than two (2) lots
Acquisition of two (2) lots which should be situated in which should be situated in different municipalities or
Land different municipalities or cities anywhere cities anywhere in the Philippines, provided that the
in the Philippines, provided that the total total area of those lots do not exceed 5,000 sq. meters
area of those lots do not exceed 1,000 sq. for urban land or three (3) hectares for rural land for
meters for urban land or one (1) hectare use as residence.
for rural land for use as residence.  Under Section 4 of Rule XII of the Implementing
 An individual who has already Rules and Regulations of RA 704 as amended by RA
acquired urban land shall be disqualified 8179, a transferee who has already acquired urban land
from acquiring rural land and vice versa. shall be disqualified from acquiring rural land and vice
versa. However, if the transferee has disposed of his
rural land, he 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.
The acquired land should not be used for Section 5 of Rule XII specifically states that “the land
any purpose other than for his/her should be primarily, directly and actually used in the
residence performance or conduct of the owner’s business or
Use of Land commercial activities in the broad areas of agriculture,
industry and services including the lease of land but
excluding the buying or selling thereof.

In addition to the usual registration requirements

pertinent to the conveyance of real estate, the transfer
In addition to the requirements provided
contemplated shall not be recorded unless the
for in other laws for the registration of
transferee submits to the Registry of Deeds of the
titles to lands, the transferee should submit
province or city where the land is situated, the
to the Register of Deeds of the province or
following:
city where the property is located a sworn
 Certification of business registration issued by
statement showing the following:
the Bureau of Trade Regulation and Consumer
 Date and place of birth
Protection of the Department of Trade and Industry;
 Names and addresses of his/her
 Sworn statement same as that in BP 185;
Special parents, his/her spouse, and children, if
 Certification from the assessor of the
Requirements any;
municipality or province where the property is situated
 The area, location, and mode of
that the subject land for transfer is in an urban or rural
acquisition of his/her landholdings in the
area;
Philippines, if any;
 If an agricultural land is acquired, a certification
 His/her intention to reside
from the Department of Agrarian Reform that the land
permanently in the Philippines;
is a retained area of the transferor and an affidavit of
 Date he/she lost his/her Philippine
the transferee attesting that his total landholdings
citizenship and the country of which
inclusive of the land to be acquired does not exceed
hw/she is presently a citizen.
the 5-hectare limit fixed by RA 6657 (the
Comprehensive Agrarian Reform Act – CARP).
RAMIREZ v. VDA. DE RAMIREZ
G.R. No. L-27952
15 February 1982
FACTS
Jose Eugenio Ramirez, a Filipino national, died in Spain with
only his widow as compulsory heir. His will was admitted to
probate by the Court of First Instance of Manila, Branch X. The
administratrix of the estate submitted a project of partition
giving one part of the estate to the widow “en pleno
dominio” in satisfaction of her legitime while the other part of
the “free portion” to his two grandnephews Roberto and Jorge
Ramirez. Furthermore, one third of the free portion is charged
with the widow’s usufruct and the remaining two thirds (2/3)
with a usufruct in favor of Wanda Wrobleski.

Jorge and Roberto Ramirez opposed the project of partition, as

well as the substitutions provided by the testator as to the
usufructs of the widow and of Wanda. Nonetheless, the lower
court approved the project of partition in its order dated May
1967. Jorge and Roberto appealed before the Supreme Court.

ISSUE
Whether or not the usufruct over real property in favor of
Wanda violates the Constitutional prohibition against ownership
of lands by alien.
RULING
The Court upheld the validity of the usufruct given to Wanda on
the ground that the Constitution covers not only succession by
operation of law, but also testamentary succession. Any alien
would be able to circumvent the prohibition by paying money
to a Philippine landowner in exchange for a devise of a piece of
land. In the present case, the usufruct in favor of Wanda,
although a real right, does not vest title to the land in the
usufructuary. It is the vesting of title in favor of aliens which is
proscribed by the Constitution.