c




  may however purchase condominiums, buildings, and
c
 c
 enter into a long term land lease.
The basis of this principle is that the register
of title is a mirror which reflects accurately and
completely the current facts that are material to title.
With certain inevitable exceptions (ie exceptions to
indefeasibility) the title is free from all adverse
burdens, rights and qualifications unless they are
mentioned in the register.3 The ͞mirror͟ ideal, that
the register should reflect i facts and matters
relevant to the title to a parcel of land has not been
fulfilled in any Torrens jurisdiction.
One is the mirror principle, which means the
register correctly mirrors the information on the
property's title; if the property is sold, the mirror
"



principle ensures that the only information that is
changed in the register is the landowner's name.
 author͛s title͟. Thus the insurance principle, properly
This principle provides that, if through
human frailty (in the Registry), the mirror fails to give
an absolutely correct reflection of the title and a flaw
appears,
anyone who thereby suffers loss must be put
in the same position, so far as money can do
5
it, as if the reflection were a true one.
The insurance principle also involves a
curative process. Since it is the State rather than the
parties which effects the transaction, registration
͞sometimes confers a better title than the transferor
possessed͟ so that a purchaser can ͞acquire an
indefeasible right, notwithstanding the infirmity of his
K&C assists foreigners, non-Philippine nationals,
Filipinos, OFW, Balikbayans and corporations
purchasing and acquiring real property in the
Philippines and can provide relevant information on
Philippine laws and regulations regarding property
purchase and acquisition, review general contracts,
asset protection contracts, deeds of sale, taxes and
handle entire estate planning. In addition, K&C can
introduce you to local real estate brokers to assist you
in finding the property you are looking for in the
Philippines.
!
Ownership of land in the Philippines is highly-
regulated with land ownership reserved for persons
or entities considered Philippine nationals or Filipino
c

The principle requires that the register is the sole
source of information for intending purchasers. As the
Privy Council has put it, the main object of the Act:
is to save persons dealing with registered
proprietors from the trouble and expense of
going behind the register, in order to
investigate the history of their author͛s title,
4
and to satisfy themselves of its validity.
The curtain principle is usually expressed in
individual Torrens statutes in terms that no notice of
"!
trusts is to be entered in the register book, thereby



implying that they are of no concern to a disponee
understood and fully carried out, involves far more citizens. For this purpose, a corporation owned 60%
than that the owner͛s title is guaranteed by the State.
It means:
not only that registration will be carried on
literally as an insurance undertaking but also
that it is the privilege of the Registrar, or the
Commissioner, or other responsible officer,
on bringing land under the Act, to cure the
title of known defects so far as he possibly
can. It implies that the whole business of
registration ought to be conducted with such
an economy of public manpower, public time
and public money that the saving which is
achieved far outweighs any payment of
by Filipino citizens is treated as a Philippine national.
Foreigners interested in acquiring land or real
property through aggressive ownership structures
must consider the provisions of the Philippines' Anti-
Dummy Law to determine how to proceed. A major
restriction in the law is the restriction on the number
of alien members on the Board of Directors of a
landholding company which is limited to 40% alien
participation. Another concern is the possible
forfeiture of the property if the provisions of the law
is breached.
#
"
"!$
and it is everywhere expressly stipulated that a compensation for errors or omissions which ë Acquisition before the 1935 constitution
purchaser is not to be affected by notice of any trust. may become necessary from time to time. ë Acquisition through hereditary succession if
This does not mean that a fiduciary is allowed to insurance principle, which financially protects the the foreigner is a legal or natural heir
escape from his obligations for, after registration, he landowner against loss should the registrar make any ë Purchase of not more than 40% interest in a
holds the land upon the trusts and for the purposes mistakes in the proper registration of the property. condominium project
for which the same is applicable by law although ë Purchase by a former natural-born Filipino
these equities are behind the impenetrable curtain of 


 citizen subject to the limitations prescribed
the register book. In general, only Filipino citizens and corporations or by law. (natural born Filipinos who acquired
curtain principle, the certificate of title partnerships with least 60% of the shares are owned foreign citizenship is entitled to own up to
serves as the main proof of ownership, eradicating by Filipinos are entitled to own or acquire land in the 1,000 sq.m. of residential land, and 1 hectare
the need for lengthy documentation Philippines. Foreigners or non-Philippine nationals of agricultural or farm land)
 ë Filipinos who are married to aliens who If holding a title as an individual, a typical situation ë Those who are not BI registered and
retain their Filipino citizenship, unless by would be that a foreigner married to a Filipino citizen overseas should file the petition at the
their act or omission they have renounced would hold title in the Filipino spouse's name. The nearest embassy or consulate.
their Filipino citizenship foreign spouse's name cannot be on the Title but can
$
be on the contract to buy the property. In the event ë Birth certificate authenticated my the
!

  of death of the Filipino spouse, the foreign spouse is Philippines National Statistics Office (NSO)
Foreign nationals or corporations may completely allowed a reasonable amount of time to dispose of ë Accomplish and submit a ͞Petition for Dual
own a condominium or townhouse in the Philippines. the property and collect the proceeds or the property Citizenship and Issuance of Identification
To take ownership of a private land, residential house will pass to any Filipino heirs and or relatives. Certificate (IC) pursuant to RA 9225͟ to a
and lot, and commercial building and lot foreigners Philippine embassy, consulate or the Bureau
may set up a Philippine corporation in the Philippines. ()
 ' of Immigration
This means that the corporation owning the land has ' ' ë Pay a $50.00 processing fee, schedule and
less than or up to 40% foreign equity and it is formed Any natural-born Philippine citizen who has lost his take an "Oath of Allegiance" before a
by 5-15 natural persons of legal age as incorporators, Philippine citizenship may still own private land in the consular officer
majority of whom are Philippine residents. Philippines up to a maximum area of 5,000 square ë The Bureau of Immigration in Manila
meters in the case of rural land. In the case of married receives the petition from the embassy or
!
!"

% couples, the total area that both couples are allowed consular office. The BI issues and sends an
Leasing land in the Philippines on a long term basis is to purchase should not exceed the maximum area Identification Certificate of citizenship to the
an option for foreigners or foreign corporations with mentioned above. embassy or consular office.
more than 40 percent foreign equity. Under the If a former Filipino who is now a naturalized citizen of
Investor's Lease Act of the Philippines a foreign &   '*+)%,& a foreign country does not want to avail of the Dual
national and or corporation may enter into a lease  - Citizen Law in the Philippines, he or she can still
agreement with Filipino landowners for an initial Former natural-born Filipinos who are now acquire land based on BP (Batas Pambansa) 185 & RA
period of up to 50 years renewable once for an naturalized citizens of another country can buy and (Republic Act) 8179 but limited to the following:
additional 25 years. register, under their own name, land in the
Philippines but limited in land area. However, those For Residential Use
!! 

 who avail of the Dual Citizenship Law in the (BP 185 - enacted in March 1982):
Foreigners owning a house or building in the Philippines can buy as much as any other Filipino ë Up to 1,000 square meters of residential land
Philippines is legal as long as the foreigner does not citizen. Under Republic Act 9225 (Philippines Dual ë Up to one (1) hectare of agricultural of farm
own the land on which the house is build. Citizenship Law of 2003), former Filipinos who land
became naturalized citizens of foreign countries are For Business/Commercial Use (RA 8179 - amended
!! &c
 deemed not to have lost their Philippine citizenship, the Foreign Investment act of 1991):


 thus enabling them to enjoy all the rights and ë Up to 5,000 square meters of urban land
The Condominium Act of the Philippines, R.A. 4726, privileges of a Filipino regarding land ownership in the
ë Up to three (3) hectares of rural land
expressly allows foreigners to acquire condominium Philippines.
c 


units and shares in condominium corporations up to 
"0$
not more than 40% of the total and outstanding ./ '
$
ë Philippines Capital gains tax - 6% of actual
capital stock of a Filipino owned or controlled
condominium corporation. However, there are a very
few single-detached homes or Townhouses in the
Philippines with condominium titles. Most
condominiums are high rise buildings.
!  '
ë If you are in the Philippines, file a "Petition
for Dual Citizenship and Issuance of
Identification Certificate (IC) pursuant to RA
9225͟ at the Bureau of Immigration (BI) and
for the cancellation of your alien certificate
of registration.
sale price. This is paid by the seller but in
some cases it might be expected that the
buyer pays. This percentage could differ if
the property assessed is being used by a
business or is a title- owned by a
 corporation, in this case the percentage is
7.5%
ë Philippines Document stamp tax - 1.5% of
the actual sale price. This is paid by wither
the buyer or the seller upon agreement.
Normally however, it is the buyer who
shoulders the cost.
ë Philippines Transfer tax - 0.5% of the actual
sale price
ë Philippines Registration fee - 0.25% of the
actual sale price

"/0$
ë Philippines Capital gains tax - 10% of actual
sale price. This value might be expressed as
part of the sale price
ë Philippines Document stamp tax - 1.5% of
the actual sale price
ë Philippines Transfer tax - 0.5% of the actual
sale price
ë Philippines Registration fee - 0.25% of the
actual sale price