Condotel or Condo Hotel Property Investments in the Philippines

When you consider these facts along with aging population, increased property wealth, Self-Invested Pension Plans and leisure lifestyle aspirations of the populous it is easy to see why many shrewd property investors are looking for better lifestyle and hassle free overseas ownership and why many advisors are looking aside from the traditional UK buy to let and Spanish holiday let for property options for Condotel Investments in the Philippines.

Beth Collingz, of PLC International Marketing Networks, Lead Marketing Partner with Pacific Concord Properties Inc., whom have Condo Hotel or ‘Condotel’ developments in the Philippine, and whom specializes in working with international clients in a recent conference with UK Investors held in Cebu, said: “Since the Dollar value depreciated and UK Pound Sterling hit 96:1 on the Philippine Peso, my phone has been very busy with buyers from the UK interested in purchasing investment properties and holiday homes here in the Philippines.

A lot of this interest is being driven by relatively cheap market prices in the Philippines compared to Europe, especially UK Housing prices, and easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through In-House Management when not using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 8-16% depending upon the mode of payment for the unit”

Collingz, who also runs PLC Global Pinoy, an internet based marketing network specializing in Condotel Investments, indicated more than 85% of all sales in Metro Manila were to international clients. “These international buyers know it’s a buyer’s market in the Philippines right now - there are a lot of properties available and fewer local buyers,” Collingz said. “I’m working with clients who are purchasing their second property with me. We also have referrals from many of our prior customers and new clients who have found us through our Web sites, lancastersuites.com and plcglobalpinoy.com which include a special section for international buyers”

Another major driving factor in overseas property investments from the United Kingdom is UK Tax Payers taking advantage of tax incentives and Investing their Self-Invested Pension Plan [SIPP] In Philippine Condotel Investment Real Estate for Rental Income and Retirement said Collingz.

A Self Invested Pension Plan [SIPP] is a personal pension plan but with one very significant difference: administration is separate from investment content, giving the plan holder freedom to choose for himself and change the investments within it. The long-awaited rules on what savers can include in their personal pension plans were unveiled in April 2006 by HM Revenue & Customs. The Guidance Notes confirm that the Chancellor is permitting Self Invested Pension Plan [SIPP] holders to invest in hotels such as the Lancaster Brand of Condo Hotels in the Philippines. The only stipulation is that SIPP holders may not stay in their rooms. With more nights available for paying guests, this not surprisingly increases the room owners’ returns. It is estimated there are now more than 70,000 plans holding over £14bn.

A year or so ago, few people in the UK realized that they could manage their Pension Plan portfolios themselves, and even fewer knew that they could invest their SIPP retirement money in homes in the sun which now prove to be among the most popular potential investments to include in a SIPP

If you’re considering using your SIPP to invest in real estate, there are some excellent reasons that you should choose Philippine Condotel Investment real estate to drive your retirement portfolio into high profit margins. The Philippines is ideal for this type of investment because a SIPP can establish title to a property in a country whose legal framework recognizes trusts – and a SIPP is simply another form of trust.

“Investing in foreign real estate is neither as risky nor as tricky as a lot of people would have you believe. While land and housing prices in the U.K. have soared astronomically in the past decade, the world real estate market is a far different story. It’s still possible to buy a preconstruction Condotel suite at Lancaster – The Atrium located in Metro Manila, Philippines, for less than GBP £25,000.00”

“The beauty of holding property in the Philippines is the low cost of property taxes and maintenance. A GBP £25,000 Condotel suite will only set you back GBP £100 in property taxes per year, and maintenance costs are similarly low. When you add in the tax-protected status of investments made in your SIPP, annual off plan property appreciation and the 8-16% returns through rental income through the Condotel advantage, you have an incredible ROI on a purchase of Philippine Condotel investment real estate” enthused Collingz.

With preconstruction property in the Philippines appreciating at some 20% per annum not only do real estate investments look good but the rental income return in the Country is in excess of what many Pension Plans offer for the same or similar investment.

Many new investors are looking to replace failed pension plans and other future saving schemes with a solid investment in Real Estate. “Clients are looking for investments that will give them an income for retirement as an alternative to traditional private pension plans that have failed. Most company pension plans are insufficient as are Government Pensions. Bank rates for Savings accounts are at record lows. Savvy investors are now looking for a more solid investment with potential for monthly income. Condotels in the Philippines fit the bill”

This potential, high rates of rental returns from Condo Hotel Investments, up to 14% per annum, opens up a huge market not traditionally looked at by Real Estate Agents and Brokers whom all so often run around looking for normal residential profile “buyers” without looking at the by far bigger picture of investments, investing and retirement. “We’re here to help our clients and advise them of emerging investment opportunities in the Philippines. Self-Invested Pension Plans and Lancaster Condotels, fit this bill exactly”; adds Collingz.

Pacific Concord Properties, Inc., Flagship Lancaster Condo Hotel [Manila] development located along Shaw Boulevard, Mandaluyong City, Metro Manila, is currently one of the hottest Condotel Investments in the Philippines. Lancaster - The Atrium is accepting Reservations for Studio, One, Two & Three Bedroom Suites adopting International Standard Escrow Trust Account “Buyer Safe” Easy Secure Payment Plans… with 6 year interest free payment terms or up to 12 year “In-House” financing available, full condo ownership and minimum monthly maintenance fees, you really should take a moment to look at this Philippine Condotel Investment Opportunity said Collingz.

Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a “Full Service” Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale.

To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with option of enrolling their units in the Lancaster Condotel Rental Pool.

Great Investment for Fil-Am’s whom visit Manila for Vacations or Business as they can earn Rental Incomes [at current purchase levels] of some 12-14% ROI per annum as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites one of the Hottest Investment Opportunities in the Philippines.

Units at the Lancaster Suites have basic kitchen facilities. The standard unit price [Option 2 – Semi Fitted Suites] provides for the suite to be semi-finished but not fully furnished or fitted. Included in the current standard basic price for the ‘Semi-Fitted’ units are the interior finishing’s such as tiled & fitted bathrooms, bedrooms with simulated wood plank flooring, semi-fitted living and dining area tiled floorings and lower kitchen cabinets/work tops installed. Ceilings and walls are painted cement finish.

Units are also available on a Bare Unfinished basis [Option 1 – Bare Unfinished Units] for clients intending to fit-out their own suites or avail of the Condotel completion at a later date.

A complete Condotel Suite optional extra interior fit-out package including unit fixtures and fittings, furniture’s, furnishings, light fittings and fixtures and appliances including air-conditioning will be available towards the time the units are closer to being completed towards the latter part of 2010. Monthly condo dues are currently around 80 pesos/square meter of the unit floor area/month.

Executive Studio Deluxe Suites [Option 2 - Semi Fitted Suites]
Price Effective: September 15, 2007. Prices Quoted in Philippine Pesos [PHP]

Lancaster Atrium Tower A Executive Deluxe Studio Suites. Average Floor Area 32.50 square meters [350sqft] at -Php-75,888.00/sqm. -Php-2,466,360.00. These units are either facing towards Ortigas Center overlooking Pasig towards Laguna de Bay and Antipolo or overlooking Mandaluyong, Makati and towards Manila Bay or Swimming Pool Deck. All units within the Lancaster Suites Manila Atrium. The Current Offer for a Studio Suite provides that it may be purchased with Reservation -Php-25,000.00 and Balance Payable without interest over 72 consecutive equal monthly payments of -Php-33,907.78.

Alternatively Save -Php-146,481.92 by making Reservation -Php-25,000.00 then within 30 days a 30% Net Discounted Down Payment of -Php-585,926.40 and Balance payable without interest over 72 consecutive equal monthly payments of -Php-23,735.44.

Lancaster Atrium Executive Deluxe Studio Suites are also available on affordable and competitive New Payment Plan that provides for Executive Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance of the contract price payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

Pay -Php-25,000.00 Reservation for a 32.50sqm [350sqft Executive Studio [Contract Price -Php-2,466,360.00] then 60 consecutive monthly payments of -Php-27,261.85 with the balance of -Php-805,648.80 either payable in cash on turnover or to be financed over another 60 months payment plan…..

Cash Payment option, take 20% discount [Save -Php-493,272.00] make Reservation [-Php-25,000.00] and within 30 days pay 90% [-Php-1,753,279.20] the remaining 10% [-Php-194,808.80] on unit turnover from December 2010

Lancaster Atrium Semi Fitted Studio Suites may now be Purchased on 12 Year Payment Plan Options

The New Twelve [12] Year Payment Plan provides for Executive Studio [Semi Fitted] Suites to be purchased with a Reservation of only -Pph-25,000.00 for a 32.50sqm [350sqft] Studio [Contract Price -Pph-2,466,360.00] then 48 consecutive monthly payments of only -Pph-17,801.58 [No Interest for the first 4 years]. During the first 4 years there is an Annual Lump Sum payable on the anniversary of the reservation date of -Pph-91,551.00 and thereafter continue the 96 consecutive monthly payments of -Pph-24,075.73 to complete the balance of the purchase price.

One Bedroom Corner Suites [Option 2 – Semi Fitted Suites]
Price: September 15, 2007. Prices Quoted in Philippine Pesos [PHP]

Lancaster – The Atrium Tower A One Bedroom Corner Suites. Average Floor Area 62.82 square meters [675 sqft] at Philippine Pesos -Pph-84,994.56/sqm. -Pph-5,339,358.26 [Including Taxes] These units are all Corner Suites either facing towards Ortigas Center overlooking Pasig towards Laguna de Bay and Antipolo, Samat Street overlooking Mandaluyong, Makati and towards Manila Bay and the Swimming Pool Deck. All units are within the Lancaster Suites Manila Atrium. Current Special Offer for a One Bedroom Suite provides that it may be purchased with a Reservation Fee -Pph-25,000.00 and Balance Payable without interest over 72 consecutive equal monthly payments of -Pph-73,810.53.

Alternatively Save -Pph-318,861.64 by making Reservation -Pph-25,000.00 then within 30 days a 30% Net Down Payment of -Pph-1,275,445.98 Balance payable without interest over 72 consecutive equal monthly payments of -Pph-51,667.37.

Lancaster Atrium One Bedroom Corner Suites are available on affordable and competitive New Payment Plan that provides for Executive Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance of the contract price payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

Pay only -Pph-25,000.00 Reservation for a 62.82 sqm [675 sqft One Bedroom Suite [Contract Price -Pph-5,339,358.26] then 60 consecutive monthly payments of only -Pph-59,343.67 with the balance of -Pph-1,753,738.23 either payable in cash on turnover or to be financed over another 60 months payment plan…..

Cash Payment option, take 20% discount [Save -Pph-1,067,871.65] Reservation –Pph-25,000.00 then within 30 days pay 90% [-Pph-3,821,837.95] and the remaining 10% [-Pph-424,648.66] on unit turnover from December 2010

Lancaster Atrium Semi Fitted One Bedroom Suites may now be purchased on 12 Year Payment Plans

The New Twelve [12] Year Payment Plan provides for One Bedroom [Semi Fitted] Suites to be purchased with a Reservation of only -Pph-25,000.00 for a 62.82sqm [675sqft One Bedroom Suite [Contract Price -Pph-5,339,358.26] then commecning within 30 days, 48 consecutive monthly payments of only -Pph-38,750.53 [No Interest for the first 4 years]. During the first 4 years there is a Annual Lump Sum payable on the anniversary of the reservation date of -Pph-199,288.43 and thereafter 96 consecutive monthly payments of -Pph-52,408.11 to complete balance of the purchase price.

Two Bedroom Loft Type Suites [Option 2 - Semi Fitted Suites]
Price: September 15, 2007. Prices Quoted in Philippine Pesos [PHP]

Lancaster - Atrium Tower A Executive Two Bedroom Loft Type Suites. Floor Area 75.67 square meters [815sqft] at Philippine Pesos -Pph-84,994.56/sqm. -Pph-6,431,538.36 [Including Tax] These units are all 2-Storey “Loft-Type” Suites either facing towards Ortigas Center overlooking Pasig towards Laguna de Bay and Antipolo, Samat Street overlooking Mandaluyong, Makati and towards Manila Bay and the Swimming Pool Deck. All units are within Lancaster Suites Manila Atrium. The Special Offer for a Two Bedroom Suite provides that it may be purchased with a Reservation Fee -Pph-25,000.00 and the Balance then Payable without interest over 72 consecutive equal monthly payments of -Pph-88,979.70.

Alternatively Save -Pph-384,392.27 by making a Reservation -Pph-25,000.00 then within 30 days a 30% Net Down Payment of -Pph-1,537,569.21 and Balance payable without interest over 72 consecutive equal monthly payments of -Pph-62,285.79.

Lancaster Atrium Two Bedroom ‘Loft Type” Suites are available on affordable and competitive New Payment Plan that provides for Executive Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance of the contract price payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

Pay -Pph-25,000.00 Reservation for a 75.67 sqm [815 sqft] Two Bedroom “Loft Type” Suite [Contract Price -Pph-6,431,538.36] then 60 equal consecutive monthly payments of only -Pph-71,539.68 with the balance of -Pph-2,114,157.66 either payable in cash on turnover or to be financed over another 60 months payment plan.

Cash Payment option, take 20% discount [Save -Pph-1,286,307.67] Reservation -Pph-25,000.00 then within 30 days pay 90% [-Pph-4,608,207.62] and the remaining 10% [-Pph-512,023.07] on unit turnover from December 2010

Lancaster Atrium Semi Fitted Two Bedroom Bi-Level Suites may now be purchased on 12 Year Payment Plans

The New Twelve [12] Year Payment Plan provides for Two Bedroom [Semi Fitted] Suites to be purchased with a Reservation of only -Pph-25,000.00 for a 75.67sqm [815sqft Two Bedroom Suite [Contract Price -Pph-6,431,538.36] then commencing with 30 days, 48 consecutive monthly payments of -Pph-46,714.34 [No Interest for the first 4 years]. During the first 4 years there is an Annual Lump Sum payable on the anniversary of the reservation date of -Pph-240,245.19 and thereafter 96 consecutive monthly payments of -Pph-63,178.76 to complete the balance of the purchase price.

Three Bedroom Bi-Level Penthouse Suites [Option 2 – Semi Fitted Suites]
Price: September 15, 2007. Prices Quoted in Philippine Pesos [PHP]

Lancaster Atrium Tower A Bi-Level Three Bedroom Penthouse Suites. Floor Area 136.30 square meters [1467 sqft] at Philippine Pesos -Pph-92,834.56/sqm. Contract Price -Pph-12,653,350.53 [Including Taxes] These units are all 2-Storey Loft-Type or Bi-Level Suites” either facing Ortigas Center overlooking Pasig towards Laguna de Bay and Antipolo or overlooking Mandaluyong, Makati towards Manila Bay. Current Special Offer for Penthouse Suites provide purchases with -Pph-25,000.00 Reservation and Balance Payable without interest over 72 consecutive equal monthly payments -Pph-175,393.76.

Alternatively Save -Pph-757,701.04 by making Reservation -Pph-25,000.00 then within 30 days 30% Net Down Payment of -Pph-3,030,804.13 and Balance payable without interest over 72 consecutive equal monthly payments -Pph-122,775.63.

Lancaster Atrium Penthouse Suites are available on affordable and competitive New Payment Plan that provides for Executive Suites to be purchased on a No Interest No Down Payment basis with 67% of the payment payable over 60 equal consecutive monthly installments without interest and the 33% balance of the contract price payable upon turnover of the unit or to be paid over an additional 5 years from turnover through our hassle free no prequalification “In-House” Finance Plans…

Pay -Pph-25,000.00 Reservation for a 136.30 sqm [1467 sqft One Bedroom Suite [Contract Price -Pph-12,653,350.53] then 60 consecutive monthly payments of only -Pph-141,016.58 with balance of -Pph-4,167,355.67 either payable in cash on turnover or to be financed over another 60 months payment plan.

Cash Payment option, take 20% discount [Save -Pph-2,530,670.11] Reservation -Pph-25,000.00 then within 30 days pay 90% [-Pph-9,087,912.38] and the remaining 10% [-Pph-1,009,768.04] on unit turnover from December 2010

Lancaster Atrium Semi Fitted Three Bedroom Bi-Level Penthouse Suites may now be purchased on 12 Year Payment Plans

The New Twelve [12] Year Payment Plan provides for Three Bedroom [Semi Fitted] Bi-Level Penthouse Suites to be purchased with a Reservation of only -Pph-25,000.00 for a 136.30sqm [1467sqft Penthouse Suite [Contract Price -Pph-12,653,350.53] then 48 consecutive monthly payments of only -Pph-92,081.72 [No Interest for the first 4 years]. During the first 4 years there is an Annual Lump Sum payable on the anniversary of the reservation date of -Pph-473,563.14 and thereafter 96 consecutive monthly payments of -Pph-124,535.83 to complete balance of purchase price.

Available Lancaster Mall Shops, Restaurants & Store Units
Price: September 15, 2007. Prices quoted in Philippine Pesos [PHP]

Lancaster Atrium Tower A Shops, Restaurants & Store Units. Example: Floor Area 45.11 sqm [485sqft] at Pph-95,760.00/sqm. -Pph-4,319,733.60 [Including Taxes] These units are all within the Lancaster Shopping Mall located on the Lower & Upper Ground Floors of the Podium. Current Special Offer for the example 45.11sqm Lower Ground Floor Shops, Restaurants and Store units provide purchases with -Pph-50,000.00 Reservation and Balance Payable without interest over 72 consecutive equal monthly payments -Pph-59,301.86.

Alternatively Save -Pph-256,183.94 by making the Reservation -Pph-50,000.00 then within 30 days 30% Net Down Payment -Pph-1,024,736.06 and Balance payable without interest over 72 consecutive equal monthly payments -Pph-41,511.30.

Pay Cash and take 20% discount [Save -Pph-863,946.72] by making the Reservation -Pph-50,000.00 then within 30 days pay 90% [-Pph-3,065,208.19] and 10% [-Pph-340,578.69] on unit Turnover from December 2010

Please note; these are average floor areas. Actual unit sizes vary from floor to floor. Please note all Unit offers on Cash Basis will be given Priority Reservation Status. Prices quoted are in Philippine Pesos [Effective May 25, 2007]

All Lancaster [Semi-Fitted Option 2] Residential Suites Unit Features Include:

* Vitrified ceramic tiles in living, dining areas
* Ceramic tiles in kitchen and toilet and bath
* Toilets with mechanical ventilation
* Plastered cement walls and ceilings’ with painted finishes
* Provisions for split type air-conditioners

In the Philippines, Foreign Nationals can only buy condominium units under Republic Act 4726, otherwise known as the Condominium Act. The law provides that no condominium unit can be sold without at the same time selling the corresponding amount of rights, shares or other interests in the condominium management body (The Condominium Corporation), and no one can buy shares in a condominium corporation without at the same time buying a condominium unit. Now the Condominium Act of the Philippines, R.A. 4726, expressly allows foreigners to acquire condominium units and shares in condominium corporations up to not more than 40 % of the total and outstanding capital stock of a Filipino owned or controlled corporation.

As for Philippine Visa Requirements, for those Nationals planning to stay for longer term visits to the Country, or for Non Philippine Nationals, a Retirement Visa may be applied through the Philippine Leisure Authority where proposed or “pre-existing investments may qualify the applicant for a Philippine Retirement Visa. The Philippine Leisure and Retirement Authority (PLRA) is now accepting Special Resident Retiree’s Visa (SRRV) applicants with pre-existing investments in the Philippines. This policy has been in place since October 28, 2003. Pre-existing investments in the form of a previously purchased condominium unit, shares of stock in corporations, leasehold agreements and proprietary membership shares are accepted in lieu of the required US dollar time deposit.

In addition to the usual documentary requirements for SRRV application, applicants should submit specific documents depending on the type of investment they will be using in lieu of the US dollar time deposit. For condominium units or long-term leasehold agreements, applicants should submit: Condominium Certificate of Title (CCT) or Transfer Certificate of Title (TCT) duly certified by the Registry of Deeds; and Deed of absolute sale as proof of the property’s purchase price, which should be at least USD 50,000.00 or USD 75,000.00, whichever is applicable, based on the exchange rate at the time the property was purchased or acquired.

• Right To Own Philippine Real Property

Under the pertinent provisions of the Philippine Constitution only Filipino citizens and corporations or partnerships at least 60% Philippine owned are entitled to acquire LAND in the Philippines. As an exception to this rule, foreign acquisition of Philippine real estate is allowed in the following cases. Acquisition before the 1935 constitution. Acquisition thru hereditary succession if the foreign national is a legal heir. Purchase of not more than 40% interest as a whole in a condominium project. Purchase by a former natural born Filipino citizen subject to the limitations prescribed by law. A Filipino who is married to an alien retains their Philippine citizenship, unless by their act or omission they are deemed to have renounced their Philippine citizenship. [Please see notes on the Philippine Dual Citizenship Law].

• Foreign Ownership as a Philippine Corporation

Another way for foreign nationals to invest in Philippine real estate is for the Foreign national or foreign corporation to create a Philippine corporation to hold title. This allows the Philippine corporation of a foreign national or foreign corporation less investment risk and more control of their Philippine real estate investment, and other Philippine investment assets. Foreign nationals, and corporations may 100% own a Philippine condominium or town home.

For private land, residential home with land lot and or commercial building with land lot ownership the foreign national and or corporation forms a Philippine Corporation to take ownership of the property. On paper, a Philippine Corporation by Philippine law will be a maximum of 40% foreign owned, and a minimum of 60% Filipino owned with a minimum of five incorporators. The Philippine corporation by law shall have a main bank account tied to it before and upon incorporation. A foreign national may be the sole person on the Philippine corporation bank account once after the Philippine corporation has been created and power of attorney has been handed over to the foreign investor at the time of incorporation. Thus allowing the foreign national total control over the funds derived and paid out from the Philippine Corporation and from the income or sale of the asset or real estate property.

• New Dual Citizenship Laws Affecting Property Ownership

Dual citizenship is now newly available under Philippine Law. Dual citizenship means having two citizenships and passports from two different countries. Former Philippine citizens born in the Philippines, but that have immigrated to another country and obtained citizenship of that country. A foreign spouse married to a Philippine citizen. Dual citizenship allows the citizenship holder full rights of possession of Philippine real estate property.

* Philippine’s Embraces Dual Citizenship [September 19, 2003]

In a landmark bill, the Philippine Government enacted Citizenship Retention and Reacquisition Act. With this act, the decades-old ban on dual Philippine citizenship was thrown away. The Philippine Congress recognized that in today’s world, Filipinos have dispersed around the world and have even taken on the nationality of their new home countries while maintaining their strong ties to the Filipino community, heritage and families.

Unfortunately, prior to this act, a Filipino who naturalized in another country, such as the U.S. lost Filipino citizenship. The Philippine Congress recognized that this seriously affected the unity of Filipinos overseas with those in the Philippines. It also had drastic consequences with prior Filipinos losing interest in investing in the Philippines.

The new act allows all prior Filipinos who lost their Philippine citizenship because they became citizens of another country to regain Philippine citizenship. It also allows Filipinos who want to naturalize in another country, like the United States for example, to keep their Philippine citizenship. Reacquiring and retaining citizenship allows dual national Filipinos to vote and run for elected office.

The children of Filipinos who reacquire citizenship are also affected. Those unmarried children, under the age of 18 will also be considered to be citizens of the Philippines. This includes legitimate, adopted, and illegitimate children.

The reacquisition of Philippine citizenship is not automatic. Filipinos who lost Philippine citizenship when they became citizens of anther country must swear an oath of allegiance. The oath is found in the text of the act, and in the coming months the Philippine Department of Justice will provide rules on the administration of the oath. One can envision that former Filipinos overseas need appear at their local Consulate to take oath and apply for Philippine passport.

The new act accepts back, with open arms, Filipinos who lost their citizenship. It embraces dual citizenship and recognizes that in today’s day and age dual citizenship is a desirable factor for Filipinos who maintain their allegiance to their homeland.

• Foreigner Married to a Philippine Citizen

If holding title as an individual, a typical situation would be that a foreigner married to a Philippine citizen would hold title in the Philippine spouses name. The foreign spouse name cannot be on the property Title but can be on the contract to buy the property. As a foreign investor caution should be taken upon considering taking title to real estate in this manner.

• Condominium Residential Commercial Development Ownership Law

Presidential Decree No. 957, which regulates the sale of subdivision and condominium developments. The National Housing Authority has exclusive jurisdiction to regulate real estate trade and business, a function, which is presently exercised by the Housing and Land Use Regulatory Board (HLURB). Certain conditions are required before a license to sell condominium development units and or subdivision development lots and homes is issued to a Filipino or Foreign owned individual or corporation. The requirements include a certificate of registration, a performance bond, and an approval of the building plans and specifications.

Hereunder is a copy of the Supreme Court ruling and current jurisprudence relative to a Foreign National illegally claiming ownership of the Land in the Philippines.

FIRST DIVISION IN RE: PETITION FOR G.R. No. 149615
SEPARATION OF PROPERTY

ELENA BUENAVENTURA MULLER,
- versus -
HELMUT MULLER,
August 29, 2006
x ———————– x

DECISION

YNARES-SANTIAGO, J.:

This petition for review on certiorari[1] assails the February 26, 2001 Decision[2] of the Court of Appeals in CA-G.R. CV No. 59321 affirming with modification the August 12, 1996 Decision 3] of the Regional Trial Court of Quezon City, Branch 86 in Civil Case No. Q-94-21862, which terminated the regime of absolute community of property between petitioner and respondent, as well as the Resolution[4] dated August 13, 2001 denying the motion for reconsideration.

The facts are as follows:

Petitioner Elena Buenaventura Muller and respondent Helmut Muller were married in Hamburg, Germany on September 22, 1989. The couple resided in Germany at a house owned by respondent’s parents but decided to move and reside permanently in the Philippines in 1992. By this time, respondent had inherited the house in Germany from his parents which he sold and used the proceeds for the purchase of a parcel of land in Antipolo, Rizal at the cost of P528,000.00 and the construction of a house amounting to P2,300,000.00. The Antipolo property was registered in the name of petitioner under Transfer Certificate of Title No. 219438[5] of the Register of Deeds of Marikina, Metro Manila.

Due to incompatibilities and respondent’s alleged womanizing, drinking, and maltreatment, the spouses eventually separated. On September 26, 1994, respondent filed a petition[6] for separation of properties before the Regional Trial Court of Quezon City.

On August 12, 1996, the trial court rendered a decision which terminated the regime of absolute community of property between the petitioner and respondent. It also decreed the separation of properties between them and ordered the equal partition of personal properties located within the country, excluding those acquired by gratuitous title during the marriage. With regard to the Antipolo property, the court held that it was acquired using paraphernal funds of the respondent. However, it ruled that respondent cannot recover his funds because the property was purchased in violation of Section 7, Article XII of the Constitution. Thus –

However, pursuant to Article 92 of the Family Code, properties acquired by gratuitous title by either spouse during the marriage shall be excluded from the community property. The real property, therefore, inherited by petitioner in Germany is excluded from the absolute community of property of the herein spouses. Necessarily, the proceeds of the sale of said real property as well as the personal properties purchased thereby, belong exclusively to the petitioner. However, the part of that inheritance used by the petitioner for acquiring the house and lot in this country cannot be recovered by the petitioner, its acquisition being a violation of Section 7, Article XII of the Constitution which provides that “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.” The law will leave the parties in the situation where they are in without prejudice to a voluntary partition by the parties of the said real property. x x x

x x x x

As regards the property covered by Transfer Certificate of Title No. 219438 of the Registry of Deeds of Marikina, Metro Manila, situated in Antipolo, Rizal and the improvements thereon, the Court shall not make any pronouncement on constitutional grounds.[7]

Respondent appealed to the Court of Appeals which rendered the assailed decision modifying the trial court’s Decision. It held that respondent merely prayed for reimbursement for the purchase of the Antipolo property, and not acquisition or transfer of ownership to him. It also considered petitioner’s ownership over the property in trust for the respondent. As regards the house, the Court of Appeals ruled that there is nothing in the Constitution which prohibits respondent from acquiring the same. The dispositive portion of the assailed decision reads:

WHEREFORE, in view of the foregoing, the Decision of the lower court dated August 12, 1996 is hereby MODIFIED. Respondent Elena Buenaventura Muller is hereby ordered to REIMBURSE the petitioner the amount of P528,000.00 for the acquisition of the land and the amount of P2,300,000.00 for the construction of the house situated in Antipolo, Rizal, deducting there from the amount respondent spent for the preservation, maintenance and development of the aforesaid real property including the depreciation cost of the house or in the alternative to SELL the house and lot in the event respondent does not have the means to reimburse the petitioner out of her own money and from the proceeds thereof, reimburse the petitioner of the cost of the land and the house deducting the expenses for its maintenance and preservation spent by the respondent. Should there be profit, the same shall be divided in proportion to the equity each has over the property. The case is REMANDED to the lower court for reception of evidence as to the amount claimed by the respondents for the preservation and maintenance of the property.

SO ORDERED.

Hence, the instant petition for review raising the following issues:

I

THE HONORABLE COURT OF APPEALS GRAVELY ERRED IN HOLDING THAT THE RESPONDENT HEREIN IS ENTITLED TO REIMBURSEMENT OF THE AMOUNT USED TO PURCHASE THE LAND AS WELL AS THE COSTS FOR THE CONSTRUCTION OF THE HOUSE, FOR IN SO RULING, IT INDIRECTLY ALLOWED AN ACT DONE WHICH OTHERWISE COULD NOT BE DIRECTLY x x x DONE, WITHOUT DOING VIOLENCE TO THE CONSTITUTIONAL PROSCRIPTION THAT AN ALIEN IS PROHIBITED FROM ACQUIRING OWNERSHIP OF REAL PROPERTIES LOCATED IN THE PHILIPPINES.

II

THE COURT OF APPEALS GRAVELY ERRED IN SUSTAINING RESPONDENT’S CAUSE OF ACTION WHICH IS ACTUALLY A DESPERATE ATTEMPT TO OBTAIN OWNERSHIP OVER THE LOT IN QUESTION, CLOTHED UNDER THE GUISE OF CLAIMING REIMBURSEMENT.

Petitioner contends that respondent, being an alien, is disqualified to own private lands in the Philippines; that respondent was aware of the constitutional prohibition but circumvented the same; and that respondent’s purpose for filing an action for separation of property is to obtain exclusive possession, control and disposition of the Antipolo property.

Respondent claims that he is not praying for transfer of ownership of the Antipolo property but merely reimbursement; that the funds paid by him for the said property were in consideration of his marriage to petitioner; that the funds were given to petitioner in trust; and that equity demands that respondent should be reimbursed of his personal funds.

The issue for resolution is whether respondent is entitled to reimbursement of the funds used for the acquisition of the Antipolo property.

The petition has merit.

Section 7, Article XII of the 1987 Constitution states:

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.

Aliens, whether individuals or corporations, are disqualified from acquiring lands of the public domain. Hence, they are also disqualified from acquiring private lands.[9] The primary purpose of the constitutional provision is the conservation of the national patrimony. In the case of Krivenko v. Register of Deeds,[10] the Court held:

Under section 1 of Article XIII of the Constitution, “natural resources, with the exception of public agricultural land, shall not be alienated,” and with respect to public agricultural lands, their alienation is limited to Filipino citizens. But this constitutional purpose conserving agricultural resources in the hands of Filipino citizens may easily be defeated by the Filipino citizens themselves who may alienate their agricultural lands in favor of aliens. It is partly to prevent this result that section 5 is included in Article XIII, and it reads as follows:

“Sec. 5. Save in cases of hereditary succession, no private agricultural land will be transferred or assigned except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain in the Philippines.”

This constitutional provision closes the only remaining avenue through which agricultural resources may leak into aliens’ hands. It would certainly be futile to prohibit the alienation of public agricultural lands to aliens if, after all, they may be freely so alienated upon their becoming private agricultural lands in the hands of Filipino citizens. x x x

x x x x

If the term “private agricultural lands” is to be construed as not including residential lots or lands not strictly agricultural, the result would be that “aliens may freely acquire and possess not only residential lots and houses for themselves but entire subdivisions, and whole towns and cities,” and that “they may validly buy and hold in their names lands of any area for building homes, factories, industrial plants, fisheries, hatcheries, schools, health and vacation resorts, markets, golf courses, playgrounds, airfields, and a host of other uses and purposes that are not, in appellant’s words, strictly agricultural.” (Solicitor General’s Brief, p. 6.) That this is obnoxious to the conservative spirit of the Constitution is beyond question.

Respondent was aware of the constitutional prohibition and expressly admitted his knowledge thereof to this Court.[11] He declared that he had the Antipolo property titled in the name of petitioner because of the said prohibition.[12] His attempt at subsequently asserting or claiming a right on the said property cannot be sustained.

The Court of Appeals erred in holding that an implied trust was created and resulted by operation of law in view of petitioner’s marriage to respondent. Save for the exception provided in cases of hereditary succession, respondent’s disqualification from owning lands in the Philippines is absolute. Not even an ownership in trust is allowed. Besides, where the purchase is made in violation of an existing statute and in evasion of its express provision, no trust can result in favor of the party who is guilty of the fraud. [13] To hold otherwise would allow circumvention of the constitutional prohibition.

Invoking the principle that a court is not only a court of law but also a court of equity, is likewise misplaced. It has been held that equity as a rule will follow the law and will not permit that to be done indirectly which, because of public policy, cannot be done directly.[14] He who seeks equity must do equity, and he who comes into equity must come with clean hands. The latter is a frequently stated maxim which is also expressed in the principle that he who has done inequity shall not have equity. It signifies that a litigant may be denied relief by a court of equity on the ground that his conduct has been inequitable, unfair and dishonest, or fraudulent, or deceitful as to the controversy in issue.[15]

Thus, in the instant case, respondent cannot seek reimbursement on the ground of equity where it is clear that he willingly and knowingly bought the property despite the constitutional prohibition.

Further, the distinction made between transfer of ownership as opposed to recovery of funds is a futile exercise on respondent’s part. To allow reimbursement would in effect permit respondent to enjoy the fruits of a property which he is not allowed to own. Thus, it is likewise proscribed by law. As expressly held in Cheesman v. Intermediate Appellate Court:[16]

Finally, the fundamental law prohibits the sale to aliens of residential land. Section 14, Article XIV of the 1973 Constitution ordains that, “Save in cases of hereditary succession, no private land shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.” Petitioner Thomas Cheesman was, of course, charged with knowledge of this prohibition. Thus, assuming that it was his intention that the lot in question be purchased by him and his wife, he acquired no right whatever over the property by virtue of that purchase; and in attempting to acquire a right or interest in land, vicariously and clandestinely, he knowingly violated the Constitution; the sale as to him was null and void. In any event, he had and has no capacity or personality to question the subsequent sale of the same property by his wife on the theory that in so doing he is merely exercising the prerogative of a husband in respect of conjugal property. To sustain such a theory would permit indirect controversion of the constitutional prohibition. If the property were to be declared conjugal, this would accord to the alien husband a not insubstantial interest and right over land, as he would then have a decisive vote as to its transfer or disposition. This is a right that the Constitution does not permit him to have.

As already observed, the finding that his wife had used her own money to purchase the property cannot, and will not, at this stage of the proceedings be reviewed and overturned. But even if it were a fact that said wife had used conjugal funds to make the acquisition, the considerations just set out to militate, on high constitutional grounds, against his recovering and holding the property so acquired, or any part thereof. And whether in such an event, he may recover from his wife any share of the money used for the purchase or charge her with unauthorized disposition or expenditure of conjugal funds is not now inquired into; that would be, in the premises, a purely academic exercise. (Emphasis added)

WHEREFORE, in view of the foregoing, the instant petition is GRANTED. The Decision dated February 26, 2001 of the Court of Appeals in CA-G.R. CV No. 59321 ordering petitioner Elena Buenaventura Muller to reimburse respondent Helmut Muller the amount of P528,000 for the acquisition of the land and the amount of P2,300,000 for the construction of the house in Antipolo City, and the Resolution dated August 13, 2001 denying reconsideration thereof, are REVERSED and SET ASIDE. The August 12, 1996 Decision of the Regional Trial Court of Quezon City, Branch 86 in Civil Case No. Q-94-21862 terminating the regime of absolute community between the petitioner and respondent, decreeing a separation of property between them and ordering the partition of the personal properties located in the Philippines equally, is REINSTATED.

SO ORDERED.

[1] Rollo, pp. 31-50.
[2] Id. at 8-13. Penned by Associate Justice Juan Q. Enriquez, Jr. and concurred in by Associate Justices Ruben T. Reyes and Presbitero J. Velasco, Jr. (who is now a Member of this Court).
[3] Id. at 98-101. Penned by Judge Teodoro A. Bay.
[4] Id. at 22.
[5] Id. at 58.
[6] Id. at 52-57.
[7] Id. at 100-101.
Id. at 12.
[9] Ong Ching Po v. Court of Appeals, G.R. Nos. 113472-73, December 20, 1994, 239 SCRA 341, 346.
[10] 79 Phil. 461, 473, 476 (1947).
[11] Rollo, p. 114.
[12] TSN, April 18, 1995, p. 12.
[13] Morales v. Court of Appeals, G.R. No. 117228, June 19, 1997, 274 SCRA 282, 299.
[14] Frenzel v. Catito, 453 Phil. 885, 905 (2003).
[15] University of the Philippines v. Catungal, Jr., 338 Phil. 728, 743-744 (1997).
[16] G.R. No. 74833, January 21, 1991, 193 SCRA 93, 103-104.

For further information please do not hesitate to contact the undersigned.

Beth Collingz
Director - PLC International Marketing Networks
Pacific Concord Properties, Inc., Head Office Manila
Shaw Boulevard Corner Samat St.,
Mandaluyong City. Metro Manila
Philippines 1552.
Tel: [63-2] 717 1958 [Direct Line]
Fax: [63-2] 718-1828
Cell phone: [63] 916-568-3537

Beth Collingz, Overseas Marketing Director of PLC International, the lead brokerage firm for Pacific Concord Properties Inc’s Lancaster Brand of Condotel developments in the Philippines said included in this ambitious plan is the development of infrastructure - with the construction of new highways, the increase of telecommunications, electricity, banking, insurances along with improvements in education and health care specially in progressive cities such as Cebu in central Visayas.

Unfortunately, with so much real estate development happening in the country, coverage of information and relevant news has been scant - to say the least. PLC’s new Property Forum, a dedicated platform designed to bring like minded individuals with one common interest under one community banner, aims to bridge that gap said Collingz.

Launched in August 2007, PLC’s Philippine Property Forum is a young community that brings investors, holiday home owners, developers, agents, and just curious browsers together to provide useful exchange of information and ideas.

The property forum has been designed and with the intention of keeping relevant topics and issues active as the primary focus. The broad categories under the forum are: Condotels in the Philippines, other High Rise Condominium properties, and Investment help and advice. The forum encourages professionals and amateurs alike to share their views and opinions on issues related to Philippine Retirement, Visa Issues, Special Investor Visa’s, Investing, Legal and Real Estate Laws in the Philippines, real estate taxes, property management and others.

With a relatively good number of projects under its banner, PLC’s Property Forum aims to bring on board several large scale projects to share with its members. The forum also attracts corporate membership from developers who wish to participate in the community and communicate with its buyers and investors.

Most of all, PLC’s Property Forum is probably the only dedicated platform related to the Philippines which maintains an independent view and allows free exchange of ideas and opinions. Still a young community, it will not be long before PLC’s Property Forum becomes an authority on issues and topics related to Philippine property investment.

Member registration is free, and PLC’s Property Forum is currently offering free corporate membership to key developers for a limited time.

PLC Global is also looking to expand its Web coverage after recently launching its WEBSEO services for accredited Realtors, Estate Agents, Brokers and Agents joining the PLC Web Ring by purchasing Philippine websites. PLC’s Webseo service provides Realtors with their own individual interactive webpage, agent profile, contact information and summary details of the developments they represent.

Collingz said the firm is actively buying any Philippine websites or Filipino orientated sites on the web to expand our global presence, this coming on the back of the recently announced new services in its efforts to help all realtors, real estate brokers and agents in getting more ground in establishing their presence on-line. Called PLC Webseo, the PLC Global Pinoy Web Ring offers realtors, estate agents, real estate brokers and agents a chance to have their own professionally designed webpage indexed to the plcglobalpinoy.com website designed to individually showcase and feature projects they are offering to the public, at a very reasonable and affordable price.

Anyone who has a Philippine website or Filipino orientated site can send us their offer of purchase said Collingz. We also invite all real estate agents to join us for a one time joining fee of only [Philippine Pesos] –php-2,500.00 and a nominal yearly renewal of –Php-1,000.00. Interested parties can view a sample of the Webseo on the firms website Collingz said. PLC Web Ring members can also advertise with us, or exchange links. When you get to be a part of our web ring, you get free exposure/traffic as visitors click on the other member sites of the web ring. Members can advertise properties for sale or lease with us. And since we are constantly on-line and browsing the web, they can also exchange links for more free traffic and submit real estate articles to be posted on the site or Philippine Skyscraper Forums pages after being approved by site owners.

PLC Global’s WEBSEO also offers its members cost-effective Web Design/Development and Search Engine Optimization services to business individuals as well as small business organizations and medium-sized businesses. Though our web development projects are usually built with Joomla! CMS, one the most popular content management systems today, we also offer development of brochure-like websites using cascading style sheets and HTML. Basically, we offer our search engine optimization services as an integral part of our web development packages. We also offer services to promoting new websites as well as maintaining high rankings in search engines with chosen search terms said Collingz

For further info regarding PLC Global WEBSEO or Philippine Condotel Investments please do not hesitate to contact us:

Beth Collingz - Director
PLC International Marketing Networks
Pacific Concord Properties Inc., Manila
Shaw Boulevard, Mandaluyong City.
Metro Manila. Philippines
Phone: Manila [632] 717 1958
Fax: Manila [632] 718 1828