Real Estate Transactions

         Navigating real estate in the Philippines requires understanding a legal landscape that strictly prioritizes national interest. Under the Philippine Constitution, foreign individuals are generally prohibited from owning land outright, as this right is reserved exclusively for Filipino citizens and corporations that are at least 60% Filipino-owned (Chula Digital Collections; University of the Philippines). However, foreigners can legally own residential property through the Condominium Act. This law allows non-citizens to purchase individual condominium units, provided that the total foreign ownership of the building’s corporation does not exceed 40%

         For those seeking to utilize landed property, long-term leasing remains the most secure legal alternative. Recent legislative updates to the Investors’ Lease Act now allow foreign investors to enter into lease agreements for an initial period of 50 years, renewable for another 49 years, totaling a maximum of 99 years. This provides a stable, multi-generational framework for residential or industrial development. Additionally, former natural-born Filipinos who have acquired foreign citizenship retain limited land-ownership rights, and any foreigner may legally inherit land through hereditary succession if they are the compulsory heir of the deceased owner. Navigating these options requires strict adherence to the Anti-Dummy Law, which penalizes those who use Filipino fronts to circumvent ownership caps.

         Our firm’s rich experience in undertaking due diligence in real estate transactions, coupled with our managing lawyer’s experience as a dual-licensed real estate professional (real estate broker and real estate appraiser) give our clients the guaranteed peace of mind in all of their real estate transactions.

For answers to common questions regarding Philippine real estate laws, view ourReal Estate Transactions FAQs →