Political Law and Public International Law:

VII. National Economy and Patrimony

E. Acquisition, Ownership, and Transfer of Public and Private Lands

I. Constitutional and Statutory Provisions

The 1987 Constitution of the Philippines governs the acquisition, ownership, and transfer of public and private lands under Article XII, Sections 2 and 3. The constitutional and statutory framework ensures that ownership and control of land remain primarily with Filipinos to safeguard national sovereignty and economic interests.

Public Lands (Alienable and Inalienable)
- Public domain lands are owned by the State, and the State has the power to classify lands as either alienable and disposable or inalienable.
- Alienable and Disposable (A&D) lands refer to those that the government has declared as available for ownership by private individuals or corporations, subject to constitutional restrictions.
- Inalienable lands, such as forest lands, mineral lands, and national parks, cannot be owned or transferred by private persons unless reclassified by law or presidential proclamation.
Private Lands
- Private lands are those owned by individuals, corporations, or juridical entities either through original grants (such as homesteads or free patents) from the State or through private transactions between individuals.

II. Acquisition of Lands

Citizenship Requirement
- Under the 1987 Constitution, only Filipino citizens and corporations or associations wholly owned by Filipinos can acquire private lands.
- Foreigners may not directly own land, but they are permitted to acquire condominium units provided that the ownership of the entire building does not exceed 40% foreign equity (Constitution, Article XII, Sec. 7).
Corporations and Ownership
- A corporation may acquire private lands if it is at least 60% owned by Filipino citizens (the so-called 60-40 rule). This restriction aims to keep land ownership under Filipino control.
Acquisition by Purchase, Succession, Donation, or Prescription
- Purchase: Land may be acquired by private individuals or corporations through the sale or purchase agreement, subject to the ownership restrictions.
- Succession: Foreigners may inherit land from a deceased Filipino spouse, but they are limited in their capacity to transfer or retain the land.
- Donation: Land can be transferred through donations, but the same rules apply for foreigners (they cannot retain ownership).
- Prescription: Acquisition through adverse possession (i.e., prescription) is limited by law, and prescription does not apply to inalienable lands.

III. Transfer of Lands

Restrictions on Land Transfers
- Land transfers involving public lands are governed by special laws like the Public Land Act (Commonwealth Act No. 141), which defines the manner in which public lands can be transferred to private individuals or juridical persons.
- The transfer of private lands between Filipinos is generally unrestricted, but foreigners are prohibited from acquiring lands except through hereditary succession (for heirs) or as allowed under specific laws for condominium units.
Inter Vivos Transfers
- Sale and Donation Inter Vivos: Sales, donations, and other voluntary transfers during the lifetime of the transferor must comply with ownership restrictions.
- For foreigners, indirect forms of ownership (e.g., leasing land for a long-term period) may be pursued, with leases allowed up to 50 years, renewable for another 25 years.

IV. Limitations and Safeguards

Section 7, Article XII of the 1987 Constitution
- Foreigners cannot own land except in cases of hereditary succession or when buying a condominium unit, as stated earlier.
Anti-Dummy Law (Commonwealth Act No. 108)
- To prevent circumvention of the constitutional restrictions, the Anti-Dummy Law prohibits foreigners from using Filipinos as "dummies" to own land on their behalf. Penalties include imprisonment and fines.
Public Land Act (Commonwealth Act No. 141)
- This law governs the distribution, classification, and disposition of public lands, distinguishing between alienable lands (available for private ownership) and inalienable lands (such as forest and mineral lands).
BP 185 and RA 8179 (Foreign Ownership of Land)
- BP 185 allows former natural-born Filipinos to own a limited amount of land for residential purposes (up to 1,000 sq. meters in urban areas and one hectare in rural areas).
- RA 8179 allows natural-born Filipinos who have lost their citizenship to own land for business purposes (up to 5,000 sq. meters in urban areas and 3 hectares in rural areas).

V. Public Lands Disposition under the Public Land Act

Homestead Patents
- Citizens may apply for homestead patents to acquire public lands. They must cultivate the land and reside on it for a specific number of years before the title is granted.
Free Patents and Other Modes of Disposition
- Free patents are granted to natural-born Filipino citizens who have been occupying and cultivating agricultural lands of the public domain for a continuous period.
Lease of Public Lands
- The government may lease public lands to individuals or corporations for business or agricultural purposes. However, such leases are also subject to the constitutional restrictions regarding citizenship.

VI. Private Land Disposition

Sale and Lease
- Sale of private lands is allowed among Filipinos or Filipino-majority corporations.
- Foreigners may lease private lands for up to 50 years, renewable for an additional 25 years, but they cannot purchase these lands directly.
Agrarian Reform Law
- Under the Comprehensive Agrarian Reform Law (CARL), there are restrictions on the size of landholdings that private individuals or corporations can own. Lands in excess of the retention limits are subject to expropriation for redistribution to landless farmers.

VII. Public International Law Implications

Sovereignty over Land
- The principle of sovereignty under public international law reinforces the exclusive right of the Philippines to regulate the ownership and disposition of land within its territory. This includes limitations on foreign ownership to protect national security, culture, and economic independence.
Treaties and International Agreements
- The Philippines, under public international law, may enter into treaties and international agreements that may affect land policies, such as bilateral investment treaties (BITs), but these agreements are still subject to constitutional provisions limiting land ownership by foreigners.

VIII. Conclusion

The Philippine legal framework for the acquisition, ownership, and transfer of lands is deeply rooted in constitutional safeguards to protect the nation's economy and patrimony. Land is seen not just as a commodity but as a national asset, closely linked to sovereignty and Filipino identity. The restrictions imposed on foreign ownership, the protections given to natural-born Filipinos, and the rules governing public land disposition reflect the country's efforts to ensure that land remains primarily in the hands of its citizens, with limited concessions for foreigners. These laws are reinforced by public international law principles on sovereignty and self-determination, as well as international agreements that respect the Philippines' constitutional limitations.