Hello from Davao Philippines!

8 Replies

Maayong adlaw! Hi everyone! I'm new to the forum. In fact, this is my first time to join a forum on real estate. I just started on this business a few months back. I am an Architect by profession, thus I don't consider my joining the real estate business a 180-degree shift from my profession. They're quite inter-related, the latter I find even more challenging. I hope I'm welcome here.

Again, hello! I know my joining here will be extremely informative on my part. I hope I can impart something, too.

Mabuhay!!!

Hey there! Welcome from the Phillipines. Are you considering real estate investment in the US or at home? What are things like there? Are many of the rules and regulations similar? Please share with us. I think it would be interesting for everyone!

Hi everyone. Sorry for the late reply. Thanks for welcoming me.

I am considering real estate in the Philippines, particularly in Mindanao- where Davao City and Samal Island are.

Real estate in the Philippines, particularly in Davao City, is in the upswing. In fact, for more or less a decade, it recorded last year as the highest in terms of sales and investment. Some foreigners, though, don't like the laws here in real estate, particularly that which states that foreigners are not allowed to own any real property here (except a condominium). Any property bought by them should be titled under the name of their Filipino espouse. Other foreigners, however, are buying properties here despite these laws. They just love it here, especially the beachfront properties and those which are overlooking Davao Gulf.

Thank you everyone!

I am residing here in Davao City. I used to focus solely on architecture (designing homes and other buildings) and construction management (managing and monitoring the implementation of what's designed). However projects got rare, so i decided to simultaneously venture into real estate (selling), which is just recently, not only in Davao City but even in nearby areas (like Samal Island or General Santos City - known as tuna capital in Philippine south).

I wish you could visit Davao City one of these days and see why it's considered as one of the retirement havens in the Philippines and Southeast Asia. You have to see developments like Villa de Mercedes, Mountain Haven and Las Terrazas which have gulf-city-and-mountain views and the upcoming Kembali Coast and be, well, amazed.

Anyway, that would be all for now. Thanks very much for the warm welcome. I shall post the laws on Philippine real estate later.

Hi once again.

For the complete information of everybody (particularly to biggerpro and flipper), I have provided hereunder the conditions governing the right to own real estate (land and all buildings annexed to the land and all interests thereon) in the Philippines as defined by our Constitution and other pertinent statutes :
1. Only Filipino citizens and corporations and partnerships at least 60% of the capital of which is owned by Filipinos are entitled to acquire and own land in the Philippines.
2. As exemption to the general rule, foreign acquisition of real estate in the Philippines is allowed in the following cases:
2.1 Foreigners who acquired land before the effectivity of the 1935 Constitution may retain ownership of such land.
2.2 Foreigners may acquire land in the Philippines if the acquisition is by hereditary succession, provided they are legal heirs.
2.3 Foreigners may own not more than 40% of the total number of units in a condominium corporation.
2.4 Under BP 185, a natural born Filipino who became an alien can acquire not more than 1000 square meter urban land and not more than 1 hectare (10,000 square meters) rural land.
3. A Filipina who marries a foreigner retains her Philippine citizenship (unless by her act of omission she is deemed under the law to have renounced her Philippine citizenship) and may therefore acquire land
in the Philippines.
4. Former Filipino citizens can retain ownership of the property acquired at the time of their Philippine citizenship. After the loss of their Philippine citizenship, they cannot subsequently acquire another land by hereditary succession; they may own houses but the land can only be leased by them.
5. Filipinos who contracted to buy real estate on installment basis and subsequently lost their Philippine citizenship before the properties were fully paid can no longer have the title be issued in their names.

In short, by law, foreigners can only own condominium units through a Condominium Certificate of Title (CCT). All foreigners are legally prohibited from directly owning any form of real estate (land) property with an Original Certificate of Title (OCT) and/or Transfer Certificate of Title. However, a foreigner with a Filipino husband/wife may buy properties in the Philippines but ownership shall be placed in the name of the Filipino espouse as a form of paraphernal property.

Note: If anybody finds certain conflicts in above clauses, I will not be able to explain to you why. Above conditions form part of the many governing laws on the Philippines.

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