This summary is the Supreme Court Decision dated June 22, 2009.
(The names below are not their real name.)
1. Foreign Husband : Benz
2. Filipino Wife : Rose
3. Married : June 30, 1988
4. Petitioner : Lessee
5. Situation
They bought/improved a parcel of land in Boracay Island in 1989 under the name of Rose using Benz's money. It eventually became a resort and get all the business permit using Rose's sister's name. In June, 1992, Rose executed a Special Power of Attorney (SPA) in favor of Benz authorizing the latter to maintain, sell, lease, and sub-lease and otherwise enter into contract with third parties with respect to their Boracay property. In July, 1992, Rose leased out the property for a period of 25 years. It was duly notarized. Therefore, the lessee started the resort businesses. Rose ran away with another guy.
Benz claimed against Rose and Lessee that the lease agreement is void and null since there was no consent from him.
6. Regional Trial Court (RTC) declared the agreement null and void in 1994 since lessee didn't answer to the court. However, Court Appeal (CA) ordered RTC to allow lessee to file his answer. He said that it's owned by Rose, so he thought there was no problem with the contract. Besides, there was a signature of Benz on the Witness portion.
7. RTC considered the property as community property of Benz and Rose. Although the Agreement was evidenced by a public document, the trial court refused to consider the alleged participation of Benjamin in the questioned transaction primarily because his signature appeared only on the last page of the document and not on every page thereof.
8. In its December 19, 2003 Decision, the CA affirmed the conclusions made by the RTC. It said that the Agreement should have used the phrase with my consent instead of signed in the presence of. It also recognized of SPA.
9. Supreme Court (SC) Decision
Aliens, whether individuals or corporations, have been disqualified from acquiring lands of the public domain. The rule is clear and inflexible: aliens are absolutely not allowed to acquire public or private lands in the Philippines, save only in constitutionally recognized exceptions.
In light of the foregoing jurisprudence, we find and so hold that Benz has no right to nullify the Agreement of Lease between Rose and petitioner. Benz, being an alien, is absolutely prohibited from acquiring private and public lands in the Philippines. Considering that Rose appeared to be the designated vendee in the Deed of Sale of said property, she acquired sole ownership thereto. This is true even if we sustain Benz claim that he provided the funds for such acquisition. By entering into such contract knowing that it was illegal, no implied trust was created in his favor; no reimbursement for his expenses can be allowed; and no declaration can be made that the subject property was part of the conjugal/community property of the spouses. In any event, he had and has no capacity or personality to question the subsequent lease of the Boracay property by his wife on the theory that in so doing, he was merely exercising the prerogative of a husband in respect of conjugal property.To sustain such a theory would countenance indirect controversion of the constitutional prohibition. If the property were to be declared conjugal, this would accord the alien husband a substantial interest and right over the 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
In fine, the Agreement of Lease entered into between Rose and petitioner cannot be nullified on the grounds advanced by Benjamin. Thus, we uphold its validity.
Notes: Yes, foreigners cannot own land
Notes: How long did it take? Are you young enough to go through this legal dispute? Hmmm.
5. Situation
They bought/improved a parcel of land in Boracay Island in 1989 under the name of Rose using Benz's money. It eventually became a resort and get all the business permit using Rose's sister's name. In June, 1992, Rose executed a Special Power of Attorney (SPA) in favor of Benz authorizing the latter to maintain, sell, lease, and sub-lease and otherwise enter into contract with third parties with respect to their Boracay property. In July, 1992, Rose leased out the property for a period of 25 years. It was duly notarized. Therefore, the lessee started the resort businesses. Rose ran away with another guy.
Benz claimed against Rose and Lessee that the lease agreement is void and null since there was no consent from him.
6. Regional Trial Court (RTC) declared the agreement null and void in 1994 since lessee didn't answer to the court. However, Court Appeal (CA) ordered RTC to allow lessee to file his answer. He said that it's owned by Rose, so he thought there was no problem with the contract. Besides, there was a signature of Benz on the Witness portion.
7. RTC considered the property as community property of Benz and Rose. Although the Agreement was evidenced by a public document, the trial court refused to consider the alleged participation of Benjamin in the questioned transaction primarily because his signature appeared only on the last page of the document and not on every page thereof.
8. In its December 19, 2003 Decision, the CA affirmed the conclusions made by the RTC. It said that the Agreement should have used the phrase with my consent instead of signed in the presence of. It also recognized of SPA.
9. Supreme Court (SC) Decision
Aliens, whether individuals or corporations, have been disqualified from acquiring lands of the public domain. The rule is clear and inflexible: aliens are absolutely not allowed to acquire public or private lands in the Philippines, save only in constitutionally recognized exceptions.
In light of the foregoing jurisprudence, we find and so hold that Benz has no right to nullify the Agreement of Lease between Rose and petitioner. Benz, being an alien, is absolutely prohibited from acquiring private and public lands in the Philippines. Considering that Rose appeared to be the designated vendee in the Deed of Sale of said property, she acquired sole ownership thereto. This is true even if we sustain Benz claim that he provided the funds for such acquisition. By entering into such contract knowing that it was illegal, no implied trust was created in his favor; no reimbursement for his expenses can be allowed; and no declaration can be made that the subject property was part of the conjugal/community property of the spouses. In any event, he had and has no capacity or personality to question the subsequent lease of the Boracay property by his wife on the theory that in so doing, he was merely exercising the prerogative of a husband in respect of conjugal property.To sustain such a theory would countenance indirect controversion of the constitutional prohibition. If the property were to be declared conjugal, this would accord the alien husband a substantial interest and right over the 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
In fine, the Agreement of Lease entered into between Rose and petitioner cannot be nullified on the grounds advanced by Benjamin. Thus, we uphold its validity.
Notes: Yes, foreigners cannot own land
Notes: How long did it take? Are you young enough to go through this legal dispute? Hmmm.