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All Jurisprudence based

0 tracked cards Civil Law and Land Titles and Deeds

A parcel of land is in Cebu, titled in the name of a Filipino seller. The seller transfers the land to Aurelia Holdings, Inc., a Philippine corporation that is 70% Filipino-owned and 30% foreign-owned. The deed of sale is executed in Madrid, Spain as a "public deed" under Spanish law and is not notarized or acknowledged in the Philippines; the parties intend to register the sale in the Philippines upon the seller’s return. (a) Identify the controlling doctrine and the primary rule it establishes for lands situated in the Philippines. (b) Under this doctrine, is Aurelia Holdings able to acquire title to the land by the Madrid-deed? Explain briefly why or why not, focusing on the law governing transfer and the status of land ownership by aliens, including through corporations. (c) If the same Madrid-deed were presented for registration in the Philippines, what is the likely result and why?

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Anti-dummy rule; Even with a Filipino-owned corporation, foreign influence is prohibited unless the true ownership is disclosed and the ownership shares meet Philippine requirements at the time of transfer. Foreign-execution rule; A deed executed abroad is always void for purposes of transfer of Philippine land unless it is executed within the Philippines. Lex loci contractus; The contract’s validity is determined by Spanish law since the deed was executed in Spain, so the Madrid-deed would pass title regardless of Philippine restrictions, and registration would be allowed. Lex rei sitae; Lands in the Philippines are governed by Philippine law, including alien-ownership limits. A corporation may own land only if at least 60% of its capital is Filipino-owned; Aurelia is 70% Filipino-owned, so the Madrid-deed could transfer title, and registration would likely be approved.

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