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Leasing land

Discussion in '☋ Expat Section ☋' started by SurfinUSA, Mar 15, 2011.

  1. SurfinUSA

    SurfinUSA DI Senior Member

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    Are the often heard about 25 year (plus extension?) land leases worth the paper they're written on?

    I've been married to a Filipina for ten years now, so I'm not looking to get around the foreigner can't own land law. I just have an idea that'd require some land and I think I'd rather investigate leasing it rather than owning it.


    :cool:
     
  2. Knowdafish

    Knowdafish DI Forum Luminary

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    As in any contract, the integrity of those in the contract, are as important, if not more important, than the actual contract. People can say, do, and write anything, but them living up to it is another story.
     
  3. OP
    OP
    SurfinUSA

    SurfinUSA DI Senior Member

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    Well that's the point of my question isn't it? Do the courts side with any crybaby when it's foreigner vs a Filipino who has changed his mind about what's in the lease?

    If the wording on the contract spells out the details, then anyone trying to go against the contract shouldn't even have a case.
     
  4. Rhoody

    Rhoody DI Forum Luminary

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    well, not about a lot specifically, but each local can file a case against you, even he has no relation to you whatsoever. just because he/she likes to do so and expects any benefit....
    Until the real case comes to court (or is dismissed) you will have spent some thousand dollars and don't even know for what...
     
  5. shadow

    shadow DI Forum Luminary

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    The lease is as good as the people involved, plus the attorney who draws up the contract. It may depend somewhat on what you do with the property. If you lease it to grow corn, no problems. But if you lease land for P1000/month and build a 20 million peso house on it, you should expect problems.

    We are 8 years into a 10 year lease, and will likely rewrite the lease for 25 years. No problems whatsoever.

    Larry
     
  6. OP
    OP
    SurfinUSA

    SurfinUSA DI Senior Member

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    I don't see the difference in what I'd do with the land as long as the contract says it's mine to use. Even if I discovered gold on the land literally or figuratively, as long as I've got the rights to it.

    Otherwise what's the point of a contract? That's like buying a house for one price, then the original seller wanting more money for it later on just because the value has gone up.

    I know of a situation in the Dgte area where the foreigner leased the land to build on, then shortly afterwards the landowner decided he wanted to sell the land!

    Well I'll just talk to an attorney when I get back.
     
  7. shadow

    shadow DI Forum Luminary

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    Well, if you can't see the difference, then I would strongly suggest you NOT DO IT!!!

    Larry
     
  8. firefly

    firefly DI Senior Member

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    About 20 years ago there was a law in the Philippines that foreign tourists who where accused gave the right to have a court hearing within 24 hours.
    This was to protect foreign tourists from being held in the country for no reason.
    I don't know if this law is still in place.
     
  9. OP
    OP
    SurfinUSA

    SurfinUSA DI Senior Member

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    Thanks, but not very encouraging none the less.

    I'll just talk to a lawyer before I do anything. I wasn't going to rely entirely on replies I got here of course...
     
  10. shadow

    shadow DI Forum Luminary

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    Yes, many lawyers will draw you any kind of lease you want and swear by it, legal or not.

    Maybe this will help, out of my personal collection;

    LEASE OF RURAL AND URBAN LANDS

    SECTION 1. - General Provisions

    Art. 1646. The persons disqualified to buy referred to in Articles
    1490 and 1491, are also disqualified to become lessees of the things
    mentioned therein. (n)



    Art. 1490. The husband and the wife cannot sell property to each other, except:
    (1) When a separation of property was agreed upon in the marriage settlements; or
    (2) When there has been a judicial separation or property under Article 191. (1458a)
    Art. 1491. The following persons cannot acquire by purchase, even at a public or judicial auction, either in person or through the mediation of another:
    (1) The guardian, the property of the person or persons who may be under his guardianship;
    (2) Agents, the property whose administration or sale may have been entrusted to them, unless the consent of the principal has been given;
    (3) Executors and administrators, the property of the estate under administration;
    (4) Public officers and employees, the property of the State or of any subdivision thereof, or of any government-owned or controlled corporation, or institution, the administration of which has been intrusted to them; this provision shall apply to judges and government experts who, in any manner whatsoever, take part in the sale;
    (5) Justices, judges, prosecuting attorneys, clerks of superior and inferior courts, and other officers and employees connected with the administration of justice, the property and rights in litigation or levied upon an execution before the court within whose jurisdiction or territory they exercise their respective functions; this prohibition includes the act of acquiring by assignment and shall apply to lawyers, with respect to the property and rights which may be the object of any litigation in which they may take part by virtue of their profession.
    (6) Any others specially disqualified by law. (1459a)


    Art. 1647. If a lease is to be recorded in the Registry of Property,
    the following persons cannot constitute the same without proper
    authority: the husband with respect to the wife's paraphernal real
    estate, the father or guardian as to the property of the minor or
    ward, and the manager without special power. (1548a)

    Art. 1648. Every lease of real estate may be recorded in the Registry
    of Property. Unless a lease is recorded, it shall not be binding upon
    third persons. (1549a)

    Art. 1649. The lessee cannot assign the lease without the consent of
    the lessor, unless there is a stipulation to the contrary. (n)

    Art. 1650. When in the contract of lease of things there is no
    express prohibition, the lessee may sublet the thing leased, in whole
    or in part, without prejudice to his responsibility for the
    performance of the contract toward the lessor. (1550)

    Art. 1651. Without prejudice to his obligation toward the sublessor,
    the sublessee is bound to the lessor for all acts which refer to the
    use and preservation of the thing leased in the manner stipulated
    between the lessor and the lessee. (1551)

    Art. 1652. The sublessee is subsidiarily liable to the lessor for any
    rent due from the lessee. However, the sublessee shall not be
    responsible beyond the amount of rent due from him, in accordance
    with the terms of the sublease, at the time of the extrajudicial
    demand by the lessor.
    Payments of rent in advance by the sublessee shall be deemed not to
    have been made, so far as the lessor's claim is concerned, unless
    said payments were effected in virtue of the custom of the place.
    (1552a)

    Art. 1653. The provisions governing warranty, contained in the Title
    on Sales, shall be applicable to the contract of lease.

    In the cases where the return of the price is required, reduction
    shall be made in proportion to the time during which the lessee
    enjoyed the thing. (1553)

    SECTION 2. - Rights and Obligations of the Lessor and the Lessee

    Art. 1654. The lessor is obliged:
    (1) To deliver the thing which is the object of the contract in such
    a condition as to render it fit for the use intended;
    (2) To make on the same during the lease all the necessary repairs in
    order to keep it suitable for the use to which it has been devoted,
    unless there is a stipulation to the contrary;
    (3) To maintain the lessee in the peaceful and adequate enjoyment of
    the lease for the entire duration of the contract. (1554a)

    Art. 1655. If the thing leased is totally destroyed by a fortuitous
    event, the lease is extinguished. If the destruction is partial, the
    lessee may choose between a proportional reduction of the rent and a
    rescission of the lease. (n)

    Art. 1656. The lessor of a business or industrial establishment may
    continue engaging in the same business or industry to which the
    lessee devotes the thing leased, unless there is a stipulation to the
    contrary. (n)

    Art. 1657. The lessee is obliged:
    (1) To pay the price of the lease according to the terms stipulated;
    (2) To use the thing leased as a diligent father of a family,
    devoting it to the use stipulated; and in the absence of stipulation,
    to that which may be inferred from the nature of the thing leased,
    according to the custom of the place;
    (3) To pay expenses for the deed of lease. (1555)

    Art. 1658. The lessee may suspend the payment of the rent in case the
    lessor fails to make the necessary repairs or to maintain the lessee
    in peaceful and adequate enjoyment of the property leased. (n)

    Art. 1659. If the lessor or the lessee should not comply with the
    obligations set forth in Articles 1654 and 1657, the aggrieved party
    may ask for the rescission of the contract and indemnification for
    damages, or only the latter, allowing the contract to remain in
    force. (1556)

    Art. 1660. If a dwelling place or any other building intended for
    human habitation is in such a condition that its use brings imminent
    and serious danger to life or health, the lessee may terminate the
    lease at once by notifying the lessor, even if at the time the
    contract was perfected the former knew of the dangerous condition or
    waived the right to rescind the lease on account of this condition.
    (n)

    Art. 1661. The lessor cannot alter the form of the thing leased in
    such a way as to impair the use to which the thing is devoted under
    the terms of the lease. (1557a)

    Art. 1662. If during the lease it should become necessary to make
    some urgent repairs upon the thing leased, which cannot be deferred
    until the termination of the lease, the lessee is obliged to tolerate
    the work, although it may be very annoying to him, and although
    during the same, he may be deprived of a part of the premises.
    If the repairs last more than forty days the rent shall be reduced in
    proportion to the time - including the first forty days - and the
    part of the property of which the lessee has been deprived.
    When the work is of such a nature that the portion which the lessee
    and his family need for their dwelling becomes uninhabitable, he may
    rescind the contract if the main purpose of the lease is to provide a
    dwelling place for the lessee. (1558a)

    Art. 1663. The lessee is obliged to bring to the knowledge of the
    proprietor, within the shortest possible time, every usurpation or
    untoward act which any third person may have committed or may be
    openly preparing to carry out upon the thing leased.
    He is also obliged to advise the owner, with the same urgency, of the
    need of all repairs included in No. 2 of Article 1654.
    In both cases the lessee shall be liable for the damages which,
    through his negligence, may be suffered by the proprietor.
    If the lessor fails to make urgent repairs, the lessee, in order to
    avoid an imminent danger, may order the repairs at the lessor's cost.
    (1559a)

    Art. 1664. The lessor is not obliged to answer for a mere act of
    trespass which a third person may cause on the use of the thing
    leased; but the lessee shall have a direct action against the
    intruder.
    There is a mere act of trespass when the third person claims no right
    whatever. (1560a)

    Art. 1665. The lessee shall return the thing leased, upon the
    termination of the lease, as he received it, save what has been lost
    or impaired by the lapse of time, or by ordinary wear and tear, or
    from an inevitable cause. (1561a)

    Art. 1666. In the absence of a statement concerning the condition of
    the thing at the time the lease was constituted, the law presumes
    that the lessee received it in good condition, unless there is proof
    to the contrary. (1562)

    Art. 1667. The lessee is responsible for the deterioration or loss of
    the thing leased, unless he proves that it took place without his
    fault. This burden of proof on the lessee does not apply when the
    destruction is due to earthquake, flood, storm or other natural
    calamity. (1563a)

    Art. 1668. The lessee is liable for any deterioration caused by
    members of his household and by guests and visitors. (1564a)

    Art. 1669. If the lease was made for a determinate time, it ceases
    upon the day fixed, without the need of a demand. (1565)

    Art. 1670. If at the end of the contract the lessee should continue
    enjoying the thing leased for fifteen days with the acquiescence of
    the lessor, and unless a notice to the contrary by either party has
    previously been given, it is understood that there is an implied new
    lease, not for the period of the original contract, but for the time
    established in Articles 1682 and 1687. The other terms of the
    original contract shall be revived. (1566a)

    Art. 1671. If the lessee continues enjoying the thing after the
    expiration of the contract, over the lessor's objection, the former
    shall be subject to the responsibilities of a possessor in bad faith.
    (n)

    Art. 1672. In case of an implied new lease, the obligations
    contracted by a third person for the security of the principal
    contract shall cease with respect to the new lease. (1567)

    Art. 1673. The lessor may judicially eject the lessee for any of the
    following causes:
    (1) When the period agreed upon, or that which is fixed for the
    duration of leases under Articles 1682 and 1687, has expired;
    (2) Lack of payment of the price stipulated;
    (3) Violation of any of the conditions agreed upon in the contract;
    (4) When the lessee devotes the thing leased to any use or service
    not stipulated which causes the deterioration thereof; or if he does
    not observe the requirement in No. 2 of Article 1657, as regards the
    use thereof.
    The ejectment of tenants of agricultural lands is governed by special
    laws. (1569a)

    Art. 1674. In ejectment cases where an appeal is taken the remedy
    granted in Article 539, second paragraph, shall also apply, if the
    higher court is satisfied that the lessee's appeal is frivolous or
    dilatory, or that the lessor's appeal is prima facie meritorious. The
    period of ten days referred to in said article shall be counted from
    the time the appeal is perfected. (n)

    Art. 1675. Except in cases stated in Article 1673, the lessee shall
    have a right to make use of the periods established in Articles 1682
    and 1687. (1570)

    Art. 1676. The purchaser of a piece of land which is under a lease
    that is not recorded in the Registry of Property may terminate the
    lease, save when there is a stipulation to the contrary in the
    contract of sale, or when the purchaser knows of the existence of the
    lease.
    If the buyer makes use of this right, the lessee may demand that he
    be allowed to gather the fruits of the harvest which corresponds to
    the current agricultural year and that the vendor indemnify him for
    damages suffered.
    If the sale is fictitious, for the purpose of extinguishing the
    lease, the supposed vendee cannot make use of the right granted in
    the first paragraph of this article. The sale is presumed to be
    fictitious if at the time the supposed vendee demands the termination
    of the lease, the sale is not recorded in the Registry of Property.
    (1571a)

    Art. 1677. The purchaser in a sale with the right of redemption
    cannot make use of the power to eject the lessee until the end of the
    period for the redemption. (1572)

    Art. 1678. If the lessee makes, in good faith, useful improvements
    which are suitable to the use for which the lease is intended,
    without altering the form or substance of the property leased, the
    lessor upon the termination of the lease shall pay the lessee one-
    half of the value of the improvements at that time. Should the lessor
    refuse to reimburse said amount, the lessee may remove the
    improvements, even though the principal thing may suffer damage
    thereby. He shall not, however, cause any more impairment upon the
    property leased than is necessary.
    With regard to ornamental expenses, the lessee shall not be entitled
    to any reimbursement, but he may remove the ornamental objects,
    provided no damage is caused to the principal thing, and the lessor
    does not choose to retain them by paying their value at the time the
    lease is extinguished. (n)

    Art. 1679. If nothing has been stipulated concerning the place and
    the time for the payment of the lease, the provisions or Article 1251
    shall be observed as regards the place; and with respect to the time,
    the custom of the place shall be followed. (1574)

    OOps, too long. See next post


    Larry
     
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