Indeed, you heard right. This is the “saving grace” for many foreigner/Filipino couples who want to buy property together here in the Philippines and have an assurance that the “foreigner ‘ half of the couple can continue living in the couple’s property.
Notice something important that I didn’t say above, though. I didn’t call it the couple’s “joint” property. Foreigners to think they have a lot more share in their marital property than they actually do.
In the US, for example, it’s very common for a married couple to own property in “joint tenancy” or as “tenants in common”, typically with “right of survivorship”. Loosely translated from legal-eze to English
(remember I am a lay person and not a lawyer, if you think any of this applies to you directly, I urge you to seek competent advice, this article if for general information and designed to provoke thought, not provide answers)
this means that should either spouse die while the other survives, then the dying partner’s share transfers almost automatically to the survivor, who then owns 100%of the property until her/his death, when the property will normally be passed to party or parties of choice, typically by means of a will. If you own property in the US you typically can leave it to anyone you chose, without regard to children, parents, etc. We’ve all heard of children being cut out of their parent’s will, etc.
photo credit: wellohorld
Don’t try to translate that to Philippine law. It will get you in trouble. Here in the Philippines the law operates much differently than many are used to. Using our common example of Fil-Foreign family, let’s look at what happens when the Filipino partner passes away. (nothing really happens property-wise when the foreigner partner passes, since s/he never owned the property to begin with).
Wills are much less common here than in many developed countries. But they certainly are used. But when real property is involved, there is a basic underlying law which takes precedence over any language in a will. Philippine law stipulates a reserved portion of all estates for compulsory heirs
Certain parts of the estate of a deceased Filipino citizen cannot be freely disposed of because Philippines law reserves them for the “compulsory heirs”. The “compulsory heirs” are classified as:
- Primary – legitimate children and/or descendants
- Secondary – legitimate parents and/or descendants; illegitimate parents
- Concurring – surviving spouse; illegitimate children and/or descendants
This is one of the reasons I advise a lot of caution and competent legal advice before rushing off to buy property here. Note, in the three levels of “compulsory heirs” the surviving spouse comes, at best, on the third level of heirs to be endowed. The legitimate children of the marriage, the legitimate parents, illegitimate parents (a common occurrence here) all come first and the surviving spouse has to battle it our on level three with illegitimate children who may show up.
Here’s a typical example case: If a desceased is survived by her husband and four legitimate children, ½ of her hereditary estate is reserved equally between the children (1/8 each) whilst the husband takes the same share as one legitimate child i.e. 1/8. This leaves 3/8 of the estate which can be freely disposed of in accordance with her will.
The free portion of a hereditary estate can be freely willed to any person or class of person with the capacity to succeed under the Civil Code, even if that person is already a compulsory heir, with a prescribed share.
OK, so that means that the surviving spouse gets 1/8 under the compulsory law, but the wife could have made a will which gives him the ‘left over’ 3/8 as well … totaling up to one half, and the children have the other half (which he is likely the legal guardian of), so why worry?
One good reason to worry. A foreigner can inherit from a Filipino spouse, so long as he or she inherits from an intestate estate,that is, one with no will. Non-Filipino citizens, who can inherit land by hereditary or intestate succession (without a will) but not by testamentary succession (with a will). That 3/8 share we were talking about? It can’t be willed to the surviving spouse.
Keep one other thing in mind … the foreigner who inherits in this way is legally the owner under Philippine law, but he/she can not sell or bequeath to another foreigner. In other words the foreign ownership can not be a chain. the property does belong to the surviving foreign spouse but he/she can’t dispose of it at will. It can only be sold or bequeathed to a natural-born Filipino.
I already have a headache, myself. I think you can get enough of a taste here to see why I feel the property laws, especially with ‘mixed’ couples here are very convoluted. I see couple all the time who have invested their life savings and it’s all at risk because of children the wife had previously or even a case where the Filipino spouse’s father never married her mother and disappeared. If the man is still alive and chooses to, he can show up and demand his share of her estate … in front of the woman’s surviving spouse. If he has children, they can show up and claim their share of their father’s share. They may not prevail, but it will cost a small fortune in legal costs and months or years in court to defend against their claim. How strange is that?
Buy property if you chose to … my spouse and I are going to buy some ourselves, but be darn sure you don’t make it the cornerstone of your estate … it’s a place to live, not an investment, because neither the foreigner nor the Filipino owner has much control over the distribution … and these cases can go on for years.
Note: This article was previously published in 2008. I have edited it, fixed a number of typos, and also want to draw your attention to the comments … Atty. Claudette, for example, has very kindly taken the time to point out some errors, inaccuracies or obtuse explanations, so be sure you read the contents as well, there is typically a lot to learn there.
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That sounds like a Monty Python skit! Unbelievable! Thanks for the warning.
Indeed that’s a good analogy, John … I wonder if that reference is in Philippine law textbooks … step one, watch all the Monty Python movies *smile*.
Thanks for reading … I was afraid most people wouldn’t … There’s a number of other “gotchas” I left out to try to cut down the length a bit.
I’ve gotten a lot of static over the years from folks who think things work the same in the Philippines as at ‘home” and can’t wait to dump their life savings into a property because they are convinced that “owning your home is an investment”.
As the song says, “It ain’t necessarily so.”
Sound advice, Philly.
We can’t forget the residency requirements of the non-Filipino spounse, though. Foreigners not holding resident visas are totally out of luck, as are those holding resident visas but have not completed five years residency in the Phils.
Plenty of “extended visitor visa” ex-pats planning on property ownership via inheritence get a rude awakening (usually at the hands of a disgruntled or gold-digging member of the extended family)!
Always wondered why there was such turmoil with deeds, property holdings, etc. until I learned of the many issues generated by local law. Of course, I haven’t even come close to learning or hearing of them all!
Yes, I probably should have thrown that in as well, Paul … there are a number of things that foreigners think they can do that are not open to non-permanent residents.
This whole mantra about the value of buying property that someof the expat community spends much of their time chanting is one of the chief reasons I don’t spend much time in some of the online communities I used to frequent. There are just so many people who enjoy living in a dream world….
Thanks again for coming by, Paul, and for your valuable contributions.
@lvd: Before I approve your comment, can you tell me why you made it? You basiclaly restated exactly as I said, except you left out some important details that prevent inheritance from being automatic. What is your interest in living in the Philippines or in my blog? Not just looking for a link to your blogspot blog, are you?
Hi Philly: If I understand this right, a foreign husband can only inherit if there is no will? I assume a foreign child can inherit as primary – with or without a will? No wonder it is not common here to prepare a will.
@Ellen: Hi Ellen. We can quickly get into “lawyer territory” here, that’s for sure. But indeed, it’s my understanding that under the constitution there are shares that spouse(s), children and parents _must_ have, regardless of what is writtne in a will, or not.
Indeed it does seem to cause wonderment as to why a married couple needs a will, becuase the surviving spouse isgoing to be entitled to part (but almost never all) the property in the deceased spouse’s name. That’s why the concept of a ‘clean title’, to me, seems a little lke words which have different meaning to folks from different countries … because even with the best researched title, the child of a previous owner, for example, can “pop up” out of the woodwork and claim a share, even years after the death. Myself, I have no answer. Everything is in my wife’s name and statistically, she should survive me (she’s 18 years my junior). If the cards were to fall the other way her property will be divided amongst me and the others who have a share by law and that will be that. I irritated a few people some months ago when I wrote an article or two on the fallacy of buying a home for ‘security’ … the folks who got upset didn’t like looking at the facts instead of their “feelings”. I have not changed my views.
In a way, it does make it sound very simple, as long as you don’t fool around and have lots of illegimate children – haha. The scary part that you mentioned is the child of a previous owner – are there no deadlines to making claims here?
Some cultures do not like discussing wills (i.e., the Chinese) because you are talking about death. I recall “forcing” a couple in Canada to prepare their will – more for estate planning and minimizing estate taxes, and lawyers tend to make it so complicated in order to charge exuberant fees. Accountants too, for that matter, but in this case, my services were free
.
@Ellen: Yeah the illegitimate children issue is not as far fetched as some people think. In most western societies. Although not legal and not offically condoned by the Church, “extra” famines are not uncommon here at all.
I’m not at all aware of a deadline for cliams … there may be one. We’re straying into legal professional territory. There are also laws like term limitations for mayors .. 6 years .. and last year a mayor was sworn in for his 17th year in a town in Zambales, by the provincial governor, so my confidence in such deadline laws offering any real protection isn’t high even if they do exist.
In most developed countries we are used to a product called ‘title insurance’, which, for a fee, will protect the buyer of land with life-long defense against claims raised after the sale. Last time I checked, China and the Philippines were the only two significant countries where title insurance is not available. I know there was talk about enabling legislation for title insurance a few months back, but I’m not aware of any actual progress.
I’ve never heard of title insurance in Canada. But there, when you buy property, it is SOP to do a title search, to see if there are any liens on the property. If none, then technically you are safe and to serve any future liens on the property related to previous owners, I would think, will have no grounds. Anyway, am not a lawyer, so who knows.
Thanks for replying and explaining best you could. I just told my husband about it, and I haven’t even finished my story, he said “so I have to kill you first”, and then I said you can’t inherit if there is a will, then he said “then I have to kill you fast”. Haha – the law here does make it sound so ludicrous.
@Ellen: Well title insurance appears to be a big business in Canada, exactly as it is in the US. I realize that the purpose of title insurance is not really clear to a lot of folks, so perhaps I shold aplify a bit. here’s a definition from a big Canadian insurance-selling site:
——————————
What is Title Insurance?
Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly premium.
Title insurance protects your ownership to the property and protects you against:
* Fraud – fraudulently obtained mortgages on your home
* Errors in surveys or other official public records
* Encroachments onto neighbouring properties
* Zoning infractions
* And many more known and unknown defects that could affect your ability to sell your property in the future.
Unlike house insurance, you only pay a one-time premium with no deductible. Title insurance covers all legal expenses related to restoring title, meaning that you do not have to take time off work and deal with the added stress needed to defend yourself.
———————–
The operative issue we are talking about here would be the last bulet “Other defects in title”.
A title search, by a reputable attorney is absolutley a recommended thing. However, even the most diligent attorney in the world can not find claims against a property that have not yet been made. Only David Copperfield coulddo this and I don’t have that much confidence in him, either
. If someone has a lien against the property recorded, then that’s what a title search should show up. But something that is unrecorded obviously can’t be seen.
So the title insurance would ‘kick in’ if that long-lost child or other relative from the past shows up and files suit against you. (this can happen easily in the US and other countries too, even though the inheritance laws may be different there) are a hundred ways someone _might_ feel s/he has an interest in a property and even thogh thye may not prevail in court, it’s the defending in court that could really ruin a person’s day.
Where I know of some people at real risk here in the Philippines are foreigners married to Filipinas who were once married and have received legal annulments. Often these get granted based on the belief the first husband is dead. If the owman owned property during that marriage, though, her husband at the time nquestionably owns half of it. Should he suddenly ‘be ressurected’ by miraculous means or otherwise, even though he is no longer the legal husband he still can at least argue he has a stake in the property. He may, in fact, lose in the end, but these cases can take years and years to grind through the court system here, causing untold amounts of money and most important to me, sabotaging piece of mind.
@Ellen: Hmm … do you have a personal food taster? If I were you I might be thinking of one
I’ve lived under a cloud like this for years, as I am certainly worth much more dead than alive, so it certainly pays me not to make my dear asawa angry … an excellent “hubby be good motivator” LoL Oh, and this is humor, folks, Mita reads these comments … Joke lang!
Hmmm, one time cost? Thanks for the information. I wonder if this insurance was part of our closing costs of buying our property, but can’t confirm. We’ve been away too long.
Hehehe – don’t worry, I am the cook, the banker and I take care of all the paperwork.
Philly:
Most Interesting article discussion. I’ve stopped dreaming!!
If there are no children, etc does the spouse inherit all?
ohn, “inherit asll” seems to be a rare concept. The husband’s parents, siblings, cousinso ther relatives all have a claim. You really need a lawyer on these issues. I guess I’m a very strange person becuase frankly when I go, I could care less.
Hello there, this is not a coment but I need your expertise. My Dad is American Citizen and he died 4 years ago. My Mom still alive & a Filipino Citizen did not want to became an American Citizen becuase she own a lot of properties in the Philippines. My 1st question is that since my Dad is American Citizen, Can he own properties in the Philippines? So when he died, all the properties that they own goes to my Mom since, my Mom is a Filipino Citizen & a sole ownership of all they own, Am I right? She did put my Dad name in the Deed or Title of all there propertiies because they are married. 2nd question My Mom does not want to divide the properties to her children yet because she still living, Can she do that?
Hi Rena,
Thanks for writing. I’m not sure I know all the answers on this, but I am pretty confident on what I am going to say … however, remember I am lay person and a foreigner at that, so do remember that you really need a Filipino attorney to give correct legal advice, if an issue comes up … you sure can’t rely on my advice. Also, if you do decide to use an attorney, ask around to find one who actually knows the property law and who works with real estate transactions regularly … my wife and I were going to do some title work involving changing around the shares of some property she owned along with her siblings and the guy we talked to didn’t seem to know anything beyond what he ha learned to pass the bar exam years back … not trying to insult him, but lawyers tend to be specialists just as doctors do.
Anyway, why I think you don’t have a problem now. If I read your question correctly, your Dad, and American was legally married (as in NSO-recorded marriage contract or something similar for legal proof) to your Mom who was then and still is a Filipino citizen. She acquired properties and put his name on the deeds as her spouse (a wide mover for anyone, by the way).
No your Dad never “owned” any properties, because as a foreigner he could not under the Philippine Constitution, but that point is completely moot now, he is no longer with us. As the legal spouse of you Mom he had a marital share of those properties. When he passed on, since they were still married, his share passed, undivided to his wife, so far as I know.
Today, since she is still with us, she effectively owns 100% of those properties as long as no one else’s name(s) are on any of the deeds.
When she passes, if there are no other legal complications, the children of the couple, any children from a previous marriage, and then any other entitles relatives if there be any, inherit shares as specified under the law. The inheritors can sell, transfer, etc, their shares, or the properties can be sold and the cash divided.
If your Mom has ideas other than the standard legal distribution, she can deed properties while alive to the people she wants to inherit them and maintain what’s called a tenancy for life … the properties would effectively still be hers while she lives but then would go automatically to the people (don’t have to be her children, while she lives she can distribute her property as she chooses) she nominates now.
My dear mother-in-law (still with us, thankfully) did this very thing. She owned some farm properties. She deeded the properties to her children .. one tract of land is shared by two sisters, one tract shared among four siblings, etc.). That way, when she does pass, the will be no squabbling and no extensive legal wrangling.
Hope this helps clarify things for you … but remember it is not legal advice. Be well.
Hi Philly, thank you for the information that you gaved me with prompt response. Anyway I guess she just need to talk to a lawyer, the bad thing about it that she live in Hawaii not in the Philippines. Do you know by any chance and attorney in the Phiippines that can handle this matter? or maybe a website that I can go and check it out?
Thanks again, Rena
Ha, now you asked the million-dollar question, Rena … or at least million Peso question. If I knew a lawyer here in the Philippines who ‘a’, was really competent in property matters and ‘b’., was willing to deal with both Filipino and forigner clients, I would be partnered up with him/her so fast it would make your head swim.
My [personal expereince is of course, just one man’s expereince, but in 10 yeeras now of attempring to deal with a numbe rof small legal matters I have not found an attorney who wnats to deal with ‘foreigner-related’ issues. Ig there are any attornies reading this who want to prove me wrong, here’s you chance and your first referral as well … contact Rena’s Mom through Rena (just click on her name and the email will go to her) and help the lady get her property affairs in order. …
best I can do for you, ma’am Rena. And if you do find a lawyer who handles this well, please wrute back and recommend the attorny to us.
hi
I have inherited a land from my parents in the Philippines and I am thinking of building a holiday house there in the near future. However, I am not a Filipino citizen anymore and quite reluctant to spend money because I want to make sure first that no one can take this house from me as soon as it’s done. I have a sister and brother who still live there.
I have enquired from a solicitor in my adopted country and found out that the laws here is completely different from the Philippines.
What do I do to ensure that the property given to me is indeed mine and no one has the right to take ownership of this except me and my husband. I have a will from my father stating that the land has been given to me, but I read in your blog that the will is not enough most especially when it involves Philippine land ownership.
thanks
MC
Thanks for writing in. As you have already determined, these things are never easy, and as you already seem to realize (but for the benfit of others who happen upon this), I am not a lawyer/solicitor. You need one for competent legal advice.
As regards you situation. yes the laws of property and inheritance in the UK are vastly different from the laws in the Philippines. But that’s ok though, because from what you have told me, it’s all good for you.
Omce a Fuilipino, always a Filipino (well, almost). Under the laws of the Philippines you are not a foreigner, you are a former Filipino. You therefore have the right to own property in the Philipp9iines in youtr own name, no matter how it was legally conveyed. The difference that applies to a former Filipino is that there is a size and quantity limit … without know what “a land” is from your message I don’t know if you fall within those limits, but you certainly have the right to land. You also have the right to unrestricted entry.exit and livingin the Philippines as well .. as long as you were originally a citizen of the Philippines.
When your parents passed there were several siblings, from what you have written. Each of those siblings has (normally) an equal share in yhe property that your parents held. So what your interests and your brothers and sister’s interests are are between you and them and if there is a problem there, it’s relatively simple for a Filipino lawyer to deal with. I’m sure the will has some legal bearing as well.
The biggest problem you have in my personal view is, building a house and then finding out someone has “invited themselves in” while you are away. I hate to have to bring this up as a foreigner … Filipinos often try to ignore this issue … so here the ‘bastos” foreigner will lay the cards on the table … “informal settlement”, otherwise known as “squatting” is a big problem here and you will not get much help from the law. Houses that are not lived in are at risk. You need to think this through before you take action .. will you have another family member live there while you are away, or? or? It’s something that need thoughtful planning.
Hope this will help a bit.
Hello there Philly, thank you for al information regarding this weary strange law. I wonder if you can help me clarifying my and my brother’s rights? Our father, European, has past away and 9 months ago he married a Philippines women. Over the past years he purchase property in Phillipines in her name, if I understand this right. There is now will, we have just met the women and she is very lovely. We want everything to be right and wonder now how to proceed?
Best LE
Hi Lars,
Thanks for writing. I’m sorry to hear that your dad passed away. I am not clear on what help you want, however. According to what you have said, your father was not a Filipino, and was not married to this woman whom he helped buy property? If you are talking real property, that is land, it’s likely your father owned nothing … remember a non-Filipino can not own property. If married he has a right of survivorship for property, meaning he might have been able to inherit from his spouse, but I don’t believe he has any other rights, as it seems he predeceased the wife. I really can’t say much more though, you most likely need a lawyer … sorry, but I wouldn’t know anything else to advise.
Sorry, but this is beyond my qualifications.
Dave,
I admire how you tried to explain the legalese of it all, and you were right about it .. at least up to a certain point. :p But anyway I still think your comprehension of it was remarkable… let me explain something though.
In the philippines you can either inherit testate (through a will) or intestate (without a will). Regardless of whether it is testate or intestate, there will ALWAYS be the “compulsory heirs” – spouse, legitimate and illegitimate children. The free portion after all the compulsory heirs have been paid off is the subject of disposal when a will is drafted. You can never leave out a compulsory heir.. that is what makes them compulsory. Anything given during the life of the testator which prejudices a compulsory heir is subject to collation (they are brought back to the estate) to ensure that the compulsory heirs are given what is rightfully theirs.
THUS, in the final analysis, a foreigner-spouse who buys a property and has it in the name of the filipino-spouse will always inherit a portion of the property (estate). Infact, depending on the number of children, he/she can inherit as much as half of the share of the estate and not necessarily just equal the share of a legitimate child. Usually, it becomes a question of who are still living.
Can the children of the foreigner-spouse inherit from the filipino-spouse, if the foreigner-spouse predeceased the filipino-spouse? That’s a good question.. i think it may be possible by representation.. they take the place of their father in the inheritance.
Wow! Thank you so much for both your kind words and for pointing out and clarifying my errors. This is indeed a thorny question and one most foreigners 9at least US folks like me) have little or no familiarity with .. since the the US, children,for example, normally have no automatic claim to property … it’s uncommon, but perfectly legal to leave children out of an inheritance completely … or divide an inheritance unequally between sibling … and if the will is competently written there’s little chance of successfully contesting it.
Your explanation helped a lot, I appreciate it.
Assume the ownership of a Condominium by a foreigner or Philipine National is not effected by these “property” inhertance laws as you don’t actually own any land in a Condo Purchase ?
Yes, that would be correct, for two reasons. A condo is not real property and includes no ownership of land.
Dear Philly
I have just been reading through all your messages and I think you may be able to help me (well I am hoping!) but let me warn you it is a very complicated situation!
My father a British National married a Filipino lady many years ago, whilst married to my father he retired early, with his lump sum from his pay off he built a second home in the Philippines she owned the land and I believe my dad had his name on the title (up to 40%) once they were married for over 10 years she gained her British citizenship then she left him and moved some where else in the UK (she still lives in the UK) mean while her children from her previous marriage in the Philippines moved into my dads house (without permission) he was settling the divorce here and then going through courts over the house in the Philippines as she was claiming 100% of the property.
My dad then re-married a Filipino, they had a child together and he built another house in the Philippines and sold his property in the UK. He was still going through legal procedures with his ex wife over the house (it went on for many years)
My father passed away 2 years ago, just a few days before he died he went for citizenship in the Philippines and I am not sure if he was given it. I was in touch with his wife for around 1 year after his death but she has stopped all contact for no good reason. As time is going by I am wondering why she would have stopped responding to my mail and it dawned on me perhaps it could be to do with Inheritance. Something I never questioned or even thought of until now! She was trying to continue the case over the house but I have no idea if she won or if she is still proceeding with it. My question to you is… Would Inheritance be a reason for her not wanting to continue a relationship with me!?!? Would I be entitled to Inheriting!?!? how would I find out more information ie who my dads attorney was, where to gain access to land registry/title!?!??
I hope all the above makes sense (How complicated is this query!?!?)
Thank you for reading through my post.
Dear Philly
I have just been reading through all your messages and I think you may be able to help me (well I am hoping!) but let me warn you it is a very complicated situation!
My father a British National married a Filipino lady many years ago, whilst married to my father he retired early, with his lump sum from his pay off he built a second home in the Philippines she owned the land and I believe my dad had his name on the title (up to 40%) once they were married for over 10 years she gained her British citizenship then she left him and moved some where else in the UK (she still lives in the UK) mean while her children from her previous marriage in the Philippines moved into my dads house (without permission) he was settling the divorce here and then going through courts over the house in the Philippines as she was claiming 100% of the property.
My dad then re-married a Filipino, they had a child together and he built another house in the Philippines and sold his property in the UK. He was still going through legal procedures with his ex wife over the house (it went on for many years)
My father passed away 2 years ago, just a few days before he died he went for citizenship in the Philippines and I am not sure if he was given it. I was in touch with his wife for around 1 year after his death but she has stopped all contact for no good reason. As time is going by I am wondering why she would have stopped responding to my mail and it dawned on me perhaps it could be to do with Inheritance. Something I never questioned or even thought of until now! She was trying to continue the case over the house but I have no idea if she won or if she is still proceeding with it. My question to you is… Would Inheritance be a reason for her not wanting to continue a relationship with me!?!? Would I be entitled to Inheriting!?!? how would I find out more information ie who my dads attorney was, where to gain access to land registry/title!?!??
I hope all the above makes sense (How complicated is this query!?!?)
Thank you for reading through my post.
Thanks for your comment. I’ll answer this in a future posting, perhaps today.
Thank you I look forward to receiving your advice
Many thanks
I read with interest the article on property ownership in the philippines ,i have a filipino partner and will buy a house sometime ,but i have thought of dealing with the ownership this way ,i will loan the money to my partner legaly written up .i will insert a clause saying that ,the loan must be paid on demand within say 6 months of receipt of a written demand ,or within 1 year of her death OR THE LENDER CAN SELL THE PROPERTY ,i will require legal advise to see if this is protecting me ,may not ,but i feel everything is to one sided for the philippino even when the foreigner has prooved he provided the purchase price of the house ,any ideas or helpful comments appreciated ,perhaps the easy is invest your money offshore and lease a property Bbut i like to own the house i live in as most people do
Well graeme, let me give you my opinion, since you asked. Youtr scheme will not work. Now, of course, you may find a lawyer who says it will work for you, so I wish you the joy of that. But my advice is, don’t.
It seems hard to get through to people that the nation of the Philippines does not want non-Filipinos to own land. Period. It’s very clear in the constitution. Sp when you say, “I prefer to own the home I live in”, fine well and good, but it is not a legal option. (condominium, or long-term property leasing _IS_ a legal option).
In your scheme you state you will give someone money to buy a home and then take back a note. Are you licensed to lend money in the Philippines? I’m not sure this is an issue, but it may well be … even if you escape this possible trap, re-read what you said in your proposal … “The lender can sell the property” … how will you accomplish this, since you will not own the property? I’m really having trouble following the logic here.
When you say property laws are one-sided in favor of the Filipino, you are absolutely correct. The authors of the current (1987) constitution clearly wanted property reserved for Filipinos _only_. As a foreigner, owning property is not a right that you have in the Philippines … there may be other countries better suited to you … although that you will find most South east Asian countries restrict foreign ownership severely … that’s the way it is … so think it through before you decide to relocate here … I know many foreigners who have gotten ‘bilked’ on property ownership schemes and even a few who have been blacklisted and/or deported over attempting to skirt the property ownership laws.