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Under Section 1 of Article XIII of the Constitution, "natural resources, with the
exception of public agricultural land, shall not be alienated," and with respect to public
agricultural lands, their alienation is limited to Filipino citizens.
Prohibition has been extended to the ownership of private land aliens to own lands
of public domain:
Section 7. Save in cases of hereditary succession, no private lands shall be transferred
or conveyed except to individuals, corporations, or associations qualified to acquire or
hold lands of the public domain.
See:
Muller vs Muller (G.R. No. 149615, August 29, 2006)
Krivenko vs Register of Deeds (79 Phil. 461 (1947)
Section 7 of the same Article allows foreign citizens to own land by way of legal
inheritance.
Note that Section 7 speaks of hereditary succession. In legal speak, this means that a
foreigner can acquire land through intestate inheritance, i.e. the default laws
on inheritance which are not transfers of ownership by way of a last will and testament.
The Supreme Court has ruled that a transfer of ownership to a foreigner by way of last
will and testament would be unconstitutional.
We are of the opinion that the Constitutional provision which enables aliens
to acquire private lands does not extend to testamentary succession for
otherwise the prohibition will be for naught and meaningless. Any alien
would be able to circumvent the prohibition by paying money to a Philippine
landowner in exchange for a devise of a piece of land.
See: Ramirez vs. Vda. de Ramirez (G.R. No. L-27952, February 15, 1982)
This means that Section 7, Article XII of the Constitution should be read in relation with the
Philippine Civil Code’s provisions on intestate inheritance.
Specifically, Articles 995, 997 and 1001 of the Civil Code. I’ll give you the entire
subsection on a surviving spouse:
Note: The constitutional prohibition only applies to land, not improvements over
land:
See: Beumer vs Amores (GR 195670, December 3, 2012).