Monday, July 23, 2012

US citizen buying property in the Philippines

When a US citizen (a non-Filipino; a 'foreigner', an expat) is planning at buying property in the Philippines, it's most likely a 'he' who is - or will soon be - married to a Filipina.
Well, you can buy a house but not the land it stands on... sorry.

So you will have to put the property on your spouse's name; and don't forget to add 'married to' to the Deed of Sale (contract) because when your wife dies you might at least have a chance to own the real estate for the last years of your life.
'A chance to own' that is,  because there seem to be something like the 'Compulsary Heirs' issue.
Whats that?
As far as I understand it is a law that tells you who will get the house when your wife dies, and in what order (in case she was a legitimate child):

1. Legitimate children or descendants;
2. Legitimate parents or ascendants;
3. Illegitimate children or descendants;
4. Surviving spouse;
5. Brothers and sisters, nephews and nieces;
6. Other collateral relatives within the fifth degree; and,
7. The State.

Yep, you are at number 4. That's behind your mother-in-law and your wife's illegitimate kids if she has some (that you know of ;).
The only thing that might save you is a will.


But make sure you talk to a Philippine lawyer because only they are allowed to give legal advice.