Buying A Property In The Wifes Name And Leasing It Back

[wolf larsen]

If you are leasing the land you bought, your rights are limited as that of a lessee only and not as a real owner. The legal owner (the one whose is on the title) can still sell or mortgage the property and the bank can foreclosed that property too. Rule of thumb here: Never give out the title and secure a Special Power of Attorney to Sell from the legal owner, aside from your lease contract and deed of assignment.

This is what happened to my friend. He put the land title in the name of his "trusted" neighbor. The neighbor tricked him and got the title in their hands, mortgaged it to a financing company and never paid their loans. The land is now foreclosed and my poor friend can't get it back unless he pays the loan and redeem it.

And even if he did pay off the loan, the title would just go back to the neighbor.

I'm not sure that keeping the title would even work. Couldn't the owner apply to the registry of deeds for a new title, simply saying that the old one was lost?

The Special Power of Attorney to sell is good but a lot of buyers might not want to deal with it or they might insist on paying only to the real owner. Do you know if a SPA can be made to not only give you rights to modify, sell, etc. but take away these rights from the owner?

[Duma]

When I sold my last property I had a Special Power of Attorney over the land to sell when ever I liked.....The buy's Attorney would not except me using the SPA to sell the property stating even tho you have a SPA from the owner to sell......as you are not a citizen of this country being a foreigner you can not own land so you cannot sell land.......even if you have the permission to sell from the owner.

This wasn't a problem as the owner of the land is a close friend and was happy to sign the Deed of Absolute Sale and all other documents.

I wonder what would happen if this was tested in the Courts.

[mkcl8888]

If you really want to redeem the property, u can buy it from the mortgage company after the one year redemption period. But then you have to put it in a Filipino citizen's name still.

Declaring a lost title will have to go through court. The registry of deeds will know that the property was mortgaged if the mortgagor registered or annotated the mortgage on the title.

[Call me bubba]

I have stayed out of this as

1. i have no money to buy a unit for my "wife"(partner)

2. I have no respect or FAITH for the "current" legal system regarding propery rights issues

My only comment would be..

If you really trust and love your wife DO IT, buy and lease it from her.

and accept the consequences

Honesty can you afford to take that risk ??? (lose your hard earn $$$) and possible heart ache.

money when lost makes, and can cause some peoples behavoir go........(crazy is simply put... or look at the emoticons posted)

, :728: ,

Edited September 24, 2012 by Call me Bubba

[Dave Hounddriver]

If you really trust and love your wife DO IT, buy and lease it from her. and accept the consequences

No creditable lawyer would draw up a lease on property from wife to husband in Philippines. Its just not legal. Unless you are talking about a live in partner who is not your wife?

[Steve & Myrlita]

Under the Family code, a Husband and Wife are considered as one entity and therefore you can not lease from your wife for the law says it's the same as leasing to yourself. You can not bypass the constitution. If you try, you will lose and possibly lose it all. It's best not to even think about it.

Edited September 24, 2012 by Steve & Myrlita

[Thomas]

Something like this you mean...

How high up is that?

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A good steward can spend much money/work to improve the forest, How about when it's time to cut down lumber? Any profit sharing or something?

A lease from a legal wife is an illegal lease. I know a guy going through that now. If there is any chance your wife is out to scam you then do not buy property under any kind of arrangement.

I agree! That very little seed of doubt planted in your head about what if anything goes wrong will eat the relationship somehow! Giving her a house and material possession is not a guarantee that she in return loving you as much! I often times wonder if all these girls who claim that 'this rich old foreigner is the love of my life" "we are perfect together" "I love him very much"..whatever, are true if they are not given that lavishness in life that they are enjoying at the moment. I am sorry but I am just being honest about it. I have seen several relationship who looks so perfect but without the foreigner's financial support, everything turned bitter and off she go for a greener and bigger catch!I hate to say this but every time I hear somebody said, "find me a foreigner" "you buy a house, your husband is a foreigner" I could see through the heart of that Filipina and never would I introduce her to any of my foreigner friends!Just build your relationship with love, trust and confidence and everything will be perfect for the both of you!!!!

>Dave OK. Not wife. Is it allowed to lease from any other relative?

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My gf try to make me agree to move into the house of the recently dead grandfather, but I find that some to close.

Or perhaps she ment building on that land. But when I said I want to build 150 - 200 m2 PLUS veranda, she found that much to BIG.

So, if she true to scam me, she seem to try to scam me of less :lol:

(Concerning economy she has only asked about types of jobs I aim at for relatives to her. I had told I aim at starting a business, make jobs for a few of them to start with.)

If you are leasing the land you bought, your rights are limited as that of a lessee only and not as a real owner. The legal owner (the one whose is on the title) can still sell or mortgage the property and the bank can foreclosed that property too. Rule of thumb here: Never give out the title and secure a Special Power of Attorney to Sell from the legal owner, aside from your lease contract and deed of assignment.

This is what happened to my friend. He put the land title in the name of his "trusted" neighbor. The neighbor tricked him and got the title in their hands, mortgaged it to a financing company and never paid their loans. The land is now foreclosed and my poor friend can't get it back unless he pays the loan and redeem it.

But as I have understood it leasing contracts follow the LAND, undepending of who is the owner. Anyone saying other?

(I mean legaly. Of course it can be threats and such trying to force house owner away.).

When I sold my last property I had a Special Power of Attorney over the land to sell when ever I liked.....The buy's Attorney would not except me using the SPA to sell the property stating even tho you have a SPA from the owner to sell......as you are not a citizen of this country being a foreigner you can not own land so you cannot sell land.......even if you have the permission to sell from the owner.

This wasn't a problem as the owner of the land is a close friend and was happy to sign the Deed of Absolute Sale and all other documents.

I wonder what would happen if this was tested in the Courts.

But a foreigner can INHERIT land, but has to SELL it within reasonable time. I don't know how fast that is.. So foreigners can be land sellers. (But officialy perhaps the dead old owner stay standing as owner until it's sold?)

[i am bob]

I want to build 150 - 200 m2 PLUS veranda, she found that much to BIG. So, if she true to scam me, she seem to try to scam me of less

Thomas, Thomas, Thomas... Of course she is trying to "scam" you! "Scam" you into letting her do less housework when she has to be looking after the place! hehe! Yeah, that's the type of scam I could live with! Technically this could fall under the term Scam but I think it would more likely be placed under Self-preservation on her part! :mocking: Sounds like you've got what a fisherman would refer to as a 'keeper"!

Leasing land from a relative other than your wife? Normally no problem though there are a few stipulations they stick in there. More along the lines of if you have lived as a dependent with the person you are leasing from for a certain amount of time, etc. Not much to worry about though - that can be easily cured by paying a small rent for the time you stayed there. I would still clear this through a lawyer - one you can trust of course!

The lease does indeed follow the land if sold. BUT, first off, we are considered "foreigners" and don't qualify for all the same rights as a native Filipino - this will require a further investigation into the laws of the Philippines to ensure that we are covered by such. Often the law is open to interpretation by those you are relying on to mediate if required. And you will also hear that many times someone will have lost their lease through some legal manoeuvrings, etc. Contracts are written by man and no man is perfect - a good lawyer can quite often find something in the lease that will allow it to be broken. Not to mention that sometimes the lease is not broken but one side or the other will have died. Sometimes with a little help. I guess it all depends on how bad somebody else wants that land.

Foreigners can inherit land but must place the land in trust until it is sold. I'm thinking the wording of this is not quite correct though it is used on several references I looked at. I'm assuming it meant that the land was to be placed in the trust of a lawyer.

One thing that I have learned concerning the Philippine law and how it deals with us (as in ex-pats) is that, should anything approach a legal decision regarding us, very often the law is open to interpretation of the person deciding what is correct. What we read to be within our rights is not always the same. This is something to always keep in mind when dealing with legal matters.

[Thomas]

Yes, I believe she is a catch - which I suppose everyone think about their girlfriends :) - but some confusing she look as many different. A friend of mine, who think of follow me when I move, wondered why I had 4 girlfriends, but it was same one :lol:

I ment having a lease of land with a fee. (Not decided yet if use any land they have already. (One of them she has inherited.) But probably I will want to build on a land they don't have.)

Dependant in which direction can be a problem?

OK if kano lease from parent-in-law? Any difference if they get more money than the lease fee?

OK if kano lease from own child (Filipin citizen)? (But probably I don't want to wait building the house until I get a child :) But perhaps I will want to lease more land later for future business.)

Yes, I know it isn't sure PI courts will follow the law, but I want to make law have to be broken to take the house.

Oh so the foreigner sell inherited land, but don't sell it - himself :)

[i am bob]

Yes, I believe she is a catch - which I suppose everyone think about their girlfriends :) - but some confusing she look as many different. A friend of mine, who think of follow me when I move, wondered why I had 4 girlfriends, but it was same one :lol:

I ment having a lease of land with a fee. (Not decided yet if use any land they have already. (One of them she has inherited.) But probably I will want to build on a land they don't have.)

Dependant in which direction can be a problem?

OK if kano lease from parent-in-law? Any difference if they get more money than the lease fee?

OK if kano lease from own child (Filipin citizen)? (But probably I don't want to wait building the house until I get a child :) But perhaps I will want to lease more land later for future business.)

Yes, I know it isn't sure PI courts will follow the law, but I want to make law have to be broken to take the house.

Oh so the foreigner sell inherited land, but don't sell it - himself :)

Let me explain the situation I heard of from a person I met who went through this.

If you live rent-free with your inlaws and live in their house with them for a year or two - and then take a lease out on part of the same piece of land attached to their house... This was where someone I talked to had their issues. He was living and working in Canada and had one more year before he could collect his pension but his mother-in-law passed away. The father needed someone to help him around the house until his son finished university so they packed up and moved. They found out about the problem they would have when discussing this with the local Captain so they arranged a small "rental" fee for the bedroom they occupied which was usually paid for by labour (cleaning the house, tending the garden, fishing with the father) but recorded with receipts as paid rent. It was a ridiculously small amount - something like 100 pesos a month. They were spending more than that anyway for food and such for them and his wife's father. A little more than 1 year later, his pension kicked in (they were living on his savings until then) and they leased a section of land from the father to build their house on - a nice bamboo construction . When the father passed away, one of the father's sisters tried to take the land but couldn't because of the lease being done properly - the local Captain and the sons stood up for them.

After he told me about this (I think it was around last December or January), I started to look into the different laws concerning an expat renting land. Many laws were written strictly in regards to only Filipinos and I had to look in other places for information affecting an expat. To sum it all up, it is confusing and contradictory and a good lawyer could probably beat your lease to death in court or save your lease for you. I think the best thing to do is to talk to the Barangay Captain where the land is - he may tell you that all I have suggested may not be required there. Of course I think it is always a good idea to know your Captain and know him well! A little friendship and occasional invitation for dinner or so will go a long way to help matters both now and in the future.