Land control

[Snowy79]

I'm in the process of looking at a back up plan if I decide not to purchase a Condo. The plan is to get a beach lot with a clean title, water, electricity and access to build my own dream home.

I'm fully aware that foreigners can't own land and that there are various anti-dummy laws to prevent circumventing land ownership so what I'm looking at is getting land to use which I'll never own but I'll be able to live on until I go downstairs to stoke the fires.

I've dismissed the lease option as leases can be cancelled and I can get kicked of the land or they could raise the rent etc.

My cunning or not so cunning plan is to set up a Corporation and then to buy land using my money. I'm aware I can only own 40% of the corporation and 60% is split between 4 Filipinos. Prior to buying land I was thinking of drawing up a lease to myself for 50yrs from the company and drawing up a power of attorney over the land so the company can't cancel the lease. My thinking on this is I'll be dead before my lease is up and don't think I'll be needing my cash then.

I have one good Filipino who I trust to have a large share of the corporation then give a token % to the others. I've been advised I can get them to sign blank certificates of share transfer so in the event they try to screw me I can give the shares to another Filipino who is on my side. Obviously I'll have to lubricate their palms to make it worthwhile.

Correct me if I'm wrong but what I'm thinking is this way I can select the land to build on. The land alone will belong to the corporation which I will then lease and as I have power of attorney can do with it what I want until the day I die when it goes to the corporation. I'll look at covering my butt from premature death syndrome by willing my rights to another if it's legal.

What I want to know is : Will there be issues getting a building warrant for leased land and how much rent must I pay legally to the corporation for the land? Is there a set rate per sqm etc? I don't want to be a chancer and pay a token rent of 1,000 php per year to the corporation then find out I've broke some law. I'm aware any rent paid to the corporation can go towards wages etc and I can pay myself what I want. Again I don't want to do anything dodgy like pay myself 1,000 php per year. 

Advice on the back of a 1,000 dollar bill please as to the pitfalls of this idea. 

[Jollygoodfellow]

I would be getting several opinions from large legal firms before doing anything.  

[Snowy79]

7 minutes ago, Jollygoodfellow said:

I would be getting several opinions from large legal firms before doing anything.  

I'll certainly ensure everything is covered as there are a few lawyers that will say anything as they don't get hammered when there's a lucky foreigner to punish. As you say not from one lawyer but at least two. I just want to go to them forearmed with questions.

[Kuya John]

Might just be easier to rent a house n lot overlooking, if you are not concerned about later in life

[Snowy79]

38 minutes ago, Kuya John said:

Might just be easier to rent a house n lot overlooking, if you are not concerned about later in life

I want to have stability. If I rent I can get kicked off the land easily and rates can increase. I'd also be limited to the properties that come available. I know a few Foreigners living in their own homes on dodgy certificates and they assure me they know of lots of other foreigners that have been doing the same thing for 20yrs with no problems but I'm a realist and want a legal way of doing things.  

[Kuya John]

3 hours ago, Snowy79 said:

I want to have stability.  but I'm a realist and want a legal way of doing things.  

You wont remember this song, you are to young.......I wouldn't leave my little wooden hut for you

The Philippines is as stable as the pound right now

Edited January 19, 2017 by Kuya John

[mogo51]

I have been up the Company road here in Thailand and found it gave me no secure feelings whatsoever.  However, luckily I sold the property recently.

The best advice on this post is 'rent' unless you have a partner that you will be happy to trust and can have same when you check out!

[jpbago]

13 hours ago, Snowy79 said:

a legal way of doing things.  

There is no legal way, it is up to interpretation, and it will not be in your favour, not now and highly not likely in 10 years.

[robert k]

I hesitate to get involved with these threads any more. It has been hashed over so much. You might try a paid up lease. Paid in advance. If they take you to court to break the lease they would have to return the unused portion of your lease payment and for improvements. I doubt they would still have the money to do that. Any legal fees to break the lease they spent would come out of their own pocket. I can't see a court ordering your eviction until you had been paid. Not perfect but better than the run of the mill. I'd be more worried that I wasn't leasing from the correct party or from only one of the correct parties. Of course there is still the tandem riders with full face helmets if you are too inconvenient.

Edited January 20, 2017 by robert k

[Dave Hounddriver]

34 minutes ago, jpbago said:

There is no legal way

Find a drunk filipino squatter and have him sign the papers to be the 60 % shareholder in you company.  Don't give him any of the papers to look at when he is sober, but whenever you need something signed just buy him a bottle and get him to sign it.  So long as he don't die you will be legal and fine.

Disclaimer:  This advice is given tongue-in-cheek although you may be surprised to find out that some have done this, and I don't mean just foreigners.  "I've heard it said" that rich filipinos use the same tactic when they need a co-operative board member but its just hearsay.   Use your good judgement as always.