In the Philippines, the regulation of land ownership is governed primarily by the 1987 Constitution, which restricts the acquisition of public and private lands to Filipino citizens or corporations with at least 60% Filipino capitalization. This creates a complex legal landscape for foreigners married to Filipino nationals who wish to purchase a "house and lot."

While the law is strict regarding land, there are specific legal frameworks and "workarounds" that define how a foreigner can participate in the enjoyment of real estate through a spouse.

The Constitutional Prohibition

Under Article XII, Section 7 of the Philippine Constitution, foreigners are generally prohibited from owning land in the Philippines. This prohibition is absolute regardless of the foreigner's marital status. Consequently, even if a foreigner is married to a Filipino, they cannot have their name recorded as an "owner" on the Original Certificate of Title (OCT) or Transfer Certificate of Title (TCT) for the land.

The Land vs. The House

It is crucial to distinguish between the land (the lot) and the improvements (the house):

The Lot: Only the Filipino spouse can legally own the land.
The House: Philippine law allows foreigners to own buildings or personal property. However, because the house is permanently attached to the land, the title for the entire property is typically issued in the name of the Filipino spouse.

Registration and Title Issues

When a house and lot are purchased, the Deed of Sale and the resulting TCT will reflect the Filipino spouse as the sole owner.

Marital Status on Title: The title will often read: "Juanita Dela Cruz, Filipino, married to John Doe, American."
Legal Meaning: This phrasing does not grant ownership to John Doe. It merely describes the civil status of the registered owner (Juanita). In the eyes of the law, the Filipino spouse is the sole registered owner of the land.

Financial Contributions and "Implied Trusts"

A common point of contention occurs when the foreign spouse provides the entirety of the funds for the purchase.

No Ownership via Funding: The Philippine Supreme Court has consistently ruled that providing the money for a land purchase does not grant a foreigner ownership rights.
The "In Pari Delicto" Principle: If a foreigner knowingly provides funds to buy land in a Filipino's name to circumvent the Constitution, they are often considered to have violated the law. Therefore, they cannot go to court later to "claim" the land back if the relationship sours, as the courts will not provide relief to someone who participated in an illegal circumvention of the Constitution.

Rights of the Foreign Spouse

While ownership is prohibited, the foreign spouse does possess certain protections and interests:

1. Right to Occupy and Enjoy

As a member of the household, the foreign spouse has the right to live in the home. This is a matter of family law and residence rather than a property title right.

2. Lease Agreements

A foreigner may enter into a long-term lease agreement with their Filipino spouse. Under the Investor's Lease Act (RA 7652), a foreigner can lease land for up to 50 years, renewable for another 25 years. This provides a legal "right to possess" that survives even if the marriage ends.

3. Recovery of Funds in Case of Separation

Generally, the land is considered "Paraphernal Property" (exclusive property) of the Filipino spouse if it was acquired through their own funds or inheritance. If marital funds were used, it may be considered "Conjugal Property," but the land remains under the Filipino's name. In the event of a legal separation or divorce (if validly obtained abroad), the foreigner usually cannot claim the land but may, in specific equitable circumstances, seek reimbursement for the value of the improvements (the house) they funded.

Successional Rights (Inheritance)

The only constitutional exception to the ban on foreign land ownership is Hereditary Succession.

If the Filipino spouse passes away without a will (Intestate), the foreign spouse is considered a compulsory heir under the Civil Code of the Philippines.
In this specific instance, the foreigner can legally inherit a portion of the land.
Limitation: While they can inherit the land, they may face difficulties if they attempt to sell it or transfer it later, as their ownership is a result of legal necessity rather than a right to acquire.

Risks and Precautions

The primary risk for a foreigner is the lack of control. If the Filipino spouse decides to sell or mortgage the property, they generally do not need the foreigner's consent because the foreigner's name is not on the title as an owner.

Common Legal Strategies:

Placing a Memorandum of Encumbrance: A foreigner may sometimes record a lease or a "notice of interest" on the back of the title to prevent the spouse from selling the property without their knowledge.
Condominium Alternative: If "ownership" is the priority, foreigners are legally allowed to own 100% of a condominium unit, provided the foreign interest in the entire building does not exceed 40%.