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Questions and Answers Regarding Real Estate Law in the Philippines

DO YOU KNOW WHAT THE CIVIL CODE OF THE PHILIPPINES IS AND HOW IT AFFECTS YOUR REAL ESTATE TRANSACTIONS?


The Civil Code is the main source of law for real estate in the Philippines. It defines what real estate is, how it can be acquired, transferred, and encumbered, and what rights and obligations arise from real estate contracts.

According to the Civil Code, real estate covers the following:

  • Land, buildings, roads and constructions of all kinds adhered to the soil
  • Trees, plants and growing fruits, while they are attached to the land or form an integral part of immovable property
  • Rights to easements and servitudes over immovable property
  • Real rights such as ownership, usufruct, lease, mortgage, and pledge over immovable property
The Civil Code also provides the general rules for real estate transactions, such as:
  • The requirements for a valid contract of sale, donation, exchange, or partition of real estate
  • The modes of acquiring ownership of real estate by original title (such as occupation, intellectual creation, prescription) or derivative title (such as succession, tradition, public instrument)
  • The formalities and effects of a contract of mortgage over real estate
  • The remedies for breach of contract or non-performance of obligations arising from real estate contracts

The Civil Code is not the only law that governs real estate in the Philippines. There are also other laws that supplement or modify the Civil Code provisions on specific matters, such as registration of title, condominium ownership and management, subdivision and condominium buyers’ protection, and real estate service practice.

If you want to learn more about the Civil Code and other laws that apply to real estate in the Philippines, you can check out these sources:

¹ Real Estate Law | Philippines | Global Corporate Real Estate Guide | Baker McKenzie

² REAL ESTATE MORTGAGE (ARTICLES 2124-2131) - BATASnatin.com

³ R.A. 9646 - The Lawphil Project

4 Republic Act No. 386 - Official Gazette of the Republic of the Philippines