SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.No. 1731 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
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SEP 24 P 2 :46 
Republic Act No. 7652 otherwise known as the "Foreign Investor Long-Term Lease Act" allows 
the long term lease of private lands by foreign investors of up to a maximum period of 75 years 
but requires them to register with the Department of Trade and Industry. Under the present laws, 
foreign investors may lease private lands for 50 years renewable to another 25 years for the 
establishment of industrial estates, factories, assembly of processing plants, agro-industrial 
enterprises, land development for industrial or commercial use, tourism, and other similar 
priority productive endeavours, while at the same time protecting agriculture. 
However, the aforesaid law covers only foreign investors thereby discouraging other foreigners 
from leasing properties. Moreover, the law still refers to Presidential Decree No.4 71 in fixing 
the period for the duration of leases of private lands for foreigners. This causes confusion and 
lack of uniformity, making the potential of investing in our real estate rather unappealing. 
The 1987 Constitution already allows foreigners to enter into long term leases over private lands 
and real estate. There is, however, a pressing need to streamline and simplify the existing policy 
on the lease of these properties to aliens. 
This bill is an attempt to simplify leases by foreigners of private lands and real estate and to 
extend the maximum period oflease to 80 years, in order to effectively encourage investments in 
all kinds of private lands and real estate. 
In view of the foregoing, immediate enactment of this measure is earnestly sought. 
~ 
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ANT~>N\~-:'~NNY . F. T~LLANES IV 
Senator 
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SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S. No. 
1731 
Introduced by Senlltor,Antonio "Sonny" F. Trillanes IV 
AN ACT 
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SEP 24 'P2:46 
STRENGHTHENING THE RIGHTS OF FOREIGNERS TO LEASE PRIVATE LANDS, 
THEREBY REPEALING REPUBLIC ACT NO. 7652, ENTITLED, "AN ACT 
ALLOWING THE LONG-TERM LEASE OF PRIVATE LANDS BY FOREIGN 
INVESTORS," AND PRESIDENTIAL DECREE NO. 471, ENTITLED "FIXING 
A 
MAXIMUM PERIOD FOR THE DURATION OF LEASES OF PRIVATE LANDS TO 
ALIENS" 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION l.Title. This Act shall be known as "The Foreigners' Lease Act of2013." 
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SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
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encourage foreign investments in the re!!l estate industry consistent with the mandate of the 
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Constitution. Toward this end, the State hereby adopts a flexible and dynamic policy on the 
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granting of long-term lease of private lands to foreigners for the establishment and development 
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of industrial estates, agro-industrial enterprises, factories, processing plants, buildings, and for 
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other industri!!l, commercial or resident!!!l purposes. 
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SEC. 3. Lease Period.- Any person, natural or judicial, who is not a citizen of the 
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Philippines sh!!ll be !!llowed to le!!se private lands in accordance with the laws of the Republic of 
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the Philippines, subject to the following conditions: 
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(1) No lease period shall be for a period exceeding eighty (80) years; 
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(2) If the lease is for the purpose of building a residential or office condominium, the 
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lease contract can provide for a period not exceeding ninety-nine (99) years; and 
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(3) The le!!se contract shall be registered with the proper Registry of Deeds and annotated 
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on the title to the land. There shall be no other requirement for the validity and 
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effectivity of the lease contract. 
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The leasehold acquired under a lease contract entered into pursuant to this Act may be 
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sold, transferred, or assigned by the lessee. To bind third persons, the said sale, transfer or 
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assignment must be registered with the proper Registry of Deeds. 
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SEC. 4. Penal Provision.-Any contract or agreement made or executed in violation of 
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any of the following prohibited acts shall be null and void ab initio and the contracting parties 
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shall be punished by a fine of not less than one hundred thousand pesos (P 100,000.00) and not 
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more than one million pesos (P 1,000,000.00), or imprisonment of six (6) months to six (6) 
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years, or both, at the discretion of the court, to wit: 
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(1) Any provision in the lease agreement stipulating a lease period in excess of that 
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provided in the paragmph (1) or (2) of Section 3; or 
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(2) Use of the leased premises for a purpose contrary to existing laws, public order, public 
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policy, morals, or good customs. 
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Provided that, in the case of corporations, associations, or partnerships, the president, managing 
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director, manager, director, trustee, or officers responsible for the violation hereof shall bear the 
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criminal responsibility. 
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SEC. 5. Repealing Clause. - Presidential Decree No. 471 and Republic Act No. 7652 are 
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hereby repealed upon the effectivity of this Act. 
All other laws, decrees, orders or other 
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issuances inconsistent with the provisions of this Act are hereby repealed or modified 
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accordingly. 
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SEC. 6. Separability Clause. - If, for any reason, any section or provision of this Act is 
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declared unconstitutional, or invalid, the other sections and provisions, which are not affected by 
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it, shall continue to be in full force and effect. 
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SEC. 7. Effectivity Clause. - This Act shall take effect after fifteen (15) days from its 
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publication in the Official Gazette or in two (2) national newspapers of general circulation. 
Approved, 
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