New Law Expands Lease Terms for Foreign Investors
President Ferdinand Marcos Jr. recently signed Republic Act No. 12252, known as the Act Liberalizing the Lease of Private Lands by Foreign Investors. This legislation permits foreign investors to lease private lands in the Philippines for up to 99 years, marking a significant change in property lease regulations.
Signed on September 3, the law amends the previous Investors’ Lease Act, aiming to attract more foreign capital by offering extended lease terms. Local officials noted that this move could stimulate economic growth and enhance investment opportunities across various regions.
Key Amendments and Registration Requirements
Under the new law, all lease contracts must be registered with the Registry of Deeds in the province or city where the land is located. This registration must also be annotated on the certificate of title for the leased area, ensuring transparency and legal clarity.
Community members emphasized that this dual registration process strengthens property rights and secures both the lessor’s and lessee’s interests. It also formalizes the lease agreements, making them easier to enforce.
Conditions for Lease Termination and Renewal
The legislation specifies that if a foreign investor withdraws their approved and registered investment during the lease term or uses the land for unauthorized purposes, the lease contract will be terminated immediately. However, the lessor retains the right to seek compensation for any damages incurred.
Additionally, for lease renewal, foreign lessees must demonstrate tangible social and economic contributions to the Philippines. This condition encourages responsible investments that benefit the local economy and communities.
Implementing Rules and Regulatory Oversight
The Department of Trade and Industry, in coordination with the Board of Investments and the Land Registration Authority, is tasked with formulating the implementing rules and regulations. These guidelines must be established within 90 days from the law’s effectivity to ensure smooth enforcement and compliance.
Officials reported that these agencies will monitor lease contracts closely to uphold the provisions of the Act Liberalizing the Lease of Private Lands by Foreign Investors and safeguard national interests.
For more news and updates on foreign investors leasing private lands, visit Filipinokami.com.
