Republic of the
Supreme Court
|
JACOBUS BERNHARD
HULST, |
|
G.R. No. 156364 |
|
Petitioner, |
|
|
|
|
|
Present: |
|
|
|
|
|
|
|
YNARES-SANTIAGO, J., |
|
|
|
Chairperson, |
|
- versus - |
|
AUSTRIA-MARTINEZ, |
|
|
|
CHICO-NAZARIO, |
|
|
|
NACHURA, and |
|
|
|
REYES, JJ. |
|
|
|
|
|
PR BUILDERS,
INC., |
|
Promulgated: |
|
Respondent. |
|
September 25, 2008 |
x - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - x
R E S O
L U T I O N
AUSTRIA-MARTINEZ, J.:
This resolves petitioner's Motion for
Partial Reconsideration.
On
WHEREFORE, the instant petition is GRANTED. The Decision dated P2,125,540.00,
without interest, in excess of the proceeds of the auction sale delivered to
petitioner. After the finality of herein judgment, the amount of P2,125,540.00 shall earn 6%
interest until fully paid.
SO ORDERED.[2] (Emphasis supplied)
Petitioner filed the present Motion
for Partial Reconsideration[3]
insofar as he was ordered to return to respondent the amount of P2,125,540.00 in excess of the proceeds of the auction sale
delivered to petitioner. Petitioner
contends that the Contract to Sell between petitioner
and respondent involved a condominium unit and did not violate the
Constitutional proscription against ownership of land by aliens. He argues that the contract to sell will not
transfer to the buyer ownership of the land on which the unit is situated;
thus, the buyer will not get a transfer certificate of title but merely a
Condominium Certificate of Title as evidence of ownership; a perusal of the
contract will show that what the buyer acquires is the seller's title and rights
to and interests in the unit and the common areas.
Despite receipt of this Court’s
Resolution dated
The Motion for Partial
Reconsideration is impressed with merit.
The
Contract to Sell between petitioner and respondent
provides as follows:
Section 3. TITLE AND OWNERSHIP OF UNIT
a. Upon
full payment by the BUYER of the purchase price stipulated in Section 2 hereof,
x x x, the SELLER shall deliver
to the BUYER the Deed of Absolute Sale conveying its rights, interests and
title to the UNIT and to the common areas appurtenant to such UNIT, and the
corresponding Condominium Certificate of Title in the SELLER's name; x x x
b. The
Seller shall register with the proper Registry of Deeds, the Master Deed with
the Declaration of Restrictions and other documents and shall immediately
comply with all requirements of Republic Act No. 4726 (The Condominium Act)
and Presidential Decree No. 957 (Regulating the Sale of Subdivision Lots and
Condominiums, Providing Penalties for
Violations Thereof). It is hereby
understood that all title, rights and interest so conveyed shall be subject
to the provisions of the Condominium Act, the Master Deed with Declaration
of Restrictions, the Articles of Incorporation and By-Laws and the Rules and
Regulations of the Condominium Corporation, zoning regulations and such other
restrictions on the use of the property as annotated on the title or may be
imposed by any government agency or instrumentality having jurisdiction
thereon.[4]
(Emphasis supplied)
Under
Republic Act (R.A.) No. 4726, otherwise known as the Condominium Act, foreign
nationals can own Philippine real estate through the purchase of condominium
units or townhouses constituted under the Condominium principle with
Condominium Certificates of Title. Section 5 of R.A. No. 4726 states:
SECTION 5. Any transfer or conveyance of a unit or an
apartment, office or store or other space therein, shall include the transfer
or conveyance of the undivided interest in the common areas or, in a proper
case, the membership or shareholdings in the condominium corporation; Provided,
however, That where the common areas in the condominium project are held by the
owners of separate units as co-owners thereof, no condominium unit therein
shall be conveyed or transferred to persons other than Filipino citizens or
corporations at least 60% of the capital stock of which belong to Filipino
citizens, except in cases of hereditary succession. Where the common areas
in a condominium project are held by a corporation, no transfer or conveyance
of a unit shall be valid if the concomitant transfer of the appurtenant
membership or stockholding in the corporation will cause the alien interest in
such corporation to exceed the limits imposed by existing laws. (Emphasis
supplied)
The
law provides that no condominium unit can be sold without at the same time
selling the corresponding amount of rights, shares or other interests in the
condominium management body, the Condominium Corporation; and no one can buy
shares in a Condominium Corporation without at the same time buying a
condominium unit. It expressly allows foreigners to acquire condominium units
and shares in condominium corporations up to not more than 40% of the total and
outstanding capital stock of a Filipino-owned or controlled corporation. Under
this set up, the ownership of the land is legally separated from the unit
itself. The land is owned by a Condominium Corporation and the unit owner is
simply a member in this Condominium Corporation.[5] As long
as 60% of the members of this Condominium Corporation are Filipino, the
remaining members can be foreigners.
Considering that the rights and
liabilities of the parties under the Contract to Sell is covered by the
Condominium Act wherein petitioner as unit owner was simply a member of the
Condominium Corporation and the land remained owned by respondent, then the
constitutional proscription against aliens owning real property does not apply to
the present case. There being no
circumvention of the constitutional prohibition, the Court's pronouncements on
the invalidity of the Contract of Sale should be set aside.
WHEREFORE, the Motion for Partial
Reconsideration is GRANTED.
Accordingly, the Decision dated P2,125,540.00 in excess of the proceeds of the auction sale
delivered to petitioner.
SO ORDERED.
MA. ALICIA AUSTRIA-MARTINEZ
Associate Justice
WE
CONCUR:
CONSUELO
YNARES-SANTIAGO
Associate Justice
Chairperson
|
MINITA V. CHICO-NAZARIO Associate Justice |
ANTONIO EDUARDO B. NACHURA Associate Justice |
RUBEN T. REYES
Associate Justice
ATTESTATION
I attest that the conclusions in
the above Resolution had been reached in consultation before the case was
assigned to the writer of the opinion of the Court’s Division.
CONSUELO YNARES-SANTIAGO
Associate Justice
Chairperson, Third Division
CERTIFICATION
Pursuant to Section 13, Article
VIII of the Constitution, and the Division Chairperson’s Attestation, it is
hereby certified that the conclusions in the above Resolution had been reached
in consultation before the case was assigned to the writer of the opinion of
the Court’s Division.
REYNATO S. PUNO
Chief Justice