Lease agreement in the Philippines

Are you asking about a 25 + 25 year lease?

We purchased property here in La Union, the titled lot went in my Filipino partners name and a long term lease and the house went in my name as well as encumbering the title with the lease in my name, as for a few documents? We sat there for over 2 hours signing and initialing all the docs 3 copies each.

The Attorney was P20K. That was 7 years ago.

Good luck.

Cheers, Steve.

    Are you asking about a 25 + 25 year lease?
We purchased property here in La Union, the titled lot went in my Filipino partners name and a long term lease and the house went in my name as well as encumbering the title with the lease in my name, as for a few documents? We sat there for over 2 hours signing and initialing all the docs 3 copies each.
The Attorney was P20K. That was 7 years ago.
Good luck.

Cheers, Steve.
   

    -@bigpearl

Thanks for your return.

I'm actually looking for something in Boracay (Condominium) but price seems very high and maintenance not very clear about real cost.

2 bedroom condo around 200K$ same in W europe

Can i need renting at this price or better buy ?

Thanks a lot

Pascal

Hi,

I have a condo in Boracay and I bought it for 6.8M PHP 7 years ago. (110k EUR). Lots of people see no future in the rental business and want to sell their condo. A second hand condo is 7M to 8M. A new one is 10M. These are all one bedroom units. 2 bedroom units are rare and 14 to 15M. Most units have sea view and golf course view.

I would only buy a unit if your plan is to live in Boracay for at least 6 month every year. Otherwise it might be better to make a long term rental. Around 35k PHP / month + utilities.

Andy from Boracay

@martazietara i lease land, and it all depends on the content of the lease, my lease is 4 pages long, normal 12 text, and I wrote it myself, also I had an attorney look at it, he changed a few items, and it cost me 2000 pesos to produce, and the lease was notarized when a client bought the lease, another 2000 pesos, for 7 copies.  remember a lease is on legal paper, not A4.  2 copies for the attorney, 2 copies for the client, 2 copies for me, and 1 copy i send of shore for safe keeping.

    Hi,
I have a condo in Boracay and I bought it for 6.8M PHP 7 years ago. (110k EUR). Lots of people see no future in the rental business and want to sell their condo. A second hand condo is 7M to 8M. A new one is 10M. These are all one bedroom units. 2 bedroom units are rare and 14 to 15M. Most units have sea view and golf course view.
I would only buy a unit if your plan is to live in Boracay for at least 6 month every year. Otherwise it might be better to make a long term rental. Around 35k PHP / month + utilities.
Andy from Boracay
   

    -@Andy_1963

Also renting is maybe a good idea, because i've appartement and garage(s) actually in France (Alps area), and i can use this to pay my Boracay home.

.

@bigpearl

Thank you for your replay and information.

Yes Im asking about 25+25

@micky1boy

Hello,

Thank you for your response.

I bought land in the name of my Filipina friend. On which I also build restaurant.  We want to prepare documents. The land and the restaurant are in her name, but I am finalising it all for my safety and the safety of my friend. With clause to protect me in case of any complications or if she dies. We also want to notarise a lease agreement for 50 years and for these three documents, lawyers in Manila told me the cost is 150,000 pesos, which seems to be a huge amount to pay. That's why I'm looking for information

@martazietara ok you being a foreigner you can not own the land**as yet** but you can own the building situated on the land.  there are 2 ways to go.

1 prepare a lease yourself, between you and your friend.  where you own the lease on the land.  i have my lease stating, the maximum allowed for under Philippine law with and automatic renewal at no cost for 25 years, allowed by Philippine law.

This way you own the building, and the lease.  your friend owns the business, unless you have a business visa,  and allowed to work in the Philippines.  get all your ducks in a row, have all the paperwork prepared, and when you think you have it right, go to a local attorney and as him to notorise it, THE ATTORNEY CAN NOT notorize it without reading it.  he will then advise on any changes,  you alter the document and take it back.  this is when you have the Doc notorized.  the cost?? will vary but should not be more than 2 to 3000 pesos..  Canvas around if you need to,  the attorney is only notarizing a document not preparing it.

look at other docs online, tailor make your own document. and remember to have the document when it is out of final draft printed by laser printer on Legal paper.  legal paper is longer than A4  good luck, **ps don't trust anyone except yourself**

If you're not planning to live there full time I'd say it's pretty risky. Standards and dependability are far different here than the west. Even if you think you're sure be double sure.

@micky1boyYes, I know I shouldn't trust anyone. Even though my friend is a wonderful person, anything can happen in life. Thank you very much for the information and advice. If you don't mind Could I ask you a few more questions? I don't have a business visa because it is very expensive from what I know.So I will simply stay on a visa that will be extended.Plus, I'm not in the Philippines at the moment. An architect- engineer is responsible for the construction. When construction began, a building permit was needed and I wasn't there at the time and the permit is on  my friend name. Can I still change it so that the building is on me? I'm not sure how to handle this properly. I'm going to the Philippines at the end of August and I would like to arrange all these documents during my stay there. For my pease of mind  until I move permanently. Also, when I was talking to a lawyer from Manila, he told me that in order to be the full owner of the building (restaurant), I must have 25 million pesos, otherwise my friend will own 60% and I will own 40%. Do you know if this is true? I'm looking for information everywhere but it's hard to find anything specific. Thank you so much.  Really appreciate it your help!

Never understand people will to throw away their hard-earned money to pay for things that they do not and can not own, and then thinking a contract is somehow going to save them in that same country.

Sure you can own the structure on top of the land which you don't own, but land trumps structure. No court in the Philippines is going to side with a foreigner over a local. Best bet is to not get involved in these matters in the first place unless you are a husband or wife to a PH citizen, and even then, there are endless stories of things going sideways.

@martazietara Of course i will help you as best i can,  i will answer this as if it was me, there is no advice given,  it is what i would do.

1st the attorney in the Philippines is correct IF you go down his route.  he is explaining you need a corporation, where Filipinos need to hold 60% of the shares.  for me personally, this is a shit idea, because a single person can out vote you, and sell everything for a peso and leave me with nothing,  i would set up a corporation where no Filipino knows each other, and split the percentage around those, where i would hold the majority ((((A LOT OF WORK FOR WHAT)))) this is not the way i would work it.

1) i would talk with my friend, and explain i am investing my money into this project.  the land is under her name, and she leases the land to me for the legal period. (document needed) remember, when the lease is up the owner of the land claims ALL even your panties which is on that land. so with that in mind, the lease would be as long as it can be, plus if the friend is a true friend they will understand.  you need the lease to include that in the event of your death the lease will pass to xxxx.

and that you can build on the land depending on the government allocation.  ie copra/farm residential or commercial ((all have different payment scales to the government taxes.

2) the property will be built under your name* as a foreigner can own property* and you would then lease the section for the restaurant to your friend.

3) depending on the tax to the local municipal this has to be paid for every year, and if you pay in advance you get a discount, if you pay late you are fined.

4) for a business you need permits and BIR tax.  separate items.  but remember there is so much jealousy with the locals, you will need to be 100% legal or fines will fly into your door.

I am actually in the Philippines in August for 2 months, if you want to come and chat please do, i live at Binang and Cadio Resort Northern Samar. my manageress or i can go over all the documents you would require.

@porkhips

You don't have to understand my life decisions. I prefer to invest my hard-earned money where I want to live peacefully. Than work all my life like a rat from morning to evening with no time for private life and pleasures. Having two weeks off a year for a holiday. I'm not interested in such a life. Paying colossal taxes and living in a cardboard house and paying mortgages for the rest of my life. And I am a happily single woman and not married to any Filipino man. I invest in myself. Thank you for your advice. 😉

@porkhips hi porkhips, actually i am going through a long court case trying to get my land back to me owing to the no payment of a lease for over 3 years, and the lease is a foreigner who ended up dissolution by the Philippines, or he died through covid, i do not know which, as he does not respond to letters email and the mobile phone is disconnected. you are right when you say about investing your money, i would keep my money and just enjoy the visits.  but my situation is different,  i was married for 40 years to the most wonderful woman to walk this planet, she died from cancer, i bieleve for the vaccine, and i made her a promise to sell everything and give our children a good start in life, 1/3rd to them each and 1/3 to me.

we had a business for over 25 years in the Philippines, and a home for over 35 years. I just want to enjoy life and just see the Philippines or the world.

@micky1boy

I'm at work now so I'm reading all this quickly. I will feel it more carefully at home. Thank you very much for your comprehensive answer! Can I ask you for your email? For better contact with you or if I have more questions. I would prefer to do it outside of an online site where everyone can read it.

Thank you.

Marta

i have sent you my email, i hope it has reached you

i am happy to help anyone, because i have gone through the heart ache and i hope i can stop others from going down the wrong path of throwing good money after bad.  also to enjoy the Philippines, as it is a great place, but it does need people to understand it.  you can not look through the eyes of a none Filipino,  you have to understand there chilled lay back ways.  once you understand this, you will fall in love with the place more than you are at this moment.

@micky1boy

Ohhh yes, it will be the hardest thing to get used to their laid-back lifestyle. But that's actually why I decided to live there because. I'm tired of living in Europe and spending all my time at work. I don't have time for my own life. I want to enjoy the rest of my life and use it freely, not like a rat in the European system. I will also have to learn patience. I know that Filipinos are never in a hurry to do anything. I like to have everything done on time and well organised. Thank so much! Really appreciate your help. I just saved your email and your address in the Philippines. How to catch you there? I will be on the island of Romblon, Romblon the capital of Tablas and Sibuyan. That's where I bought my land. This weekend I will try to write all these documents myself. Still I will probably need your help or advice. 

Btw I'm very sorry for your loss. I read somewhere in one of your posts that you lost your beloved wife. 😔

    Never understand people will to throw away their hard-earned money to pay for things that they do not and can not own, and then thinking a contract is somehow going to save them in that same country.
Sure you can own the structure on top of the land which you don't own, but land trumps structure. No court in the Philippines is going to side with a foreigner over a local. Best bet is to not get involved in these matters in the first place unless you are a husband or wife to a PH citizen, and even then, there are endless stories of things going sideways.
   

    -@porkhips

The OP would do well to heed your advice porkhips. It's a train wreck waiting to happen. Not if but when. Countless precedents that we can draw upon in a country with an incredibly opaque legal system.

    @micky1boy
Ohhh yes, it will be the hardest thing to get used to their laid-back lifestyle. But that's actually why I decided to live there because. I'm tired of living in Europe and spending all my time at work. I don't have time for my own life. I want to enjoy the rest of my life and use it freely, not like a rat in the European system. I will also have to learn patience. I know that Filipinos are never in a hurry to do anything. I like to have everything done on time and well organised. Thank so much! Really appreciate your help. I just saved your email and your address in the Philippines. How to catch you there? I will be on the island of Romblon, Romblon the capital of Tablas and Sibuyan. That's where I bought my land. This weekend I will try to write all these documents myself. Still I will probably need your help or advice. 

   

    -@martazietara

    @micky1boy
Ohhh yes, it will be the hardest thing to get used to their laid-back lifestyle. But that's actually why I decided to live there because. I'm tired of living in Europe and spending all my time at work. I don't have time for my own life. I want to enjoy the rest of my life and use it freely, not like a rat in the European system. I will also have to learn patience. I know that Filipinos are never in a hurry to do anything. I like to have everything done on time and well organised. Thank so much! Really appreciate your help. I just saved your email and your address in the Philippines. How to catch you there? I will be on the island of Romblon, Romblon the capital of Tablas and Sibuyan. That's where I bought my land. This weekend I will try to write all these documents myself. Still I will probably need your help or advice. 

   

    -@martazietara

@reallydamngoodguy Thank you. I plan to live there and die there 😁Thank you

@micky1boy

Ohhh  Sorry, I mixed up the posts, it wasn't your wife who died. 🙈I can't delete post.

    @reallydamngoodguy Thank you. I plan to live there and die there 😁Thank you
   

    -@martazietara

And in between those two certanties of life you might wish to plan for bankruptcy

As we all know the only money you inject into the Philippines is funds you can afford to lose/walk away from and very silly if you think otherwise. Like an injection once it's in you can't get it back.

To the OP you say you are going to draw up the documents, fine a draft but you will need an attorney here to cross the t's and dot the I's, polish it and make it a legal and binding.

Attorney's here are not expensive and the one you consulted in Manila was taking the piss,,,,,,,

I will also say that before you ventured into your foray where was your attorney from day one?

Get used to that here and good luck.

Cheers, Steve.

@Lotus Eater

Don't get me wrong, but I think it's none of your business how I spend my money and whether I go bankrupt or not. My decisions on how I want to lead my life. We'll all end up in one place anyway. Thanks for your comment.

@Lotus Eater

I also see that you are from England, and I have been living in this country for 20 years, I am also a British citizen, I have two citizenships, also Polish. England is coming to an end. This country is run by Muslims. So I'd rather go bankrupt someday in the Philippines than pay my money for a country that has no future anymore. And it's safer in the Philippines than in England.

martazietara said to Lotus Eater I also see that you are from England, and I have been living in this country for 20 years, I am also a British citizen, I have two citizenships, also Polish. England is coming to an end. This country is run by Muslims. So I'd rather go bankrupt someday in the Philippines than pay my money for a country that has no future anymore. And it's safer in the Philippines than in England.

**************************

Percentage wise the Muslim population is almost the same for England & Philippines.

You said England has no future, well the Philippines never had a future to lose. As far as safety, you pick your neighbors according to where you want to live.

Have you ever been to the Philippines? So why do you want to move to the Philippines? Seems an odd choice.

@Enzyte Bob

Maybe the Muslim population is the same in the Philippines as in the UK, but entire  UK is 1 island and the Philippines has over 7,000 islands and 85 million Filipinos are Catholics. So what are you talking about? Most of the Muslim people live in Mondanao. Do you also think I'm so stupid that I saw a picture of the beautiful Philippines on a postcard and wanted to live there? I was there many times before I made my decision. And I know exactly where I want to live. Crime on my island is 0, in England I'm afraid to go out at night. And my Filipino neighbors here are wonderful people. I already have land here and I'm building restaurants on it. And my decisions may seem odd to you, but I don't think I have to explain them to strangers. You don't know my life situation and you probably never will. But thanks for your opinion.

    @Lotus EaterI also see that you are from England, and I have been living in this country for 20 years, I am also a British citizen, I have two citizenships, also Polish. England is coming to an end. This country is run by Muslims. So I'd rather go bankrupt someday in the Philippines than pay my money for a country that has no future anymore. And it's safer in the Philippines than in England.         -@martazietara

"England is coming to an end." That's what many Poles thought about their native land and came to the UK to improve their standard of living. Some have settled here and some have returned to Poland as the economy flourishes ( don't forget to thank UK PLC for the second largest dollop of aid your birthplace received after joining the beloved EU.)

Back to the topic in hand. I have heard lots of good things about Romblon but have yet to visit that beautiful island. An island with a population of 40,000 souls whose main dish is Kinilaw, a dish smothered in vinegar ( it would not be so bad if it was white wine vinegar.) Perhaps though preferable to Polish cuisine: there is not one Polish restaurant in my home city of Bath renowned for its cosmopolitan gastronomy. The average income of a Romblon resident is about $2,500 per annum. The number of tourists that visit the island are limited due to poor travel infrastructure. Where exactly is your market? Perhaps you should do the maths before asking questions on this forum about lease agreements.

By the way note Bobs change of photograph - there is only one way to find out a womans true hair colour..

@martazietara

Yes it is your money and life and your choice how you spend your hard earnt cash and the life you choose to live, in saying that you did come to this forum seeking advice/thoughts on your situation and some times we don't like what we hear but take it on the chin.

Can I ask how long you studied this island and legalities before you spent money? If you have already purchased that land in your friends name surely there was an attorney involve, why not use that attorney for setting up your lease and what goes in whose name?

I'm a newcomer starting in 2010 and working for an international film company that paid US bucks. Met my better half in 2011. We knew we would end up retiring back here but spent 6 years back in Oz working and in that time I studied long and hard property ownership, long term leases, company laws here and even naturalization. Leasing for us was the way to go.

I wanted a sea change (absolute beachfront) after living on the farm for 25 years. We searched for 3 years and many trips back and forward looking at over priced crap but eventually found a winner, we already had lease docs created as well as being able to encumber the land with the lease and buildings in my name.

Met an attorney who perused the lease, she penciled in a few changes and created the lease ready for the purchase through the R/E agent and owner before we paid a deposit. Once signed we paid the deposit and 3 months later settled once all the paperwork went through.

The lease states that the land purchase price was the lease cost for 25 + 25 and the land in the partners name, lots of other things including what happens to the lease and property if I push up the daisies, a dozen other clauses too long to talk about. Been living here 5 years now in our bit of paradise and not looked back.

Sorry to be blunt but if you already purchased the property in your friends name with no due diligence? To me that's putting the cart before the horse. Good luck.

OMO.

Cheers, Steve.

@Lotus Eater

Well, I'm not going to stay on this island as a millionaire. I'm more interested in spending my life in peace and in a relaxed way. Not like now where I live in the country of houses made of paper with damp on the walls worth millions. Where I will have to pay off the mortgage for the rest of my life, pay huge tax and everything is terribly expensive for the rest of my life and work from day to night with no time for my own private life. Plus the weather is always terrible here. I have been visiting Romblon every year since 2019, I also spent my first lockdown there. I know it's a small island and there aren't many tourists there.  That's why I chose this island. It's beautiful and the locals are wonderful people. Infrastructure improves over time. There is a better and better way to get to these islands. You can fly from Manila and you can come by ferry. I'm constantly studying what I should know about life in the Philippines as a foreigner. And the fact that I have already bought the land on my filipino friend name is  only my decision and I don't have to explain it to anyone. As I mentioned somewhere before, no one knows my life situation and why I make certain decisions and not others. Out of pure curiosity, I asked about the cost of lease agreement. I had the opportunity to talk to lawyer who gave me a ridiculous amount of money for preparing the document. I have certain agreements between me and my friend, but I also don't have to explain it to anyone. I asked a simple question here and now everyone is trying to edify me. I know exactly what I want to do with my life in the Philippines. Thank you anyway for your comments and advise.

Sad as it seems you can't read, you asked those costs and I and another gave you answers based on our experiences.

I asked you already why you have not consulted the attorney you used to purchase that property but you seem to feel persecuted because you don't like the answers from the members that you came here to seek help/advice.

You say you purchased the land in your friends name and you have an agreement with that person,,,,,, was that ratified legally?

Research and homework wins the day, seems you missed those 2 very important steps and sorry to sound harsh and cynical but you did ask.

Good luck and enjoy the journey.

Cheers, Steve. 

martazietara said. . . . I had the opportunity to talk to lawyer who gave me a ridiculous amount of money for preparing the document. I have certain agreements between me and my friend, but I also don't have to explain it to anyone.

*************************

I'm surprised that no one has mention this, there is a two tier system for goods & services. Filipino's get one price, Expat's get a different price (gouging).

Yes Bob we are all well aware of the white man tax but what gets me? 2 things.

The OP came here to this forum asking for help and seems to be having a hissy fit because she doesn't like the answers/suggestions offered and no thankyou to those that supplied costs for an attorney as asked.

The OP seems to have jumped in boots and all and not considered the ramifications of what most would consider reckless....... Very possible the property has already been sold or the new owner of that property gives the OP the short shift and will sign nothing. The old saying "fools rush in"

OMO but I would have done my due diligence before buying anything,,,,,, especially here.

Cheers, Steve.

@bigpearl

I asked simple questions. And virtually none of you here responded to it. You all just write me your insinuations about how I will be cheated and why I am putting my hard-earned money here into something that will never be mine. I won't take it to my grave. So I don't mind. I didn't ask for such advice. So why are you surprised at my frustration? Moreover, not all Filipinos are bad people and fraudsters. Bob even asked if I had ever been to the Philippines. What a ridiculous question? Maybe you've come to the wrong place and have bad experiences with Filipinos. However, I think my Filipino friends are wonderful person. They are doing everything in their power to make sure I can settle in there safely. And my land hasn't been sold so don't call me fool. My friend's mum works in the land registry for the Philippine government. She checked all the lands and documents for me that I was potentially going to purchase. She eliminated all the suspects and we finally found a clean one that she allowed me to purchase. I know the risk of my decisions. There's a lot of stuff that I just don't want to share online with strangers. Because that's how you kill my dreams. I trust my friend. Thank you for your advice and suggestions.. We need to prepare some legal documents so that I can live there peacefully. Thank you again for y all comments.

Cheers, Marta

Golly talk about a drama queen.

Your OP asked a question and in post # 2 I responded with what it cost us for the property purchase and the land lease,,,,,,, remember?

I did criticize you for not having your ducks in a row before you purchased and rightly so, all what you are now bleating about should have been in place day one.

Good luck, seems you will need some.

Cheers, Steve.

@martazietara    I asked simple questions. And virtually none of you here responded to it. You all just write me your insinuations about how I will be cheated and why I am putting my hard-earned money here into something that will never be mine. I won't take it to my grave. So I don't mind. I didn't ask for such advice. So why are you surprised at my frustration? Moreover, not all Filipinos are bad people and fraudsters. Bob even asked if I had ever been to the Philippines. What a ridiculous question? Maybe you've come to the wrong place and have bad experiences with Filipinos. However, I think my Filipino friends are wonderful person. They are doing everything in their power to make sure I can settle in there safely. And my land hasn't been sold so don't call me fool. My friend's mum works in the land registry for the Philippine government. She checked all the lands and documents for me that I was potentially going to purchase. She eliminated all the suspects and we finally found a clean one that she allowed me to purchase. I know the risk of my decisions. There's a lot of stuff that I just don't want to share online with strangers. Because that's how you kill my dreams. I trust my friend. Thank you for your advice and suggestions.. We need to prepare some legal documents so that I can live there peacefully. Thank you again for y all comments. Cheers, Marta

************************

You ask questions and don't like the answers and advice.

So Noob ask them again and get a different answer.