Leasing land to buy later.

[CMR 0]

The following was in the middle of a long thread about expats buying or leasing land.

 

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I was doing corporate services before with Ernst & Young and we figured out the best way to circumvent this restriction for our foreign clients legally. A foreigner can enter into a long-term irrevocable land lease (25-50 years) which provides a bargain option at the end of the term to purchase the lot at a bargain price or better yet stipulate that the lot will be automatically transferred to the lessee if the law already permits foreign ownership. This is what we advised Lexmark and now they are constructing a multi-billion building in Cebu Business Park. But the foreigner doesn

[eyeout4u 0]

The house or building may be foreign owned. With the land, one could do a 50 year lease with a 25 year option to renew. Pay the negotiated full contract price with the stipulation that all lease payments are prepaid. Another contingency is that prior to contract expiration, that if foreign ownership is then allowed, that the land be transferrable to the foreign owner. If foreign ownership is not allowed, the transfer could then be done to the owner's Filipina wife, his Filipino children, a Filipino charity, a foundation, or a trust fund that the owner has established or likes.

 

I would think this contract would meet the intent of Philippine contract law, as interpreted by a judge, and would also meet the wishes of a foreign owner who probably won't live for 75 years, but would like his wishes to be honored after he passes.