Dacion en Pago

by Prime Radar Team   July 16, 2015

Question: Hello PRIME! I’ve loaned in this particular bank amounting Php 7 million to start up my own laundry business and to secure my payment, I mortgaged my property, an open lot, located in Malate, Manila with 500 square meters. I was given 18 months of installment to pay my debt and as of now, I know that I will fail to meet my obligation. Here is my question before jumping to a conclusion. Can I offer half of my property as a payment to the bank?  Answer: Greetings! Yes, you can use your property as payment for your remaining debt in the bank as long as you and your creditor will settle into an agreement. In the Philippine law, there is what we call ‘Dacion en Pago’ which is defined as “a special mode of payment” where you, as the debtor, can offer other means of payment to the creditor, in your case half of your property. In simpler term, Dacion en pago is a payment in a form or property which is left or given to the lender to satisfy an obligation.

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Can foreigners acquire lands in the Philippines?
by Prime Radar Team  March 10, 2014
Can foreigners acquire lands in the Philippines?

Generally No. In case of foreigners they may lease for a period of 25 years renewable for another 25 years. In case of foreign investors, they may lease for 50 years renewable for another 25 years wherein the purpose is solely for investment. They can only acquire in the following cases: - Purchase before the 1935 Constitution - Acquisition in case of hereditary succession if the foreigner is a legal heir - Purchase in a condominium not exceeding 40% interest in the project (60% interest is the minimum allocation for Filipinos) - Purchase by former natural born Filipino citizen under...

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