ACQUISITION OF LANDS BEFORE THE 1935 PHILIPPINE

CONSTITUTION
I. THE PHILIPPINE BILL OF 1902
After the transfer of sovereignty to the United States by virtue of the Treaty of Paris
between Spain and the United States and in the advent of the American occupation (1898-1935),
the Philippines was governed by means of organic acts which were in the nature of charters
serving as a Constitution of the occupied territory from 1900 to 1935. 1 Among the principal
organic acts of the Philippines was the Act of Congress of July 1, 1902 through which the United
States Congress assumed the administration of the Philippines Islands. This became the basic
foundation of all the subsequent statutes governing public lands, mineral lands, forests, and friar
lands in the Philippines. It was made the duty of the Philippine Government to classify,
according to their agricultural character and productiveness, the public lands other than timber
and mineral lands, and make necessary rules and regulations for the lease, sale, or other
disposition thereof, subject to the approval of the President of the United States.2
The Philippine Bill of 1902 contained provisions, among other things, the open and free
exploration, occupation and purchase of mineral deposits and the land where they may be found.
It declared: All valuable mineral deposits in public lands in the Philippine Islands both surveyed
and unsurveyed to be free and open to exploration, occupation, occupation, and purchase, and the
land in which they are found to occupation and purchase, and the land in which they are found to
occupation and purchase, by citizens of the United States, or of said islands.3

II. ACT No. 926

Act No. 926, otherwise known as the First Philippine Land Act was enacted on October 7, 1903,
to carry out the provisions of Philippine Bill of 1902. This was subsequently repealed by several
laws. Nonetheless, the said Act provides that Citizens of the Philippine Islands, or of the United
1 Narciso Aguilar. Land Titles & Deeds (Jurisprudential Traces in land Registration &
Related Acts). 2005.
2 Federico Cabato. Land Titles & Deeds (A Compendium). 1976.
3 Philippine Bill of 1902 S. 15,

States, were allowed to acquire homesteads of not exceeding sixteen hectares, and to lease not
more than 1,024 hectares. Corporations or like associations duly organized under the laws of
the Philippines, were allowed to purchase or lease not more than 1,024 hectares of public land,
subject to the limitations provided in the said law. Act No. 2874 increased said areas.

III.

THE

1935

PHILIPPINE

CONSTITUTION

AND

APPENDED

ORDINANCES
At the dawn of the Philippine Commonwealth status in 1934, the United States of
America sought to maintain the same rights that Americans then enjoyed by enacting the
Tydings-McDuffie Act, which paved the way for the enactment of the 1935 Constitution which
ought to recognize Philippine independence.
Among the provisions enacted into the 1935 Philippine Constitution, which recognized
the acquisition and ownership of lands by American Citizens is Article XII, Section 1, which
provides:
Section 1. All agricultural, timber, and mineral lands of the public domain, waters,
minerals, coal, petroleum, and other mineral oils, all forces or potential energy, and other
natural resources of the Philippines belong to the State, and their disposition, exploitation,
development, or utilization shall be limited to citizens of the Philippines, or to corporations or
associations at least sixty per centum of the capital of which is owned by such citizens, subject
to any existing right, grant, lease, or concession at the time of the inauguration of the
Government established under this Constitution. Natural resources, with the exception of
public agricultural land, shall not be alienated, and no license, concession, or lease for the
exploitation, development, or utilization of any of the natural resources shall be granted for a
period exceeding twenty-five years, except as to water rights for irrigation, water supply,
fisheries, or industrial uses other than the development of water power, in which cases beneficial
use may be the measure and the limit of the grant.
In Article XVII, Section 1 of said Constitution 4, which is entitled Special Provisions
Effective Upon the Proclamation of the Independence of the Philippines, provides that:
Section 1. Upon the proclamation of the President of the United States recognizing the
independence of the Philippines
4 1935 Philippine Constitution.

(1). The property rights of the United States and the Philippines shall be promptly
adjusted and settled, and all existing property rights of citizens or corporations of the United
States shall be acknowledged, respected, and safeguarded to the same extent as the property
rights of citizens of the Philippines.
On the other hand, the first Ordinance appended to the 1935 Philippine Constitution that
enforced the upkeep of American citizens rights in the country is Article XVII, Section 1 (Par
17). It was ratified by the people in a plebiscite held on May 24, 1935. It provides:
Section 1. Notwithstanding the provisions of foregoing Constitution, pending the final
and complete withdrawal of the sovereignty of the United States over the Philippines.
(17) Citizens and corporations of the United States shall enjoy in the Commonwealth of
the Philippines all the civil rights of the citizens and corporations, respectively, thereof.
In the case of Moss v. Director of Lands,5 Eugene Moss, an American national, acquired a
coconut land in Leyte on January 20, 1945. He applied for registration of the land, but the trial
court denied the application because he was an alien. On appeal, the Supreme Court held that
Moss validly acquired the land under Section 1, Subsection 17 of the Ordinance Appended to the
1935 Philippine Constitution. And, that, upon proclamation of Philippine Independence on July
4, 1946, the 1935 Constitution provides that "all existing property rights of citizens or
corporations of the United States shall be acknowledged, respected, and safeguarded to the same
extent as property right of citizens of the Philippines".
The First Congress of the Philippines adopted a Resolution of both Houses of Congress
an amendment to the 1935 Philippine Constitution known as the Parity Rights Amendment on
September 18, 1946.6 It was approved by the people at the elections held on March 11, 1947. The
Second Ordinance Appended the Constitution reads as follows:
Notwithstanding the provisions of section one, Article Thirteen and section eight,
Article Fourteen, of the foregoing Constitution, during the effectivity of the Executive Agreement
entered into by the President of the Philippines with the President of the United States on the
fourth of July nineteen hundred and forty-six, pursuant to the provisions of Commonwealth Act
Numbered Seven hundred and thirty three, but in no case to extend beyond the third of July,
5 80SCRA269 (1977)
6Antonio Noblejas. Land Titles & Deeds. 1955.

nineteen hundred and seventy-four. The disposition, exploitation, development, and utilization of
all agricultural, timber. and mineral lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces and sources of potential energy, and other natural
resources of the Philippines, and the operation of public utilities, shall, if open to any person, be
open to citizens of the United States and to all forms of business enterprises owned or controlled
directly or indirectly by citizens of the United States in the same manner as to, and under the
same conditions imposed upon, citizens of the Philippines or corporations or associations owned
or controlled by citizens of the Philippines.
In the case of Republic v. Quasha7, William R. Quasha, is an American citizen who
acquired, by purchase, a parcel of land with residential improvements thereon in Forbes Park,
Makati, Rizal, on November 16, 1954. Due to the uncertainty as to the status of his property
under the Parity Amendment after July 3, 1974, Quasha sought a judicial declaration of his
rights. Here, the Supreme Court, remarked that Sections I and 4, Article XIII of the Constitution
reveals the intention of the framers to reserve to Filipinos the disposition, exploitation,
development or utilization of agricultural lands, public, or private, as well as all other natural
resources;" and that "the Parity Amendment was intended to secure parity for United States
citizens only in two matters: (1) exploitation, development and utilization of public lands, and
other natural resources of the Philippines; and (2) the operation of public utilities but not the
acquisition or exploitation of private agricultural lands, about which not a word is found in the
Parity Amendment." Finally, the Court held that under the "Parity Amendment" to our
Constitution, citizens of the United States and corporations and business enterprises owned or
controlled by them cannot acquire and own, save in case of hereditary succession, private
agricultural lands in the Philippines and that all other rights acquired by them under said
Amendment will expire on 3 July 1974. Quasha's right to hold the property, therefore, should
cease as of July 3, 1974. Prior to the expiration date, the then President Ferdinand E. Marcos
declared that, as a matter of national policy and amity with the United States, American citizens
and corporations owned and controlled by them shall continue holding those private lands
acquired by them until July 4, 1975, provided that, during the intervening period they divest
themselves thereof by transferring their ownership to qualified persons and entities. For this

7 46 SCRA (1972)

purpose, the President authorized the National Development Corporation to acquire, hold,
develop, and dispose of these lands."

In these cases, a distinction should be made as to when the acquisition of property occurred. If
the property had been acquired prior to the effectivity of the Constitution (November 15, 1935,
the application for the registration of property of an alien should be granted upon proof of fee
simple title thereto.8 If the acquisition was made after the effectivity of the Constitution, then, the
alien cannot acquire a valid title thereto based on this exception under the present law.

8 PNB v. Ah Sing, 69 Phil. 611