MEMORANDUM

FOR : SBF

FROM : J. Cayetano

RE : Naturalization of Ku Ching

DATE : February 26, 2019

Facts:

Kung Ching was born in the Philippines in the year 1965 of Chinese
parents, Pu Ching and Fu Ching. His mother, Fu Ching, was validly
naturalized as a Filipino Citizen in 1983. Kung Ching now comes to us
asking if he can be a Filipino by electing to be one under Article IV of the
1987 Constitution.

Issue:

Whether Kung Ching can elect to be a Filipino under Article IV of

the 1987 Constitution

Conclusion:

Kung Ching cannot elect to be a Filipino under Article IV of the

1987 Constitution. The law provides for a list of who are classified as
Philippine citizens.

Under Section 1, Article IV of the 1987 Constitution, it states that:

Sec. 1. The following are citizens of the Philippines:

(1) Those who are citizens of the Philippines at the time of the
adoption of this Constitution;
(2) Those whose fathers or mothers are citizens of the Philippines;
(3) Those born before January 17, 1973, of Filipino mothers, who
elect Philippine citizenship upon reaching the age of majority;
and
(4) Those who are naturalized in accordance with law.
 Kung Ching does not fall within any of the ones enumerated above.
He was not a Filipino citizen at the time the 1987 Constitution was
adopted. Also, his parents were both Chinese when he was born, and he
is not a naturalized citizen. Considering that he was born before January
17, 1973, he still cannot elect to be a citizen under the 1987 Constitution
since his mother was only naturalized in 1983.

Recommendation:

It is respectfully recommended to discuss with the client the

circumstances barring him from electing to be a Filipino citizen under the
1987 Constitution. However, this does not prohibit him from becoming a
citizen of the Philippines. The client may opt to undergo naturalization in
accordance with law. If so, it is respectfully recommended to discuss with
the client the process of naturalization as well as the necessary
qualifications in order to be a naturalized Filipino citizen.
MEMORANDUM

FOR : SBF

FROM : J. Cayetano

RE : Acquisition of Land by an Alien

DATE : February 26, 2019

Facts:

Jacob Perez, a Columbian, is a billionaire who wants to invest in

the Philippines. He wants to purchase and develop a resort on a 20-hectar
land in Batangas. He now seeks help from us, asking how to go about it.

Issue/s:

Can Jacob Perez purchase land in Batangas despite not being a

citizen of the Philippines?

Conclusion:

Jacob Perez, who is an alien, is disqualified from directly

purchasing lands in the Philippines. The Constitution prohibits aliens from
acquiring ownership of alienable lands of public domain.

Section 7, Article XII of the 1987 Constitution states:

Save in cases of hereditary succession, no
private lands shall be transferred or conveyed except
to individuals, corporations, or associations qualified
to acquire or hold lands of the public domain.

The primary purpose of the constitutional prohibition is the

conservation of the national patrimony.1 However, this prohibition is
not absolute. There are certain circumstances wherein the law
allows aliens to own alienable lands in the Philippines:

1 Muller v. Muller, G.R. No. 149615, August 29, 2006, 500 SCRA 65, 71.
 1. Alien heirs as transferees in case of intestate succession;
2. Former natural-born citizens of the Republic of the
Philippines, as transferees, with certain legal restrictions;
and
3. Corporations incorporated in the Republic of the Philippines,
with 60% Filipino ownership.

Since it is not stated in the facts that Jacob Perez is either

an intestate heir or a former natural-born citizen, the only way that
he may be able to purchase and develop a resort on a 20-hectar
land in Batangas is through an incorporated corporation that is 60%
Filipino owned.

Recommendation:

It is respectfully recommended that counsel ascertain whether

Jacob Perez is an intestate heir of a Filipino or a former Filipino citizen. If
Jacob Perez is neither of the two aforementioned, it is recommended to
discuss with the client the option to enter into or invest in a corporation
that is at least 60% Filipino owned engaged in the business of developing
resorts. Such corporation could then purchase the land in Batangas and
develop it into a resort.
MEMORANDUM

FOR : SBF

FROM : J. Cayetano

RE : Donation

DATE : February 26, 2019

Facts:

Lucio King and Laura King are parents of Jenny, who is married to
Lawrence Kong. Lucio and Laura King come to us asking if they can give
a Lamborghini Huracan and a ten-hectare land to their daughter without
Lawrence Kong having claim to it.

Issue:

Whether Lucio and Laura King can donate to their daughter without
Lawrence Kong having claim to it

Conclusion:

Lucio King and Laura King can donate to their daughter without
Lawrence Kong having claim to it through a gratuitous donation, provided
that there is no marriage settlement stating that anything acquired during
their marriage forms part of the community property. In the event that the
property regime of Jenny and Lawrence Kong is absolute community
property or conjugal partnership of gains, Article 92(1)2 or Article 109(2)3

2 FAMILY CODE, Article 92 states:

Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title by either spouse, and the
fruits as well as the income thereof, if any, unless it is expressly provided by the
donor, testator or grantor that they shall form part of the community property;
xxxx
3 FAMILY CODE, Article 109 states:
Art 109. The following shall be the exclusive property of each spouse:
xxxx
(2) That which each acquires during the marriage by gratuitous title;
xxxx
of the Family Code, as the case may be, would allow for a property
acquired during the marriage through gratuitous title to be excluded from
community property and be part of exclusive property.

Recommendation:

It is respectfully recommended to ascertain the property regime of

Jenny and Lawrence Kong. If it is found that the property regime of the
said spouses is either absolute community property or conjugal
partnership of gains counsel may then proceed to discuss with the clients
the process of a gratuitous donation of the stated properties to their
daughter. However, it is noteworthy to discuss with the client, other legal
matters with regard to the extent of the donation. It is essential to take
note if the clients have other heirs as this may be a limitation to the
amount of the donation, because such may be prejudicial to certain rights
of heirs, if any.