Marcos inks law liberalizing lease of private lands by foreign investors

President Ferdinand ''Bongbong'' Marcos Jr. has signed into law the measure liberalizing the lease of private lands by foreign investors, establishing the stability of long-term lease contracts.

Republic Act No. 12252 amended Republic Act No. 7652, which is also known as the Investors Lease Act.

Any foreign investor investing in the Philippines shall be allowed to lease private lands in accordance with the laws of the Republic of the Philippines subject to the following conditions:

• The aggregate period of the lease contract shall not exceed 99 years: Provided, That upon the recommendation of the Fiscal Incentives Review Board (FIRB) or other relevant government agencies, the President of the Philippines may impose a shorter lease period for investors engaged in vital services or industries considered as critical infrastructure, in the interest of national security or pursuant to government-identified priorities for national development;
• The leased area shall be used solely for the purpose of the approved and registered investment upon the mutual agreement of the parties;
• The leased premises shall comprise such area as may reasonably be required for the purpose of the approved and registered investment subject however to the Comprehensive Agrarian Reform Law and the Local Government Code; and
• The foreign investor must have an approved and registered investment under Philippine laws.

When it comes to limitations, foreign individuals, corporations, associations or partnerships not otherwise investing in the Philippines as defined herein shall continue to be covered by Presidential Decree No. 471 and other existing laws on lease of lands to foreigners.

Further, the withdrawal of the approved and registered investment in the Philippines within the period of the lease contract entered into under this Act, or use of the leased area for the purpose other than that authorized, shall warrant the ipso facto termination of the lease contract without prejudice to the right of the lessor to be compensated for the damages the lessor may have suffered thereby.

A new Section 5-A is hereby inserted after Section 5 of Republic Act No. 7652, which will read as follows: Unless there is an express prohibition in the lease contract, the lessee may sublet the property with the consent of the lessor.

Also, a new Section 5-B is hereby inserted after the new Section 5-A of Republic Act No. 7652, stating that sublease contracts shall be registered with the Registry of Deeds and annotated on the Certificate of Title to the land.

The law was signed on September 3. — BAP, GMA Integrated News