QuestionsQuestions (PRESIDENTIAL DECREE NO. 471)
To fix a reasonable maximum period for leases of private lands to aliens/alien-owned entities and to enforce compliance by penalizing violations, considering the constitutional ban on acquisition of private lands by aliens.
Twenty-five (25) years, with a possible renewal for another twenty-five (25) years.
No. Renewal is allowed only upon mutual agreement of both the lessor and the lessee for another period of twenty-five (25) years.
It applies to aliens and to alien-owned corporations, associations, or entities not qualified to acquire private lands in the Philippines.
Any contract or agreement executed in violation of the decree is null and void ab initio.
It means the contract is treated as having no legal effect from the beginning, as if it never had validity.
A fine of not less than five hundred (₱500) nor more than one thousand pesos (₱1,000), or imprisonment of from six months to one year, or both, at the discretion of the court.
The president or managers and the directors or trustees of corporations, associations, or partnerships violating PD 471 shall be criminally liable in lieu of the general punishment provided for both parties.
As a violation of the maximum duration limit, the agreement would be null and void ab initio, and parties (or the relevant corporate officers if applicable) may be punished under Section 2.
Because leases of unreasonably long duration could effectively amount to a virtual transfer of ownership, which would contradict the constitutional prohibition.
That very long leases may function like a de facto transfer of ownership, defeating the constitutional intent.
They are null and void ab initio, and parties are subject to criminal penalties under the decree.
It took effect immediately upon issuance.
It conditions renewal on the consent of both parties; without mutual agreement, the lease cannot validly be extended beyond the first 25-year maximum period.
No, as long as the term and renewal conform to the maximum allowable duration (25 years renewable for another 25 years upon mutual agreement).