Download whether it is movable or immovable

Choice of Law in
Property (p.301)
1. what legal system
should control?
2. To what extent?
If the subject in dispute involves property,
important to determine whether it is movable
or immovable

Immovable property is regulated by the lex situs
(law of the place where the property is situated)


Why? It is an isolated object of rights. The
connection between the interested persons is the
immovable itself, not the parties
Movable property: may be lex situs, lex
domicilii, or lex loci actus
Movables


Lex domicilii- owner's domicile is used because
by nature, the property is moved from place to
place.
Lex Situs- Country where the property is
situated has sole power to decide the validity of
the transactions.


Also because of legitimate expectations
Lex Loci Actus- the law of the place where the
act occurred that gave rise to the legal claim; or
has the most real connection with the transfer
What does our law say?

Art.414 of Civil Code:

All things which are or may be the object of
appropriation are considered either:



Immovable or real property; or
Movable or personal property
Article 16:

Real property and personal property are “subject to
the law of the country where it is situated” -Lex situs
Capacity to Transfer or Acquire
Property


Governed by the law of the place where the property is
located (Lex Situs)
Llantino v Co Liong Chong (1990)

Gregorio and Llantino own commercial land in
Catanduanes

They leased it to Molina- then a Chinese national

Llantinos claim the lease period of 13 years was to
expire in 1967

But Molina- now a Filipino citizen, had constructed a
commercial building with a lease contract for 60 years

Llantinos now file a complant to quiet title
Issue: whether Molina could sub-lease the property
(considering that she was a Chinese national at the
time)
Ruling:



What is only prohibited is leasing in excess of 50 years
and preventing Filipino owner from selling the property
In the contract, nothing prevents the Llantinos from
disposing the property subject to the rights of Molina
Even so, sale of residential land to an alien who
subsequently acquires Filipino citizenship is valid.
Cheeseman v IAC




Thomas(American) and Criselda(Filipino)
Cheesman were married in1970 but separated
in 1981
Before separation, Altares conveyed
unregistered land to to WIFE.
Tax declarations were made only in the name of
the WIFE. WIFE sold it to Padilla.
HUSBAND is now suing wife and Padilla
praying to annul the sale




Issue: Can HUSBAND claim interest in land?
Ruling: No, Padilla's rights were impaired
because there was FAMEN. She is an
innocent buyer for value
1973 consti disqualifies aliens from acquiring
private lands
By attempting to acquire interest, he violated
the constitution rendering the sale as to him
void.
Intrinsic and Extrinic validity of
conveyances

The formalities of a contract to convey
property are governed by Lex Situs


I.e registration of title
The validity and effect of conveyance of
property are treated as questions of property
rather than contract
Exception to Lex Situs (3)
1. The transaction does not affect transfer of title to or
ownership of land
- the proper law is lex intentionis or lex voluntatis (law of
place voluntarily selected or contracted)
2. If real property is offered as security in performing an
obligation (loan)
- the mortgage of the land is lex situs but the loan contract is
governed by the rules of contracts
3. Testate and intestate succession and capacity to succeed
are governed by national law of the decedent
Liljedahl v Glassgow





L held a mortgage on land in Colorado for a
debt payable in Iowa.
Mortgagor sold the land to Glassgow and
delivered the deed.
The deed had a blank space where it stated
that the grantee assumed the mortgage.
However, Glassgow never inserted his name
before transfering it to another
Iowa law says Glassgow is bound to pay but
Colorado imposes no liability
Other rules

Policy centered approach- forum court not
bound by lex situs when the situs of the
movable at the time of transfer is insignificant.
I.e when the chosen place is for mere
convenience.

Rudow v Fogel- on the issue of constructive
trust of real property, the court applied the law
of the domicile since both the trustor and
trustee are in the same domicile
Query
ABC is domiciled in the US.
DEF is domiciled in the Philippines
ABC purchased a boat from DEF, the transaction
occurred in France.
The boat is harbored in Luxemberg
If ABC files a complaint against DEF in the
Philippines alleging that the transaction was
invalid, what is the court's choice of law?
summary
- If the issue is about the
conveyance or title to property, the
Philippines follows the Lex situs
rule
- There are 3 exceptions to this rule
- Validity and effect of conveyance of
property are treated as choice of
law of property (including lease),
rather than choice of law of
contract (see p.329)