To: Solicitor General Erika Frances Buluran Monzon From: Associate Solicitor General Gavin Reyes Custodio Date:

September 20 2011 Re: On the Propriety of an escheat claim against the properties of Atty Viel Franco X-----------------------------------------------------------------------------------------------------------X In compliance with your order last September 23, 2011 to research on the probability of filing an escheat claim against the properties of Atty. Viel Franco, your humble servant regret to tell you that filing an escheat claim against her properties would be a total waste of time. Factual Antecedents: Atty. Viel Franco, bought a hog farm in Bulacan in 1998, in January 2001 she and her family became Canadian citizen. Also last February 2011 she inherited a residential house in white meadows consequently Atty. Gingitera wrote a letter requesting us to go after Atty. Francos properties. Issue: Whether or not an escheat claim against the property of Atty. Franco is proper. Applicable Laws: Although the lovely Atty. Gingitera was right in stating that under the 1987 Philippine Constitution, A foreigner cannot own real property in the country, she missed the fact that Section 7 Article 12 of the same Constitution states that: 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. And Article 8 also states that Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law. , in accordance with these provisions of the constitution Batas Pambansa Blg. 185 Sections 2 and 7 states: Any natural-born citizen of the Philippines who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of one thousand square meters, in the case of urban land, or one hectare in the case of rural land, to be used by him as his residence. And Transfer as a mode of acquisition of private land under this Act refers to either voluntary or involuntary sale, devise or donation. Involuntary sales shall include sales on tax delinquency, foreclosures and executions of judgment. And lastly according to Section 2 of ra 9225 that a Filipino who acquires another citizenship through naturalization retains his Filipino citizenship. Discussion: Atty Viel franco acquired her Canadian citizenship after she purchased the hog farm in bulacan, hence she is still qualified to own a real property here in the country for the provision of the constitution that states that foreigners cannot own lands here in the Philippines cannot be applied to her for she was still a Filipino citizen back then. Also, as regards to her inherited residential lot, the B.P.185 states that a former Filipino citizen could still be a beneficiary of a transfer of land here in the country subject to certain limitations the word transfer being contemplated as sale or inheritance.

Conclusion: An escheat claim would not be advisable for under the said provisions of the said laws Atty. Viel Franco is still qualified to own lands here in the country. So your humble servant would not recommend the filing of an escheat claim against the properties of Atty. Franco The above statements are my recommendations subject to your approval and discretion, the abovesigned would be more than happy to enlighten you with regard to any matter that you would refer to him. Your humble servant, Atty. Gavin Reyes Custodio Associate Solicitor