Frenzel vs. Catito 2

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ALFRED FRITZ FRENZEL vs. EDERLINA P.

CATITO
G.R. No. 143958 July 11, 2003
Callejo, Sr., J.:

Doctrine: Aliens, whether individuals or corporations, have been disqualified


from acquiring lands of the public domain. Hence, they have also been
disqualified from acquiring private lands.

Facts:
• Petitioner Frenzel is an Australian citizen of German descent married to Teresita
Santos, a Filipina. In 1983, he acquired the services of respondent Catito, a Filipina
masseuse, in Australia, who is married to Klaus Muller, a German.
• Petitioner proposed to respondent and they lived together in the Philippines. He
bought real properties in Manila, Quezon City, and Davao, with respondent as sole
vendee since aliens cannot acquire real properties in the Philippines. Later, their
relationship deteriorated due to the failure of divorce proceedings of respondent.
• Petitioner filed a complaint against respondent with RTC Quezon City for recovery
of his properties in Quezon City and Manila, alleging that he paid the entire
purchase price thereof, and that respondent, without his knowledge and consent,
transferred funds from their joint HSBC account to her own HSBC account and
used the funds to purchase the subject properties. Respondent denied, claiming
that the purchase documents were made out in her name. Petitioner also filed a
suit against HSBC in RTC Davao City for recovery of bank deposits and damages.
• The RTC QC decided against respondent. However, RTC Davao City decided in
her favor, ruling that the petitioner had no cause of action against respondent for
the recovery of the properties because as an alien, he was disqualified from
acquiring and owning lands in the Philippines. The CA affirmed the RTC decision.
• Petitioner contended that he was not aware of the constitutional prohibition against
aliens acquiring real property in the Philippines when he purchased the real
properties, and that in filing the suits, he only intended to be declared as transient
owner of the subject properties for purposes of public auction, so that he may
recover the money he used to purchase the same. Hence, this petition.

Issue: Whether an alien may be declared as transient owner of real property in the
Philippines.

Ruling: No.

Lands of the public domain, which include private lands, may be transferred or
conveyed only to individuals or entities qualified to acquire or hold private lands or
lands of the public domain. Aliens, whether individuals or corporations, have been
disqualified from acquiring lands of the public domain. Hence, they have also
been disqualified from acquiring private lands.

Even when the sales were entered into by petitioner as real vendee, the
transactions are in violation of the Constitution; hence, are null and void ab initio. The
petitioner cannot feign ignorance of the constitutional proscription as he admitted
during cross-examination that he was fully aware that a non-citizen of the Philippines
was disqualified from validly purchasing any land within the country.

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