PROHIBITION AGAINST ALIENATION OF LANDS ACQUIRED UNDER THE HOMESTEAD AND FREE PATENT PROVISIONS

> Section 116. Except in favor of the Government or any of its branches, units or institutions, or legally constituted banking corporations, lands acquired under the free patent or homestead provisions shall not be subject to encumbrance or alienation from the date of the approval of the application and for a term of five years from and after the date of issuance of the patent or grant, nor shall they become liable to the satisfaction of any debt contracted prior to the expiration of said period; but the improvements or crops on the land may be mortgaged or pledged to qualified persons, associations, or corporations. (As amended by section 23 of Act No. 3517).

> Section 119. Except with the consent of the grantee and the approval of the Secretary of Agriculture and Natural Resources, and solely for commercial, industrial, educational, religious or charitable purposes or for a right of way, no corporation, association, or partnership, may acquire or have any right, title,
interest, or property right whatsoever to any land granted under the free patent, homestead or individual sale provisions of this Act or to any permanent improvement on such land. (As amended by section 24 of Act. No. 3517).

> Section 120. No land originally acquired in any manner under the provisions of this Act, nor any permanent improvement on such land, shall be encumbered, alienated, or transferred, except to persons, corporations, associations, or partnerships who may acquire lands of the public domain under this Act; to corporations organized in the Philippine Islands authorized therefor by their charters, and upon express authorization by the Philippine Legislature, to citizens of countries the laws of which grant to citizens of the Philippine Islands the same right to acquire, hold, lease, encumber, dispose of, or alienate land, or permanent improvements thereon, or any interest therein, as to their own citizens, only in the manner and to the extent specified in such laws, and while the same are in force, but not thereafter.

> Section 122. Any acquisition, conveyance, alienation, transfer, or other contract made or executed in violation of any of the provisions of sections one hundred and sixteen, one hundred and eighteen, one hundred nineteen, one hundred and twenty, and one hundred and twenty-one of this act shall be unlawful and null and void from its execution and shall produce the effect of annulling and canceling the grant, title, patent, or permit originally issued, recognized, or confirmed, actually or presumptively, and cause the reversion of the property and its improvements to the Government.

> Section 122(A). The provisions of sections twenty three, twenty four, thirty four, fifty seven, one hundred and twenty, and one hundred and twenty-one of this Act, and any other provisions or provisions restricting or tending to restrict the right of persons, corporations, or associations to acquire, hold, lease, encumber, dispose of, or alienate land in the Philippines, or permanent improvements thereon, or any interest therein, shall not be applied in cases in which the right to acquire, hold or dispose of such land, permanent improvements thereon or interests therein in the Philippine Islands is recognized by existing treaties in favor of citizens or subjects of foreign nations and corporations or associations organized and constituted by the same, which right in so far as it exists under such treatise, shall continue and subsist in the manner and to the extent stipulated in said treaties, and only while these are in force, but not thereafter.

PROHIBITION STARTS FROM DATE OF APPROVAL UP TO 5TH YEAR FROM ISSUANCE OF PATENT

POLICY OF THE LAW

> To conserve the land which a grantee has acquired under the Public Land Act for him and his heirs

> To give the patentee a place where to live with his family so he may become a happy citizen and useful member of the society

APPROVAL OF SECRETARY MERELY DIRECTORY

> Its absence doesn’t invalidate any alienation, transfer or conveyance of the homestead after 5 years and before the 25- year period