LLANTINO vs CO LIONG CHONG (1990)

FACTS:
Sometime 1954, The Llantinos (petitioners) leased real property to Chong, a
Chinese national, for 13 years. Chong became a naturalized Filipino Citizen in
1961 and now known as Juan Molina. When the lease contract was about to
expire, petitioners requested Chong for a conference but the latter refused and
rather informed the petitioners that he already built a commercial building on
the land and that the contract of lease is good for 60 years. Surprised by this
contentions, the Llantinos filed an action to quiet title, claiming that the lease
contract was invalid for circumventing the constitutional prohibition on the
acquisition of land by aliens.
Lower court ruled in favor of respondent - the contract is valid.
ISSUE:
WON the contract of lease entered into by and between the parties on 1954
when Chong is still a Chinese National is valid?
HELD:
The lease contract was valid, and Chong had the right to hold by lease the
property involved although at the time of execution of the contract, he was still
a Chinese national. In the case at bar it has been established that there is only
one contract and there is no option to buy the leased property in favor of
Chong. There is nothing in the record to indicate any scheme to circumvent the
constitutional prohibition.
Aliens are not completely excluded by the Constitution from use of lands for
residential purposes. Since their residence in the Philippines is temporary, they
may be granted temporary rights, such as a lease contract which is not
forbidden in the Constitution. The only instance where a lease contract may be
considered invalid is where there are circumstances attendant to its execution
which are used as a scheme to circumvent the constitutional prohibition.