Land Acquisition by Private Corporations

The 1935 Constitution expressly allowed private juridical entities to acquire alienable lands of
the public domain not exceeding 1024 hectares.

The 1973 Constitution prohibited such in Section 11, Article XIV, stating: “no private corporation
or association may hold alienable lands of the public domain except by lease not to exceed one
thousand (1000) hectares in area.

The 1987 Constitution carried the same provision as expressed in Section 3, Article XII, to wit:

“Private corporations or associations may not hold such alienable lands of the public
domain except by lease, for a period not exceeding twenty-five years, renewable for not
more than twenty-five years, and not to exceed one thousand (1000) hectares in area.”

GR: Private Corporations may not hold alienable lands of the public domain
XPN: Except by lease, for a period not exceeding 25 years, renewable for not more than 25
years, and not to exceed 1000 hectares in area

Susi Doctrine
At the time the corporation acquired the land, its predecessor-in-interest had been in possession
and occupation thereof in the manner and for the period prescribed by law as to entitle him to
registration in his name, then the proscription against corporations acquiring alienable lands of
the public domain, except through lease, does not apply for the land was no longer public land
but private property

Purpose of the Prohibition

- It is a Constitutional intent to transfer ownership of a limited area of alienable land of the
public domain to a qualified individual.
- The available alienable public lands are gradually decreasing in the face of an ever-
growing population.
- The Constitutional ban strengthens the constitutional limitation on individuals from
acquiring more than the allowed area of alienable lands of the public domain.