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Joyrich Golangco 1
CHAPTER 2
THE TENANT EMANCIPATION LAW Stages of Land
Transfer
Presidential Decree No. 27
[As Amended by Executive Order No. 228] Issuance of a
Certificate of Land
Transfer (CLT) to the
Applicability of the Law The land transfer farmer-beneficiary
ü It supplements the CARL. under PD 27 is
effected in two
ü It applies ONLY to PRIVATE AGRICULTURAL
stages: Issuance of
LANDS primarily devoted to rice and corn
Emancipation Patent
under share tenancy or lease-tenancy.
(EP)
Transfer of Lands to Tenants
Presidential Decree No. 27
G The tenant farmer, whether in land classified as
landed estate or not, shall be deemed owner of a Significance of the Certificate of Land Transfer
portion constituting a family-size farm of 5 hectares if not Levardo v. Yatco: The CLT does not vest upon the tenant-
irrigated and 3 hectares if irrigated. beneficiary ownership over the land. It merely QUALIFIES
the tenant-beneficiary to possess the land and comply
Section 1 of Executive Order No. 228 with certain conditions preparatory to ownership.
G All qualified farmer beneficiaries are now deemed full N If the tenant-beneficiary complies with the
owners as of October 21, 1972 of the land they acquired conditions, he is issued an Emancipation
by virtue of Presidential Decree No. 27. Patent.
“Shall be deemed owner”/ “Are now deemed full Significance of an Emancipation Patent
owners” Maylem v. Ellano: The EP vests upon the farmer-
à does not mean automatic transfer of title or ownership beneficiary absolute ownership over the landholding,
of the land to the tenant or lessee and it constitutes conclusive authority for the issuance of
There has to be FULL PAYMENT of JUST an original or transfer certificate of title in his name.
COMPENSATION before the landowner could be
divested of his land, otherwise, the land would be taken Indefeasibility of EPs
without just compensation in violation of the d EPs are titles brought under the operation of the
constitutional injunction against taking of private Torrens System. Hence, they are conferred with the same
property without just compensation. indefeasibility and security as provided for by
Ê Therefore, notwithstanding such phrase, the Presidential Decree No. 1529, as amended by Republic
title and ownership over the land will be Act No. 6732.
transferred to the beneficiaries only upon full d Emancipation patents become indefeasible and
payment of the just compensation to the imprescriptible after one year from its registration with
landowner. the Office of the Registry of Deeds, subject to the
conditions, limitations and qualifications under the CARL
and the Property Registration Decree, and other
pertinent laws. This is provided for in Section 24 of the
CARL.
It is the ministerial duty of the Registry of Deeds to register The payment that
Interest at
the title of the land in the name of the Republic of the Total
the rate
should be made
Costs of by the farmer-
Philippines, after the Land Bank of the Philippines (LBP) the Land
of 6% per
beneficary or his
annum
has certified that the necessary deposit in the name of heirs
the landowner constituting full payment in cash or in
bond with due notice to the landowner and the
registration of the certificate of land ownership award
issued to the beneficiaries, and to cancel previous titles
pertaining thereto.
Term of payment: For 20 years in 20 equal annual
Identified and qualified agrarian reform beneficiaries, amortizations
based on Section 22 of Republic Act No. 6657, as
amended, shall have usufructuary rights over the à The EP will be issued to the farmer-beneficiary after full
awarded land as soon as the DAR takes possession of payment of the Amortizations.
such land, and such right shall not be diminished even
pending the awarding of the emancipation patent or Section 6 of EO 228 provides that:
the certificate of land ownership award. Sec. 6. The total costs of the land including interest at the
rate of six percent (6%) per annum with a two percent
All cases involving the cancellation of registered (2%) interest rebate for amortizations paid on time, shall
emancipation patents, certificates of land ownership be paid by the farmer-beneficiary or his heirs to the Land
award, and other titles issued under any agrarian reform Bank over a period up to twenty (20) years in twenty (20)
program are within the exclusive and original jurisdiction equal annual amortizations. Lands already valued and
of the Secretary of the DAR. financed by the Land Bank are likewise extended a 20-
year period of payment of twenty (20) equal annual
Grounds for the Cancellation of Emancipation Patents amortizations. However, the farmer-beneficiary if he so
(a) Abandonment of the land; elects, may pay in full before the twentieth year or may
(b) Neglect or misuse of land; request the Land Bank to structure a repayment period
(c) Failure to pay 3 annual amortizations; of less than twenty (20) years if the amount to be
(d) Misuse or diversion of financial and support financed and the corresponding annual obligations are
services; well within the farmer's capacity to meet. Ownership of
(e) Sale, transfer or conveyance of the right to use lands acquired by the farmer-beneficiary may be
the land; and transferred after full payment of amortizations.
(f) Illegal conversion of the land
FAILURE on the
Jurisdiction over Cancellation of EPs
part of the farmer-
G All cases involving the cancellation of registered the Land Bank to
beneficiary to pay
emancipation patents are within and original jurisdiction FORECLOSE the
THREE ANNUAL
of the Secretary of the Department of Agrarian Reform. mortgage
amortizations shall
cause
Tenant-beneficiary cannot sell or transfer ownership of
the land
Ö The tenant-beneficiary cannot sell or transfer
ownership of the land acquired under the Tenant
Emancipation Law, except to the Government or by
hereditary succession.
by PAYING the
Presidential Decree No. 27 expressly provides The tenant- Land Bank ALL
that: farmer, or any within a period UNPAID
of his of TWO years amortizations
“Title to land acquired pursuant to this Decree on the land
compulsory from its
or the Land Reform program of the heirs MAY LIFT registration with interest
Government shall not be transferable except the foreclosure thereon of 6%
by hereditary succession or to the Government per annum
in accordance with the provisions of this
decree, the Code of Agrarian Reforms and
other existing laws and regulations.”
the CARL
If the tenant-farmer or any
of his compulsory heirs does
Presidential Decree No. CARL
not take steps to lift the
27
foreclosure within the 2-
If the landowner has
year period, OWNERSHIP
already exercised his
will be transferred to the
right of retention in PD 27
Land Bank.
he CAN NO longer
exercise retention right
under the CARL
Thereafter, the Land Bank not However, he can keep
later then 3 months after its the 7-hectare retention
acquisition of the land, shall limit granted under PD
SELL the foreclosed land. 27.
If the landowner chooses
to retain five hectares
under CARL, the 7
It will be sold to any hectares previously
interested landless farmer retained by him under PD
duly certified to as a bona fide 27 shall be placed
landless farmer by the DAR of immediately under the
the barangay or the two coverage of the CARL.
closest barangays where the
land is situated.
Jurisdiction over Retention or Exemption Issues
Payment of Just Compensation to Landowner G Cognizable by the Secretary of the DAR
Reason: Because they pertain to administrative
The just compensation is payable to the landowner implementation of agrarian law
through any of the following modes, at the option of the
landowner:
(a) DIRECT PAYMENT to the landowner by the
farmer-beneficiaries, in cash or in kind, on terms CHAPTER 3
to be mutually agreed upon by the THE CODE OF AGRARIAN REFORMS
beneficiaries and landowners and subject to
the approval of the DAR; REPUBLIC ACT NO. 3844
(b) PAYMENT BY THE LAND BANK WITH 10% As amended by PD Nos. 251, 444, 1039, and 1817. RA
PAYABLE IN CASH IMMEDIATELY and the Nos. 6389, 6557, 7907 and 9700.
balance payable in form of Land Bank bonds
over a 10-year period, with 1/10 of the face History
value maturing every year until the 10th year; o Initially denominated as Agricultural Land
and Reform Code –– was renamed by RA No. 6389.
(c) OTHER MODES OF PAYMENT as may be o Administrative bill submitted by Pres. Diosdado
prescribed or approved by the Presidential Macapagal for enactment by the 5th Congress
Agrarian Reform Council. of PH.
o Signed into law: August 8, 1963
Lease rentals paid to the landowner by the farmer
beneficiary after October 21, 1972 is considered as Objective
advance payment for the land. Create a system of owner-cultivatorship and economic
family-size farm as basis of Philippine agriculture
Retention Right of Landowner NB: CARL did not repeal the CAR. CAR supplements
Ü Under PD 27, the landowner is entitled to retain an CARL.
area of not more than SEVEN HECTARES, if he is
cultivating or will cultivate it. Thus: Salient features of CAR:
1. Abolished the share tenancy system and
“In all cases, the landowner may retain an area replaced it with agricultural leasehold
of not more than seven hectares is such 2. Established bill of rights for agricultural workers
landowner is cultivating such area or will now 3. Established DAR as the machinery for the
cultivate it.” acquisition and distribution of agricultural land
4. Established LB as financial arm of Agrarian
Ö Personal cultivation by the Landowner is Reform program
NOT REQUIRED – cultivation can be done
indirectly through labor administration. CAR Abolished Share Tenancy and Arrangements were
Automatically Converted to Lease-hold.
Retention right under PD 27 vis-à-vis retention right under
A discussion in the case of Guevara vs. Santos says that: (4) To mortgage expected rentals.
"There is ample evidence showing that Herminigildo
Guevarra and Apolonio Javinia caused the death of The agricultural lessor can exercise the
twenty eight (28) and six (6) coconut trees, respectively, aforementioned rights as long as it does not interfere
in their holdings. In the case of Guevarra, twenty-eight with the lessee’s peaceful possession of the landholding.
(8) trees were destroyed when hay was heaped at the
base of the coconut trees and burned, and in the case
of Apolonio Javinia, he failed to exercise caution in RIGHTS OF THE AGRICULTURAL LESSEE
plowing his holding to prevent serious damage to the (1) To have possession and peaceful enjoyment of
coconut trees. As lessee-tenants defendants the land;
Herminigildo Guevarra and Apolonio Javinia are (2) To manage and work on the land in a manner
obliged to exercise the diligence of a good father of a and method of cultivation and harvest which
family to preserve the improvements existing in their conform to proven farm practices;
holdings. Herminigildo Guevarra while denying that he (3) To mechanize all or any phase of his farm work;
actually burned the hay heaped at the base of twenty and
eight (28) trees, admitted that at the time the hay was (4) To deal with millers and processors and attend to
burned he was away from his holding. He may not have the issuance of quedans and warehouse receipts
had any hand in the burning of the hay but certainly he for the produce due him.
should be made accountable for depositing hay at the (5) To have a homelot within the land that he is
base of the trees, an act which would not be done by a leasing
reasonably careful father of a family. It does not require
great intelligence to perceive that hay is highly and RIGHTS OF LESSEE TO BE IDEMNIFIED FOR HIS LABOR
unpredictably inflammable and if heaped at the base The agricultural lessee surrenders, abandons, or is validly
of young coconut tress could cause total destruction of ejected from his landholding, he is entitled to be
the trees. indemnified for:
(1) the cost and expenses incurred in the cultivation,
On the part of Apolonio Javinia, knowing that young planting or harvesting and other expenses
coconut trees were growing in his holding, he plowed incidental to the improvement of his crop
too closely to the six (6) tress causing their death. As a (2) for one-half of the necessary and useful
farmer of long standing he should have known that by improvements made by him on the landholding:
plowing too close to the base of the trees his plow would which are tangible and have not yet lost their
inevitably cut the trees’ roots. He, therefore, failed to utility at the time of surrender and/or
exercise sufficient caution in his plowing." Virt abandonment of the landholding
RIGHT OF PRE-EMPTION the agricultural lessee or lessees, the said period of one
The agricultural lessee has the preferential right to hundred and eighty days shall cease to run.
buy the land actually cultivated by him under "Any petition or request for pre-emption shall be solved
reasonable terms and conditions. within sixty days from the filing thereof; otherwise, the
said period shall start to run again."
Therefore, if the agricultural lessor decides to sell the
landholding, he should give notice to: The ROD will not register or issue a TCT without sworn
(1) DAR, and statement from the vendor (landowner) that he has
(2) All the lessees affected given the required notice to the lessee or that the land is
not covered by an agricultural lease as provided in Sec.
If the agricultural lessee agrees with the terms and 13 of CAR:
conditions of the sale:
(1) he must give written notice to the SECTION 13. Affidavit Required in Sale of Land Subject to
agricultural lessor of his intention to exercise Right of Pre- emption. — No deed of sale of agricultural
his right of pre-emption, and land under cultivation by an agricultural lessee or lessees
(2) thereafter, tender payment of or present a shall be recorded in the Registry of Property unless
guarantee certificate from the Land Bank accompanied by an affidavit of the vendor that he has
to the agricultural lessor. given the written notice required in Section eleven of this
If the lessor refuses to accept such tender or Chapter or that the land is not worked by an agricultural
presentment, he may consign it with the court. lessee.
(2) Right to engage in concerted activities;
The exemption cannot be waives for the reason that it is
(3) Right to minimum wage;
intended to provide sustenance for the lessee and his
(4) Right to work for not more than eight hours;
family from one harvest to the next.
(5) Right to compensation for personal injuries,
death or illness; and
Case: Maniego v. Castello p. 175
(6) Right to security of tenure
PRESCRIPTION OF ACTION
ACTS WHICH THE AGRICULTURAL LESSOR IS FORBIDDEN TO The prescriptive period for filing an action to enforce the
DO rights and obligations under the Code of Agrarian
(1) To dispossess the agricultural lessee of his Reforms is 3 years reckoned from the time the cause of
landholding without just cause action accrued.
(2) To require the agricultural lessee to assume,
directly or indirectly, the payment of the taxes THE DEPARTMENT OF AGRARIAN REFORM
or part thereof levied by the government on The Agricultural Land Reform Code created the Land
the landholding; Authority as the implementing arm of the agrarian
(3) To require the agricultural lessee to assume, reform program. The Code of Agrarian Reforms
directly or indirectly, any part of the rent, renamed the Land Authority as DAR.
"canon" or other consideration which the
agricultural lessor is under obligation to pay to DAR is tasked with:
third persons for the use of the land; a. Implement laws, programs and policies for the
(4) To deal with millers or processors without acquisition and distribution of all agricultural
written authorization of the lessee in cases lands as provided by laws;
where the crop has to be sold in processed b. Resettle landless farmers and farmworkers in
form before payment of the rental; or government-owned agricultural estates which
(5) To discourage, directly or indirectly, the shall be distributed to them as provided by law;
formation, maintenance or growth of unions or c. Recommend and provide incentives for
organizations of agricultural lessees in his voluntary sharing of lands by owners of
landholding, or to initiate, dominate, assist or agricultural lands;
interfere in the formation or administration of d. Acquire, determine the value, subdivide into
any such union or organization. family-size farms, develop and distribute to
qualified tillers, actual occupants and displaced
ACTS WHICH THE AGRICULTURAL LESSEE IS FORBIDDEN TO urban poor, private agricultural lands regardless
DO of area and crops planted;
(1) To contract to work additional landholdings e. Administer and dispose of, under a settlement
belonging to a different agricultural lessor and scheme, all portions of the public domain
(2) To employ a sub-lessee on his landholding declared as alienable and disposable lands for
speedy distribution to and development by
Purpose of the prohibition: to prevent agricultural lessee deserving and qualified persons who do not own
from dissipating his labor and efforts in various any land and under such terms and conditions as
landholdings at the expense of the first agricultural lessor. the Department may prescribe, giving priority to
qualified and deserving farmers in the province
Agricultural leasehold is personal in character in the where such lands are located;
sense that the agricultural lessee must personally work f. Provide free legal assistance to farmers covered
and cultivate the landholdings. by agrarian reform and expedite the resolution of
agrarian conflicts and land tenure problems
ENFORCEABILITY OF LOANS OBTAINED BY AN either through conciliatory or adversary
AGRICULTURAL LESSEE proceedings;
To be enforceable, loans obtained by an agricultural g. Provide creative, responsive and effective
lessee should be: information, education and communication
(1) Written in a language or dialect known to the programs and projects both for the tenant
agricultural lessee, and beneficiaries, landowners, the government and
(2) Signed or thumb-marked by the agricultural private sectors and the general public, thereby
lessee or his agent generating a broad spectrum of support and
understanding of the new agrarian reform
PROPERTIES OF THE LESSEE THAT ARE EXEMPT FROM LIENS program;
OR EXECUTION h. Strengthen agrarian reform beneficiaries
The following properties of the agricultural lessees organizations to a degree of national viability
cannot be the subject of lien or execution: that would enable them to share in the shaping
(1) 25% of the entire produce of the land under of government policies and institutionalize
cultivation; and farmers’ participation in agrarian reform policy
(2) Work animals and farm implements, except formulation, program implementation and
upon a judgement for its price, or upon a evaluation;
judgment of foreclosure of a mortgage thereon i. Promote the organization and development of
cooperatives of agrarian reform beneficiaries
and register the same;
j. Implement all agrarian reform laws and for this 25, 1972, of farm lots transferred to tenant-farmers
purpose issue subpoena, subpoena duces pursuant to Presidential Decree No. 27 dated
tecum, and writs of execution of its orders, and October 21, 1972;
decisions and other legal processes to ensure (8) To underwrite, hold, own, purchase, acquire, sell,
compliance from all parties concerned for mortgage, dispose or otherwise invest or reinvest in
successful and expeditious program stocks, bonds, debentures, securities and other
implementation; evidences of indebtedness of other corporations
k. Undertake land surveys on lands covered by and of the government or its instrumentalities
agrarian reform, and issue patents to farmers which are issued for or in connection with any
covered by agrarian reform, both on private and project or enterprise;
public lands; (9) The provision of any law to the contrary
l. Develop, implement and undertake alternative notwithstanding, to guarantee acceptance(s),
and innovative land development schemes and credits, loans, transactions or obligations of any
land tenure systems such as, but not limited to person, co-partnership, association or corporation
land consolidation, land forming, cooperative in favor of any financing or banking institution,
farming and agro-industrial estates; whether foreign or domestic: Provided, That the
m. Approve or disapprove conversion of agricultural proceeds of such acceptances, credits, loans,
lands to non-agricultural uses such as residential transactions or obligations are utilized or
and industrial conversions in accordance with earmarked for the development and/or expansion
the existing provisions of law; of agriculture and industry;
n. Undertake land use management studies; (10) To borrow from, or rediscount notes, bills of
o. Compensate the landowners covered by exchange and other commercial papers with, the
agrarian reform; Central Bank. The rate of interest to be charged
p. Integrate and synchronize program and the conditions on such obligations or
implementation of the Land Bank of the borrowings shall be subject to the rules and
Philippines and other relevant civilian and military regulations of the Monetary Board;
government and private entities involved and (11) To act as trustee, or administer any trust or hold
mandated to support the agrarian reform property in trust in accordance with the provisions
program through Inter-Agency Committees and of law governing trust corporations; and
Agrarian Reform Coordinating Councils; and (12) to act as an official government depository with full
q. Perform such other functions as may be provided authority to maintain deposits of the government,
by law. its branches, subdivisions and instrumentalities, and
of government-owned or controlled corporations
LAND BANK which deposits shall be subjected to liquidity floor
The Land Bank has been created by the Code of and/or reserve requirements as may be imposed
Agrarian Reform, and is the financial arm of the agrarian by the Monetary Board upon other commercial
reform program. banks;
(13) for the strengthening of the capital base of the
LBP is vested with the following powers: bank, to establish a national marketing umbrella
(1) To prescribe, repeal, and alter its own by laws, to for farmers and fisheries cooperatives to attract
determine its operating policies, and to issue such massive capital formation from savings deposits of
rules and regulations as may be necessary to the cooperative member nationwide
achieve the main purpose for the creation of the (14) to exercise the general powers mentioned in the
Bank; Corporation Law and the General Banking Act, as
(2) To adopt, alter and use a corporate seal;
amended insofar as they are not inconsistent or
(3) To acquire and own real and personal property incompatible with the Decree
and to sell, mortgage or
otherwise dispose of the
same;
(4) To sue and be sued, make contracts, and borrow
money from both local and foreign sources. Such
loans shall be subject to approval by the President ua1aw library
of the Philippines and shall be fully guaranteed by
the Government of the Philippines;
(5) To grant short, medium, and long term loans and
advances against security of rea estate and/or
other acceptable assets for the establishment,
development, or expansion of agricultural,
industrial, home building, or home financing
projects and other productive enterprises
(6) To grant loans to farmers'
cooperatives/associations to facilitate production,
marketing of crops and acquisition of essential
commodities;
(7) To finance and/or guarantee the acquisition,
under Presidential Decree No. 85 dated December