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Development Rights – refers to the right to use and/or develop land and improvements thereon to more
intensive and profitable use.
Land Assembly – the acquisition of lots of varying ownership for better planning and development
unrestricted by individual boundaries.
Land banking – the acquisition of land in advance of actual need based on present value for future
planned development
Urbanizable land – refer to sites which, considering present characteristics and prevailing conditions,
display a marked and high probability of becoming urban lands within five to ten years.
Cities and municipalities - population density of at least 1,000 person per square kilometer where
at least 50% of economically active population are engaged in non-agricultural activities.
Barangays comprising a former poblacion - with a population density of more than 500 but less
than 1,000 persons per square kilometer where at least 50% of the economically active
population are engaged in non-agricultural activities.
Proclamation No. 1893 (Marcos) -declared the entire Metro Manila as urban land reform zone.
Amended by Proclamation No. 1967, which limits the applicability of the Urban Land Reform Law to
only 244 Areas for Priority Development (APD).
NOTE : RA 7279 (Lina Law or UDHA), under President Corazon, covers all urban and urbanizable
area while under PD1517 (Pres. Marcos), it covers only Areas of Priority Development (APD)
Any sale, lease or mortgage, including the proposed price, rental or encumbrance, requires prior
approval of the Housing and Land Use Regulatory Board.
The HLURB shall have the pre-emptive right to acquire lands in urban land reform zones.
TENANT’S RIGHT TO FIRST REFUSAL
Tenants of urban land on which they construct their residences shall have the priority right to buy the land
if the following requisites are present:
Declaration of Policy: to provide for a comprehensive and continuing urban development and housing
program, establish the mechanism for its implementation, and for other purposes.
Purposes:
Uplift conditions of underprivileged and homeless citizens in urban and resettlement areas through
decent housing at affordable cost, basic services, and employment opportunities
Rational use and development of urban land:
o Equitable utilization of residential lands in urban and urbanizable areas with particular
attention to the needs and requirements of the underprivileged and homeless citizens, and
not merely on the basis of market forces
o Optimization of the use and productivity of land and urban resources
o Development of urban areas conducive to commercial and industrial activities which can
generate more economic opportunities for the people
o Reduction in urban dysfunctions, particularly those that adversely affect public health,
safety and ecology
o Access to land and housing by the underprivileged and homeless citizens
Adopt workable policies to regulate and direct urban growth and expansion towards a dispersed
urban net and more balanced urban-rural interdependence
Provide for an equitable land tenure system that shall guarantee security of tenure to program
beneficiaries but shall respect the rights of small property owners and ensure the payment of just
compensation
Encourage more effective people’s participation in the urban development process
Improve the capability of local government units in undertaking urban development and housing
programs and projects
Exemptions:
National Urban Development and Housing Framework – the comprehensive plan for urban and
urbanizable areas aimed at achieving the objectives of the program which reviews and rationalizes town
and land use plans, housing programs that may substantially affect urban land use patterns, transportation
and public utilities, infrastructure, environment and population movement
Government-owned lands
Alienable lands of the public domain (agricultural land)
Unregistered or abandoned and idle lands
Those within the APDs, ZIPs, SIPs, which have not yet been acquired
BLISS sites which have not yet been acquired
Privately- owned lands
Community mortgage
Land swapping
Land assembly or consolidation
Land banking
Donation to the government
Joint venture agreement
Negotiated purchase
Expropriation – last to resort, when all modes have been exhausted already
No land and improvement, and rights attached to them, for socialized housing, shall be sold,
alienated, conveyed, encumbered or leased by any beneficiaries;
otherwise, the transaction is considered null and void, and the beneficiaries lose their rights to the
land, forfeit the total amortization paid, and shall be barred from the benefits under this act for 10
years from the date of violation.
Filipino citizen
Underprivileged and homeless
Does not own any real property whether in urban or rural areas
Is not a professional squatter or a member of squatting syndicates
Developers of proposed subdivision projects are required to develop an area for socialized housing
equivalent to at least 20% of the total subdivision area, or total subdivision project cost, within the same
city or municipality
Incentives:
The redistribution of public and private agricultural lands, regardless of produce and tenurial
arrangement, to landless farmers and regular farm workers, to include support services and other
arrangements alternative to distribution of land such as production / profit sharing, labor
organization, or distribution of shares of stock.
Lands actually, directly and exclusively used for pawn farms and fishponds provided that they have
not been distributed and Certificates of Land Ownership Award (CLOA) issued to agrarian reform
beneficiaries.
Lands devoted to the raising of livestock, poultry or swine.
Agricultural lands reclassified either as residential, commercial or industrial thru zoning ordinance
approved by the Housing and Land Use Regulatory Board before June 15, 1988.
Agricultural lands with 18% slope or more.
Lands actually, directly and exclusively used and found necessary for national defense, school sites,
church sites, mosque sites, communal burial grounds, and penal colonies.
RETENTION LIMITS
Landowners who were covered by then PD 27 shall be allowed to keep the original seven hectares
retained by them.
Original homestead grantees or direct compulsory heirs who still own the original homestead shall
retain the same areas as long as they continue to cultivate said areas.
DIFFERENTIATE PD 27 and RA 6657
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PD 27 RA 6657
1.Title Emancipation Decree Comprehensive Agrarian Reform Program
2.President of the Phils. President Marcos Pres. Corazon Aquino
3.Coverage Only rice and corn All agricultural lands regardless of produce
4.Ownership Private land only Private and public
5.Owner’s retention 7 hectares 5 hectares
6.Children none 15 years old and above actually tilling and
managing the farm
7.Area for beneficiary 5 hectares if 3 hectares only
unirrigated and
3 hectares if irrigated
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3. Retention of Spouses
For marriages covered by the Civil Code – in the absence of an agreement for absolute separation
of property before the marriage, spouses who own only conjugal properties may retain a maximum
of five hectares from such properties. However, if ever or both of them are landowners in their
respective rights (meaning the husband and the wife own capital and paraphernal lands,
respectively), each of them retain a maximum of five hectares from their respective lands, but in
no case shall the total retention of said couple exceed ten hectares.
For marriages covered by the Family Code (August 3, 1988) – if the spouses executed an agreement
for absolute separation of properties before the marriage, the husbands who own capital lands and
the wife who owns paraphernal lands, may each retain maximum of five hectares from their
respective properties. In the absence of ante-nuptial agreement for absolute separation of properties,
all properties belonging to said spouses can retain only a total of five hectares.
COMPENSATION TO LANDOWNERS
Land Valuation – as may be agreed upon between the landowner and Department of Agrarian, as
may be determined by the court.
a. Cash Payment:
1. When the area consists 5 hectares or less, the sale requires DAR clearance.
2. When the area is five hectares or less but buyer will use the land for non-agricultural purpose, or
when the area, consist of more than five hectares regardless of the buyer’s intended utilization,
what is required is DAR conversion.
3. Sale by agrarian reform beneficiaries (ARBs) – In all cases, lands awarded to ARB’s may only be
sold by them after the issuance of DAR clearance, subject to the following policies:
a) Any change from agricultural use shall not be allowed except with the DAR approval under
its rules of conversion.
b) The buyer will not exceed aggregate ownership ceiling of five hectares.
c) If the ARB was identified as tenant as of October 21, 1972 and amortizations were fully
paid, the land may be sold by the original tenant or heirs regardless of the date of issuance
of Emancipation Patent.
d) If the land was identified as tenanted after 1972, the sale may be allowed only after ten
years from the date of recognition of tenants.
Landowners whose lands subject for coverage under R.A 6657 may voluntarily offer their lands
for sale to the government. However, lands for which notices of coverage have already been sent
by the government and received by the landowner shall no longer be considered as voluntary
offered lands.
The DAR may reject voluntary offer to sell under the following circumstances:
a. The land is not suitable for agriculture or is undeveloped, and has a slope of more than
18%
b. When there are no takers or willing agrarian reform beneficiary for valid reasons, such as
peace and order situation in the area.
Withdrawal of voluntary offer to sell no longer allowed after the letter offer for VOS is received by DAR,
except when the landholding is determined by DAR to be more suitable for a townsite, resettlement site or
institutional site needed to address a matter of national interest or concern in a calamity situation.
Agricultural lands within protected areas designated under the National Integrated Protected Area
System (NIPAS), including watershed and recharged areas for acquifiers, as determined by DENR.
All irrigated lands, as delineated by the Department of Agriculture (DA) and/or National Irrigation
Administration (NIA), where water is available to support rice and other crop production, and all
irrigated lands where water is not available but within areas programmed for irrigation facility
rehabilitation by the DAR and / or NIA.
Irrigable lands not covered by irrigation projects with firm funding commitment.
Agro- industrial croplands, or lands presently planted to industrial crops that support the economic
viability of existing agricultural infrastructure and agro-based enterprises.
Highland or areas located in the elevation of 500 meters or above and have the potential for growing
semi-temperate and usually high value crops.
Environmentally critical areas (ECAs) as determined by the DENR.
Lands issued with notice of valuation and acquisition, or subject of a perfected agreement between
the landowner and the beneficiaries under voluntary land transfer/direct payment scheme
(VLT/DPS) under the Comprehensive Agrarian Reform Program
Application for conversion involving areas highly restricted from conversion shall require, apart from the
standard requirements, a project feasibility study and environmental compliance certificate (ECC) if within
ECAs.
Irrigable lands not covered by irrigation projects with firm funding commitment.
Tourism development areas (TDAs)
Sites identified and proposed to be developed by local government units into socialized housing
projects which are presently used for agricultural purposes.
Agricultural areas intended for ECOZONE Projects pursuant to R.A. 7916
In priority development areas, an ECC shall not be a pre-condition to the approval of the conversion
application; instead, it shall form part of the conditions thereof where applicable.
The DAR Regional Director for areas of not more than five hectares.
The duly authorized DAR Undersecretary for areas above five hectares but not more than fifty
hectares.
The DAR Secretary for areas of more than fifty hectares, except for those highly restricted from
conversion, which shall be subject to his approval regardless of the area.
RA 9700: CARPER
Extension of CARP, August 7, 2009
No More Voluntary Land Transfer (VLT) after June 30, 2009 – main modes of land acquisition will
now be: Compulsory Acquisition and Voluntary Offer to Sell
a. On irrigated lands where water is available to support rice and other crop production;
b. On irrigated lands where water is not available but within areas programmed for irrigation facility
rehabilitation by the DA or the NIA;
c. On irrigable lands already covered by irrigation projects with firm funding commitment at the time
of application for conversion or reclassification by the LGU;
d. On lands where DAR has issued a notice of acquisition;
e. On lands covered by Voluntary Offer to Sell (VOS) or by stock distribution option;
f. On lands covered by a perfected Voluntary Land Transfer (VLT) agreement.
Owners of private agricultural lands or other persons duly authorized by the landowner
Farmer-beneficiaries of the Agrarian Reform Program after lapse of five (5) years from award, reckoned
from the date of registration of their landholdings, and who have fully paid their obligations and are
qualified under these rules, or persons duly authorized by them.
E. Coverage
The above rule shall cover all private agricultural lands regardless of tenurial arrangement and commodity
produced. It shall also include agricultural lands reclassified by LGUs into non-agricultural uses, after June
15, 1988, pursuant to Memorandum Circular No. 54 Series of 1993 of the Office of the President and those
proposed to be used for livestock, poultry and swine raising as provided in DAR Adm. Order No. 9, Series
of 1993.
Otherwise known as Local Government Code of 1992, empowers local government units (LGUs) to
reclassify agricultural lands in cases:
1. Where the land ceases to be economically feasible and sound for agricultural purposes as determined
by the Department of Agriculture, and
2. Where the land shall have substantially greater economic value for residential, commercial or
industrial uses as determined by the Sanggunian concerned.
Ruled that with respect to the conversion of agricultural lands covered by RA No. 6657 to non-agricultural
uses, the authority of DAR to approve such conversion may be exercised from the date of its effectivity on
June 15, 1988. Thus all the lands that are already classified as commercial, industrial or residential before
June 15, 1988 no longer need conversion clearance.
Ownership of land belongs only to those individuals, associations and corporations legally qualified
to acquire or hold lands of public domain.
Exception to the rule are conveyances through hereditary succession
Privilege is given to former natural-born Filipinos in terms of acquiring private lands in urban and
rural areas. (BP185 and RA 8179)
Torrens System
System of recording unregistered lands
Land Sub-Division
Tasked to adopt a comprehensive land use plan in coordination with the approved provincial comprehensive
land use plan, and enact integrated zoning ordinances.
2. Land Conversion or Reclassification
land has ceased to be economically feasible and sound for agricultural purposes;
land shall have substantially greater economic value for residential, commercial or industrial as
determined by the local legislative body concerned
Land conversion from agricultural to other uses through reclassification by local government units,
limited to the following ranges of total agricultural land area at the time of the passage of ordinance,
and exclusive of those distributed to land reform beneficiaries:
o 15% for highly urbanized and independent component city
o 10% for component city or 1st to 3rd class municipality
o 5% for 4th to 6th class municipality
3. Land Acquisition
Land swapping, land assembly, land banking, donation to the government, joint-venture agreement,
negotiated purchase (UDHA, RA 7279);
Expropriation or eminent domain resorted to only after other modes of acquisition have been exhausted,
and exempts small property owners (categorized as those whose residential lands do not exceed 300 sqm.
for highly-urbanized and 800 sqm. in urban areas);
Just compensation; immediate possession is effected through payment of at least 15% of the FMV based
on the current tax declaration of the property to be expropriated.
Land Banking - acquisition of land at values based on existing use, in advance of actual need to promote
planned development and socialized housing programs.
Land Swapping - acquisition by exchanging land for another piece of land of equal value, or for shares of
stock in a government or quasi government corporation whose book value is of equal value to the land
being exchanged, for the purpose of planned and rational development and the provision for socialized
housing.
Land Disposition
a) Sales Patent - sale of lands to individuals, subject to conditions, aimed at minimizing speculation and
encouraging development. Done through public auction, the land is awarded to the highest bidder subject
to the condition that the awardees shall enter, break and cultivate at least 1/5 of the land within 5 years from
the date of the award.
d) Voluntary Confirmation - provides an opportunity for those who have claims to title to present their
case voluntarily before the courts that do not award the title but, as the name suggests, merely confirms it
on the basis of the evidence presented.
e) Compulsory Confirmation - due to the unsuccessful orderly conversion of lands with uncertain status
(for various reasons such as ignorance of the law, costs, etc.) the Cadastral Act was passed in 1913 where
the government declared specific cities or municipalities to be subject to comprehensive cadastral survey.
All lands in the local government unit were included in the survey and their claimants identified, in the
process.
Housing and Land Use Regulatory Board (EO 648): the national agency that sets policies and standards,
reviews local development plans and zoning ordinances, and resolves land use conflicts;
Local government units (municipalities and cities): prepares local development plans, land use plans and
zoning ordinances, subject to conform with the comprehensive provincial land use plans, except for highly
urbanized and independent component cities.
LGUs are authorized to process and approve subdivision plans for residential, commercial or industrial,
and other development purposes
6. Land Conservation
Effected through declaration of parks and open spaces, green belts and buffer zones, including preservation
of historical and cultural landmarks, with or without improvements;
Integrated Protected Area System (IPAS): created by the Department of Agriculture to protect prime
agricultural lands all over the country from indiscriminate conversion to other uses, ensuring food security
and maintaining ecological balance.
Act 1470 - Bureau of Lands mandated to administer the distribution of friar lands under Act 1120.
P.D. 1529 – June 11, 1978, Property Registration Decree (Governs until today)
Update Act 496 and consolidate all other relevant laws on registration of property.
Jurisdiction on applications for new titles given to the Regional Trial Courts.
Expanded scope of registration to include – judicial confirmation of imperfect titles, cadastral
registration proceedings, voluntary proceedings, involuntary proceedings, certificates of land
transfer and emancipation patents from agrarian reform, and reconstruction of lost or destroyed
titles.
TORRENS SYSTEM
Act 496, 1903 - established the Torrens system in the Philippines for the following purposes -- .
1) To “quiet title to land” – to remove claims upon its legality, except for those annotated.
2) To put a stop to any question of legality of title, except claims noted at the time of registration or
which may arise subsequently;
3) The system does not create titles but confirms a title already created and vested rendering it
indefeasible.
Original registration
Before a title can be registered for the first time, the proper proceedings are undertaken judicially
or administratively.
Proceedings shall be “in rem” (an action to determine title to property and the rights of the parties
not merely among the parties to the lawsuit but also against all persons at any time claiming an
interest in that property. It determines rights in property that are conclusive against the whole
world. Action ”in rem” is permitted by a particular court only when that court has authority over
the property or when the courts jurisdiction extends to cover it. The judgment can only be against
the land and not its owner. Jurisdiction of a court can be exercised, only after parties who are
known to have an interest in the property are notified of the proceedings and have been given a
chance to present their claim to the court)
Once a title is registered, it becomes the best evidence of ownership. After a registration is
completed, and there exists no fraud, there can be no more third party claimants. The owner may
rest secure.
Transfer of Ownership
Without a legal system of land registration, a sale of property is effected by a document called “Warranty
Deed” where seller warrants full ownership - could result in disputes, such as defective previous
conveyances, double-sale, illegitimate seller, etc., which requires lengthy judicial proceedings.
Under the Torrens system, such disputes are virtually inexistent, except in cases of fraud.
Where a property is subject to a contract to sell which is not yet perfected, the conveyance
instrument should ideally be registered.
Section 50 of Act No. 496 - provides that the act of registration shall be the operative act to convey
and affect the land. Section 55 of the same Act requires the presentation of the owner's duplicate
certificate of title for the registration of any deed or voluntary instrument.
If the owner refuses to surrender the duplicate certificate the grantee may file with the Register of
Deeds a statement setting forth his adverse claim, as provided for in Section 110 of Act No. 496.
Under various laws which began with Act 966 in 1903, alienable and disposal agricultural public lands and
those which became residential in use could be acquired by eligible citizens of the Philippines through the
Patent system. The DENR (previously Bureau of Lands) issues various patents --
Any Filipino citizen who is an actual occupant of a residential land may apply for a Free Patent
Title, provided that in
o highly urbanized cities, the land should not exceed 200 sqm;
o other cities - should not exceed 50 sqm
o first class and second class municipalities - should not exceed 750 sqm
o all other municipalities - it should not 1,000 sqm
o provided further, that the land applied for is not needed for public service and/or public
use.
Application
o Supported by survey plan, technical description, affidavit of two disinterested persons
attesting that the applicant has, either by himself or through his predecessor-in-interest,
o actually resided on and continuously possessed and occupied, under a bona fide claim of
acquisition of ownership, the subject land for at least ten (10) years.
Period for Application: CENRO within 120 days, forward to PENRO- 5 days to approve or
disapprove the patent.
Homestead Patent - initially a one-year tenure for agricultural lands of the public domain.
Applicants are required to accomplish and file final proof after the expiration of one year and a
homestead patent is issued after the applicant has satisfactorily complied with the residence and
cultivation requirement of the law.
Who may apply - Citizen of the Philippines, over 18 years of age or head of the family, not an
owner of more than 12 has. (Reduced to 3 has. by the application RA 6657 under DENR Memo
Circular No. 22 dated November 20, 1989).
Homesteader must
o begin to work the homestead within six (6) months from approval
o must cultivate at least 1/5 of the area within one to five years; and
o must reside continuously for at least one year in the municipality where the land is located
or in an adjacent municipality.
After fulfilling the residence and cultivation requirements, patent with complete technical
description of the land is prepared and signed (as above) and the patent is transmitted to the
Register of Deeds for registration and issuance of title.
Restrictions: "Section 118 of CA 141 -- . Except in favor of the Government or any of its branches, units,
or institutions, lands acquired under free patent or homestead shall not be subject to encumbrance or
alienation for a term of five years, nor shall they become liable to the satisfaction of any debt contracted
prior to the expiration of said period..
Sales patents for agricultural public lands disposable under Chapter V of C.A. 141, as amended, not more
than 12 hectares, may be acquired at public auction thru sealed bidding where an applicant has the
option to equal the highest bid.
The land must be alienable and disposable, free from claims and conflicts, surveyed.
Who may apply
o Any Filipino Citizen of legal age; if not of legal age, who is the head of the family.
The awardee shall, by himself and not through share tenants, occupy and cultivate the land
immediately or not later than six (6) months from the date of the award, and shall so occupy and
cultivate the same continuously until the issuance of patent thereof, and shall have at least one fifth
(1/5) of the area actually occupied, imported and cultivated in order to be entitled to a patent.
On submission of proofs of full payment of purchase price of the land, a Sales Patent in Judicial
Form No. 11 is issued and transmitted to the Register of Deeds concerned.
Note: Applicable to all kinds of sales applications. DAO 38, S-1990: Patents for 5 hectares and
below - signed by the Regional Executive Director; more than 5 hectares - signed by DENR
Secretary.
- covers lands of the public domain to be utilized for residential, commercial or industrial or other
productive purposes other than agricultural, disposable under Chapters IX & X of Commonwealth Act
No. 141, as amended.
Note: Under the provision of the New Constitution, corporation or associations are not allowed
to acquire public lands thru purchase, only thru lease.
The awardees shall commence the construction of the improvements appropriate for the purpose
for which the land is purchased within six (6) months from the receipt of the order of award and
shall complete the said construction within eighteen (18) months from the date of the award.
After this is done, a Miscellaneous Sales Patent in Judicial Form No. 167 is issued and sent to the
RD.
R.A. 730 authorizes the Regional Executive Director of DENR to sell pre-occupied public land
if justified after due investigation, appraisal, review and concurrence by DPWH.
Maximum area 1,000 sq.m.
Miscellaneous Sales Patent in Judicial Form No. 167.
Who may apply –
o Filipino citizen; at least 21 years of age; married, and if single
o must be the bread winner or head of the family
o Do not own any home lot in the city or municipality where the land applied for is located.
o Must have actually occupied in good faith the land applied for and constructed a house
thereon where he is actually residing.
covers lands already titled in the name of the Government (patrimonial property of the
Government)
to be utilized for residential or agricultural purposes disposable under Act 3038 and
sold at public auction thru oral or sealed bidding.
Who may avail
o Any Filipino citizen of legal age or is the head of the family.
o If approved, a Deed of Sale is issued.
Land may be leased long-term for residential commercial, industrial, or other productive purposes
other than agricultural and disposable
Lease shall be by public auction thru public bidding.
Who may apply?
o Any Filipino citizen of lawful age.
o Corporation, association of partnership duly constituted under the laws of the Philippines
at least sixty per centum (60%) of the capital is owned by Filipino citizen.
ADVERSE CLAIMS
Such statement must be signed and sworn to before a notary public or other officer authorized to administer
oath.
The claimant shall state his/her residence or place to which all notices may be served.
Section 70 - PD 1529
The adverse claim shall be effective for a period of thirty (30) days from the date of the registration
and it may be cancelled in the following ways, among others:
After the lapse of thirty days, upon the filing by the party in interest of a verified petition for such
cancellation. No second adverse claim based on the same ground may thereafter be registered by
the same claimant.
Before the lapse of the thirty day period, when a party in interest files a petition for cancellation
before the Regional Trial Court. If after due notice and hearing, the court finds the claim to be
invalid, it will order the cancellation of the claim and may fine the claimant.
If a property is being contested by several parties in court, the subsequent annotation of a notice of lis
pendens on the certificate of title on file with the Register of Deeds also serves the purpose of an
adverse claim.