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PRESIDENTIAL DECREE NO. 27: THE TENANT EMANCIPATION LAW

As a product of solid desire to eradicate the old concept of land ownership by a few that has spawned
valid and legitimate grievances that gave rise to violent conflict and social tension for years in the
country1, Presidential Decree No. 27, more popularly known as the Tenant Emancipation Law was
promulgated on October 1, 1972 by President Ferdinand Marcos.
APPLICABILITY OF THE LAW
The Tenant Emancipation Law supplements the Comprehensive Agrarian Reform Law. It applies only to
private agricultural lands primarily devoted to rice and corn under share tenancy or lease-tenancy.
In Daez v. Court of Appeals, G.R. No. 133507, February 17, 2000, the Supreme Court provided the
requirements for coverage under the law in this wise:
"PD 27, which implemented the Operation Land Transfer (OLT) Program, covers tenanted rice or corn
lands. The requisites for coverage under the OLT Program are the following: (1) the land must be
devoted to rice or corn crops; and (2) there must be a system of share-crop or lease tenancy obtaining
therein. If either requisite is absent, a landowner may apply for exemption. If either for [sic] those
requisites is absent, the land is not covered under OLT.
It is important to note that the law is not available if (1) the land is not devoted to rice or corn crops
even if it is tenanted or (2) if the land is untenanted even though devoted to rice or corn crops.
The ruling on Solmayor v. Arroyo, G.R. No. 153817, March 31, 2006 further quantified and provided for
the essential requisites for the establishment of tenancy relationship quoting the ruling on Prudential
Bank vs Gapultos, G.R. No. L-41835, January 19, 1990, thus:
"The essential requisites of tenancy relationship are: (1) the parties are the landowner and the tenant;
(2) the subject is agricultural land; (3) there is consent; (4) the purpose is agricultural production; (5)
there is personal cultivation; and (6) there is sharing of harvests. All these requisites must concur in
order to create a tenancy relationship between the parties. The absence of one does not make an
occupant of a parcel of land, or a cultivator thereof, or a planter thereon, a de jure tenant. Unless a
person has established his status as a de jure tenant, he is not entitled to security of tenure nor is he
covered by Land Reform Program of the government under existing tenancy laws."
TRANSFER OF LANDS TO TENANTS
Presidential Decree No. 27:

Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

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The tenant farmer, whether in land classified as landed estate or no, shall be deemed owner of a
portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if
irrigated,4
Section 1 of Executive Order No. 228:
SECTION 1. All qualified farmer beneficiaries are now deemed full owners as of October 21, 1972 of
the land they acquired by virtue of Presidential Decree No. 27 (hereinafter referred to as P.D.No. 27).5
The phrase shall be deemed owner or are now deemed full owners does not mean automatic
transfer of title or ownership of the land to the tenant or lessee. There has to be full payment of just
compensation before the landowner could be divested of his land, otherwise, the land would be taken
without just compensation in violation of the constitutional injunction against taking of private property
without just compensation. Therefore, notwithstanding the phrase shall be deemed owner, or are
now deemed full owners the title and ownership over the land will be transferred to the beneficiaries
only upon full payment of the just compensation to the landowner.
SIZE OF LAND TO BE TRANSFERRED TO THE TENANT-FARMER
The tenant-farmer can own as much as:
(a) Five hectares (5), if not irrigated; or (b) Three hectares (3), if irrigated;
STAGES OF LAND TRANSFER
There are only two stages in effecting absolute land ownership through Presidential Decree No. 27:
1st Stage: Issuance of a Certificate of Land Transfer (CLT) to the farmer-beneficiary; and
2nd Stage: Issuance of Emancipation Patent (EP).
SIGNIFICANCE OF THE CERTIFICATE OF LAND TRANSFER (CLT)
The CLT does not vest upon the tenant-beneficiary ownership over the land.7 It merely qualifies the
tenant-beneficiary to possess the land and comply with the certain conditions preparatory to
ownership.8 If the tenant-beneficiary complies with the conditions, he is issued an Emancipation Patent.
SIGNIFICANCE OF AN EMANCIPATION PATENT (EP)
The EP vests upon the farmer-beneficiary absolute ownership over the landholding, and it constitutes
conclusive authority for the issuance of an original or transfer certificate of title in his name.10
INDEFEASIBILITY OF EMANCIPATION PATENTS

Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

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Emancipation Patents
are titles brought under the operation of the Torrens System.
Torrens System- method of registering titles of Real Property.
EPs becomes indefeasible and imprescriptible after one (1) year from its registration within the Office
of Registry of Deeds under Comprehensive Agrarian Reform Law and Property Registration Decree and
other pertinent laws.

COMPREHENSIVE AGRARIAN REFORM LAW SEC. 24

SEC. 24. Award to Beneficiaries. - The rights and responsibilities of the beneficiaries shall commence
from their receipt of a duly registered emancipation patent or certificate of land ownership award and
their actual physical possession of the awarded land. Such award shall be completed in not more than
one hundred eighty (180) days from the date of registration of the title in the name of the Republic of
the Philippines: Provided, That the emancipation patents, the certificates of land ownership award, and
other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one
(1) year from its registration with the Office of the Registry of Deeds, subject to the conditions,
limitations and qualifications of this Act, the property registration decree, and other pertinent laws. The
emancipation patents or the certificates of land ownership award being titles brought under the
operation of the torrens system, are conferred with the same indefeasibility and security afforded to all
titles under the said system, as provided for by Presidential Decree No. 1529, as amended by Republic
Act No. 6732.
Presidential Decree No. 1529 "AMENDING AND CODIFYING THE LAWS RELATIVE TO REGISTRATION OF
PROPERTY AND FOR OTHER PURPOSES
Republic Act No. 6732 AN ACT ALLOWING ADMINISTRATIVE RECONSTITUTION OF ORIGINAL COPIES
OF CERTIFICATES OF TITLES LOST OR DESTROYED DUE TO FIRE, FLOOD AND OTHER FORCE MAJEURE,
AMENDING FOR THE PURPOSE SECTION ONE HUNDRED TEN OF PRESIDENTIAL DECREE NUMBERED
FIFTEEN TWENTY-NINE AND SECTION FIVE OF REPUBLIC ACT NUMBERED TWENTY-SIX
REPUBLIC ACT NO. 9700 AN ACT STRENGTHENING THE COMPREHENSIVE AGRARIAN REFORM
PROGRAM (CARP), EXTENDING THE ACQUISITION AND DISTRIBUTION OF ALL AGRICULTURAL LANDS,
INSTITUTING NECESSARY REFORMS, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF REPUBLIC
ACT NO. 6657, OTHERWISE KNOWN AS THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, AS
AMENDED, AND APPROPRIATING FUNDS THEREFOR
CANCELLATION OF EMANCIPATION PATENTS
Emancipation Patents may be cancelled of the following grounds:

Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

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Abandonment of land
Neglect or misuse of land
Failure to pay three (3) annual amortization.
Misuse or diversion of financial and support services.
Sale , transfer or conveyance of the right to use the land.
Illegal conversion of the land
Jurisdiction over cancellation of Emancipation Patents
Secretary of the Department of Agrarian Reform
The tenant-beneficiary cannot sell or transfer ownership of the land under the Tenant Emancipation
Law except to the GOVERNMENT, or by HEREDITARY SUCCESSION.
Presidential Decree No.27
Title to land acquired pursuant to this Decree or the Land Reform Program of the Government shall not
be transferrable except by hereditary succession or to the Government in accordance with the
provisions of this Decree, the Code of Agrarian Reforms and other existing laws and regulations
The tenant-Farmer will pay the Land Bank.
Total costs of the land
+ interest (6%) per annum for 20years
= annual amortization
Issuance of Emancipation Patent
Executive Order No.228 DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER BENEFICIARIES
COVERED BY PRESIDENTIAL DECREE NO. 27: DETERMINING THE VALUE OF REMAINING UNVALUED RICE
AND CORN LANDS SUBJECT TO P.D. NO. 27; AND PROVIDING FOR THE MANNER OF PAYMENT BY THE
FARMER BENEFICIARY AND MODE OF COMPENSATION TO THE LANDOWNER
Sec. 6. The total costs of the land including interest at the rate of six percent (6%) per annum with a
two percent (2%) interest rebate for amortizations paid on time, shall be paid by the farmer-beneficiary
or his heirs to the Land Bank over a period up to twenty (20) years in twenty (20) equal annual
amortizations. Lands already valued and financed by the Land Bank are likewise extended a 20-year
period of payment of twenty (20) equal annual amortizations. However, the farmer-beneficiary if he so
elects, may pay in full before the twentieth year or may request the Land Bank to structure a repayment
period of less than twenty (20) years if the amount to be financed and the corresponding annual
obligations are well within the farmer's capacity to meet. Ownership of lands acquired by the farmerbeneficiary may be transferred after full payment of amortizations.
PAYMENT OF JUST COMPENSATION TO THE LAND OWNER
Payable to the land owner who can choose among the following modes of payment:
Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

1. Direct Payment to him by the farmer beneficiaries.

- in cash or in kind
- mutually agreed terms
- approval of the Dept. Of Agrarian Reform
2. Payment by the Land Bank
- 10% cash immediatly
- 90% land bank bonds
- payable in 10 years
- 10% face value maturity per year till 10 years
3. Other modes of payment as may be prescribed or approved by the presidential agrarian reform
council.

Case Digest: MAGO VS VARBIN G.R. No. 173923 (October 12, 2009)
FACTS: On 11 November 1994, respondent Juana Z. Barbin filed with the Provincial Agrarian Reform
Adjudicator (PARAD) of Camarines Norte an action for Cancellation of Emancipation Patents,
Disqualification of Tenant-Beneficiary, Repossession and Damages. Respondent alleged that she is the
owner in fee simple of an irrigated riceland located in Barangay Guinacutan, Vinzons, Camarines Norte,
with an area of 4.7823 hectares, and that Augusto Mago, Crispin Mago, Ernesto Mago, and Pedro Mago
were tenants of the subject landholding. Respondent further alleged that petitioners violated the terms
of their leasehold contracts when they failed to pay lease rentals for more than two years, which is a
ground for their dispossession of the landholding.
On the other hand, petitioners alleged that the subject landholding was placed under the Operation Land
Transfer program of the government pursuant to Presidential Decree No. 27 (PD 27).3 Respondents title,
OCT No. P-4672, was then cancelled and the subject landholding was transferred to Augusto Mago,4
Crispin Mago,5 Ernesto Mago,6 and Pedro Mago,7 who were issued Emancipation Patents on 20
February 1987 by the Department of Agrarian Reform (DAR). The Transfer Certificates of Title issued to
petitioners8 emanating from the Emancipation Patents were registered with the Registry of Deeds on 9
February 1989. Petitioners averred that prior to the issuance of the Emancipation Patents, they already
delivered their lease rentals to respondent. They further alleged that after the issuance of the
Emancipation Patents, the subject landholding ceased to be covered by any leasehold contract.
ISSUE: Whether or Not the Emancipation Patents and Transfer Certificates of Title issued to the
Petitioners which were already registered with the Register of Deeds have already become indefeasible
and can no longer be cancelled
HELD: YES they can be cancelled. The mere issuance of an emancipation patent does not put the
ownership of the agrarian reform beneficiary beyond attack and scrutiny. Emancipation patents issued
Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

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to agrarian reform beneficiaries may be corrected and cancelled for violations of agrarian laws, rules and
regulations
Grounds for the cancellation of registered EPs [Emancipation Patents] or CLOAs [Certificates of
Landownership Award] may include but not be limited to the following: .. 6. Default in the obligation to
pay an aggregate of three (3) consecutive amortizations in case of voluntary land transfer/direct
payment scheme, except in cases of fortuitous events and force majeure;
There is no substantial evidence on record that the petitioners had remitted the amortizations due to the
landowner in accordance with their agreed direct payment scheme embodied in their deeds of transfer.
While this Court commiserates with respondents in their plight, we are constrained by the explicit
requirements of the laws and jurisprudence on the matter to annul the emancipation patents issued to
respondents in the absence of any proof that they or the LBP has already fully paid the value of the lands
put under the coverage of Pres. Decree No. 27. The requirement is unequivocal in that the values of the
lands awarded to respondents must, prior to the issuance of emancipation patents be paid in full.

RETENTION RIGHT OF LAND OWNER

The Landowner is entitled to retain an area of not more than 7 hectares, if such landowner is
cultivating or will now cultivate it. Personal cultivation is not required.

If the landowner has already exercised his right of retention under PD # 27 he can no longer
exercise the right under CARL. He can, however, keep the 7 hectares granted under PD # 27

If he chooses to retain the 5 hectares under CARL; the 7 hectares previously retained to him
under PD #27 shall be immediately placed under the coverage of the CARL

Landowners covered by PD 27 are entitled to retain seven hectares, except those whose entire
tenanted rice and corn lands are subject of acquisition and distribution under Operation Land
Transfer (OLT). An owner of tenanted rice and corn lands may not retain these lands under the
following cases:
1. If he, as of 21 October 1972, owned more than 24 hectares of tenanted rice and corn lands;
2. By virtue of LOI 474, if he as of 21 October 1976, owned less than 24 hectares of tenanted
rice or corn lands, but additionally owned the following:

Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April

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- Other agricultural lands of more than seven hectares, whether tenanted or not, whether
cultivated or not, and regardless of the income derived therefrom; or
- Lands used for residential, commercial, industrial or other urban purposes, from which he
derives adequate income to support himself and his family.

Subsequently, or on June 10, 1998, Congress passed RA 6657 which modified the retention
limits under PD 27. In particular, Section 651 of RA 6657 states that covered landowners are
allowed to retain a portion of their tenanted agricultural land not exceeding an area of five (5)
has. and, further thereto, provides that an additional three (3) has. may be awarded to each
child of the landowner subject to certain qualifications. While landowners who have not yet
exercised their rights of retention under PD 27 are entitled to the new retention rights provided
by RA 6657, a landowner who filed an application under RA 6657 shall be subject to the
limitations stated under LOI 474 as above stated.

Section 6 of R.A. 6657 implies that the sole requirement in the exercise of retention rights is that
the area chosen by the landowner must be compact or contiguous

JURISDICTION OVER RETENTION OR EXEMPTION ISSUES

Issues pertaining to retention rights of the landowner and the exclusion or exemption from
agrarian reform coverage are cognizable by the Sec. Of the Department of Agrarian Reform.
CARL SEC. 50. Quasi-Judicial Powers of the DAR. The DAR is hereby vested with
primary jurisdiction to determine and adjudicate agrarian reform matters and shall have
exclusive original jurisdiction over all matters involving the implementation of agrarian
reform, except those falling under the exclusive jurisdiction of the Department of
Agriculture (DA) and the Department of Environment and Natural Resources (DENR).
In Sta. Rosa Realty Development Corporation v. Amante, the Court pointed out that the
jurisdiction of the DAR under the aforequoted provision is two-fold. The first is
essentially executive and pertains to the enforcement and administration of the laws,
carrying them into practical operation and enforcing their due observance, while the
second is judicial and involves the determination of rights and obligations of the parties.

Reported by:
Amulong, Mary Grace
De Jesus, Maria Anna Cristina
Mangulabnan, Maraiah April