o

COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

APPLICABILITY OF LAW: agricultural lands only

MEANING OF AGRICULTURAL LAND: lands that are arable and suitable for farming
CONSTITUTIONALITY OF THE CARL: it is a valid exercise of police power

THE PRIMARY OBJECTIVE OF AGRARIAN REFORM

To breakup agricultural lands and transform them into economic-size farms to be

owned by farmers themselves to uplift the latters socio-economic status
o
Meaning of Economic-size farms: area of farm land that permits efficient use
of labor and capital resources; to produce income sufficient to meet needs
of family

Founded on the right of farmers/farm workers to own the lands they till or receive just
fruits thereof.
RAISING OF LIVESTOCK, POULTRY, OR FISH NOT EMBRACED IN THE TERM AGRICULTURE

Classified as Industrial and exempt from the agrarian reform program

LANDS COVERED BY THE AGRARIAN REFORM LAW

As a general rule:
o
All public and agricultural lands
o
Including other lands of the public domain suitable for agriculture

SECTION 4, CARL
o
LANDS NOT COVERED BY THE AGRARIAN REFORM LAW
IMPLEMENTATION EXTENDED BY RA 9700
1. Private lands with a total are of 5 ha and below;
2. Lands actually, directly, and exclusively used for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves;
3. Private lands actually, directly, and exclusively used for prawn farms and fishponds;
4. Lands actually, directly, and exclusively used and found to be necessary for:
a. National defense;
b. School sites ands campuses;
c. Experimental farm stations operated for educational purposes;
d. Seeds and seedling research and pilot production center;
e. Church sites and convents appurtenant thereto;
f.
Mosque sites and Islamic centers appurtenant thereto;
g. Communal burial grounds and cemeteries;
h. Penal colonies and penal farms actually worked by the inmates;
i.
Research and quarantine centers; and
j.
All lands with eighteen percent (18%) slope and over, except those already
developed
RETENTION RIGHTS (RR) OF THE LANDOWNER (LO)

Not more than 5 ha.

Retained area need not be personally cultivated by LO

o
Can be through labor administration
IF PREVIOUS EXERCISE OF RR UNDER PD 27?

LO can no longer exercise RR under CARL

FOR SPOUSES

RR DEPENDS ON PROPERTY REGIME

o
Conjugal or absolute community: only 5 ha

Separation of property: 5 HA each (Total of 10 ha)

WHO HAS RIGHT TO CHOOSE RETENTION AREA: LO

IF LAND ALREADY COVERED BY EMANCIPATION PATENT (EP) OR CERTIFICATE OF LAND OWNERSHIP
AWARD (CLOA)?

ISSUANCE DOES NOT ABSOLUTELY BAR LO FROM RETAINING THE AREA COVERED BY THE EP
OF CLOA
o
IF LO IS DEPRIVED OF RR
!
REMEDY of LO: file cancellation of EP or CLOA if land covered
by such is found to be part of owners retained area
(under Administrative Order No 2, series of 1994)
IF RETENTION AREA CHOSEN BY LO IS TENANTED?

There must be landlord-tenant relationship

o
How to determine?
!
LO has engaged person to personally cultivate an agricultural
land; and
!
LO is compensated in terms of share in the produce (Share
Tenancy) or in terms of a price certain or ascertainable in produce
or money or both (Leasehold Tenancy)

Tenant to choose either to remain or be a beneficiary in the same or another

agricultural land with similar or comparable features

Tenant to exercise option 1 year from time LO manifests his choice for area of
retention
EFFECT IF TENANT CHOOSES TO REMAIN IN THE RETAINED AREA

Tenant is now considered as agricultural lessee

No longer qualified as agricultural reform beneficiary

1.
2.

3.
4.
5.
6.

AGRICULTURAL LESSEE
RIGHTS
OBLIGATIONS
Peaceful possession and
(See page 20 for full text)
enjoyment of land
1. Take care of farm
Manage and work on land in
2. Inform lessor of trespass
manner conforming to proven
3. Care of animals and
farm practices
implements
Mechanized any pahase of
4. Attend to farm and crops
farmwork
5. Notify lessor of harvesting or
Deal with millers and
threshing
processors
6. Pay lease when due
Be afforded a homelot
Be indemnified for cost and
expense in cultivation,
planting or harvesting and
other expenses incidental to
improvement of crop

TERM OF LEASE

Continues until extinguished

When is lease extinguished?

o
Abandonment or voulntary surrender of the landholding by the lessee
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

gov acquires lands " just compensation by DAR "Distribute lands "LGU can then
expropriate land and pay beneficiaries just compensation

Absence of successor in the event of death or permanent incapacity of the

lessee
But lease not necessarily extinguished by death or incapacity of the Lessee, leasehold
continues and

IF TENANT CHOOSES TO BE A BENEFICIARY

He loses right to be a beneficiary for same or other agri land

He loses right to be lessee of land retained by owner

CHILDREN OF LO ENTITLED TO 3 HA EACH

If LO owns more than 5 ha; excess may be awarded to his children

3 ha each; with the ff conditions
o
child must be at least 15 y.o.; AND
o
child is actually tilling the land or directly managing the farm
If child owns land, he is still entitled to award, but must not exceed 5 ha. ceiling
Land awarded to children cant be sold, transferred or conveyed within a period of 10
years except:
o
Through hereditary succession;
o
To the government;
o
To the LBP; or
o
To other qualified beneficiaries
Children or spouse of transferor has right to repurchase land from gov or LBP within 2
years from date of transfer
LAND ENTITLEMENT
Landowner (LO)
5 ha. Retention limit
Spouses: Property Regime
1. Absolute Community
5 ha. Only
2. Separation of Property
5 ha. Each (total of 10 ha.)
Children of LO
3 ha each with conditions
If already owns land, still entitled
but must not exceed 5 ha limit
Homesteaders
Can retain even if exceeding 5 ha
with conditions (cultivate at time
of approval of CARL, continue to
cultivate)
Commercial farm beneficiaries
3 ha. or minimum of 1 ha. each
Agrarian reform beneficiaries
3 ha
Buyer of agricultural land
5 ha (need to submit affidavit of
aggregate land holding before
registering the title)

RIGHT OF HOMESTEADERS VIS A VIS RIGHTS OF TENANTS

Right of homesteaders superior over rights of tenants

Homestead act is for welfare and protection of the poor

Owners of lands acquired through homestread gratns or free patents under CA 141
can RETAIN THE AREA even if it exceeds 5 ha. provided that:
o
They were cultivating the same at time of approvial of the CARL; and
o
They continue to cultivate the same.
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LGUS

LGU must first subject it to agrarian reform coverage

PROCESS:

LANDS POSSESSED BY MULTINATIONAL CORPS ARE COVERED BY CARL

Land to be distributed directly to individual worker- beneficiaries

If not economically feasible: worker beneficiaries to form a cooperative or association

to deal with corp by lease or growers agreement etc
ANCESTRAL LANDS

Lands occupied, possessed, and utilized by individuals, families, and clans who are
members of the indigenous cultural communities or indigenous peoples by themselves
of through their predecessors-in-interest under individual or group ownership,
continuously to the present.

Ancestral lands are EXEMPTED from Agrarian Reform Law

LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT CONCLUSIVE

Not sole basis of land classification; not irrefutable

LANDS NOT COVERED:

Lands classified as non agricultural prior to the effectivity of carl are not covered

Lands with at least 18% slope

o
to prevent adverse effects in lowlands and streams resulting from soil
erosion
o
considered as permanent forests or forest reserves

School Sites and Campuses

o
School has discretion (not DAR) to determine whether kand is necessary for
use as school site or campus
WHO HAS JURISDICTION TO EXEMPT A PROPERTY FROM AGRARIAN REFORM COVERAGE?

The Secretary of Agrarian Reform

COMMERCIAL FARMS (CF)

AGRARIAN REFORM LAW DEFERRED ON COMMERCIAL DFARMS

o
10 years

MODE OF ACQUISITION OF CF
o
Voluntary offer to sell (VOS)
o
Compulsary acquisition (CA); or
o
Direct payment scheme (DPS)

MANNER OF DISTRIBUTION
o
3 ha. each or minimum of 1 ha. each
o
Individually
o
Collectively

QUALIFICATIONS OF QUALIFIED CF BENEFICIARIES

o
> 18 y.o. at time of filing
o
Must have willingness, aptitude, and ability to cultivate and make land
productive
o
Must have been employed in CF from june 15, 1998 or upon expiration of
deferment
o
Farm workers who worked longest on land continously will be given priority
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

WHO ARE DISQUALIFIED?

o
Optional or compulsary retired farm workers
o
Resigned farm workers
o
Dismissed farm workers for cause
o
Those farmworkers who waive or refuse to be beneficiary
o
Farm workers who violate agrarian reform loaws and regulation
FREEDOM OF BENEFICIARIES TO CHOOSE TYPE OF AGRIBUSINESS
o
They have freedom to choose type of business
o
To market their products or enter into marketing agreements
o
To avail of assistance or services in negotiationg the most advantageous
agribusiness venture arrangmeent, enterprise devt and capability building
TYPES OF AGRIBUSINESS VENTURE ARRANGEMENTS
o
Joint venture agreement
o
Lease agreement
o
Contract growing/ growership arrangement
o
Management contract
o
Build-Operate-Transfer Scheme

OWNERS OF CFS HAVE RIGHTS OF RETENTION OVER COMMERCIAL FARMS

POWER OF DAR TO FIX RENTALS

o
Provided under Sec.6 of CARL

PROCEDURE FOR DETERMINATION OF JUST COMPENSATION

LBO determines value of land

Mode of payment
o
LO cannot insist in cash payment only
o
GR:
!
Cash and financial instruments of the government,
!
Land Bank Bonds,
!
Shares of stocks in GOCC,
!
Tax credits
For Cash and Financial Instruments of the
Government (Schemes)
Lands above 50 ha.
25% cash
75% government
financial instruments

IDENTIFY " SEND NOTICE "REPLY BY LO " POSSESSION BY DAR " DAR REQUEST TO ISSUE TCT
" DISTRIBUTION OF LAND

" DAR makes offer to LO "DAR determines compensation

"if disagree: bring matter to RTC as SAC for final determination of compensation

THE COMPULSARY ACQUISITION PROCESS

!
<10M: PARAD will conduct prelim proceedings
!
10M < 50M: RARAD
!
50M < Land Value: DARAB
When is the reckoning of valuation?
o
At the time it was taken from owner and appropriated by the government
o
BUT if with undue delay:
!
at the time of full payment of just compensation (Lubrica v
Landbank)
Valuation by DAR not conclusive
o
LO may still contest in proper court

Lands above
ha.

TWO NOTICES TO LO NEEDED FOR VALID IMPLEMENTATION

o
Notice of coverage
o
Notice of acquisition
LAND ACQUISITION PROCEDURE: STRICTLY CONSTRUED
o
Why? since extraordinary method of expropriation
o
Violation by DAR = violation of constitutional due process GAD

24 50

30% cash
70% government
financial instruments

Lands above 24 ha and

below

35% cash
65% government
financial instruments

JUST COMPENSATION

Source: Agrarian Reform Fund

o
If insufficient charged against the debt service program of the national
government or any unprogrammed item in the GAA
Method: cash and land bank bonds
Opening of trust account does not constitute payment
Title of or ownership of land is transferred to the state only upon just compensation
Factors used in the valuation of lands
o
Capitalized Net Income
o
Comparable Sales
o
Market Value
Preliminary determination of just compensation
o
DARAB may conduct summary admin proceeding to determine just
compensation
o
If initial land valuation is

Voluntary Transfer no longer allowed

o
Till June 30, 2009 only
o
Mode of payment: beneficiary pays price directly to LO

FORMULAS (READ THE BOOK IF YOU WANT TO LEARN THIS. HEHE. )

AGRARIAN REFORM BENEFICIARIES

WHO ARE ELIGIBLE?

o
Landless resident of same barangay/ municipality
o
Landless resident farmer or tiller who owns less than 3 ha. of land
!
Agricultural lessees and share tenants
!
Regular farmworkers
!
Seasonal farmworkers
!
Other farmworkers
!
Actual tillers or occupants of public lands
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

!
!

Collectives or cooperatives of the above beneficiaries

Others directly working on the land.

QUALIFICATIONS OF AGRARIAN REFORM BENEFICIARIES

o
Filipino citizen
o
Resident of the brgy or municipality where landholding is located
o
At least 15 years old
o
Willing able and equipped with attitude to cultivate and make land
productive

SPECIAL QUALIFICATIONS FOR FARM WORKERS IN COMMERCIAL FARMS OF PLANTATIONS

o
If they were employed as of June 15,1988 in the landholding under CARL

MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME BENEFICIARIES

WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM BENEFICIARIES? (13)

1) Those who do not meet the basic qualifications
2) Those who have waived their right
3) Those who have not paid an aggregate of 3 annual amortizations
4) Those who have failed to exercise their right of redemption/repurchase
within 2 years
5) Those who refused to pay 3 annual amortizations for land
6) Those who have been dismissed for cuase
7) Those who have obtained substantially equivalent employment
8) Those who have retired or voluntarily resigned from their employment
9) Those who have misused the land or diverted the financial support services
extended by the government
10) Those who have misrepresented material facts in their basic qualifications
11) Those who have sold, disposed, abandoned the lands awarded to them by
the government
12) Those who have converted agricultural lands to non agricultural use wo prior
approval of the DAR
13) Those who have violated agrarian reform laws and regulations
MAXIMUM AREA TO BE OWNED OR AWARDED TO BENEFICIARIES

Type of crop
Type of soil
Weather patterns; and
Other pertinent factors critical for the success of the beneficiaries

TRANSFER OF OWNERSHIP TO BENEFICIARIES NOT AUTOMATIC

o
Will only be transferred upon full payment of just compensation to the
landowner

CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA)

CLOA IS INDEFEASIBLE
o
Become indefeasible after 1 year from registration with the registry of deeds

CANCELLATION OF CLOAS
o
UNDER JURISDICTION OF THE SECRETARY OF DAR

GROUNDS FOR CANCELLATION OF CLOAS

o
Abandonment of the land;
o
Neglect or misuse of the land;
o
Failure to pay 3 annual amortizations;
o
Misuse or diversion of financial and support services;
o
Sale, transfer, conveyance of the right to use the land; and
o
Illegal conversion of the land

BENEFICIARIES
WHEN WILL RIGHTS AND OBLIGATIONS OF BENEFICIARIES COMMENCE?

From their receipt of the CLOA and actual physical possession of the land
OBLIGATIONS OF BENEFICIARIES

Exercise due diligence in the use, cultivation, and maintenance of the land, including
improvements thereon; and
Pay the LBP 30 annual amortizations with 6% interest per month
o
amortizarion will start 1 year from the date of registration of the CLOA
o
if actual occupancy is after registration; 1 year pd starts from constructive
occupation of the land by beneficiary

PRESIDENTIAL AGRARIAN REFORM COUNCIL (PARC)

Chair

Vice Chairperson

Members
o
must include 6 reps from the agrarian reform beneficiaries
!
at least one from ICC
!
at least one from duly recognized organization of rural women or
a national organization of agrarian reform beneficiaries with a
substantial amount of women members

3 hectares

FACTORS TO BE CONSIDERED IN DETERMINING SIZE OF LAND TO BE AWARDED

o
o
o
o

But those promoted after being identified as beneficiary STILL qualified

WHEN DOES DAR ISSUE A CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA)?

o
Upon full payment of the farmer beneficiary
o
CLOA is basis for issuance of OCT or TCT

COMPOSITION OF THE PARCCOM

CHAIRMAN

EXECUTIVE OFFICER

REPS
BARANGAY AGRARIAN REFORM COUNCIL (BARC)

FUNCTIONS OF THE BARC

o
THOSE PROVIDED UNDER EO 229
o
IN ADDITION TO THOSE STATED IN EO 229
1. Mediate and conciliate
2. Assist in ID
3. Attest to accuracy
4. Assist qualified beneficiaries
5. Assist in initial determination of land value
6. Assist DAR reps
7. Coordinate delivery of support services
8. Perform other functions assigned by DAR
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

CA

Appeal by
Certiorari
under Rule 45

SC

Any Ruling of
DAR

Petition for
Review

SC

QUASI-JUDICIAL JURISDICTION OF THE DAR

Has primary jurisdiction to determine and adjudicate Agrarian reform matters

Appellate jurisdiction over orders and decisions of the Agrarian reform adjudicators
QUASI-JUDICIAL POWERS OF THE DARAB

Hear and decide cases within its jurisdiction

Summon witnesses

Administer oaths

Take testimony

Issue
PROVINCIAL AGRARIAN REFORM ADJUDICATORS (PARAD)

Appeal from decisions of the PARAD

REGIONAL AGRARIAN REFORM ADJUDICATORS (RARAD)
DARAB
DARAB HAS NO JURISDICTION
1. Over matters pertaining to ownership
2. Over retention or exemption issues
3. Over right of way issues
4. To identify and classify landholdings for agrarian reform coverage
5. Over matters pertaining to identification and selection of beneficiaries
AGRARIAN CASE DIRECTLY FILED IN COURT- ACTION TO BE TAKEN
LEGAL PERSONALITY OF UNREGISTERED ASSOCIATION CANNOT BE CHALLENGED
JUDICIAL REVIEW

DAR " CA via petition for review on certiorari under Rule 43 of the Rules of Court
frivolous or dilatory appeals
o
factual matter; based on facts and circumstances
Prerequisite to filing of a complaint before the DARAB
o
BARC certification stating that the dispute has been submitted to it for
mediation and conciliation without any success
o
BARC certification not needed in judicial determination of just
compensation; Special Agrarian Courts has jurisdiction
!
Only needed for cases filed before the DARAB
Remedy from an adverse ruling of the DAR

Adverse ruling of
DAR

DARAB for just

compensation

SAC

Petition
Review on
Certiorari
under Rule 43
Original action

Appeal via
petition for
review under
Rule 43

To
CA

15 days from
notice

SAC

15 days from
receipt of
adjudicators
decision
15 days from
receipt of
notice of
decision

CA

15 days from
receipt of
notice of
decision
15 days from
receipt of
notice of
decision

RTC AS SPECIAL AGRARIAN COURT

Additional jurisdiction of the special agrarian court (SAC)

o
Original and exclusive jurisdiction to hear and decide:
!
Petitions for the determination of just compensation to LO; and
!
Criminal violations of the CARL

Just compensation preliminarily determined by the DARAB should be filed with the
SAC within 15 days from notice
OBJECTIONS TO THE COMMISSIONERS REPORT

Under Rule 32 of Rules of Court; 10 Days to file objection

INTERLOCUTORY ORDERS OF THE SAC

Cant be challenged till case is decided on merits

Why? to expedite resolution of agrarian disputes

REMEDY FROM ADVERSE DECISION OF THE SPECIAL AGRARIAN COURT

not ordinary appeal

appeal via petition for review under Rule 43 of the Rules of Court
REMEDY FROM ADVERSE DECISION OF THE COURT OF APPEALS

Certiorari with the SC under Rule 45, within 15 days from notice

15 day period: non-extendible

ON APPEALS: PROCEDURES IN RULES OF COURT WILL GOVERN
FINANCING

ROLE OF LAND BANK OF THE PHILIPPINES (LBP)

o
LBP is the financial arm of the agrarian reform program
o
LBP determines value of land
CONVERSION

Section 65

DEFINITION
o
Act of changing the current use of a piece of agricultural land into some
other use
!
For residential, commercial, industrial, and other non-agricultural
purposes;
!
For another type of agricultural activity such as livestock, poultry
and fishpond the effect of which is to ecempt the land from CARP
coverage;
!
For non-agricultural use other than that previously authorized

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

RA 78811 Change of crops to commercial or high value crops is NOT

considered as conversion in the use and nature of the land (see page 140
of UNGOS, and RA 7881)

2.

CONVERSION VS RECLASSIFICATION
o
Conversion
!
Changing the current use as approved by DAR
o
Reclassification
!
Specifying how agricultural lands shall be utilized for nonagricultural uses such as residential, industrial, and commercial,
as embodied in the land use plan, subject to the requirements and
procedures for land use conversion
EFFECT OF RECLASSIFICATION
o
Does not automatically allow LO to change land use
o
Has to first undergo CONVERSION
SCOPE OF DARS CONVERSION AUTHORITY
o
Agricultural land reclassified as non agricultural before June 15, 1998
doesnt require conversion clearance or authority from DAR = NOT
COVERED
o
After June 15, 1998: DAR approval required for conversion

WHO CAN APPLY FOR CONVERSION?

o
The Beneficiary
o
The LO with respect only to his retained area which is tenanted

WHEN: PROPER TIME TO FILE APPLICATION FOR CONVERSION?

o
After the lapse of 5 years from the award of the land

WHAT: CONDITIONS FOR FILING AN APPLICATION FOR CONVERSION

1. When the land ceases to be economically feasible for agricultural purposes;
or
2. When the locality has become urbanized and the land will have a greater
economic value for residential, commercial, or industrial purposes.

IF CONVERSION IS APPROVED: OBLIGATIONS OF BENEFICIARY

o
Invest 10% of proceeds from conversion in gov securities
o
Pay the LBP full price of land upon conversion

LANDS THAT CANNOT ABSOLUTELY BE SUBJECT TO CONVERSION (P-I-I-AI)

1. Agricultural lands within Protected areas designated by the NIPAS, including
watershed and recharged areas of aquifers, as determined by the DENR;
2. All Irrigated lands (delineated by DA/NIA), where water is available to
support rice and other crop production, and all irrigated lands where water is
not available for rice or other crop production but are within areas for
irrigation facility rehabilitation by the DA and/or the NIA;
3. All Irrigable lands already covered by irrigation projects with firm funding
commitments (delineated by DA/NIA);
4. All Agricultural lands with Irrigation facilities operated by private
organizations

1.

AREAS HIGHLY RESTRICTED FROM CONVERSION (IN-A-C-E)

3.

4.

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 agrobased enterprises;
Lands issued with notice of land valuation and acquisition, or subject of a
perfected agreement between the LO and the beneficiaries under the
voluntary land transfer/ direct payment scheme (VLT/DPS) under the CARP;
and
Environmentally critical areas (ECAs) as determined by DENR in
accordance with law.

WHY? Since, apart from standard requirements, these areas require a project
feasibility study and environmental compliance certificate.

Failure to implement approved conversion plan within 5 years from approval = Land
still covered by the agrarian reform program

CONVERSION OF PUBLIC AGRICULTURAL LANDS TO FISHPONDS

o
Only when coastal zone is declared suitable for fishpond development by
the provincial government and the BFAR
o
Then, DENR can allow the lease and devt of the area

Private agricultural farms can be converted to fishponds and prawn farms up to a

maximum of 5 ha.
o
BUT DAR may approve conversion of more than 5 ha. under the ff
conditions:
!
When the use of the land is more economically feasible as
fishpond/prawn farm as certified by the BFAR; and
!
A simple and absolute majority of the regular farm workers or
tenants agree to the conversion

PURPOSE OF INVENTORY
o
Inventory helps DAR monitor unauthorized conversions of lands into
fishponds and prawn farms

MANGROVE AREAS ALSO PROTECTED UNDER LAW

o
To harmonize agrarian reform with environmental laws

CHANGE OF CROPS = NOT CONVERSION = NO NEED FOR DAR APPROVAL

Lands transferred to beneficiaries exempted from taxes and fees

Land acquired by beneficiaries exempted from transfer/registration fees

Law prohibits issuance of injunction by lower courts to ensure speedy unhampered

and smooth implementation of the agrarian reform program

Buyer of agricultural land is required to submit an Affidavit of aggregate landholding

to ensure that buyer does not exceed the 5 ha. limit

WHEN IS THE BANK OR FINANCIAL INSTITUTION (FI) DEEMED AS NEW LO?

o
If before the deposit of just compensation:
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

The bank is the purchaser in the foreclosure sale and the

redemption has expired, in cases where the right of redemption
exists; or
The bank or financial institution is the purchaser in the foreclosure
sale and said foreclosure sale is confirmed by the court in cases
where only equity of redemption is provided

WHEN IS BANK OR FINANCIAL INSTITUTION DEEMED AS LIEN-HOLDER?

o
The bank or FI, as mortgagee, is considered one, if on the date the land
transfer scheme was received by the LBP from the DAR:
!
The mortgage debt is not due and demandable; or
!
The mortgage debt is already due and demandable but the bank
or financial institution has not foreclosed the property; or
!
The mortgage has already been foreclosed by the pd to exercise
the right of redemption gas not yet expired or the foreclosure sale
has not been confirmed by court in cases where there is only
equity of redemption

RIGHT ANDS PRIVILEGES OF BANK OR FI AS NEW LO:

o
Receive all notices, advices, correspondence and communications from
DAR, LBP
o
Transact w DAR or LBP regarding all aspects if subj land transfer claim to
the exclusion of all other persons
o
Be named as recipient of cash and bond deposits
o
Receive all proceeds of subject land

Obligations of bank or FI as new LO (page 145)

Obligations of bank or FI as lien-holder (page 145)

The term of contractual arrangements will be respected

o
Any contract of lease, grower, service etc will be respected until expiry

Debts secured by mortgage on land the government will assume the obligation in an
amount not exceeding what the LO would receive as just compensation

8)

Undue delay by any gov agency/official/employee to submit report, data involving

implementation of the provisions of the CARL as required by the parties or the
government , including the House of Reps and the Senate of the Philippines
9) Undue delay in the compliance with the obligation to certify or attest and or
falsification of the certification or attestation as required under Sec 7 of RA 6657
10) Any other act of culpable neglect or willful violations of this act

PENALTIES (SEE SEC 74)

o
GR: Imprisonment of 1-3 yrs, Fine of 1k 15k
o
EGR:
!
Sec 73, par. a,b,f,g,h = 3y1D 6y, 50k -150k
!
Sec 73, par. c,d,e,i = 6y1D 12 yrs, 200k -1M
o
If offender is a corporation = officers liable

Sale resulting from foreclosure of mortgage not a criminal violation of the CARL

CRIMINAL VIOLATIONS OF THE CARL (SHORTENED VERSION; PAGE 148)

1) Ownership in excess of total retention limit or award ceilings; if done for the
purpose of circumventing the provisions of the CARL
2) Forcible entry or illegal detainer by non beneficiaries; if done to avail rights/
benefits of the program
3) Conversion of agri land to non agri use; if done with intent to avoid application of
CARL to his land holdings
4) Malicious and willful prevention or obstruction of the implementation of the CARP
5) Sale, any transfer or conveyance of lands outside of urban centers and city limits
either in whole or in part after the effectivity of the CARL, EXCEPT upon final
completion of the appropriate conversion under sec 65 RA 6657
6) Sale, transfer, conveyance by a beneficiary of the right to use or any usufructuary
right over the land acquired by virtue of being a beneficiary, if done to circumvent
the CARL
7) Unjustified, willful and malicious acts of the officers of the gov. through the ff:
a. Denial of notice/ reply to LO
b. Deprivation of retention rights
c. Undue or inordinate delay in the preparation of claim folders
d. Undue delay refusal or failure in the payment of just compensation
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

TENANT EMANCIPATION LAW

APPLICABILITY OF LAW: private agricultural lands devoted to rice and corn under share
tenancy or lease tenancy
SIZES OF LAND TO BE TRANSFERRED TO TENANT-FARMER (TF)
o
Not irrigated: 5 ha.
o
Irrigated: 3 ha.
STAGES OF LAND TRANSFER
1. issuance of Certificate of Land Transfer (CLT)
2. issuance of Emancipation Patent (EP)

RETENTION RIGHT UNDER PD 27 VIS--VIS RETENTION RIGHT UNDER CARL

Alternative
o
If LO already exercised his right of retention under PD 27, he can no longer
exercise retention right under CARL. However, he can keep the 7-ha.
retention limit granted under PD 27.
JURSIDICTION OVER RETENTION OR EXEMPTION

DAR administrative implementation of agrarian law

CERTIFICATE OF LAND TRANSFER

qualifies tenant-beneficiary (TB) to possess land and comply with certain conditions
preparatory to ownership
EMANCIPATION PATENT

vests upon farmer-beneficiary (FB) absolute ownership over landholding

constitutes conclusive authority for issuance of an O/TCT in his name

INDEFEASIBILITY: after 1 year from its registration @ Office of the Registry of Deeds

CANCELLATION OF EPS
1. Abandonment
2. Neglect or misuse
3. Failure to pay 3 annual amortization
4. Misuse or diversion of financial aid and support services
5. Sale, transfer or conveyance of right to use land
6. Illegal conversion

JURISDICTION: DAR
TB CANNOT SELL OR TRANSFER OWNERSHIP OF LAND
E:
1. to the Government
2. by hereditary succession
TF WILL PAY LBP

total costs of land + interest at 6% per annum for 20 years in 20 equal annual
amortizations

EP issued after full payment of the amortizations

3 months after acquisition due to foreclosure

sale to any interested landless farmer duly certified to a bonafide landless farmer by
DAR of the
o
barangay or 2 closest barangays where land is situated
PAYMENT OF JUST COMPENSATION TO LO
1. direct payment in cash or in kind
2. payment by LBP with 10% payable in cash immediately and balance payable in form
of LBP bonds over a 10-year period, with 1/10 of the face value maturing every year
th
until the 10 year
3. other modes of payment prescribed or approved by Presidential Agrarian Reform
Council
RETENTION RIGHT OF LO

7 ha. max, if cultivating or will cultivate

Personal cultivation by LO not required, can be done indirectly through labor

administration
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

THE CODE OF AGRARIAN REFORMS

Administration bill submitted by President Macapagal

Signed into law on 08 Aug 1963
OBJECTIVE: create a system of owner-cultivatorship and economic family-size farm as
basis of Philippine agriculture
Supplements (did not repeal) CARL

SALIENT FEATURES

Abolished share-tenancy system and replaced it with agricultural leasehold

Bill of rights for agri workers

Established DAR as machinery for acquisition and distribution of agricultural land

Established Land Bank as financial arm of agrarian reform program

SHARE TENANCY

where 2 persons agree on a joint undertaking for agricultural production where

o
one party furnishes the land and
o
the other his labor,
!
with either or both,
!
contributing any one or several of the items of production,
o
the tenant cultivating the land personally with the aid of labor available from
members of his immediate farm household, and
o
the produce thereof to be divided b/w LH and tenant
AGRICULTURAL LEASEHOLD

farmer cultivates land belonging to, or possessed by, another with the LHs consent for
a price certain in money or in produce or both
SITUATIONS WHERE LEASEHOLD RELATIONSHIP CAN EXIST
1. area retained by LO is tenanted
2. FB leases land awarded to him to another person
3. FB leases land awarded to him back to the former owner of the land
4. Land awarded to farmers coop or association is leased to agricultural corporations
AGRARIAN REFORM BENEFICIARIES CAN BECOME LESSORS OF AGRICULTURAL LAND.

Leasehold principles under CAR will apply only to situations where lessor is LO:
o
Farmers whose tenancy relations were automatically converted to leasehold
by virtue of CAR
o
Tenanted lands retained by LO, automatically converted to leasehold by
virtue of CARL
FORM OF LEASE CONTRACT

No particular form (oral or written)

Lessor need not be owner of land (may be usufructuary or legal possessor)

If agreement in writing, agricultural leasehold shall be:

o
Drawn in quadruplicate in language known to agricultural lessee (AL)
o
Signed/thumb-marked by AL personally and by agricultural lessor (AR)
before 2 witnesses, to be chosen by each party
o
Acknowledged before municipal court/municipality where land is situated
o
Registered with Municipal Treasurer (custodian of agri lease contracts, to be
kept and recorded in the Registry of Agricultural Leasehold Contracts)
TERMS AND CONDITIONS OF THE CONTRACT
1. AL to pay excessive rental

2.
3.
4.
5.
6.
7.

AL to pay amount in excess of fair rental value for use of lessors work animals or farm
implements
AL to rent work animals or to hire farm implements from the AR or a third person
AL to make use of any store or services operated by AR or a third person
AL to render any service other than his duties and obligations as lessee, with or
without compensation
AL to answer for any fine, deductions and/or assessments
AL to accept a loan or to make payment therefor in kind

MODES OF PAYMENT OF RENTAL

In money: paid within a reasonable time from threshing or processing

In produce: paid immediately after threshing or processing

TERM OF LEASE

Indefinite until lease is terminated for cause

o
AL-farmers are entitled to security of tenure
THOSE THAT DO NOT TERMINATE LEASEHOLD RELATION
1. Expiration of lease
o
will not authorize increase on rentals
!
UNLESS LO introduces capital improvements to increase
productivity
!
Proportionate to consequent increase in production
2. Transfer of ownership of land
o
buyer/transferee becomes lessor
3. Death or physical incapacity of the lessee
o
lessor must choose successor from the ff if they are willing to personally
cultivate the landholding:
!
surviving spouse
!
eldest direct descendant by consanguinity
!
next eldest descendant or descendants in the order of their age
o
EXTINGUISHED
!
if none of the above exists or
!
if the above persons are not willing to cultivate the land
WHEN THE AGRICULTURAL LEASEHOLD IS EXTINGUISHED
1. abandonment without the knowledge of AR
a. intent to abandon
b. actual act of abandonment
2. voluntary surrender by AL
a. voluntary surrender by AL
b. AL must serve 3 months advance notice
3. absence of persons to succeed to lessee, in the event of death or permanent
incapacity or the lessee
TERMINATION OF LEASEHOLD BY AL
1. cruel, inhuman or offensive, treatment of AL or any member of his immediate farm
household by AR
2. non-compliance on the part of AR with any of his obligations
3. compulsion of AL or any member of his immediate farm household by AR to render
any service not in any way connected with farm work, or even without compulsion if no
compensation is paid
4. commission of crime by AR or his representative against AL or any member of his
immediate farm household
5. voluntary surrender due to circumstances more advantageous to him and his family
9
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

DISPOSSESSION OF AL
1. land declared by appropriate government agency suited for RCI or some other urban
purposes
2. failure of AL to substantially comply with any of the terms and conditions of the lease
K or CAR
3. AL failed to adopt proven farm practices
4. land or other substantial permanent improvement is substantially damaged or
destroyed or has unreasonably deteriorated through the fault or negligence of the AL
5. AL does not pay lease rental when it falls due
6. Lessee employed sub-lessee
Procedure:
1. LO-AR should file corresponding petition with DARAB
2. Prove existence of grounds for dispossession
RIGHT OF LESSEE TO BE INDEMNIFIED FOR HIS LABOR (AL SURRENDERS, ABANDONS, OR IS VALIDLY
EJECTED)
1. cost and expenses incurred in the cultivation, planting or harvesting and other
expenses incidental to improvement of his crop
2. for of the necessary and useful improvements made by him on the landholding w/c
are tangible and have not yet lost their utility at the time of surrender and/or
abandonment of the landholding

1.
2.

work additional landholdings belonging to different AR

employ sub-lessee on his landholding

ENFORCEABILITY OF LOANS OBTAINED BY AL

1. written in language known to AL
2. signed/thumb-marked by AL or by his agent
PROPERTIES OF AL EXEMPT FROM LIENS OR EXECUTIONS
1. 25% of entire produce of land under cultivation
2. work animals and farm implements
PRESCRIPTION OF ACTION

3 years reckoned from time cause of action accrued

DAR: implementing arm of agrarian reform program
LBP: financial arm

RIGHT OF PRE-EMPTION

AL preferential right to buy land actually cultivated by him

AR decides to sell landholding, must give notice to:

o
DAR, and
o
all lessees affected.

If AL agrees:
o
Give written notice to AR of intention to exercise right, AND
o
Tender payment, or
o
Present guarantee certificate from LBP to AR

If AR refuses to accept tender or presentment:

o
Consign with court
RIGHT OF REDEMPTION

if land was sold to a third person without knowledge of AL

at a reasonable price and consideration to the extent of area actually cultivated by him

by filing a petition or request for redemption with DAR w/in 180 days from knowledge
of sale

redemption price: reasonable price of the land at the time of the sale
ACTS AR IS FORBIDDEN TO DO
1. dispossess AL of landholding without just cause
2. require AL to assume payment of taxes levied by government on landholding
3. require AL to assume rent, canon or other consideration which AR is under obligation
rd
to pay to 3 persons for the use of land
4. deal with millers or processors without written authorization of lessee in cases where
crop has to be sold in processed form before payment of rental
5. discourage formation or maintenance or growth of unions or orgs of ALs in his
landholding, or to initiate, dominate, assist or interfere in the formation or
administration of any such union or org
ACTS AL IS FORBIDDEN TO DO
AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

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AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

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