GENERAL PRINCIPLES
Appeal to the CA or SC in the manner as
TORRENS SYSTEM: Torrens title is a system of
land title in which a register of land holdings
maintained by the state guarantees an
indefeasible title to those included in the
register. Land ownership is transferred through
registration of title instead of using deeds.
Short history: A boom in land speculation and a
haphazard grant system resulted in the loss of over
75% of the 40,000 land grants issued in the colony
(now state) of South Australia in the early 1800s. To
resolve the deficiencies of the common law and
deeds registration system, Robert Torrens, a
member of the colony's House of Assembly, proposed
a new title system in 1858, and it was quickly
adopted.
ORIGINAL REGISTRATION OF LAND UNDER
THE TORRENS SYSTEM
Private lands may be brought under the
operation of the Torrens System Land
Registration thru:
(1) Ordinary or voluntary land registration
proceedings
(2) Compulsory proceedings and
(3) Cadastral proceedings
Public lands granted by way of homestead,
sales or free patent under the Public Land Act
are likewise brought under the Torrens System
upon registration of the patent and issuance of
the corresponding certificate of title by the
Register of Deeds. Registration of such lands
under the Torrens System is automatic and
compulsory.
The use of Spanish titles as evidence in land
registration proceedings is proscribed by P. D.
No. 892 as February 16, 1976. Spanish titles are
now hard to find and if there is any it would
probably be of doubtful genuineness or validity.
Most, if not all, ordinary applications for land
registration is based on possession and
occupation, tax declaration and tax realty
receipts, and nothing more. Tax declaration and
realty tax receipts are not evidence of a grant of
land from the State.
The Supreme Court has repeatedly held that
they are not conclusive evidence of ownership.
Nevertheless the Supreme Court has also
consistently held that they are good indicia of
possession in the concept of an owner.
REMEDIES INVOLVING THE REGISTRATION
OF LAND TITLES (Questioning the registration
of title)
1. New trial or reconsideration under Rule 37
2. Relief of judgment under Rule 38
3.
ordinary actions pursuant to Section 33 of PD
1529
4. Review of Decree, Section 32
5. Claim under Assurance Fund, Section 95
6. Reversion under Section 101 of CA 141
7. Cancellation of title
8. Annulment of judgment under Rule 37
9. Quieting of Title - The settled rule is that
an action for quieting of title is imprescriptible,
as in the instant case, where the person seeking
relief is in the possession of the disputed
property. A person in actual possession of a
piece of land under claim of ownership may wait
until his possession is disturbed or his title is
attacked before taking any step to vindicate his
right, and that the undisturbed possession gives
him the continuing right to seek the aid of the
Court of Equity to ascertain and determine the
nature of the adverse claim of a third party and
its effect on his title.
10. Action for Reconveyance - Legal and
equitable remedy granted to the rightful owner
of the land which has been wrongfully or
erroneously registered in the name of another
for the purpose of compelling the latter to
transfer or reconvey the land to him
> After one year from the issuance of the
decree, may bring action for
reconveyance of the property
> Only to show that the person who
secured the registration of the
questioned property is not the real owner
thereof
> Seeks to transfer or reconvey the land
from the registered owner to the rightful
owner
> Property is deemed to be held in trust
for the real owner by the person in
whose name it is registered
11. Criminal prosecution under the Revised
Penal Code
Note: Actions in this font colour pertains to the
remedies discussed by Atty Morta (#s 6,7, 9 and 10)
DOCTRINE OF PRIMARY JURISDICTION
The doctrine of primary jurisdiction holds that if
a case is such that its determination requires
the expertise, specialized training and
knowledge of the proper administrative bodies,
relief must first be obtained in an administrative
proceeding before a remedy is supplied by the
courts even if the matter may well be within
their proper jurisdiction. It applies where a
claim is originally cognizable in the courts, and
comes into play whenever enforcement of the
claim requires the resolution of issues which,
under a regulatory scheme, have been placed
within the special competence of an
administrative agency. In such a case, the court
 in which the claim is sought to be enforced may
suspend the judicial process pending referral of
such issues to the administrative body for its
view or, if the parties would not be unfairly
disadvantaged, dismiss the case without
prejudice.
The objective of the doctrine of primary
jurisdiction is to guide the court in determining
whether it should refrain from exercising its
jurisdiction until after an administrative agency
has determined some question or some aspect
of some question arising in the proceeding
before the court.
XPTs: (a) where there is estoppel on the part of
the party invoking the doctrine;
(b) where the challenged administrative act is
patently illegal, amounting to lack of
jurisdiction;
(c) where there is unreasonable delay or official
inaction that will irretrievably prejudice the
complainant;
(d) where the amount involved is relatively
small so as to make the rule impractical and
oppressive;
(e) where the question involved is purely legal
and will ultimately have to be decided by the
courts of justice;
(f) where judicial intervention is urgent;
(g) when its application may cause great and
irreparable damage;
(h) where the controverted acts violate due
process;
(i) when the issue of non-exhaustion of
administrative remedies has been rendered
moot;
(j) when there is no other plain, speedy and
adequate
remedy;
(k) when strong public interest is involved; and,
(l) in quo warranto proceedings.
EXHAUTION OF ADMINISTRATIVE REMEDIES
Before a party is allowed to seek the
intervention of the court, it is a pre-condition
that he should have availed of all the means of
administrative processes afforded him. Hence, if
a remedy within the administrative machinery
can still be resorted to by giving the
administrative officer concerned every
opportunity to decide on a matter that comes
within his jurisdiction, then such remedy should
be exhausted first before the courts judicial
power can be sought.
I. PUBLIC LAND ACT
(COMMONWEALTH ACT NO. 141)
HISTORICAL BACKGROUND
ACT NO. 926 The first Public Land Act,
Prescribed rules and regulation of the
homesteading, selling and leasing of portions of
the public domain, and prescribed the terms
and conditions to enable persons to perfect
their titles to public lands in the islands
Also provided for the issuance of patents to
certain native settlers upon public lands for the
establishment of town sites and sale of lots
therein, for the completion of imperfect titles
and for the cancellation or confirmation of
Spanish concessions and grants in the islands
ACT NO. 2874 - The second Public Land Act
was more comprehensive in scope but limited
the exploitation of agricultural lands to Filipinos
and Americans and citizens of other countries
which gave Filipinos same privileges.
PUBLIC LAND ACT (COMMONWEALTH ACT
NO. 141)
- Enacted on November 7, 1936
- Grants of public lands are brought under the
operation of the Torrens system of registration.
- Its provisions govern the classification and
disposition of lands of the public domain other
that timber and mineral lands.
Note: Public land patents when duly registered
are veritable Torrens titles, they become private
property which can no longer be subject of
subsequent disposition by the Director of Lands.
POLICY CONSIDERATIONS
STATE
- Shall ensure, for the benefit of the Filipino
people, the full exploration and development as
well as the judicious disposition, utilization,
management, renewal and conservation of the
countrys forest, mineral, land, waters and other
natural resources, consistent with the objective
of making the exploration, development and
utilization of such natural resources equitably
accessible to the different segments of the
present as well as future generations.
- Shall recognize and apply a true value system
that takes into account social and
environmental cost implications relative to the
utilization, development and conservation of our
natural resources
DEPARTMENT OF ENVIRONMENT AND
NATURAL REOURCES (DENR)
- Shall be primarily responsible for the
implementation of the foregoing policy.
- Shall be incharge of carrying out the States
constitutional mandate to control and supervise
 the exploration, development, utilization, and
conversion of the countrys natural resources.
PUBLIC LANDS: ALIENABLE AND
DISPOSABLE LANDS IN GENERAL
Public Lands refers to such lands of the public
domain as are subject to alienation and disposal
of the State in accordance with the Public Land
Act.
REGALIAN DOCTRINE (Section 2, Article
XII)
- All lands and other natural resources are owned
by the State.
- All lands not appearing to be clearly of private
dominion presumptively belong to the State.
- Public lands not shown to have been reclassified
or released as alienable agricultural land or
alienated to a private person by the State
remain part of the inalienable public domain.
- It reserves to the State all natural wealth that
may be found in the bowels of the earth even if
the land where the discovery is made private.
ALIENATION OF NATURAL RESOURCES
General Rule: All natural resources
CANNOT be alienated
XPT: Agricultural lands
EXPLORATION, DEVELOPMENT AND
UTILIZATION OF NATURAL RESOURCES
- Shall be under the full control and supervision of
the State
- The state may DIRECTLY UNDERTAKE such
activities or the state may enter into CO-
PRODUCTION, JOINT VENTURE OR PRODUCTION-
SHARING arrangements.
DISTINCTION BETWEEN IMPERIUM AND
DOMINIUM.
Imperium - Government authority possessed
by the State which is appropriately embraced in
sovereignty.
Dominium - The capacity of the State to own
and acquire property.
- It refers to lands held by the government in a
proprietary character: can provide for the
exploitation and use of lands and other natural
resources.
Note: No public land can be acquired by private
person without any grant, express or implied,
from the government.
THE IPRA AND NATIVE TITLE OVER
ANCESTRAL LANDS AND ANCESTRAL
DOMAINS
Indigenous people may obtain the recognition of
ownership over ancestral lands and ancestral
domains by virtue of native title; this is an
exception to the theory of jura regalia.
ANCESTRAL LANDS It refers to lands
occupied by individuals, families and clans
who are members of indigenous cultural
communities including residential lots, rice
terraces or paddies, private forest, swidden
farms and tree lots.
- These lands required to have been occupied,
possessed and utilized by them or through their
ancestors since time immemorial,
continuously to present.
ANCESTRAL DOMAIN areas generally
beloning to indigenous cultural
communities, including ancestral lands, forest,
pasture, residential and agricultural lands,
hunting grounds, worship areas, and lands no
longer occupied exclusively by indigenous
cultural communities but to which they had
traditional access, particularly the home ranges
of indigenous cultural communities who are still
nomadic or shifting cultivators.
- Also include inland waters, coastal areas and
natural resources therein.
Note: State policy recognition and
protection of the rights of idigenous peoples to
preserve abd develop their cultures, tradtions,
and institutions are the vital concerns of the
State. (RA 8371, IPRA)
RESERVATION OF LANDS OF THE PUBLIC
DOMAIN ARE VALID ASSERTION OF
REGALIAN RIGHT
Presidential proclamations reserving certain
lands of the public domain for specific purposes
have the character of official assertion of
ownership, and the presumption is that they
have been issued by right of sovereignty and in
the exercise of the States dominical authority.
These proclamations are matters not only
judicial notice but are accepted as in the nature
of a valid asservation of Regalian right right
over the property.
 ORGANIZATIONAL STRUCTURE - OFFICERS
CHARGED WITH THE ADMINISTRATION OF
PUBLIC LANDS
Secretary of Natural Resources chief
executive officer charged to carry out the
provisions of the Public Land Act
Director of Lands- under the immediate
supervision of the DENR Secretary
Duties:
a. Direct executive control over surveys,
classifications, leases, sales and other forms of
concession or disposition and management of
public lands;
b. Preparation and issuance of forms, instructions,
rules and regulations as may be necessary and
proper to carry into effect the provisions of the
Public Land Act, and for the conduct of
proceedings arising thereunder, subject to the
approval of the Secretary( Commonwealth Act
No. 141, sections 3,4, and 5)
c. Quasi-judicial officer- he makes findings of fact
and even passes upon questions of mixed fact
and law, and considers and decides the
qualifications of applicantsfor the purchase of
public lands.
Note: The decision on the construction of the
Public Land Act are entitled a great respect by
the courts. The decisions of the Director of
Lands as to question of facts are conclusive
when approved by the Secretary (Doctrine of
Primary Jurisdiction)
d. He represent the state in a reversion
proceedings and may file an action for the
cancellation of patent and title acquired through
fraud
e. Regulate the occupation or provisional use of
public lands
Note: For administration purposes, land
districts have been established throughout the
Philippines, each district is headed by a local
land officer embracing one province
CLASSIFICATION OF LANDS
Lands of public domain - either alienable or
inalienable
Lands of private domain - refers to land
belonging to and owned by the State as a
private individual, without being devoted of
national wealth
- similar to patriomonial properties of the State
CLASSIFICATION OF LANDS OF THE PUBLIC
DOMAIN UNDER THE CONSTITUTION
SECTION 3. LANDS OF THE PUBLIC
DOMAIN ARE CLASSIFIED INTO:
- Agricultural
- Forest/timber
- Mineral lands &
- National Parks
Note: Classification of public lands is an
exclusive prerogative of the Executive
Department through the Office of the President,
upon recommendation by the DENR and not to
the court.
- Classification is descriptive of the legal nature
of the land and NOT what it looks like. Thus, the
fact that forest land is denuded does not mean
it is no longer forest land.
CLASSIFICATION OF ALIENABLE AND
DISPOSABLE LANDS
For the administration and disposition of
alienable and disposable lands, they are
classified under the Public Land Law according
to the use and purposes to which such lands
may be destined, as follows:
- Agricultural ( farm land)
- Residential, commercial, industrial, or for similar
productive purposes;
- Educational, charitable, or other similar
purposes; and
- Reservations for town sites and for public and
quasi-public uses
The President upon recommendation of the
Secretary of DENR is authorized to make the
above classification as well as to transfer lands
from one class to another from time to time as
circumstances may warrant ( CA No. 141., Sec.
9)
Under the Revised Administrative Code,
alienable lands of the public domain may be
ordered reserved by the President for specific
purpose or service
Old Constitution: they all form under the
category of agricultural lands, they not being
forest nor mineral lands.
Under Public Land Act term agricultural is
used in a limited sense, and is meant distinctly
as a farmland.
CLASSIFICATION OR RECLASSIFICATION OF
PUBLIC LANDS AN EXECUTIVE
PREROGATIVE not the courts. (Section 6 of
CA No. 141)
 Before the government could alienate or
dispose lands of the public domain, the
President must first officially classify these lands
as alienable and disposable, and declare them
open to disposition or concession.
GOVERNMENT LAND AND PUBLIC LANDS
DISTINGUISHED (PL = PD) (GL PL)
Public Land - is equivalent to Public Domain,
includes lands open to private appropriation and
settlement by homestead and other like general
laws.
Government Land more extensive and
embraces not only the public land but also other
lands of the government already reserved or
devoted to public use or subject to private right.
PREREQUISITE FOR DISPOSITION
Before any public land may be alienated or
disposed of, it is indispensable that there be a
formal declaration by the President upon
recommendation of the Secretary of DENR
to the effect that such lands are open to
disposition or concession, and whenever
practicable the lands should have been
previously surveyed.
Alienation or disposition or concession as
used in Public Land Act is meant any of the
methods authorized by the said law for the
acquisition, lease, use or benefit of the lands of
the public domain other than timber or mineral
land.
Modes of Disposition
1. For homestead settlement
2. Sale
3. Lease
4. Confirmation of imperfect or incomplete title
a. Judicial legalization
b. Administrative legalization ( free patent)
HOMESTEAD SETTLEMENT
Entitled to Patent:
- Any citizen of the Philippines over 18 or head of
the family may enter a homestead of not
exceeding 12 hectares of agricultural land of
public domain.
- The applicant must, cultivate or improved at
least 1/5 of the land continuously since the
approval of the application.
- Must resided for at least 1 year in the
municipality or municipality adjacent in which
the land is located.
- Payment of required fee
EFFECT OF COMPLIANCE WITH LEGAL
REQUIREMENTS
- When a homesteader has complied with all the
terms and conditions which entitle him to a
patent for a particular tract of public land, he
acquires a vested interest therein, and is to be
regarded as the equitable owner thereof
- The execution and delivery of the patent, after
the right to a particular piece of land has
become complete, are the mere ministerial acts
of the officer charged with that duty
- Even without the patent, a perfected homestead
is a property right in the fullest sense,
unaffected by the fact that the paramount title
to the land is still in the government
TRANSFER OF RIGHTS
- The applicant must prove to the Director of
Lands that he has already complied with all the
requirements of the law and can no longer
continue with this homestead, and there is a
bona fide purchaser for the rights and
improvements of the applicant on the land.
- Upon the approval of the Director of Lands, may
transfer his rights to the land and improvements
to any person legally qualified to apply for a
homestead.
- Immediately after such transfer, the purchaser
shall file a homestead application to the land.
Note: Any person who has transferred his right
may not again apply for a new homestead.
Every transfer without the approval of the
Director of Lands shall be null and void and shall
result in the cancellation of the entry and the
refusal of patent.
SALE OF PUBLIC AGRICULTURAL LANDS
- Any citizen of lawful age or the head of the
family may purchase any tract of public
agricultural land not to exceed 12 hectares
which shall be sold through sealed bidding
- The land shall be awarded to the highest bidder,
but the applicant may equal the highest bid
- The purchase price may be paid in full upon the
making of the award or in not more than 10
equal annual installments from the date of the
award
- It is required that the purchaser shall have not
less than 1/5 of the land cultivated within 5
years from the date of the award, and before
any patent is issued, he must show actual
occupancy, cultivation and improvement of at
least 1/5 of the land until the date of final
payment

LEASE
Any corporations or associations at least 60% of
capital stock belong wholly to Filipino citizens,
may lease any tract of agricultural public land
available for lease.
FOR PRIVATE CORPORATIONS OR
ASSOCIATIONS
- They can only hold alienable lands of the public
domain BY LEASE
- Cannot exceed 25 years, renewable for not
more than 25 years
- Lease cannot exceed 1,000 hectares
FOR FILIPINO CITIZENS
- Can lease up to 500 hectares
- Can ACQUIRE not more than 12 hectares by
purchase, homestead or grant.
- Taking into account the requirements of
conservation, ecology and development, and
subject to the requirements of agrarian reform,
Congress shall determine by law the size of the
lands of the public domain which may be
acquired, developed, held or lease and the
conditions therefore.
CONFIRMATION OF IMPERFECT OR
INCOMPLETE TITLE - JUDICIAL
LEGALIZATION
REQUISITES FOR AVAILMENT:
1. The applicant must be a Filipino citizen
2. He must have, by himself or through his
predecessors in interest, possessed and
occupied an alienable and disposable
agricultural portion of public domain.
3. Such possession and occupation must
have been open, continuous, exclusive,
notorious and in the concept of owner,
since June 12, 1945
4. The application must be filed with the
proper court
Period of possession: June 12, 1945
Additional requirement: (Class Discussion)
Witness: At least 10 years old in the year of
1945.
Tax declaration
Note: Limiting the are applied for to 12
hectares, lands must be occupied by himself or
through his predecessors in interest, possessed
and occupied an alienable and disposable
agricultural portion of public domain. Land must
be alienable and disposable at the time of the
application for confirmation is filed. Land not
registrable as when it forms part of the public
forest. ONLY AGRICULTURE LANDS MAY BE
SUBJECT OF ALIENATION.
CONFIRMATION OF IMPERFECT OR
INCOMPLETE TITLE - ADMINISTRATIVE
LEGALIZATION ( FREE PATENT)
Qualifications:
1. Any natural born citizen of the
Philippines
2. Owns not more than 12 hectares; and
3. Has continuously occupied and
cultivated, either by himself or through
his predecessors-in interest a tract or
tracts of agricultural public lands subject
to disposition for at least 30 years prior
to the effectivity of this amendatory Act,,
4. Have paid the real estate tax thereon
while the same hasnt been occupied by
any person
CLASSIFICATION AND DISPOSITION OF
LANDS FOR RESIDENTIAL, COMMERCIAL OR
INDUSTRIAL PURPOSES - is governed by
Chapter 9 of the Public Land Act
Lands are classified as:
- Lands reclaimed by the government by
dredging, filling or other means;
- Foreshore
Note: The first two shall be disposed of by lease
only
- Marshy lands or lands covered with water
bordering on the shores or banks of navigable
lakes or rivers
- Lands not included in any of the foregoing
classes
Note: The last two may be sold with the
condition that the purchaser shall make
improvements of a permanent character
appropriate for the purpose for which the land is
purchased within 18 months from the date of
the award.
LANDS FOR RESIDENTIAL, COMMERCIAL OR
INDUSTRIAL PURPOSES SHALL BE
DISPOSED OF THROUGH ORAL BIDDING
(SECTION 67, CA 141)
XPT: DIRECT SALE Miscellaneous Sale Patent
Republic Act 730 allows the direct sale of
public lands for residential purposes to qualified
applicants under certain conditions:
1. Filipino citizen of legal age
2. Must not be the owner of a home lot in
the municipality or city in which he
resides
 3. Have established in good faith his
residence on a parcel of public land
which is not needed for public service
4. Have constructed his house and actually
resided therein
5. If the applicant complies with the above,
he is given preference to purchase at a
private sale not more than 1000 sq.m. of
land at a price to be fixed by the Director
of Lands.
SALE OF LANDS WITHIN MILITARY
RESERVATIONS
- Pursuant to Republic Act 274, lands within
military reservations when declared by the
President as no longer needed for military
purposes may be subdivided by the Director of
Lands and thereafter sold to persons qualified to
acquire agricultural public lands under the
Public Land Act, with priority given to bona fide
occupants and then to war veterans
- The area shall be determined by the Director
of Lands according to the nature of the land, the
number of prospective applicants, and the
purposes for which it will be utilized.
LANDS FOR EDUCATIONAL, CHARITABLE,
AND OTHER SIMILAR PURPOSES
The President upon recommendation of the
Secretary of Environment and Natural Resources
may execute contract for sale or lease a portion
of public land when needed by any province,
municipality, or other branch or subdivision of
the government, for the purpose of founding a
cemetery, church, college, school, university, or
other institutions for educational, charitable, or
philanthropical purposes or scientific research,
the area to be such as may actually and
reasonably be necessary to carry out such
purposes
- The Secretary of DENR may order the sale to
be made without public auction, at a price fixed
by him.
RESERVATIONS
TOWNSITE RESERVATION
- Whenever it shall be considered to be in the
public interest to found a new town. The
Secretary of Environment and Natural Resources
shall direct the Director of Lands to have a
survey of the exterior boundaries of the site on
which such town is to be established, and upon
the completion of the survey he shall send the
same to said Secretary, with his
recommendations.
- The Secretary, if he approves the
recommendations of the Director of Lands, shall
submit the matter to the President to the end
that the latter may issue a proclamation
reserving the land surveyed, or such part
thereof as he may deem proper, as a town site.
RESERVATIONS OF LAND FOR PUBLIC AND
SEMI-PUBLIC PURPOSES
- Upon the recommendation of the Secretary of
DENR, the President may designate by
proclamation any tract/s of land of the public
domain as reservations for the use of the RP or
any of its branches, or of the inhabitants
thereof, in accordance with the regulations
prescribed for this purpose, or for quasi-public
uses or purposes when the public interest
requires it
- A certified copy of this proclamation shall be
forwarded to the Register of Deeds of the
province or city where the land lies
- Upon receipt of such copy, the Director of
Lands shall order the immediate survey of the
proposed reservation if the land has not been
yet surveyed, and as soon as the plat has been
completed, he shall proceed in accordance with
the next following section
- The tract/s reserved shall be non-alienable and
shall not be subject to any occupation, entry,
sale, lease, or other disposition until again
declared as alienable and disposable
SPECIAL PATENTS
Patent to grant, cede, and convey full ownership
of alienable and disposable lands formerly
 covered by a reservation of lands of the public
domain and is issued upon the promulgation of
a special law or act of Congress or by the DENR
Secretary as authorized by the President.
REGISTRATION OF PATENTS AND ISSUANCE
OF CERTIFICATES OF TITLES
The patent or grant shall not take effecr as a
conveyance or bind the land but shall operate
only as a contract between the government and
the grantee. It is the act of registration that
conveys or affects the lands, and binds
third person.
CERTIFICATE OF TITLE ISSUED PURSUANT
TO A PATENT INDEFEASIBLE
- Registered owners under Torrens System, gives
security over the ownership of the land, it
becomes private property and it is no longer
subject to the disposition of the Director of
Lands.
- It has in its favor the presumption of regularity
- It becomes incontrovertible upon the expiration
of 1 year from the date of the order for issuance
of the patent, hence, prescription cannot
operate against the registered owner.
TITLE NOT DEFEATED BY ADVERSE, OPEN
AND NOTORIOUS POSSESSION. NEITHER
CAN IT BE DEFEATED BY PRESCRIPTION. A
CERTIFICATE TITLE CANNOT BE
COLLATERALLY ATTACKED.
CADASTRAL REGISTRATION PROCEEDINGS
PANG MALAWAKAN TO!
- Upon the initiative of the government
- To have titles to all lands in the stated area
adjudicated
- Public interest demands that titles to any
unregistered land settled and adjudicated
The principal aim is to settle as much as
possible all disputes over the land and to
remove all clouds over the land titles as far as
practicable, in a community
- Nature of a proceeding in rem
FRIAR LANDS
- Private lands purchased by the government for
sale to actual occupants under the provisions of
Act 1120 or the Friar Lands Act
- These lands are not public lands but private and
patrimonial lands of the government
- The Land Management Bureau shall first issue a
certificate stating therein that the government
has agreed to sell the land to such settler or
occupant
- The latter shall then accept the certificate and
agree to pay the purchase price so fixed, in
installments and at the rate of interest specified
in the certificate
- The conveyance or certificate of sale executed
in favor of a buyer is a conveyance of ownership
of the property, subject only to the resolutory
condition that the sale may be cancelled if the
price agreed upon is not paid in full
REVERSION fraud had been committed in
securing such title.
Reversion of land acquired through fraud
The uncontroverted rule is that, the doctrine of
indefeasibility of Torrens Title does not bar the
filing of an action for cancellation of title and
reversion of land even if more than one year has
elapsed from the issuance of the free patent in
case of fraud in obtaining it.
DIRECTOR OF LANDS HAS CONTINUING
AUTHORITY TO INVESTIGATE FRAUDULENT
ISSUANCE OF PATENTS
- It is not only the right but also the duty of the
Director of Lands to conduct the investigation of
any alleged fraud in securing the free patent
and the corresponding title to a public land and
to file the corresponding court action for the
reversion of the same to the State, if the facts
disclosed in the course of such investigation
should so warrant.
- The indefeasibility of title over land previously
public is not a bar to an investigation by the
Director of Lands as to how such title has been
acquired, if the purpose of such investigation is
to determine whether or not fraud had been
committed in securing such title in order that
that the appropriate action for reversion may be
filed by the government.
GOVERNMENT MAY INITIATE ACTION FOR
CANCELLATION OF TITLE AND REVERSION
- Section 101 of Public Land Act provides for a
remedy whereby lands of the public domain
fraudulently awarded to the applicant may be
recovered or reverted back to its original owner,
the government
- Office of Solicitor General shall represent the
government in all land registration and related
proceedings and institute actions for the
reversion to the government of lands of the
public domain and improvements thereon as
well as lands held in violation of the Constitution
- It is improper for the government to file an
action for reversion of land titled to defendant
 pursuant to a free patent where the alleged
fraud consists in the fact that said land, at the
time of issuance of the free patent was no
longer a part of the public domain, having been
adjudicated as private property of another
person in a previous registration case
- An action for reversion on the ground that
defendant obtained patent through fraud would
also fail where the land had successively been
sold by the heirs of the patentee to third parties
who are holding Torrens titles and enjoying the
presumption of good faith
- Note: Reversion does not apply to transferees,
Private parties cannot challenge the validity of
the patent and title when they are not
registered owners thereof nor had they been
declared the owners as owners in the cadastral
proceedings whether the grant was in
conformity with the law or not is a question
which the government may raise, but until it is
raised by the government and set aside, the
defendant cannot question it. The legality of the
grant is a question between the grantee and the
government.
ACTION FOR NULLITY OF LAND TITLES
DISTINGUISHED FROM REVERSION
The difference between them lies in the
allegations as to the character of the ownership
of realty whose title is sought to be nullified.
WHERE REVERSION IS IMPROPER
In the case of Republic v. Umali, the
government sought for the reversion of parcel of
land on the ground that the original sale thereof
from the government was based on a forgery
and therefore void ab initio. However, the
respondents are transferees, claiming to be
innocent purchasers. Since the respondents are
transferees in good faith and for value and for
value and that the original acquisition thereof,
although fraudulent, did not affect their own
titles.
who are innocent purchasers. It only applies to
applicant who committed fraud in securing such
title.
PRIVATE PARTY CANNOT BRING ACTION
FOR REVERSION
If there has been any fraud or misrepresentation
in obtaining the title, an action for reversion
instituted by the Solicitor General would be the
proper remedy
ACTION FOR REVERSION NOT BARRED BY
PRESCRIPTION, LACHES
Statute of limitations doesnt run against the
State
ACTION FOR CANCELLATION OF TITLE

Action for Reversion Action for Proper when a private party claims ownership of
declaration of nullity the land as private property by virtue of a long
period of possession and hence, no longer
of free patent and
deemed a part of the public domain which could
certificate title be disposed of under the provisions of the Public
Pertinent allegations in The land is beyond the Land Act, or when the land is already covered
the complaint would jurisdiction of the by a previously issued certificate of title.
admit State ownership Director of Lands to
of the disputed land. bestow and whatever ACTION FOR RECONVEYANCE BRING THE
The portion affected by patent or certificate LAND BACK TO THE OWNER.
the amendment would title therefore is - Legal and equitable remedy granted to the
revert back to the consequently void ab rightful owner of the land which has been
wrongfully or erroneously registered in the
public domain. initio. The real party in
name of another for the purpose of compelling
interest is not the State the latter to transfer or reconvey the land to him
but the plaintiff who - After one year from the issuance of the decree,
alleges pre existing may bring action for reconveyance of the
right of ownership over property
the parcel of land in Only to show that the person who secured the
question even the registration of the questioned property is not
grant of title to the the real owner thereof
defendant. - Seeks to transfer or reconvey the land from the
registered owner to the rightful owner

Note: Beyond the jurisdiction of Director of

Lands because the land is private owned
already.
 DECREE BECOMES INCONTROVERTIBLE
AFTER 1 YEAR FROM THE ISSUANCE OF
DECREE
- Action for reconveyance still available as
remedy
- Action in personam that it is always as long as
the property has not passed to an innocent
purchaser for value
RELEVANT ALLEGATIONS
- That the plaintiff is the owner of the land
- That the defendant has illegally disposed him of
the same
NOTE: The nullification of defendants land
would not result in the reversion of the land to
State but remains private property, the plaintiff-
claimant may seeks direct reconveyance.
COURTS HAVE JURISDICTION OVER
POSSESSORY ACTIONS INVOLVING PUBLIC
LANDS
- Even pending the investigation of, and
resolution on, an application by a bona fide
occupant, by the priority of his application and
record of his duty, he acquires a right to the
possession of the public land he applied for
against any other public land applicant, which
right may be protected by the possessory action
of forcible entry or by any other suitable remedy
that our rules provide
- The grant of power and duty to alienate and
dispose of the land doesnt divest the courts of
their duty or power to take cognizance of
actions instituted by settlers or occupants or
applicants against others to protect their
respective possessions and occupations, more
especially the actions of trespass, forcible entry
and unlawful detainer
PROHIBITED ALIENATIONS
1. Under Section 118: Land acquired under
free patent or homestead provisions shall not be
subject to encumbrance or alienation from the
date of approval of application and for a term
of five (5) years and after the date of issuance
of the patent or grant.
-In short, SALE within the prohibition
date (from date of approval up to the fifth year
from issuance of patent) is VOID.
XPT: HEREDITARY SUCCESSIONS
XPT TO XPT: Agreements which are
considered a circumvention of the law. Example:
The prohibition applies to homesteaders son or
daughter as a clever homesteader who wants to
circumvent the ban may simply sell the lot to
his descendant and the latter after registering
the same in his name would sell it to a third
person.
The OLD RULE: The alienation, transfer, or
conveyance of any homestead AFTER five (5)
years and before twenty-five (25) years shall
NOT BE VALID EXCEPT upon approval of the
DENR Secretary.
-> OVERTURNED by a RECENT
JURISPRUDENCE: May secure anytime in
the future. The DENR Secretarys approval is
merely directory.
2. Section 122: The landholdings should not
exceed a total of 144 hectares.
EXCEPT: Hereditary succession, much
less involving private land
REPURCHASE BY APPLICANT OR HIS HEIRS:
There is RIGHT OF REDEMPTION OR
REPURCHASE impliedly instituted to the
applicant, his widow or legal heirs, within a
period of five (5) years from the date of the sale
of the land.
It has been ruled that it is well-known that the
homestead laws were designed to distribute
disposable agricultural lots of the state to land
destitute (poor) citizens for their home and
cultivation.
JUDICIAL PROCEDURE, LEGAL
RESTIRCTIONS AND ENCUMBRANCES
**There must be an application made under
oath on the land applied in order to obtain a
permit. In all cases, the Director of Lands shall
conduct necessary investigations for the
purposes of ascertaining the material facts set
out in the applications.
PETITION FOR REVIEW
Petition for review, on the ground of fraud,
involving public land grants or patents, the one-
year period commences from the issuance of
the patent by the government.
Fraud is two kinds: actual or constructive.
1. Actual or positive fraud proceeds from an
intentional deception practiced by means of the
misrepresentation or concealment of a material
fact.
2. Constructive fraud is construed as a fraud
because of its detrimental effect on public
interests and public or private confidence, even
though the act is not done with an actual design
to commit positive fraud or injury upon other
persons.
XPT: Government can still file an action for
reversion even after the lapse of one (1) year in
cases of fraud.
II. REVISED FORESTRY CODE (PD
705)
- The governing law here is PD 705
(Revised Forestry Code)
- It emphasizes not only the utilization of
forest resources but more on the
protection, rehabilitation and
development of forest lands, in order to
ensure the continuity of their productive
condition.
- Institutes proper classification and
delimitation of the lands of the public
domain, and the management,
utilization, protection, rehabilitation, and
development of forest lands.
IMPORTANT DEFINITION OF TERMS:
a) Public forest is the mass of lands of the public
domain which has not been the subject of the present
system of classification for the determination of
which lands are needed for forest purposes and which
are not.
b) Permanent forest or forest reserves refers to those
lands of the public domain which have been the
subject of the present system of classification and
declared as not needed for forest purposes.
x x x x
e) Grazing land refers to that portion of the public
domain which has been set aside, in view of the
suitability of its topography and vegetation, for the
raising of livestock.
f) Mineral lands refer to those lands of the public
domain which have been classified as such by the
Secretary of Natural Resources in accordance with
prescribed and approved criteria, guidelines and
procedure.
g) Forest reservations refer to forest lands which have
been reserved by the President of the Philippines for
any specific purpose or purposes.
x x x x
o) Mangrove is a term implied to the type of forest
occurring on tidal flat along the sea coast, extending
along stream where the water is brackish.
p) Kaingin refers to a portion of the forest land which
is subjected to shifting and/or permanent slash-and-
burn cultivation.
Forest a large tract of land covered with
natural growth of trees; it is a tract of land
covered with trees, usually of considerable
extent. It includes public forest, permanent
forest or forest reserves and forest reservation
for any purpose.
** The classification of forest is DESCRIPTIVE of
its legal nature or status and DOES NOT have
to be descriptive of what the land actually
looks like. Unless and until the land classified
as forest is released in an OFFICIAL
PROCLAMATION to that effect so that it may
form part of the disposable agricultural lands of
public domain, the rules on confirmation of
imperfect title do not apply.
- Forest lands are subject to multiple land use
under PD 705 (as stated below) for the
development and progress requirement of the
country advancement of science and
technology and public welfare.
WHEREAS, proper classification, management
and utilization of the lands of the public domain
to maximize their productivity to meet the
demands of our increasing population is
urgently needed;
WHEREAS, to achieve the above purpose, it is
necessary to reassess the multiple uses of
forest lands and resources before allowing any
utilization thereof to optimize the benefits that
can be derived therefrom;
PRESUMPTION: In the absence of a proof
declaring or any proclamation or order
classifying the land as a FOREST LAND, the land
is presumed as an AGRICULTURAL LAND.
STRICT RULE: FOREST LANDS CANNOT BE
CONVERTED INTO PRIVATE PROPERTY.
Public forests are NOT capable of private
appropriation unless declassified and released
by positive act of the government.
**The Indigenous Peoples Rights Act (IPRA)
converts ancestral lands as public agricultural
lands for registration purposes.
***Deforested lands may be subject to
reforestation.
OFFICE CHARGED WITH THE AUTHORITY
OVER FOREST LANDS (Organizational
Structure)
FOREST MANAGEMENT BUREAU (Bureau of
Forest Development) It has jurisdiction and
authority over all forest lands, grazing lands and
all forest reservations ad previously
administered by other government agencies or
instrumentalities.
- Under the control of the DENR Secretary
- The Director of Forest Management
Bureau recommends rules and
regulations for the implementation of the
Forestry Code.
o It has the authority to determine
whether forest land is more
 valuable for agricultural rather
than forestry uses, as a basis for
its declaration as agricultural land
and release for private ownership.
1. As to JUDICIAL FUNCTIONS
** The decision of the Director is SUBJECT to
REVIEW by the DENR Secretary. After thirty (30)
days it will become final and executory. Except
upon APPEAL Court of Appeals (before Office
of the President)
Exhaustion of Administrative Remedies is a
MUST! The non-exhaustion of administrative
remedies will DISREGARD the pertinent laws
vesting the DENR the power and function to
regulate the development, disposition,
extraction, exploitation, extraction, exploration
and use of countrys forests and to exercise
EXCLUSIVE JURISDICTION.
This comprehensive conferment clearly implies
at the very least that the DENR should be
allowed to rule in the first instance on any
controversy coming under its express power
before the courts.
If, for instance, the DENRs decision became
final and executory, the case that will be filed
again would be barred by the principle of RES
JUDICATA1.
OR by LACHES2 upon the lapse of thirty (30)
days.
2. As to POWER TO CLASSIFY AND SURVEY
The DENR Secretary upon study and survey:
(1) Shall determine which of the unclassified
lands of public domain are needed for forest
purposes and declare them as permanent forest
to form part of the forest reserves
(2) Shall decree those classified and determined
not to be needed for forest purposes as
alienable and disposable which shall be
transferred to Land Management Bureau
(3) If the forest land called MANGROVE SWAMPS
is suitable for fishpond purposes it shall be
1 A matter that has been adjudicated by a competent court and may
not be pursued further by the same parties. Elements: 1) the former
judgment or order must be final;
2) the judgment or order must be on the merits;
3) it must have been rendered by a court having jurisdiction over the
subject matter and the parties;
4) there must be, between the first and the second action, identity of
parties, of subject matter and cause of action.
2 failure or neglect for an unreasonable time to act or assert on such
right
released (reclassified) to and places under the
administrative jurisdiction of the Bureau of
Fisheries and Aquatic Resources.
OTHER RULES AND REGULATIONS:
Topography (Terrain)
NO land of the public domain (18%) in slope or
over shall be classified as alienable and
disposable nor any forest land (50%) in slope or
over, as grazing land.
Lands 18% in slope which have already been
declared alienable and disposable shall be
reverted to the classification of forest lands by
DENR Secretary unless there be existing titles or
approved public land applications.
Hence, it is safe to say that LANDS 18% in slope
are considered FOREST LANDS.
Areas needed for forest purposes
1) Areas less than 250 hectares which are far
from, or are not contiguous with, any certified
alienable and disposable land;
2) Isolated patches of forest of at least five (5)
hectares with rocky terrain, or which protect a
spring for communal use;
3) Areas which have already been reforested;
4) Areas within forest concessions which are
timbered or have good residual stocking to
support an existing, or approved to be
established, wood processing plant;
5) Ridge tops and plateaus regardless of size
found within, or surrounded wholly or partly by,
forest lands where headwaters emanate;
6) Appropriately located road-rights-or-way;
7) Twenty-meter strips of land along the edge of
the normal high waterline of rivers and streams
with channels of at least five (5) meters wide;
8) Strips of mangrove or swamplands at least
twenty (20) meters wide, along shorelines
facing oceans, lakes, and other bodies of water,
and strips of land at least twenty (20) meters
wide facing lakes;
9) Areas needed for other purposes, such as
national parks, national historical sites, game
refuges and wildlife sanctuaries, forest station
sites, and others of public interest; and
10) Areas previously proclaimed by the
President as forest reserves, national parks,
game refuge, bird sanctuaries, national shrines,
national historic sites:
Provided, That in case an area falling under any
of the foregoing categories shall have been
titled in favor of any person, steps shall be
taken, if public interest so requires, to have said
title cancelled or amended, or the titled area
expropriated.
General Rule: Forest lands are not
registrable
A person cannot enter forest land simply by
cultivating it. Even if a private person in good
faith resides in such forest lands, in effect it will
be NULL and VOID. Since it will still be
considered as part of public domain, it may be
cancelled.
XPT: In the case of MALABANAN vs
REPUBLIC it was decided that the land is
registrable IF at the time of the application for
registration is filed, the land is DECLARED
ALIENABLE AND DISPOSABLE by positive act of
the government. The law does not require that
the land subject of registration should have
been alienable and disposable during the entire
period of possession.
Reservations in forest lands and off-
shroe areas
The President may establish within any lands of
the public domain, forest reserve and forest
reservation for the national park system, for
preservation and modify boundaries of existing
ones.
(a) Reservation of land, covered by a timber
concession, for experiment states vests in the
grantee full ownership thereof.
Case: International Hardwood and Veneer Co
(IHVCP ) vs University of the Philippines (UP)
Facts: IHVCP is a company engaged in the
manufacture, processing and exportation of
plywood. It renewed its timber license, which
was granted by the government and shall be
valid for 25 years, in early 1960. Said license
authorizes the company to cut, collect and
remove timber from the portion of timber land
located in certain municipalities of Laguna,
including Paete. In 1964, the Congress
enacted R.A. 3990, an Act establishing an
experiment station for UP. The said
experiment station covers a portion of the
timberland in Paete, occupied by IHVCP so UP,
who claims ownership of said portion of
timberland, demanded the latter to pay the
forest charges to it, instead of the BIR. IHVCP
rejected the demand and it filed a suit against
UP, claiming that R.A. 3990 does not empower
UP to scale, measure and seal the timber cut by
it within the tract of land referred to in said Act,
and collect the corresponding forest charges
prescribed by the BIR.
Issue: Whether or not UP is the owner of the
portion of timberland.
Ruling: YES. The Court ruled that R.A. 3990
ceded and transferred in full ownership to UP
the area, which means that the Republic of the
Philippines completely removed it from the
public domain. In respect to the areas covered
by the timber license of IHVCP, the said Act
removed and segregated it from being a public
forest. The Court further cited Sec. 3 of R.A.
3990, which provides that, "any incidental
receipts or income therefrom shall pertain to the
general fund of the University of the
Philippines. The provision of the Act is clear
that UP, being the owner of the land, has the
right to collect forest charges and to supervise
the operations of IHVCP insofar as the property
of the UP within it is concerned.
A timber license is NOT a contract and
MAY be revoked
IMPORTANT: No person may utilize,
exploit, occupy, possess or conduct any
activity within any forest land WITHOUT
authorization under a LICENSE
AGREEMENT, LEASE, LICENSE OR
PERMIT.
Duration of license agreement to
harvest timber in forest lands:
The maximum period of any privilege to
harvest timber is 25 years, renewable for a
period, not exceeding 25 years.
-Determined by the bureau.
Size of forest concessions.
The size of forest lands which may be the
subject of timber utilization shall be limited to
that which a person may effectively utilize and
develop for a period of 50 years.
Mining Operations
Mining operations in forest lands shall be
governed by mining laws and there must be an
APPROVAL from the Director of Forest Bureau.
Qualifications
SECTION 58: The privilege to utilize, exploit,
occupy, or possess forest lands, or to conduct
any activity therein, or to establish and operate
wood-processing plants, shall be diffused to as
 many qualified and deserving applicants as
possible.
SECTION 59. Citizenship. In the evaluation of
applications of corporations, increased Filipino
equity and participation beyond the 60%
constitutional limitation shall be encouraged. All
other factors being equal, the applicant with
more Filipino equity and participation shall be
preferred.
CRIMINAL OFFENSES
**GOOD FAITH is not a defense (SPECIAL LAW-
mala prohibita)
(1) Cutting, gathering and/or collecting timber
or other forest products from any forest land or
timber from alienable or disposable public and,
or from private land without any authority; and
(2) Possession of timber or other forest products
without the legal documents required under
existing forest laws and regulations
(3) Unlawful occupation ro destruction of forest
lands, including the making of kaingin for
private use, without authority
(4) For pasturing or grazing livestock in forest
lands, grazing lands, or alienable and disposable
public lands without authority
(5) For illegal occupation or national parks and
recreation areas for vandalism
(6) Destruction of wild life resources
(7) Survey of unauthorized persons
(8) Misclassification and survey by government
official or employee
(9) Unlawful possession of implements and
devices used by forest officers.
(10) Failure to pay forest charges
(11) Sale of wood products without having
complied with the grading rules of the
government.
Criminal Procedure
Authority of forest officers: Forest officers
and other government officials or employees
duly authorized by the Secretary or Director,
shall have free entry into areas covered with
authority (license lease or permit).
Search and seizure without a warrant:
When probable cause is established, the seizure
of lumber is valid even without a warrant and
may be admissible as evidence against the
accused.
**DENR has jurisdiction over the
confiscation of forest products and
conveyances used in the commission of
the offense, hence, it is beyond the reach
of replevin3.
III. PHILIPPINE MINING ACT (RA
7942)
Art. XII Section 2 of the Constitution
provides:
All lands of the public domain, waters, minerals,
coal, petroleum, and other mineral oils, all forces
of potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural
resources are owned by the State. With the
exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development, and utilization of natural resources
shall be under the full control and supervision of
the State. The State may directly undertake such
activities, or it may enter into co-production, joint
venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at
least 60 per centum of whose capital is owned by
such citizens. Such agreements may be for a
period not exceeding twenty-five years,
renewable for not more than twenty-five years,
and under such terms and conditions as may
provided by law. In cases of water rights for
irrigation, water supply, fisheries, or industrial
uses other than the development of waterpower,
beneficial use may be the measure and limit of
the grant.
The State shall protect the nations marine wealth
in its archipelagic waters, territorial sea, and
exclusive economic zone, and reserve its use and
enjoyment exclusively to Filipino citizens.
Notes:
- Once minerals are discovered in the land,
whatever the use to which it is being devoted
at the time, such use may be discontinued by
the state to enable it to extract the minerals
3 Action for recovery of property unlawfully seized
 therein in the exercise of its sovereign
prerogative.
- Thus a mineral found in a private land still
belongs to the government.
- The right to possess or own the surface ground
is separate and distinct from the mineral
rights over the same land. And the fact that
the location of a mining claim has been
perfected does not bar the governments
exercise of its power of eminent domain.
The term full control and supervision:
The State, being the owner of the natural
resources, is accorded the primary power and
responsibility in the exploration, development
and utilization thereof. As such, it may undertake
these activities through four modes:
a. The state may directly undertake such
activities.
b. The state may enter into co-production, joint
venture or production-sharing agreements
with Filipino citizens or qualified corporations.
c. Congress may, by law, allow small-scale
utilization of natural resources by Filipino
citizens.
d. For the large-scale exploration, development
and utilization of minerals, petroleum and
other mineral oils, the president may enter
into agreements with foreign-owned
corporations involving technical or financial
assistance. (FTAA)
CASE: Atok-Big Wedge Mining Co. V Intermediate
Appellate court:
The issue is who has preferred rights, the
applicant for land registration or the mining
claim?
Answer: The applicant for land registration shall
prevail.
The court ruled that, the mere recording or
location of mining claim does not ipso facto and
irreversibly convert the land into mineral land.
Mere location does not mean absolute ownership
over the affected land or mining claim. It merely
segregates the located land or area from the
public domain by barring other would-be locators
from locating the same and appropriating for
themselves the minerals found therein. The
recording of a mining claim only operates to
reserve to the registrant exclusive rights to
undertake mining activities upon the land subject
of the claim. Rather, there should be performance
of annual work obligations, and extraction of the
said minerals, thus, if no minerals were extracted
therefrom, notwithstanding the recording of the
claim, the land is not mineral land and
registration thereof is not precluded by such
recorded claim.
The answer will be different if; all the
requirements were present for a valid mining
claim, thus, mining claim will prevail over land
registration.
Note: The effect on the land is that it will not be
part of public domain but private property.
ABANDONMENT:
The act of Abandonment constitutes actual,
absolute and irrevocable desertion of ones right
or property.
There should be concurrence of 2 elements:
a. The intent to abandon a right or claim
b. External act by which that intention is
expressed and carried into effect.
EFFECT:
The said land will be reverted to the public
domain.
As such, a person cannot claim privity of title with
the owners of the prior locations since the
present constitution in express terms states that
with the exception of agricultural lands, all other
natural resources shall not be alienated.
MINERAL RESERVATIONS:
Sec. 5 of RA 7942: The President may establish
mineral reservations upon the recommendation
of the Director through the Secretary.
It is beyond the power of DENR Secretary to
withdraw lands from forest reserves and to
declare the same as an area open for mining
operations.
MINING APPLICATIONS IN FOREST LANDS:
RA 7942 Sec.18 allows mining in public or private
lands, including timber or forest lands subject to
existing rights and reservations. Similarly, Section
47 of PD 705 permits mining operations in forest
lands which include the public forest, the
permanent forest or forest reserves, and forest
reservations.
Note: there should be authorization/permit from
the government itself.
ORGANIZATIONAL STRUCTURE:
Authority of the Department:

The secretary shall have the authority to enter
into mineral agreements on behalf of the
government upon the recommendation of the
Director, and promulgate such rules and
regulations as may be necessary to implement
the intent and provisions of the acts.
Role of the local governments:
P.174 (mahaba masyado)
BUREAU CONFERRED QUASI-JUDICIAL
POWERS:
It may be stated that under PD no. 1281, the
Bureau of Mines, now the Mines and
Geosciences Bureau (Bureau) was vested with
jurisdictional supervision and control over all
holders of mining claims or applicants for and/or
grantees of mining licenses, permits, leases
and/or operators thereof, including mining service
contracts and service contractors insofar as their
mining activites are concerned.
PD 1281 sec 7 conferred upon the Bureau original
and exclusive jurisdiction to hear and decide
cases involving, among others, the cancellation
and/or enforcement of mining contracts due to
the refusal of the claimowner/operator to abide
by the terms and conditions thereof.
CASE: Asaphil Construction and Development
Corporation:
The court reiterated that there is a distinction
between
1) the primary powers granted by pertinent
provisions of law to the then Secretary of
Agriculture and Natural Resources of an executive
or administrative nature, such as granting
license, permits, lease and contracts, or
approving, rejecting, reinstating or cancelling
applications, or deciding conflicting applications,
2)controversies or disagreements of civil or
contractual nature between litigants which are
questions of a judicial nature that may be
adjudicated only by the courts of justice.
Note: The resolution of the validity or voidness of
the contracts remains a legal or judicial question
as it requires the exercise of judicial functions.
The complaint was not merely for the
determination of rights under the mining
contracts since the very validity of those
contracts is put in issue.
SCOPE OF APPLICATION:
All minerals in public or private lands, including
timber or forestlands in defined in existing laws,
shall be open to mineral agreements or financial
or technical assistance agreement applications.
Areas closed to mining operations:
A. In military and other government
reservations, except upon prior written
clearance by the government agency
concerned;
B. Near or under public or private buildings,
cemeteries, archaeological and historic sites,
bridges, highways, waterways, railroads,
reservoirs, dams or other infrastructure
projects, public or private works including
plantations or valuable crops, except upon
written consent of the government agency or
private entity concerned;
C. In areas covered by valid and existing mining
rights;
D. In areas expressly prohibited by law;
E. In areas covered by small-scale miners as
defined by law unless with prior consent of
the small-scale miners, in which case a
royalty payment upon the utilization of
minerals shall be agreed upon by the parties,
said royalty forming a trust fund for the
socioeconomic development of the
community concerned;
F. Old growth or virgin forest, proclaimed
watershed forest reserves, wilderness area,
mangrove forests, mossy forests, national
parks, provincial/municipal forests, parks,
greenbelts, game refuge and bird sanctuaries
as defined by law and in areas expressly
prohibited under the National Integrated
Protected Area System ( NIPAS ).
EXPLORATION PERMIT:
Sec 20 of RA 7942:
Exploration Permit An exploration permit grants
the right to conduct exploration for all minerals in
specified areas. The Bureau shall have the
authority to grant an exploration permit to a
qualified person.
Foreigners are allowed to apply for and hold an
exploration permit. There is no prohibition at all
against foreign or local corporations or
contractors holding exploration permits. ( La
bugal-blaan Tribal Association V Ramos )
Note:
Such permit does not amount to an authorization
to extract and carry off the mineral resources that
may be discovered.
Such permit is revocable when demanded by the
police power.
Transfer: in can be transfer or assigned provided
that there is approval of the secretary upon
recommendation of the director and should be a
qualified person.
TYPES OF MINERAL AGREEMENTS:
1. MPSA Mineral production sharing
agreement is an agreement where the
government grants to the contractor the
exclusive right to conduct mining operations
within a contract area and shares in the gross
output. The contractor shall provide the
financing, technology, management and
personnel necessary for the implementation of
this agreement.
Scope: the government grants the contractor the
exclusive right to conduct mining operations
within a contract area and shares in the gross
output. The MPSA contractor provides the
financing, technology, management and
personnel necessary for the agreements
implementation. The total government share in
MPSA is the excise tax on mineral products.
2. CA Co-Production Agreement is an
agreement between the government and the
contractor wherein the government shall provide
inputs to the mining operations other than the
mineral resources.
Scope: the government provides inputs to the
mining operations other than the mineral
resource.
3. JVA Joint-venture Agreement is an
agreement where a joint-venture company is
organized by the government and the contractor
with both parties having equity shares. Aside
from earnings in equity, the government shall be
entitled to a share in the gross output.
Scope: the government enjoys the greatest
participation; the government and JVA contractor
organize a company with both parties having
equity shares. Aside from earnings in equity, the
government in a JVA is also entitled to a share in
the gross output.
Eligibility (for the 3 Mineral Agreements):
In case of individual must be a Filipino citizen of
legal age and with capacity to contract
In case of a corporation, partnership, association
or cooperative must be organized or authorized
for the purpose of engaging in mining, duly
registered in accordance with law, at least 60% of
the capital of which is owned by Filipino Citizens.
SHARE OF THE GOVERNMENT IN CA/JVA:
Section 81 of RA 7942:
The share of the Government in co-production
and joint-venture agreements shall be negotiated
by the Government and the contractor taking into
consideration the:
a. capital investment of the project;
b. risks involved;
c. contribution of the project to the
economy; and
d. Other factors that will provide for a fair
and equitable sharing between the
Government and the contractor.
The Government shall also be entitled to
compensations for its other contributions which
shall be agreed upon by the parties, and shall
consist, among other things, the contractors
income tax, excise tax, special allowance,
withholding tax due from the contractors
foreign stockholders arising from dividend or
interest payments to the said foreign
stockholders, in case of a foreign national, and
all such other taxes, duties and fees as provided
for under existing laws.
The Government share in financial or technical
assistance agreement shall consist of, among
other things, the contractors corporate income
tax, excise tax, special allowance, withholding
tax due from the contractors foreign
stockholders arising from dividend or interest
payments to the said foreign stockholder in case
of a foreign national and all such other taxes,
duties and fees as provided for under existing
laws.
The collection of Government share in financial
or technical assistance agreement shall
commence after the financial or technical
assistance agreement contractor has fully
recovered its pre-operating expenses,
exploration, and development expenditures,
inclusive.
Effect:
A mineral agreement shall grant to the contractor
the exclusive right to conduct mining operations
and to extract all mineral resources found in the
contract area. In addition, the contractor may be
allowed to convert his agreement into any of the
modes of mineral agreements or financial or
technical assistance agreement covering the
remaining period of the original agreement
subject to the approval of the Secretary.
Registration of Mineral Agreement should be
approved by the Secretary, and forwarded to the
Bureau for numbering. Failure to register may
become a ground for cancellation.
FTAA FINANCIAL OR TECHNICAL
ASSISTANCE AGREEMENT:
A contract involving financial or technical
assistance for large-scale exploration,
development, and utilization of natural resources.
FTAA is subject to negotiation. The governments
contributions, in the form of taxes in an FTAA is
identical to its contributions in the 2 mineral
agreements (CA/JVA), save that in an FTAA; The
collection of government share in financial or
technical assistance agreement shall commence
after the financial or technical assistance
agreement contractor has fully recovered its pre-
operating expenses, exploration, and
development expenditures, inclusive.
Eligibility: a legally organized foreign-owned
corporation (any corporation, partnership,
association, or cooperative duly registered in
accordance with law in which less than 50% of
the capital is owned by Filipino citizens) is
deemed a qualified person.
FTAA may be Assign or Transfer: in whole or in
part, to a qualified person subject to the prior
approval of the President.
CASE: La Bugal-blaan Tribal Association v
Ramos:
In this case, the Petitioner assesses the act of
WMCP (Western Mining Corporation (Philippines),
Inc., in managing and operating every aspect of
the mining activity. ( WMPC is a fully foreigned-
owned mining corporation ). The Petitioner
contends that, in pursuant to Art XII sec.2, WMCP
acts should only be limited to technical or
financial assistance
Ruling: Petitioner won.
The court ruled that, pursuant to 1987
Constitution, the utilization of inalienable lands of
public domain through license, concession or
lease is no longer allowed under the present
constitution.
But, the State may secure the help of foreign
companies, especially financial and technical
assistance, provided that the State maintains its
right of full control.
Non-Impairment of Contracts:
The court declared in Lepanto Consolidated
Mining Co. v WMC resources that if section 40 of
the Philippine Mining Act of 1995 requiring the
approval of the President with respect to
assignment or transfer of FTAAs, is applied
retroactively to the Columbio FTAA, that would
tantamount to an impairment of the obligations
under said contract as it would effectively restrict
the right of the parties thereto assign or transfer
their interest in the said FTAA.
Note: The transfer of Columbio FTAA rights came
first before the enactment of the said Mining Act.
QUARRY RESOURCES:
The Provincial/City Mining Regulatory Board shall,
among others, accept, process and evaluate
applications and determine administrative
charges and fees for quarry, sand and gravel,
guano, gemstone gathering and small-scale
mining permits duly filed with the same.
Permit: Any qualified person may apply for a
quarry permit with the Provincial Governor/City
Mayor through the Provincial/City Mining
Regulatory Board. No quarry permit shall be
issued or granted on any area covered by a
mineral agreement of FTAA, except on areas
where a written a consent is granted by the
mineral agreement or FTAA contractor.
Sand and Gravel Permits:
Commercial Sand and Gravel Permit - Any
qualified person may apply for a Commercial
Sand and Gravel permit with the Provincial
Governor/City Mayor through the Provincial/City
Mining Regulatory Board for the extraction,
removal and disposition of sand and gravel and
other loose or unconsolidated materials which are
used in their natural state without undergoing
processing.
Industrial Sand and Gravel Permit - Any
qualified person may apply for Industrial Sand
and Gravel permit with the Provincial
Governor/City Mayor through the Provincial/City
Mining Regulatory Board for the extraction,
removal and disposition of sand and gravel and
other loose or unconsolidated materials that
necessitate the use of mechanical processing.
Exclusive Sand and Gravel Permit - Any
qualified person may apply for Exclusive Sand
and Gravel permit with the Provincial
Governor/City Mayor through the Provincial/City
Mining Regulatory Board for the extraction,
removal and disposition of sand and gravel and
other loose or unconsolidated materials from
public land for its own use.
Effect: the quarry or sand and gravel permit
holder, its heirs or successors-in-interest shall
have the right to exclusively extract, remove,
dispose and or utilize quarry or sand and gravel
resources within the permit area with full rights of
ingress and egress, the right to occupy the same,
all other rights provided for in the act and these
implementing rules and regulations; and the
obligation to fully comply with the terms and
conditions of the permit.
GRATUITOUS PERMIT:
Government Gratuitous Permit: Any government
entity/instrumentality in need of quarry, sand and
gravel or loose/unconsolidated materials in the
construction of buildings and or infrastructure for
public use or other purposes.
Private Gratuitous Permit: Any landowner may
apply for a private gratuitous permit with the
Provincial Governor/City Mayor through the
Provincial/City Mining Regulatory Board for the
extraction, removal and utilization of quarry, sand
and gravel or loose/unconsolidated materials
from his/her land for a non-renewable.
Guano Permit:
Any qualified person, whose domicile is within the
municipality where the area applied for is located,
may apply for a guano permit.
Gratuitous Guano Permit:
A Gratuitous Guano permit may be granted to an
individual for his/her personal use to any
government agency in need of the material within
a specified person.
Commercial Guano Permit:
May be granted to a qualified person for sale or
commercial disposition thereof within a specified
period.
Effect:
the guano permit holder, its heirs or successors-
in-interest shall have the right to exclusively
extract, remove, dispose and or utilize guano
resources within the permit area with full rights of
ingress and egress, the right to occupy the same,
all other rights provided for in the act and these
implementing rules and regulations; and the
obligation to fully comply with the terms and
conditions of the permit.
Gemstone gathering permit: same goes with the
previous ones.
TRANSPORT, SALE AND PROCESSING OF
MINERALS:
Ore Transport Permit: Transport permit shall be
issued by the mines regional director who has
jurisdiction over the area where the ores were
extracted. In case of mineral ores or minerals
being transported from the small-scale mining
areas to the custom mills or processing plants,
the Provincial Mining Regulatory Board (PMRB)
concerned shall formulate their own policies to
govern such transport of ores produced by small-
scale miners.
The absence of a permit shall be considered as
prima facie evidence of illegal mining/theft and
shall be sufficient for confiscation.
Mineral Trading Registration No person shall
engage in the trading of mineral products, either
locally or internationally, unless registered with
the Department of Trade and Industry and
accredited by the Department, with a copy of said
registration submitted to the bureau.
Mineral Processing Permit there should be
permit from the secretary.
SAFETY AND ENVIROMENTAL PROTECTION:
Pollution cases under jurisdiction of the
Pollution and Adjudication Board (PAB).
The internal structure, organization and
description of the functions of the DENR,
particularly the Mines and Geosciences Bureau
reveals no provision pertaining to the resolution
of cases involving violations of pollution law.
The mines regional director has express
administrative and regulatory powers over mining
operations and installations, he has no
adjudicative powers over complaints for violation
of pollution control statutes and regulations.
Thus, the PAB has not been divested of its
authority to try and hear pollution cases
connected with mining operations by virtue of the
subsequent enactment of RA 7942.
SURFACE RIGHTS:
Section 75 of RA7492: When mining areas are
so situated that for purposes of more
convenient mining operations it is
necessary to build, construct or install on
the mining areas or lands owned, occupied
or leased by other persons, such
infrastructure as roads, railroads, mills,
waste dump sites, tailings ponds,
warehouses, staging or storage areas and
port facilities, tramways, runways, airports,
electric transmission, telephone or
telegraph lines, dams and their normal
flood and catchment areas, sites for water
wells, ditches, canals, new river beds,
pipelines, flumes, cuts, shafts, tunnels, or
mills, the contractor, upon payment of just
compensation, shall be entitled to enter and
occupy said mining areas or lands.
The Panel of Arbitrators has preliminary say on
the determination of compensation.
ENTRY INTO LANDS: (Section 76)
Entry into Private Lands and Concession
Areas
Subject to prior notification, holders of mining
rights shall not be prevented from entry into
private lands and concession areas by surface
owners, occupants, or concessionaires when
conducting mining operations therein: Provided,
That any damage done to the property of the
surface owner, occupant, or concessionaire as a
consequence of such operations shall be properly
compensated as may be provided for in the
implementing rules and regulations: Provided,
further, That to guarantee such compensation,
the person authorized to conduct mining
operation shall, prior thereto, post a bond with
the regional director based on the type of
properties, the prevailing prices in and around
the area where the mining operations are to be
conducted, with surety or sureties satisfactory to
the regional director.
Note:
There should 1st be agreement
In case of disagreement: matter shall be brought
before the Panel of Arbitrators for proper
disposition.
Note:
Determination of compensation by the Panel of
Arbitrators is only preliminary unless accepted by
all parties concerned, the determination still lies
in the judicial court.
In case of transfer without permit, then it will be
confiscated together with the equipment and
tools and conveyance.
SETTLEMENT OF CONFLICTS:
The Penal of Arbitrators: two (2) members of
the Philippines bar and one (1) licensed mining
engineer or a professional in related field
designated by the DENR Secretary upon the
recommendation of the Mines and Geosciences
Bureau.
After the submission of the case by the parties for
decision, the panel shall have exclusive and
original jurisdiction (primary jurisdiction) to
hear and decide on the following:
a. Disputes involving rights to mining areas
(mining disputes);
b. Disputes involving mineral agreements or
permits;
c. Disputes involving surface owners, occupants
and claimholders/concessionaires; and
d. Disputes pending before the Bureau and the
Department at the date of the effectivity of this
Act.
APPEAL: MINES ADJUDICATION BOARD
(MAB)
Fifteen (15) days from receipt thereof which must
decide the case within thirty (30) days from
submission for decision.
MAB is composed of three (3) members, with the
DENR Secretary as Chairman, and the Director of
the Mines and Geosciences Bureau and the
Undersecretary for Operations of the department
as members.
The decisions of MAB are appealable to the Court
of Appeals.
GROUNDS FOR CANCELLATION,REVOCATION
AND TERMINATION
1. Late or non-filing of requirements
2. Violation of the terms and conditions of
permits or agreements
3. Non-payment of taxes or fees
PENAL PROVISIONS
1. False Statements: Any person who
knowingly presents any false application,
declaration, or evidence to the Government or
publishes or causes to be published any
prospectus or other information containing any
false statement relating to mines
2. Illegal Exploration: Any person undertaking
exploration work without the necessary
exploration permit.
3. Theft of Minerals: Any person extracting
minerals and disposing the same without a
mining agreement, lease, permit, license, or
steals minerals or ores or the products thereof
from mines or mills or processing plants shall
4. Destruction of Mining Structures: Any
person who willfully destroys or damages
structures in or on the mining area or on the mill
sites
5. Mines Arson: Any person who willfully sets
fire to any mineral stockpile, mine or workings,
fittings or a mine

6. Willful Damage to a Mine: Any person
who willfully damages a mine, unlawfully causes
water to run into a mine, or obstructs any shaft
or passage to a mine, or renders useless,
damages or destroys any machine, appliance,
apparatus, rope, chain, tackle, or any other
things used in a mine.
7. Illegal Obstruction to Permittees or
Contractors: Any person who, without
justifiable cause, prevents or obstructs the
holder of any permit, agreement or lease from
undertaking his mining operations.
8. Violation of the Terms and Conditions of
the Environmental Compliance Certificate
9. Illegal Obstruction to Government
Officials: Any person who illegally prevents or
obstructs the Secretary, the Director or any of
their representatives in the performance of their
duties under the provisions of this Act and of the
regulations promulgated hereunder.