Rights and Obligations of the Parties

What is the difference between a Lessor and a Lessee?

Lessor- an individual who owns the property that is for lease.

Lessee- the person who will be renting in the property owned by the lessor.

Rights of the lessee

to have possession and peaceful enjoyment of the land..

1. Possession

To manage and work on the land.

2. Management

To mechanize all or any phase of his farm work.

3. Mechanization

To deal with millers and process and attend to the issuance of quedans and warehouse receipts for the produce due him

4. Dealing with millers

What is a Quedan? ( QUEDANCOR) June 9, 1978,It is a government corporation. The Quedan and Rural Credit Guarantee Corporation mandate is to accelerate the flow of investments and credit resources into the countryside so as to trigger the vigorous growth and development of rural productivity, employment and enterprises to generate more livelihood and income

To have or continue in the possession and enjoyment of any home which is considered included in the leasehold.

5. Possession of home lot

To be indemnified for costs and expenses incurred and for of the necessary and useful improvements made on the landholding in case he surrenders or abandons his landholding for just cause or is ejected therefrom.

6. Indemnification for costs and expenses

The lessee also enjoys the right of pre emption or redemption in case of sale of the land that he cultivates. the right to claim exemption from execution. the right to enjoy security of tenure. the right to terminate the relationship for cause.

7. Other rights

Obligations of the Lessee

To cultivate and take care of the farm as a good father of a family and perform all the work therein in accordance with proven farm practices.

1. Due care of farm

To inform the lessor of any trespass committed by a third person.

2. Notice of trespass

3. Care of rental facilities

take care of work animals and farm implements of the lessor and see to it that they are not used for purposes other than those intended, or used by another without the consent of the lessor.

4. Proper attention to farm

To keep his farm and growing crops attended during the work season

5. Notice of harvest
To notify the lessor at least 3 days before the date for harvesting or threshing , as the case, may be.

6. Payment of rental
To pay the lease rental to the lessor when it falls due.

Payment of rental
Manner, time and place Prohibited practices

To contract to work additional holdings belonging to a different agricultural lessor b. To acquire and personally cultivate an economic family-sized farm c. To employ a sublessee on his landholding
a.

Prohibitions to the lessee

1. Cruel, inhuman or offensive treatment of the lessee or any member of his immediate household by the lessor.

Termination of leasehold by lessee

2. Non-compliance by the lessor with the obligations imposed by the Code or his contract

3. Complusion of the lessee or any member of his immediate household to do any work not in any way connected with farm work, or even without compulsion, if no compensation is paid.

4. Commission of a crime by the lessor against the lessee or any member of his immediate farm household

5. Voluntary Surrender due to the circumstances more advantageous to him and his family under sec.28.

1. Inspection- to inspect and observe the extent of compliance with the terms and conditions of their contract and the provisions of the law.

Rights of the Lessor

2. Suggest change- to propose a change in the use of the landholding to other agricultural purposes or in the kind of crops to be planted.

3. Proven farm practices- to require the lessee to adopt proven farm practices necessary for the conversation of the land, improvement of its fertility and increase of its productivity.

4. Mortgage- to mortgage expected rentals.

5. Other Rights- the lessor has also the right to receive payments of rentals and to eject the lessee for just and valid grounds.

1. To keep the lessee in peaceful possession and cultivation of his landholding.

2. To keep intact the permanent useful improvements existing on the landholding such as irrigation and drainage systems.

Obligations of the Lessor

1. Dispossession- to eject the lessee without court order; otherwise, he shall be liable for damages, and/or imprisonment.

Prohibitions to the Lessor

2. Shifting of Tax- to require the lessee to pay, directly or indirectly, taxes levied on the landholding.

3. Shifting of Rent- to require the lessee to pay rent or any consideration the lessor is under obligation to pay to third persons for the use of the land.

4. Dealing with millers- to deal with millers or processors without written authorization of the lessee in cases where the crop has to be sold in processed form before payment of the rental.

5. Interference with organizational rightsto discourage the formation or growth of unions or organizations of lessees or interfere in or dominate the same.

Consideration for lease of Riceland and lands devoted to other crops.

1. Lands cultivated for a period of three (3) years or more. 2. Lands cultivated for a period of less than three (3) years 3. Meaning of normal harvest. 4. Where there is no agreement between the parties as to rental. 5. Increase of rental.

1. Instances a. when the landholding is appropriated by the government. b. when it is redeemed. 2. Purchased Price- it shall be determined by the parties or the government agencies concerned on the basis of the fair market value, without prejudice to considering the assessed value and other pertinent factors.

Rental credited as amorzation payment

1. Amount
2. Application of proceeds

Right of lessee to obtain loan

1. To answer for the default in case the reason therefor is due to a fortuitous event
2. In any other case, to take over the ownership and administration of said property.

Procedure in case of lessees default

1. The lessee can be lawfully dispossessed of his land holding if the following conditions are present. 2. It must be authorization by the court in a after judgement that has become final and executory after due after hearing.

Conditions for dispossession of lessee

1. Declaration of suitability for non agricultural purposes- declaration of the landholding by the Department of Agrarian Reform to be suited for residential, commercial, industrial or some other urban purposes. 2. Non-compliance with obligations- failure of the lessee to substantially comply with his contractual and legal obligations except if caused by fortuitous event.

Causes for Dispossession

3. Use of land contrary to stipulationsplanting crops or using the landholdings for a purpose other than what had been previously agreed upon.

4. Non-adoption of proven farm practices- failure of the lessee to adopt proven farm practices.

5. Wrongful injury to land- substantial damage or destruction or unreasonable deterioration of the a land or other substantial improvements thereon through the fault or negligence of the lessee. 6. Non-payment of rental- failure of the lessee to pay the lease rental.

7. Employment of sub-lessee- employing a sub-lessee except if the lessee is ill or temporarily incapacitated.

Any action by the lessee or the lessor to enforce any cause of action under the code must be brought within three (3) years after such cause of action accrued; otherwise, it shall be barred. A statue of limitations is a law prescribing the period within which a party should enforce his right of appeal to the courts for redress of grievances.

Statute of limitations

1. Violation of Section 13 requiring an affidavit of the vendor on sale of land subject to right of pre-emption that has given written notice to the lessee or that the land is not worked by agricultural lessee.

Criminal Violations

2. Violation of Section 27 which prohibits the lessee from contracting to work additional landholding belonging to a different agricultural lessor or to acquire and a personally cultivate an economic family-size farm and from employing a sub-lessee on his landholding. 3. Violation of Section 31 prohibiting illegal dispossession of the agricultural lessee.

5. Executing an affidavit required by section 13 for the registration of sale of land cultivated by an agricultural lessee knowing the contents thereof to be false. 6. Any collusion between an agricultural lessee and on agricultural lessor and between a vendor and a vendee on installment sales to stimulate agricultural loans , or any application for benefits under the Agrarian Reform Program.

The End.. <3