Article 110Labor and Agrarian Laws and Social Legislation, p. 110

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

agricultural lessee occurs during the agricultural year,

such

choice

shall

be

exercised

at

the end of that

agricultural year: Provided, further, That in the event the

agricultural lessor fails to exercise his choice within the

periods

herein

provided,

the

priority

shall

be

in

accordance with the order herein established.

In

case

of

death

or

permanent

incapacity

of

the

agricultural lessor, the leasehold shall bind his legal heirs.

Section

10.

Agricultural

Leasehold

Relation

Not

Extinguished

by

Expiration

of

Period,

etc.

-

The

agricultural leasehold relation under this Code shall not

be extinguished by mere expiration of the term or period

in a leasehold contract nor by the sale, alienation or

transfer of the legal possession of the landholding. In case

the agricultural lessor sells, alienates or transfers the legal

possession

of

the

landholding,

the

purchaser

or

transferee thereof shall be subrogated to the rights and

substituted to the obligations of the agricultural lessor.

Section 11. Lessee's Right of Pre-emption . — In case the

agricultural lessor decides to sell the landholding, the

agricultural lessee shall have the preferential right to buy

the

same

under

reasonable

terms

and

conditions:

Provided , That the entire landholding offered for sale

must be pre-empted by the Department of Agrarian

Reform upon petition of the lessee or any of them:

Provided, further , That where there are two or more

agricultural

lessees,

each

shall

be

entitled

to

said

preferential right only to the extent of the area actually

cultivated by him. The right of pre-emption under this

Section may be exercised within one hundred eighty days

from notice in writing, which shall be served by the

owner on all lessees affected and the Department of

Agrarian Reform.

If the agricultural lessee agrees with the terms and

conditions of the sale, he must give notice in writing to

the agricultural lessor of his intention to exercise his right

of pre-emption within the balance of one hundred eighty

day's period still available to him, but in any case not less

than thirty days. He must either tender payment of, or

present a certificate from the land bank that it shall make

payment pursuant to section eighty of this Code on, the

price of the landholding to the agricultural lessor. If the

latter refuses to accept such tender or presentment, he

may consign it with the court.

Any dispute as to the reasonableness of the terms and

conditions may be brought by the lessee or by the

Department of Agrarian Reform to the proper Court of

Agrarian Relations which shall decide the same within

sixty days from the date of the filing thereof: Provided ,

That upon finality of the decision of the Court of Agrarian

Relations, the Land Bank shall pay to the agricultural

lessor the price fixed by the court within one hundred

twenty days: Provided, further , That in case the Land

Bank fails to pay within that period, the principal shall

earn an interest equivalent to the prime bank rate

existing at the time.

Upon the filing of the corresponding petition or request

with the department or corresponding case in court by

the agricultural lessee or lessees, the said period of one

hundred and eighty days shall cease to run.

Any petition or request for pre-emption shall be resolved

within sixty days from the filing thereof; otherwise, the

said period shall start to run again.

Section 12. Lessee's Right of Redemption . — In case the

landholding

is

sold

to

a

third

person

without

the

knowledge of the agricultural lessee, the latter shall have

the right to redeem the same at a reasonable price and

consideration: Provided , That where there are two or

more agricultural lessees, each shall be entitled to said

right of redemption only to the extent of the area actually

cultivated by him. The right of the redemption under this

Section may be exercised within one hundred eighty days

from notice in writing which shall be served by the

vendee on all lessees affected and the Department of

Agrarian Reform upon the registration of the sale, and

shall

have

priority

over

any

other

right

of

legal

redemption.

The

redemption

price

shall

be

the

reasonable price of the land at the time of the sale.

Upon the filing of the corresponding petition or request

with the department or corresponding case in court by

the agricultural lessee or lessees, the said period of one

hundred and eighty days shall cease to run.

Any petition or request for redemption shall be resolved

within sixty days from the filing thereof; otherwise, the

said period shall start to run again.

The Department of Agrarian Reform shall initiate, while

the Land Bank shall finance, said redemption as in the

case of pre-emption. (Amendments to RA No. 3844

(Agricultural Land Reform Code), Republic Act No. 6389,

[September 10, 1971])

Section 13. Affidavit Required in Sale of Land Subject to

Right of Pre-emption - No deed of sale of agricultural

land under cultivation by an agricultural lessee or lessees

shall be recorded in the Registry of Property unless

accompanied by an affidavit of the vendor that he has

given the written notice required in Section eleven of this

Chapter or that the land is not worked by an agricultural

lessee.

Section 14. Right of Pre-emption and Redemption Not

Applicable to Land to be Converted into Residential,

Industrial and Similar Purposes - (Amendments to RA No.

3844 (Agricultural Land Reform Code), Republic Act No.

6389, [September 10, 1971])

Section 15. Agricultural Leasehold Contract in General -

The agricultural lessor and the agricultural lessee shall be

free to enter into any kind of terms, conditions or

stipulations in a leasehold contract, as long as they are

not contrary to law, morals or public policy. A term,

condition

or

stipulation

in

an

agricultural leasehold

contract is considered contrary to law, morals or public

policy:

(1) If the agricultural lessee is required to pay a rental in

excess of that which is hereinafter provided for in this

Chapter;

(2)

If

the

agricultural

lessee

is

required

to

pay

a

consideration in excess of the fair rental value as defined

herein,

for

the

use

of

work

animals

and/or

farm

implements belonging to the agricultural lessor or to any

other person; or

(3) If it is imposed as a condition in the agricultural

leasehold contract: (a) that the agricultural lessee is

required to rent work animals or to hire farm implements

from the agricultural lessor or a third person, or to make

use of any store or services operated by the agricultural

lessor or a third person; or (b) that the agricultural lessee

is required to perform any work or render any service

other than his duties and obligations provided in this

Chapter with or without compensation; or (c) that the

agricultural lessee is required to answer for any fine,

deductions and/or assessments.

Any contract by which the agricultural lessee is required

to accept a loan or to make payment therefor in kind shall

also be contrary to law, morals or public policy.

Section

16.

Nature and Continuity of Conditions of

Leasehold Contract - In the absence of any agreement as

to the period, the terms and conditions of a leasehold

contract shall continue until modified by the parties:

Provided, That in no case shall any modification of its

terms

and

conditions

prejudice

the

right

of

the

agricultural lessee to the security of his tenure on the

landholding: Provided, further, That in case of a contract

with a period an agricultural lessor may not, upon the

expiration of the period increase the rental except in

accordance with the provisions of Section thirty-four.

Section 17. Form and Registration of Contract - Should

the parties decide to reduce their agreement into writing,

the agricultural leasehold contract shall be drawn in

quadruplicate in a language or dialect known to the

agricultural lessee and signed or thumb-marked both by

the agricultural lessee personally and by the agricultural

© Compiled By RGL

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