Article 98Labor and Agrarian Laws and Social Legislation, p. 98

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

CHAPTER V Land Acquisition

Section

16.

Procedure

for

Acquisition

and

Distribution

of

Private

Lands .

—

For

purposes

of

acquisition of private lands, the following procedures shall

be followed:

(a) After having identified the land, the landowners

and the beneficiaries, the DAR shall send its notice to

acquire the land to the owners thereof, by personal

delivery or registered mail, and post the same in a

conspicuous

place

in

the

municipal

building

and

barangay hall of the place where the property is located.

Said notice shall contain the offer of the DAR to pay a

corresponding value in accordance with the valuation set

forth in Sections 17, 18, and other pertinent provisions

hereof.

(b) Within thirty (30) days from the date of receipt of

written notice by personal delivery or registered mail, the

landowner,

his

administrator

or

representative

shall

inform the DAR of his acceptance or rejection of the offer.

(c) If the landowner accepts the offer of the DAR, the

Land

Bank

of

the

Philippines

(LBP)

shall

pay

the

landowner the purchase price of the land within thirty

(30) days after he executes and delivers a deed of transfer

in favor of the government and surrenders the Certificate

of Title and other muniments of title.

(d) In case of rejection or failure to reply, the DAR shall

conduct

summary

administrative

proceedings

to

determine the compensation for the land requiring the

landowner,

the LBP and other interested parties to

submit evidence as to the just compensation for the land,

within fifteen (15) days from the receipt of the notice.

After the expiration of the above period, the matter is

deemed submitted for decision. The DAR shall decide the

case within thirty (30) days after it is submitted for

decision.

(e)

Upon

receipt

by

the

landowner

of

the

corresponding payment or, in case of rejection or no

response from the landowner, upon the deposit with an

accessible

bank

designated

by

the

DAR

of

the

compensation in cash or in LBP bonds in accordance

with this Act, the DAR shall take immediate possession of

the land and shall request the proper Register of Deeds

to issue a Transfer Certificate of Title (TCT) in the name of

the Republic of the Philippines. The DAR shall thereafter

proceed

with

the

redistribution

of

the land to the

qualified beneficiaries.

(f) Any party who disagrees with the decision may

bring the matter to the court of proper jurisdiction for

final determination of just compensation.

CHAPTER VI Compensation

Section 17. Determination of Just Compensation . —

In determining just compensation, the cost of acquisition

of the land, the value of the standing crop, the current:

value of like properties, its nature, actual use and income,

the sworn valuation by the owner, the tax declarations,

the assessment made by government assessors, and

seventy percent (70%) of the zonal valuation of the

Bureau of Internal Revenue (BIR), translated into a basic

formula by the DAR shall be considered, subject to the

final

decision

of

the

proper

court.

The

social

and

economic benefits contributed by the farmers and the

farmworkers and by the Government t o the property as

well as the nonpayment of taxes or loans secured from

any government financing institution on the said land

shall be considered as additional factors to determine its

valuation.

Section 18. Valuation and Mode of Compensation .

— The LBP shall compensate the landowner in such

amounts as may be agreed upon by the landowner and

the DAR and the LBP, in accordance with the criteria

provided for in Sections 16 and 17, and other pertinent

provisions hereof, or as may be finally determined by the

court, as the just compensation for the land.

The

compensation shall be paid on one of the

following modes, at the option of the landowner:

(1) Cash payment, under the following terms and

conditions;

(a) For lands above fifty

(50) hectares, insofar

as the excess

hectarage is

concerned.

—

Twenty-five percent (25%)

cash, the balance to be

paid in government

financial instruments

negotiable at any time.

(b) For lands above

twenty-four (24)

hectares and up to fifty

(50) hectares.

—

Thirty percent (30%) cash,

the balance to be paid in

government financial

instruments negotiable

at any time.

(c) For lands

twenty-four (24)

hectares and below.

—

Thirty-five percent (35%)

cash, the balance to be

paid in government

financial instruments

negotiable at any time.

(2)

Shares

of

stock

in

government-owned

or

controlled corporations, LBP preferred shares, physical

assets or other qualified investments in accordance with

guidelines set by the PARC;

(3) Tax credits which can be used against any tax

liability;

(4)

LBP

bonds,

which

shall

have

the

following

features:

(a) Market interest rates aligned with 91-day treasury

bill rates. Ten percent (10%) of the face value of the bonds

shall mature every year from the date of issuance until

the tenth (10th) year: provided, that should the landowner

choose to forego the cash portion, whether in full or in

part, he shall be paid correspondingly in LBP bonds;

(b) Transferability and negotiability. Such LBP bonds

may be used by the landowner, his successors in interest

or his assigns, up to the amount of their face value, for

any of the following:

(i) Acquisition of land or other real properties of the

government,

including

assets

under

the

Asset

Privatization Program and other assets foreclosed by

government financial institutions in the same province or

region where the lands for which the bonds were paid are

situated;

(ii)

Acquisition

of

shares

of

stock

of

government-owned or -controlled corporations or shares

of

stocks

owned

by

the

government

in

private

corporations;

(iii) Substitution for surety or bail bonds for the

provisional release of accused persons, or performance

bonds;

(iv) Security for loans with any government financial

institution, provided the proceeds of the loans shall be

invested

in

an

economic enterprise, preferably in a

small-and medium-scale industry, in the same province

or region as the land for which the bonds are paid;

(v) Payment for various taxes and fees to government;

provided, that the use of these bonds for these purposes

will be limited to a certain percentage of the outstanding

balance of the financial instruments: provided, further,

that

the

PARC

shall

determine

the

percentage

mentioned above;

(vi) Payment for tuition fees of the immediate family

of the original bondholder in government universities,

colleges, trade schools, and other institutions;

(vii) Payment for fees of the immediate family of the

original bondholder in government hospitals; and

(viii) Such other uses as the PARC may from time to

time allow.

In case of extraordinary inflation, the PARC shall take

appropriate measures to protect the economy.

Section 19. Incentives for Voluntary Offers for Sales .

— Landowners, other than banks and other financial

institutions, who voluntarily offer their lands for sale shall

be

entitled

to

an additional five percent (5%) cash

payment.

Section 20. Voluntary Land Transfer . — Landowners

of agricultural lands subject to acquisition under this Act

may

enter

into

a

voluntary

arrangement

for

direct

© Compiled By RGL

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