Section 7Sec./Art. 7

Standards for the Assessment of the Value of the Property Subject to Negotiated Sale. In order to facilitate the determination of the market value of the property, the following relevant standards shall be observed:

(a) The classification and use for which the property is suited;

(b) The development cost for improving the land,

(c) The value declared by the owners;

(d) The current selling price of similar lands in the vicinity,

(e) The reasonable disturbance compensation for the removal and demolition of certain improvements on the land and for the value of improvements thereon;

(f) The size, shape or location, tax declaration and zonal valuation of the land;

(g) The price of the land as manifested in the ocular findings, oral as well as documentary evidence presented; and

(h) Such facts and events as to enable the affected property owners to have sufficient funds to acquire similarly situated lands of approximate areas as those required from them by the government, and thereby rehabilitate themselves as early as possible.

The implementing rules and regulations (IRR) to be prepared under Section 13 hereof shall include, among other things, the terms of reference which shall be used by the government financial institutions and independent property appraisers in the determination of the market value of the land. The terms of reference shall define in detail the standards stated herein.