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Page 1 of 6 | Agrarial Law and Social Legislation Notes Weeks 4-5 | amgisidro

LAND VALUATION Barangay Committee on Land Production concerned shall

resolve the dispute within thirty (30) days from its submission
The process of determining the just compensation for the land pursuant to Department of Agrarian Reform Memorandum
owners, the modes of payment and the review/appeal process Circular No. 26, Series of 1973, and other pertinent issuances.
in case the value is deemed too low. In the event a party questions in court the resolution of the
Land Valuation under Operation Land Transfer dispute, the landowner's compensation claim shall still be
processed for payment and the proceeds shall be held in trust
Par. 4, P.D. 27
by the Trust Department of the Land Bank in accordance with
For the purpose of determining the cost of the land to be the provisions of Section 5 hereof, pending the resolution of
transferred to the tenant-farmer pursuant to this Decree, the the dispute before the court.
value of the land shall be equivalent to two and one-half (2 1/2) Sections 17-18, R.A. No. 6657
times the average harvest of three normal crop years
immediately preceding the promulgation of this Decree CHAPTER VI
Sec. 2, E.O. 228
Section 17. Determination of Just Compensation. In
Sec. 2. Henceforth, the valuation of rice and corn lands
determining just compensation, the cost of acquisition of the
covered by P.D. No. 27 shall be based on the average gross
land, the current value of the like properties, its nature, actual
production determined by the Barangay Committee on Land
use and income, the sworn valuation by the owner, the tax
Production in accordance with Department Memorandum
declarations, and the assessment made by government
Circular No. 26, Series of 1973, and related issuances and
assessors shall be considered. The social and economic
regulations of the Department of Agrarian Reform. The
benefits contributed by the farmers and the farmworkers and
average gross production per hectare shall be multiplied by
by the Government to the property as well as the non-payment
two and a half (2.5), the product of which shall be multiplied by
of taxes or loans secured from any government financing
Thirty Five Pesos (P35.00), the government support price for
institution on the said land shall be considered as additional
one cavan of 50 kilos of palay on October 21, 1972, or Thirty factors to determine its valuation.
One Pesos (P31.00), the government support price for one
cavan of 50 kilos of corn on October 21, 1972, and the amount Section 18. Valuation and Mode of Compensation. The
arrived at shall be the value of the rice and corn land, as the LBP shall compensate the landowner in such amounts as may
case may be, for the purpose of determining its cost to the be agreed upon by the landowner and the DAR and the LBP,
farmer and compensation to the landowner. in accordance with the criteria provided for in Sections 16 and
17, and other pertinent provisions hereof, or as may be finally
Lease rentals paid to the landowner by the farmer beneficiary determined by the court, as the just compensation for the land.
after October 21, 1972, shall be considered as advance
payment for the land. In the event of dispute with the land The compensation shall be paid on one of the following modes,
owner regarding the amount of lease rental paid by the farmer at the option of the landowner:
beneficiary, the Department of Agrarian Reform and the (1) Cash payment, under the following terms and conditions;

(a) For lands above fifty (50) hectares, Twenty-five percent (25%) cash, the
insofar as the excess hectarage is balance to be paid in government financial
concerned. instruments negotiable at any time.

(b) For lands above twenty-four (24) Thirty percent (30%) cash, the balance to
hectares and up to fifty (50) hectares. be paid in government financial instruments
negotiable at any time.

(c) For lands twenty-four (24) hectares and Thirty-five percent (35%) cash, the balance
below. to be paid in government financial
instruments negotiable at any time.

(2) Shares of stock in government-owned or controlled (i) Acquisition of land or other real properties of the
corporations, LBP preferred shares, physical assets or other government, including assets under the Asset Privatization
qualified investments in accordance with guidelines set by the Program and other assets foreclosed by government financial
PARC; institutions in the same province or region where the lands for
which the bonds were paid are situated;
(3) Tax credits which can be used against any tax liability;
(ii) Acquisition of shares of stock of government-owned or -
(4) LBP bonds, which shall have the following features:
controlled corporations or shares of stocks owned by the
(a) Market interest rates aligned with 91-day treasury bill rates. government in private corporations;
Ten percent (10%) of the face value of the bonds shall mature
(iii) Substitution for surety or bail bonds for the provisional
every year from the date of issuance until the tenth (10th) year:
release of accused persons, or performance bonds;
provided, that should the landowner choose to forego the cash
portion, whether in full or in part, he shall be paid (iv) Security for loans with any government financial institution,
correspondingly in LBP bonds; provided the proceeds of the loans shall be invested in an
economic enterprise, preferably in a small-and medium-scale
(b) Transferability and negotiability. Such LBP bonds may be
industry, in the same province or region as the land for which
used by the landowner, his successors in interest or his
the bonds are paid;
assigns, up to the amount of their face value, for any of the
following: (v) Payment for various taxes and fees to government;
provided, that the use of these bonds for these purposes will
Page 2 of 6 | Agrarial Law and Social Legislation Notes Weeks 4-5 | amgisidro

be limited to a certain percentage of the outstanding balance of the criteria provided for in Section 7 of the said law and
the financial instruments: provided, further, that the PARC shall existing guidelines on land valuation; or b) the value based on
determine the percentage mentioned above; the order of the DAR Adjudication Board (DARAB) or the
regular court, which has become final and executory.
(vi) Payment for tuition fees of the immediate family of the
original bondholder in government universities, colleges, trade The basic formula for the valuation of lands covered
schools, and other institutions; by VOS or CA shall be:
(vii) Payment for fees of the immediate family of the original LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
bondholder in government hospitals; and
Where: LV = Land Value
(viii) Such other uses as the PARC may from time to time
CNI = Capitalized Net Income (based on land use and
In case of extraordinary inflation, the PARC shall take
CS = Comparable Sales (based on fair market value
appropriate measures to protect the economy.
equivalent to 70% of BIR Zonal Value)
Section 16 (d), R.A. No. 6657
MV = Market Value per Tax Declaration (based on
CHAPTER V Government assessment)
Land Acquisition
1.1 If three factors are present ATcEDS
Section 16. Procedure for Acquisition of Private Lands.
When the CNI, CS and MV are present, the formula
For purposes of acquisition of private lands, the following
shall be:
procedures shall be followed:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
(a) After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire the land 1.2 If two factors are present
to the owners thereof, by personal delivery or registered mail,
1.2.1 When the CS factor is not present and CNI and MV
and post the same in a conspicuous place in the municipal
are applicable, the formula shall be:
building and barangay hall of the place where the property is
located. Said notice shall contain the offer of the DAR to pay a LV = (CNI x 0.90) + (MV x 0.10)
corresponding value in accordance with the valuation set forth 1.2.2 When the CNI factor is not present, and CS and MV
in Sections 17, 18, and other pertinent provisions hereof. are applicable, the formula shall be:
(b) Within thirty (30) days from the date of receipt of written LV = (CS x 0.90) + (MV x 0.10)
notice by personal delivery or registered mail, the landowner,
his administrator or representative shall inform the DAR of his 1.3 If only one factor is present
acceptance or rejection of the offer. When both the CS and CNI are not present and only
(c) If the landowner accepts the offer of the DAR, the Land MV is applicable, the formula shall be:
Bank of the Philippines (LBP) shall pay the landowner the LV = MV x 2
purchase price of the land within thirty (30) days after he
executes and delivers a deed of transfer in favor of the In no case shall the value of idle land using the
government and surrenders the Certificate of Title and other formula (MV x 2) exceed the lowest value of land within the
muniments of title. same estate under consideration or within the same barangay,
municipality or province (in that order) approved by LBP within
(d) In case of rejection or failure to reply, the DAR shall one (1) year from receipt of Claim Folder (CF.)
conduct summary administrative proceedings to determine the
compensation for the land requiring the landowner, the LBP The specific guidelines governing the valuation of
and other interested parties to submit evidence as to the just lands under voluntary offer to sell (VOS) or compulsory
compensation for the land, within fifteen (15) days from the acquisition (CA) pursuant to R.A. No. 6657, as amended by
receipt of the notice. After the expiration of the above period, R.A. No. 9700 are provided in CARP-LAD Annex A of this
the matter is deemed submitted for decision. The DAR shall Order.
decide the case within thirty (30) days after it is submitted for 2. All previously acquired lands wherein valuation is
decision. subject to challenge by landowners shall be completed and
(e) Upon receipt by the landowner of the corresponding finally resolved pursuant to Section 17 of R.A. No. 6657, as
payment or, in case of rejection or no response from the amended.
landowner, upon the deposit with an accessible bank In like manner, claims over tenanted rice and corn
designated by the DAR of the compensation in cash or in LBP lands under P.D. No. 27 and Executive Order (E.O.) No. 228
bonds in accordance with this Act, the DAR shall take whether submitted or not to the Land Bank of the Philippines
immediate possession of the land and shall request the proper (LBP) and not yet approved for payment shall be valued under
Register of Deeds to issue a Transfer Certificate of Title (TCT) R.A. No. 6657, as amended.
in the name of the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of the land to the Landholdings covered by P.D. No. 27 and falling
qualified beneficiaries. under Phase I of R.A. No. 9700 shall be valued under R.A. No.
(f) Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final determination 3. In cases of rejection, landowners may withdraw the
of just compensation. original value of the landholding as determined by the
Department of Agrarian Reform (DAR) and Land Bank of the
IV(D), DAR Adm. Order No. 2, series 2009 Philippines (LBP) per Memorandum of Valuation (MOV) and
D. Land Valuation and Landowner subsequently deposited in their names, subject to their
Compensation submission of the requirements for payment. ATESCc
1. The compensation for lands covered under R.A. No. When the LO later accepts the original value or as
9700 shall be: a) the amount determined in accordance with recomputed by the LBP based on existing valuation guidelines,
Page 3 of 6 | Agrarial Law and Social Legislation Notes Weeks 4-5 | amgisidro

mere filing of a manifestation by the LO as regards the with the administrative orders and other issuances of the
acceptance of the original value or a joint manifestation by the Secretary of the DAR and the LBP.
LO and the LBP on the recomputed value with the DAR
SECTION 2. By Whom Conducted. The
Adjudication Board (DARAB) shall automatically terminate the
preliminary proceedings of land valuation for the purpose of
just compensation case pending thereat.
the determination of just compensation for its acquisition
4. Landowners, other than banks and financial shall be conducted: ICTaEH
institutions, who voluntarily offer their lands for sale, shall be
a. by the PARAD when the initial land
entitled to an additional five percent (5%) cash payment.
valuation of the Land Bank of the Philippines (LBP) is less
5. For landholdings which were conveyed after the than Ten Million Pesos (PhP10,000,000.00);
effectivity of R.A. No. 6657, the LBP shall consider the
b. by the RARAD when the said valuation
transferor as the payee.
is Ten Million Pesos and above but less than Fifty Million
However, payment must be released to the LO- Pesos (PhP50,000,000.00); and
transferee if the LO-transferor issues a Special Power of
c. by the Board when the said valuation is
Attorney (SPA) or Deed of Assignment in favor of the former.
Fifty Million Pesos (PhP50,000,000.00) and above.
6. In the determination of the Annual Gross Production
In the event of non-availability, inhibition or
(AGP), Selling Price (SP) and Cost of Operation (CO) to be
disqualification of a designated PARAD in the locality, the
used in the land valuation, the audited financial statement filed
RARAD concerned may conduct preliminary proceedings of
with the Bureau of Internal Revenue (BIR) shall be obtained by
land valuation notwithstanding that the jurisdictional amount
the DARMO from the LO fifteen (15) days prior to the date of
is less than Ten (10) Million Pesos.
field investigation. If the landowner fails to submit the same,
the DAR and LBP may adopt applicable industry data or, in the On account of non-availability, inhibition or
absence thereof, conduct an industry study on the specific disqualification of the RARAD concerned, the Board may
crop. conduct the preliminary proceedings of land valuation or
designate the same to an Adjudicator from among the
7. Small portions or patches within the covered
PARADs in the region.
landholdings which are determined to be less productive than
the bigger portion during the conduct of joint field investigation SECTION 3. Order for Submission of
shall be valued based on the current use of the adjacent Evidence, Position Papers, and Notice of Hearing. Upon
portions, provided that said small portions or patches shall not receipt of the Claim Folder (CF) containing all the pertinent
exceed 10% of the productive area. documents, the Board/Adjudicator shall issue an order:
Likewise, small portions or patches of landholdings a. to the landowner, the LBP, the DAR
above 18 percent slope, undeveloped and of no use to the officials concerned, the farmer-beneficiaries and other
landowner shall be valued as idle provided it shall not exceed interested parties, that they may examine the claim folder in
10% of the covered landholding. the Adjudicator's possession and to submit evidence,
pertinent documents, and their respective position papers
and affidavits within thirty (30) days from receipt of the order;
Land Bank of the Philippines vs. Natividad and
G.R. No. 127198, May 16, 2005 (458 SCRA 441)
b. notifying said parties of the date set for
hearing on the matter.
Thereafter, the Board/Adjudicator shall proceed to
Lubrica vs. Land Bank of the Philippines make an administrative determination of just compensation
G.R. No. 170220, November 20, 2006 (507 SCRA 415) following the procedure in ordinary cases.
The Order shall be served in the same manner as
the service of summons as provided for in Rule VII hereof.
Association of Small Landowners in the Philippines, Inc. SECTION 4. Failure to Comply with Above
vs. Secretary of Agrarian Reform Order. If the parties fail to submit the required documents
G.R. No. 79310, July 14, 1989 (175 SCRA 343) and their position papers, and/or to appear on the date set
for hearing, despite proper notice, the matter shall be
deemed submitted for resolution. ADETca
SECTION 5. When Resolution Deemed Final.
Land Bank of the Philippines vs. Court of Appeals Failure on the part of the aggrieved party to contest the
G.R. No. 118712, October 06, 1995 (249 SCRA 149) resolution of the Board/Adjudicator within the afore-cited
reglementary period provided shall be deemed a
concurrence by such party with the land valuation, hence
said valuation shall become final and executory.
Authority of the DARAB
over Land Valuation Cases SECTION 6. Filing of Original Action with the
RULE XIX Special Agrarian Court for Final Determination. The party
who disagrees with the decision of the Board/Adjudicator
Preliminary Determination of Just Compensation may contest the same by filing an original action with the
SECTION 1. Principal Role of Special Agrarian Court (SAC) having jurisdiction over the
Board/Adjudicator. The principal role of the subject property within fifteen (15) days from his receipt of
Board/Adjudicator in the summary administrative the Board/Adjudicator's decision.
proceedings for the preliminary determination of just Immediately upon filing with the SAC, the party
compensation is to determine whether the Land Bank of the shall file a Notice of Filing of Original Action with the
Philippines (LBP) and the Department of Agrarian Reform
(DAR) in their land valuation computations have complied
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Board/Adjudicator, together with a certified true copy of the productive as possible. The DAR shall adopt a system of
petition filed with the SAC. monitoring the record or performance of each beneficiary, so
that any beneficiary guilty of negligence or misuse of the land
Failure to file a Notice of Filing of Original Action or
or any support extended to him shall forfeit his right to continue
to submit a certified true copy of the petition shall render the
as such beneficiary. The DAR shall submit periodic reports on
decision of the Board/Adjudicator final and executory. Upon
the performance of the beneficiaries to the PARC.
receipt of the Notice of Filing of Original Action or certified
true copy of the petition filed with the SAC, no writ of If, due to the landowner's retention rights or to the number of
execution shall be issued by the Board/Adjudicator. tenants, lessees, or workers on the land, there is not enough
land to accommodate any or some of them, they may be
SECTION 7. Notice of Resolution. A copy of
granted ownership of other lands available for distribution
the resolution of the Board/Adjudicator shall be sent to the
under this Act, at the option of the beneficiaries.
landowner, the Land Bank of the Philippines, the potential
farmer beneficiaries, other interested parties, and their Farmers already in place and those not accommodated in the
counsels. distribution of privately-owned lands will be given preferential
rights in the distribution of lands from the public domain.
SECTION 8. Return of Claim Folder. The
Board/Adjudicator shall, within three (3) days from return of SEC. 22-A. Order of Priority. - A landholding of a landowner
the notice of the resolution pursuant to the preceding shall be distributed first to qualified beneficiaries under Section
section, transmit the Claim Folder (CF), together with the 22, subparagraphs (a) and (b) of that same landholding up to a
complete records thereof to the office of origin or the maximum of three (3) hectares each. Only when these
Provincial Agrarian Reform Officer (PARO) concerned, copy beneficiaries have all received three (3) hectares each, shall
furnished the LBP. the remaining portion of the landholding, if any, be distributed
to other beneficiaries under Section 22, subparagraphs (c), (d),
SECTION 9. Execution of Judgments for Just
(e), (f), and (g).
Compensation Which Have Become Final and Executory.
The Sheriff shall enforce a writ of execution of a final Section 23, R.A. No. 6657
judgment for compensation by demanding for the payment of
Section 23. Distribution Limit. No qualified beneficiary
the amount stated in the writ of execution in cash and bonds
may own more than three (3) hectares of agricultural land.
against the Agrarian Reform Fund in the custody of the LBP
in accordance with RA 6657, as amended, and the LBP shall Section 24, R.A. No. 6657
pay the same in accordance with the final judgment and the SEC. 24. Award to Beneficiaries. - The rights and
writ of execution within five (5) days from the time the
responsibilities of the beneficiaries shall commence from their
landowner accordingly executes and submits to the LBP the
receipt of a duly registered emancipation patent or certificate of
corresponding deed/s of transfer in favor of the government
land ownership award and their actual physical possession of
and surrenders the muniments of title to the property in
the awarded land. Such award shall be completed in not more
accordance with Section 16 (c) of RA 6657, as amended.
than one hundred eighty (180) days from the date of
LAND REDISTRIBUTION registration of the title in the name of the Republic of the
Philippines: Provided, That the emancipation patents, the
The awarding of lands to qualified beneficiaries once the
certificates of land ownership award, and other titles issued
property has been expropriated by the government, the
under any agrarian reform program shall be indefeasible and
payment by the beneficiaries to the government and the
imprescriptible after one (1) year from its registration with the
subsequent sale or transfer of the distributed land to third
Office of the Registry of Deeds, subject to the conditions,
parties after distribution
limitations and qualifications of this Act, the property
Section 22, R.A. No. 6657 registration decree, and other pertinent laws. The
emancipation patents or the certificates of land ownership
Section 22. Qualified Beneficiaries. The lands covered by
award being titles brought under the operation of the torrens
the CARP shall be distributed as much as possible to landless
system, are conferred with the same indefeasibility and
residents of the same barangay, or in the absence thereof,
security afforded to all titles under the said system, as provided
landless residents of the same municipality in the following
for by Presidential Decree No. 1529, as amended by Republic
order of priority:
Act No. 6732.
(a) agricultural lessees and share tenants;
It is the ministerial duty of the Registry of Deeds to register the
(b) regular farmworkers; title of the land in the name of the Republic of the Philippines,
after the Land Bank of the Philippines (LBP) has certified that
(c) seasonal farmworkers;
the necessary deposit in the name of the landowner
(d) other farmworkers; constituting full payment in cash or in bond with due notice to
(e) actual tillers or occupants of public lands; the landowner and the registration of the certificate of land
ownership award issued to the beneficiaries, and to cancel
(f) collectives or cooperatives of the above beneficiaries; and previous titles pertaining thereto.
(g) others directly working on the land. Identified and qualified agrarian reform beneficiaries, based on
Provided, however, that the children of landowners who are Section 22 of Republic Act No. 6657, as, amended, shall have
qualified under Section 6 of this Act shall be given preference usufructuary rights over the awarded land as soon as the DAR
in the distribution of the land of their parents: and provided, takes possession of such land, and such right shall not be
further, that actual tenant-tillers in the landholdings shall not be diminished even pending the awarding of the emancipation
ejected or removed therefrom. patent or the certificate of land ownership award.

Beneficiaries under Presidential Decree No. 27 who have All cases involving the cancellation of registered emancipation
culpably sold, disposed of, or abandoned their land are patents, certificates of land ownership award, and other titles
disqualified to become beneficiaries under this Program. issued under any agrarian reform program are within the
exclusive and original jurisdiction of the Secretary of the DAR.
A basic qualification of a beneficiary shall be his willingness,
aptitude, and ability to cultivate and make the land as Section 25, R.A. No. 6657
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SEC.25. Award Ceilings for Beneficiaries. - Beneficiaries shall With regard to existing collective certificates of land ownership
be awarded an area not exceeding three (3) hectares, which award, the DAR should immediately undertake the
may cover a contiguous tract of land or several parcels of land parcelization of said certificates of land ownership award,
cumulated up to the prescribed award limits. The determination particularly those that do not exhibit the conditions for
of the size of the land for distribution shall consider crop type, collective ownership outlined above. The DAR shall conduct a
,soil type, weather patterns and other pertinent variables or review and redocumentation of all the collective certificates of
factors which are deemed critical for the success of the land ownership award. The DAR shall prepare a prioritized list
beneficiaries. of certificates of land ownership award to be parcelized. The
parcelization shall commence immediately upon approval of
For purposes of this Act, a landless beneficiary is one who
this Act and shall not exceed a period of three (3) years. Only
owns less than three (3) hectares of agricultural land.
those existing certificates of land ownership award that are
Whenever appropriate, the DAR shall encourage the agrarian collectively farmed or are operated in an integrated manner
reform beneficiaries to form or join farmers' cooperatives for shall remain as collective.
purposes of affiliating with existing cooperative banks in their
Section 26, R.A. No. 6657
respective provinces or localities, as well as forming blocs of
agrarian reform beneficiaries, corporations, and partnerships SEC. 26. Payment by Beneficiaries. - Lands awarded pursuant
and joining other farmers' collective organizations, including to this Act shall be paid for by the beneficiaries to the LBP in
irrigators' associations: Provided, That the agrarian reform thirty (30) annual amortizations at six percent (6%) interest per
beneficiaries shall be assured of corresponding shares in the annum. The annual amortization shall start one (1) year from
corporation, seats in the board of directors, and an equitable the date of the certificate of land ownership award registration.
share in the profit. However, if the occupancy took place after the certificate of
land ownership award registration, the amortization shall start
In general, the land awarded to a farmer- beneficiary should be
one (1) year from actual occupancy. The payments for the first
in the form of an individual title, covering one (1)contiguous
three (3) years after the award shall be at reduced amounts as
tract or several parcels of land cumulated up to a maximum of
established by the PARC: Provided, That the first five (5)
three (3) hectares.
annual payments may not be more than five percent (5%) of
The beneficiaries may opt for collective ownership, such as co- the value of the annual gross production as established by the
workers or farmers cooperative or some other form of DAR. Should the scheduled annual payments after the fifth
collective organization and for the issuance of collective (5th) year exceed ten percent (10%) of the annual gross
ownership titles: Provided, That the total area that may be production and the failure to produce accordingly is not due to
awarded shall not exceed the total number of co-owners or the beneficiary's fault, the LBP shall reduce the interest rate
members of the cooperative or collective organization and/or reduce the principal obligation to make the repayment
multiplied by the award limit above prescribed, except in affordable.
meritorious cases as determined by the PARC.
The LBP shall have a lien by way of mortgage on the land
The conditions for the issuance of collective titles are as awarded to the beneficiary; and this mortgage may be
follows: foreclosed by the LBP for non-payment of an aggregate of
three (3) annual amortizations. The LBP shall advise the DAR
(a) The current farm management system of the land covered
of such proceedings and the latter shall subsequently award
by CARP will not be appropriate for individual farming of farm
the forfeited landholding to other qualified beneficiaries. A
beneficiary whose land, as provided herein, has been
(b) The farm labor system is specialized, where the foreclosed shall thereafter be permanently disqualified from
farmworkers are organized by functions and not by specific becoming a beneficiary under this Act.
parcels such as spraying, weeding, packing and other similar
Section 27, R.A. No. 6657
SEC. 27. Transferability of Awarded Lands. - Lands acquired
(c) The potential beneficiaries are currently not farming
by beneficiaries under this Act or other agrarian reform laws
individual parcels hut collectively work on large contiguous
areas; and shall not be sold, transferred or conveyed except through
hereditary succession, or to the government, or to the LBP, or
(d) The farm consists of multiple crops being farmed in an to other qualified beneficiaries through the DAR for a period of
integrated manner or includes non- crop production areas that ten (10) years: Provided, however, That the children or the
are necessary for the viability of farm operations, such as spouse of the transferor shall have a right to repurchase the
packing plants, storage areas, dikes, and other similar facilities land from the government or LBP within a period of two (2)
that cannot be subdivided or assigned to individual farmers. years. Due notice of the availability of the land shall be given
For idle and abandoned lands or underdeveloped agricultural by the LBP to the BARC of the barangay where the land is
lands to be covered by CARP, collective ownership shall be situated. The PARCCOM, as herein provided, shall, in turn, be
allowed only if the beneficiaries opt for it and there is a clear given due notice thereof by the BARC.
development plan that would require collective farming or The title of the land awarded under the agrarian reform must
integrated farm operations exhibiting the conditions described indicate that it is an emancipation patent or a certificate of land
above. Otherwise, the land awarded to a farmer-beneficiary ownership award and the subsequent transfer title must also
should be in the form of a n individual title, covering one (1) indicate that it is an emancipation patent or a certificate of land
contiguous tract or several parcels of land cumulated up to a ownership award.
maximum of three (3) hectares.
If the land has not yet been fully paid by the beneficiary, the
In case of collective ownership, title to the property shall be rights to the land may be transferred or conveyed, with prior
issued in the name of the co- owners or the cooperative or approval of the DAR, to any heir of the beneficiary or to any
collective organization as the case may be. If the certificates of other beneficiary who, as a condition for such transfer or
land ownership award are given to cooperatives then the conveyance, shall cultivate the land himself/herself. Failing
names of the beneficiaries must also be listed in the same compliance herewith, the land shall be transferred to the LBP
certificate of land ownership award. which shall give due notice of the availability of the land in the
manner specified in the immediately preceding paragraph.
Page 6 of 6 | Agrarial Law and Social Legislation Notes Weeks 4-5 | amgisidro

In the event of such transfer to the LBP, the latter shall

compensate the beneficiary in one lump sum for the amounts
the latter has already paid, together with the value of
improvements he/she has made on the land.

Testate is ok provided he is a compulsory heir. A foreigner is a

compulsory heir.

If there is a tenancy relationship.there should be security of

tenure. What court will have jurisdiction over the dispute
between them.

Estribillo vs. Department of Agrarian Reform

G.R. No. 159674, June 30, 2006 (494 SCRA 218)