AN OVERVIEW OF

LAND MANAGEMENT
IN THE PHILIPPINES

Asteya Santiago

August 1994

UMP – Asia Occasional Paper No. 9

The UMP – Asia Occasional Papers are published periodically by the Urban Management
Programme Regional Office for Asia – Pacific (UMP – Asia) with funding support from UNDP
through the Urban Management Programme for Asia – Pacific (UMPAP).

The findings, interpretations, and conclusions expressed in these papers are entirely those of
the author(s) and should not be attributed in any manner to UMP – Asia and to its affiliated
organizations. UMP – Asia does not guarantee the accuracy of the data included in these
publications and accepts no responsibility whatsoever for any consequence of their use. UMP
– Asia encourages dissemination of its work and will give permission to reproduce portions of
the Occasional Papers when the reproduction is for non – commercial purposes and proper
acknowledgement of the author(s) and UMP – Asia is made.

ACKNOWLEDGEMENT

Prof. Asteya Santiago received her Bachelor
and a Masters in Town & Country Planning
finalizing her PhD major in Urban & Regional
Prof. Santiago is presently a Professor at
University of the Philippines.
of Laws from the University of the Philippines
from the Sydney University, Australia. She is
Planning at the University of Sydney, Australia.
the School of Urban and Regional Planning,

Prof. Asteya Santiago submitted this paper originally to the UMP regional workshop in
October 1992 to launch the UMP regional programme for Asia and the Pacific and to organize
the UMP-Asia Regional Panel of Experts. Since then, she has been an active member of the
Panel.

1
 OVERVIEW PAPER ON LAND MANAGEMENT
IN THE PHILIPPINES

by
Prof. Asteya Santiago

BACKGROUND : For the first time in its relatively

CONSTITUTIONAL AND LEGAL long constitutional history, the 1986
Philippine Constitution devotes one major
FRAMEWORK section on urban land management which
it denominated as “Urban Land Reform
The authority for land
and Housing”. The characteristics
management activities in the Philippines
impressed on this major program of the
rests on explicit Constitutional and Legal
Government by the Philippine Constitution
provisions. Policy objectives dealing with
reveals the following policy thrusts:
the classification, acquisition, disposition
and development of the country’s land
First, Urban land reform shall be
resources are firmly recorded in an almost
a long-term and continuing programme
exhaustive list of legislation which had
and shall have as its prime objective the
evolved in the past four decades or so.
promotion of the common good;
These are, furthermore, complemented by
legal issuances emanating from the
Second, The programme shall
executive branch of the government.
focus on the provision of “affordable”
decent housing, basic services and
The country’s approach to and
adequate employment opportunities to
strategies in land management are
under-privileged and homeless citizens in
anchored not only on the traditional
urban and resettlements areas; and
property rights of individuals which are
covered by the constitutional mantle of
Third, The implementation of the
protection, but on the social justice
programme shall be reconciled with the
precept enshrined in the highest law of
rights of small property owners which shall
the land. To promote social justice, land
be respected. (Article XIII, Section 9 on
as property is placed under State
Urban Land Reform and Housing Act)
regulation, affecting its various aspects
such as acquisition, ownership, use, and
disposition (Article XIII, Section I on Social
Justice and Human Rights).
Hand in hand with the keen
While Urban Land Reform, both as
concern shown by the constitution for
a constitutional mandate and as a distinct
urban land is its obvious pre-occupation
legislative concern, are regarded as
with its counterpart resources in the rest
relatively of recent vintage, they should, in
of the country. On top of the list are lands
fact, be properly regarded as milestone
of the public domain which it classifies
outputs of incremental efforts that have
into agricultural, forest or timber, mineral
been unleashed several decades ago.
lands and national parks. Only agricultural
lands are allowed to be alienated, for

2
which purpose, the government is
mandated to classify them by legislation.
In the determination of the size of lands of
the public domain which may be acquired,
developed, held or leased, including the
appropriate conditions therefore, the
requirements of agrarian reform,
conservation, ecology, and development
are directed to be taken into account.
(Article XII, Section 3).
The legislative body is furthermore
constitutionally directed to legislate the
limits and boundaries on the ground of
forest lands and national parks. After
such legal prescription, these valuable
land resources shall be conserved and
may only be increased or diminished by
the issuance of another legislation.
(Article XII, Section 4).
In the disposition or utilization of
other resources, including lands of the
public domain under lease or concession
suitable to agricultural, the State are
required whenever applicable, to be
guided by the principles of agrarian reform
or stewardship.
Land resources, including as they
do, water, communal marine and fishing
resources, the Constitution likewise covers
them and adopts as a State policy their
protection, development and conservation
(Article XIII, Section 7 on Agrarian and
Natural Resources Reform).
LAND MANAGEMENT SYSTEM
A. Basic Framework of Land
Management
Land management encompasses various
aspects which interact with and influence
each other. They are briefly described
herein.
1. Land Tenure
Land tenure for urban and rural areas is
either of two types – absolute ownership
(known also as fee simple or freehold) and
less than absolute, i.e., subject to certain
limitations, qualifications or restrictions.
The most common forms are leasehold
(with various terms, time period, and
conditions) and usufruct, where
possession or occupation is with or
without rental, respectively.
2. Land Ownership and Transfer
Ownership of land is a privilege that
pertains only to individuals and
corporations or associations legally
qualified to acquire or hold lands of the
public domain. The exception to this rule
is where the transfer or conveyance is by
hereditary succession. Only natural born
citizens of the Philippines may acquire
lands in the country, although those who
have lost their Philippine citizenship may,
subject to limitations provided by law, still
be a transferee of private lands. One such
law referred to is Batas Pambansa 80
where former natural born citizens who
have since renounced their Filipino
citizenship may acquire residential lands
for retirement purposes for as long as they
do not exceed 1000 square meters in both
urban and rural areas. It is projected that
other legislations may be promulgated in
the future, providing for other
circumstances where land ownership
rights may be acquired by former natural
born Filipinos.
3. Land Titling and Registration
The two modes of registration of titles to
land are the Torrens System and the
system of recording unregistered lands.
Under the torrens system, land
conveyance is effected through
registration in the Registry of Land Titles
and Deeds which has an office in every
city and municipality.
4. Land Sub-Division
The sub-division of titled land may be
done under the Property Registration
decree (PD 1529, June 1978) and under
the Sub-Division and Condominium Buyers
Protected decree (PD 1957, July 1976).
Sub-Division is usually undertaken for the
purpose of selling the divided lots as part
of a sub-division project, or simply for
dividing ownership and possession of the
property.
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 The power to approve sub-division plans
was recently devolved to cities and
municipalities by the Local Government
Code (Art 447, para.2(x), Article 459,
para.2(x)).
B. Government Land Management
Activities
Land management activities of the
government cover a whole range of
activities which include land use allocation;
land reclassification, acquisition and
disposition; and land conservation or
development undertaken by itself or by
authorization of private individuals or
groups, and land taxation and regulation.
1. Land Use Allocation
Land use allocation of both government-
held or privately-owned properties is
undertaken by local government units as
authorized by the Local government Code
of 1991 (Republic Act 7160). More
specifically, these authorized
responsibilities are as follows:
a) Municipalities and component
cities shall adopt a comprehensive land
use plan in coordination with the approved
provincial comprehensive land use plan.
In consonance thereto, they shall also
enact integrated zoning ordinances.
(Section 447, para 2 (vii))
b) Highly urbanized and non-
component cities shall adopt a local legislative body concerned.
comprehensive land use plan for the city
and enact an integrated zoning ordinance
in consonance thereto. It is assumed that
this need not have reference to a
provincial land use plan since these local
government units are considered
independent of the province where they
are located.
Since the exercise of these powers is
required to be in accordance with existing
laws and rules and regulations, land use
allocation activities are assumed to be
subject to the standard setting, review of,
and conflict resolution powers of the
Housing and Land use Regulatory Board
(HLURB).
The comprehensive land use plans are
required to be the primary and dominant
bases for the future use of land resources,
with the caveat that the requirements of
food production, human settlements and
industrial expansion shall be considered in
such plan.
2. Land Conversion or Reclassification
Land conversion from agricultural to other
uses is effected through the power of
reclassification of lands by local
government units, exercised by passing an
ordinance, after conducting appropriate
public hearings. This power of
reclassification shall be limited to a range
of from 5% to 15% of the total
agricultural land area at the time of the
passage of the ordinance, depending on
whether the LGU is a highly urbanized and
independent component city (15%);
component city or 1st to 3rd class
municipality (10%); or fourth to sixth class
municipality (5%). Agricultural lands
already distributed to land reform
beneficiaries under the Comprehensive
Agrarian Land Reform Law are not
covered by these provisions. (RA 7160,
Sect.20)
Such reclassification shall be allowed only
: a) where the land has ceased to be
economically feasible and sound for
agricultural purposes; or b) where the land
shall have substantially greater economic
value for residential, commercial or
industrial purposes as determined by the
3. Land Acquisition
To increase the pool of its land resources,
the Urban Development and Housing Act
of 1992 (RA 7279) provides that the
modes of acquiring lands shall include land
swapping, land assembly or consolidation,
land banking, donation to the
Government, joint-venture agreement,
negotiated purchase and expropriation.
Expropriation or eminent domain is
resorted to only after other modes of
acquisition shall have been exhausted, and
parcels of lands owned by small property
owners are exempted from expropriation.
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 Small property owners are defined by the
law as those whose only real property
consists of residential lands not exceeding
300 square meters in highly urbanized
cities and 800 square meters in other
urban areas. (RA 7279, Section 3, para.q)
Eminent domain may be exercised for
public uses or purpose, or welfare, for the
benefit of the poor and the landless, upon
payment of just compensation.
Immediate possession of the property may
be effected upon the deposit with the
proper court of at least 15% of the fair
market value of the property based on the
current tax declaration of the property to
be expropriated. The amount to be paid
for the property expropriated shall be
determined by the proper court, based on
the fair market value at the time of the
taking of the property (RA 7160, Section
19).
All the other modes of acquisition that
need to have been exhausted before
resorting to expropriation are explicitly
defined in the Urban Development and
Housing Act of 1992 or RA 7279 as
follows:
a) Land Assembly or Consolidation. This
refers to the acquisition of lots of varying
ownership through purchase or
expropriation, for the purpose of planned
and rational development and socialized
housing programmes without individual
property restrictions.
b) Land Banking. This is the acquisition of
land at values based on existing use, in
advance of actual need to promote
planned development and socialized
housing programmes.
c) Land Swapping. This refers to the
acquisition by exchanging land for another
piece of land of equal value, or for shares
of stock in a government or quasi-
government corporation whose book value
is of equal value to the land being
exchanged, for the purpose of planned
and rational development and the
provision for socialized housing. In land
swapping, land values are determined
based on land classification, market value
and assessed value taken from existing tax
declarations. More valuable land owned
by private persons may, however, be
exchanged with less valuable lands to
carry out the objectives of RA 7279.
Another aspect of public land acquisition is
the setting aside of public lands for public
projects through presidential proclamation.
The Administrative Code of 1987 (EO 292)
empowers the President to reserve for
settlement or public use any of the lands
of the public or private domain.
4. Land Disposition
Depending on the nature and occupancy
status of the land, the various modes of
land disposal used by the Department of
Environment and Natural Resources are as
follows:
a) Sales Patent. This involves the
sale of lands to individuals, subject to
conditions, aimed at minimizing
speculation and encouraging development.
Done through public auction, the land is
awarded to the highest bidder subject to
the condition that the awardee shall enter,
break and cultivate at least 1/5 of the land
within 5 years from the date of the award.
b) Homestead Patent. Introduced
by the American colonizers to expedite
settlement of the undeveloped areas in
the country, it involves gratuitously
conveying to individuals, parcels of land
subject to conditions requiring residence in
and cultivation of the land within a certain
timeframe to ensure its development.
Upon the satisfaction of the conditions,
the patent or conveyance eventually
matures into a full title.
c) Free Patent. An administrative
process under the Public Land Act by
which titles are “perfected” through the
awarding of a free patent. This is
intended to benefit those who could not
establish sufficient legal basis for title, but
had occupied the land for the length of
time prescribed by law. This process is
available only to native born Filipinos.
5
d) Voluntary Confirmation. This
provides an opportunity for those who
have claims to title to present their case
voluntarily before the courts which do not
award the title but, as the name suggests,
merely confirms it on the basis of the
evidence presented.
e) Compulsory Confirmation.
Due to the unsuccessful orderly conversion
of lands with uncertain status (for various
reasons such as ignorance of the law,
costs, etc.) the Cadastral Act was passed
in 1913 where the government declared
specific cities or municipalities to be
subject to comprehensive cadastral
survey. All lands in the local government
unit were included in the survey and their1.
claimants identified, in the process.
5. Land Development and its
Regulation
Land development activities are governed
by both national laws and local
ordinances. Policy and standard setting,
review of local development plans and
zoning ordinances and resolution of land
use conflicts are vested in a national
agency, the Housing and Land Use
Regulatory Board (Executive Order 648).2.
The preparation of local development
plans, land use plans and zoning
ordinances, on the other hand, are vested
in the cities and municipalities. Except
those for non-component cities and
municipalities and highly urbanized cities,
these land use plans are required to
conform with the comprehensive provincial
land use plans.
Cities and municipalities are also
authorized, subject to national laws to
process and approve sub-division plans for
residential, commercial or industrial and
other development purposes. (Article 447,
para.2(vii) and Article 458, para.2(vii),
Local Government Code.)
6. Conservation of Lands
Land conservation is as much a part of
land management as land development
and its regulation. Conservation of lands3.
is effected through the declaration of
parks and open spaces, green belts and
buffer zones, including the preservation of
historical and cultural landmarks, with or
without improvements. The Department
of Agriculture has recently completed a
plan called Integrated Protected Area
System (IPAS) which seeks to protect
prime agricultural lands all over the
country from indiscriminate conversion to
other uses. The rationale is the need to
ensure food security and to maintain
ecological balance.
INSTITUTIONAL
ARRANGEMENTS
Role of the Government
Much of the land management activities in
the Philippines are undertaken by national
departments and line agencies whose
functions are, in some cases, overlapping
and duplicative with each other. Local
governments have only recently been
drawn into the activity but their state of
preparedness and competence to assume
the task remains in question.
Actual Performance
The performance of line agencies leaves
much room for improvement although no
studies have yet been undertaken to pin-
point with certainty the areas of
weaknesses. Cursory studies and limited
information reveal, however, the need for
consolidating certain land classification,
disposition and land development
functions in one centralized agency or, at
least the more effective synchronization of
these functions.
Local governments, on the other hand,
have very nominal participation in land
management activities except in the
formulation and implementation of land
use plans and the enforcement of zoning
ordinances. The new Local Government
Code provides for improvement of this
situation.
Shift of Approach
The traditional approach of most land
agencies of focusing only on their land
6
 disposition function without concern for
the ultimate use of these resources have,
since a couple of years ago, been given up
for a more improved strategy. This
strategy is reflected in the change of name
that they have undergone. For instance,
the Bureau of Lands has become the
Bureau of Land Management while the
Bureau of Forestry has become the Bureau
of Forestry Management. The
Metropolitan Manila Commission (now
Metropolitan Manila Authority) has, for its
part, constituted its own Land
Management Office to show that its
concern goes beyond the mere regulation
of land development activities by the
private sector. It is equally interested in
monitoring the development and
improvements on the land to ensure that
they take place in accordance with the
Metro Manila Development Plan.
4. Role of the Private Sector and
Non-Government Agencies
The invaluable assistance and inputs of
both the private sector and the non-
government agencies is given official
recognition by no less than the highest law
of the land, the Philippine Constitution.
The Constitution adopts as State policies
the recognition of the indispensable role of
the private sector in national development
and the encouragement of non-
governmental, community-based or
sectoral organizations that promote the
welfare of the nation (Article II, Sections
20 and 23). A relatively recent
development, there is much that needs to
be learned about the more active and
meaningful participation of these two
groups.
CRITICAL ISSUES AND AREAS
FOR IMPROVEMENT
The following is a brief summary
and overview of critical issues affecting
land management which indirectly indicate
the areas for improvement.
• The need to faithfully translate and
operationalize broad constitutional and
policy objectives and precepts affecting
land management, which include the
following: the stewardship concept of
land; the treatment of land as valuable
and irreplaceable resource outside of the
usual commerce of man; land as an
equalizer and instrument for promoting
wealth re-distribution and equity
objectives of national development.
• The imperative of streamlining the
operation of institutions involved in
the various aspects of land
management and establishing the
needed functional linkages.
• The need to identify the areas that
should be included in a capability and
confidence building programme
(technical, financial, legal) to be
implemented in government
institutions, local governments, private
sector and NGO’s for their effective
performance of land management
functions.
• The requirement of identifying other
land tenure options responsive to the
needs of the urban poor and other
disadvantaged sectors to ensure their
more effective access to land, more
particularly for housing purposes and
support urban uses.
• The importance of distilling valuable
lessons from the country’s experience
in the operation of the informal land
market and how they can improve the
operation of the formal land market;
and the need to establish the linkages
that should be developed between the
two markets.
• The urgency for establishing and
putting in place a more effective and
up-to-date database system for
purposes of improving the various
aspects of land management such as
land titling and registration; land
tenure and ownership; land availability
and means of access to them,
particularly by the urban poor and
other disadvantaged sectors.
• The need to improve existing land
management policies and to
promulgate complementary legal
measures and other land management
related policies to promote the desired
objectives.
7
References

Chowdhury, A.I. 1984. Land for Human

Settlements in Bangladesh.
ESCAP/UNIDO, Bangkok.

Government of Bangladesh, 1983, Report

of the Land Reform Committee, 1982.
Dhaka.

Haque, M. Mokammel, 1992. “An

Overview of Urban Land Management in
Bangladesh”, in N. Islam and A.I.
Chowdhury (editors), 1992.

Islam, Nazrul. 1992. Dhaka Metropolitan

Fringe Land and Housing Development.
Dhaka: Dhaka City Museum.

Islam, N. and A.I. Chowdhury, 1992.

Urban Land Management in Bangladesh.
Dhaka: Ministry of Land, Government of
Bangladesh (see Recommendations and
other papers in this volume).

Task Force of Urbanization, Planning

Commission, Government of Bangladesh
1991. Report of the Task Force on Social
Implications of Urbanization.