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Preface

CARL (R.A. 6657, as amended) and

Related Laws FUNDAMENTAL DISTINCTIONS AMONG TENANCY, TENANT
History and Evolution of Major EMANCIPATION DECREE AND CARP
Agrarian Reform Laws

Issuances
LEASEHOLD TENANCY TENANT EMANCIPATION DECREE COMPREHENSIVE A
Philippine Constitution
REFORM PROG
Laws, Statutes and Presidential
1. Presidential Proclama
Issuances
Instituting a Co
I — LEGAL BASIS: 1. Presidential Decree No. 27 –
Supreme Court Decisions and Agrarian Reform P
Issuances Tenants'
1. Republic Act No. 3844 — Agricultural 22, 1987)
Emancipation Decree
Court of Appeals Decisions Land Reform Code (August 8, 1963)
(October 21, 1972) 2. Republic Act No. 66
2. Republic Act No. 6389 — Code of instituting a Co
Implementing Rules and Regulations 2. Letter of Instructions No. 474-
Agrarian Reform (September 10, 1971) Agrarian Reform
PLACING UNDER OLT
Issuances from Other Government Promote Social
Agencies 3. Presidential Decree No. 1425 — TENANTED RICE/CORN
Industrialization, p
Amending Presidential Decree No. LANDS SEVEN HECTARES
Handbooks and Publications Mechanism
1040 by Strengthening the Prohibition OR LESS IN AREAS UNDER
Implementation
Articles and Journals against Agricultural Share Tenancy and CERTAIN CONDITIONS
purposes. (June 15
Providing Penalties for Violation thereof. (OCTOBER 21, 1976)
Forms and Templates (June 10, 1978) 1. The power o
Aquino to prom
Lecture Materials 4. Section 12, Republic Act No. 6657 —
1. Presidential Decree No. 27 was No. 131 and E
Comprehensive Agrarian Reform Law
Login assumed to be constitutional and 229 was
of 1988.
and upheld as part and under Section
II — JURISPRUDENCE ON CONSTITUTIO- parcel of the law of the Transitory Pro
NALITY land in De Chavez vs. Zobel, 1987 Constituti
155 SCRA 26; Gonzales vs.
1. Security of Tenure — Primero vs. CAR, All assault
Estrella, 91 SCRA 294 (1979)
101 Phil. 675 (1957); Pineda vs. de Guzman, validity of RA 6
and Association of Small
21 SCRA 1450 (1967). aside. (Associa
Landowners in the Philippines
Landowners
III – COVERAGE OR SCOPE Inc. vs. Secretary of Agrarian
Philippines,
Reform, 175 SCRA 342 (1989)
Agricultural Leasehold shall apply to all Secretary o
tenanted agricultural lands, including but not 2. Letter of Instructions No. 474; Reform, 175
limited to the following — Constitutionality was upheld in (1989)
Zurbano vs. Estrella, 137
A. Retained areas under R.A. 6657 and COVERAGE OF CARL 1
SCRA 333 (1989)
P.D. 27;
Scope
The REQUISITES FOR COVERAGE
B. Tenanted Agricultural Lands not yet All PUBLIC and PRIVAT
under OPERATION LAND
acquired for distribution under CARP Lands regardless
TRANSFER (OLT) program are the
pursuant to RA 6657; arrangement and
following:
produced, including l
C. All tenanted areas under Section 10 of
1. The land must be DEVOTED to public domain s
RA 6657 which may be covered by this
RICE or CORN crops; and agriculture. (1st par.,
Order. (Administrative Order No. 4, Series
6657)
of 1989) 2. There must be a system of
SHARE CROP or LEASE Specific lands
TENANCY obtaining therein. CARP.
IV — AREA OF COVERAGE
If either of these requisites is a. All alienable and
It shall be unlawful for the tenant, ABSENT, the land is NOT lands of the publi
whenever the area of his holding is five COVERED under OLT. Hence, a devoted to or su
hectares or more, or is of sufficient size to landowner NEED NOT APPLY FOR agriculture
make him and the members of his RETENTION, where his ownership b. All lands of t
immediate farm household fully occupied in over the entire landholding domain in exces

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its cultivation, to CONTRACT TO WORK at is INTACT and UNDISTURBED. specific limits
the same time on TWO OR MORE (Eudosia Daez and/or Her Heirs determined by Co
SEPARATE HOLDINGS belonging todifferent represented by Edriano D. Daez vs. the preceding para
landholders under any system of the Hon. CA, et al., 325 SCRA 857). c. All other lands own
tenancy WITHOUT THE KNOWLEDGE AND Government devo
RULES ON COVERAGE OF
CONSENT of the landholder with whom he first suitable for agricultu
LANDS UNDER PD 27.
entered into tenancy relationship. (Par. 1, Sec. d. All private lands
24, Republic Act No. 1199) Rule 1 or suitable for
regardless o
V — EXEMPTION OR EXCLUSION FROM Landed estates or
agricultural produ
COVERAGE landholdings larger than 24
or that can b
hectares (LOI 46 (December
Absence of any of the six (6) Essential thereon.
7, 1972) - covered
Elements of Tenancy Relationship.
by OLT and there is no
PRIORITIES — T
Essential Elements of Tenancy retention to the landowner.
coordination with the PAR
Relationship:
Rule 2 and program the acq
1. The parties are the landholder and distribution of all agric
Landholding of 24 hectares or
thetenant; through a period of ten (1
less (but above 7 hectares
the effectivity of this Act.
2. The subject is agricultural land; (LOI 46 (ibid) and LOI 227
acquired and distribute
(November 16, 1974) covered
3. There is consent;
by OLT but landowner is Phase One:
4. The purpose is agricultural production; entitled to retention except
1. Rice and corn land
if LOI 474 (October 21,
5. There is personal cultivation; 2. Idle and abandone
1976) applies.
6. There is sharing of harvest or payment of 3. Private lands
Rule 3
rentals. (Caballes vs. DAR, 168 SCRA offeredby the
247; Qua vs. Court of Appeals, 198 SCRA Landholding of seven (7) agrarian reform;
247.) hectares or less
4. Foreclosed land by
is EXEMPTED from OLT
VI — RETENTION financial institutions
except if LOI 474 is applicable
In Leasehold Tenancy, the Landowner or under the following 5. Land acquired by the
agricultural lessor RETAIN OWNERSHIPof the circumstances: Commission o
subject landholding. Government; and
Landowner owns other
The agricultural land of more 6. All other lands ow
landowner EXERCISES the ATTRIBUTES OF than seven hectares in Government devo
OWNERSHIP. Under Art. 428 of the New Civil aggregate area, or he owns suitable for agricu
Code, the OWNER has the RIGHT TO COMMERCIAL, INDUSTRIAL,
These
DISPOSE OF a thing without other RESIDENTIAL or URBAN
be acquired
limitation than those imposed by law. As LAND where he derives an
distributed imme
an incident of ownership. Therefore, there is adequate income, DAR Memo,
effectivity of the A
nothing to prevent a landowner from Circular No. 11, s. 1978 (April
implementation to b
DONATING his NAKED TITLE TO THE LAND. 21, 1978) Adequate income is
within a period of n
However, the new owner MUST RESPECT at least FIVE THOUSAND
four (4) years. (Sec
THE RIGHT OF THE TENANT. (P5000.00) PESOS per annum.
6657)
(Gross Income).
The agricultural leasehold relation under
Phase Two:
this Code shall not be extinguished by MERE Lands not covered by Presidential
EXPIRATION OF THE TERM OR PERIOD in a Decree No. 27. 1. All disposable a
leasehold contract nor by theSALE, public agricultural la
1. Private agricultural lands which
ALIENATION OR TRANSFER of the legal
are NOT PRIMARILY 2. All arable publi
possession of the landholding. In case the
DEVOTED TO RICE OR lands under agro-fo
agricultural lessor SELLS, ALIENATES, OR
CORN, or and agricultural le
TRANSFERS the legal possession of the
cultivated and plan
landholding, the PURCHASER OR 2. There is NO SYSTEM OF
in accordance with
TRANSFEREE thereof shall be subrogated to SHARE CROP OR LEASE
XIII of the Constituti
the rights and substituted to the TENANCY obtaining in the
obligations of the agricultural lessor. (see. 10, landholding. (Daez vs. CA, ibid) 3. All public agricultura
RA 3844) are open for new
* The REQUISITES for the exercise
and resettlement; a
VII — BENEFICIARIES by the landowner of his RIGHT OF
RETENTION are the following: 4. All private agricult
The beneficiaries under Republic Act No.
excess of fifty (50) h
1199, Republic Act No. 3844 as amended by 1. The land must be DEVOTED TO
Republic Act No. 6389 areSHARE-TENANT RICE OR CORN CROPS; These shall be
OR AGRICULTURAL LESSEES immediately upon the eff
2. There must be a system of
(TENANTS). Thus: Act, with the implemen
share-crop or lease tenancy
completed within a perio
“In the INTERPRETATION AND obtaining there.
than four (4) years.
ENFORCEMENT of this Act and other

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laws as well as of the stipulations between 3. The size of the landholding Phase Three:
the landholder and the tenant the MUST NOT EXCEED TWENTY
All private AGRICULTU
COURTS AND ADMINISTRATIVE FOUR (24) hectares provided
commencing
OFFICIALS SHALL RESOLVE ALL that at least seven (7) hectares
with LARGE landho
GRAVE DOUBTS IN FAVOR OF THE thereof are covered lands and
proceeding to MEDIUM
TENANT. (Sec. 56, Republic Act No. more than seven (7) hectares
landholdings under th
1199) of it consist of “other
schedules:
agricultural lands.” Daez vs.
VIII — AWARD CEILING
CA, Ibid) a) Landholdings
The share-tenant/ agricultural lessee who hectares up to 50
Right of Retention by Landowners
is already cultivating a landholding with an area begin on the four
under Presidential Decree No. 27.
of FIVE (5) HECTARES or more or effectivity of this A
Supplemental Guideline A.O. No. 04,
ofsufficient size to make him and member of completed within
Series of 1991).
his immediate farm household fully and,
occupied in its cultivation is prohibited to The policy statements are as
b) Landholdings
CONTRACT TO WORK at the same time to follows:
RETENTION LIMIT
two or more separate holdings belonging to
a. Landowners covered by PD 27 hectares, to begin
different landholders WITHOUT THE
are entitled to retain SEVEN year from effectivit
KNOWLEDGE AND CONSENT OF THE
hectares, except those whose and to be complete
LANDOWNER/AGRICULTURAL LESSOR
entire tenanted rice and corn years.
(Par. 1, Sec. 24, Republic Act No. 1199)
lands are subject to acquisition
LANDS NOT COVERED
IX — PAYMENT FOR THE COST OF THE and distribution under OLT.
LAND 1. Those which are no
AN OWNER MAY NOT
agriculture or thos
In the exercise of RIGHT OF PRE- RETAIN UNDER THE
classified as min
EMPTION by the agricultural lessee-tenant, he FOLLOWING CASES:
residential, com
must EITHER TENDER PAYMENT OF, OR
a) If he, as of October 21, industrial lands. (Se
PRESENT A CERTIFICATE FROM THE LBP
1972, owned more than 24 6657);
that it shall make payment under Section 80 of
hectares of tenanted rice
Republic Act No. 3844 (10% CASH and 90% in 2. Those which have be
or corn lands; or
six percent, tax free, redeemable bonds issued and approved
by the LBP.) If the landowner refuses to b) By virtue of LOI 474, if he, AGRICULTURAL p
accept TENDER or PRESENTMENT, the as of 21 October 1972, 15, 1988. (DOJ Op
agricultural lessee may CONSIGN it owns less than 24 S. 1990)
in COURT, (Sec. 11, Republic Act No. 3844 as hectares of tenanted rice
amended by Republic Act No. 6389. but additionally owns the 3. Those
following = are EXEMPT purs
The REDEMPTION PRICE shall be the
10, RA 6657.
REASONABLE PRICE OF THE LAND at the · Other agricultural
time of sale. (Sec. 12, Republic Act No. 3844 land of more than seven 4. Those
as amended by Republic Act No. 6389) hectares, whether are devoted t
tenanted or not, whether swine or livestock-

cultivated or not, and June 15, 1988 pu

X — TRANSFERABILITY OF
regardless of the income Supreme Court ru
derived therefrom; or Farms vs. The Hon
LANDHOLDING Agrarian Reform (19
· Land used for
1. Sale, Alienation or Transfer of the legal commercial, industrial, 5. Fishponds and p
possession of the landholding residential or other urban exempted pursuant
purposes, from which he 7881, and its
2. Extinguishment of Agricultural Leasehold
derives adequate income Administrative Or
Relations (Sec. 8, RA 3844)
to support himself and his Series of 1995;
A. ABANDONMENT of the landholding family.
6. Those which are ret
without the knowledge of the agricultural
b. Landowners who filed their landowners;
lessor. (Teodoro vs. Macaraeg, 27 SCRA 7
application for retention
(1969) To constitute abandonment there 7. Those lands or po
BEFORE 27 August 1985, the
must be an absolute relinquishment of the under the cover
deadline set by Administrative
premises of the tenant. This "overt act" 407 but found to b
Order No. 1, Series of 1985,
must be coupled with his intention to do so suitable for agr
may retain not more than
"which is carried into effect." (Philippine therefore could n
seven hectares of their
Labor and Social Legislation, Martin, 70 appropriate valuatio
landholding covered by PD 27
Ed. Pp. 405-406). Abandonment to validly as determined by D
regardless of whether or not
terminate tenancy relationship is 8. Those lands d
they complied with LOI Nos. 41,
characterized by: Presidential Procl
45, and 52.
certain uses
(a) an INTENT to ABANDON, and
Landowners who filed their agricultural.
(b) an OVERT ACT to carry out such application AFTER 27 August Rules and Procedures G
intention 1985 but complied with the Exercise of Retention
requirement of LOI No. 41, 45 Landowners and Award

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There must be, therefore, NO and 52 shall likewise be under Sec. 6 of RA 6657
ANIMUS REVERTENDI on the part of entitled to such a seven- Series of 1990; and A.
the tenant.(Labor, Agrarian and Social hectare retention area. 2003)
Legislation, Montemayor, 2nd Ed.,
However, landowners who A. Landowners whose
1968, pp. 54-55)
filed their application for are covered
B. VOLUNTARY SURRENDER of the retention AFTER the 27 August may retain an a
landholding by the agricultural lessee, 1985 deadline and DID NOT (5) hectares.
written notice of which shall be served COMPLY with the requirements
In addition, e
three months in advance (Nisnisan, et al., of LOI Nos. 41, 45, and 52 shall
children, (legitimate
vs. CA, 294 SCRA 173 (1998). only be entitled to a maximum
or adopted, may b
of five (5) hectares as
As a mode of extinguishing tenancy three (3)
retention area.
relationship it connotes a decision in the as P
part of the tenant to return the possession c. A landowner WHO HAS DIED BENEFICIARY prov
of the landholding and relinquish his right must have manifested during
1. That the child
as tenant thereon uninfluenced by any his lifetime his intention to
15 years of age
compelling factor, coming particularly from exercise his right of retention
1988 (RA 665
the landholder. For surrender to be valid, prior to 23 AUGUST
and
there must be (a) an intention to abandon, 1990 (The finality of the
and (b) an external act or an omission to Supreme Court decision in the 2. The child was ac
act, by which such intention is carried out case "Association of Small the land
into effect. When a tenant voluntarily Landowners of the Philippines, managing the f
yields the land, he terminates the tenancy Inc. et al. vs. Honorable June 15, 1988
relationship by his unilateral act. (Anacleto Secretary of Agrarian Reform) the application
Inson vs. Planas de Asis, et al., CA GR toallow his heirs to now and/or at th
No. Sp-01769, October 11, 1974) exercise such right under these acquisition of th
Guidelines. Said heirs must CARP.
NOTE: SUBLEASING by the agricultural
show proof of the original
lessee is also a ground for the extinguishments Retention of husband a
landowner's intention.
of Agricultural Leasehold Relations. (Par. 2,
1. For marriages covered
Sec. 27, Republic Act No. 3844) The heirs may also
Civil Code, the
exercise the original
XI — EVIDENCE OF RIGHT/TITLE OVER owns only
landowner's right of retention if
THE LANDHOLDING. PROPERTIES may
they can prove that the
of five (5) hectares
AGRICULTURAL LEASE-HOLD CONTRACT decedent HAD NO
is an agree
IN GENERAL. — KNOWLEDGE of OLT
the JUDICIAL SEPA
coverage over the subject
— The agricultural lessor and PROPERTIES. How
property.
theagricultural lessee shall or both of them ar
be FREE to ENTERinto any kind The BENEFICIARIES of in their respective
of TERMS, CONDITIONS orSTIPULATIONS in Presidential Decree No. 27 are and/or parapherna
a LEASEHOLD CONTRACT as long as TENANT-FARMERS, thus: retain not more t
they are not contrary to LAW, MORALS OR hectares each
“This shall apply to
PUBLIC POLICY. (Sec. 15, Republic Act No. respective landhol
TENANT-FARMERS of
3844). case, however, sh
PRIVATE AGRICULTURAL
retention of
Except in case LANDS PRIMARILY DEVOTED
couple exceed 10 h
of mistake, violence,intimidation, undue TO RICE OR CORN under a
influence, or fraud, an AGRICULTURAL SYSTEM OF SHARE-CROP or 2. For marriages
CONTRACT reduced in writing and LEASE-TENANCY, whether the New Family C
registered as hereinafter provided SHALL BE classified as landed estate or 3, 1988), a husb
CONCLUSIVE BETWEEN THE not. (Par. 5, Presidential capital property a
CONTRACTING PARTIES, if not Decree No. 27) owning
DENOUNCED OR IMPUGNED WITHIN property may reta
THIRTY DAYS AFTER REGISTRATION. (Sec. “The tenant-farmers, than five (5) he
17, Republic Act No. 3844) whether in land classified as provided they
landed estate or not shall be JUDICIAL SPER
XII — MODES OF TRANSFER OF THE LAND
DEEMED OWNER of a portion PROPERTIES prio
TO THE TENANT OR BENEFICIARY
constituting a family-size farm the marriage. In th
The landowner-agricultural lessor can of FIVE (5) hectares if not such an agreement
FREELY AND VOLUNTARILY TRANSFER the irrigated and THREE (3) (capital, paraph
landholding to the agricultural lessor by way HECTARES IF conjugal) shall be
of: IRRIGATED. (Par. 6, held in absolute com
Presidential Decree No. 27)
1. Sale QUALIFIED BENEFICIA

2. Donation The tenant shall pay for THE lands covered by the CA
distributed as much as
COST OF THE LAND,
3. Succession — the agricultural lessee as landless residents of
includinginterest of six (6)
DEVISEE to the testator’s free portion in barangay, or in the abs
percent per annum in
the will. landless residents of
FIFTEEN (15) YEARS of

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However, the limitation imposed by law on fifteen (15) equal annual municipality in the follow
his right to acquire must be observed, i.e. amortizations. priority:
Legal prohibition on the acquisition of property.
a) agricultural lessees
NOTE: The period is extended to
By operation of law, the agricultural-lessee tenants;
twenty (20) years equal annual
can acquire ownership of the subject
amortizations under Sec. 6, E.O. 228 b) regular farmworkers;
landholding by the exercise of the following
of July 17, 1987 by Pres. Corazon C.
rights. c) seasonal farmworker
Aquino.
1. Right of Pre-emption; and d) other farmworkers;
The TITLE to the land
2. Right of Redemption owned by the tenant shall not e) actual tillers or occup
be transferable except BY lands;
XIII — CONSIDERATION FOR THE USE OF
HEREDITARY SUCCESSION
VALUE OF THE LAND. f) collectives or cooper
or TO THE GOVERNMENT in
above beneficiaries
Consideration for the Lease of accordance with this Decree,
Agricultural lands: the Code of Agrarian Reform g) others directly wo
and other existing laws and land.
1. Not more than 25 per centum of the
regulations.
average normal harvest during the three (Par. 1, Sec. 22, RA
NOTE: Sec. 6, EO 228 provides,
agricultural years immediately preceding
"Ownership of lands acquired by The children of landow
the date the leasehold was established.
the farmer-beneficiary may be qualified under Sec. 6 of
2. Deductible items: transferred after full payment of be given preference in th
amortizations." of the land of their p
a. Seedlings
further, that actual tenan
The EMANCIPATION
b. Cost of Harvesting landholding shall be
PATENT awarded to the
removed therefrom. (Pa
c. Cost of Threshing TENANT-BENEFICIARY
RA 6657)
CREATES a VESTED RIGHT
d. Cost of Loading
OF ABSOLUTE “Distribution Lim
e. Cost of Hauling OWNERSHIP in the qualified beneficiary ma
landholding – "a right which has than three (3) hectares o
f. Cost of Processing
become fixed and established land.” (Sec. 23, RA 6657
3. If the land is cultivated for a period of less and is no longer open to
“Award Ce
than three years, the initial consideration is doubt or controversy."
Beneficiaries. — Bene
based on the average normal (Pagtalunan vs. Tamayo, 183
be awarded an
harvest during the preceding years when SCRA 252)
EXCEEDING THR
the land was actually cultivated or on the
The Mode of Transfer of Lands HECTARES which ma
harvest of the first year if newly cultivated,
to Tenant-Beneficiaries under CONTIGUOUS tract
and the harvest is normal.
Presidential Decree No. 27 are the or SEVERAL PARCE
4. After the lapse of the first three normal following: cumulated up to the pres
harvests, the final consideration shall be limits.” (Sec. 25, RA 6657
1. OPERATION LAND
based on the average normal harvest
TRANSFER (OLT) under PD Payment by Ben
during these three preceding agricultural
27 and EO 228; and Lands awarded pursuan
years.
shall be paid for the be
Operation Land Transfer is the
5. In the absence of any agreement as to the LBP in thirty
ORDERLY and SYSTEMATIC
the rental, the maximum allowed shall be amortizations at six perc
TRANSFER of land from the
applied. annum. The payments
landowner to the tenant-farmer
three (3) years after the a
6. If Capital Improvement is introduced not under Presidential Decree No.
at reduced amounts as e
by the lessee to increase productivity, the 27.
the PARC: Provided, Tha
rentals shall be increased proportionally to
2. DIRECT PAYMENT SCHEME (5) annual payments may
the consequent increase in production due
(DPS). — The landowner and than five percent (5%) o
to the improvement.
the tenant-beneficiary can the annual gross pr
7. In case of Disagreement the Court shall AGREE on the DIRECT SALE established by the DAR
determine the reasonable increase in terms and conditions which are scheduled annual payme
rental. not onerous to the tenant- fifth year exceed ten per
beneficiary. the annual gross produc
8. Capital improvement refers to any
failure to produce acco
permanent and tangible improvement on The value of the land shall
due to the beneficiary’s f
the land that will result in increased be equivalent to two and one
may reduce the interest r
productivity. If done with the consent of the half (2-1/2) times
the principal obligation
lessee, then the lease rental shall be the AVERAGE HARVEST OF
repayment affordable.
increased proportionately. THREE NORMAL CROP
YEARS IMMEDIATELY The LBP shall have
PRECEDING THE of mortgage on the land
PROMULGATION OF THIS the beneficiary; and th
DECREE. may be foreclosed by the
payment of an aggregat
annual amortizations. T

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advise the DAR of such
and the latter shall
award the forfeited la
other qualified benefi
beneficiary whose land,
herein, has been fore
thereafter be permanent
from becoming a bene
this Act. (Sec. 26, RA 665

Transferability o
Lands. - lands a
beneficiaries under this
be sold, transferred
except through hereditar
or to the government, or
to other qualified benef
period of ten (10) yea
however, That the chi
spouse of the transferor
right to repurchase the
government or LBP with
of two (2) years. Due
availability of the land s
by the LBP to he Baran
Reform Committee (BA
barangay where the
situated. The Provinc
Reform Coordinating
(PARCCOM), as here
shall, in turn, be given
thereof by the BARC.

If the land has not

paid by the beneficiary,
the land may be tra
conveyed, with prior ap
DAR, to any heir of the
to any other beneficiar
condition for such
conveyance, shall cultiv
himself. Failing complia
the land shall be trans
LBP which shall give due
availability of the land in
specified in the immediat
paragraph.

In the event of suc

the LBP, the latter shal
the beneficiary in one l
the amounts the latter
paid, together with th
improvements he has m
land. (Sec. 27, RA 6657)

The TITLES award

beneficiaries under the C
following:

1. Free Patent for Pub

and Disposable Lan

2. CERTIFICATE
OWNERSHIP AWA
for Resettlement Sit

3. STEWARDSHIP CO
Lands covered by I
SOCIAL
PROGRAM (ISFP);

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4. CLOA for Privat
Lands.

The MODES OF ACQUIR

for distribution under CAR

a. COMPULSORY A
(CA) (Sec. 16, RA 6

b. VOLUNTARY OFFE
(VOS) (Sec. 19, RA

c. VOLUNTARY LAND T
PAYMENT SCHEM
(Sec. 20, RA 6657)

Factors/Criteria con
determining just compens

1. Cost of Acquisitio

2. Current Value of lik

3. Nature of the land;

4. Actual use;

5. Income;

6. Sworn valua
landowner;

7. Tax Declaration;

8. Assessment
government asses

9. The social and econo

contributed by the fa

10. Non-payment of ta
secured from any
financing institut
land.

Basic Formula for the

lands covered by VOS a

LV = (CNI x 0.6) + (CS x

(MV x 0.1)

where:

LV = Land Value

CNI = Capitalized Net In

CS = Comparable Sales

MV = Market Value per T

The above formula shall

factors are present, relev
applicable.

A.1. When the CS

present and CNI and M
the formula shall be:

LV = (CNI x 0.9) + (MV x

A.2. When the CNI factor

present and CS and MV
the formula shall be:

LV = (CS x 0.9) + (MV x

A.3. When both CS and

present and only MV
theformula shall be:

LV = (MV x 2)

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