2016 MIDTERM COVERAGE ACCORDING TO JDLR

Chapter 1-3 of your book with emphasis on:

1. Lands covered or not covered
2. Who are qualified
3. Jurisdiction
4. Land conversion

CHAPTER I
COMPREHENSIVE AGRARIAN REFORM LAW OF 1998

APPLICABILITY OF LAW: Agricultural lands only

MEANING OF AGRICULTURAL LAND: lands that are arable and suitable for farming
CONSTITUTIONALITY OF THE CARL: it is a valid exercise of police power

THE PRIMARY OBJECTIVE OF AGRARIAN REFORM

To breakup agricultural lands and transform them into economic-size farms to be

owned by farmers themselves to uplift the latters socio-economic status
o
Meaning of Economic-size farms: area of farm land that permits
efficient use of labor and capital resources; to produce income
sufficient to meet needs of family

Founded on the right of farmers/farm workers to own the lands they till or receive
just fruits thereof.
RAISING OF LIVESTOCK, POULTRY, OR FISH NOT EMBRACED IN THE TERM AGRICULTURE

Classified as Industrial and exempt from the agrarian reform program

LANDS COVERED BY THE AGRARIAN REFORM LAW

As a general rule:
o
All public and agricultural lands
o
Including other lands of the public domain suitable for agriculture

SPECIFICALLY, FROM SECTION 4, CARL

o
More specifically, the following lands are covered by the CARP:
(a) All alienable and disposable lands of the public domain devoted to
or suitable for agriculture. No reclassification of forest or mineral lands
to agricultural lands shall be undertaken after the approval of this Act
until Congress, taking into account ecological, developmental and
equity considerations, shall have determined by law, the specific limits
of the public domain;
(b) All lands of the public domain in excess of the specific limits as
determined by Congress in the preceding paragraph;
(c) All other lands owned by the Government devoted to or suitable for
agriculture; and "(d) All private lands devoted to or suitable for
agriculture regardless of the agricultural products raised or that can be
raised thereon. "

LANDS NOT COVERED BY THE AGRARIAN REFORM LAW

IMPLEMENTATION EXTENDED BY RA 9700

1. Private lands with a total are of 5 ha and below;
2. Lands actually, directly, and exclusively used for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds, watersheds and
mangroves;
3. Private lands actually, directly, and exclusively used for prawn farms and
fishponds;
4. Lands actually, directly, and exclusively used and found to be necessary for:
a. National defense;
b. School sites ands campuses;
c. Experimental farm stations operated for educational purposes;
d. Seeds and seedling research and pilot production center;
e. Church sites and convents appurtenant thereto;
f.
Mosque sites and Islamic centers appurtenant thereto;
g. Communal burial grounds and cemeteries;
h. Penal colonies and penal farms actually worked by the inmates;
i.
Research and quarantine centers; and
j.
All lands with eighteen percent (18%) slope and over, except those
already developed
RETENTION RIGHTS (RR) OF THE LANDOWNER (LO)

Not more than 5 ha.

Retained area need not be personally cultivated by LO

o
Can be through labor administration
IF PREVIOUS EXERCISE OF RR UNDER PD 27?

LO can no longer exercise RR under CARL

FOR SPOUSES

RR DEPENDS ON PROPERTY REGIME

o
Conjugal or absolute community: only 5 ha
o
Separation of property: 5 HA each (Total of 10 ha)
WHO HAS RIGHT TO CHOOSE RETENTION AREA: LO
IF LAND ALREADY COVERED BY EMANCIPATION PATENT (EP) OR CERTIFICATE OF LAND
OWNERSHIP AWARD (CLOA)?

ISSUANCE DOES NOT ABSOLUTELY BAR LO FROM RETAINING THE AREA COVERED BY
THE EP OF CLOA
o
IF LO IS DEPRIVED OF RR
!
REMEDY of LO: file cancellation of EP or CLOA if land
covered by such is found to be part of owners retained area
(under Administrative Order No 2, series of 1994)
IF RETENTION AREA CHOSEN BY LO IS TENANTED?

There must be landlord-tenant relationship

o
How to determine?

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

LO has engaged person to personally cultivate an

agricultural land; and
!
LO is compensated in terms of share in the produce (Share
Tenancy) or in terms of a price certain or ascertainable in
produce or money or both (Leasehold Tenancy)
Tenant to choose either to remain or be a beneficiary in the same or another
agricultural land with similar or comparable features
Tenant to exercise option 1 year from time LO manifests his choice for area of
retention

EFFECT IF TENANT CHOOSES TO REMAIN IN THE RETAINED AREA

Tenant is now considered as agricultural lessee

No longer qualified as agricultural reform beneficiary

1.
2.

3.
4.
5.
6.

AGRICULTURAL LESSEE
RIGHTS
OBLIGATIONS
Peaceful possession and
(See page 20 for full text)
enjoyment of land
1. Take care of farm
Manage and work on land in
2. Inform lessor of trespass
manner conforming to proven
3. Care of animals and
farm practices
implements
Mechanized any pahase of
4. Attend to farm and crops
farmwork
5. Notify lessor of harvesting or
Deal with millers and
threshing
processors
6. Pay lease when due
Be afforded a homelot
Be indemnified for cost and
expense in cultivation,
planting or harvesting and
other expenses incidental to
improvement of crop

TERM OF LEASE

Continues until extinguished

When is lease extinguished?

o
Abandonment or voulntary surrender of the landholding by the lessee
o
Absence of successor in the event of death or permanent incapacity of
the lessee

But lease not necessarily extinguished by death or incapacity of the Lessee,

leasehold continues between lessor and person who can cultivate the
landholding personally
o
Lessor can choose from the ff:
!
The surviving spouse;
!
The eldest direct descendant by consanguinity;
!
The next eldest descendant or descendants in the order of
their age.

IF TENANT CHOOSES TO BE A BENEFICIARY

He loses right to be a beneficiary for same or other agri land

He loses right to be lessee of land retained by owner

CHILDREN OF LO ENTITLED TO 3 HA EACH

If LO owns more than 5 ha; excess may be awarded to his children

3 ha each; with the ff conditions
o
child must be at least 15 y.o.; AND
o
child is actually tilling the land or directly managing the farm
If child owns land, he is still entitled to award, but must not exceed 5 ha. ceiling
Land awarded to children cannot be sold, transferred or conveyed within a period
of 10 years except:
o
Through hereditary succession;
o
To the government;
o
To the LBP; or
o
To other qualified beneficiaries
Children or spouse of transferor has right to repurchase land from gov or LBP
within 2 years from date of transfer

LAND ENTITLEMENT
Landowner (LO)
5 ha. Retention limit
Spouses: Property Regime
1. Absolute Community
5 ha. Only
2. Separation of Property
5 ha. Each (total of 10 ha.)
Children of LO
3 ha. each with conditions
If already owns land, still entitled
but must not exceed 5 ha limit
Homesteaders
Can retain even if exceeding 5 ha
with conditions (cultivate at time
of approval of CARL, continue to
cultivate)
Commercial farm beneficiaries
3 ha. or minimum of 1 ha. each
Agrarian reform beneficiaries
3 ha.
Buyer of agricultural land
5 ha. (need to submit affidavit of
aggregate land holding before
registering the title)
RIGHT OF HOMESTEADERS VIS A VIS RIGHTS OF TENANTS

Right of homesteaders superior over rights of tenants

Homestead act is for welfare and protection of the poor

Owners of lands acquired through homestead grants or free patents under CA

141 can RETAIN THE AREA even if it exceeds 5 ha. provided that:
o
They were cultivating the same at time of approval of the CARL; and
o
They continue to cultivate the same.

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS BY LGUS

LGU must first subject it to agrarian reform coverage

PROCESS:
Gov acquires lands " just compensation by DAR " Distribute lands "LGU can
then expropriate land and pay beneficiaries just compensation

QUALIFICATIONS OF QUALIFIED CF BENEFICIARIES

o
> 18 y.o. at time of filing
o
Must have willingness, aptitude, and ability to cultivate and make land
productive
o
Must have been employed in CF from june 15, 1998 or upon
expiration of deferment
o
Farm workers who worked longest on land continously will be given
priority

WHO ARE DISQUALIFIED?

o
Optional or compulsary retired farm workers
o
Resigned farm workers
o
Dismissed farm workers for cause
o
Those farmworkers who waive or refuse to be beneficiary
o
Farm workers who violate agrarian reform loaws and regulation

FREEDOM OF BENEFICIARIES TO CHOOSE TYPE OF AGRIBUSINESS

o
They have freedom to choose type of business
o
To market their products or enter into marketing agreements
o
To avail of assistance or services
in negotiationg the most
advantageous agribusiness venture arrangmeent, enterprise devt and
capability building

TYPES OF AGRIBUSINESS VENTURE ARRANGEMENTS

o
Joint venture agreement
o
Lease agreement
o
Contract growing/ growership arrangement
o
Management contract
o
Build-Operate-Transfer Scheme

OWNERS OF CFS HAVE RIGHTS OF RETENTION OVER COMMERCIAL FARMS

POWER OF DAR TO FIX RENTALS

o
Provided under Sec.6 of CARL

LANDS POSSESSED BY MULTINATIONAL CORPS ARE COVERED BY CARL

Land to be distributed directly to individual worker- beneficiaries

If not economically feasible: worker beneficiaries to form a cooperative or

association to deal with corp by lease or growers agreement etc
ANCESTRAL LANDS

Lands occupied, possessed, and utilized by individuals, families, and clans who
are members of the indigenous cultural communities or indigenous peoples by
themselves of through their predecessors-in-interest under individual or group
ownership, continuously to the present.

Ancestral lands are EXEMPTED from Agrarian Reform Law

LAND CLASSIFICATION IN THE TAX DECLARATION IS NOT CONCLUSIVE

Not sole basis of land classification; not irrefutable

LANDS NOT COVERED:

Lands classified as non agricultural prior to the effectivity of carl are not covered

Lands with at least 18% slope

o
to prevent adverse effects in lowlands and streams resulting from soil
erosion
o
considered as permanent forests or forest reserves

School Sites and Campuses

o
School has discretion (not DAR) to determine whether kand is
necessary for use as school site or campus
WHO HAS JURISDICTION TO EXEMPT A PROPERTY FROM AGRARIAN REFORM COVERAGE?

The Secretary of Agrarian Reform

COMMERCIAL FARMS (CF)

AGRARIAN REFORM LAW DEFERRED ON COMMERCIAL DFARMS

o
10 years

MODE OF ACQUISITION OF CF
o
Voluntary offer to sell (VOS)
o
Compulsary acquisition (CA); or
o
Direct payment scheme (DPS)

MANNER OF DISTRIBUTION
o
3 ha. each or minimum of 1 ha. each
o
Individually
o
Collectively

THE COMPULSARY ACQUISITION PROCESS

IDENTIFY " SEND NOTICE "REPLY BY LO " POSSESSION BY DAR " DAR REQUEST TO ISSUE
TCT " DISTRIBUTION OF LAND

TWO NOTICES TO LO NEEDED FOR VALID IMPLEMENTATION

o
Notice of coverage
o
Notice of acquisition
LAND ACQUISITION PROCEDURE: STRICTLY CONSTRUED
o
Why? since extraordinary method of expropriation
o
Violation by DAR = violation of constitutional due process GAD

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

JUST COMPENSATION

Source: Agrarian Reform Fund

o
If insufficient charged against the debt service program of the
national government or any unprogrammed item in the GAA
Method: cash and land bank bonds
Opening of trust account does not constitute payment
Title of or ownership of land is transferred to the state only upon just
compensation
Factors used in the valuation of lands
o
Capitalized Net Income
o
Comparable Sales
o
Market Value
Preliminary determination of just compensation
o
DARAB may conduct summary admin proceeding to determine just
compensation
o
If initial land valuation is
!
<10M: PARAD will conduct prelim proceedings
!
10M < 50M: RARAD
!
50M < Land Value: DARAB
When is the reckoning of valuation?
o
At the time it was taken from owner and appropriated by the
government
o
BUT if with undue delay:
!
at the time of full payment of just compensation (Lubrica v
Landbank)
Valuation by DAR not conclusive
o
LO may still contest in proper court

PROCEDURE FOR DETERMINATION OF JUST COMPENSATION

LBP determines value of land
compensation
compensation

"if

"

DAR makes offer to LO

"DAR

determines

disagree: bring matter to RTC as SAC for final determination of

Mode of payment
o
LO cannot insist in cash payment only
o
GR:
!
Cash and financial instruments of the government,
!
Land Bank Bonds,
!
Shares of stocks in GOCC,
!
Tax credits

For Cash and Financial Instruments of the

Government (Schemes)
Lands above 50 ha.
25% cash
75% government
financial instruments
Lands above
ha.

24 50

30% cash
70% government
financial instruments

Lands above 24 ha and

below

35% cash
65% government
financial instruments

Voluntary Transfer no longer allowed

o
Till June 30, 2009 only
o
Mode of payment: beneficiary pays price directly to LO

FORMULAS (READ THE BOOK IF YOU WANT TO LEARN THIS. HEHE. )

AGRARIAN REFORM BENEFICIARIES

WHO ARE ELIGIBLE?

o
Landless resident of same barangay/ municipality
o
Landless resident farmer or tiller who owns less than 3 ha. of land
!
Agricultural lessees and share tenants
!
Regular farmworkers
!
Seasonal farmworkers
!
Other farmworkers
!
Actual tillers or occupants of public lands
!
Collectives or cooperatives of the above beneficiaries
!
Others directly working on the land.

QUALIFICATIONS OF AGRARIAN REFORM BENEFICIARIES

o
Filipino citizen
o
Resident of the brgy or municipality where landholding is located
o
At least 15 years old
o
Willing able and equipped with attitude to cultivate and make land
productive

SPECIAL QUALIFICATIONS FOR FARM WORKERS IN COMMERCIAL FARMS OF

PLANTATIONS

If they were employed as of June 15,1988 in the landholding under

CARL

MANAGERIAL FARM WORKERS NOT QUALIFIED TO BECOME BENEFICIARIES

But those promoted after being identified as beneficiary STILL qualified

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

WHO ARE DISQUALIFIED TO BECOME AGRARIAN REFORM BENEFICIARIES? (13)

1) Those who do not meet the basic qualifications
2) Those who have waived their right
3) Those who have not paid an aggregate of 3 annual amortizations
4) Those who have failed to exercise their right of redemption/repurchase
within 2 years
5) Those who refused to pay 3 annual amortizations for land
6) Those who have been dismissed for cuase
7) Those who have obtained substantially equivalent employment
8) Those who have retired or voluntarily resigned from their employment
9) Those who have misused the land or diverted the financial support
services extended by the government
10) Those who have misrepresented material facts in their basic
qualifications
11) Those who have sold, disposed, abandoned the lands awarded to
them by the government
12) Those who have converted agricultural lands to non agricultural use wo
prior approval of the DAR
13) Those who have violated agrarian reform laws and regulations
MAXIMUM AREA TO BE OWNED OR AWARDED TO BENEFICIARIES

Type of crop
Type of soil
Weather patterns; and
Other pertinent factors critical for the success of the beneficiaries

TRANSFER OF OWNERSHIP TO BENEFICIARIES NOT AUTOMATIC

o
Will only be transferred upon full payment of just compensation to the
landowner

CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA)

WHEN DOES DAR ISSUE A CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA)?

o
Upon full payment of the farmer beneficiary
o
CLOA is basis for issuance of OCT or TCT

CLOA IS INDEFEASIBLE
o
Become indefeasible after 1 year from registration with the registry of
deeds

CANCELLATION OF CLOAS
o
UNDER JURISDICTION OF THE SECRETARY OF DAR

GROUNDS FOR CANCELLATION OF CLOAS

o
Abandonment of the land;

Neglect or misuse of the land;

Failure to pay 3 annual amortizations;
Misuse or diversion of financial and support services;
Sale, transfer, conveyance of the right to use the land; and
Illegal conversion of the land

BENEFICIARIES
WHEN WILL RIGHTS AND OBLIGATIONS OF BENEFICIARIES COMMENCE?

From their receipt of the CLOA and actual physical possession of the land
OBLIGATIONS OF BENEFICIARIES

Exercise due diligence in the use, cultivation, and maintenance of the land,
including improvements thereon; and
Pay the LBP 30 annual amortizations with 6% interest per month
o
amortizarion will start 1 year from the date of registration of the CLOA
o
if actual occupancy is after registration; 1 year pd starts from
constructive occupation of the land by beneficiary

PRESIDENTIAL AGRARIAN REFORM COUNCIL (PARC)

HAS POWER TO ISSUE RULES AND REGULATIONS TO CARRY OUT OBJECTIVES OF THE

3 hectares

FACTORS TO BE CONSIDERED IN DETERMINING SIZE OF LAND TO BE AWARDED

o
o
o
o

o
o
o
o
o

ACT

Chair
Vice Chairperson
Members
o
must include 6 reps from the agrarian reform beneficiaries
!
at least one from ICC
!
at least one from duly recognized organization of rural
women or a national organization of agrarian reform
beneficiaries with a substantial amount of women members

PRESIDENTIAL AGRARIAN REFORM COORDINATING COMMITTEE (PARCCOM)

COORDINATES AND MONITORS THE IMPLEMENTATION OF CARP IN THE PROVINCE

PROVIDES INFORMATION ON THE PROVISIONS OF THE CARP, GUIDELINES ISSUED BY

THE PARC AND PROGRESS OF CARP IN THE PROVINCE

COMPOSITION OF THE PARCCOM

Chairman

Executive officer

REPS
BARANGAY AGRARIAN REFORM COUNCIL (BARC)

BARC MAY SEEK LEGAL ADVICE FROM DAR

FUNCTIONS OF THE BARC
o
THOSE PROVIDED UNDER EO 229
o
IN ADDITION TO THOSE STATED IN EO 229
1. Mediate and conciliate
2. Assist in ID
3. Attest to accuracy

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

4.
5.
6.
7.
8.

Assist qualified beneficiaries

Assist in initial determination of land value
Assist DAR reps
Coordinate delivery of support services
Perform other functions assigned by DAR

DAR HAS TWO-FOLD JURISDICTION

executive enforcement and administration of laws

judicial determination of rights of parties

QUASI-JUDICIAL JURISDICTION OF THE DAR

Has primary jurisdiction to determine and adjudicate Agrarian reform matters

Appellate jurisdiction over orders and decisions of the Agrarian reform

adjudicators
QUASI-JUDICIAL POWERS OF THE DARAB

Hear and decide cases within its jurisdiction;

Summon witnesses;

Administer oaths;

Take testimony;

Issue subpoena ad testificandum or duces tecum;

Issue writs of execution; and

Punish direct or indirect contempt.

PROVINCIAL AGRARIAN REFORM ADJUDICATORS (PARAD)

Has primary and exclusive jurisdiction to hear and decide AGRARIAN DISPUTES
o
Definition of AGRARIAN DISPUTES: Sec 3 (d) CARL
(page 113 of UNGOS book)
!
Controversies relating to leasehold, tenancy, stewarsdship
over lands devoted to agriculture
!
Disputes concerning farmworkers assoc.
!
Representation of persons in negotiating, fixing, maintaning,
changing or seeking to to arrange terms or conditions of
such tenurial arrangements
o
Specific matters over which PARAD has jurisdiction (16) (page 114)
!
i.e. ejectment of tenants, sale and redemption of agri lands,
review of leasehold rentals and fixing of disturbance
compensation, preliminary administrative determination of
reasonable and just compensation etc.

Appeal from decisions of the PARAD

o
To DARAB within 15 days

REGIONAL AGRARIAN REFORM ADJUDICATORS (RARAD)

Executive adjudicator in the region

Functions:
o
Admin supervision over PARAD including monitoring of cases
o
Hearing and adjudication of agrarian disputes

Conduct hearing on the ff:

!
Cases that cant be handled by PARAD on account of
inhibition, disqualification or when there is no PARAD in
locality
!
Complex and sensitive matters that decision would constitute
precedent affecting regional interest
!
Preliminary determination of just compensation of lands
valued at 10M to 50M
!
Conduct hearing on applications for the issuance of a writ of
preliminary injunction or TRO and such other cases which
the Board may assign

DARAB HAS NO JURISDICTION

1. Over matters pertaining to ownership
2. Over retention or exemption issues
3. Over right of way issues
4. To identify and classify landholdings for agrarian reform coverage
5. Over matters pertaining to identification and selection of beneficiaries
AGRARIAN CASE DIRECTLY FILED IN COURT- ACTION TO BE TAKEN
LEGAL PERSONALITY OF UNREGISTERED ASSOCIATION CANNOT BE CHALLENGED
JUDICIAL REVIEW

DAR " CA via petition for review on certiorari under Rule 43 of the Rules of
Court
frivolous or dilatory appeals
o
factual matter; based on facts and circumstances
Prerequisite to filing of a complaint before the DARAB
o
BARC certification stating that the dispute has been submitted to it for
mediation and conciliation without any success
o
BARC certification not needed in judicial determination of just
compensation; Special Agrarian Courts has jurisdiction
!
Only needed for cases filed before the DARAB
Remedy from an adverse ruling of the DAR

Appeal from
decision of
DAR

DARAB for just

compensation

RTC acting as
SAC

Petition

To

Review on
Certiorari
under Rule 43
Original action

CA

15 days from
notice

SAC

Appeal via
petition for

CA

15 days from
receipt of
adjudicators
decision
15 days from
receipt of

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

CA

review under
Rule 43
Appeal by
Certiorari
under Rule 45

Any Ruling of
DAR

Petition for
Review

PARAD

SC

SC

DARAB

notice of
decision
15 days from
receipt of
notice of
decision
15 days from
receipt of
notice of
decision
Within 15 days

RTC AS SPECIAL AGRARIAN COURT

Additional jurisdiction of the special agrarian court (SAC)

o
Original and exclusive jurisdiction to hear and decide:
!
Petitions for the determination of just compensation to LO;
and
!
Criminal violations of the CARL

Just compensation preliminarily determined by the DARAB should be filed with

the SAC within 15 days from notice
OBJECTIONS TO THE COMMISSIONERS REPORT (COMMISSIONER APPOINTED BY SAC TO
EXAMINE FACTS RELEVANT TO DISPUTE)

Under Rule 32 of Rules of Court; 10 Days to file objection

INTERLOCUTORY ORDERS OF THE SAC

Cant be challenged till case is decided on merits

Why? To expedite resolution of agrarian disputes

CONVERSION

Section 65

DEFINITION OF CONVERSION
o
Act of changing the current use of a piece of agricultural land into some
other use
!
For residential, commercial, industrial, and other nonagricultural purposes;
!
For another type of agricultural activity such as livestock,
poultry and fishpond the effect of which is to ecempt the land
from CARP coverage;
!
For non-agricultural use other than that previously authorized
o
RA 78811 Change of crops to commercial or high value crops is NOT
considered as conversion in the use and nature of the land (see
page 140 of UNGOS, and RA 7881)

CONVERSION VS RECLASSIFICATION
o
Conversion
!
Changing the current use as approved by DAR
o
Reclassification
!
Specifying how agricultural lands shall be utilized for nonagricultural uses such as residential, industrial, and
commercial, as embodied in the land use plan, subject to the
requirements and procedures for land use conversion

EFFECT OF RECLASSIFICATION
o
Does not automatically allow LO to change land use
o
Has to first undergo CONVERSION

SCOPE OF DARS CONVERSION AUTHORITY

o
Agricultural land reclassified as non agricultural before June 15, 1998
doesnt require conversion clearance or authority from DAR = NOT
COVERED
o
After June 15, 1998: DAR approval required for conversion

WHO CAN APPLY FOR CONVERSION?

o
The Beneficiary
o
The LO with respect only to his retained area which is tenanted

WHEN: PROPER TIME TO FILE APPLICATION FOR CONVERSION?

o
After the lapse of 5 years from the award of the land

WHAT: CONDITIONS FOR FILING AN APPLICATION FOR CONVERSION

1. When the land ceases to be economically feasible for agricultural
purposes; or

REMEDY FROM ADVERSE DECISION OF THE SPECIAL AGRARIAN COURT

not ordinary appeal

appeal via petition for review under Rule 43 of the Rules of Court
REMEDY FROM ADVERSE DECISION OF THE COURT OF APPEALS

Certiorari with the SC under Rule 45, within 15 days from notice

15 day period: non-extendible

ON APPEALS: PROCEDURES IN RULES OF COURT WILL GOVERN
FINANCING

ROLE OF LAND BANK OF THE PHILIPPINES (LBP)

o
LBP is the financial arm of the agrarian reform program
o
LBP determines value of land

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

2.

IF CONVERSION IS APPROVED: OBLIGATIONS OF BENEFICIARY

o
Invest 10% of proceeds from conversion in gov securities
o
Pay the LBP full price of land upon conversion

LANDS THAT CANNOT ABSOLUTELY BE SUBJECT TO CONVERSION (P-I-I-AI)

1. Agricultural lands within Protected areas designated by the NIPAS,
including watershed and recharged areas of aquifers, as determined by
the DENR;
2. All Irrigated lands (delineated by DA/NIA), where water is available to
support rice and other crop production, and all irrigated lands where
water is not available for rice or other crop production but are within
areas for irrigation facility rehabilitation by the DA and/or the NIA;
3. All Irrigable lands already covered by irrigation projects with firm
funding commitments (delineated by DA/NIA);
4. All Agricultural lands with Irrigation facilities operated by private
organizations

When the locality has become urbanized and the land will have a
greater economic value for residential, commercial, or industrial
purposes.

AREAS HIGHLY RESTRICTED FROM CONVERSION (IN-A-C-E)

1. Irrigable lands Not covered by irrigation projects with firm funding
commitment;
2. Agro-industrial croplands, or lands presently planted to industrial crops
that support the economic viability of existing agricultural infrastructure
and agro-based enterprises;
3. Lands issued with notice of land valuation and acquisition, or subject of
a perfected agreement between the LO and the beneficiaries under the
voluntary land transfer/ direct payment scheme (VLT/DPS) under the
CARP; and
4. Environmentally critical areas (ECAs) as determined by DENR in
accordance with law.

PURPOSE OF INVENTORY
o
Inventory helps DAR monitor unauthorized conversions of lands into
fishponds and prawn farms

MANGROVE AREAS ALSO PROTECTED UNDER LAW

o
To harmonize agrarian reform with environmental laws

CHANGE OF CROPS = NOT CONVERSION = NO NEED FOR DAR APPROVAL

Lands transferred to beneficiaries exempted from taxes and fees

Land acquired by beneficiaries exempted from transfer/registration fees

Law prohibits issuance of injunction by lower courts to ensure speedy

unhampered and smooth implementation of the agrarian reform program

Buyer of agricultural land is required to submit an Affidavit of aggregate

landholding to ensure that buyer does not exceed the 5 ha. limit

WHEN IS THE BANK OR FINANCIAL INSTITUTION (FI) DEEMED AS NEW LO?

o
If before the deposit of just compensation:
!
The bank is the purchaser in the foreclosure sale and the
redemption has expired, in cases where the right of
redemption exists; or
!
The bank or financial institution is the purchaser in the
foreclosure sale and said foreclosure sale is confirmed by
the court in cases where only equity of redemption is
provided

WHEN IS BANK OR FINANCIAL INSTITUTION DEEMED AS LIEN-HOLDER?

o
The bank or FI, as mortgagee, is considered one, if on the date the
land transfer scheme was received by the LBP from the DAR:
!
The mortgage debt is not due and demandable; or
!
The mortgage debt is already due and demandable but the
bank or financial institution has not foreclosed the property;
or
!
The mortgage has already been foreclosed by the pd to
exercise the right of redemption gas not yet expired or the
foreclosure sale has not been confirmed by court in cases
where there is only equity of redemption

WHY? Since, apart from standard requirements, these areas require a

project feasibility study and environmental compliance certificate.

Failure to implement approved conversion plan within 5 years from approval =

Land still covered by the agrarian reform program

CONVERSION OF PUBLIC AGRICULTURAL LANDS TO FISHPONDS

o
Only when coastal zone is declared suitable for fishpond development
by the provincial government and the BFAR
o
Then, DENR can allow the lease and devt of the area

Private agricultural farms can be converted to fishponds and prawn farms up to a

maximum of 5 ha.

BUT DAR may approve conversion of more than 5 ha. under the ff
conditions:
!
When the use of the land is more economically feasible as
fishpond/prawn farm as certified by the BFAR; and
!
A simple and absolute majority of the regular farm workers or
tenants agree to the conversion

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

RIGHT ANDS PRIVILEGES OF BANK OR FI AS NEW LO:

o
Receive all notices, advices, correspondence and communications
from DAR, LBP
o
Transact w DAR or LBP regarding all aspects if subj land transfer claim
to the exclusion of all other persons
o
Be named as recipient of cash and bond deposits
o
Receive all proceeds of subject land

Obligations of bank or FI as new LO (page 145)

Obligations of bank or FI as lien-holder (page 145)

The term of contractual arrangements will be respected

o
Any contract of lease, grower, service etc will be respected until expiry

Debts secured by mortgage on land the government will assume the obligation
in an amount not exceeding what the LO would receive as just compensation

PENALTIES (SEE SEC 74)

o
GR: Imprisonment of 1-3 yrs, Fine of 1k 15k
o
EGR:
!
Sec 73, par. a,b,f,g,h = 3y1D 6y, 50k -150k
!
Sec 73, par. c,d,e,i = 6y1D 12 yrs, 200k -1M
o
If offender is a corporation = officers liable

Sale resulting from foreclosure of mortgage not a criminal violation of the CARL

CRIMINAL VIOLATIONS OF THE CARL (SHORTENED VERSION; PAGE 148)

1) Ownership in excess of total retention limit or award ceilings; if done for the
purpose of circumventing the provisions of the CARL
2) Forcible entry or illegal detainer by non beneficiaries; if done to avail rights/
benefits of the program
3) Conversion of agri land to non agri use; if done with intent to avoid
application of CARL to his land holdings
4) Malicious and willful prevention or obstruction of the implementation of the
CARP
5) Sale, any transfer or conveyance of lands outside of urban centers and city
limits either in whole or in part after the effectivity of the CARL, EXCEPT
upon final completion of the appropriate conversion under sec 65 RA 6657
6) Sale, transfer, conveyance by a beneficiary of the right to use or any
usufructuary right over the land acquired by virtue of being a beneficiary, if
done to circumvent the CARL
7) Unjustified, willful and malicious acts of the officers of the gov. through the
ff:
a. Denial of notice/ reply to LO
b. Deprivation of retention rights
c. Undue or inordinate delay in the preparation of claim folders
d. Undue delay refusal or failure in the payment of just
compensation
8) Undue delay by any gov agency/official/employee to submit report, data
involving implementation of the provisions of the CARL as required by the
parties or the government , including the House of Reps and the Senate of
the Philippines
9) Undue delay in the compliance with the obligation to certify or attest and or
falsification of the certification or attestation as required under Sec 7 of RA
6657
10) Any other act of culpable neglect or willful violations of this act

AGRARIAN LAW & SOCIAL LEGISLATION MIDTERM REVIEWER 2016 | ALEGRE & BAARIA

CHAPTER II
TENANT EMANCIPATION LAW

APPLICABILITY OF LAW: private agricultural lands devoted to rice and corn under
share tenancy or lease tenancy
SIZES OF LAND TO BE TRANSFERRED TO TENANT-FARMER (TF)
o
Not irrigated: 5 ha.
o
Irrigated: 3 ha.
STAGES OF LAND TRANSFER
1. issuance of Certificate of Land Transfer (CLT)
2. issuance of Emancipation Patent (EP)

CERTIFICATE OF LAND TRANSFER

qualifies tenant-beneficiary (TB) to possess land and comply with certain

conditions preparatory to ownership
EMANCIPATION PATENT

vests upon farmer-beneficiary (FB) absolute ownership over landholding

constitutes conclusive authority for issuance of an O/TCT in his name

INDEFEASIBILITY: after 1 year from its registration @ Office of the Registry of

Deeds

CANCELLATION OF EPS
1. Abandonment
2. Neglect or misuse
3. Failure to pay 3 annual amortization
4. Misuse or diversion of financial aid and support services
5. Sale, transfer or conveyance of right to use land
6. Illegal conversion

JURISDICTION: DAR

2.

3.

payment by LBP with 10% payable in cash immediately and balance payable in
form of LBP bonds over a 10-year period, with 1/10 of the face value maturing
th
every year until the 10 year
other modes of payment prescribed or approved by Presidential Agrarian Reform
Council

RETENTION RIGHT OF LO

7 ha. max, if cultivating or will cultivate

Personal cultivation by LO not required, can be done indirectly through labor

administration
RETENTION RIGHT UNDER PD 27 VIS--VIS RETENTION RIGHT UNDER CARL

Alternative
o
If LO already exercised his right of retention under PD 27, he can no
longer exercise retention right under CARL. However, he can keep the
7-ha. retention limit granted under PD 27.
JURISDICTION OVER RETENTION OR EXEMPTION

DAR administrative implementation of agrarian law

TB CANNOT SELL OR TRANSFER OWNERSHIP OF LAND

E:
1. to the Government
2. by hereditary succession
TF WILL PAY LBP

total costs of land + interest at 6% per annum for 20 years in 20 equal annual
amortizations

EP issued after full payment of the amortizations

3 months after acquisition due to foreclosure

sale to any interested landless farmer duly certified to a bonafide landless farmer
by DAR of the
o
barangay or 2 closest barangays where land is situated
PAYMENT OF JUST COMPENSATION TO LO
1. direct payment in cash or in kind

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CHAPTER III
THE CODE OF AGRARIAN REFORMS

Administration bill submitted by President Macapagal

Signed into law on 08 Aug 1963
OBJECTIVE: create a system of owner-cultivatorship and economic family-size
farm as basis of Philippine agriculture
Supplements (did not repeal) CARL

SALIENT FEATURES

Abolished share-tenancy system and replaced it with agricultural leasehold

Bill of rights for agri workers

Established DAR as machinery for acquisition and distribution of agricultural land

Established Land Bank as financial arm of agrarian reform program

SHARE TENANCY

where 2 persons agree on a joint undertaking for agricultural production where

o
one party furnishes the land and
o
the other his labor,
!
with either or both,
!
contributing any one or several of the items of production,
o
the tenant cultivating the land personally with the aid of labor available
from members of his immediate farm household, and
o
the produce thereof to be divided b/w LH and tenant
AGRICULTURAL LEASEHOLD

farmer cultivates land belonging to, or possessed by, another with the LHs
consent for a price certain in money or in produce or both
SITUATIONS WHERE LEASEHOLD RELATIONSHIP CAN EXIST
1. area retained by LO is tenanted
2. FB leases land awarded to him to another person
3. FB leases land awarded to him back to the former owner of the land
4. Land awarded to farmers coop or association is leased to agricultural
corporations
AGRARIAN REFORM BENEFICIARIES CAN BECOME LESSORS OF AGRICULTURAL LAND.

Leasehold principles under CAR will apply only to situations where lessor is LO:
o
Farmers whose tenancy relations were automatically converted to
leasehold by virtue of CAR
o
Tenanted lands retained by LO, automatically converted to leasehold
by virtue of CARL
FORM OF LEASE CONTRACT

No particular form (oral or written)

Lessor need not be owner of land (may be usufructuary or legal possessor)

If agreement in writing, agricultural leasehold shall be:

o
Drawn in quadruplicate in language known to agricultural lessee (AL)

o
o
o

Signed/thumb-marked by AL personally and by agricultural lessor (AR)

before 2 witnesses, to be chosen by each party
Acknowledged before municipal court/municipality where land is
situated
Registered with Municipal Treasurer (custodian of agri lease contracts,
to be kept and recorded in the Registry of Agricultural Leasehold
Contracts)

TERMS AND CONDITIONS OF THE CONTRACT

1. AL to pay excessive rental
2. AL to pay amount in excess of fair rental value for use of lessors work animals or
farm implements
3. AL to rent work animals or to hire farm implements from the AR or a third person
4. AL to make use of any store or services operated by AR or a third person
5. AL to render any service other than his duties and obligations as lessee, with or
without compensation
6. AL to answer for any fine, deductions and/or assessments
7. AL to accept a loan or to make payment therefor in kind
MODES OF PAYMENT OF RENTAL

In money: paid within a reasonable time from threshing or processing

In produce: paid immediately after threshing or processing

TERM OF LEASE

Indefinite until lease is terminated for cause

o
AL-farmers are entitled to security of tenure
THOSE THAT DO NOT TERMINATE LEASEHOLD RELATION
1. Expiration of lease
o
will not authorize increase on rentals
!
UNLESS LO introduces capital improvements to increase
productivity
!
Proportionate to consequent increase in production
2. Transfer of ownership of land
o
buyer/transferee becomes lessor
3. Death or physical incapacity of the lessee
o
lessor must choose successor from the ff if they are willing to
personally cultivate the landholding:
!
surviving spouse
!
eldest direct descendant by consanguinity
!
next eldest descendant or descendants in the order of their
age
o
EXTINGUISHED
!
if none of the above exists or
!
if the above persons are not willing to cultivate the land
WHEN THE AGRICULTURAL LEASEHOLD IS EXTINGUISHED
1. abandonment without the knowledge of AR

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2.

3.

a. intent to abandon
b. actual act of abandonment
voluntary surrender by AL
a. voluntary surrender by AL
b. AL must serve 3 months advance notice
absence of persons to succeed to lessee, in the event of death or permanent
incapacity or the lessee

TERMINATION OF LEASEHOLD BY AL
1. cruel, inhuman or offensive, treatment of AL or any member of his immediate
farm household by AR
2. non-compliance on the part of AR with any of his obligations
3. compulsion of AL or any member of his immediate farm household by AR to
render any service not in any way connected with farm work, or even without
compulsion if no compensation is paid
4. commission of crime by AR or his representative against AL or any member of
his immediate farm household
5. voluntary surrender due to circumstances more advantageous to him and his
family
DISPOSSESSION OF AL
1. land declared by appropriate government agency suited for RCI or some other
urban purposes
2. failure of AL to substantially comply with any of the terms and conditions of the
lease K or CAR
3. AL failed to adopt proven farm practices
4. land or other substantial permanent improvement is substantially damaged or
destroyed or has unreasonably deteriorated through the fault or negligence of the
AL
5. AL does not pay lease rental when it falls due
6. Lessee employed sub-lessee
Procedure:
1. LO-AR should file corresponding petition with DARAB
2. Prove existence of grounds for dispossession
RIGHT OF LESSEE TO BE INDEMNIFIED FOR HIS LABOR (AL SURRENDERS, ABANDONS, OR IS
VALIDLY EJECTED)
1. cost and expenses incurred in the cultivation, planting or harvesting and other
expenses incidental to improvement of his crop
2. for of the necessary and useful improvements made by him on the landholding
w/c are tangible and have not yet lost their utility at the time of surrender and/or
abandonment of the landholding
RIGHT OF PRE-EMPTION

AL preferential right to buy land actually cultivated by him

AR decides to sell landholding, must give notice to:

o
DAR, and
o
All lessees affected.

If AL agrees:
o
Give written notice to AR of intention to exercise right, AND
o
Tender payment, or
o
Present guarantee certificate from LBP to AR
If AR refuses to accept tender or presentment:
o
Consign with court

RIGHT OF REDEMPTION

if land was sold to a third person without knowledge of AL

at a reasonable price and consideration to the extent of area actually cultivated

by him

by filing a petition or request for redemption with DAR w/in 180 days from
knowledge of sale

redemption price: reasonable price of the land at the time of the sale
ACTS AR IS FORBIDDEN TO DO
1. dispossess AL of landholding without just cause
2. require AL to assume payment of taxes levied by government on landholding
3. require AL to assume rent, canon or other consideration which AR is under
rd
obligation to pay to 3 persons for the use of land
4. deal with millers or processors without written authorization of lessee in cases
where crop has to be sold in processed form before payment of rental
5. discourage formation or maintenance or growth of unions or orgs of ALs in his
landholding, or to initiate, dominate, assist or interfere in the formation or
administration of any such union or org
ACTS AL IS FORBIDDEN TO DO
1. work additional landholdings belonging to different AR
2. employ sub-lessee on his landholding
ENFORCEABILITY OF LOANS OBTAINED BY AL
1. written in language known to AL
2. signed/thumb-marked by AL or by his agent
PROPERTIES OF AL EXEMPT FROM LIENS OR EXECUTIONS
1. 25% of entire produce of land under cultivation
2. work animals and farm implements
PRESCRIPTION OF ACTION

3 years reckoned from time cause of action accrued

DAR: implementing arm of agrarian reform program
LBP: financial arm

Good Luck!

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