PRESIDENTIAL DECREE

No. 27
TENANT EMANCIPATION DECREE
“DECREEING THE EMANCIPATION OF
TENANTS FROM THE BONDAGE OF THE SOIL,
TRANSFERRING TO THEM THE OWNERSHIP
OF THE LAND THEY TILL AND PROVIDING
THE INSTRUMENTS AND MECHANISM
THEREFOR”
Who are covered?

 Tenantfarmers of private agricultural lands

primarily devoted to rice and corn under a
system of sharecrop or lease-tenancy,
whether classified as landed estate or not.
Owned Portion by the Tenant Farmer

IrrigatedLands – 5 hectare
Non-irrigated Lands – 3 hectares
Determination of Cost

 Two and one-half (2 1/2) times the average

harvest of three normal crop years
Manner of Payment

 total cost of the land, including interest at the rate of

six (6) per centum per annum

 paid by the tenant in fifteen (15) years of fifteen (15)

equal annual amortizations (P.D. 27)

 NOTE: The period is extended to twenty (20) years

equal annual amortization under Sec. 6, E.O. 228 of
July 17, 1987 by Pres. Corazon C. Aquino.
Mode of Transfer of lands Tenant-
Beneficiaries under Presidential Decree No.
27
1. OPERATION LAND TRANSFER (OLT) under PD 27 and EO
228

 Operation Land Transfer is the ORDERLY and SYSTEMATIC

TRANSFER of land from the landowner to the tenant-farmer
under Presidential Decree No. 27.
2. DIRECT PAYMENT SCHEME (DPS) –
 The landowner and the tenant-beneficiary can AGREE on the
DIRECT SALE terms and conditions which is not onerous to
the tenant-beneficiary.
Title to land acquired shall not be
transferable except:

 by hereditary succession
 or to the Government
Right of Retention

 the
landowner may retain an area of not
more than seven (7) hectares
a landowner may keep his whole covered
land if its aggregate size doesn’t exceed
the retention limit of 7 hectares
AN OWNER MAY NOT RETAIN UNDER THE
FOLLOWING CASES:

 If he as of October 21, 1972 owned more than 24 hectares of

tenanted rice or corn lands

 By virtue of LOI 474, if he as of 21 October 1972 owns less than

24 hectares of tenanted rice but additionally owned the
follows =
 Other agricultural land of more than seven hectares, whether
tenanted or not, whether cultivated or not, and regardless of the
income derived therefrom; or
 Land use for commercial, industrial, residential or other urban
purposes, from which he derives adequate income to support himself
and his family
 Landowners who filed their application for retention BEFORE 27 August
1985, the deadline set by Administrative Order No. 1, Series of 1985,
may retain not more than seven hectares of their landholding covered
by PD 27 regardless of whether or not they complied with LOI Nos. 41,
45, and 52.

 Landowners who filed their application AFTER 27 August 1985 but

complied with the requirement of LOI No. 41, 45 and 52 shall likewise
be entitled to such a seven hectares retention area.

 However landowner who filed their application for retention AFTER the
27 August 1985 deadline and DID NOT COMPLY with the requirements of
LOI Nos. 41, 45, and 52 shall only be entitled to a maximum of five (5)
hectares as retention area.
PD 27 VS RA 6657(Comprehensive
Agrarian Reform Program)
Coverage
PD 27 RA 6657
The land must be DEVOTED to Specific lands covered by CARP.
RICE or CORN crops.
a. All alienable and disposable lands of
the public domain devoted to or suitable
for agriculture
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.
Retention
PD 27 RA 6657
Landowners covered by A. Landowners whose landholding are covered
by CARP may retain an area of FIVE (5)
PD 27 are entitled to hectares.
retain SEVEN hectares,
B. In addition, each of his children, (legitimate,
except those whose illegitimate or adopted may be AWARDED three
entire tenanted rice (3) hectares as PREFERRED BENEFICIARY
provided:
and corn lands are
subject to acquisition >That the child was at least 15 years of age on
the June 15, 1988 (RA 6657-effectivity); and
and distribution under
OLT(Operation Land >The child was actually tilling the land or
directly managing the farmland from June 15,
Transfer) 1988 to the filing of the application for
retention and/or at the time of acquisition of
the land under CARP.