AGRARIAN LAW NOTES (UNGOS)

c.
d.
e.
f.

Chapter 2 The Tenant Emancipation Law

PD No. 27
Applicability of the Law

The Tenant Emancipation Law supplements the CARL.

Applies only to private agricultural lands primarily devoted to rice and corn under
share tenancy or lease-tenancy.

Transfer of Lands to Tenants

PD No. 27 provides that:
The tenant farmer, whether in land classified as landed estate or not, shall
be deemed owner of a portion constituting a family-size farm of five (5)
hectares if not irrigated and three (3) hectares if irrigated. --- shall be
deemed owner does not mean automatic transfer of title or ownership of
the land to the tenant or lessee. There has to be full payment of just
compensation before the landowner could be divested of his land,
otherwise, the land would be taken without just compensation.
a.
b.

The tenant farmer is entitled to:

5 hectares (not irrigated)
3 hectares (irrigated)

Neglect or misuse of land

Sale, transfer or conveyance of the right to use the land
Illegal conversion of the land
Misuse or diversion of financial and support services.

Tenant-beneficiary cannot sell or transfer ownership of the land acquired

under the Tenant Emancipation Law, EXCEPT to the Government or by
hereditary succession. PD No. 27 expressly provides:
Title to land acquired pursuant to
of the Government shall not
succession or to the Government
Decree, the Code of Agrarian
regulation.

this Decree or the Land Reform Program

be transferable except by hereditary
in accordance with the provisions of this
Reforms and other existing laws and

Tenant-farmer will pay the Land Bank

Farmer-beneficiary + heirs === pay the Land Bank
Total costs of the land + interest rate 6% p/a for 20
years in 20 equal annual amortizations
EP will be issued to the Farmer-beneficiary after full payment of the
amortizations. (EO No. 228)

The land transfer under PD No 27 is effected in 2 stages, namely:

1.

2.

Issuance of a Certificate of Land Transfer (CLT)

Significance of the CLT: does not vest upon tenant-beneficiary
ownership over the land but merely qualifies the tenant-beneficiary to
possess the land and comply with certain conditions preparatory to
ownership. If tenant-beneficiary complies with the conditions, he is
issued an EP.
Issuance of Emancipation Patent (EP)
Significance of an EP: vests upon the farmer-beneficiary absolute
ownership over the landholding. It is a conclusive authority for the
issuance of TCT or COT in his name.
EPs become indefeasible and imprescriptible after 1 year from its
registration with the Office of the Registry of Deeds, subject to
conditions, limitations and qualifications under CARL, the Property
Registration Decree and other laws.
Jurisdiction over cancellation of EPs: Secretary of the DAR
EP may be cancelled on the following grounds: (FAN-SIM)
a. Failure to pay 3 annual amortization
b. Abandonment of the land

Payment of Just Compensation to Landowner through the following modes

(at the option of the landowner)
a.
b.

Direct Payment to the landowner by the farmer-beneficiaries (in cash

or in any kinds)
Payment by the Land Bank with 10% payable in cash immediately and
the balance payable in Land Bank bonds over a 10-year period
With 1/10 of the face value maturing every
year until the 10th year

c.

Other modes prescribed by the Presidential Agrarian Reform Council

Retention Right of Landowner

The landowner is entitled retain an area of not more than 7 hectares, is he is
cultivating or will cultivate it.
Personal cultivation by the landowner is not required cultivation can be done
indirectly (ie. Labor Administration)
Jurisdiction over retention or exemption issues: Secretary of the DAR
because they pertain to administrative implementation of agrarian law.

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AGRARIAN LAW NOTES (UNGOS)

Chapter 3 The Code of Agrarian Reforms

RA No. 3844
History of the Code of Agrarian Reforms
Code of Agrarian Reforms was initially denominated as Agricultural Land
Reform Code
Administrative Bill submitted by President Diosdado Macapagal.
It was signed into law on August 8, 1963.
Objectives of the Code of Agrarian Reforms
To create a system of owner-cultivatorship and economic family-size as basis of
Philippine agriculture
Code of Agrarian Reforms supplements the CARL, CARL did not repeal the
Code of Agrarian Reforms.
Salient features of Code of Agrarian Reforms
a.
b.
c.
d.

Abolish the share tenancy system and replaced it with agricultural land
Established a bill of rights for agricultural workers
Established the DAR as the machinery for the acquisition and
distribution of agricultural land
Established the LB as financial arm of the agrarian reform program

Code of Agrarian Reforms supplements the CARL

***Share Tenancy where 2 or more persons agree on a joint undertaking for
agricultural production wherein 1 party furnishes the land and the other his labor.

Lessor can be a usufructuary or a legal possessor of such civil law

lessee.
Parties agree to reduce their agreement in writing, the agricultural
leasehold contract shall be:
a. Drawn in quadruplicate in a language or dialect known to the
agricultural lessee
b. Signed or thumb-marked both by agricultural lessee and lessor
before 2 witnesses, to be chosen by each party.
c. Acknowledge before the municipal court of the municipality where
the land is situated
d. Registered with the Municipal Treasurer
**agricultural lessee = cant read = contents of the document shall be
read and explained to him by his witness.
**Municipal Treasurer = custodian of agricultural lease contracts.
**contracts = kept and recorded in the Registry of Agricultural
Leasehold Contracts.
Terms and Conditions of the lease contract
The agricultural lessee and lessor are FREE TO ENTER INTO ANY KIND OF
TERM, CONDITION OR STIPULATION in a leasehold contract, as long as they
are not contrary to law, morals or public policy.
Mode of Payment of rental
In money or;
Should be paid within a reasonable time from threshing or
processing
in produce;
Should be paid immediately after threshing or processing
or BOTH

In agricultural leasehold = the farmer cultivates the land belonging to, or

possessed by, another with the latters consent for a price in money or in produce
in both.

Term of the lease: INDEFINITE

i.e. until the lease is terminated for cause
REASON: agricultural lessee-farmers are entitled to security of tenure.

The Code of Agrarian Reforms abolished share tenancy. All share tenancy
arrangements were automatically converted to lease-hold.

Expiration of lease contract does not terminate the leasehold relation because
agricultural leasehold relationship is not an ordinary contractual relation.
REASON: agricultural lessees re entitled to security of tenure. (Sec 10 of the
Code of Agrarian Reforms)

Extent of application of the leasehold principles under the Code of Agrarian

Reforms
Form of Lease Contract
No particular form is required
The lease agreement can be oral or written
Lessor need not to be the owner of the land

Neither expiration of the lease contract authorizes the landowner to increase the
rentals, unless the landowner introduces capital improvements to increase its
productivity to the consequent increase in production due to said improvements.
Transfer of ownership of the land does not terminate the leasehold relation. The
buyer or transferee becomes the lessor.

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AGRARIAN LAW NOTES (UNGOS)

Death or incapacity of the lessee does not terminate the leasehold relation.
The lessor must choose the successor from among the following, if they are
willing to personally cultivate the landholding:
a. Surviving spouse
b. Eldest direct descendant by consanguinity
c. Next eldest descendant or descendants in the order of their age.
***If none above exists or if above persons are not willing to cultivate the land,
the leasehold relations is EXTINGUISHED (Sec 9 of Code of Agrarian Reforms)
When agricultural leasehold is extinguished
a.

Abandonment of the landholding without the knowledge of the

agricultural lessor
2 Essential Elements
1. Intent to abandon
2. Actual act of abandonment

The lessee may disposed of the landholding on the following grounds:

a. Land has been declared by the appropriate government agency to be
suited for residential, commercial, industrial or some other urban
purposes.
b. Failure of the agricultural lessee to substantially comply with any of the
terms and conditions of the lease contract or any provisions of the
Code of Agrarian Reforms.
c. Agricultural lessee planted crops or used the landholding for a purpose
other than what had been agreed upon
d. Agricultural lessee failed to adopt proven farm practices
e. The land or other substantial permanent improvement thereon is
substantially damaged or destroyed or unreasonably deteriorated
through the fault or negligence of the agricultural lessee.
f.
Agricultural lessee does not pay the lease rental when it falls due
g. The lessee employed a sub-lessee on his landholding
The dispossession is NOT AUTOMATIC. The land-owner-lessor should file the
corresponding petition with DAR Board and prove its existence of the grounds for
dispossession.
Obligations of agricultural lessor and agricultural lessee

b.

Voluntary surrender of the landholding by the agricultural lessee

To constitute a ground for extinguishment of the lease:
1. Surrender of the landholding must be voluntary on the part of the
farmer-lessee
2. Farmer-lessee must serve 3 months advance notice.

c.

Absence of the persons to succeed the lessee, in the event of

death or permanent incapacity of the lessee.

The Agricultural lessee may terminate the leasehold for any of the following
causes:
a.
b.
c.

d.
e.

Cruel, inhumane or offensive treatment of the agricultural lessee or any

of his immediate farm household by the agricultural lessor.
Non-compliance on the part of the agricultural lessor with any of his
obligations under the Code of Agrarian Reforms or lease contract
Compulsion of the agricultural lessee or any member of the farm
household by the agricultural lessor to render any service not
connected with farm work or even without compulsion if no
compensation is paid.
Commission of a crime by the agricultural lessor or his representatives
Voluntary surrender due to circumstances more advantageous to him
and his family.

(1)

(2)

Agricultural Lessor
keep the agricultural lessee in
peaceful
possession
and
cultivation
keep intact such permanent
useful improvements existing
on the landholding at the start
of the leasehold relation

***intended to protect the interest of

the agricultural lessee against
harassment by the agricultural lessor.
Useful improvements are considered
as an important part of the
consideration of the leasehold
contract and to remove or destroy
them = violation thereof.

(1)
(2)

(3)

(4)

(5)

(6)

Agricultural Lessee
cultivate and take care of the
farm
inform
agricultural
lessor
within reasonable time of any
trespass committed by 3rd
persons upon the farm
take reasonable care of the work
animals and farm implements
delivered to him by the agricultural
lessor \
keep his farm and growing crops
attended to during the work
season.
Notify the agricultural lessor at
least 3 days before date of
harvesting or threshing
Pay the lease rental when it falls
due

***destroying any improvement on the landholding is a violation of the agricultural

lessees obligation to take care of the farm, crops, and other improvements on
the landholding with the diligence of a good father of a family.

Dispossession

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AGRARIAN LAW NOTES (UNGOS)

DISPUTES AS TO THE REASONABLENESS OF THE T&Cs may be brought by
the (1) lessee or by (2) DAR to the PROPER COURT.
Rights of agricultural lessor and agricultural lessee
Agricultural Lessor
inspect and observe the extent
of compliance of the T&C of the
lease contract
(2) propose a change in the use of
the
landholding
to
other
agricultural purposes
(3) require the agricultural lessee to
adopt in his proven farm
practices necessary to the
conservations of the land
(4) mortgage expected rentals
**can exercise these rights as long as
it does not interfere with the lessees
peaceful possession of the land.
(1)

(1)
(2)

(3)
(4)

(5)

Agricultural Lessee
To have possession and peaceful
enjoyment of the land
To manage and work on the land in
a manner and method of cultivation
and harvest which conforms to
proven farm practices
To mechanize all farm work
To deal with millers and processors,
attend issuance of quedans and
warehouse receipts for the produce
due him
To have a homelot within the land
that he is leasing.

If the agricultural lessee (1) surrenders; (2) abandons; (3) validly ejected
from his landholding, he is entitled to be indemnified for:
1.
2.

Cost and expenses incurred during cultivation

For of the necessary and useful improvements made by him on the
landholding which are tangible and have not yet lost their utility at the
time of surrender or abandonment of the landholding.

Right of pre-emption
The agricultural lessee has the preferential right to buy the land actually
cultivated by him under reasonable T&C.
If the agricultural lessor decides to sell the landholding, he should give notice to:
a. DAR
b. All lessees affected
If agricultural lessee agrees with the T&Cs of the sale, he must give written
notice to the agricultural lessor of his intention to exercise his RIGHT OF PREEMPTION, and thereafter tender payment of, or present a guarantee certificate
from the Land Bank to the agricultural lessor.
If agricultural lessor refuses to accept such tender of payment, he may consign it
with the court.

Right of Redemption

Land sold to 3rd person without knowledge of agricultural lessee = latter

has the right to redeem the same at reasonable price and consideration
(by filing a petition or request for redemption with DAR within 180 days
from knowledge of the sale)
Redemption Price = reasonable price of the land at the time of sale.
DAR shall initiate, Land Bank shall finance, said redemption. (Sec 12
Code of Agrarian Reforms)

Rights of agricultural workers (same rights and opportunities in life as

industrial workers)
1.
2.
3.
4.
5.
6.

Right to self-organization
Right to engage in concerned activities
Right to minimum wage
Right to work for not more than 8 hours
Right to compensation for personal injuries, death or illness
Right to security of tenure

Acts which the agricultural lessor is forbidden to do:

1.
2.
3.
4.
5.

To dispose the agricultural lessee of his landholding without just cause

To require the agricultural lessee to assume, (directly or indirectly), the
payment of taxes
To require agricultural lessee to assume, (directly or indirectly), any
part of the rent, canon, or other consideration which the agricultural
lessor is obliged to pay to 3rd persons for the use of the land
To deal with millers or processors without written authorization of the
lessee
To discourage (directly or indirectly) the formation of maintenance or
growth of unions or organizations of agricultural lessees in the
landholding

Acts which the agricultural lessee is forbidden to do:

1.
2.

To work additional landholdings belonging to a different agricultural

lessor
To employ a sub-lessee on his landholding

PURPOSE of the prohibition: to prevent agricultural lessee from dissipating his

labor and efforts in various landholdings at the expenses of the first agricultural
lessor.

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AGRARIAN LAW NOTES (UNGOS)

Agricultural leasehold is PERSONAL in character = agricultural lesseemust
personally work and cultivate the landholding.

Prescription of action
Prescriptive period from filing an action to enforce the rights and obligations
under the Code of Agrarian Reforms is 3 years from the times the cause of
action accrued.

To be enforceable, loans obtained by an agricultural lessee should be:

1. Written in a language or dialect known to the agricultural lessee
2. Signed or thumb-marked by the agricultural lessee or by his agent.

Department of Agrarian Reform

The Code of Agrarian Reforms re-named the Land Authority (implementing arm
of the agrarian reform program) as the Department of Agrarian Reform.

Properties of the lessee that are exempt from liens or execution

Functions: See pages 176-177 of Ungos Book

25% of the entire produce of the land under cultivation

Work animals and farm implements EXCEPT upon judgement of its
price or upon judgement of foreclosure of a mortgage

**the exemption cannot be waived for the reason that it intended to provide
sustenance for the lessee and his family from one harvest to the next. (Maniego
vs Castelo)

Land Bank

Created by Code of Agrarian Reforms

Financial arm of the agrarian reform program

Powers: See pages 178-180 of Ungos Book

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