Form of Lease Contract

NO particular form is required, it may be oral or written as long as it is in

quadruplicate in a language or dialect understandable to the agricultural lessee.,
signed or thumb marked by both contracting parties, witnessed by their own
chosen witnesses, acknowledge before the municipal court and registered to the
Municipal Treasurer.

Since, no form is required. It is understood that the agreement is an autonomous

type of contract governed by our civil law with the exception that it is not
contrary in LAWS, MORALS, AND PUBLIC POLICY.

Mode of Payment can be through Money or Produce or both.

Term of lease is INDEFINITE because the government and the law entitles these
farmers to security of tenure.

Expiration of Leasehold Contract does not terminate leasehold relations (CAR

Section 10)

As well as the Death of Physical Incapacity of the lessee in pursuant to CAR

Section 9

Prohibition to Agricultural Lessee:1

 To work additional landholdings belonging to a different agricultural lessor; and
 To employ a sub-lessee on his landholding

Memorandum of Loans:2
 Written in a language or dialect known to the agricultural lessee; and
 Signed or thumb-marked by the agricultural lessee or by his agent.

Exception from Lien and/or Execution:3

 25% of the entire produce of the land under cultivation; and

1
RA 3844, Sec 27
2
RA 3844, Sec 20
3
RA 3844, Sec 21
  Work animals and farm implements, except upon a judgment for its price or upon judgment of
foreclosure of a mortgage thereon.

Statute of Limitations:4
An action to enforce any cause of action under this Code shall be barred if not commenced within three
years after such cause of action accrued.

The Department of Agrarian Reform:5

 Serves as the implementing arm of the agrarian reform program.
 Directly under the control and supervision of the President of the Philippines.
 Has two-fold jurisdiction
o Executive (pertains to the enforcement and administration of agrarian laws)
o Judicial (pertains to the determination of rights and obligations of the parties)

Executive Powers and Functions:6

1. Implement laws, programs and policies for the acquisition and distribution of all
agricultural lands as provided by law.
2. Resettle landless farmers and farm workers in government-owned agricultural estate
which shall be distributed to them as provided by law.
3. Recommend and provide incentives for voluntary sharing of lands by owners of
agricultural lands.
4. Acquire, determine the value, subdivided into family-size farms, develop and distribute
to qualified tillers, actual occupants and displaced urban poor, private agricultural lands
regardless of area and crops planted.
5. Administer and dispose of, under a settlement scheme, all portions of the public domain
declared alienable and disposable lands for speedy distribution to and development by
deserving and qualified persons who do not own any land and under such terms and
conditions as the Department may prescribe, giving priority to qualified and deserving
farmers in the province where such lands are located.
6. Provide creative, responsive and effective information, education and communication
programs and projects both for the tenant beneficiaries, landowners, the government
and private sectors and the general public, thereby generating a broad spectrum of
support and understanding of the new agrarian reform program.
7. Strengthen agrarian reform beneficiaries organizations to a degree of national viability
that would enable them to share in the shaping of government policies and

4
RA 3844, Sec 38
5
http://www.dar.gov.ph/
6
Title XI, Administrative Code of 1987; Sec 49, RA 6389
 institutionalize farmers’ participation in agrarian reform policy formulation, program
implementation and evaluation.
8. Promote the organization and development of cooperatives of agrarian reform
beneficiaries and register the same.
9. Undertake land surveys on lands covered by agrarian reform, and issue patents to
farmers covered by agrarian reform, both on private and public lands.
10. Develop, implement and undertake alternative and innovative land development
schemes and land tenure systems such as, but not limited to land consolidation, land
forming, cooperative farming and agro-industrial estates.
11. Approve or disapprove conversion of agricultural lands to non-agricultural uses such as
residential and industrial conversions in accordance with the existing provisions of law.
12. Undertake land use management studies.
13. Compensate landowners covered by agrarian reform.
14. Integrate and synchronize program implementation of the Land Bank of the Philippines
and other relevant civilian and military government and private entities involved and
mandated to support the agrarian reform program through Inter-Agency Committees
and Agrarian Reform Coordinating Councils
15. Perform such other functions as may be provided by law.

Judicial Powers and Functions:7

1. Provide free legal assistance to farmers covered by agrarian reform and expedite the
resolution of agrarian conflicts and land tenure problems either through conciliatory or
adversary proceedings.
2. Implement all agrarian reforms laws and for this purpose issue subpoena, subpoena
duces tecum, and writs of execution of its orders, and decisions and other legal
processes to ensure compliance from all parties concerned for successful and
expeditious program implementations.

The Land Bank of the Philippines:8

 Financial arm of the agrarian reform program.
 Shall be responsible for rendering staff advice and assistance to the Secretary of the Department
down to Barangay Agrarian Reform Council.

Powers and Functions:9

1. To prescribe, repeal and alter its own by-laws to determine its operating policies, and to issue
such rules and regulations as may be necessary.

7
Chapter XII, RA 6657
8
https://www.landbank.com/
9
Code of Agrarian Reform, Sec 75, as amended by PD 251, July 21, 1973
2. To adopt, alter and use a corporate seal.

3. To hold, purchase, acquire and own real and personal property, introduce necessary
improvements thereon to enhance and develop their social and economic values, and to sell,
mortgage or otherwise dispose of the same.

4. To sue and be sued, make contracts, negotiate and secure loans from both local and foreign
sources.

5. To grant short, medium and long term loans and advances against security of real estate
and/or other acceptable assets for the establishment, development or expansion of agricultural,
industrial, home building or home financing projects and other productive enterprises.

6. To finance and/or guarantee the acquisition, under Presidential Decree No. 85 dated
December 25, 1972, of farm lots transferred to tenant-farmers pursuant to Presidential Decree
No. 27 dated October 21, 1972.

7. To underwrite, hold, own, purchase, acquire, sell, mortgage, dispose or otherwise invest or
reinvest in stocks, bonds, debentures, securities and other evidence of indebtedness of other
corporations and of the government or its instrumentalities which are issued for or in
connection with any project or enterprise.

8. The provision of any law to the contrary notwithstanding, to guarantee acceptance(s),

credits, loans, transactions or obligations of any person, co-partnership, association or
corporation in favor of any financing or banking institution, whether foreign or domestic:
Provided, That the proceeds of such acceptances, credits, loans, transactions or obligations are
utilized or earmarked for the development and/or expansion of agriculture and industry.

9. To borrow from, or rediscount notes, bills of exchange and other commercial papers with, the
Central Bank. The rate of interest to be charged and the conditions on such obligations or
borrowings shall be subject to the rules and regulations of the Monetary Board.

10. To act as trustee, or administer any trust or hold property in trust in accordance with the
provisions of law governing trust corporations.

11. To act as an official government depository with full authority to maintain deposits of the
government, its branches, subdivisions and instrumentalities, and of government –owned-or-
controlled corporations which deposits shall be subject to liquidity floor and/or reserve
requirements as may be imposed by the Monetary Board upon other commercial banks.

12. For the strengthening of the capital base of the bank, to establish a national marketing
umbrella for farmers and fisheries cooperatives to attract massive capital formation from
savings deposits of the cooperative members nationwide.
13. To exercise the general powers mentioned in the Corporation Law and the General Banking
Act, as amended, insofar as they are not consistent or incompatible with this Decree.