CHAPTER IV: REGISTRATION SECTION 14. Registration of Landowners. — Within one hundred eighty (180) days from the effectivity of this Act, all persons, natural or juridical, including government entities, that own oF claim to own agricultural lands, whether in their names or in the name of others, except those who have already registered pursuant to Executive Order No. 229, who shall be entitled to such incentives as may be provided for the PARC, shall file a sworn statement in the proper assessor's ‘office in the form to be prescribed by the DAR, stating the following information: (a) the description and area of the property; (b) the average gross income from the property for at least three (3) years; (©) the names of all tenants and farmworkers therein (a) the crops planted in the property and the ares covered by each erop as of June 1, 1987; (©) the terms of mortgages, leases, and management contracts subsisting as of June 1, 1967; and (© the latest declared market value of the land as determined by the city or provincial assessor. NOTES: ‘Sworn statement ‘The purpose of the sworn statement is to help the Department of Agrarian Reform identify the lands and their owners for effective {implementation of the agrarian reform program. 58 See. 15 ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198859) (CHAPTER IV: REGISTRATION SECTION 15. Registration of Beneficiaries. — The DAR in coordination with the Barangay Agrarian Reform Committee (BARC) as organized in this Act, shall register all agricultural lessees, tenants and farmworkers who are qualified to be beneficiaries of the CARP. These potential beneficiaries with the assistance of the BARC and the DAR shall provide the following data: (a) names and members of their immediate farm household; (b) owners or administrators of thelands they work on and the length of tenurial relationship; ()_ location and area of the land they work; (@)_ crops planted; and (e) their share in the harvest or amount of rental paid or wages received. A copy of the registry or list of all potential CARP beneficiaries in the barangay shall be posted in the barangay hall, school or other public buildings in the barangay where it shall be open to inspection by the public at all reasonable hours. NOTES: Purpose of the Provision on Beneficiary Registration ‘The purpose of requiring registration of agricultural lessees, tenants and farmworkers is to develop a databank of potential and qualified beneficiaries for the effective implementation of the ‘agrarian reform program.* "Department of Agrarian Reform Administrative Order No. 03, series of 2008,Sec.16 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198861 CHAPTER V: LAND ACQUISITION of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision. (€) Upon receipt by the landowner of the corresponding payment or, in case of rejec or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall CHAPTER V: LAND ACQUISITION SECTION 16. Procedure for Acquisition and Distribution of Private Lands. — For purposes of acquisition of private lands, the following procedures shall be followed: (a) After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions take immediate possession of the land and shall request the proper Register of Deeds to issue a ‘Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries. (© Any party who disagrees with the deci- sion may bring the matter to the court of proper jurisdiction for final determination of just compen- sation.’ hereof. (b) Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail, the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer. (c) If the landowner accepts the offer of the DAR, the Land Bank of the Philippines (LBP) shi pay the landowner the purchase price of the land within thirty (30) days after he executes and d ers a deed of transfer in favor of the Government and surrenders the Certificate of Title and other monfilments of title. NOTES: Gompulsory Acquisition Compulsory acquisition is a mode of land acquisition whereby government acquires private agricultural lands under the procedure described in Section 16 of the Comprehensive Agrarian Reform Law of 1988 and relevant regulations. Compulsory Acquisition Process ‘This provision outlines the procedure to be followed in ompulsory acquisition of agricultural lands. Simply stated, the procedure is as follows: 1) Identification by the Department of Agrarian Reform of the land, landowner and beneficiary; (d)_In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the 2) Notice by the Department of Agrarian Reform land by requiring the landowner, the LBP and other to the landowner about the compulsory acquisition and interested parties to submit evidence as to the just the price offer, through the following means: compensation for the land, within fifteen (15) days a notice or by registered mail; and from the receipt of the notice. After the expiration tees, See 60 ended by Republic Aet No. 700a AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 16 b) Posting of the notice in a conspicuous place in the barangay hall and municipal hall where the land is located; 3) Reply by the landowner about his acceptance or rejection of the offered price: a) Ifthe landowner accepts the offered price ~ the Land Bank will pay the landowner within thirty (30) days from execution and delivery of Deed. of Transfer; b) If the landowner rejects the offer — the Department of Agrarian Reform will determine the just compensation through summary administrative proceedings; or ©) If the landowner disagrees with the decision of the Department of Agrarian Reform, he may bring the matter to the regular courts of justice for final determination of just compensation; 4) Taking of immediate possession of the land by the Department of Agrarian Reform: a) Ifthe landowner receives the correspond- ing payment; or b) _ If the landowner does not respond to the Notice of Acquisition; 5) Request by the Department of Agrarian Reform to the Register of Deeds to issue a Transfer Certificate of Title to the Republic of the Philippines; and 6) Distribution of the land to the qualified benefi- ciaries. Identification of Land, Landowners, and Beneficiaries ‘The first step in compulsory acquisition is the identification of the land, the landowners, and the farmer beneficiaries, However, the law is silent on how the identification process shall be made.* To fill this gap, the Department of Agrarian Reform, *Sta, Rova Realty Development Corp. v. Court of Appeals, OLR. No. 112526 lOctober 12, 2001], 419 Phil. 457-480. Sec.16 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 63 ‘CHAPTER V: LAND ACQUISITION has issued Administrative Order No. 07, series of 2011 setting forth, among others, the acquisition and distribution process of the Comprehensive Agrarian Reform Program. As regards this first step in compulsory acquisition, the procedure is essentially as follows: 1) The Provincial Office of the Department of the Agrarian Reform generates: a) a list of landholdings grouped according to the prioritized phasing under the Comprehensive Agrarian Reform Law of 1988? and relevant regula- tions. This list is provided to the Municipal Office of the of the Department of the Agrarian Reform; and b) a list of the lands for which notices of coverage had already been issued and served.* Such list is provided to the Municipal Agrarian Reform Officer; 2) ‘The Municipal Agrarian Reform Officer, together with the Barangay Agrarian Reform Committee: a) prepares a preliminary list of potential qualified Agrarian Reform Beneficiaries of the sub- ject landholdings, clearly stating the beneficiaries’ ‘qualification as a lessee, tenant, regular farmwork- ‘er, seasonal farmworker, other farmworker, actual tiller or occupant of public land, or others directly ‘working on the land; b)__ screens and selects qualified beneficiaries under Section 22 of the Comprehensive Agrarian Reform Law of 1988 and thereafter includes qualified beneficiaries in a master list,’ 3) Next, the Municipal Agrarian Reform Officer continues with the process of land acquisition and "Under Section 7. “Department of Agrarian Reform Administrative Order No. 07, series of 2011, Section 5. 1, at Section 3. “1, at Section 63. "Id, at Section 54.on AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 16 distribution," in which the landowner is issued a notice of coverage on his land* and afforded an opportunity to exercise the right of retention;!° 4) ‘The Provincial Agrarian Reform Officer then conducts land surveys, after which the Municipal Agrarian Reform Officer, Barangay Agrarian Reform Committee member, and Land Bank of the Philippines, representative conduct ficld investigations to complete the valuation of the land, among others;!" and 5) The Land Bank of the Philippines thereafter determines the initial valuation of the covered landhold- ing.® The provisions of Section 16 of the Comprehensive Agrarian Reform Law of 1988 shall apply in that from this point, the Provincial Agrarian Reform Officer issues a Notice of Land Valuation and Acquisition, transmits the same to the Municipal Agrarian Reform Officer, and directs the latter to serve the notice to the landowner." ‘Two Notices Are Required for Validity of Implementation For a valid implementation of the agrarian reform program, ‘two notices to the landowner are required, namely: 1) Notice of Coverage under Department of Agrarian Reform Administrative Order No. 07, series of 2011; and 2) Notice of Acquisition under Section 16 of the Comprehensive Agrarian Reform Law. ‘The importance of the first notice is that it is designed to comply with the requirements of administrative due process. The implementation of the Comprehensive Agrarian Reform Law of 1988 is an exercise of the State's police power and the power of ‘eminent domain. To the extent that the Comprehensive Agrarian "Department of Agrarian Reform Administrative Order No, 07, series o eu series of 2011, Id, at Section 15. fd, at Section 27 fd, at Sections 65 and 68. "fd, at Section 72 1d, at Section 73. ve.16 ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 65 CHAPTER V: LAND ACQUISITION Reform Law of 1988 prescribes retention limits to the landowners, there is an exercise of police power for the regulation of private property in accordance with the Constitution. But where, to carry jut such regulation, the owners are deprived of lands they own in ‘xcess of the maximum area allowed, there is also a taking under the power of eminent domain. The taking contemplated is not mere limitation on the use of the land, What is required is the surrender ofthe title to and physical possession of the excess and all beneficial rights accruing to the owner in favor of the farmer beneficiary. Land Acquisition Procedure Should Be Strictly Construed Since land acquisition under the agrarian reform law is an extraordinary method of expropriation, it must be strictly construed. Hence, the failure of the Department of Agrarian Reform or any of its agencies to comply with the proper procedure for expropriation, ‘eg when no Notice of Coverage was issued, it should be treated fas violation of constitutional due process and should be deemed rbitrary, capricious, whimsical, and tainted with grave abuse of discretion. When Title or Ownership of the Land Is Transferred to the State ‘Title to the expropriated property shall pass from the owner to the expropriator only upon full payment of just compensation." Until the just compensation is finally determined and fully paid, the {itle and ownership remains with the landowner. This is so even if Department of Agrarian Reform has deposited the offered price with Land Bank. The mere fact, therefore, that the Department of Ayrarian Reform has deposited the offered price does not warrant the cancellation of the owner's title. “Department of Agrarian Reform v. Robles, G.R. No. 190482 (December 4, e010, sta. Rosa Reutty Development Corp. o. Court of Appoate, G.R. No, 11252 (Ostober 12, 2001), 419 Phil. 457-480. "Cabral v. Heirs of Adolfo, G.R. No. 191615 [August 2, 2017) Heirs of Deleste © Land Bank of the Phils, G.R. No. 169913 [June 8, 2011], 666 Phil. 50-392, citing Heirs of Jugaibot v. Court of Appeals, G.R. No. 170346 [March 12, 2007], 947 Phil 118-180. ‘Land Bank of the Phils. v, Dumlao, GR. No. 167809 [November 27, 2006), iv? Phil, 486-517, citing Association of Small Landowners in the Philippines, Inc. v Neeretary of Agrarian Reform, GR, No, 78742, 79910, 79744, 79777 [duly 14, 1989), Phil, 77.89768 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 16 Opening of Trust Account Does Not Constitute Payment Opening of a trust account does not constitute payment because the law requires just compensation to be paid in cash and Land Bank bonds and not by trust account.” "Land Bank of the Phils. v. Spouses Avancefa, GR. No. 190520 (May 30, 2016), citing Heirs of Tantoco, Sr. v. Court of Appeale, G.R. No, 149621 [May 5, 2006), 1523 Phil. 257-285. CHAPTER VI: JUST COMPENSATION SECTION 17. Determination of Just Compensation. — In determining just compensation, the cost of acquisition of the land, the value of the standing crop, the current value of Mike properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, the assessment made by government assessors, and seventy percent (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR), translated into a basic formula by the DAR shall be ‘considered, subject to the final decision of the proper court. ‘The social and economic benefits contributed by the farmers nd the farmworkers and by the Government to the property ‘au well as the nonpayment of taxes or loans secured from any government financing institution on the said land shall be considered as additional factors to determine its valuation.’ NOTES: Concept of Just Compensation Just compensation has been defined as “the full and fair ‘¢juivalent of the property taken from its owner by the expropriator.” ‘The measure is not the taker’s gain, but the owner's loss.* The word *just” is used to intensify the meaning of the word “compensation” to vonvey the idea that the equivalent to be rendered for the property Jobe taken shall be real, substantial, full, and ample The amended by Republic Act No. 9700. ‘Land Bank ofthe Philippines. Her of Marco, Sr. GR. No, 175726 [March a, 017)ccking Land Bank of the Pile Honeycomb Farms Cor. GR. No, 168908 [Pabruars 29, 2013], 683 Phil 247266. “td, citing Asniaton of Small Landowners the Philippine, nev. Secretary (Agrarian Reforms GA. Nox, 78742 7910, 7974, and 7977 (uly 14, 1080), 256 nee. o68 AGRARIAN LAW AND SOCIAL LEGISLATION See.17 ‘The concept of just compensation embraces not only the correct determination of the amount to be paid to the landowner, but also “prompt payment,” ie., payment within a reasonable time from its taking. There is no “prompt payment” when imbursement is conditioned upon the Land Bank's approval and release of the amount is made to depend upon compliance with some documentary requirements.* Prompt payment of just compensation does not only contem- plate the immediate deposit and release of the provisional compen- sation — it also encompasses the full payment of the finally adjudged just compensation. There can be no “prompt payment” when there is only partial payment of just compensation.* Without prompt pay- ment, compensation cannot be considered “just” because the land- owner is made to suffer the consequence of being immediately de- prived of his land while being made to wait for some time before actually receiving the amount necessary to cope with his loss." Just Compensation in the Various Agrarian Reform Laws" When Congress enacted the Land Reform Act of 1955,* it prescribed the following factors in determining just compensation: (a) Prevailing prices of similar lands in the imme- diate are (b) Condition of the soil, topography, and climate hazards; (©) Actual production; (@) Accessibility; and () Improvements.* “Land Bank of the Phils. v. Obias, @.R. No. 184406 {March 14, 2012), 684 Phil. 296-305 citing Land Bank ofthe Phils... Soriano, @.R. Nos. 180772 and 180776 [May 6, 2010), 634 Phil 426-436. Land Bank ofthe Philippines v. Santos, O.R. No, 213863 and 214021 (January 27, 2016] citing Land Bank ofthe Phils. v. Spouses Orilla, GR. No. 157206 (June 27, 12008), 578 Phil. 663-679. “Land Bank of the Phils. . Spouses Avancena, G.R. No, 190520{May 30, 2016) "As sot forth in Alfonso v. Land Bank ofthe Philippines, G.R. Nos. 181912 and 183847 (November 29, 2016). "Republic Aet No. 1400 /Seprember 9, 1955) td, at Section 1202), (ioc. 17 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198869 CHAPTER VI: JUST COMPENSATION In 1963, it then enacted the Agricultural Land Reform Code,” Which determined compensation based on the annual lease rental income, in addition to other factors that may be considered.” 1n 1972, President Ferdinand Mareos passed the Tenant Eman- cipation Law prescribing a fixed production-based mathematical formula of land value at two and one-half (2.5) times the average harvest of three normal crop years. ‘Then in 1987, President Corazon C. Aquino issued Executive Order No. 228" basing land value on average gross production ‘multiplied by two and one-half (2.5), the product of which was, in turn, multiplied by the Government Support Price of a cavan of palay oF corn. Determining Just Compensation Under the Comprehensive ‘Agrarian Reform Law of 1988 Under Section 17, Congress identified the following factors to he considered in determining just compensation in the expropriation of agricultural lands: 1) cost of acquisition of the land; 2) the value of the standing crop: 3) current value of like properties; 4) nature of the land; 5) actual use of the land; 6) income of the land; 7) sworn valuation by the owner; 8) tax declarations; 9) assessment made by government assessors; 10) zonal valuation of the Bureau of Internal Revenue; "Republic Act No. 3844, us amended (August 8, 1963} "fd, at Section 6. ‘*Prosidential Decroe No, 27, as amended (October 21, 1972. duly 17, 198710 AGRARIAN LAW AND SOCIAL LEGISLATION ‘See.17 11) social and economic benefits contributed by the farmers and the farmworkers and by the Government to the property; and 12) nonpayment of taxes or loans secured from any government financing institution on the said land, Land Valuation Factors ‘The following factors are used in the valuation of lands: 1) Capitalized Net Income (CNI) which is based on land use and productivity; 2) Comparable Sales (CS) which is based on 70% of the Bureau of Internal Revenue zonal value; and 3) Market Value (MV) which is based on the Tax Declaration.’ Basic Formula When All Factors Are Present When all of the foregoing factors are present, the basic formula is as follows: (CNI 0.60) +(CS x 0.30) + (MV x 0.10) = Land Value" Formula When Comparable Sales Factor |s Not Present Ifthe Comparable Sales (CS) factor is not present, the formula is as follows: (CNI x 0.90) + (MV x 0.10) Land Value'* Formula When Capitalized Net Income Factor Is Not Present If the Capitalized Net Income (CNI) factor is not present, the formula is as follows: (CS x 0.90) + (MV x 0.10) = Land Value” “Department of Agrarian Reform Administrative Order No. 07, series of 2011, Section 85, Md “ia. ‘td Sec, 17 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198871 (CHAPTER VI: JUST COMPENSATION ‘The Formula When Comparable Sales and Capitalized Net Income Factors Are Not Present If the Comparable Sales (CS) and Capitalized Net Income (CND factor are not present, the formula is as follows: ‘MV x 2=Land Value* Reckoning of Valuation In determining just compensation, the value of the property tat the time it was taken from the owner and appropriated by the government shalll be the basis.” ‘The “time of taking” is that event when the landowner was deprived of the use and benefit of his property, such as when title is transferred to the Republic of the Philippines,” or when the title is transferred in the name of the beneficiaries." “Taking” filso occurs when agricultural lands are voluntarily offered by a landowner and approved by Presidential Agrarian Reform Council for Comprehensive Agrarian Reform Program coverage through the tock distribution scheme.#* If the government takes possession of the land before the institution of expropriation proceedings, the value should be fixed ‘us of the time of the taking of possession, not of the filing of the ‘complaint. When the agrarian reform process is still incomplete as the just compensation due the landowner has yet to be settled, just eompensation should be determined, and the process concluded, lunder Section 17 of the Comprehensive Agrarian Reform Law of 1988, which contains the specific factors to be considered in ;parkment of Agrarian Reform Administrative Order No. 07, series of 2011, tion 85, “Hacienda Luisita, Inc. 0. Presidential Agrarian Reform Council, G.R. No, 171101 (Resolution) (April 24, 2018), 698 Phil. 977 477. **Land Bank ofthe Phils. Livioeo, G-R. No. 170685 {September 2, 2010], 645 Phil. 197-368; Department of Agrarian Reform v. Galle, G.R. Nos. 171836 and 196213 (Revolution) {October 2, 2017) *\Land Bank of the Phils. v. Heirs of Alsua, G.R. No, 211951 [February 4, 2016]; Weirs of Feliciano, Jr Land Bank ofthe Philippines, GR. No. 215290 January 11, yor. "Hacienda Luisita, Ine. v. Presidential Agrarian Reform Council, GR. No. 171101 (Resolution) [Aprii 24, 2012), 686 Phil. 977-477. "a,2 AGRARIAN LAW AND SOCIAL LEGISLATION See.17 ascertaining just compensation.” The retroactive application of the Comprehensive Agrarian Reform Law of 1988 is not only statutory but is also founded on equitable considerations. As held by the Supreme Court in Lubriea v. Land Bank of the Phils..* “(Petitioners were deprived of their properties in 1972 but have yet to receive the just compensation therefor. ‘The parcels of land were already subdivided and distributed to the farmer-beneficiaries thereby immediately depriving petitioners of their use. Under the circumstances, it would be highly inequitabl on the part of the petitioners to compute the just compensation using the values at the time of the taking in 1972, and not at the time of the payment, considering that the government and the farmer- beneficiaries have already benefited from the land although ownership thereof have not yet been transferred in their names. Petitioners were deprived of their properties without payment of just compensation which, under the law, is a prerequisite before the property can be taken away from its owners. The transfer of possession and ownership of the land to the government are conditioned upon the receipt by the landowner of the corresponding payment or deposit by the [Department of Agrarian Reform) of the compensation with an accessible bank. Until then, title remains with the landowner. xxx “We also note that the expropriation proceedings in the instant case was initiated under [Presidential Decree] No. 27 but the agrarian reform process is still incomplete considering that the just compensation to be paid to petitioners has yet to be settled. Considering the passage of [Republic Act] No. 6657 before the completion of this process, the just compensation should be determined and the process concluded under the said law. Indeed, [Republic Act] No. 6657 is the applicable law, with [Presidential Decree] No, 27 and [Executive Order] No, 228 having only suppletory effect. "Land Bank of the Philippines v. Spouses Chu, G-R. No, 192345 [March 29, 20171 *G.R. No, 170220 [November 20, 2006), 587 Phil. 571-584, fe. 17 THE COMPREHENSIVE AGRARIAN REFORM LAWOF 1988 73 CHAPTER VI: JUST COMPENSATION, xxx “Petitioners were deprived of their properties way back in 1972, yet to date (2006), they have not yet received just compensation. Thus, it would certainly be inequitable to determine just compensation based on the guideline provided by [Presidential Decree] No. 227 and (Executive Order] No. 228 considering the failure to determine just compensation for a considerable length of time. That just compensation should be determined in accordance ‘with [Republic Act] No. 6657 and not [Presidential Decree] No. 227 or [Executive Order] No. 228, is important considering that just compensation should be the full and fair equivalent of the property taken from its owner by the expropriator, the equivalent being real, substantial, full and ample. Procedure for Determination of Just Compensation ‘The determination of just compensation under the Compre- Honsive Agrarian Reform Law of 1988 commences with Land Bank determining the value of the lands." Using Land Bank’s valuation, the Department of Agrarian Hoform makes an offer to the landowner. In case the landowner rejects the offer, the Department of ‘Agrarian Reform conducts a summary administrative proceeding? W determine the compensation for the land by requiring the landowner, the Land Bank, Department of Agrarian Reform officers, beneficiaries and other interested parties to submit evidence as to just compensation.” A party who disagrees with the decision of adjudicator may bring the matter to the Regional Trial Court ignated as a Special Agrarian Court for final determination of ‘st compensation. *imphasis supplied. "Department of Agrarian Reform Administrative Order No, 07, series of 2011, Hoethon 72, id, at Setion 73 2009 Department of Agrarian Reform Adjudication Board Rules of Procedure, Huo xix Ud, at Section 3™ AGRARIAN LAW AND SOCIAL LEGISLATION ‘See.17 Role of the Department of Agrarian Reform Adjudication Board ‘The Department of Agrarian Reform Adjudication Board or its Provincial Agrarian Reform Adjudicators can conduct a summary administrative proceeding for the preliminary determination of just compensation in order to determine whether land valuation ‘computations of the Land Bank are in accordance with the rules or administrative orders." ‘The preliminary proceedings of land valuation for the purpose of the determination of just compensation for its acquisition shall be conducted by: 1) Provincial Agrarian Reform Adjudicators — when the initial land valuation of the Land Bank is less than Ten Million Pesos (Php10,000,000.00); 2) Regional Agrarian Reform Adjudicators — when the initial land valuation of the Land Bank is Ten Million Pesos (Php10,000,000.00) to Fifty Million Pesos (Php50,000,000.00); and 3) Department of Agrarian Reform Adjudication Board — when the initial land valuation of the Land Bank is above Fifty Million Pesos (Php50,000,000.00). In the event of nonavailability, inhibition or disqualification of a designated Provincial Agrarian Reform Adjudicators in the locality, the Regional Agrarian Reform Adjudicators concerned may conduct preliminary proceedings of land valuation notwithstandi that the jurisdictional amount is less than Ten Million Pesos (Php10,000,000.00). On account of nonavailability, inhibition or disqualificatis of the Regional Agrarian Reform Adjudicators concerned, Department of Agrarian Reform Adjudication Board may condi the preliminary proceedings of land valuation or designate the same to an Adjudicator from among the Provincial Agrarian Reform, ‘Adjudicators in the region.* 2000 Department of Agrarian Reform Adj Rule XIX, Sections Land 2 1d, at Section 2 Sec.17 THE COMPREHENSIVE AGRARIAN REFORMLAW OF 1988 75, CHAPTER VI: JUST COMPENSATION Valuation Set by the Department of Agrarian Reform Not Conclusive ‘The valuation set by the Land Bank is not conclusive. The landowner can still contest the same in the proper court, i.e., the Regional ‘Trial Court designated as Special Agrarian Court. The 2009 Department of Agrarian Reform Adjudication Board Rules of Procedure* provides as follows: “SECTION 6. Filing of Original Action with the Special Agrarian Court for Final Determination. — The party who disagrees with the decision of the Board/ Adjudicator may contest the same by filing an original action with the Special Agrarian Court (SAC) having jurisdiction over the subject property within fifteen (15) days from his receipt of the Board/Adjudicator’s decision. “Immediately upon filing with the SAC, the party shall file a Notice of Filing of Original Action with the Board/Adjudicator, together with a certified true copy of the petition filed with the SAC. “Failure to file a Notice of Filing of Original Action ‘or to submit a certified true copy of the petition shall render the decision of the Board/Adjudicator final and ‘executory. Upon receipt of the Notice of Filing of Original Action or certified true copy of the petition filed with the SAC, no writ of execution shall be issued by the Board/ Adjudicator.” ling Rule Regarding the Determination of Just Compensation Courts should consider the factors stated in Section 17 of the hensive Agrarian Reform Law of 1988, as translated into upplicable Department of Agrarian Reform formulas, in their mination of just compensation for the properties covered by the Jaw. If, in the exercise of their judicial discretion, the courts find 4 strict application of said formulas is not warranted under ‘specific circumstances of the case before them, they may deviate therefrom, provided that this departure or deviation is Widor Weake XIX6 AGRARIAN LAW AND SOCIAL LEGISLATION See. 18 supported by a reasoned explanation grounded on the evidence on record.* Consent of Beneficiary Not Necessary in Determining Just ‘Compensation The consent of the farmer-beneficiary is not required in determining the proper compensation of the landowner. Gleaned from the provisions of the Comprehensive Agrarian Reform Law of 1988, the only parties in the valuation of land are the landowner, the Department of Agrarian Reform, and the Land Bank. Thus: “SECTION 18. Valuation and Mode of Compensa- tion. — The LBP shall compensate the landowner in such amount as may be agreed upon by the landowner and the DAR and the LBP in accordance with the criteria provided for in Sections 16 and 17 and other pertinent provisions hereof, or as may be finally determined by the court as the just compensation for the land.™™ ‘The law does not mention the participation of the farmer- beneficiary. Therefore, the Land Bank cannot refuse to pay the valuation set by the Provincial Agrarian Reform Adjudicator simply because the consent of the farmer-beneficiary was not obtained in fixing the just compensation.” SECTION 18. Valuation and Mode of Compensation. — The LBP shall compensate the landowner in such amounts as may be agreed upon by the landowner and the DAR and the LBP, in accordance with the criteria provided for in Sections 16 and 17 and other pertinent provisions hereof, or as may be finally determined by the court, as the just compensation for the land. ‘The compensation shall be paid in one of the following modes, at the option of the landowner: “Alfonso wv. Land Bank of the Philippines, G.R. Nos. 181912 and 183347 [November 29, 2016]. Emphasis supplied. "Land Bank of the Phils. v. Court of Appeals, G.R. No, 128667 [December 20, 19991, $78 Phil, 1248-1266. Sec. 18 ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988, CHAPTER VI: JUST COMPENSATION (2) Cash payment, under the following terms and conditions; (a) For lands above fifty (60) hectares, insofar as the excess hectarage is concerned — ‘Twenty-five percent (25%) cash, the balance to be paid in government financial instruments negotiable at any time. (b) For lands above twenty-four (24) heetares and up to fifty (50) hectares - Thirty percent (30%) casi balance to be paid in government financial instruments negotiable at any time. (©). For lands twenty-four (24) hectares and below — Thirty-five percent (35%) cash, the balance to be paid in government financial instruments negotiable at any time. (2) Shares of stock in government-owned or controlled corporations, LBP preferred shares, physical assets or other qualified investments in accordance with guidelines set by the PARC; (3) Tax credits which can be used against any tax liability; (4) LBP bonds, which shall have the following features: (a) Market interest rates aligned with 91-day treasury bill rates. Ten percent (10%) of the face value of the bonds shall mature every year from the date of issuance until the tenth (10th) year: Provided, That should the landowner choose to forego the cash portion, whether in full or in part, he shall be paid correspondingly in LBP bonds; (6) Transferability and _negotiability. ‘Such LBP bonds may be used by the landowner, his successors in interest or his assigns, up to the amount of their face value, for any of the following: 4 Acquisition of land or other re: properties of the government, including 120 AGRARIAN LAW AND SOCIAL LEGISLATION See. 18 instruments, shares of stock in government-owned or controlled corporations, tax credits or Land Bank bonds." As rationalized by the Supreme Court in Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform:” “It cannot be denied from these cases that the traditional method for the payment. of just compensation is money and no other. And so, conformably, has just compensation been paid in the past solely in that medium. However, we do not deal here with the traditional exercise of the power of eminent domain. This is not an ordinary expropriation where only a specific property of relatively limited area is sought. to be taken by the State from its ‘owner for a specific and perhaps local purpose. What we deal with here is a revolutionary kind of expropriation, xxx “Accepting the theory that payment of the just compensation is not always to be made fully in money, we find further that the proportion of cash payment to the other things of value constituting the total payment, as determined on the basis of the areas of the lands expropriated, is not unduly oppressive upon the landowner. It is noted that the smaller the land, the bigger the payment of money, primarily because the small landowner will be needing the it more than the big landowners, who can afford bigger balance in bonds and other things of value. No less importantly, the government financial instruments making up the balance of the payment are ‘negotiable at any time.’ The other modes, which are likewise available to the landowner at his option, are also not unreasonable because payment is made in shares of stock, [Land Bank] bonds, other properties or assets, tax credits, and other things of value equivalent to the amount of just compensation.” *Santosv. Land Bank ofthe Phils, G.R. No. 187431 [September 7, 2000], 394 Phil. 265-278. GR. Nos. 28742, 79310, 79744, and 79777 (July 14, 1989), 286 Phil. 777-827. (4c, 18 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 (CHAPTER VI: JUST COMPENSATION, Foatures of Land Bank Bonds ‘The features of the Land Bank bonds are as follows: 1) Ten percent (10%) of the face value of the bonds, shall mature every year from the date of issuance until the 10th year; 2) The bonds are transferable and negotiable; and 8) The bonds can be used for any of the following: a) Acquisition ofland or other real properties of the government, including assets under the Asset Privatization Program and other assets foreclosed by government financial institutions in the same province or region where the lands for which the bonds were paid are situated; b) Acquisition of land shares of stock of government-owned or controlled corporations or shares of stocks owned by the government in private corporations; ©) Bail bonds for the provisional release of accused persons, or performance bonds; 4) Security for loans with government financial institution, provided the proceeds of the loans shall be invested in an economic enterprise; ) Payment for various taxes and fees to government; f) _ Payment for tuition fees of the immediate family of the original bondholder in government. universities, colleges, trade schools, and other institutions; and g) Payment for fees of the immediate family of the original bondholder in government hospitals. Criminal Violation 81 ‘The Comprehensive Agrarian Reform Law of 1988 prohibits Comprehensive Agrarian Reform Law of 1988, Seetion 7X), Joxponsible government officers from unduly delaying, refusing or fuiling, to pay the landowner his just. compensation.”AGRARIAN LAW AND SOCIAL LEGISLATION Secs. 19-20, SECTION 19. Incentives for Voluntary Offers for Sale. — Landowners, other than banks and other financial institu: tions, who voluntarily offer their lands for sale shall be en- titled to an additional five percent (5%) cash payment. NOTES: Documentary Requirements for Voluntary Offers for Sal Landowners who voluntarily offer their agricultural lands for sale must attach the following documents to their written offer: » 2) 3) If the landowner fails to submit the documentary require- ‘ments, the land will he subjected to compulsory acquisition. ‘Title oF proof of ownership, if untitled; ‘Tax declaration; and Approved survey plan.‘ SECTION 20. Voluntary Land Transfer. — Landowners agricultural lands subject to acquisition under this Act may enter into a voluntary arrangement for direct transfer of their lands to qualified beneficiaries subject to the following guidelines: (a) All notices for voluntary land transfer must be submitted to the DAR within the first year of the implementation of the CARP. Negotiations between the landowners and qualified beneficiaries covering any voluntary land transfer which remain unresolved after one (1) year shall not be recognized and such land shall instead be acquired by the government and transferred pursuant to this Act. (). The terms and conditions of such transfer shall not be loss favorable to the transferee than those of the government's standing offer to pur- chase from the landowner and to resell to the ben- eficiaries, if such offers have been made and are fully known to both parties. “Department of Agrarian Reform Administrative Order No. 2, sorios of 2008, lwe.21 ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 CHAPTER VI: JUST COMPENSATION (c) The voluntary agreement shall include sanctions for non-compliance by either party and shall be duly recorded and its implementation monitored by the DAR. NOTE: Voluntary Land Transfer No Longer Allowed Section 7 of the Comprehensive Agrarian Reform Law of 1988, us amended by Republic Act No. 9700, allowed voluntary land transfer up to June 30, 2009 only. After June 30, 2009, the modes ‘of acquisition are limited to voluntary offer to sell and compulsory ‘uequisition. SECTION 21. Payment of Compensation by Beneficiaries Under Voluntary Land Transfer. — Direct payments in cash ‘or in kind may be made by the farmer-beneficiary to the landowner under terms to be mutually agreed upon by both parties, which shall be binding upon them, upon registration With and approval by the DAR. Said approval shall be eonsidered given, unless notice of disapproval is received by the farmer-beneficiary within thirty (30) days from the date of registration. In the event they cannot agree on the price of land, the procedure for compulsory acquisition as provided in Hoction 16 shall apply. The LBP shall extend financing to the beneficiaries for purposes of acquiring the land. NOTE: ‘Mode of Payment in Voluntary Land Transfers. Unlike in compulsory acquisition, the farmer-beneficiary pays the agreed price of the land directly to the landowner.