Section 14 – Registration of Landowners (DAC NTL)

Within 180 days from the effectivity of this act, all persons whether natural or juridical including gov
entities who owns or claims to own agricultural land whether under his own name or in the name of the
others shall file a sworn statement in the proper assessor’s office in the form prescribe by the DAR
stating the ff information

- The description and area of the property

- The average gross income of the property for at least 3 years
- The crops planted in the property and the area of each crop as of June 1, 1987
- The names of all the tenants and farmworkers
- The terms of mortgages, lease, management contracts subsisting as of June 1, 1897
- The latest declared market value of the land as determined by city or provincial assessor

Section 15 – Registration of Qualified Beneficiaries (NOCLS)

The DAR in coordination with the BARC shall register all agricultural lessee, tenants, workers who are
qualified to be beneficiaries under the CARP. These potential beneficiaries with the assistance of the
BARC and DAR shall provide the ff data

- Names and members of their immediate farm household

- Owners and administrators of the land they work on and the length of tenurial relationship
- Crops planted
- Location and area of the land they work
- Their share in the harvest or the amount of rentals paid, or wages received

The list shall be posted in an inconspicuous place in the brgy hall, school or public building and shall be
open for examination by the public.

Section 16 – Procedure of Acquisition and Distribution of Private Lands

1. Identification by the DAR must be made of the land, owner, and beneficiary

2. A notice must be sent by the DAR to the landowner regarding the compulsory acquisitions as well as
the price offer. Such notice must be personally delivered or be delivered through registered mail and the
notice must also be posted in a inconspicuous place in the brgy or municipal hall of the place where the
land is located.

3. Reply by the landowner must be made within 30 days from receipt on whether he accepts or rejects
the price offer.

 If the landowner accepts, then the LBP must pay him the price offer within 30 days from the
execution of the deed of transfer
 If the landowner rejects the price offer, the DAR shall institute summary administrative
proceedings to determine the just compensation.
 If the landowner still rejects the determination made by the DAR, he may elevate the case to the
regular courts of justice acting as a special agrarian courts for its final determination of just
compensation.
4. The DAR may take immediate possession of the land if the landowner has already been paid or if the
landowner does not reply to the Notice of Acquisition

5. The DAR may request the RD to issue a TCT to the Rep of the PH

6. The land will be distributed to qualified beneficiaries.

DAR AO 12 series of 1989

The MARO with the assistance of the BARO

- Update the master list of the agricultural lands covered by the CARP
- Prepare the Compulsory Acquisition Case Folder
- Send a Notice of Coverage to the Landowner
- Submit all completed case folders to the PARO

The PARO

- Ensure that the individual case folders are forwarded to him by the MARO
- Compute the valuation of the land
- They may validate the report of the MARO through an ocular inspection
- Upon the determination of the valuation, they shall forward the case folder to the Central Office

DAR Central Office

- Within 3 days from receipt of the case folder from the PARO, evaluate and determine the final
valuation.
- Prepare the Notice of Acquisition and serve such notice
- In case the landowner accepts, they shall prepare an order of acquisition. If rejection or non-
reply, DARAB shall conduct a summary administrative proceeding.
- Direct the RD to issue a TCT to the Republic of the Philippines

DAR AO 7 series of 2011

The Provincial Office of the DAR shall generate a list of the landholdings and a list wherein it states
which landholdings were already served a notice of acquisition. These lists shall be forwarded to the
Municipal Agrarian Reform Officer and Barangay Agrarian Reform Officer

The Municipal and Barangay Agrarian Reform Officer shall provide a list of potential beneficiaries. They
shall screen and select those qualified beneficiaries according to Section 22 of the CARL. They shall
include these qualified beneficiaries in the master list

The MARO shall continue with the process of acquisition and distribution by sending the notice of
coverage. This notice is required in order to comply with administrative due process to the landowner
and afford him the opportunity to exercise his right of retention.
The PARO shall conduct land surveys after which the MARO and BARO and the LBP shall conduct field
investigations to complete the valuation of the land

The LBP shall determine the initial valuation of the landholding

Two notices required: Notice of coverage under DAR AO 07 Series of 2011 and Notice of Acquisition
under Section 16 of the CARL of 1988

The Land Acquisition Procedure must be strictly construed – This is a special kind of expropriation
therefore, any violation of the procedure laid down in the CARL shall render such process in violation of
constitutional due process.

Just Compensation – The full and fair equivalent of the property taken from the owner by the
expropriator. Just compensation does not only pertain to the amount but also to the prompt payment.
Such payment of just compensation must be made within a reasonable time. Just compensation is not
present when the landowner only receives a partial payment and be deprived of his land while waiting
for the full payment.

Section 17 Determination of just compensation. – The congress has identified the factors in
determining the just compensation:

- The cost of acquisition iof the land

- The value of the standing crops
- The current value of like properties
- The nature of the land
- The actual use of the land
- The income of the land
- Sworn valuation made by the owner
- Tax declarations
- Assessment made by government assessors
- 70% of the zonal valuation of the BIR
- The social and economic benefits contributed by the farmers farmworkers and by the
government to the property
- Non-payment of taxes and loans secured from government financing institutions on the said
land

These factors shall be translated into a basic formula by the DAR, subject to the final determination of
the courts

Formulas for determining just compensation

Marcos Tenant Emancipation Law: 2.5 x the average harvest of three normal crop years

Cory Aquino EO 228: (Average gross production x 2.5) the product multiplied by the Gov Support Price
of a cavan of palay or corn.
CARL

- Capitalized Net Income (CNI) – Based on land use and productivity

- Comparable Sales (CS) – Based on the 70% zonal value of the BIR
- Market Value (MV) – Based on Tax Declarations

(CNI x .6) + (CS x .3) + (MV x .1) = Land Value

No CS: (CNI x .9) + (MV x .1) = Land Value

No CNI: (CS x .9) + (MV x .1) = Land Value

NO CNI and CS: MV x 2 = Land Value

Procedure for Determining Just Compensation – The LBP shall give the initial valuation that shall be
offered to the landowner. If the landowner rejects this initial valuation, the DAR shall institute a
summary administrative proceeding in order to determine the just compensation. The LBP DAR officers,
landowner or anyone who has an interest on the proceeding may submit evidence to determine the just
compensation. If any party disagrees with the decision of the DAR, then such party may elevate the case
to the regular courts of justice acting as a special agrarian court for the final determination of the just
compensation.

Role of the DARAB RARA PARA

- Provincial Agrarian Reform Adjudicator – If the initial valuation is less than 10 million
- Regional Agrarian Reform Adjudicator – 10 million above to 50 million
- Department of Agrarian Reform Adjudication Board – Above 50 million

In the Absence of PARA then RARA shall conduct summary administrative proceedings

In the absence of RARA then DARAB shall conduct proceedings or it may designate to any PARA in the
region

Valuation set by the DAR is not conclusive

The valuation made by the LBP and the DAR is not conclusive. Such determination may still be elevated
to the courts of justice acting as a special agrarian court. The 2009 DARAB Rules of Procedure provides
the guidelines in filing for an original action with the SAC for final determination.

Section 6 – the party who disagrees with the decision of the board or adjudicator shall file an original
action with the SAC having jurisdiction within 15 days from the receipt of the board’s decision

Immediately upon filing with the SAC, the party must file a Notice of Filing an Original Action with the
Board or Adjudicator together with a ctc of the petition with the SAC

Failure to comply with the notice requirement will render the decision of the Board or Adjudicator final
and executory

Prevailing rule regarding deviation from the formula provided by the DAR
The courts may not strictly apply the formula provided by the DAR if they think that it is not warranted
under the specific circumstances. Provided that the courts shall give a reasonable explanation for the
deviation or departure that is grounded by the evidence on record.

Section 18 Valuation and Mode of Compensation:

The farmer beneficiaries consent is not required in the determination of just compensation. The LBP
shall compensate the landowner in the amount agreed upon by the LBP, DAR, and landowner only. In
accordance with Section 16 and 17 and other pertinent provisions in the determination of just
compensation.

Payment of compensation may be done through the following modes:

1.) Cash and financial instruments of the government

- Lands above 50 hectares (with respect to the excess) – 25% cash 75% GFI
- Lands above 24 hectares to 50 hectares – 30% cash 70% GFI
- Lands below 24 hectares – 35% cash 65% GFI

2.) Shares of stock in GOCCs, preferred shares in LBP, physical assets or other qualified instruments

3.) Tax Credits which can be used against tax liabilities

4.) Land Bank Bonds which shall mature every year until the 10 th year.

Section 19 – Incentives for Voluntary Offer to Sell

Landowners, other than banks and financial institutions, who voluntarily offer their land to sell shall be
entitled to an additional 5% cash payment

- Title or proof of ownership if untitled

- Tax declaration
- Approved survey plan

Section 20 – Voluntary Land Transfer

Landowners of agricultural lands subject to acquisition under this act may voluntary transfer their land
directly to qualified beneficiaries subject to the following guidelines

- All notices of a voluntary land transfer shall be filed with the DAR within one year from the
effectivity of this act. All negotiations that exceed the one year period shall no longer be
allowed.
- The terms must not be less favorable to the transferee than those of the governments standing
offer
- The voluntary agreement shall include sanctions for non-compliance and shall be duly recorded
and its implementation monitored by the DAR.
RA 9700 – allowed VLT only up to June 30, 2009. After this the mode of acquisition is only compulsory
acquisition and voluntary offer to sell.