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HISTORY OF AGRARIAN REFORM IN THE PHILIPPINES

1.   Our Ancestral Society.


1.   a. Barangay.
2.   b. Classes:
2.b.1.   Datu or Sultan-dispose.
2.b.2.   Maharlika or Freeman.
2.b.3.   Alipin.
2.b.3.a.   Alipin Namamahay.
2.b.c.b.   Alipin Saguiguilid.
2.   Roots of our Agrarian Problem.
2.a.   1565 — Miguel Lopez de Legazpi and Urdaneta — First Spanish
settlement in Cebu.
2.a.1.   They decided to move to Manila for two reasons:
2.a.1.a.   Pintados.
2.a.1.b.   Martin de Goite.
2.a.2.   Death of Rajah Sulayman-Chieftain of Manila.
2.a.3.   Rajah Lakandula — Chieftain of Tondo recognized Spanish
sovereignty.
2.a.4.   Legazpi reassured Lakandula:
2.a.4.a.   His property will be respected.
2.a.4.b.   He and other Datus would be exempt from paying
tribute.
2.a.5   ENCOMIENDA SYSTEM.
2.a.5a.   Spanish Soldiers.
2.a.5b.   Spanish Settlers.
2.a.5c.   Religious Orders (Magalat Revolt).
2.a.6.   Caciques.
2.a.7.   Inquilinato.
3.   Early Attempts at Agrarian Reform in the Philippines.
3.a.   June 12, 1898 Gen. Emilio Aguinaldo-Independence-Republican
government.
3.a.1.   Confiscation of Friar Lands.
3.b.   December 10, 1898 — Treaty of Paris The Philippines was ceded by
Spain to U.S. U.S. guarantee to respect and safeguard the private lands
owned by Spaniards.
3.c.   Americans instituted the following reforms:
3.c.1.   Philippine Bill of 1902.
3.c.2.   Land Registration Act of 1902 (Act 496-Torrens System).
3.c.3.   Negotiation Gov. William Taft and Pope Leo XIII in 1903-(Friar
Lands).
3.c.4.   Public Land Act of 1903 — Homestead System in the
Philippines.
3.c.5.   Cadastral Survey of 1910.
3.c.6.   Establishment of Agricultural Colonies in 1913.
3.c.7.   Rice Share Tenancy Act of 1933 (Act No. 4054).
3.c.8.   Tenancy Act of 1933 — (Sugar).
3.d.   These measures failed to established successful agrarian reform as
shown by:
3.d.1.   Unsuccessful attempt to buy friar lands.
3.d.2.   Tenancy doubled by 1935-George Taylor.
3.d.3.   Tension increased between landlord and tenants.
3.d.3.a.   Colorum Uprising-Pedro Calosa, Tayug, Pangasinan —
1913.
3.d.3.b.   Sakdalista Revolt-Benigno Ramos, Cabuyao, Laguna
— 1935.
3.d.4.   Formation of Militant Peasant Organization "Katipunang
Pambansa ng Magbubukid ng Pilipinas"-1924. Seek to Eliminate
Usury; Increase tenant's share; Protect, small homesteaders: Abolish
Cedula Tax and unite small farmers to liberate the Philippines.
3.e.   Commonwealth Government-Pres. Manuel L. Quezon.
3.e.1.   Social Justice Program-Act Nos. 178, 461 and 608-sought to
establish Agrarian Reform by:
3.e.1.a.   Requiring a WRITTEN CONTRACT between tenant &
landlord;
3.e.1.b.   Purchase of large HACIENDAS for subdivision in small
parcels for tenants;
3.e.1.c.   NARIC-National Rice & Corn Corp. established.
3.f.   December 8, 1941 – Second World War.
3.f.1.   Japanese Occupation.
3.f.2.   HUKBALAHAP Organization.
4.   Shaking Off the Yoke of Bondage.
4.a.   1945-Liberation of the Philippines.
4.b.   July 4, 1946 — Philippines was declared independent by the
Americans.
4.c.   HUKS-Associated with present movement-"Land Reform" was
unmentionable in government quarters.
4.d.   1953. Pres. Ramon Magsaysay elected and Huk Supremo Luis Taruc
surrendered.
4.d.1.   Pres. Magsasay introduce the following:
4.d.1.a.   R.A. No. 1199 — Agricultural Tenancy Act of 1954.
4.d.1.b.   Court of Agrarian Relations.
4.d.1.c.   Agricultural Tenancy Commission (Patents of Settlers).
4.d.1.d.   NARRA — Nat. Resettlement and Rehabilitation Adm.
4.d.1.e.   ACCFA — Agricultural Credit and Cooperative
Financing Administration.
4.d.1.f.   FACOMA — Farmers Cooperative and Marketing
Association.
4.e.   1961 — Pres. Diosdado Macapagal elected.
4.e.1.   August 8, 1963 — RA 3844 Agricultural Land Reform Code.
4.e.1.a.   Family-Economic Size  Farm "Land for the Landless".
4.e.1.b.   Discourage Absentee  Landlordism.
4.e.1.c.   Expropriate big private landed estates.
4.e.1.d.   Direct landlord capital to industry.
4.f.   1965-1972 — Pres. Ferdinand E. Marcos.
4.f.1.   RA 6389 — Code of Agrarian Reform-Sept. 10. 1971.
4.f.2.   September 21, 1972 — Declaration of Land Martial Law.
4.f.3.  P.D. 2 — Entire country as a Land Reform Area, Sept. 26,
1972.
4.f.4.   PD 27 — Tenant Emancipation Decree, October 21, 1972. —
                The historic document broke the "silence of the century".
5.   The Philosophy of Agrarian Reform.
5.a.   Philosophy — is a frame of mind, a point of view, or an organized
exposition of rationale to justify the objectives, materials and processes
involved in an understanding or project to which one may refer for clarifying
questions, doubts, or problems.
5.a.1.   MORAL — Holy Bible — Leviticus Chapter 25 — Inalienable
status of land; For mens Collective Welfare; Cultivatorship means
stewardship of God — given property.
5.a.1.a.   KORAN, Sura XXII, Aya 6 — The Meaning of the
Glorious Qur-an" by Marmaduke Pinkthall says = "unto him
belongeth whatever is in the heaven and whatsoever is between
them and whatsoever is beneath the soil."
            Also Sura II, Aya 22.
5.a.1.b.   Allah owns the land and men are only steward of the
land for the welfare of mankind.
5.a.1.c.   Muslim concept of land ownership is upheld by MIRAS,
the Muslim book of the Laws on Land.
5.a.1.d.   Man-made laws in the Philippines are more liberal than
the strict religious point for having recognized PRIVATE
OWNERSHIP.
5.a.1.e.   Pope John III in his Encyclical "Pacem In Terris" quotes
St. Thomas Aquinas who says "Human law has the true nature of
law only in so far as it corresponds to right reason, and therefore
is derived from the eternal law. Insofar as it falls short of right
reason, a law is said to be a wicker law and so lacking the true
nature of law it is rather a kind of violence."
5.a.2.   Legal — Political Aspect.
5.a.2.a.   Basis =
1.   Philippine Constitution.
2.   Principle of Democratization of Wealth and Property.
5.a.2.b.   Sec. 12 Art. XIV — 1973 Constitution.
5.a.2.c.   Democratization — simply means the sharing of private
wealth with the entire society, and this calls for the regulation of
property for collective human ends.
5.a.2.d.        The Supreme Court subjected private ownership to
some kinds of restraints and burdens, upholding agrarian reform
and vesting if formally with legality.
5.a.3.   Social Aspect.
5.a.3.a.   Agrarian Reform is Land Reform Plus Man Reform.
5.a.3.b.   Social Justice.
5.a.3.c.   "Salus populi est suprema lex.
5.a.3.d.   "Sec utera tuo ut alienum non laedas.
5.a.4.   The Economic Aspect.
5.a.4.a.   Agrarian Reform abolishes share tenancy which is the
root cause of injustice.
5.a.4.b.   It uphold the economic tiller of the soil and protect his
freedom against pernicious and immoral economic practices.
5.a.4.c.   It has not merely seek the transfer of ownership of
agricultural lands but provide him assistance to improve farm
method; make credit available for the purchase of farm
implements, fertilizers and farm facilities; market his farm produce
and settle his legal problems.
5.a.4.d.   Surplus in production.
5.a.5.   Land Reform and Agrarian Reform.
5.a.5.a.   Reform connotes change from the existing agrarian
condition of the country; it implies the existence of shortcomings
and defects which very urgently necessitate corrective measures.
5.a.5.b.   Land Reform-In a limited sense refer to Land
Ownership-the earth where we live and which we cultivate.
5.a.5.c.   Agrarian Reform-Refers to the relationship that exist
between man and his land a well as that between man and fellow
countryman. It denotes not only private ownership of land and its
accompanying problems but all possible undertaking which will
improve the lot of man, the tiller of the soil.
5.a.5.d.   Five components of Agrarian Reform.
5.a.5.c.1.   Land Tenure Improvement Program —
Regulation of private ownership of lands.
5.a.5.c.2.   Physical Development — Needed
infrastructure i.e., irrigation system, roads, ports,
electrification, school building and social and recreational
facilities.
5.a.5.c.3.   Institutional Development — Establishment of
Farmers Cooperative and organizing farmers into effective
production units.
5.a.5.c.4.   Agricultural Development — aims at increasing
the production capabilities of farmers especially the
emancipated tenant-tillers.
5.a.5.c.5.   Human Resource Development-Clientele and
personal training which aims to increase the capabilities of
the farmers, the landowner and the community at large to
work toward growth and increasing the competencies of the
government worker or change-agent who is entrusted with
the implementation of the program.
 

THREE STAGES OF AGRARIAN REFORM IN THE PHILIPPINES


 

First Stage Share Tenancy


          Republic Act No. 1199 — The Agricultural Tenancy Act of the
Philippines-Effectivity-August 20, 1954.
 

Second Stage Agricultural Leasehold


          Republic Act No. 3844 — Agricultural Land Reform Code-Effectivity
August 8, 1963.
          Republic Act. No. 6389 — Code of Agrarian Reform Effectivity —
September 10, 1971.
          Presidential Decree No. 1425 — Amending Presidential Decree No.
1040 by Strengthening the Prohibition against Agricultural Share Tenancy and
Providing Penalties for Violation Thereof — Effectivity June 10, 1978-Penalties
— Two (2) Year imprisonment or fine of not more than P5000.00 or both.
 

Third Stage Full Ownership


          Presidential Decree No. 27 —Tenant's Emancipation Decree —
Effectivity October 21, 1972.
          Letter of Instruction No. 474 — Effectivity October 21, 1976.
          Presidential Proclamation No. 131 — Instituting a Comprehensive
Agrarian Reform Program-Effectivity — July 22, 1987.
          Republic Act No. 6657 — An Act Instituting a Comprehensive Agrarian
Reform Program to Promote Social Justice and Industrialization, providing the
Mechanism for its implementation and other purposes — Effectivity June 15,
1988.
1.   First Stage — SHARE TENANCY
1.a.   Republic Act No. 1999 — The Agricultural Tenancy Act of the
Philippines (Effectivity-August 30, 1954)
2.b.   Share Tenancy exist whenever two persons agree on a joint
undertaking wherein one party furnishes the land and the other his labor,
with either or both contributing any one or several of the items of production,
the tenant cultivating the land personally with the aid of labor available from
members of his immediate farm household and the produce thereof to be
divided between the landholder and the tenant in proportion to the
respective contributions." (Sec. 4, RA 1199).
2.c.   "A tenant shall mean a person who himself and with the aid available
from within his immediate farm household, cultivates the land belonging to
or possessed by, another, with the latters consent for purpose of production,
sharing the produce with the landholder under the share tenancy system, or
paying the landholder a price certain or ascertainable in produce or in
money or both, under the leasehold tenancy." (Sec. 5, (a), RA 1199)
3.d.   "A landholder shall mean a person, natural or judicial, who either
as owner, lessee, usufructuary, or legal possessor, lets or grant to another
the use or cultivation of his land for a consideration either in shares under
the share tenancy system or a price certain or ascertainable under the
leasehold tenancy system." (Sec. 5 (b), RA 1199)
3.e.   Rules on sharing of crops other than Rice.
            (Sec. 41, Chapter III, RA 1199)
3.e.1.   Contract stipulating the ratio of crop division;
3.e.2.   Custom of the place
3.e.3.   Minimum share of the tenant is thirty percent of the harvest of
produce.
3.f.   Sec. 14 of the Tenancy Act (RA 1199), grants the tenant the option to
elect the leasehold tenancy, whereas Sec. 35 (RA 3844) exempts coconut
lands from leasehold. The inconsistency is resolved by Sec. 172 (RA 3844)
which ordains that "all laws or parts of any law inconsistent with this Code
are hereby repealed. (Rodinas vs. Fuentes, CA. G.R. Nos. 04595-98-SP,
July 16, 1976)
3.g.   Essential Elements of Tenancy Relationship:
3.g.1.   The parties are the landholder and the tenant.
3.g.2.   The subject is agricultural land.
3.g.3.   There is consent.
3.g.4.   The purpose is agricultural production.
3.g.5.   There is personal cultivation.
3.g.6.   There is sharing of harvest or payment of rentals. (Caballes vs.
DAR, 168 SCRA 247; Qua vs. Court of Appeals, 198 SCRA 247).
2.   Second Stage — AGRICULTURAL LEASEHOLD
2.a.   Republic Act No. 3844 — Agricultural Land Reform Code (Effectivity
— August 8, 1963).
2.b.   Parties in Agricultural Leasehold:
2.b.1.   Landlord/lessor. The person (natural or juridical) who furnishes
the land as:
2.b.1.a.   Owner.
2.b.1.b.   Civil Law Lessee.
2.b.1.c.   Usufructuary.
2.b.1.d.   Legal Possessor.
2.b.2.   Tenant-Lessee. The person who personally cultivate the land
with the aid of labor from his immediate farm household (Sec. 6, RA
3844).
2.c.   The Agricultural Lessor lets or grants to another the cultivation and
use of his land for a price certain (Sec. 166, (3), RA 3844).
2.d.   The Agricultural Lessee, cultivates the land belonging to or possessed
by another with the latter consent for purposes of production, for a price
certain in money or in produce or both (Sec. 166 (2) RA 3844).
2.e.   "Agricultural Land" means land devoted to any growth, including but
not limited to crop lands, salt beds, fish ponds, idle land and abandoned
land (Sec. 166 (1)).
2.f.   Agricultural Leasehold Contract in General — The Agricultural/Lessor
and the Agricultural Lessee shall be free to enter into any kind of terms,
conditions or stipulation in a leasehold contract, as long as they are not
contrary to law, morals, or public policy. (Sec. 15, RA 3844).
2.f.1.   The agricultural leasehold relation shall be established by:
2.f.1.a.   Operation of law in accordance with Sec. 4, RA 3844.
2.f.1.b.   Orally or in writing, express or impliedly. (Sec. 5, RA
3844)
2.g.   Form and Registration of the Leasehold Contract:
2.g.1.   In writing (quadruplicate).
2.g.2.   In a language or dialect known to the agricultural lessee.
2.g.3.   Signed or Thumb-marked by the Agri. Lessee personally and
the Agri. Lessor or his authorized representative before two witnesses
to be chosen by each party.
2.g.4.   Parties acknowledge the execution of the contract before the
Justice of the Peace of the municipality where the land is situated (No
fees is required).
2.g.5.   Each party retain a copy.
2.g.6.   The Third copy is delivered by the judge to the Municipal
Treasurer of the place where the land is located.
2.g.7.   The Fourth copy to the Office of the Agrarian Counsel (Sec.
17, RA 3844).
2.h.   The Agricultural Leasehold Contract shall be conclusive between the
contending parties if not denounced or impugned within thirty (30) days
after its registration, except, in case of mistake, violence, intimidation,
undue influence or fraud.
2.i.   The agricultural Leasehold Relation is not extinguished by:
2.i.1.   Expiration of the Term or period in a leasehold contract.
2.i.2.   Sale, Alienation or Transfer of the legal possession of the
landholding. The purchaser or transferee is subrogated to the rights
and substituted to the obligations of the agricultural lessor (Sec.
10, RA 3844).
2.j.   Rights of the Agricultural Lessee:
2.j.1.   Right to Security of Tenure — To have possession and peaceful
enjoyment of the land (Sec. 71, RA 3844) (Bernardo vs. CA, 168
SCRA 439)
2.j.2.   Right to a Homelot (Sec. 24, RA 3844) LOI 705 (June 10, 1978)
2.j.3.   Right of the Pre-Emption Agri. Lessee preferential right to buy
the land under reasonable terms and conditions (Sec. 11, RA 3844)
2.j.4.   Right of Redemption. The right to redeem the land at a
reasonable price and consideration if the land is sold to a third persons
without his knowledge (Sec. 12, RA 3844)
2.j.5.   Right to be paid DISTURBANCE COMPENSATION in case of
approved land use conversion (Sec. 36 (1), RA 3844 as amended by
Sec. 7 (1), RA 6389)
2.j.6.   Right to be imdemnified for the cost and expenses in the
cultivation and for the expenses incidental to the improvement of the
crops in case the lessee surrenders, abandons for a just cause or is
ejected without court order. (Sec. 25, RA 3844)
2.j.7.   To manage and work on the land in manner and method of
cultivation and harvest which conform to proven farm practices. (Sec.
23. (2), RA 3844)
2.j.8.   To mechanize all or any phase of his farmwork (Sec. 23, (3) RA
3844)
2.j.9.   To deal with millers and processors and attend to the issuance
of quedans and warehouse receipts of the produce due him/her (Sec.
23 (4), RA 3844)
2.k.   Obligation of the Agricultural Lessee (Duties and Responsibilities
(Sec. 26, RA 3844).
2.k.1.   Cultivate and Take care of the farm, growing crops & other
improvements. Perform all work in accordance with the proven farm
practices.
2.k.2.   Inform the lessor of trespass committed by 3rd persons w/o
prejudice to his direct action against the trespasser.
2.k.3.   Take reasonable care of work animals and farm
implements delivered to him by the lessor and see to it that it is not
used for purposes than, those intended or by another without the
knowledge and consent of the lessor.
2.k.4.   Keep the farm and growing crops attended to during the work
season.
2.k.5.   To pay the lease rentals to the lessor when it falls due.
2.l.   Rights of the Agricultural Lessor (Sec. 29, RA 3844).
2.l.1.   To Inspect and observe the extent of compliance with the terms
and conditions of the leasehold contract.
2.l.2.   To Propose a change in the use of the landholding to other
agricultural purposes, or in the kind of crops planted.
2.l.3.   To require the lessee, to adopt proven farm practices necessary
to the conservation of the land, improvement of the fertility and
increase in productivity;
 "Proven farm practices" means sound farming practices
generally acceptable through usage or officially recommended by
the Agricultural Productivity Commission for a particular type of
farm. (Sec., (11), RA 3844).
2.l.4.   To Mortgage Expected rentals.
2.m.   Prohibition on the Agricultural Lessor (Sec. 31, RA 3844).
2.m.1.   To dispossess the agricultural lessee of his/her landholding
except upon authorization by the Court under Sec. 36, RA 3844.
2.m.2.   To require the lessee to assume, directly or indirectly
the payment of taxes or part thereof levied the landholding.
2.m.3.   To require the lessee to assume, directly or indirectly
any, rent, "canon" or other obligation of the lessor to a third party.
2.m.4.   To deal with millers or processors without a written
authorization of the lessee in case the crop has to be sold in a
processed form before payment of lease rentals.
2.m.5.   To discourage, directly or indirectly, the formation,
maintenance or growth of unions or organizations of lessee in his/her
land.
2.m.6.   (New) For coconut lands, indiscriminate cutting of coconut tree
will be deemed a prima facie evidence of intent to eject his tenant from
his landholding unless there is a CERTIFICATION by the PCA or
RESOLUTION from the Municipal Board, allowing the cutting for valid
reason. (A.O.5.S. 1993, A.O. 16.S. 1989).
2.n.   Consideration for the Lease of Agricultural lands:
2.n.1.   Not more than 25 per centum of the average normal
harvest during the three agricultural years immediately preceding the
date the leasehold was established.
2.n.2.   Deductible items:
2.n.2.a.   Seedlings.
2.n.2.b.   Cost of Harvesting.
2.n.2.c.   Cost of Threshing.
2.n.2.d.   Cost of Loading.
2.n.2.e.   Cost of Hauling.
2.n.2.f.   Cost of Processing.
2.n.3.   If the land is cultivated for a period of less than three years,
the initial consideration is based on the average normal harvest during
the preceding years when the land was actually cultivated or on the
harvest of the first year if newly cultivated, and the harvest is normal.
2.n.4.   After the lapse of the first three normal harvest, the final
consideration shall be based on the average normal harvest during
these three preceding agricultural years.
2.n.5.   In the absence of any agreement as to the rental,
the maximum allowed shall be applied.
2.n.6.   If capital improvement is introduced not by the lessee to
increase productivity, the rentals shall be increased proportionally to
the consequent increase in production due to the improvement.
2.n.7.   In case of disagreement the Court shall determine the
reasonably increase in rental.
2.n.8.   Capital improvement refers to any permanent and tangible
improvement on the land that will result in increased productivity. If
done with the consent of the lessee, then the lease rental shall be
increased proportionately.
2.o.   Sec. 36, RA 3844, Possession of Landholding; Exceptions. — The
agricultural lessee shall continue in the ENJOYMENT and POSSESSION of
his landholding except if his dispossession is authorized by the Court in a
judgment that is final and executory if after due hearing it is shown that: —
2.o.1.   The agricultural lessor-owner or a member of his family will
personally cultivate the landholding (Amended by Sec. 7, RA
6389; Sequi vs. Vera, CA-G.R. No. 00975-R. Oct. 22, 1975). Or will
convert the landholding into residential, factory, hospital, school
site or other useful non-agricultural purposes. Provided
that Disturbance Compensation equivalent to five times the average
of the gross harvest on his landholding during the last five preceding
calendar years (Sec. 7, RA 6389 (Amendment) The tenant have the
right to demand possession and claim damages if the landholder is
in Bad Faith by not cultivating the land himself for three years or
fails to substantially carry out such conversion within one year after
the dispossession of the tenant.
2.o.2.   The agricultural lessee failed to substantially comply with any
of the terms an conditions of the contract or any provision of this
Code unless his failure is causes by fortuitous event or force majeure.
2.o.3.   The agricultural lessee planted crops or used the landholding
for a purpose other than what had been previously agreed upon.
2.o.4.   The agricultural lessee failed to adopt proven farm practices.
2.o.5.   The land or other substantial permanent
improvement is substantially damaged or destroyed or
has unreasonably deteriorated through the fault or negligence of the
agricultural lessee.
2.o.6.   The agricultural lessee does not pay the lease rental when it
falls due provided that if non-payment is due to crop failure to the
extent of 75% as a result of fortuitous event, it cannot be a ground for
dispossession although the obligation to pay the rental due that
particularly crop is not thereby extinguished.
2.o.7.   The lessee employed a sub-lessee on the landholding.
2.p.   Extinguished of Agricultural Leasehold Relations (Sec. 8, RA 3844)
The agricultural leasehold relations established under the Code shall
be extinguished by: —
2.p.1.   ABANDONMENT of the landholding without the knowledge of
the agricultural lessor. (Teodoro vs. Macaraeg, 27 SCRA 7 (1969)). To
constitute abandonment there must be an absolute relinquishment of
the premises of the tenant. This "overt act" must be coupled with his
intention to do so "which is carried into effect," (Philippine Labor and
Social Legislation, Martin, 70 Ed. Pp. 405-406). Abandonment to
validly terminate tenancy relationship is characterized by:
(a)   an INTENT to ABANDON, and
(b)   an OVERT ACT to carry out such intention.
There must be, therefore, NO ANIMUS REVERTENDI on the part
of the tenant (Labor, Agrarian and Social Legislation,
Montemayor, 2nd Ed., 1968, pp. 54-55)
2.p.2.   VOLUNTARY SURRENDER of the landholding by the
agricultural lessee, written notice of which shall be served three
months in advance (Nisnisan, et al., vs. CA, 294 SCRA 173 (1998)).
As a mode of extinguishing tenancy relationship it connotes a
decision in the part of the tenant to return the possession of the
landholding and relinquished his right as tenant thereon
uninfluenced by any compelling factor, coming particularly from
the landholder. For surrender to be valid, there must be (a) an
intention to abandon, and (b) an external act or an omission to
act, by which such intention is carried out into effect. When a
tenant voluntarily yield the land, he terminates the tenancy
relationship by his unilateral act. (Annacleto Inson vs. B. Planas
de Asis, et al., CA GR. No. Sp-01769, Oct. 11, 1974).
2.p.3.   Absence of a person under Sec. 9 to succeed to the lessee in
the event of death or permanent incapacity of the lessee.
2.p.3.a.   Succession in Agricultural Leasehold Relation:
Ground: Death or Permanent Incapacity = Who succeeds
= Person chosen by the agricultural lessor within one month from
death or permanent incapacity from among the following =
a)   Surviving spouse;
b)   The eldest direct descendant by consanguinity;
c)   The next eldest descendant or descendants in the
order of their age.
            If
the death or permanent incapacity occurs during the
agricultural year such choice shall be exercised at the end of the
agricultural year.
            If
the Agricultural Lessor fails to exercise his choice within the
one month period, the PRIORITY shall be in accordance with the
order herein established.
            In
case of death of the agricultural lessor, the leasehold shall
bind his legal heirs.
2.q.   The lessor who Ejects his tenant without Court authorization shall
be liable for:
2.q.1.   Fine or Imprisonment.
2.q.2.   Damages suffered by the agricultural lessee in addition
to Fine or Imprisonment for unauthorized dispossession.
2.q.3.   Payment of  Attorney's Fees incurred by the lessee.
2.q.4.   The Reinstatement of the Agricultural Lessee.
2.r.   Other related Laws and Issuances:
2.r.1.   P.D. No. 152 (March 31,1973), Prohibits the employment or
use of share-tenants in complying with the requirements of the law
regarding entry, occupation, improvement and cultivation of public
lands.
2.r.2.   P.D. No. 583 (November 10, 1974), prescribed penalty for the
unlawful ejectment, exclusion, removal or ouster of tenant-farmers
from their landholdings.
2.r.3.   P.D. No. 816 (October 21, 1975) penalized any agricultural
lessee of rice and corn lands under PD 27 who deliberately refuses or
continue to refuse to pay rentals or amortization when they are due
and remain unpaid within a period of two years.
2.r.4.   P.D. No. 1425 (June 10, 1978) strengthened the prohibition
against the practice of share tenancy and providing penalties thereof.
Under this Decree any tenant who refuses to enter into leasehold
contract may be prosecuted before the Court of Agrarian Relations.
2.r.5.   P.D. No. 1040 (October 21, 1976) prohibited and penalized
the contracting of share tenants in all agricultural land covered by P.D.
27.
2.s.   Administrative Orders covering Leasehold implementation:
2.s.1.   DAR Administrative Order No. 5 s. 1997 — Rules and
Regulations Governing the Lease of Lands Planted to Palm Oil
Trees and the Determination of Lease Rental under Lease
Arrangement, Amending Administrative Order No. 11, Series of 1988.
2.s.2.   DAR Administrative Order No. 4, S. 1997 — Guidelines on
the withdrawal of Farmers-Beneficiaries Lease Rentals/Amortization
Payments Deposited with the LBP.
2.s.3.   DAR Administrative Order No. 05, s. 1993 — Rules and
Procedures Governing Agricultural Leasehold and the Determination of
Lease Rental for Tenanted Lands.
            This AO supersedes AO No. 04, S 1989, AO 09, S.1991 and AO 04,
s. 1992.
3.   Third Stage — FULL OWNERSHIP BY TENANT-BENEFICIARY.
3.a.   Presidential Decree No. 27-Tenant's Emancipation
Decree (Effectivity-October 21, 1972).
3.b.   Presidential Decree No. 2 — (Effectivity — September 27, 1972)
Proclaiming the entire country as a Land Reform Area.
3.c.   Reason for the Decree — The old concept of land ownership by a
few has spawned valid and legitimate grievances that gave rise to violent
conflict and social tension.
3.d.   Salient features of Presidential Decree No. 27.
3.d.1.   It applies to TENANT-FARMERS of private agricultural lands
primarily devoted to rice and corn under a system of share-crop or
lease tenancy, whether classified as land estate or not.
NOTE: Elements of Traditional Utility and suitability of land
as rice or corn land (Code Commission, PD 946)
3.d.2.   The tenant-farmer is DEEMED OWNER of a family size farm
of five (5) hectares if not irrigated and three (3) hectares if irrigated.
3.d.3.   The landowner may retain an area of not more then seven (7)
hectares if he is cultivating such area or will now cultivate it.
3.d.4.   The value if the land shall be equivalent to two and one half
(2-1/2) times the AVERAGE HARVEST OF THREE NORMAL CROP
YEARS IMMEDIATELY PRECEDING THE PROMULGATION OF
THIS DECREE.
3.d.5.   The tenant shall pay for THE COST OF THE LAND,
including interest of six (6) percent per annum in FIFTEEN (15)
YEARS of fifteen (15) equal annual amortizations.
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.
3.d.6.   The FARMER'S COOPERATIVE pays the amortization if the
tenant defaults in payment of amortization. The cooperative shall have
a RIGHT OF RECOURSE against the member tenant.
3.d.7.   The TITLE to the land owned by the tenant shall not be
transferable except BY HEREDITARY SUCCESSION or TO THE
GOVERNMENT in accordance with this Decree, the Code of Agrarian
Reform and other existing laws and regulation.
NOTE: Sec. 6, EO 228 provides, "Ownership of lands
acquired by farmer-beneficiary may be transferred after full
payment of amortization.
3.d.8.   The Department of Agrarian Reform through its Secretary is
hereby empowered to promulgate rules and regulations for the
implementation of this Decree.
3.e.   Presidential Decree No. 27 was assumed to be constitutional and
upheld as part and parcel of the law of the land in De Chavez vs. Zobel 55
SCRA 26 and survived the test of constitutionality in Gonzales vs Estrella,
91 SCRA 294 (1979), Finally, in Association of Small Landowners in the
Philippines, Inc. vs. Secretary of Agrarian Reform, 175 SCRA 342 (1989) all
assault on the validity of PD 27, RA 6657, etc., was ultimately set aside.
3.f.   Presidential Decree prohibiting the Illegal Ejectment of tenant-tillers.
3.f.1.   PD 316 (October 22, 1973) applies to tenant-farmers in
agricultural lands primarily devoted to rice and corn.
No judge/hearing officer of CAR, CFI, Municipal or City
Court, Fiscal or hearing offices shall take cognizance of
any ejectment case or any case designed to harass a
tenant unless certified by the Secretary of DAR as a proper case
for trial or hearing after a preliminary determination of the
relationship between the parties is conducted by DAR in
a referral made by the court or hearing officer.
            DAR
Memorandum, Circular No. 29 (December 6, 1973) is the
implementing guidelines of  PD 316 Issues to be resolved.
a.   Whether or not one party is a tenant-farmer;
b.   Whether or not the land is planted to rice and/or corn;
c.   Whether or not the action involves the ejectment, or is
designed to harass or remove the actual tiller, the tenant-
farmer;
d.   In criminal cases, whether or not the crime complained
of arose out of or is connected with agrarian relations.
3.f.2.   PD 583 (November 16, 1974) Prescribing penalties for
the unlawful EJECTMENT, EXCLUSION REMOVAL or OUSTER of
tenant-farmers from this farmholdings.
3.f.2.a.   Who are liable under the Decree —
1.   Any judge of the CAR, CFI, Municipal Court or any
fiscal or investigating officer, including members of the
Armed Forces of the Philippines, WHO SHALL ORDER the
ejectment, exclusion, removal or ouster or shall
take COGNIZANCE of an ejectment case or one designed
to eject, exclude, remove or oust a tenant-farmer without
referring the case to the DAR pursuant to PD 316. (Penalty
= Prison Mayor and Perpetual Absolute Disqualification.
2.   Any officer or employee of the government including
members of the Armed Forces of the Philippines WHO
EXECUTES an order for the ejectment, exclusion, removal
or ouster of tenant-farmers, knowing that the order is
unlawful (Penalty-Prison Correctional and Perpetual
Absolute Disqualification.
3.   Any landowner who CONVERTS his tenanted land
primarily devoted to rice and corn into non-agricultural use
or to the production of the other crops to avoid the
application of the land reform laws or decrees to the
landholding and to dispossess his tenant-
farmers, except if  previously authorized by
the Secretary of Agrarian Reform, (Penalty-Prison
Mayor or FINE him P5,000.00 to P10,000.00 or both
(Also PD 815, Oct. 21, 1975).
3.f.3    PD 1038 (October 21, 1976) Strengthening the Security of
Tenure of tenant-tillers in NON-RICE/CORN producing private
agricultural lands.
3.f.3.a.   Who are liable under the Decree —
1.   Judge or Fiscal or Hearing officer who
TAKES COGNIZANCE or ORDERS the ejectment,
exclusion, removal or ouster of tenant-tillers without
securing the certification of the Secretary of DAR that the
case is proper for trial or hearing;
2.   Any officer or employee of the government,
including members of the Armed Forces of the Philippines,
who, EXECUTES an order for the ejectment, exclusion,
removal or ouster of tenant-tillers knowing that said order is
unlawful.
3.   Any landowner, landholder, agricultural lessor or
anybody acting for and in their behalf who by an act,
scheme, or strategy eject, exclude, remove or oust a
tenant-tiller from his landholding in contravention of this
Decree.
3.g.   Presidential Decree No. 266 (August 4, 1973) Mechanics of
Registration of Ownership and/or Title to land under PD No. 27.
3.g.1.   All CLTs issued pursuant to PD 27 shall be FILED by DAR
and RECORDED with the LRA and TRANSMITTED to ROD of the
province or city where the land is located. If registered land the DAR
shall indicate the number of ORIGINAL OR TRANSFER
CERTIFICATE OF THE TITLE.
3.g.2.   The ROD shall RECORD in the PRIMARY
BOOK and ANNOTATE A MEMORANDUM in the Certificate of Title
covering the land, with need of PRIOR SURRENDER of the owner's
duplicate Certificate of Title. It shall be the DUTY of the ROD to notify
the landowner of such fact within a reasonable time.
It the land is NOT REGISTERED under the Torrens System the ROD
shall RECORD the CLT in the PRIMARY ENTRY BOOK and in the
REGISTRATION BOOK for unregistered lands under Act 3344.
3.g.3.   An EMANCIPATION PATENT and/or GRANT shall be issued
by the DAR if the tenant-farmer shall have fully complied with the
requirement for a grant or title under PD 27. The title is based on
a duly approved survey plan.
If the land is under the Torrens System, the EP if filed with the
ROD, shall constitute conclusive authority for him to enter a TCT in
accordance with the patent/grant.
The ROD before cancelling the original of the certificate of title
and issuing a new one in favor of the tenant-grantee shall require
the registered owner or person in possession of the title to
SURRENDER THE OWNER'S DUPLICATE FOR
CANCELLATION, within a reasonable period. If the owner or party
withholding such duplicate certificate REFUSE or FAIL TO
SURRENDER within 30 days from and after receipt of
notice the ROD shall be AUTHORIZED TO CANCEL the
ORIGINAL as well as the OWNER'S DUPLICATE CERTIFICATE OF
TITLE and in lieu thereof issue a NEW ONE with the
corresponding OWNERS duplicate, in favor of the tenant-grantee.
If the patent or grant affects UNREGISTERED LANDS, the filing of the
EP with the ROD of the province or city where the land is situated,
shall bring the land under the operation of ACT 496, and the same
shall be considered registered land. It is the duty of the RODs, after
entry of the patent/grant in the REGISTRATION BOOK to ENTER an
ORIGINAL CERTIFICATE OF TITLE for such registered land and
issue an owner's duplicate certificate to the tenant-grantee.
3.g.4.   No FEE, PREMIUM, or TAX of any kind shall
be charge or imposed in connection with
the ISSUANCE and REGISTRATION of documents and titles, nor
shall postage dues and mailing charges be required in all matters
connected with the implementation of this Decree.
3.h.   RULES ON COVERAGE OF LANDS UNDER PD 27.
            3.h.1.   Rule 1
            Landed
estates or landholdings larger than 24 hectare (LOI
46 (December 7, 1972) — covered by OLT and there is no retention to the
landowner.
            3.h.2.   Rule 2
Landholding of 24 hectares or less (but above 7 hectares (LOI
46 (ibid.) and LOI 227 (November 16, 1974) covered by OLT but
landowner is entitled or retention except if  LOI 474 (October 21,
1976) applies.
            3.h.3.   Rule 3
            Landholding
of 7 hectares or less is EXEMPTED from OLT except
if LOI 474 is applicable i.e.,:
3.h.3.a.   Landowner owns other agricultural land of more than
seven hectares in aggregate area, or
3.h.3.b.   He owns COMMERCIAL, INDUSTRIAL,
RESIDENTIAL or URBAN LAND where he derive an adequate
income, DAR Memo, Circular No. 11, s. 1978 (April 21,
1978) adequate income is at least FIVE THOUSAND (P5000.00)
PESOS per annum. (gross income).
II. 3.i.   Republic Act No. 6657 — Comprehensive Agrarian Reform Law of
1988 (CARL 1988 (Sec. 1, RA 6657).
3.i.1.   Principles and Policies of the CARL. (Sec. 2, RA 6657)
3.i.1.a.   The WELFARE of the landless
farmers and farmworkers will receive the highest consideration of
the state to promote social justice (1st par.)
            This
will enhance their dignity and improve the quality of
their lives through greater productivity of agricultural lands.
3.i.1.b.   The vision of the law is to attain:
a.   Agrarian Reform,
b.   RURAL DEVELOPMENT, and
c.   Industrialization (1st par.).
3.i.1.c.   The establishment of OWNER-CULTIVATORSHIP of
ECONOMIC SIZE FARM is the basis of Philippine Agriculture,
(1st par.)
3.i.1.d.   There will be an EQUITABLE DISTRIBUTION OF
LANDS but with due regard to the rights of landowners to JUST
COMPENSATION. (2nd par.)
3.i.1.e.   * The agrarian reform program is founded on the right
of farmers and regular farmworkers, who are landless, TO OWN
directly or collectively the land they till or in the case of other
farmworkers to receive a JUST SHARE of the fruits thereof. (3rd
Par.)
The state shall encourage and undertake the JUST DISTRIBUTION
OF ALL AGRICULTURAL LANDS, subject to the PRIORITIES and
RETENTION LIMITS set forth in this Act, taking into
account ECOLOGICAL,
DEVELOPMENTAL and EQUITY consideration and subject to the
payment of  JUST COMPENSATION. (3rd par.)
The state shall apply the principles of  AGRARIAN REFORM OR
STEWARDSHIP in the disposition or utilization of the other natural
resources, including lands of the public domain, under lease or
concession suitable to agriculture, subject to PRIOR RIGHTS,
HOMESTEAD RIGHTS of small settlers and the rights
of  INDIGENOUS COMMUNITIES to their ancestral lands (5th par)
Ancestral lands of each indigenous cultural community shall include,
but not be limited to lands in the actual, continuous and open
possession and occupation of the community and its members.
The State may RESETTLE landless farmers and farmworkes in
its OWN agricultural estates, which shall be distributed to them in the
manner provided by law (6th par).
The state shall encourage the formation and maintenance of
ECONOMIC-SIZE FAMILY FARMS to be constituted by individual
beneficiaries and small landowners (7th par.).
The state shall protect the RIGHTS OF SUBSISTENCE
FISHERMEN, especially of local communities, to the PREFERENTAL
USE OF COMMUNAL MARINE, and FISHING
RESOURCES, both inland and offshore. It shall provide support to
such fishermen through APPROPRIATE TECHNOLOGY &
RESEARCH, ADEQUATE FINANCIAL, PRODUCTION AND
MARKETING ASSISTANCE and OTHER SERVICES. The state shall
also protect, develop and conserve such resources. The protection
shall extent to OFF-SHARE FISHING GROUNDS of subsistence
fishermen against foreign intrusion. Fishworkers shall receive a JUST
SHARE from their labor in the utilization of marine and fishing
resource. (8th par.)
THE STATE SHALL BE GUIDED BY THE PRINCIPLE THAT "LAND
HAS A SOCIAL FUNCTION AND LAND OWNERSHIP HAS A
SOCIAL RESPONSIBILITY." Owners of agricultural land have
the obligation to cultivate directly or through labor administration the
lands, they own and thereby make the land productive (9th par).
The state shall provide incentives to landowners to INVEST the
proceeds of the agrarian reform program to
promote INDUSTRIALIZATION,
EMPLOYMENT, and PRIVATIZATION of public sector enterprises.
(10th par).
The state may LEASE undeveloped lands of the public domain to
qualified entities for the development of capital-intensive farms and
traditional and pioneering crops especially those for export subject to
the prior rights of the beneficiaries under this Act. (11th par.)
3.j.   COVERAGE OF CARL 1988.
3.J.1.   Scope – All PUBLIC and PRIVATE Agricultural
lands regardless of tenurial arrangement and commodity produced,
including lands of the public domain suitable for agriculture. (1st par.
Sec. 4, RA 6657)
            Specific lands covered by CARP:
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.
3.k.   PRIORITIES – The DAR, in coordination with the PARC
shall plan and program the acquisition and distribution of all agricultural
lands through a period of ten (10) years from the effectively of this Act.
Land shall be acquired and distributed as follows:
Phase One:
1.   Rice and corn land under PD 27;
2.   Idle and abandoned lands
3.   Private lands voluntarily offered by the owners for agrarian
reform
4.   Foreclosed land by government financial institutions;
5.   Land acquired by the Presidential Commission on
Good Government; and
6.   All other lands owned by the Government devoted to or
suitable for agriculture.
            These
shall be acquired and distributed immediately upon
effectivity of the Act, with the implementation to
be completed within a period of not more than four (4) years
(Sec. 7, par. 2, RA 6657)
Phase Two:
1.   All Disposable and alienable public agricultural lands;
2.   All Arable public agricultural lands under agro-forest, pasture
and agricultural leases already cultivated and planted for crops
in accordance with Sec. 6, Art. XIII of the Constitution;
3.   All public agricultural lands which are opened for new
development and resettlement; and
4.   All private agricultural lands in excess of fifty (50) hectares.
            These
shall be distributed immediately upon the effectivity
of the Act, with the implementation to be completed within a
period of not more than four (4) years.
Phase Three: All private AGRICULTURAL LANDS commencing
with LARGE landholdings and proceeding
to MEDIUM and SMALL landholding under the following schedules:
a)   Landholdings ABOVE 24 hectares up to 50 hectares to
begin on the forth year from effectivity of this act and to be
completed within three years; and,
b)   Landholdings from the RETENTION LIMIT up to 24
hectares, to begin on the sixth year from effectivity of this Act
and to be completed within four year.
The PARC, upon the recommendation of the PARCCOM may
declare certain provinces or regions as PRIORITY LAND
REFORM AREAS, in which case the acquisition and distribution
of  PRIVATE AGRICULTURAL LANDS may be ahead of the
above schedules.
In effecting the Transfer of Land PRIORITY must be given to lands
that are tenanted.
3.L.   What lands are not covered by CARP?
3.L.1.   Those which are not suitable for agriculture or those which are
classified as mineral, forest residential, commercial or industrial lands.
(Sec. 3. ©, RA 6657);
3.L.2.   Those which have been classified and approved as NON-
AGRICULTURAL prior to June 15, 1988. (DOJ Opinion No. 44, S.
1990)
3.L.3.   Those which are EXEMPT pursuant to Sec. 10, RA 6657.
3.L.4.   Those which are devoted to poultry, swine or livestock-
raising as of June 15, 1988 pursuant to the Supreme Court ruling
on Luz Farms vs. The Hon. Secretary of Agrarian Reform (192 SCRA
51);
3.L.5.   Fishponds and prawn farms exempted pursuant to R.A. No.
7881, and its implementing Administrative Order No. 3, Series of
1995;
3.L.6.   Those which are retained by the landowners;
3.L.7.   Those lands or portions thereof under the coverage of  EO
407 but found to be no longer suitable for agriculture and therefore,
could not be given appropriate valuation by the LBP as determined by
DAR/LBP; and
3.L.8.   Those lands declared by Presidential Proclamations for certain
uses other than agricultural.
3.m.   What lands are EXEMPT from CARP coverage?
3.m.1.   Lands ACTUALLY, DIRECTLY and EXCLUSIVELY used
for parks, wildlife, forest reserves, reforestation, fish sanctuaries and
breeding grounds, watershed and mangroves.
3.m.2.   Private lands actually, directly and exclusively used for prawn
farms and fishponds, provided that the same have not been distributed
and CLOAs issue to agrarian reform beneficiaries.
3.m.3.   Land actually, directly and exclusively used and found to be
necessary for national defense, school/sites and campuses, including
experiment farm station operated by public or private schools for
educational purposes, seed and seedlings research and pilot
production centers, church sites and convents appurtenant thereto,
mosque sites and Islamic centers appurtenant thereof, communal
burial grounds and cemeteries, penal colonies and penal farms
actually worked by the inmates, government and private research and
quarantine centers and all lands with eighteen percent (18%) slope
and over, except those already developed. (Sec. 10, RA 6657)
3.n.   RETENTION LIMITS (Sec. 6, RA 6657).
3.n.1.   Rules and Procedures Governing the Exercise of Retention
Rights by Landowners and Award to children under Sec. 6 of RA
6657 (A.O. No. 11, Series of 1990; and A.O. No. 2, S. 2003)
A.   Landowners whose landholding are covered by CARP
may retain an area of  FIVE (5) hectares.
            In
addition, each of his children, (legitimate, illegitimate or
adopted may be AWARDED three (3) hectares as PREFERRED
BENEFICIARY provided —
1.   That the child was at least 15 years of age on the June
15, 1988 (RA 6657-effectivity); and
2.   The child was actually tilling the land or directly
managing the farmland from June 15, 1988 to the filing of
the application for retention and/or at the time of acquisition
of the land under CARP.
B.   The landowner, has the RIGHT TO CHOOSE the area to be
retained by him which shall
be COMPACT and CONTIGUOUS and least prejudicial to the
entire landholding and the majority of the farmers thereof;
C.   The landowner has the OBLIGATION to cultivate the land
directly or through labor administration, and thereby make the
land productive.
D.   If the area selected by the landowner for retention
is TENANTED, the tenant shall have the OPTION to choose
whether to REMAIN AS LESSEE or BE A BENEFICIARY in
same or another agricultural land with similar or comparable
feature. The tenant must exercise the option within one year form
the time the landowner manifest his choice of the area for
retention.
E.   Retention of husband and wife:
1.   For marriages covered by the New Civil Code, the
spouses who owns only CONJUGAL PROPERTIES may
retain a total of five (5) hectares unless there is an
agreement for the JUDICIAL SEPARATION OF
PROPERTIES. However, if either or both of them are
landowners in their respective rights (capital and/or
paraphernal). They may retain not more than five (5)
hectares each from their respective landholdings. In no
case, however, shall the total retention of such a
couple exceed 10 hectares, and
2.   For marriage covered by the New Family Code (August
3, 1988), a husband owning capital property and/or a wife
owning paraphernal property may retain not more than five
(5) hectares each provided they execute a JUDICIAL
SEPARATION OF PROPERTIES prior to entering the
marriage. In the absence of such an agreement all
properties (capital, paraphernal and conjugal) shall be
considered held in absolute community, therefore, only a
total of five (5) hectares may be retained.
F.   The original homestead grantees or direct compulsory heirs
who still owns the original homestead at the time of the approval
of RA 6657 may retain the same area as LONG AS THEY
CONTINUE TO CULTIVATE THE SAID HOMESTEAD.
3.n.2.   Right of Retention by Landowners under Presidential Decree
No. 27. Supplemental Guideline A.O. No. 04, Series of 1991).
            The policy statements are as follows:
3.n.2.a.   Landowners covered by PD 27 are entitled to
retain SEVEN hectares, except those whose entire tenanted rice
and corn lands are subject to acquisition and distribution under
OLT.
            AN
OWNER MAY NOT RETAIN UNDER THE
FOLLOWING CASES:
a)   If he as of October 21, 1972 owned more than 24
hectares of tenanted rice or corn lands; or
b)   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
3.n.2.b.   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.
3.n.2.c.   A landowner WHO HAS DIED must have manifested
during his lifetime his intention to exercise his right of retention
prior to 23 AUGUST 1990 (The finality of the Supreme Court
decision in the case "Association of Small Landowners of the
Philippines, Inc. et al. vs. Honorable Secretary of Agrarian
Reform) to allow his heirs to now exercise such right under these
Guidelines. Said heirs must show proof of the original landowners
intention.
            The
heirs may also exercise the original landowners' right
of retention if they can prove that the decedent HAD NO
KNOWLEDGE of OLT coverage over the subject property.
3.n.2.d.   A landowner is DEEMED TO HAVE WAIVED his right
of retention by the performance of ANY of the following acts.
a.   Signing the LTPA-FU covering the subject property;
b.   Entering into a DIRECT-PAYMENT SCHEME
AGREEMENT as evidence by a Deed of Transfer over the
subject property; and
c.   Signing/Submission of other documents indicating
CONSENT to have the subject property covered, such as
the form letter of the LBP on the disposition of the cash and
band portion of a land transfer claim for payment, and
the Deed of Assignment,
Warranties and Undertaking executed in favor of the LBP.
            Under A.O.2.
Series of 2003, The following are act or
omission constituting WAIVER of his right to exercise his right of
retention:
a)   Failure to manifest an intention for exercise his right to
retain WITHIN SIXTY (60) calendar days from receipt of
CARP coverage.
b)   Failure to state such intention upon offer to sell or
application under VLT/DPS scheme.
c)   Execution of a document stating that he expressly
WAIVED his right to retain. The MARO/PARO/RD shall
ATTEST to the due execution of the document.
d)   Execution of a LTPA-FU or application to Purchase
and Farmer's Undertaking (APFU) covering subject
property.
e)   Entering into VLT/DPS or VOS but FAILING TO
MANIFEST an INTENTION TO EXERCISE HIS RIGHT TO
RETAIN upon filing of the application for VLT/DPS or VOS.
f)   Execution and submission of any document that he
is CONSENTING to the CARP coverage of his entire
landholding;
g)   Performing any act constituting ESTOPPEL BY
LACHES which is the failure or neglect for
an unreasonable length of time to do that which he may
have done earlier by exercising due diligence warranting a
presumption that he abandoned his right or declined to
assert it.
3.n.2.e.   All rights previously acquired by the tenant-
farmers under PD 27 are RETAINED and RECOGNIZED.
3.n.2.f.   A landowner who owns lands other than rice and
corn shall be PERSUADED TO SELECT the area he will retain
from the "OTHER LAND" to prevent or minimize the possible
dislocation of farmer-beneficiaries who have been issued CLTs
or EPs.
3.n.2.g.   Where there are CLT or EP holders in the area to be
retained the DAR shall immediately INFORM the tenants and
provide them the opportunity to DISPUTE OR CONTEST the
landowners claim, Moreover, the DAR shall ensure that the
affected tenants should they so desire, will be given PRIORITY in
the distribution of other land of the landowners or other lands
identified by the DAR for redistribution, subject to right of those
clearly in place.
            The
tenants may OPT to remain in the retained area
as leaseholders, in which case, the required lease
agreements shall be executed in accordance with existing laws,
rules and regulations. The tenant must exercise this option within
a period of one (1) year from the time the landowners manifests
his choice of the area for retention .
3.n.3.   Period to Exercise Right of Retention under RA 6657 (Sec.
4, DAR AO 2, Series of 2003)
3.n.3.a.   The landowner may exercise his right of retention at
any time BEFORE RECEIPT OF NOTICE OF COVERAGE.
3.n.3.b.   Under the Compulsory Acquisition (CA) Scheme the
landowners shall exercise his right of retention WITHIN SIXTY
(60) DAYS from receipts of notice of coverage.
3.n.3.c.   Under the Voluntary Offer to Sell (VOS) and
the Voluntary Land Transfer (VLT)/Direct Payment
Scheme (DPS), the landowner shall exercise his right of
retention SIMULTANEOUSLY at the TIME OF OFFER for sale or
transfer.
3.n.4.   Criteria/Requirement for Award of Retention (Sec. 7, DAR AO
2, Series of 2003)
3.n.4.a.   The land is private agricultural land;
3.n.4.b.   The area chosen for retention shall be compact and
contiguous and shall be least prejudicial to the entire landholding
and the majority of the farmers therein;
3.n.4.c.   The landowner must execute an affidavit as to
the aggregate area of his landholding in the entire Philippines;
and
3.n.4.d.   The landowner must submit a list of his children who
are fifteen (15) years old or over as of 15 June 1988 and who
have been actually cultivating or directly managing the farm since
15 June 1988 for identification as preferred beneficiaries, as well
as evidence of such.
3.n.4.e.   The landowner must execute an affidavit stating
the names of all farmers, agricultural lessees and share tenants,
regular farmworkers, seasonal farmworkers, other farmworkers,
actual tillers or occupants, and/or other persons directly working
on the land; if there are no such persons, a sworn statement
attesting to such fact.
3.o.   LAND ACQUISITION (Chapter V, RA 6657)
3.o.1   What lands are acquired under CARP?
3.o.1.a.   Public ALIENABLE AND DISPOSABLE (A & D) lands
through Free Patent.
3.o.1.b.   Resettlement sites though CLOAs.
3.o.1.c.   Land covered by the Integrated Social Forestry
Program (ISFP) through STEWARDSHIP CONTRACT.
3.o.2.   The MODES OF ACQUIRING LANDS for distribution under
CARP.
3.o.2.a.   COMPULSORY ACQUISITION (CA) (Sec. 16, RA
6657)
3.o.2.b.   VOLUNTARY OFFER TO SELL (VOS) (Sec. 19, RA
6657)
3.o.2.c.   VOLUNTARY LAND TRANSFER/DIRECT PAYMENT
SCHEME (VLT/DPS) Sec. 20, RA 6657.
3.o.2.d.   OPERATION LAND TRANSFER (OLT) under PD
27 and EO 228; and
3.o.2.e.   EXECUTIVE ORDER No. 407, as amended by EO
448, EO 506, AO No. 03, Series of 1996 and AO No. 9, Series of
1997, for lands OWNED BY GOVERNMENT AGENCIES in
a proprietary capacity or the pubic A & D lands under their
administration by virtue of presidential proclamation.
3.o.3.   Procedure for Acquisition of Private Agricultural Lands (Sec.
16, RA 6657) COMPULSORY ACQUISITION:
3.o.3.a.   DAR IDENTIFIES the LAND, the LANDOWNER and
the BENEFICIARIES.
3.o.3.b.   DAR send NOTICE TO ACQUIRE THE LAND (Offer of
the DAR to pay a corresponding value) to the owner thereof,
by personal delivery or registered mail, and post the same in a
conspicuous place in the municipal bldg. and Barangay Hall of
the place where the property is located.
3.o.3.c.   Landowner/Administrator/Representative inform the
DAR of his ACCEPTANCE or REJECTION of the
offer within thirty (30) days from date of receipt of written
notice by personal delivery or registered mail.
3.o.3.d.   If landowner ACCEPTS the offer of the DAR, the LBP
pays the landowner the purchase price of the land
within thirty days after he executes and delivers a deed of
transfer in favor of the government and surrenders the Certificate
of Title and other muniments of title
3.o.3.e.   In case of rejection or failure to reply, the DAR shall
conduct SUMMARY ADMINISTRATIVE PROCEEDINGS to
determine the compensation for the land by requiring the
landowner, LBP and other interested parties to submit evidence
as to just compensation for the land within 15 days from receipt
of notice after which the case to deemed submitted for decision.
            The
DAR shall decide the case within 30 days after it is
submitted for decision.
3.o.3.f.   Upon receipt by the landowner of the corresponding
payment or, in case of rejection 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, the DAR shall take immediate possession of the
land and shall REQUEST the proper RODs 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.
3.o.3.g.   Any party who disagrees with decision may bring the
matter to the court of proper jurisdiction (SAC) for final
determination of just compensation.
3.o.4.   VOLUNTARY OFFER TO SELL (VOS) is a scheme wherein
landowners came, forward and voluntarily offer the agricultural lands
including improvements thereon if any, for coverage regardless of the
phasing. The DAR encourages this made because VOS generally
ensures the cooperation of the landowners.
3.o.4.a.   Landowners other than banks and other financial
institutions, who voluntarily offer their lands for sale shall be
entitled to an additional five percent (5%) cash payment
as incentive; (Sec. 19, RA 6657)
3.o.4.b.   Landowners can file their application for VOS either at
the DAR Central Office, or any field of the DAR.
3.o.5.   VOLUNTARY LAND TRANSFER (VLT)-Landowners of
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 required by the government
and transferred pursuant to this Act.
b)   The terms and conditions of such transfer shall not be
less favorable to the transferee than those of the
government's standing offer to purchase from the landowner
and to resell to the beneficiaries, if such offers have been
made and are fully known to both parties.
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. (Sec.
20, R.A. 6657)
3.o.5.a.   If the VLT/DPS remain unresolved after one (1) year,
the land shall be covered under compulsory acquisition.
3.o.5.b.   Land titles with existing liens and encumbrances may
not be subject of VLT/DPS scheme. (i.e., land mortgaged to
banks). This is a ruling made by DAR to simplify VLT/DPS
transactions, particularly too facilitate the immediate transfer of
title to the ARBs.
3.p.   QUALIFIED BENEFICIARIES. — The lands covered by the CARP
shall be distributed as much a possible to landless residents of the same
barangay, or in the absence thereof, landless resident of the same
municipality in the following order of priority:
a)   agricultural lessees and share tenants;
b)   regular farmworkers;
c)   seasonal farmworkers;
d)   other farmworkers;
e)   actual tillers or occupants of public lands;
f)   collectives or cooperatives of the above beneficiaries; and
g)   others directly working on the land. (Par. 1, Sec. 22, RA
6657)
3.p.1.   The children of landowners who are qualified under Sec. 6 of
this Act shall be given preference in the distribution of the land of their
parents; And, further, that actual tenant-tillers in the landholding shall
be ejected or removed therefrom. (Par. 2, Sec. 22, RA 6657).
3.p.2.   Beneficiaries under Presidential Decree No. 27 who have
culpably sold, disposed of, or abandoned their land are disqualified to
become beneficiaries under this program. (Par. 3, Sec. 22, RA 6657).
3.p.3.   A basic qualification of a beneficiary shall be his willingness,
aptitude, and ability to cultivate and make the land as productive as
possible. The DAR shall adopt a system of monitoring the record or
performance of each beneficiary, so that any beneficiary guilty of
negligence or misuse of the land or any support extended to him shall
forfeit his right to continue as such beneficiary. (Par. 4, Sec. 22, RA
6657).
3.p.4.   If, due to the landowner's retention rights or to the number of
tenants, lessees, or workers on the land, there is not enough land to
accommodate any or some of them, they may be granted ownership of
other lands available for distribution under this Act, at the option of the
beneficiaries. (Par. 5, Sec. 22, RA 6657)
3.p.5.   Farmers already in place and those not accommodated in the
distribution of lands from the public domain. (Par. 6, Sec. 22, RA
6657).
3.p.6.   Distribution Limit. — No qualified beneficiary may own more
than three (3) hectares of agricultural land. (Sec. 23, RA 6657).
3.p.7.   Award to Beneficiaries. — The rights and responsibilities of
the beneficiary shall commence from the time the DAR makes an
award of the land to him, which award shall be completed within one
hundred eighty (180) days from the time the DAR takes actual
possession of the land. Ownership of the beneficiary shall be
evidenced by a Certificate of Land Ownership Award, which shall
contain the restrictions and conditions provided for in this Act, and
shall be recorded in the Register of Deeds concerned and annotated
on the Certificate of Title. (Sec. 24, RA 6657).
3.p.8.   Award Ceilings for Beneficiaries. — Beneficiaries shall be
awarded an area not exceeding three (3) hectares, which may cover a
contiguous tract of land or several parcels of land comulated up to the
prescribed award limits.
            For
purposes of this Act, a landless beneficiary is one who owns, less
than three (3) hectares of agricultural land.
            The
beneficiaries may opt for collective ownership, such as co-
ownership or farmers cooperative or some other form of collective
organization: Provided, That the total area that may be awarded shall
not exceed the total number of co-owners or members of the
cooperative or collective organization multiplied by the award limit
above prescribed, except in meritorious cases as determined by the
PARC. Title to the property shall be issued in the name of the co-
owners or the cooperative or collective organization as the case may
be. (Sec. 25, RA 6657).
3.p.9.   Payment by Beneficiaries. — Lands awarded pursuant to this
Act shall be paid for the beneficiaries to the LBP in thirty (30) annual
amortizations at six percent (6%) per annum. The payments for the
first three (3) years after the award may be at reduced amounts as
established by the PARC: Provided, That the first five (5) annual
payments may not be more than five percent (5%) of the value of the
annual gross production as established by the DAR. Should the
scheduled annual payments after the fifth year exceed ten percent
(10%) of the annual gross production and the failure to produce
accordingly is not due to the beneficiary's fault, the LBP
may reduce the interest rate or reduce the principal obligation to make
the repayment affordable.
            The
LBP shall have a lien by way of mortgage on the land
awarded to the beneficiary; and this mortgage may be foreclosed by
the LBP for non-payment of an aggregate of three (3) annual
amortizations. The LBP shall advise the DAR of such proceedings and
the latter shall subsequently award the forfeited landholding to
other qualified beneficiaries. A beneficiary whose land, as provided
herein, has been foreclosed shall thereafter be permanently
disqualified from becoming a beneficiary under this Act. (Sec. 26, RA
6657).
3.p.10.   Transferability of Awarded Lands. — lands acquired by
beneficiaries under this Act may not be sold, transferred or
conveyed except through hereditary succession, or to the government,
or to the LBP, or to other qualified beneficiaries for a period of ten (10)
years; Provided, however, That the children or the spouse of the
transferor shall have a right to repurchase the land from the
government or LBP within the period of two (2) years. Due notice of
the availability of the land shall be given by the LBP to he Barangay
Agrarian reform Committee (BARC) of the barangay where the land is
situated. The Provincial Agrarian reform coordinating Committee
(PARCCOM), as herein provided, shall, in turn, be given due notice
thereof by the BARC.
            If
the land has not yet been fully paid by the beneficiary, the
rights to the land may be transferred or conveyed, with prior approval
of the DAR, to any heir of the beneficiary or to any other
beneficiary who, as a condition for such transfer or conveyance, shall
cultivate the land himself. Failing compliance herewith, the land shall
be transferred to the LBP which shall give due notice of the availability
of the land in the manner specified in the immediately preceding
paragraph.
            In
the event of such transfer to the LBP, the latter
shall compensate the beneficiary in one lump sum for the amounts the
latter has already paid, together with the value of improvements he
has made on the land.(Sec. 27, RA 6657).
3.Q.   JUST COMPENSATION — Defined as "fair market value". It is the
price which the buyer pays without coercion and a seller accepts without
compulsion. (Supreme Court Rulings)
3.Q.1.   Land valuation is not an exact science but an exercise fraught
with inexact estimates. This requires integrity,
conscientiousness and prudence on the part off those responsible for
determining its value. What is important ultimately is that the land
value approximates as closely as possible, what is broadly considered
by the community to be just. (A.O. 06, Series of 1992).
3.Q.2.   Payment can be partly in cash and partly in bonds.
3.Q.3.   Factors/Criteria considered in determining just compensation:
1.   Cost of Acquisition of the land;
2.   Current Value of like properties;
3.   Nature of the land;
4.   Actual use;
5.   Income;
6.   Sworn valuation by the landowner;
7.   Tax Declaration;
8.   Assessment made by government assessors;
9.   The social and economic benefits contributed by the farmers,
and
10.   Non-payment of taxes or loans secured from any
government financing institution on the land.
3.Q.4.   Basic Formula for the valuation of lands covered by VOS and
CA —
            LV = (CNI x 0.6) + (CS x 0.3) + (MV x 0.1)
            where:
LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value per Tax Declaration
3.Q.5.   Executive Order No. 405 dated 14 June 1990 transferred the
responsibility for land valuation from DAR to the LBP.
3.Q.6.   The final determination of just compensation is a judicial
function. The LBP merely conducts administrative valuation which may
be contested in the court of proper jurisdiction. (Magana vs. Paitan,
G.R. No. 60269, dated 13 September 1991).
3.Q.7.   Cash portion shall vary according to the size of the
landholdings. The larger the landholding, the smaller the cash
portion. The underlying principle is that small land owners are
presumed to have greater need for cash to aid them in their bid to shift
their capital from agriculture to industry.
            Payment shall be under the following terms and conditions:
a)   Lands above 50 has. — 25% cash; 75% bonds;
b)   Lands above 24-50 has. — 30% cash; 70% bonds;
c)   Lands 24 has. and below — 35% cash; 65% bonds
            Cash portion is increased by 5% for VOS.
3.Q.8.   What the features of the new LBP — bonds?
a.   This means bondholders can only get the principal at the end
of 25 years. On the otherhand, the new LBP bonds mature in ten
years, and one-tenth of the face value of the new bonds matures
every year from date of issue until the tenth year.
b.   The new LBP bonds also bear market rates of interest the
same as those of 91-day treasury bills. Old LBP bonds have a
fixed six percent (6%) interest rate.
c.   Finally, these bonds have alternative uses. They may be used
by the landowner, his successors in interest, or his assignees, for
any of the following:
•   Acquisition of land or other real properties of the
government, including assets under the Asset Privatization
Trust, and other assets foreclosed by the government
financial institutions;
•   Acquisition of shares of stock of government owned or
controlled corporations, or shares of stocks owned by
government in private corporations;
•   Substitution for surety or bail bonds for the provisional
release of accused persons, or for performance bonds;
•   Security for loans with some government financial
institutions, provided the proceeds are invested in an
economic enterprise, preferably in a small and medium
scale industry;
•   Payment for various taxes and fees to government, up to
a certain percentage of the outstanding balance of the
financial instrument, and provided further that the PARC
shall have determined the allowable percentage mentioned;
•   Payment for tuition of the immediate family of the original
landholder in government universities, colleges, trade
schools, and other institutions;
•   Payment of bills in public hospitals; and
•   Other uses as the PARC may allow from time to time.
3.R   ADMINISTRATIVE ADJUDICATION
3.R.1.   Quasi-Judicial Powers of the DAR — The DAR is hereby
vested with primary jurisdiction to determine and adjudicate agrarian
reform matters and shall have exclusive original jurisdiction over all
matters involving the implementation of agrarian reform, except those
falling under the exclusive jurisdiction of the Department of Agriculture
(DA) and the Department of Environment and Natural Resources
(DENR).
            It
shall not be bound by technical rules of
procedures and evidence but shall proceed to hear and decide all
cases, disputes or controversies in a most expeditious manner,
employing all reasonable means to ascertain the facts of every case in
accordance with justice and equity and the merits of the case: Toward
this end, it shall adopt a uniform rule or procedure to achieve a just
expeditious and inexpensive determination of every action or
proceeding before it.
            It
shall have the power to summon witnesses, administer oaths,
take testimony, require submission of reports, compel the production
of books and documents and answers to interrogatories and issue
subpoena, and subpoena duces tecum and to enforce its writs through
sheriffs or other duly deputized officers. It shall like wise have the
power to punish direct and indirect contempts in the same manner and
subject to the same penalties in the Rules of Court.
            Responsible farmer
leaders shall be allowed to represent
themselves, their fellow farmers, or their organizations in any
proceedings before the DAR: Provided, however, That when there are
two or more representatives for any individual or group, the
representatives should choose only one among themselves to
represent such party or group before any DAR proceedings. (Sec.
50, RA 6657).
3.R.2.   Agrarian Law Implementation Cases — The Adjudicator or the
Board shall have no jurisdiction over matters involving
the administrative implementation of RA No. 6657, otherwise known
as the Comprehensive Agrarian Reform Law (CARL) of 1988 and
other agrarian laws as enunciated by pertinent rules and administrative
orders, which shall be under the exclusive prerogative of and
cognizable by the Office of the Secretary of the DAR in accordance
with his issuances, to wit:
3.1   Classification and identification of landholdings for
coverage under the agrarian reform program and the initial
issuance of CLOAs and EPs, including protests or oppositions
thereto and petitions for lifting of such coverage;
3.2   Classification, identification, inclusion, exclusion,
qualification, or disqualification of potential/actual farmer-
beneficiaries;
3.3   Subdivision surveys of land under CARP;
3.4   Recall, or cancellation of  provisional lease rentals,
Certificates of Land Transfers (CLTs) and CARP Beneficiary
Certificates (CBCs) in cases outside the purview of Presidential
Decree (PD) No. 816, including the issuance, recall, or
cancellation of EPs or CLOAs not yet registered with the
Register of Deeds;
3.5   Exercise of the right of retention by the landowner;
3.6   Application for exemption from coverage under Section
10 of RA 6657;
3.7   Application for exemption pursuant to Department of Justice
(DOJ) Opinion No. 44 (1990);
3.8   Exclusion from CARP coverage of agricultural land used
for livestock, swine, and poultry raising;
3.9   Cases of exemption/exclusion of  fish pond and prawn
farms from the coverage of CARP pursuant to RA 7881;
3.10   Issuance of Certificate of Exemption for land subject of
Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA)
found unsuitable for agricultural purposes;
3.11   Application for conversion of agricultural land to residential,
commercial, industrial, or other non agricultural uses and
purposes including protests or oppositions thereto;
3.12   Determination of the rights of agrarian reform beneficiaries
to homelots;
3.13   Disposition of excess area of the tenant's/farmer-
beneficiary's landholdings;
3.14   Increase in area of tillage of a tenant/farmer-beneficiary;
3.15   Conflict of claims in landed estates administered by DAR
and its predecessors; or
3.16   Such other agrarian cases, disputes, matters or
concerns referred to it by the Secretary of the DAR. (A.O. No. 6,
Series of 2000 and Sec. 3, Rule II, 2003 Rules of Procedure
(DARAB).
3.R.3.   Primary and Exclusive Original Jurisdiction of the DAR
Adjudication Board (DARAB) — The Adjudicator shall
have primary and exclusive original jurisdiction to determine and
adjudicate the following cases:
1.1   The rights and obligations of persons, whether natural or
juridical, engaged in the management, cultivation, and use of all
agricultural lands covered by Republic Act (RA) No. 6657,
otherwise known as the Comprehensive Agrarian Reform Law
(CARL), and other related agrarian laws;
1.2   The preliminary administrative determination of reasonable
and just compensation of lands acquired under Presidential
Decree (PD) No. 27 and the Comprehensive Agrarian Reform
Program (CARP);
1.3   The annulment or cancellation of lease contracts or deeds
of sale or their amendments involving lands under the
administration and disposition of the DAR or Land Bank of the
Philippines (LBP);
1.4   Those cases involving the ejectment and dispossession of
tenants and/or leaseholders;
1.5   Those cases involving the sale, alienation, pre-emption,
and redemption of agricultural lands under the coverage of the
CARL or other agrarian laws;
1.6   Those involving the correction, partition, cancellation,
secondary and subsequent issuances of Certificates of Land
Ownership Award (CLOAs) and Emancipation Patents (EPs)
which are registered with the Land Registration Authority;
1.7   Those cases involving the review of leasehold rentals;
1.8   Those cases involving the collection of amortizations on
payments for lands awarded under PD No. 27, as amended, RA
No. 3844, as amended, and RA No. 6657, as amended, and
other related laws, decrees, orders, instructions, rules, and
regulations, as well as payment for residential, commercial, and
industrial lots within the settlement and resettlement areas under
the administration and disposition of the DAR;
1.9   Those cases involving the annulment or rescission of lease
contracts and deeds of sale, and the cancellation or amendment
of titles pertaining to agricultural lands under the administration
and disposition of the DAR and LBP; as well as EPs issued
under PD 266, Homestead Patents, Free Patents, and
Miscellaneous Sales Patents to settlers in settlement and re-
settlement areas under the administration and disposition of the
DAR;
1.10   Those cases involving boundary disputes over lands under
the administration and disposition of the DAR and the LBP, which
are transferred, distributed, and/or sold to tenant-beneficiaries
and are covered by deeds of sale, patents, and certificates of
title;
1.11   Those cases involving the determination of title to
agricultural lands where this issue is raised in an agrarian dispute
by any of the parties or a third person in connection with the
possession thereof for the purpose of preserving the tenure of the
agricultural lessee or actual tenant-farmer or farmer-beneficiaries
and effecting the ouster of the interloper or intruder in one and
the same proceeding; and
1.12   Those cases previously falling under the original and
exclusive jurisdiction of the defunct Court of Agrarian
Relations under Section 12 of PD No. 946 except those cases
falling under the proper courts or other quasi-judicial bodies;
1.13   Such other agrarian cases, disputes, matters or
concerns referred to it by the Secretary of the DAR. (Sec. 1,
Rule II, 2003 Rules of Procedure (DARAB).
3.R.4.   Certification of the BARC — The DAR shall not take
cognizance of any agrarian dispute or controversy unless
a certification from the BARC that the dispute has been submitted to it
for mediation and conciliation without any success of settlement is
presented: Provided, however, that if no certification is issued by the
BARC within thirty (30) days after a matter or issue is submitted to it
for mediation or conciliation the case or dispute may be brought before
the PARC.(Sec. 53, RA 6657).
3.R.5.   Finality of Determination — Any case or controversy before it
shall be decided within thirty (30) days after it is submitted for
resolution. Only one (1) motion for reconsideration shall be allowed.
Any order, ruling or decision shall be final after the lapse of fifteen (15)
days from receipt of a copy thereof. (Sec. 51, RA 6657).
3.R.6.   Frivolous Appeal — To discourage frivolous or dilatory appeals
from the decisions or order on the local or provincial levels, the DAR
may impose reasonable penalties, including but not limited
to fines or censures upon erring parties. (Sec. 52, RA 6657).
3.S.   JUDICIAL REVIEW
            (Chapter XIII, RA 6657)
3.S.1.   Certiorari — Any decision, order, award or ruling of the DAR
on any agrarian dispute or on any matter pertaining to the application,
implementation, enforcement, or interpretation of this Act and other
pertinent laws on agrarian reform may be brought to the Court of
Appeals by certiorari except as otherwise provided in this Act
within fifteen (15) days from the receipt of a copy thereof. The findings
of fact of the DAR shall be final and conclusive if based
on substantial evidence. (Sec. 54, RA 6657).
3.S.2.   Special Agrarian Court — The Supreme Court shall designate
at least one (1) branch of the Regional Trial Court (RTC) within each
province to act as a Special Agrarian Court.
            The
Supreme Court may designate more branches to constitute
such additional Special Agrarian Courts as may be necessary to cope
with the number of agrarian cases in each province. In the designation,
the Supreme Court shall give preference to the Regional Trial Courts
which have been assigned to handle agrarian cases or whose
presiding judges were former judges of the defunct Court of Agrarian
Relations.
            The
Regional Trial Court (RTC) judges assigned to said courts
shall exercise said special jurisdiction in addition to the regular
jurisdiction of their respective courts.
            The
Special Agrarian Courts shall have the powers and
prerogatives inherent in or belonging to the Regional Trial
Courts. (Sec. 56, RA 6657).
3.S.3.   Special Jurisdiction of the Special Agrarian Courts — The
Special Agrarian Courts shall have original and exclusive
jurisdiction over all petitions for the determination of just
compensation to landowners, and the prosecution of all criminal
offenses under this Act. The Rules of Court shall apply to all
proceedings before the Special Agrarian Courts, unless modified by
this Act.
            The
Special Agrarian Courts shall decide all appropriate cases
under their special jurisdiction within thirty (30) days from submission
of the case for decision. (Sec. 57, RA 6657).
3.S.4.   Orders of the Special Agrarian Courts — No order of the
Special Agrarian Courts on any issue, question, matter or incident
raised before them shall be elevated to the appellate courts until the
hearing shall have been terminated and the case decided on the
merits. (Sec. 59, RA 6657).
3.S.5.   Appeals — An appeal may be taken from the decision of the
Special Agrarian Courts by filing a petition for review with the Court of
Appeals within fifteen (15) days after receipt of notice of the decision;
otherwise, the decision shall become final.
            An
appeal from the decision of the Court of Appeals, or from
any order, ruling or decision of the DAR, as the case may be, shall be
by a petition for review with the Supreme Court within a non-
extendible period of  fifteen (15) days from receipt of a copy of said
decision. (Sec. 60, RA 6657).
3.S.6.   Procedure on Review — Review by the Court of Appeals or
the Supreme Court, as the case may be, shall be governed by
the Rules of Court. The Court of Appeals, however, may require the
parties to file simultaneous memoranda within a period of fifteen (15)
days from notice, after which the case is deemed submitted for
decision. (Sec. 61, RA 6657).
3.S.7.   Preferential Attention in Courts — All courts in the Philippines,
both trial and appellate, shall give preferential attention to all cases
arising from or in connection with the implementation of the provisions
of this Act.
            All
cases pending in court arising from or in connection with the
implementation of this Act shall continue to be heard, tried and
decided into their finality, notwithstanding the expiration of the ten-year
period mentioned in Section 5 hereof. (Sec. 62, RA 6657).
3.S.8.   No Restraining Order or Preliminary Injunction — No court in
the Philippines shall have jurisdiction to issue any restraining
order or writ of preliminary injunction against the PARC or any of its
duly authorized or designated agencies in any case, dispute or
controversy arising from, necessary to, or in connection with the
application, implementation, enforcement, or interpretation of this Act
and other pertinent laws on agrarian reform. (Sec. 55, RA 6657).
3.S.9.   Immunity of Government Agencies from Undue Interference —
No injunction, restraining order, prohibition or mandamus shall be
issued by the lower courts against the Department of Agrarian Reform
(DAR), the Department of Agriculture (DA), the Department of
Environment and Natural Resources (DENR), and the Department of
Justice (DOJ) in their implementation of the program. (Sec. 68, RA
6657).
3.T.A.   Prohibited Acts and Omissions by Landowners under RA
6657 (Sec. 73, RA 6657).
3.T.A.1.   Ownership and Possession of Lands, beyond allowable
limits.
            The
ownership or possession, for the purpose of circumventing
the provisions of this Act, of agricultural lands in excess of the total
retention limits or award ceiling by any person, natural or juridical,
except those under collective ownership by farmer-beneficiaries, (Sec.
73 (a), RA 6657).
3.T.A.2.   Prohibited Sale, Transfer, Conveyance or Change in the
nature of the land.
            The
sale, transfer, conveyance or change of the nature of lands
outside of urban centers and city limits either in whole or in part after
the effectivity of this act. The date of the registration of the deed of
conveyance in the Register of Deeds with respect to titled lands and
the date of the issuance of the tax declaration to the transferee of the
property with respect to unregistered lands, as the case may be, shall
be conclusive for the purpose of this Act. (Sec. 73 (e), RA 6657).
3.T.A.3.   Illegal/Premature/Unauthorized Conversion.
            The
conversion by any landowner of his agricultural land into any
non-agricultural use with intent to avoid the application of this Act to
his landholdings and to dispossess his tenant farmers of the land tilled
by them. (Sec. 73©, RA 6657).
3.T.B.   Prohibited Acts and Omissions by Beneficiaries under RA 6657.
3.T.B.1.   Sale, Transfer, Conveyance of Rights Acquired as a
Beneficiary.
            The
sale, transfer or conveyance by a beneficiary of the right to
use or any other usufructuary right over the land he acquired by virtue
of being a beneficiary, in order to circumvent the provisions of this
Act. (Sec. 73 (f), RA 6657).
3.T.B.2.   Misuse or Diversion of Financial Aid and Support Services.
            This
will result to sanction against the guilty beneficiary including
the forfeiture of the land transferred to him or lesser sanction as may
be provided by PARC without prejudice to criminal prosecution. (DAR
MC 19, 1996)
3.T.B.3.   Misuse of the Land
            The
DAR shall adopt a system of monitoring the record or
performance of each beneficiary, so that any beneficiary guilty of
negligence or misuse of the land or any support extended to him shall
forfeit his right to continue as such beneficiary. (Par. 4, Sec. 22, RA
6657).
3.T.B.4.   Continuous Neglect or Abandonment of Awarded Lands.
            Beneficiaries
under Presidential Decree No. 27 who
have culpably sold, disposed of, or abandoned their land are
disqualified to become beneficiaries under this Program. (Par. 3, Sec.
22, RA 6657).
            Neglect
or abandonment is defined as the "willful failure of the
ARB", together with his farm household, to cultivate, till, or develop his
land to produce any crop, or to use the land for any specific economic
purpose continuously for a period of two calendar years."(DAR A.O. 2
(1994))
3.T.B.5.   Default and Failure in the Payment of amortization to
Landowners.
            "Default
in the obligation of the ARBs to pay the aggregate
of three (3) consecutive amortizations to the landowner in the case of
awarded lands under voluntary land transfer/direct payment scheme,
except in cases of fortuitous events and force majeure" is
administrative sanctioned. (Part I, item A (1) of DAR MC 19 (1996) in
relation to Sec. 26, RA 6657)
3.T.B.6.   Failure to pay Amortization to LBP.
            The
failure to pay amortizations to LBP is penalized under DAR
MC 19 (1996) which states that "failure of the ARBs to pay at
least three (3) consecutive amortizations to the LBP in the case of
awarded lands under Compulsory Acquisition (CA) or Voluntary Offer
to Sell (VOS), except in the case of fortuitous events and force
majeure."
3.T.B.7.   Waiver of Rights to Awarded Lands
            The waiver
of rights to awarded lands by a beneficiary as an
administrative offense. (Part I, Item A, No. 9 of MC 19 (1996)).
3.T.B.8.   FBs Surrender of Awarded Lands to Landowner or other
Non ARBs.
            The
surrender by a beneficiary of his awarded lands to
landowner or other non-ARBs, is penalized under part I, item A (10)
of MC 19 (1996).
3.T.B.9.   Material Misrepresentation of Qualification by the
Beneficiary.
3.T.C.   Prohibited Acts and Omissions by other Persons under RA 6657.
3.T.C.1.   Forcible Entry and Unlawful Detainer.
            The forcible
entry or illegal detainer by persons who are not
qualified beneficiaries under this Act to avail themselves of the rights
and benefits of the Agrarian Reform Program. (Sec 73 (b), RA 6657).
3.T.C.2.   Obstruction and Prevention of CARP Implementation.
            The
willful prevention or obstruction by any person, association or
entity of the implementation of the CARP. (Sec. 73 (d), RA 6657).
3.U.   Penalties for the violation of the provision of RA 6657.
            Any
person who knowingly or willfully violates the provisions of this
Act shall be punished by imprisonment of not less than one (1) month to not
more than three (3) years or a fine of not less than one thousand pesos
(P1,000.00) and not more than fifteen thousand pesos (P15,000.00),
or both, at the discretion of the court.
            If
the offender is a corporation or association, the officer responsible
therefor shall be criminally liable. (Sec. 74, RA 6657).
3.V.   Effectivity Clause:
            This
Act (RA 6657) shall take effect immediately after publication in at
least two (2) national newspaper of general circulation.
Approved: June 10, 1988
Effectivity: June 15, 1988

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