THE POWER OF EMINENT DOMAIN

AS APPLIED TO LGUs
LOCAL EMINENT DOMAIN
● SEC. 19. - A local government unit may, through its chief executive and acting
pursuant to an ordinance, exercise the power of eminent domain for public use,
or purpose, or welfare for the benefit of the poor and the landless, upon
payment of just compensation, pursuant to the provisions of the Constitution
and pertinent laws: Provided, however, That the power of eminent domain may
not be exercised unless a valid and definite offer has been previously made to
the owner, and such offer was not accepted: Provided, further, That the local
government unit may immediately take possession of the property upon the
filing of the expropriation proceedings and upon making a deposit with the
proper court of at least fifteen percent (15%) of the fair market value of the
property based on the current tax declaration of the property to be
expropriated: Provided, finally, That, the amount to be paid for the expropriated
property shall be determined by the proper court, based on the fair market value
at the time of the taking of the property.
EMINENT DOMAIN
● Is the right or power of a sovereign state to appropriate private property to
particular uses to promote public welfare.

● An indispensable attribute of sovereignty; a power grounded in the primary

duty of government to serve the common need and advance the general
welfare.

● Essentially legislative in nature; but may be validly delegated to LGUs.

● NOT an inherent power in a municipal corporation; and before it can

exercise this, a LAW must exist conferring such power.
General Requirements:
1. Necessity

2. Private property

3. Taking

4. Public use

5. Just compensation

6. Due process
Specific Requirements:
1. It is exercised through its chief executive and acting pursuant to an
ordinance;

2. It is for public use, or purpose, or welfare for the benefit of the poor and
the landless;

3. Payment of just compensation, pursuant to the provisions of the

Constitution and pertinent laws; and

4. A valid and definite offer has been previously made to the owner, and such
offer was not accepted.
Mere resolution will not suffice.
● ORDINANCE – has the force and effect of laws
● Resolution → is merely an expression of the sentiment of the local legislative
body.

● ORDINANCE – takes effect after three (3) readings

● Resolution → can take effect after two (2) readings only.

● However, mere form should not affect the validity of the action of the
council if its adoption be attended by all the solemnities which the law
requires in the case of an act complying with the prescribed form.
Public use, purpose or welfare:
● Socialized housing

● Construction or extension of roads, streets, sidewalks, viaducts, bridges,

ferries, levees, wharves, or piers

● Construction or improvement of public buildings

● Establishment of parks, playgrounds, or plazas

● Establishment of market places

● Construction of artesian wells or water supply systems

Public use, purpose or welfare:
● Establishment of cemeteries or crematories

● Establishment of drainage systems, cesspools, or sewerage systems

● Construction of irrigation canals or dams

● Establishment of nurseries, health centers or hospitals

● Establishment of abattoirs

● Building of research, breeding, or dispersal centers for animals

Payment of Just Compensation
● JUST COMPENSATION – full and fair equivalent of the property taken from
the private owner by the expropriator in order to indemnify the owner for
the loss he has sustained as a result of the expropriation.

● Concept of FAIR MARKET VALUE also presupposes that it shall be paid within
a reasonable time → the expropriator must pay the private owner within
five (5) years from the finality of the judgment in the expropriation
proceedings.
Reversion/Recovery of property
● Once the purpose is terminated or peremptorily abandoned, or if the
government devotes the property to another public use which is very much
different from the original or deviates from the declared purpose to benefit
another private person, then the former owner, if he so desires, may seek its
reversion, subject to return of just compensation.

● The landowner is entitled to recover possession of the property expropriated

if the government fails to fully pay just compensation to the owner within a
period of five (5) years from the finality of the judgment in an expropriation
proceeding.
Valid and definite offer not accepted
● Must be in writing

● Specify the property, reasons for acquisition, and price offered

● If accepted, contract of sale; no need to expropriate

● If owner counter-offers higher price, local chief executive shall call them to a
conference for purpose of reaching an agreement on the selling price.
Chairman of appropriate or finance committee, or in his absence, any
member of the sanggunian, shall participate in the conference.
● Local chief executive shall cause the provincial, city or municipal attorney
concerned, or in his absence, the provincial or city prosecutor, to file
expropriation proceedings in the proper court.

● Public purpose need not be proven or established first before the LGU can
take immediate possession of property upon deposit of 15% of FMV.

● LGC does not require LGUs to first secure the approval of the DAR for
conversion of lands from agricultural to non-agricultural.
RA 7279
(Urban Development and Housing Act of 1992)
● Sec. 9. Priorities in the Acquisition of Land. — Lands for socialized housing shall be acquired
in the following order:
● (a) Those owned by the Government or any of its subdivisions, instrumentalities, or agencies,
including government-owned or controlled corporations and their subsidiaries;
● (b) Alienable lands of the public domain;
● (c) Unregistered or abandoned and idle lands;
● (d) Those within the declared Areas for Priority Development, Zonal Improvement Program sites,
and Slum Improvement and Resettlement Program sites which have not yet been acquired;
● (e) Bagong Lipunan Improvement of Sites and Services or BLISS Sites which have not yet been
acquired;
● (f) Privately-owned lands.
● Where on-site development is found more practicable and advantageous to the beneficiaries,
the priorities mentioned in this section shall not apply. The local government units shall give
budgetary priority to on-site development of government lands
● Section 10. Modes of Land Acquisition. — The modes of acquiring lands for purposes of this
Act shall include, among others, community mortgage, land swapping, land assembly or
consolidation, land banking, donation to the Government, joint-venture agreement,
negotiated purchase, and expropriation: Provided, however, That expropriation shall be
resorted to only when other modes of acquisition have been exhausted: Provided,
further, That where expropriation is resorted to, parcels of land owned by small property
owners shall be exempted for purposes of this Act: Provided, finally, That abandoned
property, as herein defined, shall be reverted and escheated to the State in a proceeding
analogous to the procedure laid down in Rule 91 of the Rules of Court.

● For the purposes of socialized housing, government-owned and foreclosed properties shall
be acquired by the local government units, or by the National Housing Authority primarily
through negotiated purchase: Provided, That qualified beneficiaries who are actual
occupants of the land shall be given the right of first refusal.