Guidelines On Land Acquisition

Republic of the Philippines
Bangsamoro Autonomous Region in Muslim Mindanao

MINISTRY OF HUMAN SETTLEMENTS AND DEVELOPMENT
‘The Housing Arm of the BARMM’
Building Homes Developing Communities
MEMORANDUM CIRCULAR NO. ______, s. 2023
TO : THE HOUSING AND HUMAN SETTLEMENT DIVISION (HHSD) OF

THIS MINISTRY AND TO ALL OTHERS CONCERNED
SUBJEC : GUIDELINES ON LAND ACQUISITION

T
DATE : May 25, 2023 / 3 Dhu al-Qidah, 1444 AH

rd
_______________________________________________________________
1.0 LEGAL BASIS
1.1 The Bangsamoro Government shall address the lack of shelters, settlements,
and livelihood for the disadvantaged and homeless, especially those victims
of conflicts and atrocities, and Internally Displaced Persons (IDP), pursuant to
Section 9, Article IX of the Bangsamoro Organic Law.
1.2 The Ministry of Human Settlements and Development shall have the power to
identify and acquire government lands and private lands through donation,
expropriation, and payment of just compensation or any other form of
alienation for housing and rural development in coordination with the Ministry
of Interior and Local Government (MILG), constituent local government units,
Land Registration Authority (LRA), and other relevant agencies. (Sec.3, Title
VI, Bangsamoro Administrative Code).
1.3 RA 10752 dated March 07, 2016, entitled “An Act to Facilitating the
Acquisition of Right-of-Way, Site or Location for National Government
Infrastructure Projects,” or “Right-of-Way Act,” which took effect on April 03,
2016 (Appendix 1).
1.4 IRR of RA 10752 dated May 25, 2016, which took effect on August 07, 2016
(Appendix 2).
2.0 SCOPE
This Memorandum Circular shall serve as the guidelines for the acquisition of land
through negotiated sale for the Ministry’s housing development projects, human
settlement programs, and urban and rural development.
3.0 DEFINITION OF TERMS
The following terms, words, and phrases used herein shall mean or be understood
as follows:

a. Land acquisition – refers to coming into possession of a parcel of land through
sale, expropriation, exchange, or other mode provided by law.

b. Land Feasibility Study - refers to the detailed analysis that considers all of the
critical aspects of the proposed land and whether it meets the requirements to
construct development projects of the Ministry.

c. Relocation Survey – refers to the precise identification of established land and

its corners. The main purpose of this survey is to re-establish the boundaries of a
tract for which a survey has previously been made and to verify if the existing
location of the property coincides with the technical description on the Land Title
and if the property overlaps with adjoining lots.
d. Original Survey - refers to a survey of existing property lines made when the
surveyor has not found a map and other documents of the property such as
approved plans and lot status which represents a previous professional work of
the surveyor.
e. Resurvey - refers to a survey of property lines made when the surveyor has
found a prior survey of the property. After evaluation of the prior survey, within
the context of field and record information, where errors are found and verified.
A resurvey will be done.
f. Boundary Survey - referred to as a “Title Verification Survey” which focuses on

comparing the information provided in the land title with the actual physical
boundaries and features on the ground. Its purpose is to ensure that the land
described in the title corresponds to its real-world location and characteristics.
g. Deed of Conditional Sale - an arrangement in which the seller retains title

until the buyer meets a predetermined condition.
4.0 GENERAL GUIDELINES
4.1 The MHSD shall be primarily responsible for the identification and acquisition
of land for its infrastructure projects.
4.2 The Housing and Human Settlements Division (HHSD) of this Ministry shall be
primarily responsible for the validation, processing, titling, and recording of
land acquisition and may coordinate with other divisions of the Ministry.
4.3 The MHSD shall create a Technical Working Group (TWG) that is composed
of the Housing and Human Settlements Division (HHSD) as head, and its
members, the Legal Section, Finance Section, Planning and Design Division
(PDD), Environment, Land Use and Urban Development Division (ELUUDD),
and MHSD Provincial Office which has jurisdition. It is tasked to review and
consolidate the validated and verified documents, site validation and technical
assessment reports, and feasibility study whether it has passed and to be
recommended to the Minister for the to proceed with the acquisition of land.
5.0 PROJECT COST AND FUNDING

The HHSD shall undertake in advance the programming and budgeting of funds for
the acquisition of lands. It shall be included in the ministry’s respective proposals for
annual budgetary outlays. The estimated cost of a project shall have the following
distinct components:
a. Pre-investment cost which shall include the cost of undertaking the preparatory
activities and feasibility studies.
b. Investment cost which shall include the land surveys, processing and
payment of the land, and titling.
6.0 PREPARATORY ACTIVITIES FOR LAND ACQUISITION
As the initial process before acquiring land, the HHSD shall conduct the following
preparatory activities:
6.1 IDENTIFICATION OF LANDS
a. Any landowner who signifies to sell their land shall send an offer letter to
the ministry and to be received by the responsible division, HHSD.
b. The ministry may search available lands in the region through exploration
of areas, benchmarking from other agencies and institutions, offering bids
to bank institutions, and other modes.
6.2 VALIDATION AND VERIFICATION OF LEGAL DOCUMENTS
The HHSD shall conduct initial validation and verification of identified lands to
ensure that legal documents of the property are genuine, up-to-date, and
compliant with the relevant laws and regulations. The following list of legal
documents to be verified is as follows:

a. Land Title from the Registry of Deeds (ROD) or Land Registration
Authority (LRA);
b. Certified true copy of Tax Declaration from the Provincial/City/Municipal

Assessor’s Office;
c. Real Property Tax and Tax Clearance from the BIR; and
d. Other necessary documents for land acquisition.

6.3 SITE VALIDATION AND TECHNICAL ASSESSMENT
The HHSD, hired Geodetic Engineer or land surveyor, and MHSD Provincial
Office which has jurisdiction and other concerned divisions shall conduct a
site validation and technical assessment for the proposed land. The following
is the checklist to be assessed:

a. Site location, topography, and boundaries;
b. Geological features such as soil type and condition, water table, etc.;
c. Drainage and sewerage pattern;
d. Accessibility, proximity, and connectivity to other infrastructure and

development projects;
e. Land use and zoning;
f. Biohazard and land contamination;
g. Hazard mapping; and
h. Safety and Security

The ministry may conduct a courtesy visit to the local government which has
jurisdiction to ensure a smooth process of the site validation and to avoid
conflicts.
6.4 BOUNDARY SURVEY
The Ministry, in the presence of approved land survey or land title if

applicable, shall verify the technical description and legal information
stipulated in the land title by conducting a boundary survey to compare the
information stated in the land title with the physical boundaries on the
ground to ensure accuracy and alignment. This is to confirm that the land
described in the title matches its real-world location and characteristics so
that the Ministry has confidence in the accuracy and validity of the land title
and its associated boundaries.
7.0 FEASIBILITY STUDY
A Land Feasibility Study (LFS) shall be conducted by the HHSD in coordination with
the other divisions of the ministry. The Ministry may hire Independent Property
Appraiser (IPA), Geodetic Engineers/surveyor or land expert, Accredited Valuation
Experts, Real Estate Consultants and Agents and other Government Financial
Institution as part of the formulation of the feasibility study subject to RA 1075
subject to existing Laws and regulations.
The following are the feasibility checklist to be done:
a. Housing Needs Assessment

b. Technical and Suitability Assessment
c. Environmental Impact Assessment
d. Socio Development Impact Assessment
e. Economic Impact Assessment
f. Zonal Valuation and Land Appraisal Assessment
g. Estimation of Replacement Cost of Structure/Improvements, if applicable
h. Estimation of Value of Crops/Trees, if applicable
i. ROW Assessment, if applicable
j. Legal Documents Review and Verification
k. Land Use zoning and Regulation
l. Geotechnical and Geological Studies
m. Land Survey Data Result
n. Conform to the Provincial Development & Physical Framework Plan (PDPFP)
Site validations may be conducted by the Ministry together with the landowner or
his/her authorized representative, IPA/Accredited Valuation Expert/Real Estate
Consultant or Agent, Geodetic Engineer, and Government Financial Institution (GFI)
to attain informative and realistic outputs of the study.
After the completion of the study, it shall be forwarded to the TWG for evaluation
and to recommend to the minister whether the offered land is feasible to proceed in
the investment process.
8.0 LAND SURVEYS: RELOCATION SURVEY, ORIGINAL SURVEY, AND RESURVEY
The Housing and Human Settlement Division (HHSD) shall facilitate the conduct of
any of the land survey types and will assist the Geodetic Engineer or Land surveyor.
The PDD may assist the process in support for the formulation of their program of
works for the Ministry’s infrastructure projects. The result of Land surveys must
determine the location of lot, its topography, and boundaries.
A relocation survey, original survey, or resurvey, whichever is applicable, must be

conducted as part of the land acquisition process. The purpose of these surveys is to
ensure accurate and precise identification, verification, and demarcation of the

boundaries of land and any improvements on the subject property.
The selection of the appropriate survey type depends on the specific circumstances
of the land acquisition and the condition of the property. By conducting these
surveys, it ensures that the land acquisition process is based on reliable and up-to-
date information and verified data.
8.1 RELOCATION SURVEY
Necessary to confirm the boundaries and assess any changes or

discrepancies that may have occurred over time. This survey ensures that the
property boundaries are properly established and aligned with the previous
survey result.
Also, this survey gives knowledge of the exact boundaries of the land that
helps to know if encroachment took place to avoid disputes and conflicts of
land. Using state of the art technology and equipment guaranteed the
precision of land measurements.
8.2 ORIGINAL SURVEY
For properties without a previous survey, an original survey is conducted to

establish the initial boundary lines and provide a baseline for future land
transactions and developments.
8.3 RESURVEY
In a situation where a previous survey needs to be updated or corrected, a

resurvey is carried out. It aims to rectify any inaccuracies or ambiguities in
the existing survey.
9.0 PROCESSING AND PAYMENT OF THE LAND

In the determination of the purchase price to be paid, The Ministry will take into
consideration the current and fair market value declared by the owner or
administrator of the land, as such current market value determined and assessed by
either the IPA or Real Estate Broker, or Real Estate Consultant or Agent. The
ministry may procure GFI or IPA to determine the current fair market value of the
property.
9.1 ASSESSMENT OF TAXES DUE
The ministry shall request computations of the following to the BIR. The
Bureau of Internal Revenue and the respective Provincial/City/Municipal
Treasurer shall assess the following taxes, where applicable, on the property
being acquired:
a. Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) due on the
grains derived from the sale of the real property to the Ministry;
b. Estate tax due on the portion of the estate of a deceased owner to be

acquired by the government Ministry.
c. Unpaid real estate taxes on the property up to the time the government
took possession thereof.
d. Transfer Tax payment to the City/Provincial Assessor’s office
The ministry may execute a memorandum of understanding with the BIR to

initially assess and give computation to lands offered to the ministry.
9.2 WITHHOLDING TAXES AND TAX CLEARANCES
Upon receipt of the assessment of the aforementioned taxes, the Ministry

shall issue a certification that upon payment to the landowner; it shall deduct
the corresponding CGT, DST, and any unpaid Estate Tax and Real Estate Tax
from the Purchase Price unless, the landowner opts to settle the
aforementioned taxes or part of it.
On the basis of such certification, the BIR and the Respective

Provincial/City/Municipal Treasurers shall issue the tax clearances for the
registration of the property in favor of the Ministry.
All taxes deducted shall be immediately remitted by the Ministry to the BIR or
to the Provincial/City/Municipal Treasurer, as the case may be.
Once the aforementioned taxes have been settled to BIR upon payment
through Revenue District Office or any Authorized Agent Bank (AAB), the
Ministry will request the Certificate Authorizing Registration from BIR.
9.3 OTHER EXPENSES AND FEES
Other expenses and Fees such as documentary stamp, notarial fees and
other expenses connected to the execution of the Deed of Conditional Sale
shall be for the account of the landowner.
The Transfer Tax at the Local Assessor’s Office or City Treasurer, whichever
is applicable, Registration Fee and IT Fee at the Registry of Deeds (ROD) or
Land Registration Authority (LRA), and any other incidentals and additional
expenses during the registration process and the processing of the issuance
of the transfer of title of the subject property and other documents shall be
for the account of the Ministry.
In case where the property acquired is untitled, the MHSD shall require the
landowner to post an indemnity or property bond through Insurance
Corporation, the amount of which shall be fixed by the
Provincial/City/Municipal Treasurer concerned on the basis of the agreed
purchase price market value as determined by the assessor and as appearing
on the current tax declaration of the property. This requirement shall be
dispensed with where the claim for payment does not exceed P50,000.
9.4 APPROVED LAND SURVEY
Prior to the execution of the Deed of Conditional Sale, the Ministry must
receive the approved land survey by the Ministry of Environment, Natural
Resources, and Energy (MENRE) conducted and submitted by Geodetic
Engineer. The approved land survey established the boundaries and legal and
technical description of the subject property which must be reflected and
adopted to the provision of Deed of Conditional Sale.
9.5 EXECUTION OF DEED OF CONDITIONAL SALE
The Ministry and the landowner agree to execute a Deed of Conditional Sale
to formalize the transfer of ownership of the subject property. The Deed of
Conditional Sale shall be prepared by the Legal and Legislative Liaison
Section of the Office of the Minister and shall contain all necessary provisions
to legally convey the subject property from the landowner to the Ministry.
9.6 PAYMENT OF THE REMAINING PURCHASE PRICE

After deduction of taxes, and other expenses and fees mentioned in Sections
9.2 and 9.3, the Ministry shall pay the remaining purchase price to landowner
in the following condition:
a. A payment of 50% of the remaining purchase price upon the execution of

the Deed of Conditional Sale.
b. The other 50% of the remaining purchase price shall be paid once the
title of the property has been transferred in the name of the Ministry or
the Bangsamoro Government.
10.0 DOCUMENTARY REQUIREMENTS
10.1 REQUIREMENTS FOR TITLED LANDS
a. Letter of Intent to Sell (offer to sell)
b. TIN number of Seller/Authorized Representative

c. Photocopy of Title (OCT or TCT)
d. CCV of the Title (ROD) 2 original documents
e. City/Municipal Assessor’s Office
 Certificate of No Existing Improvement

 Certified true copy of Tax Declaration (signed by the Assessor’s Office)
1 original document
 Tax Clearance
 Updated Payment of Real Property Tax
f. Zonal Value of the said property issued by the BIR
g. Barangay Clearance certifying no claimant and political boundaries
h. Approved Land Survey and its Technical Description
i. Photocopy of Seller’s ID / Authorized Representative
j. Special Power of Attorney if applicable
k. ONETT computation of Capital Gains Tax (CGT) and Documentary Stamp

Tax (DST)
l. Additional Requirements for Estate Titled Lands
 TIN of Estate
 TIN of Heirs
 Death Certificate
 Total land holdings issued by the City/Municipal Assessors
 Extra-Judicial Settlement/ Self-Adjudication
 Special Power of Attorney
 ONETT computation of Estate Tax
10.2 REQUIREMENTS FOR UNTITLED LANDS
a. Letter of Intent to Sell (offer to sell)

b. TIN number of Seller/Authorized Representative
c. Photocopy of Title (OCT or TCT)
d. CCV of the Title (ROD) 2 original documents
e. City/Municipal Assessor’s Office
 Certificate of No Existing Improvement

 Certified true copy of Tax Declaration (signed by the Assessor’s
Office) 1 original document
 Tax Clearance
 Updated Payment of Real Property Tax
f. Zonal Value of the said property issued by the BIR
g. Barangay Clearance certifying no claimant and political boundaries
h. Approved Land Survey and its Technical Description
i. Photocopy of Seller’s ID / Authorized Representative

j. Special Power of Attorney if applicable
k. ONETT computation of Capital Gains Tax (CGT) and Documentary Stamp

Tax (DST)
l. Notarized Affidavit of Ownership
m. Notarized Joint Affidavit of Two Adjoining Landowners or Barangay/Local

Officials concerned attesting to the ownership of land
n. Additional Requirements for Estate Titled Lands
 TIN of Estate
 TIN of Heirs
 Death Certificate
 Total land holdings issued by the City/Municipal Assessors
 Extra-Judicial Settlement/ Self-Adjudication
 Special Power of Attorney
 ONETT computation of Estate Tax
10. 0 SEPARABILITY CLAUSE

If for any reason, any portion or provision of this Memorandum Circular is declared
inconsistent or invalid, other portions or provisions hereof, which are not affected
thereby, shall remain in full force and effect.

11.0 EFFECTIVITY

For widest dissemination and strict compliance. This Memorandum Circular is
approved this _____ of _____________ at _Cotabato City.

ATTY. HAMID AMINODDIN D. BARRA
Minister
_______________

Guidelines On Land Acquisition

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Republic of the Philippines

Bangsamoro Autonomous Region in Muslim Mindanao

MEMORANDUM CIRCULAR NO. ______, s. 2023

TO : THE HOUSING AND HUMAN SETTLEMENT DIVISION (HHSD) OF

SUBJEC : GUIDELINES ON LAND ACQUISITION

DATE : May 25, 2023 / 3 Dhu al-Qidah, 1444 AH

1.0 LEGAL BASIS

3.0 DEFINITION OF TERMS

c. Relocation Survey – refers to the precise identification of established land and

f. Boundary Survey - referred to as a “Title Verification Survey” which focuses on

g. Deed of Conditional Sale - an arrangement in which the seller retains title

4.0 GENERAL GUIDELINES

5.0 PROJECT COST AND FUNDING

6.0 PREPARATORY ACTIVITIES FOR LAND ACQUISITION

6.1 IDENTIFICATION OF LANDS

6.2 VALIDATION AND VERIFICATION OF LEGAL DOCUMENTS

b. Certified true copy of Tax Declaration from the Provincial/City/Municipal

d. Other necessary documents for land acquisition.

6.3 SITE VALIDATION AND TECHNICAL ASSESSMENT

c. Drainage and sewerage pattern;

d. Accessibility, proximity, and connectivity to other infrastructure and

e. Land use and zoning;

f. Biohazard and land contamination;

g. Hazard mapping; and

h. Safety and Security

6.4 BOUNDARY SURVEY

The Ministry, in the presence of approved land survey or land title if

7.0 FEASIBILITY STUDY

The following are the feasibility checklist to be done:

a. Housing Needs Assessment

8.0 LAND SURVEYS: RELOCATION SURVEY, ORIGINAL SURVEY, AND RESURVEY

A relocation survey, original survey, or resurvey, whichever is applicable, must be

ensure accurate and precise identification, verification, and demarcation of the

8.1 RELOCATION SURVEY

Necessary to confirm the boundaries and assess any changes or

8.2 ORIGINAL SURVEY

For properties without a previous survey, an original survey is conducted to

8.3 RESURVEY

In a situation where a previous survey needs to be updated or corrected, a

9.0 PROCESSING AND PAYMENT OF THE LAND

9.1 ASSESSMENT OF TAXES DUE

b. Estate tax due on the portion of the estate of a deceased owner to be

d. Transfer Tax payment to the City/Provincial Assessor’s office

The ministry may execute a memorandum of understanding with the BIR to

9.2 WITHHOLDING TAXES AND TAX CLEARANCES

Upon receipt of the assessment of the aforementioned taxes, the Ministry

On the basis of such certification, the BIR and the Respective

9.3 OTHER EXPENSES AND FEES

9.4 APPROVED LAND SURVEY

9.5 EXECUTION OF DEED OF CONDITIONAL SALE

9.6 PAYMENT OF THE REMAINING PURCHASE PRICE

a. A payment of 50% of the remaining purchase price upon the execution of

10.0 DOCUMENTARY REQUIREMENTS

10.1 REQUIREMENTS FOR TITLED LANDS

a. Letter of Intent to Sell (offer to sell)

b. TIN number of Seller/Authorized Representative

d. CCV of the Title (ROD) 2 original documents

e. City/Municipal Assessor’s Office

 Certificate of No Existing Improvement

f. Zonal Value of the said property issued by the BIR

g. Barangay Clearance certifying no claimant and political boundaries

h. Approved Land Survey and its Technical Description

i. Photocopy of Seller’s ID / Authorized Representative