F U N D A M E N TA L

LEASEHOLD TENANCY I - LEGAL BASIS: 1. Republic Act N ! "#$$A%&icultu&'l L'() Re* &+ C )e (August 8, 1963) 2. Republic Act N ! ,"#-- C )e * A%&'&i'( Re* &+ (September 10, 1971) 3. P&e.i)e(ti'l Dec&ee N ! /$01A+e()i(% P&e.i)e(ti'l Dec&ee N ! /2$2 by Strengthening the Prohibition against Agri u!tura! Share, "enan y an# Pro$i#ing Pena!ties %or &io!ation thereo%. ('une 10, 1978) $! Secti ( /03 Republic Act N ! ,,14C +p&e5e(.i6e A%&'&i'( Re* &+ L'7 * /-##!

DISTINCTIONS

TENANT EMANCIPATION DECREE

COMPREHENSIVE AGRARIAN REFORM PROGRAM Presi#entia! Pro !amation ,o. 131. 1. P&e.i)e(ti'l Dec&ee N ! 04 8 +nstituting a 0omprehensi$e Agrarian Te('(t9. E+'(cip'ti ( (e ree 4e%orm Program ('u!y 22, 1987) () tober 21, 1972) 2. 4epub!i A t ,o. 6637 8 An A t 2. *etter +nstru tion ,o. -7-. PLACING instituting a 0omprehensi$e Agrarian UNDER OLT TENANTED 4e%orm Program to Promote So ia! RICE:CORN LANDS SEVEN 'usti e an# +n#ustria!i1ation, pro$i#ing HECTARES OR LESS IN AREA the 9e hanism %or its +mp!ementation UNDER CERTAIN CONDITION an# other purposes. ('une 13, 1988) ;OCTOBER 0/3 /-4,< 1. "he po/er o% 1. Presi#entia! (e ree ,o. 27 /as Presi#ent A:uino to promu!gate Pro . assume# to be c (.tituti ('l '() ,o. 131 an# 7.). ,os. 228 an# 229 up5el) '. p'&t '() p'&cel * t5e l'7 /as authori1e# un#er Se tion 6 o% the * t5e l'() in (e 0ha$e1 $s. 2obe!, "ransitory Pro$ision o% the 1987 133 S04A 265 6on1a!es $s. 7stre!!a, 0onstitution. 91 S04A 29- (1979) an# Asso iation A!! assau!t on the $a!i#ity o% 4A o% Sma!! *an#o/ners in the Phi!ippines 6637 /as set asi#e. (Asso iation o%

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II 8 =URISPRUDENCE CONSTITUTIONALITY

ON

/! Secu&it> * Te(u&e- Primero $s. 0+4, 10 Phi!. 673 (1937)5 Pine#a $s. #e 6u1man, 21 S04A 1-30 (1967). III 8 COVERAGE OR SCOPE A%&icultu&'l Le'.e5 l) sha!! app!y to a!! tenante# agri u!tura! !an#s, in !u#ing but not !imite# to the %o!!o/ing 8 A! Ret'i(e) '&e'. un#er 4.A. 6637 an# P.(. 275 B! Te('(te) A%&icultu&'l L'(). not yet a :uire# %or #istribution un#er 0A4P pursuant to 4A 66375 C! All te('(te) '&e'. un#er Se tion 10 o% 4A 6637 /hi h may be o$ere# by this )r#er. (A#ministrati$e )r#er ,o. -, Series o% 1989)

+n . $s. Se retary o% Agrarian 4e%orm, Sma!! *an#o/ners in the Phi!ippines 173 S04A 3-2 (1989) +n . $s. Se retary o% Agrarian 4e%orm, 2. *etter o% +nstru tion ,o. -7173 S04A 3-2 (1989) 0onstitutiona!ity /as uphe!# in 2urbano $s. 7stre!!a, 137 S04A 333 COVERAGE OF CARL /-## (1989) S ope 8 A!! PUBLIC an# PRIVATE Agri u!tura! *an#s regar#!ess o% te(u&i'l "he RE?UISITES FOR COVERAGE '&&'(%e+e(t an# c ++ )it> p& )uce)3 un#er )P74A"+), *A,( i(clu)i(% l'(). * t5e public ) +'i( "4A,S?74 ()*") program are the suitab!e %or agri u!ture. (1st par. Se . -, %o!!o/ing@ 4A 6637) 1. "he !an# must be DEVOTED to RICE or CORN rops5 an# 2. "here must be a system o% SHARE CROP or LEASE TENANCY obtaining therein. +% eit5e& o% these re:uisites is ABSENT, the !an# is ,)" 0)&747( un#er )*". Aen e, a !an#o/ner NEED NOT APPLY FOR RETENTION, /here his o/nership o$er the entire !an#ho!#ing is INTACT an# UNDISTURBED. (7u !osia (ae1 Spe i%i !an#s o$ere# by 0A4P. a. A!! 'lie('ble an# #isposab!e !an#s o% the public ) +'i( #e$ote# to or suitab!e %or agri u!ture b. A!! !an#s o% the public ) +'i( i( e@ce.. * t5e .peci*ic li+it. '. )ete&+i(e) b> C (%&e.. i( t5e p&ece)i(% p'&'%&'p55 . A!! other !an#s o/ne# by the 6o$ernment #e$ote# to or suitab!e %or agri u!ture5 an# #. A!! p&i6'te l'(). #e$ote# to or suitab!e %or agri u!ture &e%'&)le..

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IV - AREA OF COVERAGE +t sha!! be un!a/%u! %or the tenant, /hene$er the area o% his ho!#ing i. *i6e 5ect'&e. & + &e3 & i. * .u**icie(t .iAe t +'Be 5i+ '() t5e +e+be&. * 5i. i++e)i'te *'&+ 5 u.e5 l) *ull> ccupie) i( it. culti6'ti (3 t CONTRACT TO CORD 't t5e .'+e ti+e ( TCO OR MORE SEPARATE HOLDINGS be!onging to )i**e&e(t l'()5 l)e&. un#er any system o% tenan y CITHOUT THE DNOCLEDGE AND CONSENT o% the !an#ho!#er /ith /hom he %irst entere# into tenan y re!ationship. (Par. 1, Se . 2-, repub!i A t ,o. 1199) V 8 EEEMPTION OR EECLUSION FROM COVERAGE Ab.e(ce o% any o% the siB (6) 7ssentia! 7!ements o% "enan y 4e!ationship.

an#Cor Aer Aeirs represente# by 7#riano (. (ae1 $s. the Aon. 0A, et a!., 323 S04A 837). RULES ON COVERAGE OF LANDS UNDER PD 04! Rule / L'()e) e.t'te. or !an#ho!#ings l'&%e& t5'( 0$ 5ect'&e ;LOI $, ;Dece+be& 43 /-40< . o$ere# by OLT an# there is no retention to the !an#o/ner. Rule 0 *an#ho!#ing o% 0$ 5ect'&e. & le.. ;but 'b 6e 4 5ect'&e. ;LOI $, ;ibi)< '() LOI 004 ;N 6e+be& /,3 /-4$< c 6e&e) b> OLT but !an#o/ner is entit!e# to retention eB ept i% LOI $4$ () tober 21, 1976) 'pplie.. 4u!e 3 *an#ho!#ing o% se$en (7) he tares or !ess is EEEMPTED %rom )*" eB ept i% *)+ -7- is app!i ab!e un#er the %o!!o/ing ir umstan es@ *an#o/ner o/ns t5e& '%&icultu&'l !an# o% + &e t5'( .e6e( 5ect'&e. in

* t5e '%&icultu&'l p& )uct. &'i.e) & t5't c'( be &'i.e) t5e&e (. PRIORITIES 8 "he (A4, in oor#ination /ith the PA40 sha!! p!an an# p& %&'+ the 'cFui.iti ( an# )i.t&ibuti ( o% a!! agri u!tura! !an#s through a perio# o% ten (10) years %rom the e%%e ti$e!y o% this A t. *an# sha!! be 'cFui&e) an# )i.t&ibute) as %o!!o/s@ P5'.e O(e: 1.Rice an# c &( !an# un#er P( 275 2. I)le an# 'b'() (e) !an#s 3. P&i6'te !an#s 6 lu(t'&il> **e&e) by the o/ners %or agrarian re%orm5 -. F &ecl .e) !an# by % 6e&(+e(t %inan ia! institutions5 3. *an# a :uire# by the P&e.i)e(ti'l 0ommission on 6oo# G 6e&(+e(t5 an# 6. A!! other !an#s o/ne# by the

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E..e(ti'l Ele+e(t. Rel'ti (.5ip:

* Te('(c>

1. "he parties are the l'()5 l)e& an# the te('(t5 2. "he subDe t is '%&icultu&'l l'()5 3. "here is c (.e(t5 -. "he purpose is '%&icultu&'l p& )ucti (G 3. "here is pe&. ('l culti6'ti (G 6. "here is .5'&i(% * 5'&6e.t & p'>+e(t * &e(t'l.. (0aba!!es $s. (A4, 168 S04A 2-75 <ua $s. 0ourt o% Appea!s, 198 S04A 2-7.) VI - RETENTION +n *easeho!# "enan y, the *an#o/ner or agri u!tura! !essor RETAIN OCNERSHIP o% the subDe t !an#ho!#ing. "he !an#o/ner EEERCISES the ATTRIBUTED OF OCNERSHIP. ;n#er A&t! $0# o% the Ne7 Ci6il C )e. "he OCNER

aggregate area, or he o/ns COMMERCIAL3 INDUSTRIAL3 RESIDENTIAL & URBAN LAND /here he #eri$e an a#e:uate in ome, (A4 9emo, 0ir u!ar ,o. 11, s. 1978 (Apri! 21, 1978) A)eFu'te i(c +e is at !east ?+&7 "A);SA,( (P3000.00) P7S)S per annum. (6ross +n ome). *an#s not o$ere# (e ree ,o. 27. by Presi#entia!

6o$ernment )e6 te) t & .uit'ble * & '%&icultu&e "hese sha!! be 'cFui&e) an# )i.t&ibute) imme#iate!y upon e%%e ti$ity o% the A t, /ith the imp!ementation to be c +plete) /ithin a perio# o% not more than %our (-) years (Se . 7, par. 2, 4A 6637) P5'.e T7 : 1. A!! Di.p .'ble an# a!ienab!e pub!i agri u!tura! !an#s5 2. A!! A&'ble public agri u!tura! !an#s un#er agro.%orest, pasture an# agri u!tura! !eases a!rea#y u!ti$ate# an# p!ante# %or rops in a or#an e /ith Se . 6, Art. G+++ o% the 0onstitution5 3. A!! public '%&icultu&'l !an#s /hi h are opene# %or ne/ #e$e!opment an# resett!ement5 an# -. A!! p&i6'te '%&icultu&'l !an#s in eB ess o% %i%ty (30) he tares

1. Pri$ate agri u!tura! !an#s /hi h are NOT PRIMARILY DEVOTED TO RICE OR CORN, or 2. "here is NO SYSTEM OF SHARE CROP OR LEASE TENANCY obtaining in the !an#ho!#ing. ((ae1, $s. 0A, +E+(). F"he RE?UISITES %or the eBer ise by the !an#o/ner o% his RIGHT OF RETENTION are the %o!!o/ing@ 1. "he !an# must be (7&)"7( ") 4+07

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has the RIGHT TO DISPOSE OF a thing 7it5 ut t5e& li+it'ti ( than those impose# by !a/. As an i(ci)e(t * 7(e&.5ip, "here%ore, there is nothing to pre$ent a !an#o/ner %rom (),A"+,6 his ,A>7( "+"*7 ") "A7 *A,(. Ao/e$er, the ne/ o/ner MUST RESPECT THE RIGHT OF THE TENANT!

)4 0)4, 04)PS5 2. "here must be a system o% .5'&ec& p & le'.e te('(c> obtaining there. 3. "he si1e o% the !an#ho!#ing 9;S" ,)" 7G077( "=7,"H ?);4 (2-) he tares pro$i#e# that at !east se$en (7) he tares thereo% are o$ere# !an#s an# more than se$en (7) he tares o% it onsist o% Iother agri u!tura! !an#s.J (ae1 $s. 0A, +bi#)

"hese sha!! be #istribute# imme#iate!y upon the e%%e ti$ity o% the A t, /ith the imp!ementation to be omp!ete# /ithin a perio# o% not more than %our (-) years. P5'.e T5&ee: A!! pri$ate A64+0;*";4A* *A,(S ommen ing /ith LARGE !an#ho!#ings an# pro ee#ing to MEDIUM an# SMALL !an#ho!#ing un#er the %o!!o/ing s he#u!es@ a) *an#ho!#ings ABOVE 2he tares up to 30 he tares to begin on the %orth year %rom e%%e ti$ity o% this a t an# to be omp!ete# /ithin three years5 an#, b) *an#ho!#ings %rom the RETENTION LIMIT up to 2he tares, to begin on the siBth year %rom e%%e ti$ity o% this A t an# to be omp!ete# /ithin %our year.

"he agri u!tura! !easeho!# re!ation un#er this 0o#e sha!! not be eBtinguishe# by MERE EEPIRATION OF THE TERM OR PERIOD in a !easeho!# ontra t nor by the SA*7, A*+7,A"+), )4 "4A,S?74 o% the !ega! possession o% the !an#ho!#ing. +n ase the agri u!tura! !essor Ri%5t * Rete(ti ( b> L'() 7(e&. u()e& S7**S, A*+7,A"7S, )4 "4A,S?74 the P&e.i)e(ti'l Dec&ee N ! 04. Supp!ementa! !ega! possession o% the !an#ho!#ing, the 6ui#e!ine A.). ,o. 0-, Series o% 1991). P;40AAS74 )4 "4A,S?7477 thereo% sha!! be .ub& %'te) t t5e &i%5t '() "he po!i y statements are as %o!!o/s@ .ub.titute) t t5e bli%'ti (. o% the a. *an#o/ners o$ere# by P( 27 are agri u!tura! !essor (see. 10, 4A 38--) entit!e# to retain SEVEN 5ect'&e., eB ept those /hose entire tenante# VII - BENEFICIARIES ri e an# orn !an#s are subDe t to a :uisition an# #istribution un#er "he bene%i iaries un#er 4epub!i A t )*".

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,o. 1199, 4epub!i A t ,o. 38-- as amen#e# by 4epub!i A t ,o. 6389 are SHARE-TENANT OR AGRICULTURAL LESSEES ;TENANTS<! "hus@ I+n the +,"74P47"A"+), A,( 7,?)40797," o% this A t an# other !a/s as /e!! as o% the stipu!ation bet/een the !an#ho!#er an# the tenant the 0);4"S A,( A(9+,+S"4A"+&7 )??+0+A*S SAA** 47S)*&7 A** 64A&7 ();E"S +, ?A&)4 )? "A7 "7,A,". (Se . 36, 4epub!i a t ,o. 1199) VIII - ACARD CEILING

"he share.tenantCagri u!tura! !essee /ho is a!rea#y u!ti$ating a !an#ho!#ing /ith an area o% FIVE ;1< HECTARES & + &e or o% .u**icie(t .iAe to maKe him an# member o% his imme#iate %arm househo!# %u!!y ccupie) in its u!ti$ation is prohibite# to CONTRACT TO CORD 't t5e .'+e ti+e t7 & + &e .ep'&'te) 5 l)i(% bel (%i(% t )i**e&e(t

AN OCNER MAY NOT RETAIN LANDS NOT COVERED BY CARP UNDER THE FOLLOCING CASES: 1. "hose /hi h are not suitab!e %or a) +% he as o% ) tober 21, 1972 o/ne# agri u!ture or those /hi h are more than 2- he tares o% tenante# !assi%ie# as minera!, %orest ri e or orn !an#s5 or resi#entia!, ommer ia! or in#ustria! b) Ey $irtue o% *)+ -7-, i% he as o% 21 !an#s. (Se . 3. M, 4A 6637)5 ) tober 1972 o/ns le.. t5'( 0$ 5ect'&e. * te('(te) ri e but 2. "hose /hi h ha$e been !assi%ie# an# a##itiona!!y o/ne# the %o!!o/s L appro$e# as NON-AGRICLTURAL prior to 'une 13, 1988. (()' Ot5e& '%&icultu&'l l'() * )pinion ,o. --, S. 1990) + &e t5'( .e6e( 5ect'&e., /hether tenante# or not, 3. "hose /hi h are EEEMPT pursuant /hether u!ti$ate# or not, an# to Se . 10, 4A 6637. regar#!ess o% the in ome #eri$e# there%rom5 or -. "hose /hi h are )e6 te) to p ult&>, *an# use %or c ++e&ci'l3 .7i(e or li6e.t cB-&'i.i(% as o% i()u.t&i'l3 &e.i)e(ti'l or 'une 13, 1988 pursuant to the other urban purposes, %rom Supreme 0ourt ru!ing on *u1. ?arms /hi h he #eri$es ')eFu'te $s. "he Aon. Se retary o% Agrarian i(c +e to support himse!% 4e%orm (192 S04A 31)5 an# his %ami!y b. *an#o/ners /ho %i!e# their 3. Fi.5p (). an# pra/n %arms app!i ation %or retention BEFORE

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l'()5 l)e& CITHOUT THE DNOCLEDGE AND CONSENT OF THE LANDOCNER:AGRICULTURAL LESSOR (Par. +, Se . 2-, 4epub!i A t. ,o. 1199) IE - PAYMENT FOR THE COST OF THE LAND! +n the eBer ise o% RIGHT OF PREEMPTION by the agri u!tura! !essee. tenant, he must EITHER TENDER PAYMENT OF3 OR PRESENT A CERTIFICATE FROM THE LBP that it sha!! maKe payment un#er Se tion 80 o% 4epub!i A t ,o. 38-- (10N 0ASA an# 90N in siB per ent, taB %ree, re#eemab!e bon#s issue# by the *EP.) +% the !an#o/ner re%uses to a ept TENDER or PRESENTMENT, the agri u!tura! !essee may CONSIGN it in COURT, (Se . 11, 4epub!i A t ,o. 38-- as amen#e# by 4epub!i A t ,o. 6389. "he REDEMPTION PRICE .5'll be3 t5e REASONABLE PRICE OF THE

27 August 1983, the #ea#!ine set eBempte# pursuant to 4.A. ,o. by A#ministrati$e )r#er ,o. 1, 7881, an# its imp!ementing Series o% 1983, +'> &et'i( ( t A#ministrati$e )r#er ,o. 3, Series o% + &e t5'( .e6e( 5ect'&e. o% their 19935 !an#ho!#ing o$ere# by P( 27 regar#!ess o% /hether or not they 6. "hose /hi h are &et'i(e) by the omp!ie# /ith *)+ ,os. -1, -3, an# l'() 7(e&.5 32. *an#o/ners /ho %i!e# their app!i ation AFTER 27 August 1983 7. "hose !an#s or portions thereo% un#er but omp!ie# /ith the re:uirement the o$erage o% EO $24 but %oun# to o% *)+ ,o. -1, -3 an# 32 sha!! be ( l (%e& .uit'ble %or agri u!ture !iKe/ise be e(title) to su h a an# there%ore, ou!# not be gi$en .e6e( 5ect'&e. &ete(ti ( '&e'. appropriate $a!uation by the *EP as Ao/e$er !an#o/ner /ho %i!e# #etermine# by (A4C*EP5 an# their app!i ation %or retention AFTER the 27 August 1983 8. "hose !an#s #e !are# by P&e.i)e(ti'l #ea#!ine an# DID NOT COMPLY P& cl'+'ti (. %or ertain uses other /ith the re:uirements o% *)+ ,os. than agri u!tura!. -1, -3, an# 32 sha!! on!y be entit!e# to a maBimum o% *i6e ;1< 4u!es an# Pro e#ures 6o$erning the 5ect'&e. as retention area. 7Ber ise o% Rete(ti ( Ri%5t. by L'() 7(e&. '() A7'&) t C5il)&e( un#er . A !an#o/ner CHO HAS DIED must Se . 6 o% 4A 6637 (A.). ,o. 11, Series o% ha$e +'(i*e.te) )u&i(% 5i. 19905 an# A.). ,o. 2, S. 2003) li*eti+e 5i. i(te(ti ( t e@e&ci.e A.*an#o/ners /hose !an#ho!#ing are

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LAND 't t5e ti+e * .'le . (Se . 12, 4epub!i A t ,o. 38-- as amen#e# by 4epub!i A t ,o. 6389) E -TRANSFERABILITY OF LANDHOLDING

/! S'le3 Alie('ti ( & T&'(.*e& * t5e le%'l p ..e..i ( * t5e l'()5 l)i(%! 2. E@ti(%ui.5+e(t * A%&icultu&'l Le'.e5 l) Rel'ti (. (Se . 8, 4A 38--) A. AEA,(),97," o% the !an#ho!#ing /ithout the Kno/!e#ge o% the agri u!tura! !essor. ("eo#oro $s. 9a araeg, 27 S04A 7 (1969) "o onstitute aban#onment there must be an abso!ute re!in:uishment o% the premises o% the tenant. "his Oo$ert a tO must be oup!e# /ith his intention to #o "he BENEFICIARIES o% Presi#entia! so O/hi h is arrie# into e%%e t,O (e ree ,o. 27 are "7,A,".?A4974S, (Phi!ippine *abor an# So ia! thus@ *egis!ation, 9artin, 70 7#. Pp. -03. -06). Aban#onment to $a!i#!y I"his sha!! app!y to "7,A,". terminate tenan y re!ationship is ?A4974S o% P4+&A"7 hara teri1e# by@ A64+0;*";4A* *A,(S P4+9A4+*H

5i. &i%5t * &ete(ti ( p&i & t 0" AUGUST /--2 ("he %ina!ity o% the Supreme 0ourt #e ision in the ase OAsso iation o% Sma!! *an#o/ners o% the Phi!ippines, +n . et a!. $s. Aonorab!e Se retary o% Agrarian 4e%orm) to 'll 7 his heirs to no/ eBer ise su h right un#er these 6ui#e!ines. Sai# heirs must sho/ proo% o% the origina! !an#o/ners intention. "he heirs may a!so eBer ise the origina! !an#o/nersP right o% retention i% they an pro$e that the #e e#ent HAD NO DNOCLEDGE o% )*" o$erage o$er the subDe t property.

o$ere# by 0A4P may &et'i( an area o% FIVE ;1< he tares. +n a##ition, ea h o% his hi!#ren, (!egitimate, i!!egitimate or a#opte# may be ACARDED three (3) he tares as PREFERRED BENEFICIARY pro$i#e#. 1. "hat the hi!# /as 't le'.t /1 years o% age on the 'une 13, 1988 (4A 6637. e%%e ti$ity)5 an# 2. "he hi!# 7'. 'ctu'll> tilli(% t5e l'() or #ire t!y managing the %arm!an# %rom 'une 13, 1988 to the %i!ing o% the app!i ation %or retention an#Cor at the time o% a :uisition o% the !an# un#er 0A4P. Rete(ti ( * 5u.b'() '() 7i*e: 1. ?or marriages o$ere# by the Ne7 Ci6il C )e, the spouses /ho o/ns on!y CON=UGAL PROPERTIES may retain a tota! o% %i$e (3) he tares un!ess there

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(a)an +,"7," to AEA,(),, an# (b)an )&74" A0" to arry out su h intention "here must be, there%ore, ,) A,+9;S 47&74"7,(+ on the part o% the tenant (*abor, Agrarian an# So ia! *egis!ation, 9ontemayor, 2n# 7#., 1968, pp. 3-.33) B! VOLUNTARY SURRENDER o% the !an#ho!#ing by the agri u!tura! !essee, /ritten noti e o% /hi h sha!! be ser$e# three months in a#$an e (,isnisan, et a!., $s. 0A, 29- S04A 173 (1998). As a mo#e o% eBtinguishing tenan y re!ationship it onnotes a #e ision in the part o% the tenant to return the possession o% the !an#ho!#ing an# re!in:uishe# his right as tenant thereon unin%!uen e# by any ompe!!ing %a tor, oming parti u!ar!y %rom the !an#ho!#er. ?or surren#er to

(7&)"7( ") 4+07 )4 0)4, un#er a SHS"79 )? SAA47.04)P or *7AS7."7,A,0H, /hether !assi%ie# as !an#e# estate or not. (Par. 3, Presi#entia! (e ree ,o. 27). I"he tenant.%armers, /hether in !an# !assi%ie# as !an#e# estate or not sha!! be DEEMED OCNER o% a portion onstituting o% *'+il>-.iAe *'&+ * FIVE ;1< 5ect'&e. i* ( t i&&i%'te) '() THREE ;"< HECTARES IF IRRIGATED! (Par. 6, Presi#entia! (e ree ,o. 27) "he tenant sha!! pay %or THE COST OF THE LAND, in !u#ing i(te&e.t * .i@ ;,< pe&ce(t pe& '((u+ i( FIFTEEN ;/1< YEARS * *i*tee( ;/1< eFu'l '((u'l '+ &tiA'ti (.! ,)"7@ "he perio# in e@te()e) to t/enty (20) years e:ua! annua! amorti1ation un#er Se . 6, 7.).. 228 o% 'u!y 17, 1987 by Pres. 0ora1on 0. A:uino.

is an agreement %or the =UDICIAL SEPERATION OF PROPERTIES. Ao/e$er, i% either or both o% them are !an#o/ners in their respe ti$e rights ( apita! an#Cor parapherna!) they may retain not more than *i6e ;1< 5ect'&e. e'c5 %rom their respe ti$e !an#ho!#ings. +n no ase, ho/e$er, sha!! the tota! retention o% su h a oup!e e@cee) 10 he tares, an# 2. ?or marriage o$ere# by the Ne7 F'+il> C )e (August 3, 1988), a husban# o/ning apita! property an#Cor a /i%e o/ning parapherna! property +'> &et'i( ( t + &e t5'( *i6e ;1< 5ect'&e. e'c5 p& 6i)e) t5e> e@ecute ' =UDICIAL SPERATION OF PROPERTIES prior to entering the marriage. +n the absen e o% su h an agreement a!! properties ( apita!, parapherna! an#

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be $a!i#, there must be (a) an intention to aban#on, an# (b) an eBterna! a t or an omission to a t, by /hi h su h intention is arrie# out into e%%e t. =hen a tenant $o!untari!y yie!#s the !an#, he terminates the tenan y re!ationship by his uni!atera! a t. (Ana !eto +nson $s. P!anas #e Asis, et.a!., 0A 64 ,o. Sp. 01769, ) tober 11, 197-.) ,)"7@ SUBLEASING by the agri u!tura! !essee is a!so a groun# %or the eBtinguishments o% Agri u!tura! *easeho!# 4e!ations. (Par.(2), Se . 27, 4epub!i A t ,o. 38--). EI - EVIDENCE OF RIGHT:TITLE OVER THE LANDHOLDING! AGRICUTLURAL LEASEHOLD CONTRACT IN GENERAL!-

"he TITLE to the !an# 7(e) b> t5e te('(t .5'll ( t be t&'(.*e&'ble e@cept BY HEREDITARY SUCCESSION & TO THE GOVERNMENT in a or#an e /ith this (e ree, t5e C )e * A%&'&i'( Re* &+ '() t5e& e@i.ti(% l'7. '() &e%ul'ti (! ,)"7@ Se . 6, 7) 228 pro$i#es, HO7(e&.5ip o% !an#s a :uire# by %armer.bene%i iary +'> be t&'(.*e&&e) '*te& *ull p'>+e(t * '+ &tiA'ti (! "he EMANCIPATION PATENT. A/ar#e# to the "7,A,".E7,7?+0+A4H 047A"7S a VESTED RIGHT OF ABSOLUTE OCNERSHIP in the !an#ho!#ing 8 Ia right /hi h has be ome *i@e) an# e.t'bli.5e) an# i. ( l (%e& pe( t ) ubt & c (t& 6e&.>. I (Pagta!unan $s. "amayo, 183 S04A 232)

onDuga!) sha!! be onsi#ere# he!# in abso!ute ommunity. ?UALIFIED BENEFICIARIES!- "he !an#s o$ere# by the 0A4P sha!! be #istribute# as mu h a possib!e to l'()le.. &e.i)e(t. o% the .'+e b'&'(%'>3 or in the absen e thereo%, !an#!ess resi#ent o% the .'+e +u(icip'lit> in the %o!!o/ing &)e& * p&i &it>@ a) '%&icultu&'l !essees an# share tenants5 b) &e%ul'& %arm/orKers5 ) .e'. ('l %arm/orKers5 #) t5e& %arm/orKers5 e) 'ctu'l ti!!ers or o upants o% pub!i !an#s5 %) c llecti6e. or ooperati$es o% the abo$e bene%i iaries5 an# g) t5e&. #ire t!y /orKing on the !an#. (Par. 1, Se . 22, 4A 6637) "he c5il)&e( * l'() 7(e&. /ho are

. "he '%&icultu&'l le.. & an# the "he 9o#e o% "rans%er o% !an#s "enant. '%&icultu&'l le..ee sha!! be FREE to Eene%i iaries un#er Presi#entia! (e ree ,o.

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any Kin# o% TERMS, 27 are the %o!!o/ing@ or STIPULATIONS in a CONTRACT as !ong as /! OPERATION LAND TRANSFER t c (t&'&> to LAC, ;OLT< u()e& PD 04 '() EO 00#G '() PUBLIC POLICY! (Se . t ,o. 38--). Ope&'ti ( L'() T&'(.*e& is the )4(74*H an# SHS"79A"+0 7B ept in ase o% +i.t'Be, "4A,S?74 o% !an# %rom the 6i le(ce, i(ti+i)'ti (, u()ue !an#o/ner to the tenant.%armer un#er i(*lue(ce, or %rau#, an Presi#entia! (e ree ,o. 27. A64+0;*";4A* 0),"4A0" &e)uce) i( 7&iti(% '() &e%i.te&e) as 2. DIRECT PAYMENT SCHEME ((PS). hereina%ter pro$i#e#, SHALL BE 8 "he !an#o/ner an# the tenant. CONCLUSIVE BETCEEN THE bene%i iary an A6477 on the CONTRACTING PARTIES3 i* ( t (+470" SA*7 terms an# on#itions DENOUNCED OR IMPUGNED /hi h is not onerous to the tenant. CITHIN THIRTY DAYS AFTER bene%i iary. REGISTRATION (Se . 17, 4epub!i A t ,o. 38--) "he $a!ue i% the !an# sha!! e:ui$a!ent to t/o an# one ha!% (2.1C2) times the AVERAGE HARVEST OF EII MODES OF TRANSFER OF THE THREE NORMAL CROP YEARS LAND TO THE TENANT OR IMMEDIATELY PRECEDING THE BENEFICIARY PROMULGATION OF THIS DEGREE! "he !an#o/ner.agri u!tura! !essor

ENTER into CONDITIONS LEASEHOLD they '&e ( MORALS OR 13 4epub!i A

Fu'li*ie) un#er Se . 6 o% this A t sha!! be gi$en p&e*e&e(ce in the #istribution o% the !an# o% their parents5 An#, %urther, that a tua! tenant.ti!!ers in the !an#ho!#ing sha!! be eDe te# or remo$e# there%rom. (Par. 2, Se .22, 4A 6637). IDi.t&ibuti ( Li+it 8 ,o :ua!i%ie# bene%i iary may o/n more than "hree (3) he tares o% agri u!tura! !an#J (Se . 23, 4A 6637) IA7'&) Ceili(% * & Be(e*ici'&ie.. 8 Eene%i iaries sha!! be a/ar#e# an area NOT EECEEDING THREE ;"< HECTARES /hi h may o$er ' CONTIGUOUS tra t o% !an# or SEVERAL PARCELS o% !an# umu!ate# up to the pres ribe# a/ar# !imits.J (Se . 23, 4A 6637). Payment by Eene%i iaries.. *an#s a/ar#e# pursuant to this A t sha!! be pai# %or the bene%i iaries to the *EP in thirty (30) annua! amorti1ations at siB per ent (6N) per annum. "he payments %or the %irst three (3) years a%ter the a/ar# may be at re#u e#

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an ?477*H A,( &)*;,"A4+*H "4A,S?74 the !an#ho!#ing to the agri u!tura! !essor by /ay o%@ 1. Sa!e 2. (onation 3. Su ession 8 the agri u!tura! !essee as (7&+S77 to the testatorQs %ree portion in the /i!!. Ao/e$er, the !imitation impose# by !a/ on his right to a :uire# must be obser$e#, i.e. *ega! prohibition on the a :uisition o% property Ey operation o% !a/, the agri u!tura!.!essee an a :uire# o/nership o% the subDe t !an#ho!#ing by the eBer ise o% the %o!!o/ing rights. /! Ri%5t * P&e-E+pti (G '() 0! Ri%5t * Re)e+pti ( EIII - CONSIDERATION FOR THE USE OF VALUE OF THE LAND!

amounts as estab!ishe# by the PA40@ Pro$i#e#, "hat the %irst %i$e (3) annua! payments may not be more than %i$e per ent (3N) o% the $a!ue o% the annua! gross pro#u tion as estab!ishe# by the (A4. Shou!# the s he#u!e# annua! payments a%ter the %i%th year eB ee# ten per ent (10N) o% the annua! gross pro#u tion an# the %ai!ure to pro#u e a or#ing!y is not #ue to the bene%i iaryQs %au!t, the *EP may re#u e the interest rate or re#u e the prin ipa! ob!igation to maKe the repayment a%%or#ab!e. "he *EP sha!! ha$e a !ien by /ay o% mortgage on the !an# a/ar#e# to the bene%i iary5 an# this mortgage may be %ore !ose# by the *EP %or non.payment o% an aggregate o% three (3) annua! amorti1ations. "he *EP sha!! a#$ise the (A4 o% su h pro ee#ings an# the !atter sha!! subse:uent!y a/ar# the %or%eite# !an#ho!#ing to other :ua!i%ie# bene%i iaries. A bene%i iary /hose !an#, as pro$i#e# herein, has been %ore !ose# sha!! therea%ter be permanent!y #is:ua!i%ie# %rom be oming

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C (.i)e&'ti ( * & t5e Le'.e A%&icultu&'l l'().:

a bene%i iary un#er this A t. (Se .26, 4A 6637). "rans%erabi!ity o% A/ar#e# *an#s.. !an#s a :uire# by bene%i iaries un#er this A t may not be so!#, trans%erre# or on$eye# eB ept through here#itary su ession, or to the go$ernment, or to the *EP, or to other :ua!i%ie# bene%i iaries %or a perio# o% ten (10) years5 Pro$i#e#, ho/e$er, "hat the hi!#ren or the spouse o% the trans%eror sha!! ha$e a right to repur hase the !an# %rom the go$ernment or *EP /ithin the perio# o% t/o (2) years. (ue noti e o% the a$ai!abi!ity o% the !an# sha!! be gi$en by the *EP to he Earangay Agrarian 4e%orm 0ommittee (EA40) o% the barangay /here the !an# is situate#. "he Pro$in ia! Agrarian 4e%orm 0oor#inating 0ommittee (PA400)9), as herein pro$i#e#, sha!!, in turn, be gi$en #ue noti e thereo% by the EA40. +% the !an# has not yet been %u!!y pai# by the bene%i iary, the rights to the !an# may be trans%erre# or on$eye#, /ith prior appro$a! o% the (A4, to any heir o% the

1. ,ot more than 01 pe& ce(tu+ * t5e '6e&'%e ( &+'l 5'&6e.t #uring the three agri u!tura! years imme#iate!y pre e#ing the #ate the !easeho!# /as estab!ishe#. 2. (e#u tib!e items a. See)li(%. b. 0ost o% H'&6e.ti(% . 0ost o% T5&e.5i(% #. 0ost o% L ')i(% e. 0ost o% H'uli(% %. 0ost o% P& ce..i(% 3. +% the !an# is u!ti$ate# %or a perio# o% !ess than three years, the initia! onsi#eration is base# on the '6e&'%e ( &+'l 5'&6e.t #uring the pre ee#ing years /hen the !an# /as a tua!!y u!ti$ate# or on the har$est o% the %irst year i% ne/!y u!ti$ate#, an# the har$est is norma!. -. A%ter the !apse o% the %irst three norma!

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har$est, the *i('l c (.i)e&'ti ( sha!! be base# on the a$erage norma! har$est #uring these three pre e#ing agri u!tura! years. 3. +n the 'b.e(ce * '(> '%&ee+e(t as to the renta!, the maBimum a!!o/e# sha!! be app!ie#. 6. +% C'pit'l I+p& 6e+e(t is intro#u e# not by the !essee to in rease pro#u ti$ity, the renta!s sha!! be in rease# proportiona!!y to the onse:uent in rease in pro#u tion #ue to the impro$ement. 7. +n ase o% Di.'%&ee+e(t the 0ourt sha!! #etermine the reasonab!y in rease in renta!. 8. C'pit'l i+p& 6e+e(t re%ers to any permanent an# tangib!e impro$ement on the !an# that /i!! resu!t in in rease# pro#u ti$ity. +% #one /ith the onsent o% the !essee, then the !ease renta! sha!! be in rease# proportionate!y.

bene%i iary or to any other bene%i iary /ho, as a on#ition %or su h trans%er or on$eyan e, sha!! u!ti$ate the !an# himse!%. ?ai!ing omp!ian e here/ith, the !an# sha!! be trans%erre# to the *EP /hi h sha!! gi$e #ue noti e o% the a$ai!abi!ity o% the !an# in the manner spe i%ie# in the imme#iate!y pre e#ing paragraph. +n the e$ent o% su h trans%er to the *EP, the !atter sha!! ompensate the bene%i iary in one !ump sum %or the amounts the !atter has a!rea#y pai#, together /ith the $a!ue o% impro$ements he has ma#e on the !an#.(Se . 27, 4A 6637). "he TITLES a/ar#e# to %armer. bene%i iaries 0A4P are the %o!!o/ing@ 1. ?ree Patent %or Pub!i A!ienation an# (isposab!e !an#s5 2. 074"+?+0A"7 )? *A,( )=,74SA+P A=A4( (0*)A) %or 4esett!ement sites@

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3. S"7=A4(SA+P 0),"4A0" %or *an#s o$ere# by +,"7464A"7( S)0+A* ?)47S"4H P4)64A9 (+S?P)5 an# -. 0*)A %or Pri$ate o% Agri u!tura! *an#s. "he 9)(7S )? A0<;+4+,6 *A,(S %or #istribution un#er 0A4P@ a. 0)9P;*S)4H A0<;+S+"+), (0A) (Se . 16, 4A 6637) b. &)*;,"A4H )??74 ") S7** (&)S) (Se . 19, 4A 6637) . &)*;,"A4H *A,( "4A,?74C(+470" PAH97," S0A797 (&*"C(PS) (Se . 20, 4A 6637). F'ct &.:C&ite&i' onsi#ere# #etermining Dust ompensation@ 1. C .t * AcFui.iti ( o% the !an#5 2. Cu&&e(t V'lue o% !iKe properties5 3. N'tu&e o% the !an#5 in

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-. Actu'l use5 3. I(c +e5 6. S7 &( 6'lu'ti ( by the !an#o/ner5 7. T'@ Decl'&'ti (5 8. A..e..+e(t +')e b> % 6e&(+e(t '..e.. &.5 9. "he . ci'l an# ec ( +ic bene%its ontribute# by the %armers, an# 10.N (-p'>+e(t * t'@e. & l '(. .ecu&e) *& + '(> % 6e&(+e(t *i('(ci(% i(.tituti ( ( t5e l'()! B'.ic F &+ul' * & t5e 6'lu'ti ( c 6e&e) b> VOS '() CA 8 * l'().

LV I ;CNI @ 2!,< J ;CS @ 2!"< J ;MV @ 2!/< /here@ LV I L'() V'lue CNI I C'pit'liAe) Net I(c +e CS I C +p'&'ble S'le. MV I M'&Bet V'lue pe& T'@ Decl'&'ti (

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"he abo$e %ormu!a sha!! be use# i% a!! t5&ee *'ct &. are present, re!e$ant an# app!i ab!e. A.1. =hen the CS %a tor is ( t p&e.e(t an# CNI an# MV are 'pplic'ble, the * &+ul' sha!! be@ LV I ;CNI @ 2!-< J ;MV @ 2!/< A.2. =hen the CNI %a tor is ( t p&e.e(t an# CS an# MV are app!i ab!e, the %ormu!a sha!! be@ LV I ;CS @ 2!-< J ;MV @ 2!/< A.3. =hen both CS an# CNI are ( t p&e.e(t an# on!y MV is app!i ab!e, the * &+ul' sha!! be5 LV I ;MV @ 0<

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