Final Examinations - Law on Agrarian Reform

Atty. Marcel G. Silvestre

Q.16.- Mang Tacio during his lifetime had no knowledge that his property will
be covered
under the Operation Land Transfer. Just recently, Mang Tacio
suffered a stroke and
died instantly. May his legal heirs exercise the original landowners
right of retention?
How?
His legal heirs may exercise the original landowners right of retention
if the landowner who has died have manifested his intention during his
lifetime to exercise right of retention prior to August 23, 1990 to allow his
heirs to exercise such right under the guideline or if they (heirs) can prove
that the decedent (original landowner) had no knowledge of the Operation
Land Transfer coverage over the subject matter.
Please read excerpt if you want to revise statement:
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.
Q.17.- Under Presidential Decree No. 27, the beneficiaries are entitled to
what portion if the
property is irrigated? If not irrigated up to what extent he is
entitled? How can the
beneficiaries pay the cost of the land?
The beneficiaries is entitled to 3 hectares if irrigated and 5 hectares if
not irrigated since transfer of land is through hereditary succession. They
can pay through direct payment scheme. The landowner and the tenant

beneficiary can agree on the direct sale terms and conditions which is not
onerous to the tenant-beneficiary. The value if the land shall equivalent to
two and one half (2 ) times the average harvest of three normal crop years
immediately preceding the promulgation of this degree.
Please read excerpt if you want to revise statement:

The tenant-farmers, whether in land classified as landed estate or not shall be

DEEMED OWNER of a portion constituting of family-size farm of FIVE (5)
hectares if not irrigated and THREE (3) HECTARES IF IRRIGATED. (Par. 6,
Presidential Decree No. 27)
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 in extended to twenty (20) years equal annual amortization
under Sec. 6, E.O.. 228 of July 17, 1987 by Pres. Corazon C. Aquino.
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 farmerbeneficiary may be transferred after full payment of amortization.
The Mode of Transfer of lands Tenant-Beneficiaries under Presidential
Decree No. 27 are the following:
1. OPERATION LAND TRANSFER (OLT) under PD 27 and EO 228; and
Operation Land Transfer is the ORDERLY and SYSTEMATIC TRANSFER of
land from the landowner to the tenant-farmer under Presidential Decree No. 27.
2.

DIRECT PAYMENT SCHEME (DPS). The landowner and the tenantbeneficiary can AGREE on the DIRECT SALE terms and conditions which is not
onerous to the tenant-beneficiary.
The value if the land shall equivalent to two and one half (2-1/2) times the
AVERAGE HARVEST OF THREE NORMAL CROP YEARS IMMEDIATELY
PRECEDING THE PROMULGATION OF THIS DEGREE.

Q.18.- What will be the effect of the declaration that emancipation patent
awarded to tenant-beneficiaries creates a vested right of absolute
ownership in the landholding?
The effect of the declaration will be that the lessee will be the
absolute owner of the land and will no longer be a tenants or lessees
under the agrarian law. They will be considered as the owners of the
subject landholding where prescription under Section 38 of RA 3844
finds no application. The above declaration should be supported by all
necessary requisites compliance to give effect of ownership.
To elaborate you may read below quote from a case decided by the supreme court:
As to petitioners claim that respondents (complainants) cause of action
had prescribed, let it be stressed that since respondents (complainants) have been
issued Emancipation Patent No. A-042463 and TCT No. ET-5184 as early as
December 18, 1987, they can no longer be considered tenants or lessees, but
owners of the subject landholding. Obviously, Section 38 of R.A. No. 3844 on
prescription finds no application to their case.1
As a final note, it is useful to reiterate the appellate courts conclusion that the registration of
Abads emancipation patents with the Register of Deeds in accordance with law had indeed put
petitioner on notice of the fact that Abad had already acquired a vested right of ownership of the
landholding under the agrarian reform law. This notwithstanding, inasmuch as registration is
nothing more than a mere species of notice, we need not further expound on this subject, since it
is overwhelmingly shown by the records and by petitioners own admissions that she had actual
knowledge of the fact that Abad became the absolute owner of the land in question merely upon
the issuance in his favor of EP Nos. A-216347 and A-216348. Hence, he and his heirs may no
longer be dispossessed of their rights of possession and ownership.
Another excerpt:

The REQUISITES FOR COVERAGE under OPERATION LAND

TRANSFER (OLT) program are the following:
1

1. The land must be DEVOTED to RICE or CORN crops; and

2. There must be a system of SHARE CROP or LEASE
TENANCY obtaining therein.
If either of these requisites is ABSENT, the land is NOT
COVERED under OLT. Hence, a landowner NEED NOT APPLY
FOR RETENTION, where his ownership over the entire
landholding is INTACT and UNDISTURBED. (Euclosia Daez
and/or Her Heirs represented by Edriano D. Daez vs. the Hon. CA,
et al., 325 SCRA 857).
RULES ON COVERAGE OF LANDS UNDER PD 27.
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.
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 to retention except if LOI 474 (October 21, 1976)
applies.
Rule 3
Landholding of seven (7) hectares or less is EXEMPTED from OLT except
if LOI 474 is applicable under the following circumstances:
Landowner owns other agricultural land of more than seven
hectares in aggregate area, or 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).

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.
The EMANCIPATION PATENT. Awarded to the TENANTBENEFICIARY CREATES a VESTED RIGHT OF ABSOLUTE
OWNERSHIP in the landholding a right which has become fixed and
established and is no longer open to doubt or controversy.
(Pagtalunan vs. Tamayo, 183 SCRA 252)