AGRARIAN LAW NOTES (UNGOS)
Chapter 2 The Tenant Emancipation Law c.
PD No. 27
Applicability of the Law
The Tenant Emancipation Law supplements the CARL.
Applies only to private agricultural lands primarily devoted to rice and corn under
share tenancy or lease-tenancy.
Transfer of Lands to Tenants
PD No. 27 provides that:
The tenant farmer, whether in land classified as landed estate or not, shall
be deemed owner of a portion constituting a family-size farm of five (5)
hectares if not irrigated and three (3) hectares if irrigated. --- shall be
deemed owner does not mean automatic transfer of title or ownership of
the land to the tenant or lessee. There has to be full payment of just
compensation before the landowner could be divested of his land,
otherwise, the land would be taken without just compensation.
The tenant farmer is entitled to:
a. 5 hectares (not irrigated)
b. 3 hectares (irrigated)
The land transfer under PD No 27 is effected in 2 stages, namely:
1. Issuance of a Certificate of Land Transfer (CLT)
Significance of the CLT: does not vest upon tenant-beneficiary
ownership over the land but merely qualifies the tenant-beneficiary to
possess the land and comply with certain conditions preparatory to
ownership. If tenant-beneficiary complies with the conditions, he is
issued an EP.
2. Issuance of Emancipation Patent (EP)
Significance of an EP: vests upon the farmer-beneficiary absolute
ownership over the landholding. It is a conclusive authority for the
issuance of TCT or COT in his name.
EPs become indefeasible and imprescriptible after 1 year from its
registration with the Office of the Registry of Deeds, subject to
conditions, limitations and qualifications under CARL, the Property
Registration Decree and other laws.
Jurisdiction over cancellation of EPs: Secretary of the DAR
EP may be cancelled on the following grounds: (FAN-SIM)
a. Failure to pay 3 annual amortization
b. Abandonment of the land
Neglect or misuse of land
d. Sale, transfer or conveyance of the right to use the land
e. Illegal conversion of the land
f. Misuse or diversion of financial and support services.
Tenant-beneficiary cannot sell or transfer ownership of the land acquired
under the Tenant Emancipation Law, EXCEPT to the Government or by
hereditary succession. PD No. 27 expressly provides:
Title to land acquired pursuant to this Decree or the Land Reform Program
of the Government shall not be transferable except by hereditary
succession or to the Government in accordance with the provisions of this
Decree, the Code of Agrarian Reforms and other existing laws and
regulation.
Tenant-farmer will pay the Land Bank
Farmer-beneficiary + heirs === pay the Land Bank
Total costs of the land + interest rate 6% p/a for 20
years in 20 equal annual amortizations
EP will be issued to the Farmer-beneficiary after full payment of the
amortizations. (EO No. 228)
Payment of Just Compensation to Landowner through the following modes
(at the option of the landowner)
a. Direct Payment to the landowner by the farmer-beneficiaries (in cash
or in any kinds)
b. Payment by the Land Bank with 10% payable in cash immediately and
the balance payable in Land Bank bonds over a 10-year period
With 1/10 of the face value maturing every
year until the 10th year
c. Other modes prescribed by the Presidential Agrarian Reform Council
Retention Right of Landowner
The landowner is entitled retain an area of not more than 7 hectares, is he is
cultivating or will cultivate it.
Personal cultivation by the landowner is not required cultivation can be done
indirectly (ie. Labor Administration)
Jurisdiction over retention or exemption issues: Secretary of the DAR
because they pertain to administrative implementation of agrarian law.
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AGRARIAN LAW NOTES (UNGOS)

Lessor can be a usufructuary or a legal possessor of such civil law

lessee.
Chapter 3 The Code of Agrarian Reforms Parties agree to reduce their agreement in writing, the agricultural
leasehold contract shall be:
RA No. 3844 a. Drawn in quadruplicate in a language or dialect known to the
agricultural lessee
History of the Code of Agrarian Reforms b. Signed or thumb-marked both by agricultural lessee and lessor
before 2 witnesses, to be chosen by each party.
Code of Agrarian Reforms was initially denominated as Agricultural Land c. Acknowledge before the municipal court of the municipality where
Reform Code the land is situated
Administrative Bill submitted by President Diosdado Macapagal. d. Registered with the Municipal Treasurer
It was signed into law on August 8, 1963.
**agricultural lessee = cant read = contents of the document shall be
Objectives of the Code of Agrarian Reforms read and explained to him by his witness.

To create a system of owner-cultivatorship and economic family-size as basis of
Philippine agriculture
Code of Agrarian Reforms supplements the CARL, CARL did not repeal the
Code of Agrarian Reforms.
**Municipal Treasurer = custodian of agricultural lease contracts.
**contracts = kept and recorded in the Registry of Agricultural
Leasehold Contracts.
Terms and Conditions of the lease contract

Salient features of Code of Agrarian Reforms The agricultural lessee and lessor are FREE TO ENTER INTO ANY KIND OF
TERM, CONDITION OR STIPULATION in a leasehold contract, as long as they
a. Abolish the share tenancy system and replaced it with agricultural land are not contrary to law, morals or public policy.
b. Established a bill of rights for agricultural workers
c. Established the DAR as the machinery for the acquisition and Mode of Payment of rental
distribution of agricultural land
d. Established the LB as financial arm of the agrarian reform program In money or;
- Should be paid within a reasonable time from threshing or
Code of Agrarian Reforms supplements the CARL processing
in produce;
***Share Tenancy where 2 or more persons agree on a joint undertaking for - Should be paid immediately after threshing or processing
agricultural production wherein 1 party furnishes the land and the other his labor. or BOTH

In agricultural leasehold = the farmer cultivates the land belonging to, or Term of the lease: INDEFINITE
possessed by, another with the latters consent for a price in money or in produce i.e. until the lease is terminated for cause
in both. REASON: agricultural lessee-farmers are entitled to security of tenure.

The Code of Agrarian Reforms abolished share tenancy. All share tenancy
arrangements were automatically converted to lease-hold.
Extent of application of the leasehold principles under the Code of Agrarian
Reforms
Form of Lease Contract
Expiration of lease contract does not terminate the leasehold relation because
agricultural leasehold relationship is not an ordinary contractual relation.
REASON: agricultural lessees re entitled to security of tenure. (Sec 10 of the
Code of Agrarian Reforms)
Neither expiration of the lease contract authorizes the landowner to increase the
rentals, unless the landowner introduces capital improvements to increase its
productivity to the consequent increase in production due to said improvements.

No particular form is required Transfer of ownership of the land does not terminate the leasehold relation. The
The lease agreement can be oral or written buyer or transferee becomes the lessor.
Lessor need not to be the owner of the land

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AGRARIAN LAW NOTES (UNGOS)

The lessee may disposed of the landholding on the following grounds:

a. Land has been declared by the appropriate government agency to be
Death or incapacity of the lessee does not terminate the leasehold relation. suited for residential, commercial, industrial or some other urban
The lessor must choose the successor from among the following, if they are purposes.
willing to personally cultivate the landholding: b. Failure of the agricultural lessee to substantially comply with any of the
a. Surviving spouse terms and conditions of the lease contract or any provisions of the
b. Eldest direct descendant by consanguinity Code of Agrarian Reforms.
c. Next eldest descendant or descendants in the order of their age. c. Agricultural lessee planted crops or used the landholding for a purpose
other than what had been agreed upon
***If none above exists or if above persons are not willing to cultivate the land, d. Agricultural lessee failed to adopt proven farm practices
the leasehold relations is EXTINGUISHED (Sec 9 of Code of Agrarian Reforms) e. The land or other substantial permanent improvement thereon is
substantially damaged or destroyed or unreasonably deteriorated
When agricultural leasehold is extinguished through the fault or negligence of the agricultural lessee.
f. Agricultural lessee does not pay the lease rental when it falls due
a. Abandonment of the landholding without the knowledge of the g. The lessee employed a sub-lessee on his landholding
agricultural lessor
The dispossession is NOT AUTOMATIC. The land-owner-lessor should file the
2 Essential Elements corresponding petition with DAR Board and prove its existence of the grounds for
1. Intent to abandon dispossession.
2. Actual act of abandonment
Obligations of agricultural lessor and agricultural lessee
b. Voluntary surrender of the landholding by the agricultural lessee
Agricultural Lessor Agricultural Lessee
To constitute a ground for extinguishment of the lease: (1) keep the agricultural lessee in (1) cultivate and take care of the
1. Surrender of the landholding must be voluntary on the part of the peaceful possession and farm
farmer-lessee cultivation (2) inform agricultural lessor
2. Farmer-lessee must serve 3 months advance notice. (2) keep intact such permanent within reasonable time of any
useful improvements existing trespass committed by 3rd
c. Absence of the persons to succeed the lessee, in the event of on the landholding at the start persons upon the farm
death or permanent incapacity of the lessee. of the leasehold relation (3) take reasonable care of the work
animals and farm implements
***intended to protect the interest of delivered to him by the agricultural
The Agricultural lessee may terminate the leasehold for any of the following the agricultural lessee against lessor \
causes: harassment by the agricultural lessor. (4) keep his farm and growing crops
Useful improvements are considered attended to during the work
a. Cruel, inhumane or offensive treatment of the agricultural lessee or any
as an important part of the season.
of his immediate farm household by the agricultural lessor.
consideration of the leasehold (5) Notify the agricultural lessor at
b. Non-compliance on the part of the agricultural lessor with any of his
obligations under the Code of Agrarian Reforms or lease contract contract and to remove or destroy least 3 days before date of
c. Compulsion of the agricultural lessee or any member of the farm them = violation thereof. harvesting or threshing
household by the agricultural lessor to render any service not (6) Pay the lease rental when it falls
connected with farm work or even without compulsion if no due
compensation is paid.
d. Commission of a crime by the agricultural lessor or his representatives ***destroying any improvement on the landholding is a violation of the agricultural
e. Voluntary surrender due to circumstances more advantageous to him lessees obligation to take care of the farm, crops, and other improvements on
and his family. the landholding with the diligence of a good father of a family.

Dispossession

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AGRARIAN LAW NOTES (UNGOS)

DISPUTES AS TO THE REASONABLENESS OF THE T&Cs may be brought by

the (1) lessee or by (2) DAR to the PROPER COURT.

Rights of agricultural lessor and agricultural lessee

Agricultural Lessor Agricultural Lessee

(1) inspect and observe the extent (1) To have possession and peaceful Right of Redemption
of compliance of the T&C of the enjoyment of the land
lease contract (2) To manage and work on the land in Land sold to 3rd person without knowledge of agricultural lessee = latter
(2) propose a change in the use of a manner and method of cultivation has the right to redeem the same at reasonable price and consideration
the landholding to other and harvest which conforms to (by filing a petition or request for redemption with DAR within 180 days
from knowledge of the sale)
agricultural purposes proven farm practices
Redemption Price = reasonable price of the land at the time of sale.
(3) require the agricultural lessee to (3) To mechanize all farm work
(4) To deal with millers and processors, DAR shall initiate, Land Bank shall finance, said redemption. (Sec 12
adopt in his proven farm
Code of Agrarian Reforms)
practices necessary to the attend issuance of quedans and
conservations of the land warehouse receipts for the produce Rights of agricultural workers (same rights and opportunities in life as
(4) mortgage expected rentals due him industrial workers)
**can exercise these rights as long as (5) To have a homelot within the land
it does not interfere with the lessees that he is leasing. 1. Right to self-organization
peaceful possession of the land. 2. Right to engage in concerned activities
3. Right to minimum wage
4. Right to work for not more than 8 hours
5. Right to compensation for personal injuries, death or illness
If the agricultural lessee (1) surrenders; (2) abandons; (3) validly ejected 6. Right to security of tenure
from his landholding, he is entitled to be indemnified for:
Acts which the agricultural lessor is forbidden to do:
1. Cost and expenses incurred during cultivation
2. For of the necessary and useful improvements made by him on the 1. To dispose the agricultural lessee of his landholding without just cause
landholding which are tangible and have not yet lost their utility at the 2. To require the agricultural lessee to assume, (directly or indirectly), the
time of surrender or abandonment of the landholding. payment of taxes
3. To require agricultural lessee to assume, (directly or indirectly), any
Right of pre-emption part of the rent, canon, or other consideration which the agricultural
lessor is obliged to pay to 3rd persons for the use of the land
The agricultural lessee has the preferential right to buy the land actually 4. To deal with millers or processors without written authorization of the
cultivated by him under reasonable T&C. lessee
5. To discourage (directly or indirectly) the formation of maintenance or
If the agricultural lessor decides to sell the landholding, he should give notice to: growth of unions or organizations of agricultural lessees in the
a. DAR landholding
b. All lessees affected
Acts which the agricultural lessee is forbidden to do:
If agricultural lessee agrees with the T&Cs of the sale, he must give written
notice to the agricultural lessor of his intention to exercise his RIGHT OF PRE- 1. To work additional landholdings belonging to a different agricultural
EMPTION, and thereafter tender payment of, or present a guarantee certificate lessor
from the Land Bank to the agricultural lessor. 2. To employ a sub-lessee on his landholding

If agricultural lessor refuses to accept such tender of payment, he may consign it PURPOSE of the prohibition: to prevent agricultural lessee from dissipating his
with the court. labor and efforts in various landholdings at the expenses of the first agricultural
lessor.

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AGRARIAN LAW NOTES (UNGOS)
Agricultural leasehold is PERSONAL in character = agricultural lesseemust
personally work and cultivate the landholding.
To be enforceable, loans obtained by an agricultural lessee should be:
1. Written in a language or dialect known to the agricultural lessee
2. Signed or thumb-marked by the agricultural lessee or by his agent.
Properties of the lessee that are exempt from liens or execution
25% of the entire produce of the land under cultivation
Work animals and farm implements EXCEPT upon judgement of its Land Bank
price or upon judgement of foreclosure of a mortgage
**the exemption cannot be waived for the reason that it intended to provide
sustenance for the lessee and his family from one harvest to the next. (Maniego
vs Castelo)
Prescription of action
Prescriptive period from filing an action to enforce the rights and obligations
under the Code of Agrarian Reforms is 3 years from the times the cause of
action accrued.
Department of Agrarian Reform
The Code of Agrarian Reforms re-named the Land Authority (implementing arm
of the agrarian reform program) as the Department of Agrarian Reform.
Functions: See pages 176-177 of Ungos Book
Created by Code of Agrarian Reforms
Financial arm of the agrarian reform program
Powers: See pages 178-180 of Ungos Book
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