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Preface

CARL (R.A. 6657, as amended) and

Related Laws FUNDAMENTAL DISTINCTIONS AMONG TENANCY, TENANT
History and Evolution of Major EMANCIPATION DECREE AND CARP
Agrarian Reform Laws

Issuances
LEASEHOLD TENANCY TENANT EMANCIPATION COMPREHENSIVE A
Philippine Constitution DECREE REFORM PROG

Laws, Statutes and Presidential 1. Presidential Proclama

Issuances Instituting a Co
I — LEGAL BASIS: 1. Presidential Decree No. 27 –
Agrarian Reform P
Supreme Court Decisions and Tenants'
Issuances 1. Republic Act No. 3844 — Agricultural 22, 1987)
Emancipation Decree
Land Reform Code (August 8, 1963)
(October 21, 1972) 2. Republic Act No. 66
Court of Appeals Decisions
2. Republic Act No. 6389 — Code of instituting a Co
2. Letter of Instructions No. 474-
Implementing Rules and Regulations Agrarian Reform (September 10, 1971) Agrarian Reform
PLACING UNDER OLT
Promote Social
Issuances from Other Government 3. Presidential Decree No. 1425 — TENANTED RICE/CORN
Industrialization, p
Agencies Amending Presidential Decree No. LANDS SEVEN HECTARES
Mechanism
1040 by Strengthening the Prohibition OR LESS IN AREAS UNDER
Handbooks and Publications Implementation
against Agricultural Share Tenancy and CERTAIN CONDITIONS
purposes. (June 15
Articles and Journals Providing Penalties for Violation thereof. (OCTOBER 21, 1976)
(June 10, 1978) 1. The power
Forms and Templates Aquino to prom
4. Section 12, Republic Act No. 6657 —
Lecture Materials 1. Presidential Decree No. 27 was No. 131 and E
Comprehensive Agrarian Reform Law
assumed to be constitutional and 229 wa
of 1988.
Login and upheld as part and under Section
II — JURISPRUDENCE ON CONSTITUTIO- parcel of the law of the Transitory Pro
NALITY land in De Chavez vs. Zobel, 1987 Constitut
155 SCRA 26; Gonzales vs.
1. Security of Tenure — Primero vs. CAR, All assaul
Estrella, 91 SCRA 294 (1979)
101 Phil. 675 (1957); Pineda vs. de Guzman, validity of RA 6
and Association of Small
21 SCRA 1450 (1967). aside. (Associa
Landowners in the Philippines
Landowners
III – COVERAGE OR SCOPE Inc. vs. Secretary of Agrarian
Philippines,
Reform, 175 SCRA 342 (1989)
Agricultural Leasehold shall apply to all Secretary o
tenanted agricultural lands, including but not 2. Letter of Instructions No. 474; Reform, 175
limited to the following — Constitutionality was upheld in (1989)
Zurbano vs. Estrella, 137
A. Retained areas under R.A. 6657 and COVERAGE OF CARL
SCRA 333 (1989)
P.D. 27;
Scope
The REQUISITES FOR
B. Tenanted Agricultural Lands not yet All PUBLIC and PRIVAT
COVERAGE under OPERATION
acquired for distribution under CARP Lands regardless
LAND TRANSFER (OLT) program
pursuant to RA 6657; arrangement and
are the following:
produced, including l
C. All tenanted areas under Section 10 of
1. The land must be DEVOTED to public domain s
RA 6657 which may be covered by this
RICE or CORN crops; and agriculture. (1st par.,
Order. (Administrative Order No. 4, Series
6657)
of 1989) 2. There must be a system of
SHARE CROP or LEASE Specific lands
TENANCY obtaining therein. CARP.
IV — AREA OF COVERAGE
If either of these requisites is a. All alienable and d
It shall be unlawful for the tenant, ABSENT, the land is NOT lands of the publi
whenever the area of his holding is five COVERED under OLT. Hence, a devoted to or su
hectares or more, or is of sufficient size to landowner NEED NOT APPLY FOR agriculture
make him and the members of his RETENTION, where his ownership b. All lands of t
immediate farm household fully occupied in over the entire landholding domain in exces
its cultivation, to CONTRACT TO WORK at is INTACT and UNDISTURBED. specific limits
the same time on TWO OR MORE (Eudosia Daez and/or Her Heirs determined by Co
SEPARATE HOLDINGS belonging todifferent represented by Edriano D. Daez vs. the preceding par
landholders under any system of the Hon. CA, et al., 325 SCRA 857). c. All other lands own
tenancy WITHOUT THE KNOWLEDGE AND Government devo
RULES ON COVERAGE OF
CONSENT of the landholder with whom he first suitable for agricult
LANDS UNDER PD 27.
entered into tenancy relationship. (Par. 1, Sec. d. All private lands
24, Republic Act No. 1199) Rule 1 or suitable for
regardless o
V — EXEMPTION OR EXCLUSION FROM Landed estates or
agricultural
COVERAGE landholdings larger than 24
raised or that can
hectares (LOI 46 (December
Absence of any of the six (6) Essential thereon.
7, 1972) - covered
Elements of Tenancy Relationship.
by OLT and there is no
PRIORITIES — T
Essential Elements of Tenancy retention to the landowner.
coordination with the
Relationship:
Rule 2 plan
1. The parties are the landholder and and program the acq
Landholding of 24 hectares or
thetenant; distribution of all agric
less (but above 7 hectares
through a period of te
2. The subject is agricultural land; (LOI 46 (ibid) and LOI 227
from the effectivity of th
(November 16, 1974) covered
3. There is consent; shall be acquired and d
by OLT but landowner is
follows:
4. The purpose is agricultural production; entitled to retention except
if LOI 474 (October 21, Phase One:
5. There is personal cultivation;
1976) applies.
1. Rice and corn lan
6. There is sharing of harvest or payment of
Rule 3 2. Idle and abandone
rentals. (Caballes vs. DAR, 168 SCRA
247; Qua vs. Court of Appeals, 198 SCRA Landholding of seven (7) 3. Private lands
247.) hectares or less offeredby the
is EXEMPTED from OLT agrarian reform;
VI — RETENTION
except if LOI 474 is applicable
4. Foreclosed land by
In Leasehold Tenancy, the Landowner or under the following
financial institutions
agricultural lessor RETAIN OWNERSHIPof the circumstances:
subject landholding. 5. Land acquired by the
Landowner owns other
Commission o
The agricultural land of more
Government; and
landowner EXERCISES the ATTRIBUTES OF than seven hectares in
OWNERSHIP. Under Art. 428 of the New Civil aggregate area, or he owns 6. All other lands ow
Code, the OWNER has the RIGHT TO COMMERCIAL, INDUSTRIAL, Government devo
DISPOSE OF a thing without other RESIDENTIAL or URBAN suitable for agricu
limitation than those imposed by law. As LAND where he derives an
These
an incident of ownership. Therefore, there is adequate income, DAR Memo,
be acquire
nothing to prevent a landowner from Circular No. 11, s. 1978 (April
distributed imme
DONATING his NAKED TITLE TO THE LAND. 21, 1978) Adequate income is
effectivity of the A
However, the new owner MUST RESPECT at least FIVE THOUSAND
implementation
THE RIGHT OF THE TENANT. (P5000.00) PESOS per
be completed with
annum. (Gross Income).
The agricultural leasehold relation under not more than fo
this Code shall not be extinguished by MERE Lands not covered by Presidential (Sec. 7, par. 2, RA
EXPIRATION OF THE TERM OR PERIOD in a Decree No. 27.
Phase Two:
leasehold contract nor by theSALE,
1. Private agricultural lands which
ALIENATION OR TRANSFER of the legal 1. All disposable a
are NOT PRIMARILY
possession of the landholding. In case the public agricultural la
DEVOTED TO RICE OR
agricultural lessor SELLS, ALIENATES, OR
CORN, or 2. All arable publi
TRANSFERS the legal possession of the
lands under agro-fo
landholding, the PURCHASER OR 2. There is NO SYSTEM OF
and agricultural le
TRANSFEREE thereof shall be subrogated to SHARE CROP OR LEASE
cultivated and plan
the rights and substituted to the TENANCY obtaining in the
in accordance with
obligations of the agricultural lessor. (see. 10, landholding. (Daez vs. CA,
XIII of the Constitut
RA 3844) ibid)
3. All public agricultura
VII — BENEFICIARIES * The REQUISITES for the exercise
are open for new
by the landowner of his RIGHT OF
The beneficiaries under Republic Act No. and resettlement; a
RETENTION are the following:
1199, Republic Act No. 3844 as amended by 1. The land must be DEVOTED 4. All private agricult
Republic Act No. 6389 areSHARE-TENANT TO RICE OR CORN CROPS; excess of fifty (50)
OR AGRICULTURAL LESSEES
2. There must be a system of These shall be
(TENANTS). Thus:
share-crop or lease tenancy immediately upon the eff
“In the INTERPRETATION AND obtaining there. Act, with the implemen
ENFORCEMENT of this Act and other completed within a perio
3. The size of the landholding
laws as well as of the stipulations between than four (4) years.
MUST NOT EXCEED
the landholder and the tenant the
TWENTY FOUR (24) hectares Phase Three:
COURTS AND ADMINISTRATIVE
provided that at least seven (7)
OFFICIALS SHALL RESOLVE ALL All private AGRICULTU
hectares thereof are covered
GRAVE DOUBTS IN FAVOR OF THE commencing
lands and more than seven (7)
TENANT. (Sec. 56, Republic Act No. with LARGE landho
hectares of it consist of “other
1199) proceeding to MEDIUM
agricultural lands.” Daez vs.
landholdings under t
VIII — AWARD CEILING CA, Ibid)
schedules:
The share-tenant/ agricultural lessee who Right of Retention by Landowners
a) Landholdings
is already cultivating a landholding with an area under Presidential Decree No. 27.
hectares up to 50
of FIVE (5) HECTARES or more or Supplemental Guideline A.O. No.
begin on the four
ofsufficient size to make him and member of 04, Series of 1991).
effectivity of this A
his immediate farm household fully
The policy statements are as completed within
occupied in its cultivation is prohibited to
follows: and,
CONTRACT TO WORK at the same time to
two or more separate holdings belonging to a. Landowners covered by PD b) Landholdings
different landholders WITHOUT THE 27 are entitled to retain SEVEN RETENTION LIMI
KNOWLEDGE AND CONSENT OF THE hectares, except those whose hectares, to begin
LANDOWNER/AGRICULTURAL LESSOR entire tenanted rice and corn year from effectivi
(Par. 1, Sec. 24, Republic Act No. 1199) lands are subject to acquisition and to be complete
and distribution under OLT. years.
IX — PAYMENT FOR THE COST OF THE
LAND AN OWNER MAY NOT LANDS NOT COVERED
RETAIN UNDER THE
In the exercise of RIGHT OF PRE- 1. Those which are no
FOLLOWING CASES:
EMPTION by the agricultural lessee-tenant, he agriculture or thos
must EITHER TENDER PAYMENT OF, OR a) If he, as of October 21, classified as min
PRESENT A CERTIFICATE FROM THE LBP 1972, owned more than 24 residential, com
that it shall make payment under Section 80 of hectares of tenanted rice industrial lands. (S
Republic Act No. 3844 (10% CASH and 90% in or corn lands; or 6657);
six percent, tax free, redeemable bonds issued
b) By virtue of LOI 474, if he, 2. Those which have be
by the LBP.) If the landowner refuses to
as of 21 October 1972, and approved
accept TENDER or PRESENTMENT, the
owns less than 24 AGRICULTURAL
agricultural lessee may CONSIGN it
hectares of tenanted rice 15, 1988. (DOJ Op
in COURT, (Sec. 11, Republic Act No. 3844 as
but additionally owns the S. 1990)
amended by Republic Act No. 6389.
following =
The REDEMPTION PRICE shall be the 3. Those
· Other agricultural
REASONABLE PRICE OF THE LAND at the are EXEMPT purs
land of more than seven 10, RA 6657.
time of sale. (Sec. 12, Republic Act No. 3844
hectares, whether
as amended by Republic Act No. 6389) 4. Those
tenanted or not, whether
are devoted
cultivated or not, and
X — TRANSFERABILITY OF swine or livestoc
regardless of the income
of June 15, 1988 p
derived therefrom; or
Supreme Court ru
LANDHOLDING
· Land used for Farms vs. The Ho
commercial, industrial, of Agrarian Reform
1. Sale, Alienation or Transfer of the legal
residential or other urban 51);
possession of the landholding
purposes, from which he
2. Extinguishment of Agricultural Leasehold 5. Fishponds and p
derives adequate income
Relations (Sec. 8, RA 3844) exempted pursuan
to support himself and his
7881, and its
family.
A. ABANDONMENT of the landholding Administrative Or
without the knowledge of the agricultural b. Landowners who filed their Series of 1995;
lessor. (Teodoro vs. Macaraeg, 27 SCRA 7 application for retention
(1969) To constitute abandonment there BEFORE 27 August 1985, the 6. Those which are ret
must be an absolute relinquishment of the deadline set by Administrative landowners;
premises of the tenant. This "overt act" Order No. 1, Series of 1985,
7. Those lands or po
must be coupled with his intention to do so may retain not more than
under the cover
 "which is carried into effect." (Philippine seven hectares of their 407 but found to b
Labor and Social Legislation, Martin, 70 landholding covered by PD 27 suitable for agr
Ed. Pp. 405-406). Abandonment to validly regardless of whether or not therefore could n
terminate tenancy relationship is they complied with LOI Nos. appropriate valuatio
characterized by: 41, 45, and 52. as determined by D
8. Those lands d
(a) an INTENT to ABANDON, and Landowners who filed their
Presidential Proc
application AFTER 27 August
(b) an OVERT ACT to carry out such certain uses
1985 but complied with the
intention agricultural.
requirement of LOI No. 41, 45
Rules and Procedures G
There must be, therefore, NO and 52 shall likewise be
Exercise of Retention
ANIMUS REVERTENDI on the part of entitled to such a seven-
Landowners and Award
the tenant.(Labor, Agrarian and Social hectare retention area.
under Sec. 6 of RA 66
Legislation, Montemayor, 2nd Ed.,
However, landowners who 11, Series of 1990; and A
1968, pp. 54-55)
filed their application for 2003)
B. VOLUNTARY SURRENDER of the retention AFTER the 27
A. Landowners whose
landholding by the agricultural lessee, August 1985 deadline and DID
are covered
written notice of which shall be served NOT COMPLY with the
may retain an a
three months in advance (Nisnisan, et al., requirements of LOI Nos. 41,
(5) hectares.
vs. CA, 294 SCRA 173 (1998). 45, and 52 shall only be
entitled to a maximum of five In addition,
As a mode of extinguishing tenancy
(5) hectares as retention children, (legitimat
relationship it connotes a decision in the
area. or adopted, may b
part of the tenant to return the possession
three (3)
of the landholding and relinquish his right c. A landowner WHO HAS DIED
as P
as tenant thereon uninfluenced by any must have manifested during
BENEFICIARY pro
compelling factor, coming particularly from his lifetime his intention to
the landholder. For surrender to be valid, exercise his right of 1. That the child
there must be (a) an intention to abandon, retention prior to 23 15 years of ag
and (b) an external act or an omission to AUGUST 1990 (The finality of 1988 (RA 665
act, by which such intention is carried out the Supreme Court decision in and
into effect. When a tenant voluntarily yields the case "Association of Small
2. The child w
the land, he terminates the tenancy Landowners of the Philippines,
tilling the lan
relationship by his unilateral act. (Anacleto Inc. et al. vs. Honorable
managing th
Inson vs. Planas de Asis, et al., CA GR Secretary of Agrarian Reform)
from June 15,
No. Sp-01769, October 11, 1974) toallow his heirs to now
filing of the a
exercise such right under these
NOTE: SUBLEASING by the agricultural retention and/o
Guidelines. Said heirs must
lessee is also a ground for the extinguishments of acquisition
show proof of the original
of Agricultural Leasehold Relations. (Par. 2, under CARP.
landowner's intention.
Sec. 27, Republic Act No. 3844)
Retention of husband a
The heirs may also
XI — EVIDENCE OF RIGHT/TITLE OVER
exercise the original 1. For marriages covere
THE LANDHOLDING.
landowner's right of retention if Civil Code, the
AGRICULTURAL LEASE-HOLD CONTRACT they can prove that the owns only
IN GENERAL. — decedent HAD NO PROPERTIES may
KNOWLEDGE of OLT of five (5) hectares
— The agricultural lessor and
coverage over the subject is an agree
theagricultural lessee shall
property. the JUDICIAL S
be FREE to ENTERinto any kind
OF PROPERTIES
of TERMS, CONDITIONS orSTIPULATIONS in The BENEFICIARIES of
either or both o
a LEASEHOLD CONTRACT as long as Presidential Decree No. 27 are
landowners in the
they are not contrary to LAW, MORALS OR TENANT-FARMERS, thus:
rights (capita
PUBLIC POLICY. (Sec. 15, Republic Act No.
“This shall apply to paraphernal), they
3844).
TENANT-FARMERS of not more than five
Except in case PRIVATE AGRICULTURAL each from thei
of mistake, violence,intimidation, undue LANDS PRIMARILY landholdings. In
influence, or fraud, an AGRICULTURAL DEVOTED TO RICE OR however, shall the
CONTRACT reduced in writing and CORN under a SYSTEM OF of such a couple
registered as hereinafter provided SHALL BE SHARE-CROP or LEASE- hectares, and
CONCLUSIVE BETWEEN THE TENANCY, whether classified
CONTRACTING PARTIES, if not as landed estate or not. (Par. 2. For marriages

DENOUNCED OR IMPUGNED WITHIN 5, Presidential Decree No. 27) the New Family C

THIRTY DAYS AFTER REGISTRATION. (Sec. 3, 1988), a husb

17, Republic Act No. 3844) “The tenant-farmers, capital property a

whether in land classified as owning

XII — MODES OF TRANSFER OF THE LAND landed estate or not shall be property may reta
TO THE TENANT OR BENEFICIARY DEEMED OWNER of a portion than five (5) he
constituting a family-size farm provided they
The landowner-agricultural lessor can
of FIVE (5) hectares if not JUDICIAL SPER
FREELY AND VOLUNTARILY TRANSFER the
irrigated and THREE (3) PROPERTIES prio
landholding to the agricultural lessor by way
HECTARES IF the marriage. In th
of:
IRRIGATED. (Par. 6, such an agre
1. Sale Presidential Decree No. 27) properties (capital,
and conjugal)
2. Donation
The tenant shall pay for THE considered held
3. Succession — the agricultural lessee as COST OF THE LAND, community.
DEVISEE to the testator’s free portion in includinginterest of six (6)
QUALIFIED BEN
the will. percent per annum in
— The lands covered b
FIFTEEN (15) YEARS of
However, the limitation imposed by law on shall be distributed a
fifteen (15) equal annual
his right to acquire must be observed, i.e. possible to landless
amortizations.
Legal prohibition on the acquisition of property. the same barangay,
absence thereof, landle
By operation of law, the agricultural-lessee NOTE: The period is extended to
of the same municip
can acquire ownership of the subject twenty (20) years equal annual
following order of priori
landholding by the exercise of the following amortizations under Sec. 6, E.O.
rights. 228 of July 17, 1987 by Pres. a) agricultural lessees
Corazon C. Aquino. tenants;
1. Right of Pre-emption; and
The TITLE to the land b) regular farmworkers;
2. Right of Redemption
owned by the tenant shall
c) seasonal farmworker
XIII — CONSIDERATION FOR THE USE OF not be transferable except
VALUE OF THE LAND. BY HEREDITARY d) other farmworkers;
SUCCESSION or TO THE
Consideration for the Lease of e) actual tillers or occup
GOVERNMENT in accordance
Agricultural lands: lands;
with this Decree, the Code of
1. Not more than 25 per centum of the Agrarian Reform and other f) collectives or coope
average normal harvest during the three existing laws and above beneficiaries
agricultural years immediately preceding regulations.
g) others directly wo
the date the leasehold was established. NOTE: Sec. 6, EO 228 provides,
land.
"Ownership of lands acquired by
2. Deductible items:
the farmer-beneficiary may be (Par. 1, Sec. 22, RA
a. Seedlings transferred after full payment of
The children of landow
amortizations."
b. Cost of Harvesting qualified under Sec. 6
The EMANCIPATION shall be given prefer
c. Cost of Threshing
PATENT awarded to the distribution of the la
d. Cost of Loading TENANT-BENEFICIARY parents; And, further,
CREATES a VESTED RIGHT tenant-tillers in the land
e. Cost of Hauling
OF ABSOLUTE be ejected or remove
f. Cost of Processing OWNERSHIP in the (Par. 2, Sec. 22, RA 665
landholding – "a right which
3. If the land is cultivated for a period of less “Distribution Lim
has
than three years, the initial consideration is qualified beneficiary ma
become fixed and established
based on the average normal than three (3) hectares
and is no longer open to
harvest during the preceding years when land.” (Sec. 23, RA 6657
doubt or controversy."
the land was actually cultivated or on the
(Pagtalunan vs. Tamayo, 183 “Award C
harvest of the first year if newly cultivated,
SCRA 252) Beneficiaries. — Bene
and the harvest is normal.
be awarded an
The Mode of Transfer of
4. After the lapse of the first three normal EXCEEDING THR
Lands to Tenant-Beneficiaries under
harvests, the final consideration shall be HECTARES which m
Presidential Decree No. 27 are the
based on the average normal harvest CONTIGUOUS tract
following:
during these three preceding agricultural or SEVERAL PARCE
years. 1. OPERATION LAND cumulated up to the pres
TRANSFER (OLT) under PD limits.” (Sec. 25, RA 665
5. In the absence of any agreement as to
27 and EO 228; and
the rental, the maximum allowed shall be Payment by Ben
applied. Operation Land Transfer is Lands awarded pursuan
the ORDERLY and shall be paid for the be
6. If Capital Improvement is introduced not
SYSTEMATIC TRANSFER of the LBP in thirty
by the lessee to increase productivity, the
land from the landowner to the amortizations at six perc
rentals shall be increased proportionally to
tenant-farmer under annum. The payments
the consequent increase in production due
 to the improvement. Presidential Decree No. 27. three (3) years after th
be at reduced a
7. In case of Disagreement the Court shall 2. DIRECT PAYMENT SCHEME
established by the PAR
determine the reasonable increase in (DPS). — The landowner and
That the first five (5) ann
rental. the tenant-beneficiary can
may not be more than
AGREE on the DIRECT SALE
8. Capital improvement refers to any (5%) of the value of the
terms and conditions which are
permanent and tangible improvement on production as establis
not onerous to the tenant-
the land that will result in increased DAR. Should the sche
beneficiary.
productivity. If done with the consent of the payments after the fifth
lessee, then the lease rental shall be The value of the land shall ten percent (10%) of the
increased proportionately. be equivalent to two and one production and the failu
half (2-1/2) times accordingly is not d
the AVERAGE HARVEST OF beneficiary’s fault, the
THREE NORMAL CROP reduce the interest rate
YEARS IMMEDIATELY principal obligation to
PRECEDING THE repayment affordable.
PROMULGATION OF THIS
The LBP shall ha
DECREE.
way of mortgage on the
to the beneficiary; and t
may be foreclosed by
non-payment of an aggre
(3) annual amortization
shall advise the DA
proceedings and the
subsequently award
landholding to othe
beneficiaries. A benef
land, as provided here
foreclosed shall the
permanently disqual
becoming a beneficiar
Act. (Sec. 26, RA 6657)

Transferability o
Lands. - lands a
beneficiaries under this
be sold, transferred
except through
succession, or to the go
to the LBP, or to ot
beneficiaries for a perio
years; Provided, howev
children or the spo
transferor shall have
repurchase the land
government or LBP with
of two (2) years. Due
availability of the land s
by the LBP to he Baran
Reform Committee (BA
barangay where the
situated. The Provin
Reform Coordinating
(PARCCOM), as here
shall, in turn, be given
thereof by the BARC.

If the land has not

paid by the beneficiary,
the land may be tr
conveyed, with prior ap
DAR, to any heir of the
to any other beneficiar
condition for such
conveyance, shall cultiv
himself. Failing complia
the land shall be trans
LBP which shall give due
availability of the land in
specified in the
preceding paragraph.

In the event of suc

the LBP, the latter shal
the beneficiary in one l
the amounts the latter
paid, together with th
improvements he has m
land. (Sec. 27, RA 6657)

The TITLES award

beneficiaries under the C
following:

1. Free Patent for Pub

and Disposable Lan

2. CERTIFICATE
OWNERSHIP AW
for Resettlement Si

3. STEWARDSHIP CO
Lands cove
INTEGRATED
FORESTRY PROG
and

4. CLOA for Privat

Lands.

The MODES OF
LANDS for distribution u

a. COMPULSORY A
(CA) (Sec. 16, RA 6

b. VOLUNTARY OFFE
(VOS) (Sec. 19, RA

c. VOLUNTARY LAND T
PAYMENT SCHEM
(Sec. 20, RA 6657)

Factors/Criteria con
determining just compen

1. Cost of Acqui
land;

2. Current V
properties;

3. Nature of the land;

4. Actual use;

5. Income;

6. Sworn valua
landowner;

7. Tax Declaration;

8. Assessment
government asses

9. The social and econo

contributed by the f

10. Non-payment

HELP CENTER CONTACT INFORMATION
How to Use the ERC Legal Information Department of Agrarian Reform
Archive Elliptical Road, Diliman
Quezon City, Philippines
Tel. No.: (632) 928-7031 to 39
loans secured
government
institution on the
Basic Formula for the
lands covered by VOS
LV = (CNI x 0.6) + (CS x
(MV x 0.1)
where:
LV = Land Value
CNI = Capitalized Net In
CS = Comparable Sales
MV = Market Value per
The above formula shall
factors are present, rele
applicable.
A.1. When the C
present and CNI and M
the formula shall be:
LV = (CNI x 0.9) + (MV
A.2. When the CNI facto
present and CS and MV
the formula shall be:
LV = (CS x 0.9) + (MV x
A.3. When both CS an
present and only MV
theformula shall be:
LV = (MV x 2)
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