Agrarian Law Atty.
Joyrich Golangco
Chapter 2 and 3 of Agrarian Law by Atty. Ungos
CHAPTER 2
THE TENANT EMANCIPATION LAW
Presidential Decree No. 27
[As Amended by Executive Order No. 228]
Applicability of the Law
ü It supplements the CARL.
ü It applies ONLY to PRIVATE AGRICULTURAL
LANDS primarily devoted to rice and corn
under share tenancy or lease-tenancy.
Transfer of Lands to Tenants
Presidential Decree No. 27
G 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 5 hectares if not
irrigated and 3 hectares if irrigated.
Section 1 of Executive Order No. 228
G All qualified farmer beneficiaries are now deemed full
owners as of October 21, 1972 of the land they acquired
by virtue of Presidential Decree No. 27.
“Shall be deemed owner”/ “Are now deemed full
owners”
à 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 in violation of the
constitutional injunction against taking of private
property without just compensation.
Ê Therefore, notwithstanding such phrase, the
title and ownership over the land will be
transferred to the beneficiaries only upon full
payment of the just compensation to the
landowner.
The tenant If NOT
Size of Land 5 hectares
farmer is irrigated
to be entitled to
transferred
to the
tenant
If Irrigates 3 hectares
farmer
1
Stages of Land
Transfer
Issuance of a
Certificate of Land
Transfer (CLT) to the
The land transfer farmer-beneficiary
under PD 27 is
effected in two
stages: Issuance of
Emancipation Patent
(EP)
Significance of the Certificate of Land Transfer
Levardo v. Yatco: The CLT does not vest upon the tenant-
beneficiary ownership over the land. It merely QUALIFIES
the tenant-beneficiary to possess the land and comply
with certain conditions preparatory to ownership.
N If the tenant-beneficiary complies with the
conditions, he is issued an Emancipation
Patent.
Significance of an Emancipation Patent
Maylem v. Ellano: The EP vests upon the farmer-
beneficiary absolute ownership over the landholding,
and it constitutes conclusive authority for the issuance of
an original or transfer certificate of title in his name.
Indefeasibility of EPs
d EPs are titles brought under the operation of the
Torrens System. Hence, they are conferred with the same
indefeasibility and security as provided for by
Presidential Decree No. 1529, as amended by Republic
Act No. 6732.
d Emancipation patents become indefeasible and
imprescriptible after one year from its registration with
the Office of the Registry of Deeds, subject to the
conditions, limitations and qualifications under the CARL
and the Property Registration Decree, and other
pertinent laws. This is provided for in Section 24 of the
CARL.
Section 24. Award to Beneficiaries. — The rights and
responsibilities of the beneficiaries shall commence from
their receipt of a duly registered emancipation patent or
certificate of land ownership award and their actual
physical possession of the awarded land. Such award
shall be completed in not more than one hundred eighty
(180) days from the date of registration of the title in the
name of the Republic of the Philippines: Provided, That
the emancipation patents, the certificates of land
ownership award, and other titles issued under any
agrarian reform program shall be indefeasible and
imprescriptible after one (1) year from its registration with
the Office of the Registry of Deeds, subject to the
conditions, limitations and qualifications of this Act, the
property registration decree, and other pertinent laws.
The emancipation patents or the certificates of land
ownership award being titles brought under the
K. Ann Uy ˜ C. Santiago ˜ C. Aurea
Agrarian Law Atty. Joyrich Golangco 2

operation of the torrens system, are conferred with the

same indefeasibility and security afforded to all titles
under the said system, as provided for by Presidential
Decree No. 1529, as amended by Republic Act No. 6732.

It is the ministerial duty of the Registry of Deeds to register
the title of the land in the name of the Republic of the
Philippines, after the Land Bank of the Philippines (LBP)
has certified that the necessary deposit in the name of
the landowner constituting full payment in cash or in
bond with due notice to the landowner and the
registration of the certificate of land ownership award
issued to the beneficiaries, and to cancel previous titles
pertaining thereto.
Identified and qualified agrarian reform beneficiaries,
based on Section 22 of Republic Act No. 6657, as
amended, shall have usufructuary rights over the
awarded land as soon as the DAR takes possession of
such land, and such right shall not be diminished even
pending the awarding of the emancipation patent or
the certificate of land ownership award.
All cases involving the cancellation of registered
emancipation patents, certificates of land ownership
award, and other titles issued under any agrarian reform
program are within the exclusive and original jurisdiction
of the Secretary of the DAR.
Grounds for the Cancellation of Emancipation Patents
(a) Abandonment of the land;
(b) Neglect or misuse of land;
(c) Failure to pay 3 annual amortizations;
(d) Misuse or diversion of financial and support
services;
(e) Sale, transfer or conveyance of the right to use
the land; and
(f) Illegal conversion of the land
The payment that
Interest at
Total
the rate
should be made
Costs of by the farmer-
the Land
of 6% per
beneficary or his
annum
heirs
Term of payment: For 20 years in 20 equal annual
amortizations
à The EP will be issued to the farmer-beneficiary after full
payment of the Amortizations.
Section 6 of EO 228 provides that:
Sec. 6. The total costs of the land including interest at the
rate of six percent (6%) per annum with a two percent
(2%) interest rebate for amortizations paid on time, shall
be paid by the farmer-beneficiary or his heirs to the Land
Bank over a period up to twenty (20) years in twenty (20)
equal annual amortizations. Lands already valued and
financed by the Land Bank are likewise extended a 20-
year period of payment of twenty (20) equal annual
amortizations. However, the farmer-beneficiary if he so
elects, may pay in full before the twentieth year or may
request the Land Bank to structure a repayment period
of less than twenty (20) years if the amount to be
financed and the corresponding annual obligations are
well within the farmer's capacity to meet. Ownership of
lands acquired by the farmer-beneficiary may be
transferred after full payment of amortizations.

FAILURE on the
Jurisdiction over Cancellation of EPs
part of the farmer-
G All cases involving the cancellation of registered the Land Bank to
beneficiary to pay
emancipation patents are within and original jurisdiction FORECLOSE the
THREE ANNUAL
of the Secretary of the Department of Agrarian Reform. mortgage
amortizations shall
cause
Tenant-beneficiary cannot sell or transfer ownership of
the land
Ö The tenant-beneficiary cannot sell or transfer
ownership of the land acquired under the Tenant
Emancipation Law, except to the Government or by
hereditary succession.
by PAYING the
Presidential Decree No. 27 expressly provides The tenant- Land Bank ALL
that: farmer, or any within a period UNPAID
of his of TWO years amortizations
“Title to land acquired pursuant to this Decree on the land
compulsory from its
or the Land Reform program of the heirs MAY LIFT registration with interest
Government shall not be transferable except the foreclosure thereon of 6%
by hereditary succession or to the Government per annum
in accordance with the provisions of this
decree, the Code of Agrarian Reforms and
other existing laws and regulations.”

The Tenant-farmer will Pay the Land Bank

K. Ann Uy ˜ C. Santiago ˜ C. Aurea

Agrarian Law Atty. Joyrich Golangco 3

the CARL
If the tenant-farmer or any
of his compulsory heirs does
Presidential Decree No. CARL
not take steps to lift the
27
foreclosure within the 2-
If the landowner has
year period, OWNERSHIP
already exercised his
will be transferred to the
right of retention in PD 27
Land Bank.
he CAN NO longer
exercise retention right
under the CARL
Thereafter, the Land Bank not However, he can keep
later then 3 months after its the 7-hectare retention
acquisition of the land, shall limit granted under PD
SELL the foreclosed land. 27.
If the landowner chooses
to retain five hectares
under CARL, the 7
It will be sold to any hectares previously
interested landless farmer retained by him under PD
duly certified to as a bona fide 27 shall be placed
landless farmer by the DAR of immediately under the
the barangay or the two coverage of the CARL.
closest barangays where the
land is situated.
Jurisdiction over Retention or Exemption Issues
Payment of Just Compensation to Landowner G Cognizable by the Secretary of the DAR
Reason: Because they pertain to administrative
The just compensation is payable to the landowner implementation of agrarian law
through any of the following modes, at the option of the
landowner:
(a) DIRECT PAYMENT to the landowner by the
farmer-beneficiaries, in cash or in kind, on terms CHAPTER 3
to be mutually agreed upon by the THE CODE OF AGRARIAN REFORMS
beneficiaries and landowners and subject to
the approval of the DAR; REPUBLIC ACT NO. 3844
(b) PAYMENT BY THE LAND BANK WITH 10% As amended by PD Nos. 251, 444, 1039, and 1817. RA
PAYABLE IN CASH IMMEDIATELY and the Nos. 6389, 6557, 7907 and 9700.
balance payable in form of Land Bank bonds
over a 10-year period, with 1/10 of the face History
value maturing every year until the 10th year; o Initially denominated as Agricultural Land
and Reform Code –– was renamed by RA No. 6389.
(c) OTHER MODES OF PAYMENT as may be o Administrative bill submitted by Pres. Diosdado
prescribed or approved by the Presidential Macapagal for enactment by the 5th Congress
Agrarian Reform Council. of PH.
o Signed into law: August 8, 1963
’ Lease rentals paid to the landowner by the farmer
beneficiary after October 21, 1972 is considered as Objective
advance payment for the land. Create a system of owner-cultivatorship and economic
family-size farm as basis of Philippine agriculture

Retention Right of Landowner
Ü Under PD 27, the landowner is entitled to retain an
area of not more than SEVEN HECTARES, if he is
cultivating or will cultivate it. Thus:
“In all cases, the landowner may retain an area
of not more than seven hectares is such
landowner is cultivating such area or will now
cultivate it.”
Ö Personal cultivation by the Landowner is
NOT REQUIRED – cultivation can be done
indirectly through labor administration.
Retention right under PD 27 vis-à-vis retention right under
NB: CARL did not repeal the CAR. CAR supplements
CARL.
Salient features of CAR:
1. Abolished the share tenancy system and
replaced it with agricultural leasehold
2. Established bill of rights for agricultural workers
3. Established DAR as the machinery for the
acquisition and distribution of agricultural land
4. Established LB as financial arm of Agrarian
Reform program
CAR Abolished Share Tenancy and Arrangements were
Automatically Converted to Lease-hold.

K. Ann Uy ˜ C. Santiago ˜ C. Aurea

Agrarian Law Atty. Joyrich Golangco 4

Share Tenancy Agricultural Notes on basis of rentals:

Leasehold ) The rental for rice land and lands devoted to other
Where 2 persons agree on a joint Farmer crops shall be not more than the equivalent of 25%
undertaking for agricultural cultivates the of the average normal harvest
production wherein one party land belonging ) If there are no normal harvest; rental is based on the
furnishes the land and the other to or possessed est. normal harvest during 3 years immediately
his labor, with either or both, by another with preceding the date of leasehold was established
contributing any one or several of the latter’s after deducting production costs.
the items of production, the consent for a ) If cultivated for less than 3 years, initial rental shall
tenant cultivating his immediate price certain in be average of normal harvest. If still no normal
farm household and the produce money or in harvest, rental shall be based on:
thereof to be divide between the produce or i. Estimated normal harvest during the
landholder and the tenant. both. preceding year when the land was actually
cultivated; or
Extent of application of the leasehold principles under ii. Harvest of the first year in the case of newly
CAR cultivated lands.
Leasehold relationships can exist under the ff: ) Final consideration: based on average normal
a) In case the area retained by the LO is harvest during 3 preceding years.
tenanted;
b) In case the farmer-beneficiary leases the land 2. Stipulations requiring the lessee to pay an
awarded to him to another person; amount in excess of the fair rental value for the
c) In case the farmer-beneficiary leases the land use of the lessor’s work animals or farm
awarded to him back to the former owner of implements
the land; or NB: FRV for work animals or farm implements
d) In case the land awarded to a farmer’s shall not exceed 5% of the gross harvest for the
cooperative is leased to agricultural work animal/s and 5% for implements.
corporations 3. Stipulations requiring the lessee to rent work
Under the present set-up, therefore, the AR beneficiaries animals or to hire implements from lessor/third
can become lessors of agricultural land. However, the persons
leasehold principles under CAR will only apply to 4. Stipulations requiring the lessee to make use of
situations where the lessor is the LO, to wit: any store or services operated by the
i. Farmers whose tenancy relations were lessor/third person
automatically converted to leasehold by virtue 5. Stipulations requiring the lessee to render any
of CAR; and service other than his duties and obligations as
ii. Tenanted lands that were retained by LO lessee, with or without compensation; or
which were automatically converted to 6. Stipulations requiring the lessee to answer for
leasehold by virtue of CARL. any fine, deductions and/or assessments
If the lessor is the farmer-beneficiary, the leasehold 7. Stipulations requiring the lessee to accept a
relationship will be governed by the Lease Contract and loan or to make payment therefor in kind.
by CARL.
Mode of Payment of Rental

Form of Lease Contract

š No particular form is required to establish Paid within a
leasehold relation (can be oral/written) reasonable time
In MONEY
š Lessor need not be owner of the land; he can be from threshing or
usufructuary or a legal possessor processing
š Should it be in writing, the contract must be:
a) Drawn in quadruplicate in a language or Paid immediately
dialect known to lessee; In PRODUCE after threshing or
b) Signed or thumb-marked by both before 2 processing
witnesses to be chosen by each party;
c) If lessee does not know how to read, contents
shall be read and explained by witness;
d) Acknowledged before the municipal court of
the municipality where land is; Term of Lease
e) Registered with municipal treasurer who shall š Indefinite (until terminated for cause)
be the custodian of agricultural lease š Because lessees-farmers are entitled to security
contracts –– kept and recorded in the Registry of tenure.
of Agricultural Leasehold Contracts
Expiration of Lease Contract ≠ Terminate Leasehold
Terms and Condition of Lease Contract Relation
Ff stipulations are considered contrary to law, morals or Agricultural leasehold relationship not being an ordinary
public policy: contractual relation will not terminate the LH relation
1. Stipulations requiring the lessee to pay despite contract’s expiration because again, lessees-
excessive rental farmers are entitled to security of tenure. Section 10 of
CAR states:

K. Ann Uy ˜ C. Santiago ˜ C. Aurea

Agrarian Law Atty. Joyrich Golangco
Section 10. Agricultural Leasehold Relation Not
Extinguished by Expiration of Period, etc. - The
agricultural leasehold relation under this Code shall not
be extinguished by mere expiration of the term or period
in a leasehold contract nor by the sale, alienation or
transfer of the legal possession of the landholding. In
case the agricultural lessor sells, alienates or transfers the
legal possession of the landholding, the purchaser or
transferee thereof shall be subrogated to the rights and
substituted to the obligations of the agricultural lessor.
Neither will the expiration of the contract authorize the
LO to increase the rentals unless the LO introduces
capital improvements to increase its productivity in
which case, the rental may be increased
proportionately to the consequent increase in
production due to said improvements.
Transfer of Ownership of Land ≠ Terminate Leasehold
Relation
Buyer/transferee becomes the lessor
Death or Physical Incapacity of the Lessee ≠ Terminate
Leasehold Relation
Lessor must choose the successor from among the ff if
they are willing to personally cultivate the land:
a. Surviving spouse;
b. Eldest direct descendant by consanguinity;
c. Next eldest descendant/s in the order of their
age
If none of the above exists, or if the above persons are
not willing to cultivate the land, the leasehold relations
are extinguished. Section 9 provides:
Section 9. Agricultural Leasehold Relation Not
Extinguished by Death or Incapacity of the Parties - In
case of death or permanent incapacity of the
agricultural lessee to work his landholding, the leasehold
shall continue between the agricultural lessor and the
person who can cultivate the landholding personally,
chosen by the agricultural lessor within one month from
such death or permanent incapacity, from among the
following: (a) the surviving spouse; (b) the eldest direct
descendant by consanguinity; or (c) the next eldest
descendant or descendants in the order of their age:
Provided, That in case the death or permanent
incapacity of the agricultural lessee occurs during the
agricultural year, such choice shall be exercised at the
end of that agricultural year: Provided, further, That in
the event the agricultural lessor fails to exercise his
choice within the periods herein provided, the priority
shall be in accordance with the order herein established.
In case of death or permanent incapacity of the
agricultural lessor, the leasehold shall bind his legal heirs.
When Leasehold is Extinguished
1. Abandonment of the landholding without the
knowledge of lessor;
2. Voluntary surrender of the landholding by
lessee;
5
3. Absence of persons under Sec. 9 to succeed to
the lessee in the event of the latter’s death or
incapacity
Elements to Constitute Abandonment of Landholding
1. Intent to abandon; and
2. Actual act of abandonment; i.e., the lessee
must actually stop occupying and working on
the land for a substantial period of time.
Grounds for Extinguishment of the Landholding
a) Surrender of the landholding must be voluntary
on the part of the farmer-lessee, i.e., the
decision to relinquish the leasehold relations
must not be influenced by any compelling
factor from the LO
b) Farmer lessee must serve 3mos advance notice
Causes for Termination of Leasehold by Agricultural
Lessee
a) Cruel, inhumane or offensive, treatment of the
lessee or any member of his immediate farm
household by the lessor;
b) Non-compliance on the part of the lessor with
any of his obligations under the CAR/lease
contract;
c) Compulsion of the agricultural lessee or any
member of his immediate farm household to
render any service not in any way connected
with the farm work or even without compulsion
if no compensation is paid;
d) Commission of a crime by the lessor or his
representative against the agricultural lessee or
any member of his immediate farm household;
e) Voluntary surrender due to the circumstances
more advantageous to him and his family.
Grounds when Lessee may be Dispossessed of the
Landholding
a) Land has been declared by the appropriate
government agency to be suited for
residential, commercial, industrial or some
other urban purposes;
b) Failure of the lessee to substantially comply
with any of the terms and conditions of the
lease contract/any of the CAR’s provisions;
c) Lessee planted crops or used the landholding
for a purpose other than what had been
previously agreed upon;
d) Lessee failed to adopt proven farm practices
as determined under par. 3, section 29 of CAR;
e) The land or other substantial permanent
improvements is substantially damaged or
destroyed or has unreasonably deteriorated
thru the fault and negligence of the lessee;
f) Lessee does not pay lease rental when due;
g) Lessee employed a sub-lessee;
Dispossession on above-mentioned ground is NOT
AUTOMATIC. The LO-lessor shall file the corresponding
petition with DAR adjudication Board and prove the
existence of the grounds.
K. Ann Uy ˜ C. Santiago ˜ C. Aurea
Agrarian Law Atty. Joyrich Golangco 6

RIGHTS OF THE AGRICULTURAL LESSOR

Obligations of lessor Obligations of lessee
•Keep the agricultural •Cultivate and take
lessee in peaceful care of the farm,
possession and growing crops, and
cultivation of his other improvements on
landholding the landholding as a
•Keep intact such good father of the
permanent useful family;
improvements existing •Inform the lessor within
on the landholding at a reasonable time of
the start of the any trespass committed
leasehold relation. by third persons;
•Take reasonable care
of work animals amd
farm implements
delivered to him;
•Keep his farm and
growing crops
attended to during the
work season;
•Notify the lessor at least
3 days before the date
of harvesting or
threshing;
•Pay the rental when
due.
(1) To inspect and observe the extent of compliance
with the terms and conditions of the lease
contract;
(2) To propose a change in the use of the
landholding to other agricultural purposes, or in
the kind of crops to be planted:
Provided, That in case of disagreement as to the
proposed change, the same shall be settled by
the Court according to the best interest of the
parties concerned: Provided, further, That in no
case shall an agricultural lessee be ejected as a
consequence of the conversion of the land to
some other agricultural purpose or because of a
change in the crop to be planted;
(3) To require the agricultural lessee, taking into
consideration his financial capacity and the
credit facilities available to him, to adopt in his
farm proven farm practices necessary to the
conservation of the land, improvement of its
fertility and increase of its productivity:
Provided, That in case of disagreement as to
what proven farm practice the lessee shall
adopt, the same shall be settled by the Court
according to the best interest of the parties
concerned; and

A discussion in the case of Guevara vs. Santos says that:
"There is ample evidence showing that Herminigildo
Guevarra and Apolonio Javinia caused the death of
twenty eight (28) and six (6) coconut trees, respectively,
in their holdings. In the case of Guevarra, twenty-eight
(8) trees were destroyed when hay was heaped at the
base of the coconut trees and burned, and in the case
of Apolonio Javinia, he failed to exercise caution in
plowing his holding to prevent serious damage to the
coconut trees. As lessee-tenants defendants
Herminigildo Guevarra and Apolonio Javinia are
obliged to exercise the diligence of a good father of a
family to preserve the improvements existing in their
holdings. Herminigildo Guevarra while denying that he
actually burned the hay heaped at the base of twenty
eight (28) trees, admitted that at the time the hay was
burned he was away from his holding. He may not have
had any hand in the burning of the hay but certainly he
should be made accountable for depositing hay at the
base of the trees, an act which would not be done by a
reasonably careful father of a family. It does not require
great intelligence to perceive that hay is highly and
unpredictably inflammable and if heaped at the base
of young coconut tress could cause total destruction of
the trees.
On the part of Apolonio Javinia, knowing that young
coconut trees were growing in his holding, he plowed
too closely to the six (6) tress causing their death. As a
farmer of long standing he should have known that by
plowing too close to the base of the trees his plow would
inevitably cut the trees’ roots. He, therefore, failed to
exercise sufficient caution in his plowing." Virt
(4) To mortgage expected rentals.
The agricultural lessor can exercise the
aforementioned rights as long as it does not interfere
with the lessee’s peaceful possession of the landholding.
RIGHTS OF THE AGRICULTURAL LESSEE
(1) To have possession and peaceful enjoyment of
the land; 

(2) To manage and work on the land in a manner
and method of cultivation and harvest which
conform to proven farm practices;
(3) To mechanize all or any phase of his farm work;
and 

(4) To deal with millers and processors and attend to
the issuance of quedans and warehouse receipts
for the produce due him.
(5) To have a homelot within the land that he is
leasing
RIGHTS OF LESSEE TO BE IDEMNIFIED FOR HIS LABOR
The agricultural lessee surrenders, abandons, or is validly
ejected from his landholding, he is entitled to be
indemnified for:
(1) the cost and expenses incurred in the cultivation,
planting or harvesting and other expenses
incidental to the improvement of his crop
(2) for one-half of the necessary and useful
improvements made by him on the landholding:
which are tangible and have not yet lost their
utility at the time of surrender and/or
abandonment of the landholding

K. Ann Uy ˜ C. Santiago ˜ C. Aurea

Agrarian Law Atty. Joyrich Golangco
RIGHT OF PRE-EMPTION
The agricultural lessee has the preferential right to
buy the land actually cultivated by him under
reasonable terms and conditions.
Therefore, if the agricultural lessor decides to sell the
landholding, he should give notice to:
(1) DAR, and
(2) All the lessees affected
If the agricultural lessee agrees with the terms and
conditions of the sale:
(1) he must give written notice to the
agricultural lessor of his intention to exercise
his right of pre-emption, and
(2) thereafter, tender payment of or present a
guarantee certificate from the Land Bank
to the agricultural lessor.
If the lessor refuses to accept such tender or
presentment, he may consign it with the court.
Any dispute as to the reasonableness of the terms and
conditions: may be brought by the lessee or by the DAR
to the proper court.
SECTION 11. Lessee's Right of Pre-emption. — In case the
agricultural lessor decides to sell the landholding, the
agricultural lessee shall have the preferential right to buy
the same under reasonable terms and conditions:
Provided, That the entire landholding offered for sale
must be pre-empted by the Land Authority if the
landowner so desires, unless the majority of the lessees
object to such acquisition: Provided, further, That where
there are two or more agricultural lessees, each shall be
entitled to said preferential right only to the extent of the
area actually cultivated by him. The right of pre-emption
under this Section may be exercised within ninety days
from notice in writing which shall be served by the owner
on all lessees affected and the DAR.
"If the agricultural lessee agrees with the terms and
conditions of the sale, he must give notice in writing to
the agricultural lessor of his intention to exercise his right
of pre- emption within the balance of one hundred
eighty day's period still available to him, but in any case
not less than thirty days. He must either tender payment
of, or present a certificate from the land bank that it shall
make payment pursuant to section eighty of this Code
on, the price of the landholding to the agricultural lessor.
If the latter refuses to accept such tender or
presentment, he may consign it with the court.
"Any dispute as to the reasonableness of the terms and
conditions may be brought by the lessee or by the
Department of Agrarian Reform to the proper Court of
Agrarian Relations which shall decide the same within
sixty days from the date of the filing thereof: Provided,
That upon finality of the decision of the Court of Agrarian
Relations, the Land Bank shall pay to the agricultural
lessor the price fixed by the court within one hundred
twenty days: Provided, further, That in case the Land
Bank fails to pay within that period, the principal shall
earn an interest equivalent to the prime bank rate
existing at the time.
"Upon the filing of the corresponding petition or request
with the department or corresponding case in court by
7
the agricultural lessee or lessees, the said period of one
hundred and eighty days shall cease to run.
"Any petition or request for pre-emption shall be solved
within sixty days from the filing thereof; otherwise, the
said period shall start to run again."
The ROD will not register or issue a TCT without sworn
statement from the vendor (landowner) that he has
given the required notice to the lessee or that the land is
not covered by an agricultural lease as provided in Sec.
13 of CAR:
SECTION 13. Affidavit Required in Sale of Land Subject to
Right of Pre- emption. — No deed of sale of agricultural
land under cultivation by an agricultural lessee or lessees
shall be recorded in the Registry of Property unless
accompanied by an affidavit of the vendor that he has
given the written notice required in Section eleven of this
Chapter or that the land is not worked by an agricultural
lessee.
RIGHT OF REDEMPTION
If the land was sold to a 3rd person without the
knowledge of the agricultural lessee, the latter shall have
the right to redeem the same at a reasonable price and
consideration to the extent of the area actually
cultivated by him, by filing a petition or request for
redemption with the DAR within 180 days from
knowledge of the sale.
The redemption price shall be the reasonable price of
the land at the time of the sale. The DAR shall initiate,
while the Land Bank shall finance the redemption.
"Sec. 12. Lessee's right of Redemption. — In case the
landholding is sold to a third person without the
knowledge of the agricultural lessee, the latter shall have
the right to redeem the same at a reasonable price and
consideration: Provided, That where there are two or
more agricultural lessees, each shall be entitled to said
right of redemption only to the extent of the area
actually cultivated by him. The right of the redemption
under this Section may be exercised within one hundred
eighty days from notice in writing which shall be served
by the vendee on all lessees affected and the
Department of Agrarian Reform upon the registration of
the sale, and shall have priority over any other right of
legal redemption. The redemption price shall be the
reasonable price of the land at the time of the sale.
"Upon the filing of the corresponding petition or request
with the department or corresponding case in court by
the agricultural lessee or lessees, the said period of one
hundred and eighty days shall cease to run.
"Any petition or request for redemption shall be resolved
within sixty days from the filing thereof; otherwise, the
said period shall start to run again.
"The Department of Agrarian Reform shall initiate, while
the Land Bank shall finance, said redemption as in the
case of pre-emption."
RIGHTS OF AGRICUTURAL WORKERS
Agricultural workers are entitled to the same rights and
opportunities in life as industrial workers, hence, they are
entitled to the following rights:
(1) Right to self-organization; 

K. Ann Uy ˜ C. Santiago ˜ C. Aurea
Agrarian Law Atty. Joyrich Golangco
(2) Right to engage in concerted activities; 
 The exemption cannot be waives for the reason that it is
(3) Right to minimum wage; 
 intended to provide sustenance for the lessee and his
(4) Right to work for not more than eight hours; 
 family from one harvest to the next.
(5) Right to compensation for personal injuries,
death or illness; and 
 Case: Maniego v. Castello p. 175
(6) Right to security of tenure
ACTS WHICH THE AGRICULTURAL LESSOR IS FORBIDDEN TO
DO
(1) To dispossess the agricultural lessee of his
landholding without just cause
(2) To require the agricultural lessee to assume,
directly or indirectly, the payment of the taxes
or part thereof levied by the government on
the landholding;
(3) To require the agricultural lessee to assume,
directly or indirectly, any part of the rent,
"canon" or other consideration which the
agricultural lessor is under obligation to pay to
third persons for the use of the land;
(4) To deal with millers or processors without
written authorization of the lessee in cases
where the crop has to be sold in processed
form before payment of the rental; or
(5) To discourage, directly or indirectly, the
formation, maintenance or growth of unions or
organizations of agricultural lessees in his
landholding, or to initiate, dominate, assist or
interfere in the formation or administration of
any such union or organization.
ACTS WHICH THE AGRICULTURAL LESSEE IS FORBIDDEN TO
DO
(1) To contract to work additional landholdings
belonging to a different agricultural lessor and
(2) To employ a sub-lessee on his landholding
Purpose of the prohibition: to prevent agricultural lessee
from dissipating his labor and efforts in various
landholdings at the expense of the first agricultural lessor.
Agricultural leasehold is personal in character in the
sense that the agricultural lessee must personally work
and cultivate the landholdings.
ENFORCEABILITY OF LOANS OBTAINED BY AN
AGRICULTURAL LESSEE
To be enforceable, loans obtained by an agricultural
lessee should be:
(1) Written in a language or dialect known to the
agricultural lessee, and
(2) Signed or thumb-marked by the agricultural
lessee or his agent
PROPERTIES OF THE LESSEE THAT ARE EXEMPT FROM LIENS
OR EXECUTION
The following properties of the agricultural lessees
cannot be the subject of lien or execution:
(1) 25% of the entire produce of the land under
cultivation; and
(2) Work animals and farm implements, except
upon a judgement for its price, or upon a
judgment of foreclosure of a mortgage thereon
8
PRESCRIPTION OF ACTION
The prescriptive period for filing an action to enforce the
rights and obligations under the Code of Agrarian
Reforms is 3 years reckoned from the time the cause of
action accrued.
THE DEPARTMENT OF AGRARIAN REFORM
The Agricultural Land Reform Code created the Land
Authority as the implementing arm of the agrarian
reform program. The Code of Agrarian Reforms
renamed the Land Authority as DAR.
DAR is tasked with:
a. Implement laws, programs and policies for the
acquisition and distribution of all agricultural
lands as provided by laws;
b. Resettle landless farmers and farmworkers in
government-owned agricultural estates which
shall be distributed to them as provided by law;
c. Recommend and provide incentives for
voluntary sharing of lands by owners of
agricultural lands;
d. Acquire, determine the value, subdivide into
family-size farms, develop and distribute to
qualified tillers, actual occupants and displaced
urban poor, private agricultural lands regardless
of area and crops planted;
e. Administer and dispose of, under a settlement
scheme, all portions of the public domain
declared as alienable and disposable lands for
speedy distribution to and development by
deserving and qualified persons who do not own
any land and under such terms and conditions as
the Department may prescribe, giving priority to
qualified and deserving farmers in the province
where such lands are located;
f. Provide free legal assistance to farmers covered
by agrarian reform and expedite the resolution of
agrarian conflicts and land tenure problems
either through conciliatory or adversary
proceedings;
g. Provide creative, responsive and effective
information, education and communication
programs and projects both for the tenant
beneficiaries, landowners, the government and
private sectors and the general public, thereby
generating a broad spectrum of support and
understanding of the new agrarian reform
program;
h. Strengthen agrarian reform beneficiaries
organizations to a degree of national viability
that would enable them to share in the shaping
of government policies and institutionalize
farmers’ participation in agrarian reform policy
formulation, program implementation and
evaluation;
i. Promote the organization and development of
cooperatives of agrarian reform beneficiaries
and register the same;
K. Ann Uy ˜ C. Santiago ˜ C. Aurea
Agrarian Law Atty. Joyrich Golangco
j. Implement all agrarian reform laws and for this
purpose issue subpoena, subpoena duces
tecum, and writs of execution of its orders, and
decisions and other legal processes to ensure
compliance from all parties concerned for
successful and expeditious program
implementation;
k. Undertake land surveys on lands covered by
agrarian reform, and issue patents to farmers
covered by agrarian reform, both on private and
public lands;
l. Develop, implement and undertake alternative
and innovative land development schemes and
land tenure systems such as, but not limited to
land consolidation, land forming, cooperative
farming and agro-industrial estates;
m. Approve or disapprove conversion of agricultural
lands to non-agricultural uses such as residential
and industrial conversions in accordance with
the existing provisions of law;
n. Undertake land use management studies;
o. Compensate the landowners covered by
agrarian reform;
p. Integrate and synchronize program
implementation of the Land Bank of the
Philippines and other relevant civilian and military
government and private entities involved and
mandated to support the agrarian reform
program through Inter-Agency Committees and
Agrarian Reform Coordinating Councils; and
q. Perform such other functions as may be provided
by law.
LAND BANK
The Land Bank has been created by the Code of
Agrarian Reform, and is the financial arm of the agrarian
reform program.
LBP is vested with the following powers:
(1) To prescribe, repeal, and alter its own by laws, to
determine its operating policies, and to issue such
rules and regulations as may be necessary to
achieve the main purpose for the creation of the
Bank;
(2) To adopt, alter and use a corporate seal; 
 amended insofar as they are not inconsistent or
(3) To acquire and own real and personal property
and to sell, mortgage or 
otherwise dispose of the
same;
(4) To sue and be sued, make contracts, and borrow
money from both local and foreign sources. Such
loans shall be subject to approval by the President
of the Philippines and shall be fully guaranteed by
the Government of the Philippines;
(5) To grant short, medium, and long term loans and
advances against security of rea estate and/or
other acceptable assets for the establishment,
development, or expansion of agricultural,
industrial, home building, or home financing
projects and other productive enterprises
(6) To grant loans to farmers'
cooperatives/associations to facilitate production,
marketing of crops and acquisition of essential
commodities;
(7) To finance and/or guarantee the acquisition,
under Presidential Decree No. 85 dated December
9
25, 1972, of farm lots transferred to tenant-farmers
pursuant to Presidential Decree No. 27 dated
October 21, 1972;
(8) To underwrite, hold, own, purchase, acquire, sell,
mortgage, dispose or otherwise invest or reinvest in
stocks, bonds, debentures, securities and other
evidences of indebtedness of other corporations
and of the government or its instrumentalities
which are issued for or in connection with any
project or enterprise;
(9) The provision of any law to the contrary
notwithstanding, to guarantee acceptance(s),
credits, loans, transactions or obligations of any
person, co-partnership, association or corporation
in favor of any financing or banking institution,
whether foreign or domestic: Provided, That the
proceeds of such acceptances, credits, loans,
transactions or obligations are utilized or
earmarked for the development and/or expansion
of agriculture and industry;
(10) To borrow from, or rediscount notes, bills of
exchange and other commercial papers with, the
Central Bank. The rate of interest to be charged
and the conditions on such obligations or
borrowings shall be subject to the rules and
regulations of the Monetary Board;
(11) To act as trustee, or administer any trust or hold
property in trust in accordance with the provisions
of law governing trust corporations; and
(12) to act as an official government depository with full
authority to maintain deposits of the government,
its branches, subdivisions and instrumentalities, and
of government-owned or controlled corporations
which deposits shall be subjected to liquidity floor
and/or reserve requirements as may be imposed
by the Monetary Board upon other commercial
banks;
(13) for the strengthening of the capital base of the
bank, to establish a national marketing umbrella
for farmers and fisheries cooperatives to attract
massive capital formation from savings deposits of
the cooperative member nationwide
(14) to exercise the general powers mentioned in the
Corporation Law and the General Banking Act, as
incompatible with the Decree
ua1aw library
K. Ann Uy ˜ C. Santiago ˜ C. Aurea