Chapter VI:

JUST COMPENSATION
Chapter VII:
LAND REDISTRIBUTION
JUST COMPENSATION
Sections 17 to 21, Chapter VI, RA 6657
LAND REDISTRIBUTION
Sections 22 to 28, Chapter VI, RA 6657
Just Compensation
Section 17: Determination of Just Compensation
Section 18: Valuation and Mode of Compensation
Section 19: Incentives for Voluntary Offers for Sale
Section 20: Voluntary Land Transfers
Section 21: Payment of Compensation by
Beneficiaries Under Voluntary Land Transfer
Land Redistribution
Section 22: Qualified Beneficiaries
Section 22-A: Order of Priority
Section 23: Distribution Limit
Section 24: Award to Beneficiaries
Section 25: Award Ceilings to Beneficiaries
Section 26: Payment by Beneficiaries
Section 27: Transferability of Awarded Lands
Section 28: Standing Crops at the Time of Acquisition
Section 17
CONSIDERATION:
Cost of acquisition of land
Value of the standing crop
Current value of like
properties, its nature, actual
use and income
Sworn valuation by the owner
Tax declarations
Assessment made by
government assessors
70% of the zonal valuation of
the BIR
ADDITIONAL
FACTORS:
Social and economic benefits
by the farmers and
farmworkers and by the
government to the property
Nonpayment of taxes and
loans secured from any
government financing
institution on the said land
All factors present:
. + . + .
CNI is not given:
. + .
CS is not given:
. + .
CNI and CS not given:
()
70% of the zonal valuation
of the BIR, translated into a
basic formula by the DAR,
subject to the final decision
of the proper court
Capitalized Net Income
(CNI):
-land use and productivity
Comparable Sales (CS):
-70% of BIR zonal value
Market Value (MV):
-tax declaration
70% of the zonal valuation of the BIR
Reckoning of Valuation
The basis of the value of the property for the determination of
just compensation shall be at the time it was TAKEN FROM
THE OWNER and APPROPRIATED BY THE GOVERNMENT.
1. Govt takes possession before the institution of the
expropriation proceedings:
value = time of taking of possession
value time of filing of the complaint
2. There is undue delay in payment
value = time of full payment
Just compensation should be the full and equivalent of the property taken from
its owner by the expropriator, the equivalent being real, substantial, full and
ample. Lubrica v. Land Bank, 507 SCRA 415
Procedure
START
Land Bank of the Philippines
Determine the value
of the land
Dept of Agrarian Reform
Makes an offer
based on the
valuation
Landowner
Accepts?
NO NO
Conduct Summary
Administrative
Proceedings
YES
Initial valuation
less than 10M?
YES
PARAD conducts
the Summary
Administrative
Proceedings
NO
Initial valuation
is 10M to 50M?
YES
RARAD conducts
the Summary
Administrative
Proceedings
NO
Initial valuation
is above 50M?
YES
LBP compensates
the landowner
YES
DARAB conducts
the Summary
Administrative
Proceedings
Requires the
landowner, LBP and
other interested
parties to submit
evidence as to just
compensation
Party
Agrees?
YES
LBP compensates
the owner
NO
Adjudicator brings
the matter to the
RTC designated as a
Special Agrarian
Court
RTC
Final determination
of just compensation
END
Section 18
Cash payment
Shares of stock in GOCCs, LBP preferred
shares, physical assets or other qualified
investments
Tax credits
LBP bonds
Cash Payment
24 hectares and below Above 24 hectares
[VALUE]
gov't
financial
instruments
[VALUE]
cash
[VALUE] gov't
financial
instruments
[VALUE] cash
[VALUE] gov't
financial
instruments
[VALUE] cash
Excess of 50ha
Assume 100ha:
Agrarian Reform Bonds
Interest is aligned with 91-day T-bill rate, payable
semi-annually (net of tax)
10% principal redemption, payable annually
Transferable and negotiable
Inscribed or Bearer
Non-denominated
Risk-free fully guaranteed by the government
Investor buys AR bond at a discounted rate
Section 19
Documentary requirements:
1. Title or proof of ownership, if untitled
2. Tax declaration
3. Approved survey plan
Complete documents?
YES additional 5% cash payment
NO compulsory acquisition
Section 22
Basic qualification:
1. Filipino citizen
2. Landless resident of the same barangay or
municipality
3. At least 15 yrs. old at the time of identification,
screening and selection
4. Willing, with aptitude and ability to cultivate and
make the land as productive as possible

Farmworkers in commercial farms of plantation already employed as of
June 15, 1988 are qualified.
Farmworkers promoted to managerial position after their identification,
screening and selection after June 15, 1988
Section 22
Disqualifications:
1. Beneficiaries under PD 27 who have culpably
sold, disposed of, or abandoned their land
2. Managerial farmworkers as of June 15, 1988
3. Indians
4. Politicians
5. 123ers
6. Unsuccessful
7. Unemployed
8. Employees
9. Retired and resigned

Section 22
Disqualifications:
10. Misusers or divertors
11. Misrepresentors
12. Sellers, disposers, abandoners
13. Convertors
14. Intruders or detainers
15. Violators
Section 22-A
Order of priority:
1. Qualified children of landowners
2. Agricultural lessees and share tenants
3. Regular farmworkers
4. Seasonal farmworkers
5. Other farmworkers
6. Actual tillers or occupants of public lands
7. Collectives or cooperatives of the above
beneficiaries
8. Others directly working on the land
Section 23
START
Dist ribute t o each
of t he Agricultural
Lessees or Tenant s
Lack or
excess?
Lack
Dist ribute
according t o t he
act ual size of
t illage
Excess
Dist ribute in t he following priorit y t o:
1. Seasonal farmworker
2. Ot her f armworker
3. Act ual tillers or occupant s o public lands
4. Collect ives or cooperat ives of the benef iciaries
Feasible f or
1 and 2?
No
Observe t he crit eria for prioritization t o t he seasonal and other f armworkers:
1. Willingness, aptit ude and abilit y t o cult ivat e and make t he land product ive
2. physical capacit y
3. Lengt h of service
Equal in
crit eria?
Yes
Priorit ize those
who have
cont inuously
worked on t he
subject
landholding
Accomodat ed? No
Place in a wait list
of pot ential
beneficiaries on
other landholdings
END
Section 24
Compulsory acquisition does not mean automatic
transfer of ownership to the beneficiaries
DAR issues CLOA upon full payment
CLOA basis for issuance of OCT or TCT
CLOA is indefeasible
Exclusive and original jurisdiction of the Secretary of
DAR
Grounds for cancellation of CLOA:
1. Abandonment of land
2. Neglect or misuse of land
3. Failure to pay 3 annual amortizations
4. Misuse or diversion of financial and support services
5. Sale, transfer or conveyance of the right to use the land
6. Illegal conversion of the land
Section 24
Commencement of the rights and obligations of
beneficiaries:
1. Receipt of a duly registered CLOA
2. Actual physical possession of the awarded land
Usufructuary rights of agrarian reform beneficiaries:
1. Land is already awarded
2. Issuance of CLOA is pending
3. Beneficiaries are identified and qualified
4. DAR has possession of the land
Obligations of agrarian reform beneficiaries:
1. Exercise due diligence in the use, cultivation and maintenance of the land,
including the improvements thereon
2. Pay the LBP thirty (30) annual amortizations with 6% interest per annum
Amortization starts 1 year from date of registration, except when land is
actually occupied which will reckon from the constructive occupation
Section 25
Individual vs. collective titles
Conditions for issuance of collective titles:
1. Inappropriate farm management system
2. Specialized farm labor system
3. Collective farming on large contiguous areas
4. Multiple crops farmed in an integrated manner or
inclusion of undivided properties necessary for
viability of farm operations
Section 26
Amortization starts 1 year from date of registration,
except when land is actually occupied which will
reckon from the constructive occupation
Basis of amortization is the annual gross production
established by DAR
Effects of failure to pay amortizations:
1. Forfeiture of the landholding and award to other qualified beneficiaries
2. Disqualification of the beneficiary whose land was forfeited or foreclosed

Section 27
Exceptions of the prohibition to alienate the land
within the prescribed ten (10) year period:
1. Through hereditary succession
2. To the government
3. To the LBP
4. To other qualified beneficiaries
The effect in nos. 2 and 3, the spouse and the children of the transferor is given the
right to repurchase the land within two years from date of transfer
Section 27
Conditions on the sale of a beneficiary who has not
fully paid the amortizations:
1. Approval of the DAR must first be obtained
2. The land should be sold only to an heir of the
beneficiary or to any other qualified beneficiaries
3. The transferee must undertake to cultivate the
land himself, otherwise, the LBP will take the
land for proper disposition
When all the conditions are complied with, the LBP
will compensate the beneficiary in lump sum amounts
Section 27
A beneficiary may lease the land to another person
only for agricultural purposes. Approval of DAR is
required if the lease is for non-agricultural purposes
or if the land will be leased to its previous owner
Section 28
Landowner retains his right over standing crops or
those crops not yet harvested at the time that DAR
takes possession of the land
FINISH