agrarian, chapter vi and vii

8/11/2019 Agrarian, Chapter VI and VII

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Chapter VI:

JUST COMPENSATION

Chapter VII:

LAND REDISTRIBUTION


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LAND REDISTRIBUTIONSections 22 to 28, Chapter VI, RA 6657


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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 byBeneficiaries Under Voluntary Land Transfer


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Section 17

CONSIDERATION:

Cost of acquisition of land

Value of the standing crop

Current value of likeproperties, its nature, actualuse and income

Sworn valuation by the owner

Tax declarations

Assessment made bygovernment assessors

70% of the zonal valuation ofthe BIR

ADDITIONALFACTORS:

Social and economic benefitsby the farmers and

farmworkers and by thegovernment to the property

Nonpayment of taxes andloans secured from anygovernment financing

institution on the said land


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All factors present:. + . + .

CNI is not given:

. + . CS is not given:

. + .

CNI and CS not given:()

70% of the zonal valuationof the BIR, translated into abasic formula by the DAR,subject to the final decisionof 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


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Reckoning of Valuation

The basis of the value of the property for the determination ofjust compensation shall be at the time it was TAKEN FROMTHE OWNER and APPROPRIATED BY THE GOVERNMENT.

1. Govt takes possession before the institution of the

expropriation proceedings:

value =time of takingof possessionvalue time of filingof 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 fromits owner by the expropriator, the equivalent being real, substantial, full andample.Lubrica v. Land Bank, 507 SCRA 415


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Section 18

Cash payment

Shares of stock in GOCCs, LBP preferredshares, physical assets or other qualified

investments Tax credits

LBP bonds


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Cash Payment

24 hectares and below Above 24 hectares

[VALUE]gov't

financial

instruments

[VALUE]

cash

[VALUE] gov'tfinancial

instruments

[VALUE] cash[VALUE] gov't

financial

instruments

[VALUE] cash

Excess of 50ha

Assume 100ha:


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Agrarian Reform Bonds

Interest is aligned with 91-day T-bill rate, payablesemi-annually (net of tax)

10% principal redemption, payable annually

Transferable and negotiable

Inscribed or Bearer

Non-denominated

Risk-freefully guaranteed by the government

Investor buys AR bond at a discounted rate


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Section 19

Documentary requirements:

1. Title or proof of ownership, if untitled

2. Tax declaration

3. Approved survey plan

Complete documents?

YESadditional 5% cash payment

NOcompulsory acquisition


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Section 22

Basic qualification:

1. Filipino citizen2. Landless resident of the same barangay or

municipality3. At least 15 yrs. old at the time of identification,

screening and selection4. 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


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Section 22

Disqualifications:

1. Beneficiaries under PD 27 who have culpablysold, disposed of, or abandoned their land

2. Managerial farmworkers as of June 15, 19883. Indians4. Politicians5. 123ers

6. Unsuccessful7. Unemployed8. Employees9. Retired and resigned


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Section 22

Disqualifications:

10. Misusers or divertors11. Misrepresentors

12. Sellers, disposers, abandoners13. Convertors14. Intruders or detainers15. Violators


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Section 22-A

Order of priority:

1. Qualified children of landowners2. Agricultural lessees and share tenants

3. Regular farmworkers4. Seasonal farmworkers5. Other farmworkers6. Actual tillers or occupants of public lands7.

Collectives or cooperatives of the abovebeneficiaries8. Others directly working on the land


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Section 23

STARTDistribute to eachof the AgriculturalLessees or Tenants

Lack orexcess?

Lack

Distributeaccording t o the

actual size oftillage

Excess

Distribute in the following priorit y to:1. Seasonal farmworker2. Other farmworker3. Actual tillers or occupants o public lands4. Collectives or cooperatives of the beneficiaries

Feasible for1 and 2?

No

Observe the criteria for prioritization to the seasonal and other farmworkers:1. Willingness, aptitude and ability to cultivate and make the land productive2. physical capacity3. Length of service

Equal incriteria?

Yes

Prioritize thosewho have

continuouslyworked on the

subject

landholding

Accomodated? No

Place in a wait li stof potential

beneficiaries onother landholdings

END


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Section 24

Compulsory acquisition does not mean automatictransfer 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 ofDAR

Grounds for cancellation of CLOA:1. Abandonment of land2. Neglect or misuse of land3. Failure to pay 3 annual amortizations4. Misuse or diversion of financial and support services

5. Sale, transfer or conveyance of the right to use the land6. Illegal conversion of the land


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Section 24

Commencement of the rights and obligations ofbeneficiaries:

1. Receipt of a duly registered CLOA2. Actual physical possession of the awarded land

Usufructuary rights of agrarian reform beneficiaries:1. Land is already awarded2. Issuance of CLOA is pending3. Beneficiaries are identified and qualified4. 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 annumAmortization starts 1 year from date of registration, except when land isactually occupied which will reckon from the constructive occupation


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Section 25

Individual vs. collective titles

Conditions for issuance of collective titles:1. Inappropriate farm management system

2. Specialized farm labor system3. Collective farming on large contiguous areas4. Multiple crops farmed in an integrated manner or

inclusion of undivided properties necessary for

viability of farm operations


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Section 26

Amortization starts 1 year from date of registration,except when land is actually occupied which willreckon from the constructive occupation

Basis of amortization is the annual gross productionestablished 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


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Section 27

Exceptions of the prohibition to alienate the landwithin the prescribed ten (10) year period:

1. Through hereditary succession

2. To the government3. To the LBP4. To other qualified beneficiaries

The effect in nos. 2 and 3, the spouse and the children of the transferor is given theright to repurchase the land within two years from date of transfer


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Section 27

Conditions on the sale of a beneficiary who has notfully paid the amortizations:

1. Approval of the DAR must first be obtained

2. The land should be sold only to an heir of thebeneficiary or to any other qualified beneficiaries3. The transferee must undertake to cultivate the

land himself, otherwise, the LBP will take the

land for proper dispositionWhen all the conditions are complied with, the LBPwill compensate the beneficiary in lump sum amounts


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Section 27

A beneficiary may lease the land to another persononly for agricultural purposes. Approval of DAR isrequired if the lease is for non-agricultural purposesor if the land will be leased to its previous owner


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Section 28

Landowner retains his right over standing crops orthose crops not yet harvested at the time that DARtakes possession of the land

FINISH


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agrarian, chapter vi and vii

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