CHAPTER III

TENANTS EMANCIPATION DECREE

GROUP 3 MEMBERS:

LIRA, Jann Lessandro DELA CUEVA, Jojee

PAYUMO, Kane Nielsen CAPARIÑO, Joselito
GARCIA, Melody ARELLANO, Charisse
CAPULONG, Noel ACERO, Dan Emmanuel
ADRIATICO, Paul VILLALUZ, Jenalyn A.
PENA, Calvin Nico MALIT, Vermon Kester

PHRASES AND TERMS UNDER P.D. No. 27

(1) Private agricultural lands primarily devoted to rice and corn – refer to lands of private ownership planted to
rice and corn as principal crops as of October 21, 1971, not being part of the public domain and are under the
effective control and supervision of natural or juridical persons.

(2) Tenant-farmer – refers to the farmer who actually tills the land whether landed estate or not, irrespective of his
relationship with the landowner whether as sharecropper of lessee-tenant.

(3) Irrigated land – denotes a farmland that is supplied with water whether by means of power-pump or gravit flow
system or other modes of irrigation intended to increase the production by double or even triple cropping.

(4) Non-irrigated or upland – refers to a farmland located on a higher elevation and is not provided with water
supply through any method of irrigation and is almost rainfed.

(5) Normal crop year – denotes an agricultural period of 12 months of planting and harvesting activities whether on
a double or triple croppings not attended by any natural calamity such as typhoon, flood, fire, pests, or other force
majeure.

(6) Right of retention in rice and corn lands – is a right pertaining to a landowner of a landholding devoted to rice
and corn to retain an area of seven (7) hectares for his own individual farming if such landowner is cultivating or will
now cultivate it.

TENANTS BENEFICIARIES UNDER P.D No. 27

Award to beneficiaries under the carl

“Section 24. Award to Beneficiaries. — The rights and responsibilities of the beneficiary 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…

Tenant-Beneficiaries under PD 27

 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.

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AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

 It is expressly provided in PD No. 27:

“Title to land acquired pursuant to this Decree or the Land Reform Program of the Government shall not be
transferrable 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 regulations.”
 All tenant-farmers of private agricultural lands primarily devoted to rice and corn under a system of share-
cropping or lease-tenancy whether classified as landed estate or not (24 hectares in area or more) shall be
deemed owners of portions of a landholding constituting a family-size farm of five (5) hectares if not
irrigated, and three (3) hectares if irrigated.
 A tenant-beneficiary who fails to take advantage of his right under this Decree or is guilty of abandonment of
his farmholding, may be deprived thereof, in which case the landholding will revert to the government and
not to the landowner.
 A tenant-farmer whose farmholding is less than five (5) hectares if not irrigated, and three (3) hectares if
irrigated, may seek the assistance of the Department of Agrarian Reform (DAR) which shall endeavor to find
additional landholdings to complete the hectarage in order to be considered as a famiy-size farm. Once the
famholding is awarded to the tenant-farmer, it becomes his obligation to pay its values to the Land Bank if
the acquisition is financed by the Land Bank, or to the landowner in case of a negotiated sale duly approved
by the DAR.

The tenant-farmer shall pay the Land Bank

 The farmer beneficiary or his heirs will pay the Land Bank:
(1) the total costs of the land;
(2) with interest at the rate of 6% per annum for 20 years;
(3) these payments shall be in 20 equal annual amortizations
 The Emancipation Patent will be issued to the farmer-beneficiary after full payment of the amortizations
 This is provided for in Sec. 6 of EO No. 228:

Transfer of lands to tenants

 Presidential Decree. 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”

 Sec. 1 of EO No. 228 further provides that:

“Section 1. 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.”

 The phrase “shall be deemed owner” or “are now deemed full owners” 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 in violation of the constitutional injunction
against taking of private property without just compensation.

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AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

 Therefore, notwithstanding the phrase “shall be deemed owner” or “are now deemed owners” the title
and ownership over the land will be transferred to the beneficiaries only upon full payment of the just
compensation to the landowner.

MATURITY DATE OF LBP BONDS

All outstanding Land Bank bonds that are retained by the original landowners-payee or by their heirs, are deemed
matured up to one twenty-fifth (1/25) of their yearly face value from their date of issue to the date of Executive Order
No. 228, and may be claimed by the original landowner-payee by surrendering the bonds to the Land Ban.

PROCEDURE IN CASE THE LANDOWNER REFUSES TO ACCEPT PAYMENT

In the event the landowner does not accept payment of the compensation due him, his compensation shall be held in
trust for him by the Trust Department of the Land Bank. The cash portions of the compensation and such portions
that mature yearly shall be invested by the Trust Department only in government securities fully guaranteed by the
Republic of the Philippines. All the net earnings of the investment shall be for the benefit of the landowner, his heirs,
or successors in interest. The rights of the landowner may be exercised by his heirs upon his death.

Lease rentals paid to the landowner by the farmer-beneficiary after October 21, 1972, shall be considered as
advance payment for the land. In the event of dispute with the landowner regarding the amount of lease rental paid,
by the farmer-beneficiary, the DAR and the Barangay Committee on Land Production concerned shall resolve the
dispute within thirty days from its submission. Should a party question in court the resolution of the dispute, the
landowner’s compensation claim shall still be processed for payment and the proceeds shall be held in trust by the
Trust Department of the Land Bank pending the resolution of the dispute by the Court.

EFFECT OF FAILURE TO PAY AMORTIZATION

“Failure on the part of the farmer-beneficiary to pay three (3) annual amortizations shall be sufficient cause
for the Land Bank to foreclose on the mortgage” (Sec. 8)

FORECLOSURE PROCEEDINGS (under E.O. 228)

- Commencement
o Land Bank; Serving final notice
 To defaulting tenant-farmer
 To the Department of Agrarian Reform (DAR)
o Land Bank; Registration of Certification under Oath of intent to foreclose
 Where; Register of Deeds of the province or city where land is situated
 When; after thirty (30) days from service of final notice to tenant-farmer and DAR
 Attached:
 Copy of final notice of payment
 Proof of service of final notice to tenant-farmer and DAR
 Certification; at least three (3) annual amortizations remains unpaid
o Mortgage deemed foreclosed upon registration of the above

- If final notice cannot be served to tenant-farmer

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AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

o Land Bank; Posting of Notice

 Where; place of residence of tenant-farmer;
 town hall, public market, and barangay hall or any other suitable place
frequented by the public of the barangay
o Land Bank; Certification of Posting of Notice
 In lieu proof of service of notice to tenant-farmer

- Register of Deeds of all cities and municipalities

o Directed to have a separate registry book
 For foreclosure requirements enumerated herein (Sec. 9)

HOW FORECLOSURE MAY BE LIFTED

A foreclosure under the above Section may be lifted by the tenant-farmer, or any of his compulsory heirs within the
period of two (2) years from its registration by paying the Land Bank all unpaid amortizations on the land with interest
thereon of 6% per annum. In case of failure to lift, the foreclosure within the said period, ownership of the land shall
be deemed transferred to the Land Bank. (Sec. 10, Ibid.)

SALE OF LANDS FORECLOSED UNDER EO NO. 228

SECTION 11 of EO No. 228

1. The Land Bank, not later than three (3) months after its acquisition of the land, shall sell the foreclosed land
to:
a. any interested landless farmer duly certified to as a bona fide landless farmer by the Department
of Agrarian Reform of the barangay or;
b. of the two closest barangays where the land is situated.

2. The cost of the land is the unpaid amortizations due on the lands as of the date of the sale with interest
thereon of six percent (6%) per annum.
3. In the event that there is more than one interested buyer, the actual buyer shall be determined by lottery in
the presence of all the buyers or their representatives and a representative of the Department of Agrarian
Reform.
4. The Deed of Conveyance executed by the Land Bank in favor of the farmer transferee shall be registered
with the Register of Deeds of the city or province where the land is located.
5. Ownership shall transfer to the farmer transferee only upon registration with the Registry of Deeds.
6. The lien of the Land Bank by way of mortgage on the remaining unpaid amortizations shall subsist on the
title of the transferee.

PRIOR NOTICE OF SALE

When is Notice of Sale furnished?

Under Section 12 of Executive Order No. 228 (EO 228), the Land Bank, at least one (1) month prior to the sale, shall
furnish the Department of Agrarian Reform with a notice of sale.

Where is Notice of Sale posted?

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AGRARIAN REFORM AND SOCIAL LEGISLATION
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ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

The Land Bank shall also post a similar notice in the

(1) town hall,
(2) public market, and
(3) barangay where the property is located.

What are the contents of Notice of Sale?

The notice shall state the:
(1) description of the property subject of the sale,
(2) the price, and the
(3) date and
(4) place of sale.

AFFIDAVIT REQUIRED IN VOLUNTARY DEALINGS

P.D. No. 1529 dated June 11, 1979, otherwise known as Property Registration Decree provides that “no
voluntary deed or instrument purporting to be a subdivision, mortgage, lease, sale or any other mode of
encumbrance or conveyance of private agricultural land principally devoted to rice and corn or any portion thereof
shall be registered unless accompanied by an affidavit of the vendor or executor stating that the land involved is not
tenanted, or if tenanted, the same is not primarily devoted to the production of rice and corn.”
“If only a portion of the land is primarily devoted to the production of rice and/or corn, and such area so devoted
is tenanted, no such deed or instrument shall be registered unless accompanied by an and primarily devoted to rice
and/or corn. A memorandum of said affidavit shall be annotated on the certificate of title. The Registrar of Deeds shall
cause a copy of the registered deed or instrument, together with the affidavit, to be furnished the Ministry of Agrarian
Reform Regional Office where the land is located. The affidavit provided in this Section shall not be registered in the
case of a tenant-farmer who deals with his Certificate of Land Transfer or Emancipation Patent in accordance with
law.”

STATUS QUO OVER LANDS COVERED BY PD NO. 27

Upon the effectivity of PD 27, all tenant-farmers of private agricultural lands primarily devoted to rice and corn are
deemed owners of the land they till. Pending the issuance of IRR which were never issued at all until the issuance of
EO 228 and the enactment of RA 6657, the relations between landowners and tenants were placed in the
status quo. In effect, the agricultural leasehold relationship with respect to rice and corn lands of seven (2) hectares
or less, not covered by operation land transfer shall be maintained. This being the case, the duty of paying real estate
taxes on the land devolves on the landowner.

CERTIFICATE OF LAND TRANSFER AS EVIDENCE OF OWNERSHIP

Significance of the Certificate

The CLT does not vest upon 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.

GROUP III 5
AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

PROVIDING FOR THE MECHANICS OF REGISTRATION OF OWNERSHIP AND/OR TITLE TO LAND

UNDER PRESIDENTIAL DECREE NO. 27 (PRESIDENTIAL DECREE No. 266 August 4, 1973)

All Land Transfer Certificates issued pursuant to Presidential Decree No. 27 shall be filed by the Department of
Agrarian Reform and recorded with the Land Registration Commission (Sec. 1 par. 1)

The Register of Deeds concerned shall record it in the primary entry book and annotate a memorandum thereof in
the corresponding certificate of title covering the land, without need of prior surrender of the owner's duplicate
certificate of title. (Sec. 1 par. 2)

MECHANICS ON ISSUANCE OF EMANCIPATION PATENT

Basis
P.D. No. 266 PROVIDING FOR THE MECHANICS OF REGISTRATION OF OWNERSHIP AND/OR TITLE TO LAND
UNDER PRESIDENTIAL DECREE NO. 27

Process
Emancipation Patent shall be issued by the DAR in favor of the tenant-farmer who has complied with the
requirements imposed by P.D. 27 after a survey has been conducted and the survey plan submitted duly approved of
the identified landholding primarily devoted to rice and corn.
Annual amortization shall be fully paid.

When the land covered by an Emancipation Patent is unregistered under Act No. 3344 (Relating to unregistered
land), the land affected will be brought under the operation of Act. No. 496 a.k.a “Land Registration Act”.

Q: How?
A: upon the filing of the Emancipation Patent with the Register of Deeds of the city or province where the land is
situated.
Result: such lands shall have the character of registered lands under the Torrens System.

Role of register of deeds

After an entry is made of such Emancipation Patent in the corresponding registration book, it becomes ministerial
duty of the Registry of Deeds concerned to prepare certificate of title for the farmer’s farmholding and the issuance of
the owner’s duplicate certificate of title to the beneficiary.
In case of Torrens System, Register of Deeds shall assign a corresponding certificate of title upon the filing of the
Emancipation Patent in accordance with the approved survey plan.

Cancelling of title
In case of cancelling the original title certificate containing an annotation of a memorandum of the entry of the patent,
Register of Deeds shall require the surrender of the duplicate certificate.

Q: What if the registered owner or any person in possession refuse to surrender the duplicate title within reasonable
time after serving proper notice?
A: Register of Deeds shall cancel the original and the owner’s duplicate and issue a new certificate of title as well as
duplicate copy in favor of the holder of Emancipation Patent.

B.P. BLG. 870 AND THE SUBSEQUENT AMENDMENT

During the operation of bp 870

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AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW
 CHAPTER III
TENANTS EMANCIPATION DECREE

Once an Emancipation Patent and certificate of title are issued in accordance with P.D. No. 27 and the agrarian
reform laws of this country, the beneficiary is now prohibited from transferring or conveying title to the land which it
represents in favor of third-persons, whether natural or juridical.
If violated, the farmer-beneficiary shall not be entitled to a refund of his amortizations to the Landbank, but the land
thus conveyed shall be forfeited in favor of the state and he shall be forever be disqualified from acquiriing lands
under the agrarian reform laws.

Amendment to b.p. Blg. 870

BP BLG 870 has been superseded by an amendatory provision of Section 6 E.O. No. 228., which allows transfer of
lands acquired by a farmer-beneficiary by operation of P.D. 27 and other agrarian reform laws.

Requirement: The beneficiary has to fully paid his remaining amortizations to the Land Bank, and the transferee is a
qualified beneficiary under the CARP.

GROUP III 7
AGRARIAN REFORM AND SOCIAL LEGISLATION
ATTY. GEFER MANCOL
ARELLANO UNIVERSITY SCHOOL OF LAW