AGRARIAN

LAW
A)y Casis

Discussion for October 23

I. Rule XIX, Preliminary DeterminaAon of Just CompensaAon, of 2009 DARAB Rules

of Procedure
II. Republic Act No. 6657, as amended a. SecAon 17 ; b. SecAon 22 to 28
III. AdministraAve Order No. 07, Series of 2011 


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I. 2009 DARAB Rules (h)p://www.lis.dar.gov.ph/documents/7053 )

RULE XIX
Preliminary Determina3on of Just Compensa3on

SECTION 1. Principal Role of Board/Adjudicator. — The principal role of the Board/

Adjudicator in the summary administraAve proceedings for the preliminary
determinaAon of just compensaAon is to determine whether the Land Bank of
the Philippines (LBP) and the Department of Agrarian Reform (DAR) in their land
valuaAon computaAons have complied with the administraAve orders and other
issuances of the Secretary of the DAR and the LBP.

SECTION 2. By Whom Conducted. — The preliminary proceedings of land valuaAon for

the purpose of the determinaAon of just compensaAon for its acquisiAon shall be
conducted:
a. by the PARAD when the iniAal land valuaAon of the Land Bank of the
Philippines (LBP) is less than Ten Million Pesos (PhP10,000,000.00);
b. by the RARAD when the said valuaAon is Ten Million Pesos and above but less
than Fiay Million Pesos (PhP50,000,000.00); and
c. by the Board when the said valuaAon is Fiay Million Pesos
(PhP50,000,000.00) and above.

In the event of non-availability, inhibiAon or disqualificaAon of a designated

PARAD in the locality, the RARAD concerned may conduct preliminary
proceedings of land valuaAon notwithstanding that the jurisdicAonal
amount is less than Ten (10) Million Pesos.

On account of non-availability, inhibiAon or disqualificaAon of the RARAD

concerned, the Board may conduct the preliminary proceedings of land
valuaAon or designate the same to an Adjudicator from among the
PARADs in the region.

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SECTION 3. Order for Submission of Evidence, PosiAon Papers, and NoAce of Hearing. —
Upon receipt of the Claim Folder (CF) containing all the perAnent documents, the
Board/Adjudicator shall issue an order:
a. to the landowner, the LBP, the DAR officials concerned, the farmer-
beneficiaries and other interested parAes, that they may examine the
claim folder in the Adjudicator's possession and to submit evidence,
perAnent documents, and their respecAve posiAon papers and affidavits
within thirty (30) days from receipt of the order; and
b. noAfying said parAes of the date set for hearing on the ma)er.

Thereaaer, the Board/Adjudicator shall proceed to make an administraAve

determinaAon of just compensaAon following the procedure in ordinary
cases.

The Order shall be served in the same manner as the service of summons as
provided for in Rule VII hereof.

SECTION 4. Failure to Comply with Above Order. — If the parAes fail to submit the
required documents and their posiAon papers, and/or to appear on the date set
for hearing, despite proper noAce, the ma)er shall be deemed submi)ed for
resoluAon.

SECTION 5. When ResoluAon Deemed Final. — Failure on the part of the aggrieved
party to contest the resoluAon of the Board/Adjudicator within the afore-cited
reglementary period provided shall be deemed a concurrence by such party with
the land valuaAon, hence said valuaAon shall become final and executory.

SECTION 6. Filing of Original AcAon with the Special Agrarian Court for Final
DeterminaAon. — The party who disagrees with the decision of the Board/
Adjudicator may contest the same by filing an original acAon with the Special
Agrarian Court (SAC) having jurisdicAon over the subject property within fiaeen
(15) days from his receipt of the Board/Adjudicator's decision

Immediately upon filing with the SAC, the party shall file a NoAce of Filing of
Original AcAon with the Board/Adjudicator, together with a cerAfied true
copy of the peAAon filed with the SAC.

Failure to file a NoAce of Filing of Original AcAon or to submit a cerAfied true

copy of the peAAon shall render the decision of the Board/Adjudicator
final and executory. Upon receipt of the NoAce of Filing of Original AcAon
or cerAfied true copy of the peAAon filed with the SAC, no writ of
execuAon shall be issued by the Board/Adjudicator.

SECTION 7. NoAce of ResoluAon. — A copy of the resoluAon of the Board/Adjudicator

shall be sent to the landowner, the Land Bank of the Philippines, the potenAal
farmer beneficiaries, other interested parAes, and their counsels.
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SECTION 8. Return of Claim Folder. — The Board/Adjudicator shall, within three (3) days
from return of the noAce of the resoluAon pursuant to the preceding secAon,
transmit the Claim Folder (CF), together with the complete records thereof to the
office of origin or the Provincial Agrarian Reform Officer (PARO) concerned, copy
furnished the LBP.

SECTION 9. ExecuAon of Judgments for Just CompensaAon Which Have Become Final
and Executory. — The Sheriff shall enforce a writ of execuAon of a final judgment
for compensaAon by demanding for the payment of the amount stated in the writ
of execuAon in cash and bonds against the Agrarian Reform Fund in the custody
of the LBP in accordance with RA 6657, as amended, and the LBP shall pay the
same in accordance with the final judgment and the writ of execuAon within five
(5) days from the Ame the landowner accordingly executes and submits to the
LBP the corresponding deed/s of transfer in favor of the government and
surrenders the muniments of Atle to the property in accordance with SecAon 16
(c) of RA 6657, as amended.

II. Republic Act No. 6657, as amended (h)p://www.dar.gov.ph/ra-6657-what-is-carp-

comprehensive-agrarian-reform-program )
a. SecAon 17

CHAPTER VI
Compensa3on

SECTION 17. DeterminaAon of Just CompensaAon. —In determining just compensaAon,

the cost of acquisiAon of the land, the current value of the like properAes, its
nature, actual use and income, the sworn valuaAon by the owner, the tax
declaraAons, and the assessment made by government assessors shall
be considered. The social and economic benefits contributed by the farmers and
the farmworkers and by the Government to the property as well as the non-
payment of taxes or loans secured from any government financing insAtuAon on
the said land shall be considered as addiAonal factors to determine its valuaAon.

b. SecAon 22 to 28
CHAPTER VII
Land Redistribu3on

SECTION 22. Qualified Beneficiaries. — The lands covered by the CARP shall be
distributed as much as possible to landless residents of the same
barangay, or in the absence thereof, landless residents of the same
municipality in the following order of priority: (a) agricultural lessees and
share tenants; (b) regular farmworkers; (c) seasonal farmworkers; (d)
other farmworkers; (e) actual Allers or occupants of public lands; (f)
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 collecAves or cooperaAves of the above beneficiaries; and (g) others
directly working on the land. Provided, however, That the children of
landowners who are qualified under SecAon 6 of this Act shall be given
preference in the distribuAon of the land of their parents: and Provided,
further, That actual tenant-Allers in the landholdings shall not be ejected
or removed therefrom. Beneficiaries under PresidenAal Decree No. 27
who have culpably sold, disposed of, or abandoned their land are
disqualified to become beneficiaries under this Program. A basic
qualificaAon of a beneficiary shall be his willingness, apAtude, and ability
to culAvate and make the land as producAve as possible. The DAR shall
adopt a system of monitoring the record or performance of each
beneficiary, so that any beneficiary guilty of negligence or misuse of the
land or any support extended to him shall forfeit his right to conAnue as
such beneficiary. The DAR shall submit periodic reports on the
performance of the beneficiaries to the PARC. If, due to the landowner's
retenAon rights or to the number of tenants, lessees, or workers on the
land, there is not enough land to accommodate any or some of them,
they may be granted ownership of other lands available for distribuAon
under this Act, at the opAon of the beneficiaries. Farmers already in
place and those not accommodated in the distribuAon of privately-
owned lands will be given preferenAal rights in the distribuAon of lands
from the public domain.

SECTION 23. DistribuAon Limit. — No qualified beneficiary may own more than
three (3) hectares of agricultural land.

SECTION 24. Award to Beneficiaries. — The rights and responsibiliAes of the

beneficiary shall commence from the Ame the DAR makes an award of
the land to him, which award shall be completed within one hundred
eighty (180) days from the Ame the DAR takes actual possession of the
land. Ownership of the beneficiary shall be evidenced by a CerAficate of
Land Ownership Award, which shall contain the restricAons and
condiAons provided for in this Act, and shall be recorded in the Register
of Deeds concerned and annotated on the CerAficate of Title.

SECTION 25. Award Ceilings for Beneficiaries. —Beneficiaries shall be awarded

an area not exceeding three (3) hectares which may cover a conAguous
tract of land or several parcels of land cumulated up to the prescribed
award limits. For purposes of this Act, a landless beneficiary is one who
owns less than three (3) hectares of agricultural land. The beneficiaries
may opt for collecAve ownership, such as co-ownership or farmers
cooperaAve or some other form of collecAve organizaAon: Provided, That
the total area that may be awarded shall not exceed the total number of
co-owners or member of the cooperaAve or collecAve organizaAon
mulAplied by the award limit above prescribed, except in meritorious
cases as determined by the PARC. Title to the property shall be issued in
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 the name of the co-owners or the cooperaAve or collecAve organizaAon
as the case may be.

SECTION 26. Payment by Beneficiaries. —Lands awarded pursuant to this Act

shall be paid for by the beneficiaries to the LBP in thirty (30) annual
amorAzaAons at six percent (6%) interest per annum. The payments for
the first three (3) years aaer the award may be at reduced amounts as
established by the PARC: Provided, That the first five (5) annual payments
may not be more than five percent (5%) of the value of the annual gross
producAon as established by the DAR. Should the scheduled annual
payments aaer the fiah year exceed ten percent (10%) of the annual
gross producAon and the failure to produce accordingly is not due to the
beneficiary's fault, the LBP may reduce the interest rate or reduce the
principal obligaAons to make the repayment affordable. The LBP shall
have a lien by way of mortgage on the land awarded to the beneficiary;
and this mortgage may be foreclosed by the LBP for non-payment of an
aggregate of three (3) annual amorAzaAons. The LBP shall advise the DAR
of such proceedings and the la)er shall subsequently award the forfeited
landholdings to other qualified beneficiaries. A beneficiary whose land,
as provided herein, has been foreclosed shall thereaaer be permanently
disqualified from becoming a beneficiary under this Act.

SECTION 27. Transferability of Awarded Lands. —Lands acquired by
beneficiaries under this Act may not be sold, transferred or conveyed
except through hereditary succession, or to the government, or the LBP,
or to other qualified beneficiaries for a period of ten (10) years: Provided,
however, That the children or the spouse of the transferor shall have a
right to repurchase the land from the government or LBP within a period
of two (2) years. Due noAce of the availability of the land shall be given
by the LBP to the Barangay Agrarian Reform Commi)ee (BARC) of the
barangay where the land is situated. The Provincial Agrarian Reform
CoordinaAng Commi)ee (PARCCOM) as herein provided, shall, in turn, be
given due noAce thereof by the BARC. If the land has not yet been fully
paid by the beneficiary, the rights to the land may be transferred or
conveyed, with prior approval of the DAR, to any heir of the beneficiary
or to any other beneficiary who, as a condiAon for such transfer or
conveyance, shall culAvate the land himself. Failing compliance herewith,
the land shall be transferred to the LBP which shall give due noAce of the
availability of the land in the manner specified in the immediately
preceding paragraph. In the event of such transfer to the LBP, the la)er
shall compensate the beneficiary in one lump sum for the amounts the
la)er has already paid, together with the value of improvements he has
made on the land.

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 SECTION 28. Standing Crops at the Time of AcquisiAon. —The landowner shall
retain his share of any standing crops unharvested at the Ame the DAR
shall take possession of the land under SecAon 16 of the Act, and shall be
given a reasonable Ame to harvest the same.

III. AdministraAve Order No. 07, Series of 2011 (h)p://www.lis.dar.gov.ph/documents/

6436 )
September 30, 2011
DAR ADMINISTRATIVE ORDER NO. 07-11
SUBJECT : Revised Rules and Procedures Governing the AcquisiAon and DistribuAon
of Private and Agricultural Lands Under Republic Act (R.A.) No. 6657, As Amended

PREFATORY STATEMENT
AdministraAve Order (A.O.) No. 2, Series of 2009, otherwise known as The Rules and
Procedures Governing the AcquisiAon and DistribuAon of Agricultural Lands
under Republic Act (R.A.) No. 6657, as amended by R.A. No. 9700, is revised to
streamline the Land AcquisiAon and DistribuAon (LAD) Process of the Department
of Agrarian Reform (DAR), strengthen the due process requirement for
Comprehensive Agrarian Reform Program (CARP) coverage, and ensure the
compleAon of land acquisiAon and distribuAon within the prescribed period
provided in R.A. No. 6657, as amended.

CHAPTER 1
Applicability

SECTION 1. Applicability. — These rules and procedures shall govern the acquisiAon and
distribuAon of:
1. All private agricultural lands covered under SecAon 4 of R.A. No. 6657, as
amended, but which have not been issued NoAces of Coverage (NOCs); and
2. Private agricultural lands issued with NOCs but where the list of potenAal
beneficiaries has not been finalized by the Municipal Agrarian Reform Officer
(MARO) concerned as of 1 July 2009.

Chapter 2 DefiniAon of Terms

Chapter 3 Coverage: Schedule, Exclusions, and Special Rules
Chapter 4 NoAce of Coverage
Chapter 5 Voluntary Offer to Sell
Chapter 6 RetenAon, Protest of Coverage, NominaAon of Preferred Beneficiary/ies,
ApplicaAon for ExempAon or Exclusion
Chapter 7 Farmer Beneficiary IdenAficaAon, Screening and SelecAon
Chapter 8 Land AcquisiAon
Chapter 9 Land ValuaAon and Landowner CompensaAon
Chapter 10 Land DistribuAon
Chapter 11 InstallaAon of Agrarian Reform Beneficiaries on Awarded Lands
Chapter 12 Final Provisions
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