ASEC AUGUSTO P.

QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
HISTORY OF AGRARIAN REFORM IN THE PHILIPPINES Page - 1 –

1. OUR ANCESTRAL SOCIETY 3.c.1. Philippine Bill of 1902 3.e.1.b. Purchase of large HACIENDAS for
1. a. Barangay 3.c.2. Land Registration Act of 1902 subdivision in small parcels for
2. b. Classes: (Act 496-Torrens System) tenants;
2. b. 1. Datu or Sultan-dispose 3.c.3. Negotiation Gov. William Taft and Pope 3.e.1.c. NARIC-National Rice & Corn Corp.
2. b. 2. Maharlika or Freeman Leo XIII in 1903-(Friar Lands) established
2. b. 3. Alipin 3.c.4. Public Land Act of 1903 - Homestead 3.f. December 8, 1941 – Second World War.
2.b.3.a. Alipin Namamahay System in the Philippines 3.f.1 Japanese Occupation
2.b.c.b. Alipin Saguiguilid 3.c.5. Cadastral Survey of 1910 3.f.2-HUKBALAHAP Organization
2. ROOTS OF OUR AGRARIAN PROBLEM 3.c.6. Establishment of Agricultural Colonies in 4. SHAKING OFF THE YOKE OF BONDAGE
2.a. 1565 – Miguel Lopez de Legazpi and Urdaneta 1913 4.a.1945- Liberation of the Philippines
– First Spanish settlement in Cebu 3.c.7. Rice Share Tenancy Act of 1933 (Act 4.b. July 4, 1946 – Philippines was declared
2.a.1.They decided to move to Manila for two No. 4054) independent by the Americans
reasons: 3.c.8. Tenancy Act of 1933 – (Sugar) 4.c. HUKS-Associated with present movement-
2.a.1.a. – Pintados 3.d. These measures failed to established “Land Reform” was unmentionable in
2.a.1.b. – Martin de Goite successful agrarian reform as shown by: government quarters.
2.a.2. Death of Rajah Sulayman- 3.d.1. Unsuccessful attempt to buy friar lands 4.d. 1953. Pres. Ramon Magsaysay elected and
Chieftain of Manila 3.d.2. Tenancy doubled by 1935-George Taylor Huk Supremo Luis Taruc surrendered
2.a.3. Rajah Lakandula – Chieftain of 3.d.3. Tension increased between landlord and 4.d.1. Pres. Magsasay introduce
Tondo recognized Spanish tenants the following:
sovereignty 3.d.3.a. Colorum Uprising-Pedro 4.d.1.a. R.A. No. 1199 – Agricultural
2.a.4. Legazpi reassured Lakandula: Calosa, Tayug, Pangasinan – Tenancy Act of 1954
2.a.4.a.-His property will be 1913 4.d.1.b. Court of Agrarian Relations
respected 3.d.3.b. Sakdalista Revolt- 4.d.1.c. Agricultural Tenancy
2.a.4.b. He and other Datus would Benigno Ramos, Cabuyao, Commission (Patents of
be exempt from paying tribute. Laguna-1935 Settlers)
2.a.5 ENCOMIENDA SYSTEM 3.d.4. Formation of Militant Peasant Organization 4.d.1.d. NARRA – Nat. Resettlement
2.a.5a. Spanish Soldiers "Katipunang Pambansa ng Magbubukid ng and Rehabilitation Adm.
2.a.5b. Spanish Settlers Pilipinas”-1924. Seek to Eliminate Usury; 4.d.1.e. ACCFA – Agricultural Credit
2.a.5c. Religious Orders (Magalat Revolt) Increase tenant’s share; Protect, small and Cooperative Financing
2.a.6. Caciques homesteaders: Abolish Cedula Tax and Administration
2.a.7. Inquilinato unite small farmers to liberate the 4.d.1.f. FACOMA – Farmers Cooperative
3. EARLY ATTEMPTS AT AGRARIRAN REFORM IN Philippines. and Marketing Association
THE PHILIPPINES 3.e. Commonwealth Government-Pres. 4.e. 1961 – Pres. Diosdado Macapagal elected
3.a.June 12, 1898 Gen. Emilio Aguinaldo- Manuel L. Quezon 4.e.1. August 8, 1963 – RA 3844 Agricultural
Independence-Republican government 3.e.1. Social Justice Program- Act Nos. 178, 461 Land Reform Code
3.a.1. Confiscation of Friar Lands and 608-sought to establish Agrarian 4.e.1.a. Family-Economic Size
3.b.December 10, 1898 – Treaty of Paris The Philippines Reform by: Farm “Land for the
was ceded by Spain to U.S. U.S. guarantee 3.e.1.a.-Requiring a WRITTEN CONTRACT Landless”
to respect and safeguard the private lands between tenant & landlord; 4.e.1.b.Discourage Absentee
owned by Spaniards Landlordism
3.c. Americans instituted the following reforms: 4.e.1.c. Expropriate big private

landed estates
4.e.1.d. Direct landlord capital to industry
4.f. 1965-1972 – Pres. Ferdinand E. Marcos
4.f.1 RA 6389 – Code of Agrarian Reform-
Sept. 10. 1971.
4.f.2 – September 21, 1972 – Declaration of
Land Martial Law
4.f.3 – P.D. 2 – Entire country as a Land
Reform Area, Sept. 26, 1972
4.f.4 – PD 27 – Tenant Emancipation Decree,
October 21, 1972 –
The historic document broke the
“silence of the century”.
5. THE PHILOSOPHY OF AGRARIAN REFORM
5.a. Philosophy – is a frame of mind, a point of view, or
an organized exposition of rationale to justify the
objectives, materials and processes involved in
an understanding or project to which one may
refer for clarifying questions, doubts, or problems.
5.a.1. MORAL – Holy Bible – Leviticus Chapter 25 –
Inalienable status of land; For mens
Collective Welfare; Cultivatorship means
stewardship of God – given property
5.a.1.a. – KORAN, Sura XXII, Aya 6 – The
Meaning of the Glorious Qur-an” by
Marmaduke Pinkthall says = “unto
him belongeth whatever is in the
heaven and whatsoever is between
them and whatsoever is beneath the
soil.”
Also Sura II, Aya 22
5.a.1.b. Allah owns the land and men are only
steward of the land for the welfare of
mankind.
5.a.1.c. Muslim concept of land ownership is
upheld by MIRAS, the Muslim book
of the Laws on Land
5.a.1.d. Man-made laws in the Philippines are
more liberal than the strict religious
point for
having recognized PRVATE
OWNERSHIP.
5.a.1.e. Pope John III in his Encyclical
“Pacem In Terris” quotes St. Thomas
Aquinas who says “Human law has
the true nature of law only in so far as
it corresponds to right reason, and
therefore is derived from the eternal
law. Insofar as it falls short of right
reason, a law is said to be a wicker
law and so lacking the true nature of
law it is rather a kind of violence.”
5.a.2. Legal – Political Aspect
5.a.2.a. Basis =
1. Philippines Constitution
2.Principle of Democratization of
Wealth and Property
5.a.2.b. Sec. 12 Art. XIV – 1973 Constitution
5.a.2.c. Democratization – simply means the
sharing of private wealth with the entire
society, and this calls for the regulation of
property for collective human ends.
5.a.2.d. The Supreme Court subjected private
ownership to some kinds of restraints and
burdens, upholding agrarian reform and
vesting if formally with legality.
5.a.3. Social Aspect
5.a.3.a. Agrarian Reform is Land Reform Plus
Man Reform
5.a.3.b. Social Justice
5.a.3.c. “Salus populi est suprema lex
5.a.3.d. “Sec utera tuo ut alienum non laedas.
5.a.4. The Economic Aspect
5.a.4.a. Agrarian Reform abolishes share
tenancy which is the root cause of
injustice
5.a.4.b. It uphold the economic tiller of the soil
and protect his freedom against
pernicious and immoral economic
practices.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 2 –
5.a.4.c. It has not merely seek the transfer of
ownership of agricultural lands but
provide him assistance to improve farm
method; make credit available for the
purchase of farm implements, fertilizers
and farm facilities; market his farm
produce and settle his legal problems.
5.a.4.d. Surplus in production
5.a.5. Land Reform and Agrarian Reform
5.a.5.a-Reform connotes change from the
existing agrarian condition of the
country; it implies the existence of
shortcomings and defects which very
urgently necessitate corrective
measures.
5.a.5.b-Land Reform-In a limited sense refer
to Land Ownership-the earth where we
live and which we cultivate.
5.a.5.c.Agrarian Reform-Refers to the
relationship that exist between man
and his land a well as that between
man and fellow countryman. It denotes
not only private ownership of land and
its accompanying problems but all
possible undertaking which will
improve the lot of man, the tiller of the
soil
5.a.5.d. Five components of Agrarian Reform
5.a.5.c.1. Land Tenure Improvement
Program - Regulation of private
ownership of lands
5.a.5.c.2. Physical Development –
Needed infrastructure i.e.
irrigation system, roads, ports,
electrification, school building and
social and recreational facilities.
5.a.5.c.3. Institutional Development
– Establishment of Farmers
Cooperative and organizing
farmers into effective production
units.
 ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 3 –

5.a.5.c.4. Agricultural Development

– aims at increasing the
production capabilities of farmers
especially the emancipated
tenant –tillers
5.a.5.c.5. Human Resource
Development-Clientele and
personal training which aims to
increase the capabilities of the
farmers, the landowner and the
community at large to work
toward growth and increasing the
competencies of the government
worker or change-agent who is
entrusted with the implementation
of the program

THREE STAGES OF AGRARIAN REFORM IN THE PHILIPPINES
SECOND STAGE
FIRST STAGE AGRICULTURAL LEASEHOLD
SHARE TENANCY
Republic Act No. 3844- Agricultural Land
Republic Act No. 1199 – The Agricultural Reform Code- Effectivity August 8, 1963.
Tenancy Act of the Philippines- Effectivity- August
20, 1954 Republic Act. No. 6389-Code of Agrarian
Reform Effectivity – September10, 1971
Presidential Decree No. 1425- Amending
Presidential Decree No. 1040 by Strengthening the
Prohibition against Agricultural Share Tenancy and
Providing Penalties for Violation Thereof -
Effectivity June 10, 1978- Penalties – Two (2) Year
imprisonment or fine of not more than P5000.00 or
both.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 4 –
THIRD STAGE
FULL OWNERSHIP
Presidential Decree No. 27- Tenant's
Emancipation Decree - Effectivity October 21, 1972.
Letter of Instruction No. 474 – Effectivity
October 21, 1976
Presidential Proclamation No. 131 –
Instituting a Comprehensive Agrarian Reform
Program- Effectivity – July 22, 1987.
Republic Act No. 6657 - An Act Instituting a
Comprehensive Agrarian Reform Program to
Promote Social Justice and Industrialization,
providing the Mechanism for its implementation
and other purposes – Effectivity June 15, 1988.

THREE STAGES OF AGRARIAN REFORM IN THE PHILIPPINES
1. First Stage – SHARE TENANCY
1.a. Republic Act No. 1999 -The Agricultural
Tenancy Act of the Philippines (Effectivity-
August 30, 1954)
2.b. Share Tenancy exist whenever two
persons agree on a joint undertaking
wherein one party furnishes the land and
the other his labor, with either or both
contributing any one or several of the items
of production, the tenant cultivating the land
personally with the aid of labor available
from members of his immediate farm
household and the produce thereof to be
divided between the landholder and the
tenant in proportion to the respective
contributions." (Sec. 4. RA 1199)
2.c. "A tenant shall mean a person who himself
and with the aid available from within his
immediate farm household, cultivates the
land belonging to or possessed by,
another, with the latters consent for
purpose of production, sharing the produce
with the landholder under the share
tenancy system, or paying the landholder a
price certain or ascertainable in produce or
in money or both, under the leasehold
tenancy." (Sec. 5, (a), RA 1199
3.d. "A landholder shall mean a person,
natural or judicial, who either as owner,
lessee, usufructuary, or legal possessor,
lets or grant to another the use or
cultivation of his land for a consideration
either in shares under the share tenancy
system or a price certain or ascertainable
under the leasehold tenancy system." (Sec.
5 (b), RA 1199)
3.e. Rules on sharing of crops other than
Rice.
(Sec. 41, Chapter III, RA 1199)
3.e.1 Contract stipulating the ratio of
crop division;
3.e.2 Custom of the place
3.e.3. Minimum share of the tenant is
thirty percent of the harvest of
produce.
3.f. Sec. 14 of the Tenancy Act ( RA 1199),
grants the tenant the option to elect the
leasehold tenancy, whereas Sec. 35 (RA
3844) exempts coconut lands from leasehold.
The inconsistency is resolved by Sec. 172
(RA 3844) which ordains that "all laws or
parts of any law inconsistent with this Code
are hereby repealed. (Rodinas vs. Fuentes,
CA.G.R. Nos. 04595-98-SP, July 16, 1976)
3.g. Essential Elements of Tenancy Relationship
3.g.1. The parties are the
landholder and the tenant
3.g.2. The subject is agricultural land
3.g.3. There is consent
3.g.4. The purpose is agricultural
production
3.g.5. There is personal cultivation
3.g.6. There is sharing of harvest or
payment of rentals. (Caballes
vs. DAR, 168 SCRA 247; Qua vs.
Court of Appeals, 198 SCRA 247.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 5 –
2. Second Stage – AGRICULTURAL
LEASEHOLD
2.a. Republic Act No. 3844 – Agricultural
Land Reform Code (Effectivity – August
8, 1963).
2.b. Parties in Agricultural Leasehold
2.b.1 Landlord/lessor The person (natural
or juridical) who furnishes the land as
2.b.1.a. – Owner
2.b.1.b. – Civil Law Lessee
2.b.1.c. – Usufructuary
2.b.1.d. – Legal Possessor
2.b.2. Tenant-Lessee, The person who
personally cultivate the land with the
aid of labor from his immediate farm
household (Sec. 6, RA 3844)
2.c. The Agricultural Lessor lets or
grants to another the cultivation and
use of his land for a price certain (Sec.
166, (3)., RA 3844
2.d. The Agricultural Lessee, cultivates
the land belonging to or possessed by
another with the latter consent for
purposes of production, for a price
certain in money or in produce or both
(Sec. 166 (2) RA 3844
2.e. "Agricultural Land" means land
devoted to any growth, including but
not limited to crop lands, salt beds,
fish ponds, idle land and
abandoned land (Sec. 166 (1)

2.f. Agricultural Leasehold Contract in
General – The Agricultural/Lessor and
the Agricultural Lessee shall be free to
enter into any kind of terms, conditions
or stipulation in a leasehold contract,
as long as they are not contrary to law,
morals, or public policy. (Sec. 15, RA
3844).
2.f.1. The agricultural leasehold relation
shall be established by:
2.f.1.a. Operation of law in
accordance with Sec. 4,
RA 3844.
2.f.1.b. Orally or in writing,
express or impliedly. (Sec. 5
RA 3844)
2.g.Form and Registration of the
Leasehold Contract:
2.g.1. In writing (quadruplicate)
2.g.2. In a language or dialect known
to the agricultural lessee
2.g.3 Signed or Thumb-marked by the
Agri. Lessee personally and the
Agri. Lessor or his authorized
representative before two
witnesses to be chosen by each
party.
2.g.4. Parties acknowledge the
execution of the contract before
the Justice of the Peace of the
municipality where the land is
situated (No fees is required).
2.g.5. Each party retain a copy.
2.g.6. The Third copy is delivered by
the judge to the Municipal
Treasurer of the place where the
land is located.
2.g.7. The Fourth copy to the Office
of the Agrarian Counsel (Sec.
17, RA 3844).
2.h. The Agricultural Leasehold Contract
shall be conclusive between the
contending parties if not denounced
or impugned within thirty (30) days
after its registration, except, in case of
mistake, violence, intimidation,
undue influence or fraud.
2.i. The agricultural Leasehold Relation is
not extinguished by:
2.i.1. Expiration of the Term or
period in a leasehold contract
2.i.2. Sale, Alienation or Transfer of
the legal possession of the
landholding. The purchaser or
transferee is subrogated to the
rights and substituted to the
obligations of the agricultural
lessor (Sec. 10, RA 3844)
2.j. Rights of the Agricultural Lessee:
2.j.1. Right to Security of Tenure –
To have possession and peaceful
enjoyment of the land (Sec. 71
RA 3844)(Bernardo vs. CA, 168
SCRA 439)
2.j.2 Right to a Homelot (Sec. 24, RA
3844) LOI 705 (June 10, 1978)
2.j.3.Right of the Pre-Emption Agri.
Lessee preferential right to buy
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 6 –
the land under reasonable terms
and conditions (Sec.11, RA 3844)
2.j.4. Right of Redemption The right to
redeem the land at a reasonable
price and consideration if the land is
sold to a third persons without his
knowledge (Sec. 12, RA 3844)
2.j.5. Right to be paid DISTURBANCE
COMPENSATION in case of
approved land use conversion (Sec.
36 (1), RA 3844 as amended by
Sec.7(1), RA 6389)
2.j.6. Right to be imdemnified for the
cost and expenses in the
cultivation and for the expenses
incidental to the improvement of the
crops in case the lessee surrenders,
abandons for a just cause or is
ejected without court order. (Sec. 25,
RA 3844)
2.j.7. To manage and work on the land in
manner and method of cultivation
and harvest which conform to
proven farm practices. (Sec. 23.
(2), RA 3844)
2.j.8. To mechanize all or any phase of
his farmwork (Sec. 23, (3) RA 3844)
2,j.9. To deal with millers and
processors and attend to the
issuance of quedans and warehouse

receipts of the produce due him/her
(Sec. 23 (4), RA 3844
2.k. Obligation of the Agricultural Lessee (Duties
and Responsibilities (Sec. 26. RA 3844)
2.k.1. Cultivate and Take care of the
farm, growing crops & other
improvements. Perform all work in
accordance with the proven farm
practices.
2.k.2. Inform the lessor of trespass
committed by 3rd persons w/o
prejudice to his direct action against
the trespasser.
2.k.3.Take reasonable care of work
animals and farm implements
delivered to him by the lessor and
see to it that it is not used for
purposes than, those intended or by
another without the knowledge and
consent of the lessor
2.k.4 Keep the farm and growing crops
attended to during the work
season.
2.k.5. To pay the lease rentals to the
lessor when it falls due.
2.l. Rights of the Agricultural Lessor (Sec. 29. RA
3844)
2.l.1. To Inspect and observe the extent
of compliance with the terms and
conditions of the leasehold
contract
2.l.2. To Propose a change in the use of
the landholding to other
agricultural purposes, or in the
kind of crops planted
2.l.3. To require the lessee, to adopt
proven farm practices necessary to
the conservation of the land,
improvement of the fertility and
increase in productivity;
"Proven farm practices" means
sound farming practices generally
acceptable through usage or
officially recommended by the
Agricultural Productivity
Commission for a particular type of
farm. (Sec., (11), RA 3844)
2.l.4. To Mortgage Expected rentals.
2.m. Prohibition on the Agricultural Lessor (Sec.
31, RA 3844)
2.m.1. To dispossess the agricultural
lessee of his/her landholding except
upon authorization by the Court
under Sec. 36.RA 3844
2.m.2.To require the lessee to assume,
directly or indirectly the payment of
taxes or part thereof levied the
landholding.
2.m.3.To require the lessee to assume,
directly or indirectly any, rent,
"canon" or other obligation of the
lessor to a third party
2.m.4.To deal with millers or processors
without a written authorization of the
lessee in case the crop has to be
sold in a processed form before
payment of lease rentals.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 7 –
2.m.5.To discourage, directly or indirectly,
the formation, maintenance or
growth of unions or organizations of
lessee in his/her land.
2.m.6 (New) For coconut lands,
indiscriminate cutting of coconut
tree will be deemed a prima facie
evidence of intent to eject his tenant
from his landholding unless there is a
CERTIFICATION by the PCA or
RESOLUTION from the Municipal
Board, allowing the cutting for valid
reason. (A.0.5.S. 1993, A.O. 16.S.
1989).
2.n. Consideration for the Lease of
Agricultural lands
2.n.1. Not more than 25 per centum
of the average normal harvest
during the three agricultural
years immediately preceding the
date the leasehold was
established.
2.n.2. Deductible items
2.n.2.a. Seedlings
2.n.2.b. Cost of Harvesting
2.n.2.c. Cost of Threshing
2.n.2.d. Cost of Loading
2.n.2.e. Cost of Hauling
2.n.2.f. Cost of Processing
2.n.3. If the land is cultivated for a
period of less than three years,
the initial consideration is
based on the average normal
harvest during the preceeding
years when the land was
actually cultivated or on the

harvest of the first year if newly
cultivated, and the harvest is
normal.
2.n.4. After the lapse of the first three
normal harvest, the final
consideration shall be based
on the average normal harvest
during these three preceding
agricultural years.
2.n.5. In the absence of any
agreement as to the rental, the
maximum allowed shall be
applied.
2.n.6. If capital improvement is
introduced not by the lessee to
increase productivity, the rentals
shall be increased proportionally
to the consequent increase in
production due to the
improvement.
2.n.7. In case of disagreement the
Court shall determine the
reasonably increase in rental.
2.n.8. Capital improvement refers
to any permanent and tangible
improvement on the land that
will result in increased
productivity. If done with the
consent of the lessee, then the
lease rental shall be increased
proportionately.
2.o.. Sec. 36, RA 3844, Possession of
Landholding; Exceptions. = The
agricultural lessee shall continue in the
ENJOYMENT and POSSESSION of his
landholding except if his dispossession
is authorized by the Court in a judgment
that is final and executory if after due
hearing it is shown that =
2.0.1. The agricultural lessor-owner or a
member of his family will personally
cultivate the landholding (Amended
by Sec. 7, RA 6389; Sequi vs.
Vera, CA-G.R. No. 00975-R. Oct.
22, 1975). Or will convert the land-
holding into residential, factory,
hospital, school site or other
useful non-agricultural purposes.
Provided that Disturbance
Compensation equivalent to five
times the average of the gross
harvest on his landholding during
the last five preceding calendar
years (Sec. 7, RA 6389
(Amendment) The tenant have the
right to demand possession and
claim damages if the landholder is
in Bad Faith by not cultivating the
land himself for three years or
fails to substantially carry out
such conversion within one year
after the dispossession of the
tenant
2.o.2. The agricultural lessee failed to
substantially comply with any of
the terms an conditions of the
contract or any provision of this
Code unless his failure is causes
by fortuitous event or force
majeure.
2o.3. The agricultural lessee planted
crops or used the landholding
for a purpose other than what
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 8 –
had been previously agreed
upon.
2.o.4. The agricultural lessee failed to
adopt proven farm practices.
2.o.5. The land or other substantial
permanent improvement is
substantially damaged or
destroyed or has unreasonably
deteriorated through the fault or
negligence of the agricultural
lessee
2.o.6. The agricultural lessee does not
pay the lease rental when it falls
due provided that if non-payment is
due to crop failure to the extent
of 75% as a result of fortuitous
event, it cannot be a ground for
dispossession although the
obligation to pay the rental due that
particularly crop is not thereby
extinguished.
2.o.7. The lessee employed a sub-
lessee on the landholding.
2.p. Extinguished of Agricultural Leasehold
Relations (Sec. 8. RA 3844) The
agricultural leasehold relations
established under the Code shall be
extinguished by=
2.p.1.ABANDONMENT of the
landholding without the knowledge
of the agricultural lessor. (Teodoro
vs. Macaraeg, 27 SCRA 7 (1969)
To constitute abandonment there
must be an absolute
relinquishment of the premises
of the tenant. This "overt act"
must be coupled with his intention

to do so "which is carried into
effect," (Philippine Labor and
Social Legislation, Martin, 70 Ed.
Pp. 405-406). Abandonment to
validly terminate tenancy
relationship is characterized by:
(a) an INTENT to ABANDON, and
(b) an OVERT ACT to carry out
such intention
There must be, therefore, NO
ANIMUS REVERTENDI on the part
of the tenant (Labor, Agrarian and
Social Legislation, Montemayor, 2nd
Ed., 1968, pp. 54-55)
2.p.2. VOLUNTARY SURRENDER of
the landholding by the agricultural
lessee, written notice of which
shall be served three months in
advance (Nisnisan, et al., vs. CA,
294 SCRA 173 (1998).
As a mode of extinguishing
tenancy relationship it connotes a
decision in the part of the tenant
to return the possession of the
landholding and relinquished his
right as tenant thereon
uninfluenced by any compelling
factor, coming particularly from
the landholder. For surrender to
be valid, there must be (a) an
intention to abandon, and (b) an
external act or an omission to
act, by which such intention is
carried out into effect. When a
tenant voluntarily yield the land,
he terminates the tenancy
relationship by his unilateral act.
(Annacleto Inson vs. B. Planas de
Asis, et al. Ca GR No. Sp-01769.
Oct. 11, 1974.
2.p.3. Absence of a person under
Sec. 9 to succeed to the lessee
in the event of death or
permanent incapacity of the
lessee
2.p.3.a. Succession in Agricultural
Leasehold Relation:
Ground: Death or Permanent
Incapacity = Who succeeds =
Person chosen by the
agricultural lessor within one
month from death or permanent
incapacity from among the
following =
a) Surviving spouse;
b) The eldest direct descendant
by consanguinity;
c) The next eldest descendant
or descendants in the order
of their age.
If the death or permanent
incapacity occurs during the
agricultural year such choice shall be
exercised at the end of the
agricultural year.
If the Agricultural Lessor fails to
exercise his choice within the one
month period, the PRIORITY shall be
in accordance with the order herein
established.
In case of death of the agricultural
lessor, the leasehold shall bind his
legal heirs.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 9 –
2.q. The lessor who Ejects his tenant
without Court authorization
shall be liable for:
2.q.1.Fine or Imprisonment
2.q.2.Damages suffered by the
agricultural lessee in addition
to Fine or Imprisonment for
unauthorized dispossession
2.q.3.Payment of Attorney's
Fees incurred by the lessee
2.q.4.The Reinstatement Of The
Agricultural Lessee
2.r. Other related Laws and Issuances
2.r.1. P.D. No. 152 (March
31,1973), Prohibits the
employment or use of share-
tenants in complying with the
requirements of the law
regarding entry, occupation,
improvement and
cultivation of public lands.
2.r.2. P.D.. No. 583 (November
10, 1974), prescribed penalty
for the unlawful ejectment,
exclusion, removal or ouster
of tenant-farmers from their
landholdings
2.r.3. P.D. No. 816 (October 21,
1976) penalized any
agricultural lessee of rice and
corn lands under PD 27 who
deliberately refuses or
continue to refuse to pay
rentals or amortization
when they are due and
remain unpaid within a
period of two years.
 ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 10 –

2.r.4. P.D. No. 1425 (June 10, Agricultural Leasehold and the of five (5) hectares if not
1979) strengthened the Determination of Lease Rental irrigated and three (3)
prohibition against the for Tenanted Lands. hectares if irrigated.
practice of share tenancy This AO supersedes AO 3.d.3. The landowner may retain an area
and providing penalties No. 04, S 1989, AO 09, S.1991 of not more then seven (7)
thereof. Under this Decree and AO 04, s. 1992. hectares if he is cultivating such
any tenant who refuses to 3. Third Stage – FULL OWNERSHIP BY area or will now cultivate it.
enter into leasehold contract TENANT-BENEFICIARY. 3.d.4. The value if the land shall be
may be prosecuted before 3.a. Presidential Decree No. 27- equivalent to two and one half (2-
the Court of Agrarian Tenant's Emancipation Decree 1/2) times the AVERAGE
Relations. (Effectivity-October 21, 1972 HARVEST OF THREE NORMAL
2.r.5. P.D. No. 1040 (October 21, 3.b. Presidential Decree No. 2 - CROP YEARS IMMEDIATELY
1976) prohibited and (Effectivity – September 27, 1972) PRECEDING THE
penalized the contracting of Proclaiming the entire country as a PROMULGATION OF THIS
share tenants in all Land Reform Area. DEGREE.
agricultural land covered by 3.c. Reason for the Decree – The 3.d.5. The tenant shall pay for THE COST
P.D. 27. old concept of land ownership by a OF THE LAND, including interest
2.S. Administrative Orders covering few has spawned valid and of six (6) percent per annum in
Leasehold implementation legitimate grievances that gave rise FIFTEEN (15) YEARS of fifteen
2.s.1. DAR Administrative Order to violent conflict and social (15) equal annual amortizations.
No. 5 s. 1997 – Rules and tension. NOTE: The period is extended
Regulations Governing the 3.d. Salient features of Presidential to twenty (20) years equal
Lease of Lands Planted to Decree No. 27. annual amortization under Sec.
Palm Oil Trees and the 3.d.1. It applies to TENANT-FARMERS 6, E.O.. 228 of July 17, 1987 by
Determination of Lease Rental of private agricultural lands Pres, Corazon C. Aquino.
under Lease Arrangement, primarily devoted to rice and 3.d.6. The FARMER'S COOPERATIVE
Amending Administrative Order corn under a system of share- pays the amortization if the tenant
No. 11, Series of 1988 crop or lease tenancy, whether defaults in payment of amortization.
2.s.2. DAR Administrative Order No. classified as land estate or The cooperative shall have a RIGHT
4, S. 1997-Guidelines on the not. OF RECOURSE against the
withdrawal of Farmers- NOTE: Elements of member tenant.
Beneficiaries Lease Rentals/ Traditional Utility and 3.d.7. The TITLE to the land owned by
Amortization Payments suitability of land as rice or the tenant shall not be
Deposited with the LBP corn land (Code transferable except BY
2.s.3. DAR Administrative Order No. Commission, PD 946) HEREDITARY SUCCESSION or
05, s. 1993-Rules and 3.d.2. The tenant-farmer is DEEMED TO THE GOVERNMENT in
Procedures Governing OWNER of a family size farm accordance with this Decree, the

Code of Agrarian Reform and
other existing laws and
regulation.
NOTE: Sec. 6, EO 228
provides, "Ownership of lands
acquired by farmer-beneficiary
may be transferred after full
payment of amortization.
3.d.8. The Department of Agrarian
Reform through its Secretary is
hereby empowered to promulgate
rules and regulations for the
implementation of this Decree.
3.e. Presidential Decree No. 27 was assumed to
be constitutional and upheld as part and
parcel of the law of the land in De Chavez
vs. Zobel 55 SCRA 26 and survived the test
of constitutionality in Gonzales vs Estrella,
91 SCRA 294 (1979), Finally, in Association
of Small Landowners in the Philippines, Inc.
vs. Secretary of Agrarian Reform, 175
SCRA 342 (1989) all assault on the validity
of PD 27, RA 6657, etc, was ultimately set
aside.
3.f. Presidential Decree prohibiting the Illegal
Ejectment of tenant-tillers.
3.f.1. PD 316 (October 22, 1973) applies to
tenant-farmers in agricultural lands
primarily devoted to rice and corn.
No judge/hearing officer of
CAR, CFI, Municipal or City Court,
Fiscal or hearing offices shall take
cognizance of any ejectment case or
any case designed to harass a
tenant unless certified by the
Secretary of DAR as a proper case
for trial or hearing after a
preliminary determination of the
relationship between the parties is
conducted by DAR in a referral
made by the court or hearing officer.
DAR Memorandum, Circular
No. 29 (December 6, 1973) is the
implementing guidelines of PD 316
Issues to be resolved.
a. Whether or not one party is
a tenant-farmer,
b. Whether or not the land
is planted to rice ad/or
corn;
c. Whether or not the action
involves the ejectment, or
is designed to harass or
remove the actual tiller, the
tenant-farmer;
d. In criminal cases, whether
or not the crime complained
of arose out of or is
connected with agrarian
relations.
3.f.2. PD 583 (November 16, 1974) Prescribing
penalties for the unlawful EJECTMENT,
EXCLUSION REMOVAL or OUSTER of tenant-
farmers from this farmholdings.
3.f.2.a. Who are liable under the Decree -
1. Any judge of the CAR, CFI, Municipal
Court or any fiscal or investigating
officer, including members of the Armed
Forces of the Philippines, WHO SHALL
ORDER the ejectment, exclusion,
removal or ouster or shall take
COGNIZANCE of an ejectment case or one
designed to eject, exclude, remove or
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 11 –
oust a tenant-farmer without referring the
case to the DAR pursuant to PD 316.
(Penalty = Prison Mayor and Perpetual
Absolute Disqualification.
2. Any officer or employee of the government
including members of the Armed Forces of
the Philippines WHO EXECUTES an order
for the ejectment, exclusion, removal or
ouster of tenant-farmers, knowing that the
order is unlawful (Penalty-Prison
Correctional and Perpetual Absolute
Disqualification.
3.Any landowner who CONVERTS his
tenanted land primarily devoted to rice and
corn into non-agricultural use or to the
production of the other crops to avoid the
application of the land reform laws or
decrees to the landholding and to
dispossess his tenant-farmers, except if
previously authorized by the Secretary of
Agrarian Reform, (Penalty-Prison Mayor or
FINE him P5,000.00 to P10,000.00 or both
(Also PD 815, Oct. 21, 1975)
3.f.3 PD 1038 (October 21, 1976) Strengthening
the Security of Tenure of tenant-tillers in NON-
RICE/CORN producing private agricultural
lands.
3.f.3.a. Who are liable under the Decree=
1. Judge or Fiscal or Hearing officer who
TAKES COGNIZANCE or ORDERS the
ejectment, exclusion, removal or ouster of
tenant-tillers without securing the
certification of the Secretary of DAR that the
case is proper for trial or hearing;
2. Any officer or employee of the
government, including members of the

Armed Forces of the Philippines, who,
EXECUTES an order for the ejectment,
exclusion, removal or ouster of tenant-tillers
knowing that said order is unlawful.
3. Any landowner, landholder, agricultural
lessor or anybody acting for and in their
behalf who by an act, scheme, or strategy
eject, exclude, remove or oust a tenant-
tiller from his landholding in contravention of
this Decree.
3.g.Presidential Decree NO. 226 (August 4,
1973) Mechanics of Registration of
Ownership and/or Title to land under
PD No. 27.
3.g.1.All CLTs issued pursuant to PD 27
shall be FILED by DAR and
RECORDED with the LRA and
TRANSMITTED to ROD of the province
or city where the land is located. If
registered land the DAR shall indicate
the number of ORIGINAL OR
TRANSFER CERTIFICATE OF THE
TITLE.
3.g.2. The ROD shall RECORD in the
PRIMARY BOOK and ANNOTATE A
MEMORANDUM in the Certificate of
Title covering the land, with need of
PRIOR SURRENDER of the owner's
duplicate Certificate of Title. It shall be
the DUTY of the ROD to notify the
landowner of such fact within a
reasonable time.
It the land is NOT REGISTERED
under the Torrens System the ROD
shall RECORD the CLT in the
PRIMARY ENTRY BOOK and in the
REGISTRATION BOOK for
unregistered lands under Act 3344.
3.g.3. An EMANCIPATION PATENT and/or
GRANT shall be issued by the DAR if the
tenant-farmer shall have fully complied
with the requirement for a grant or
title under PD 27. The title is based on a
duly approved survey plan.
If the land is under the Torrens
System, the EP if filed with the ROD,
shall constitute conclusive authority
for him to enter a TCT in accordance with
the patent/grant.
The ROD before cancelling the
original of the certificate of title and
issuing a new one in favor of the tenant-
grantee shall require the registered
owner or person in possession of the
title to SURRENDER THE OWNER'S
DUPLICATE FOR CANCELLATION,
within a reasonable period. If the owner
or party withholding such duplicate
certificate REFUSE or FAIL TO
SURRENDER within 30 days from and
after receipt of notice the ROD shall be
AUTHORIZED TO CANCEL the
ORIGINAL as well as the OWNER'S
DUPLICATE CERTIFICATE OF TITLE
and in lieu thereof issue a NEW ONE
with the corresponding OWNERS
duplicate, in favor of the tenant-
grantee.
If the patent or grant affects
UNREGISTERED LANDS, the filing of
the EP with the ROD of the province or
city where the land is situated, shall bring
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 12 –
the land under the operation of ACT 496,
and the same shall be considered
registered land. It is the duty of the
RODs, after entry of the patent/grant in
the REGISTRATION BOOK to ENTER
an ORIGINAL CERTIFICATE OF TITLE
for such registered land and issue an
owner's duplicate certificate to the tenant-
grantee.
3.g.4. No FEE, PREMIUM, or TAX of any kind
shall be charge or imposed in
connection with the ISSUANCE and
REGISTRATION of documents and titles,
nor shall postage dues and mailing
charges be required in all matters
connected with the implementation of this
Decree.
3.h. RULES ON COVERAGE OF LANDS UNDER PD
27.
3.h.1. Rule 1
Landed estates or landholdings larger than 24
hectare (LOI 46 (December 7, 1972) - covered
by OLT and there is no retention to the
landowner.
3.h.2. Rule 2
Landholding of 24 hectares or less (but above 7
hectares (LOI 46 (ibid) and LOI 227 (November
16, 1974) covered by OLT but landowner is
entitled o retention except if LOI 474 (October
21, 1976) applies.
3.h.3. Rule 3
Landholding of 7 hectares or less is EXEMPTED
from OLT except if LOI 474 is applicable i.e.

3.h.3.a. Landowner owns other agricultural
land of more than seven hectares in
aggregate area, or
3.h.3.b. He owns COMMERCIAL, INDUSTRIAL,
RESIDENTIAL or URBAN LAND
where he derive an adequate income,
DAR Memo, Circular No. 11, s. 1978
(April 21, 1978) adequate income is
at least FIVE THOUSAND (P5000.00)
PESOS per annum. (gross income).
II. 3.i. Republic Act No. 6657 – Comprehensive
Agrarian Reform Law of 1988 (CARL 1988 (Sec.
1. RA 6657).
3.i.1.. Principles and Policies of the CARL. (See
2, RA 6657)
3.i.1.a. The WELFARE of the landless
farmers and farmworkers will receive the
highest consideration of the state to
promote social justice (1st par.)
This will enhance their dignity and
improve the quality of their lives
through greater productivity of agricultural
lands.
3.i.1.b. The vision of the law is to attain:
a. Agrarian Reform
b.RURAL DEVELOPMENT, and
c. Industrialization (1st par.)
3.i.1.c.The establishment of OWNER-
CULTIVATORSHIP of ECONOMIC SIZE
FARM is the basis of Philippine Agriculture,
(1st par.)
3.i.1.d.There will be an EQUITABLE
DISTIRBUTION OF LANDS but with due
regard to the rights of landowners to
JUST COMPENSATION. (2nd par.)
3.i.1.e. * The agrarian reform program is founded
on the right of farmers and regular
farmworkers, who are landless, TO OWN
directly or collectively the land they till or
in the case of other farmworkers to
receive a JUST SHARE of the fruits
thereof. (3rd Par.)
The state shall encourage and undertake
the JUST DISTRIBUTION OF ALL
AGRICULTURAL LANDS, subject to the
PRIORITIES and RETENTION LIMITS set forth in
this Act, taking into account ECOLOGICAL,
DEVELOPMENTAL and EQUITY consideration
and subject to the payment of JUST
COMPENSATION. (3rd par.)
The state shall apply the principles of
AGRARIAN REFORM OR STEWARDSHIP in the
disposition or utilization of the other natural
resources, including lands of the public domain,
under lease or concession suitable to agriculture,
subject to PRIOR RIGHTS, HOMESTEAD
RIGHTS of small settlers and the rights of
INDIGENOUS COMMUNITIES to their ancestral
lands (5th par)
Ancestral lands of each indigenous
cultural community shall include, but not be
limited to lands in the actual, continuous and
open possession and occupation of the
community and its members.
The State may RESETTLE landless
farmers and farmworkes in its OWN agricultural
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 13 –
estates, which shall be distributed to them in the
manner provided by law (6th par).
The state shall encourage the formation
and maintenance of ECONOMIC-SIZE FAMILY
FARMS to be constituted by individual
beneficiaries and small landowners (7th par.).
The state shall protect the RIGHTS OF
SUBSISTENCE FISHERMEN, especially of local
communities, to the PREFERENTAL USE OF
COMMUNAL MARINE, and FISHING
RESOURCES, both inland and offshore. It shall
provide support to such fishermen through
APPROPRIATE TECHNOLOGY & RESEARCH,
ADEQUATE FINANCIAL, PRODUCTION AND
MARKETING ASSISTANCE and OTHER
SERVICES. The state shall also protect, develop
and conserve such resources. The protection
shall extent to OFF-SHARE FISHING GROUNDS
of subsistence fishermen against foreign
intrusion. Fishworkers shall receive a JUST
SHARE from their labor in the utilization of marine
and fishing resource. (8th par.)
THE STATE SHALL BE GUINDED BY
THE PRINCIPLE THAT "LAND HAS A SOCIAL
FUNCTION AND LAND OWNERSHIP HAS A
SOCIAL RESPONSIBILITY." Owners of
agricultural land have the obligation to cultivate
directly or through labor administration the
lands, they own and thereby make the land
productive (9th par).
The state shall provide incentives to
landowners to INVEST the proceeds of the
agrarian reform program to promote
INDUSTRIALIZATION, EMPLOYMENT, and
PRIVATIZATION of public sector enterprises. (10th
par).

The state may LEASE undeveloped
lands of the public domain to qualified entities
for the development of capital-intensive farms
and traditional and pioneering crops especially
those for export subject to the prior rights of the
beneficiaries under this Act. (11th par.)
3.j. COVERAGE OF CARL 1988
3.J.1. Scope – All PUBLIC and PRIVATE
Agricultural lands regardless of tenurial
arrangement and commodity produced,
including lands of the public domain
suitable for agriculture. (1st par. Sec. 4, RA
6657)
Specific lands covered by CARP.
a. All alienable and disposable
lands of the public domain
devoted to or suitable for
agriculture
b. All lands of the public
domain in excess of the
specific limits as
determined by Congress in
the preceding paragraph;
c. All other lands owned by
the Government devoted
to or suitable for
agriculture; and
d. All private lands devoted to
or suitable for agriculture
regardless of the
agricultural products
raised or that can be raised
thereon.
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 14 –
3. K. PRIORITIES – The DAR, in coordination with the crops in accordance with Sec. 6,
PARC shall plan and program the acquisition and Art. XIII of the Constitution;
distribution of all agricultural lands through a 3. All public agricultural lands
period of ten (10) years from the effectively of this which are opened for new
Act. Land shall be acquired and distributed as development and resettlement;
follows: and
Phase One:1.Rice and corn land under PD 27; 4. All private agricultural lands in
2. Idle and abandoned lands excess of fifty (50) hectares
3. Private lands voluntarily These shall be distributed
offered by the owners for immediately upon the effectivity
agrarian reform of the Act, with the
implementation to be completed
4. Foreclosed land by within a period of not more than
government financial four (4) years.
institutions;
5. Land acquired by the Phase Three: All private AGRICULTURAL
Presidential Commission on LANDS commencing with LARGE
Good Government; and landholdings and proceeding to MEDIUM and
6. All other lands owned by the SMALL landholding under the following
schedules:
Government devoted to or
a) Landholdings ABOVE 24 hectares up
suitable for agriculture
to 50 hectares to begin on the forth
These shall be acquired year from effectivity of this act and
and distributed immediately
to be completed within three years;
upon effectivity of the Act, with and,
the implementation to be
b) Landholdings from the RETENTION
completed within a period of not LIMIT up to 24 hectares, to begin on
more than four (4) years (Sec. 7,
the sixth year from effectivity of
par. 2, RA 6657) this Act and to be completed within
Phase Two:
four year.
1. All Disposable and alienable
public agricultural lands; The PARC, upon the recommendation of
2. All Arable public agricultural the PARCCOM may declare certain
lands under agro-forest, pasture provinces or regions as PRIORITY LAND
and agricultural leases already REFORM AREAS, in which case the
cultivated and planted for acquisition and distribution of PRIVATE

AGRICULTURAL LANDS may be ahead of
the above schedules.
In effecting the Transfer of Land
PRIORITY must be given to lands that are
tenanted:
3.L. What lands are not covered by CARP
3.L.1 Those which are not suitable for
agriculture or those which are classified as
mineral, forest residential, commercial or
industrial lands. (Sec. 3. ©, RA 6657);
3.L.2. Those which have been classified and
approved as NON-AGRICLTURAL prior to
June 15, 1988. (DOJ Opinion No. 44, S.
1990)
3.L.3. Those which are EXEMPT pursuant to Sec.
10, RA 6657.
3.L.4. Those which are devoted to poultry, swine
or livestock-raising as of June 15, 1988
pursuant to the Supreme Court ruling on Luz.
Farms vs. The Hon. Secretary of Agrarian
Reform (192 SCRA 51);
3.L.5. Fishponds and prawn farms exempted
pursuant to R.A. No. 7881, and its
implementing Administrative Order No. 3,
Series of 1995;
3.L.6. Those which are retained by the
landowners;
3.L.7. Those lands or portions thereof under the
coverage of EO 407 but found to be no
longer suitable for agriculture and therefore,
could not be given appropriate valuation by
the LBP as determined by DAR/LBP; and
3.L.8.Those lands declared by Presidential
Proclamations for certain uses other than
agricultural.
3.m. What lands are EXEMPT from CARP coverage?
3.m.1 Lands ACTUALLY, DIRECTLY and
EXCLUSIVELY used for parks, wildlife,
forest reserves, reforestation, fish
sanctuaries and breeding grounds,
watershed and mangroves.
3.m.2. Private lands actually, directly and
exclusively used for prawn farms and
fishponds, provided that the same have
not been distributed and CLOAs issue to
agrarian reform beneficiaries.
3.m.3. Land actually, directly and exclusively
used and found to be necessary for
national defense, school/sites and
campuses, including experiment farm
station operated by public or private
schools for educational purposes, seed
and seedlings research and pilot
production centers, church sites and
convents appurtenant thereto, mosque
sites and Islamic centers appurtenant
thereof, communal burial grounds and
cemeteries, penal colonies and penal
farms actually worked by the inmates,
government and private research and
quarantine centers and all lands with
eighteen percent (18%) slope and over,
except those already developed. (see 10,
RA 6657)
3.n.RETENTION LIMITS (Sec. 6, RA 6657)
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 15 –
3.n.1. Rules and Procedures Governing the
Exercise of Retention Rights by
Landowners and Award to children under
Sec. 6 of RA 6657 (A.O. No. 11, Series of
1990; and A.O. No. 2, S. 2003)
A. Landowners whose landholding are
covered by CARP may retain an area
of FIVE (5) hectares.
In addition, each of his children,
(legitimate, illegitimate or adopted may
be AWARDED three (3) hectares as
PREFERRED BENEFICIARY
provided-
1. That the child was at least 15
years of age on the June 15, 1988
(RA 6657-effectivity); and
2. The child was actually tilling the
land or directly managing the
farmland from June 15, 1988 to
the filing of the application for
retention and/or at the time of
acquisition of the land under
CARP.
B. The landowner, has the RIGHT TO
CHOOSE the area to be retained by
him which shall be COMPACT and
CONTIGUOUS and least prejudicial to
the entire landholding and the majority
of the farmers thereof;
C. The landowner has the OBLIGATION
to cultivate the land directly or
through labor administration, and
thereby make the land productive.
D. If the area selected by the landowner
for retention is TENANTED, the tenant
shall have the OPTION to choose
whether to REMAIN AS LESSEE or

BE A BENEFICIARY in same or
another agricultural land with similar or
comparable feature. The tenant must
exercise the option within one year
form the time the landowner manifest
his choice of the area for retention.
E. Retention of husband and wife:
1. For marriages covered by the New
Civil Code, the spouses who owns
only CONJUGAL PROPERTIES
may retain a total of five (5)
hectares unless there is an
agreement for the JUDICIAL
SEPARATION OF PROPERTIES.
However, if either or both of them
are landowners in their respective
rights (capital and/or paraphernal).
They may retain not more than five
(5) hectares each from their
respective landholdings. In no case,
however, shall the total retention of
such a couple exceed 10 hectares,
and
2. For marriage covered by the New
Family Code (August 3, 1988), a
husband owning capital property
and/or a wife owning paraphernal
property may retain not more than
five (5) hectares each provided
they execute a JUDICIAL
SPERATION OF PROPERTIES
prior to entering the marriage. In
the absence of such an agreement
all properties (capital, paraphernal
and conjugal) shall be considered
held in absolute community,
therefore, only a total of five (5)
hectares may be retained.
3.n.2.b. Landowners who filed their application for
F. The original homestead grantees or direct
compulsory heirs who still owns the original
homestead at the time of the approval of RA
6657 may retain the same area as LONG
AS THEY CONTINUE TO CULTIVATE THE
SAID HOMESTEAD.
3.n.2 Right of Retention by Landowners under
Presidential Decree No. 27. Supplemental
Guideline A.O. No. 04, Series of 1991).
The policy statements are as follows:
3.n.2.a. Landowners covered by PD 27 are
entitled to retain SEVEN hectares,
except those whose entire tenanted rice
and corn lands are subject to acquisition
and distribution under OLT.
AN OWNER MAY NOT RETAIN
UNDER THE FOLLOWING CASES:
3.n.2.c. A landowner WHO HAS DIED must have
a) If he as of October 21, 1972 owned more
than 24 hectares of tenanted rice or corn
lands; or
b) By virtue of LOI 474, if he as of 21
October 1972 owns less than 24
hectares of tenanted rice but additionally
owned the follows =
 Other agricultural land of more
than seven hectares, whether
tenanted or not, whether cultivated
or not, and regardless of the
income derived therefrom; or
 Land use for commercial,
industrial, residential or other
urban purposes, from which he
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 16 –
derives adequate income to
support himself and his family
retention BEFORE 27 August 1985, the
deadline set by Administrative Order No. 1,
Series of 1985, may retain not more than
seven hectares of their landholding covered
by PD 27 regardless of whether or not they
complied with LOI Nos. 41, 45, and 52.
Landowners who filed their application
AFTER 27 August 1985 but complied with the
requirement of LOI No. 41, 45 and 52 shall
likewise be entitled to such a seven hectares
retention area.
However landowner who filed their
application for retention AFTER the 27 August
1985 deadline and DID NOT COMPLY with
the requirements of LOI Nos. 41, 45, and 52
shall only be entitled to a maximum of five (5)
hectares as retention area.
manifested during his lifetime his intention
to exercise his right of retention prior to 23
AUGUST 1990 (The finality of the Supreme
Court decision in the case "Association of Small
Landowners of the Philippines, Inc. et al. vs.
Honorable Secretary of Agrarian Reform) to
allow his heirs to now exercise such right
under these Guidelines. Said heirs must show
proof of the original landowners intention.
The heirs may also exercise the original
landowners' right of retention if they can prove
that the decedent HAD NO KNOWLEDGE of
OLT coverage over the subject property.

3.n.2.d. A landowner is DEEMED TO HAVE WAIVED
his right of retention by the performance of
ANY of the following acts.
a. Signing the LTPA-FU covering the
subject property;
b. Entering into a DIRECT-PAYMENT
SCHEME AGREEMENT as evidence by a
Deed of Transfer over the subject
property; and
c. Signing/Submission of other documents
indicating CONSENT to have the subject
property covered, such as the form letter
of the LBP on the disposition of the cash
and band portion of a land transfer claim
for payment, and the Deed of
Assignment, Warranties and
Undertaking executed in favor of the
LBP.
Under A.O.2. Series of 2003, The
following are act or omission constituting
WAIVER of his right to exercise his right of
retention:
a) Failure to manifest an intention for
exercise his right to retain WITHIN SIXTY
(60) calendar days from receipt of CARP
coverage.
b) Failure to state such intention upon offer
to sell or application under VLT/DPS
scheme.
c) Execution of a document stating that he
expressly WAIVED his right to retain. The
MARO/PARO/RD shall ATTEST to the due
execution of the document.
d) Execution of a LTPA-FU or application to
Purchase and Farmer's Undertaking
(APFU) covering subject property.
e) Entering into VLT/DPS or VOS but
FAILING TO MANIFEST an INTENTION
TO EXERCISE HIS RIGHT TO RETAIN
upon filing of the application for VLT/DPS
or VOS.
f) Execution and submission of any document
that he is CONSENTING to the CARP
coverage of his entire landholding;
g) Performing any act constituting ESTOPPEL
BY LACHES which is the failure or
neglect for an unreasonable length of
time to do that which he may have done
earlier by exercising due diligence
warranting a presumption that he
abandoned his right or declined to
assert it.
3.n.2.e. All rights previously acquired by the tenant-
farmers under PD 27 are RETAINED and
RECOGNIZED.
3.n2.f. A landowner who owns lands other than rice
and corn shall be PERSUADED TO SELECT
the area he will retain from the "OTHER LAND"
to prevent or minimize the possible
dislocation of farmer-beneficiaries who have
been issued CLTs or EPs.
3.n.2.g. Where there are CLT or EP holders in the area
to be retained the DAR shall immediately
INFORM the tenants and provide them the
opportunity to DISPUTE OR CONTEST the
landowners claim, Moreover, the DAR shall
ensure that the affected tenants should they so
desire, will be given PRIORITY in the distribution
of other land of the landowners or other lands
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 17 –
identified by the DAR for redistribution, subject
to right of those clearly in place.
The tenants may OPT to remain in the
retained area as leaseholders, in which case,
the required lease agreements shall be
executed in accordance with existing laws, rules
and regulations. The tenant must exercise this
option within a period of one (1) year from the
time the landowners manifests his choice of the
area for retention .
3.n.3. Period to Exercise Right of Retention under
RA 6657 (Sec. 4, DAR AO 2, Series of 2003)
3.n.3.a. The landowner may exercise his right of
retention at any time BEFORE RECEIPT
OF NOTICE OF COVERAGE.
3.n.3.b. Under the Compulsory Acquisition
(CA) Scheme the landowners shall
exercise his right of retention WITHIN
SIXTY (60) DAYS from receipts of
notice of coverage.
3.n.3.c. Under the Voluntary Offer to Sell (VOS)
and the Voluntary Land Transfer
(VLT)/Direct Payment Scheme (DPS),
the landowner shall exercise his right of
retention SIMULTANEOUSLY at the
TIME OF OFFER for sale or transfer.
3.n.4. Criteria/Requirement for Award of Retention
(Sec. 7 DAR AO 2, Series of 2003)
3.n.4.a. The land is private agricultural land;
3.n.4.b. The area chosen for retention shall be
compact and contiguous and shall be
least prejudicial to the entire

landholding and the majority of the
farmers therein;
3.n.4.c. The landowner must execute an
affidavit as to the aggregate area of
his landholding in the entire
Philippines; and
3.n.4.d. The landowner must submit a list of his
children who are fifteen (15) years old
or over as of 15 June 1988 and who
have been actually cultivating or
directly managing the farm since 15
June 1988 for identification as preferred
beneficiaries, as well as evidence of
such.
3.n.4.e. The landowner must execute an
affidavit stating the names of all
farmers, agricultural lessees and
share tenants, regular farmworkers,
seasonal farmworkers, other
farmworkers, actual tillers or
occupants, and/or other persons
directly working on the land; if there
are no such persons, a sworn statement
attesting to such fact.
3.O. LAND ACQUISTION (Chapter V, RA 6657)
3.o.1 What lands are acquired under
CARP?
3.o.1.a.Public ALIENABLE AND
DISPOSABLE (A & D) lands
through Free Patent.
3.o.1.b.Resettlement sites though
CLOAs
3.o.1.c.Land covered by the
Integrated Social Forestry
Program (ISFP) through
STEWARDSHIP CONTRACT.
3.o.2. The MODES OF ACQUIRING LANDS
for distribution under CARP
3.o.2.a.COMPULSORY ACQUISITION
(CA) (Sec. 16, RA 6657)
3,o.2.b.VOLUNTARY OFFER TO
SELL (VOS) (see 19, RA
6657)
3.o.2.c.VOLUNTARY LAND
TRANFER/DIRECT PAYMENT
SCHEME (VLT/DPS) Sec. 20,
RA 6657.
3.o.2.d.OPERATION LAND TRANSFER
(OLT) under PD 27 and EO
228; and
3.o.2.e.EXECUTIVE ORDER No. 407,
as amended by EO 448, EO
506, AO No. 03, Series of 1996
and AO No. 9, Series of 1997,
for lands OWNED BY
GOVERNMENT AGENCIES in
a proprietary capacity or the
pubic A & D lands under their
administration by virtue of
presidential proclamation.
3.o.3. Procedure for Acquisition of
Private Agricultural Lands (Sec 16.
RA 6657) COMPULSORY
ACQUISITION
3.o.3.a. DAR IDENTIFIES the LAND,
the LANDOWNER and the
BENEFICIARIES.
3.o.3.b. DAR send NOTICE TO
ACQUIRE THE LAND (Offer of
the DAR to pay a corresponding
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 18 –
value) to the owner thereof, by
personal delivery or
registered mail, and post the
same in a conspicuous place in
the municipal bldg. and
Barangay Hall of the place
where the property is located.
3.o.3.c. Landowner/Administrator/Represen-
tative inform the DAR of his
ACCEPTANCE or REJECTION of
the offer within thirty (30) days
from date of receipt of written
notice by personal delivery or
registered mail.
3.o.3.d. If landowner ACCEPTS the offer of
the DAR, the LBP pays the
landowner the purchase price of the
land within thirty days after he
executes and delivers a deed of
transfer in favor of the government
and surrenders the Certificate of
Title and other muniments of title
3.o.3.e. In case of rejection or failure to
reply, the DAR shall conduct
SUMMARY ADMINISTRATIVE
PROCEEDINGS to determine the
compensation for the land by
requiring the landowner, LBP and
other interested parties to submit
evidence as to just compensation for
the land within 15 days from
receipt of notice after which the
case to deemed submitted for
decision.
The DAR shall decide the case
within 30 days after it is submitted
for decision.

3.o.3.f. Upon receipt by the landowner of
the corresponding payment or, in
case of rejection or no response
from the landowner, upon the
DEPOSIT with an ACCESSIBLE
BANK designated by the DAR of the
compensation in CASH or in LBP
bonds, the DAR shall take
immediate possession of the land
and shall REQUEST the proper
RODs to issue a TRANSFER
CERTIFICATE OF TITLE (TCT) in
the name of the Republic of the
Philippines, the DAR shall thereafter
proceed with the REDISTRIBUTION
of the land to the qualified
beneficiaries.
3.o.3.g. Any party who disagrees with
decision may bring the matter to
the court of proper jurisdiction
(SAC) for final determination of
just compensation.
3.0.4. VOLUNTARY OFFER TO SELL (VOS) is a
scheme wherein landowners came, forward
and voluntarily offer the agricultural lands
including improvements thereon if any, for
coverage regardless of the phasing. The
DAR encourages this made because VOS
generally ensures the cooperation of the
landowners.
3.0.4.a. Landowners other than banks and
other financial institutions, who
voluntarily offer their lands for sale
shall be entitled to an additional five
percent (5%) cash payment as
incentive; (Sec. 19, RA 6657)
3.0.4.b. Landowners can file their application
for VOS either at the DAR Central
Office, or any field of the DAR.
3.0.5. VOLUNTARY LAND TRANSFER (VLT)-
Landowners of agricultural lands subject to
acquisition under this Act may enter into a
voluntary arrangement for direct transfer of
their lands to qualified beneficiaries subject
to the following guidelines:
a) All notices for voluntary land transfer
must be submitted to the DAR within the
first year of the implementation of the
CARP. Negotiations between the
landowners and qualified beneficiaries
covering any voluntary land transfer which
remain unresolved after one (1) year shall
not be recognized and such land shall
instead be required by the government and
transferred pursuant to this Act.
b) The terms and conditions of such
transfer shall not be less favorable to the
transferee than those of the government’s
standing offer to purchase from the
landowner and to resell to the beneficiaries,
if such offers have been made and are fully
known to both parties.
c) The voluntary agreement shall
include sanctions for non-compliance by
either party and shall be duly recorded and
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 19 –
its implementation monitored by the DAR.
(Sec. 20, R.A. 6657)
3.0.5.a. If the VLT/DPS remain unresolved
after one (1) year, the land shall be
covered under compulsory
acquisition.
3.0.5.b. Land titles with existing liens and
encumbrances may not be subject
of VLT/DPS scheme. (i.e. land
mortgaged to banks). This is a
ruling made by DAR to simplify
VLT/DPS transactions, particularly
too facilitate the immediate transfer
of title to the ARBs.
3.p. QUALIFIED BENEFICIARIES.- The lands covered
by the CARP shall be distributed as much a
possible to landless residents of the same
barangay, or in the absence thereof, landless
resident 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 tillers or occupants ofpublic lands;
f) collectives or cooperatives of the above
beneficiaries; and
g) others directly working on the land.
(Par. 1, Sec. 22, RA 6657)
3.p.1.The children of landowners who are
qualified under Sec. 6 of this Act shall be
given preference in the distribution of the

land of their parents; And, further, that actual
tenant-tillers in the landholding shall be
ejected or removed therefrom. (Par. 2,
Sec.22, RA 6657).
3.p.2. Beneficiaries under Presidential Decree
No. 27 who have culpably sold, disposed
of, or abandoned their land are
disqualified to become beneficiaries
under this program. (Par.3, Sec. 22, RA
6657).
3.p.3. A basic qualification of a beneficiary shall
be his willingness, aptitude, and ability to
cultivate and make the land as
productive 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 continue as such
beneficiary. (Par. 4, Sec. 22, RA 6657).
3.p.4. If, due to the landowner’s retention 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 distribution under this
Act, at the option of the beneficiaries. (Par.5,
Sec.22, RA 6657)
3.p.5. Farmers already in place and those not
accommodated in the distribution of lands
from the public domain. (Par.6, Sec.22, RA
6657).
3.p.6. Distribution Limit.- No qualified beneficiary
may own more than three (3) hectares of
agricultural land. (Sec.23, RA 6657).
3.p.7. Award to Beneficiaries.- The rights and
responsibilities of the beneficiary shall
commence from the time the DAR makes an
award of the land to him, which award shall
be completed within one hundred eighty
(180) days from the time the DAR takes
actual possession of the land. Ownership
of the beneficiary shall be evidenced by a
Certificate of Land Ownership Award,
which shall contain the restrictions and
conditions provided for in this Act, and shall
be recorded in the Register of Deeds
concerned and annotated on the Certificate
of Title.(Sec.24, RA 6657).
3.p.8.Award Ceilings for Beneficiaries.-
Beneficiaries shall be awarded an area not
exceeding three (3) hectares, which may
cover a contiguous tract of land or several
parcels of land comulated 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 collective
ownership, such as co-ownership or
farmers cooperative or some other form of
collective organization: Provided, That the
total area that may be awarded shall not
exceed the total number of co-owners or
members of the cooperative or collective
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 20 –
organization multiplied by the award limit
above prescribed, except in meritorious
cases as determined by the PARC. Title to
the property shall be issued in the name of
the co-owners or the cooperative or
collective organization as the case may be.
(Sec. 25, RA 6657).
3.p.9.Payment by Beneficiaries.- Lands awarded
pursuant to this Act shall be paid for the
beneficiaries to the LBP in thirty (30)
annual amortizations at six percent (6%)
per annum. The payments for the first
three (3) years after 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 production as established
by the DAR. Should the scheduled annual
payments after the fifth year exceed ten
percent (10%) of the annual gross
production 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 obligation 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
amortizations. The LBP shall advise the
DAR of such proceedings and the latter shall
subsequently award the forfeited
landholding to other qualified

beneficiaries. A beneficiary whose land, as
provided herein, has been foreclosed shall
thereafter be permanently disqualified
from becoming a beneficiary under this Act.
(Sec.26, RA 6657).
3.p.10. 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 to 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 the period of two
(2) years. Due notice of the availability of
the land shall be given by the LBP to he
Barangay Agrarian reform Committee
(BARC) of the barangay where the land is
situated. The Provincial Agrarian reform
coordinating Committee (PARCCOM), as
herein provided, shall, in turn, be given due
notice 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
condition for such transfer or conveyance,
shall cultivate the land himself. Failing
compliance herewith, the land shall be
transferred to the LBP which shall give due
notice 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 latter shall compensate the beneficiary
in one lump sum for the amounts the latter
has already paid, together with the value of
improvements he has made on the
land.(Sec. 27, RA 6657).
3.Q. JUST COMPENSATION- Defined as “fair market
value”. It is the price which the buyer pays
without coercion and a seller accepts without
compulsion. (Supreme Court Rulings)
3.Q.1.Land valuation is not an exact science but
an exercise fraught with inexact estimates.
This requires integrity, conscientiousness
and prudence on the part off those
responsible for determining its value. What
is important ultimately is that the land value
approximates as closely as possible, what is
broadly considered by the community to be
just. (A.O. 06, Series of 1992).
3.Q.2.Payment can be partly in cash and partly in
bonds.
3.Q.3.Factors/Criteria considered in determining
just compensation:
1. Cost of Acquisition of the land;
2. Current Value of like properties;
3. Nature of the land;
4. Actual use;
5. Income;
6. Sworn valuation by the landowner;
7. Tax Declaration;
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 21 –
8. Assessment made by government
assessors;
9. The social and economic benefits
contributed by the farmers, and
10.Non-payment of taxes or loans
secured from any government
financing institution on the land.
3.Q.4. Basic Formula for the valuation of lands
covered by VOS and CA –
LV = (CNI x 0.6) + (CS x 0.3) +
(MV x 0.1)
where:
LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value per Tax Declaration
3.Q.5. Executive Order No. 405 dated 14 June 1990
transferred the responsibility for land
valuation from DAR to the LBP.
3.Q.6. The final determination of just compensation
is a judicial function. The LBP merely
conducts administrative valuation which
may be contested in the court of proper
jurisdiction.(Magana vs. Paitan, G.R. No.
60269, dated 13 September 1990).
3.Q.7. Cash portion shall vary according to the
size of the landholdings. The larger the
landholding, the smaller the cash portion.
The underlying principle is that small land
owners are presumed to have greater need

for cash to aid them in their bid to shift
their capital from agriculture to industry.
Payment shall be under the following
terms and conditions:
a) Lands above 50 has. – 25% cash;
75% bonds;
b) Lands above 24-50 has. – 30%
cash; 70% bonds;
c) Lands 24 has. and below – 35%
cash; 65% bonds
Cash portion is increased by 5% for
VOS.
3.Q.8.What the features of the new LBP –
bonds?
a. This means bondholders can only get the
principal at the end of 25 years. On the
otherhand, the new LBP bonds mature in
ten years, and one-tenth of the face
value of the new bonds matures every
year from date of issue until the tenth
year.
b. The new LBP bonds also bear market
rates of interest the same as those of 91-
day treasury bills. Old LBP bonds have a
fixed six percent (6%) interest rate.
c. Finally, these bonds have alternative
uses. They may be used by the
landowner, his successors in interest, or
his assignees, for any of the following:
 Acquisition of land or other real
properties of the government,
including assets under the Asset
Privatization Trust, and other assets
foreclosed by the government
financial institutions;
 Acquisition of shares of stock of
government owned or controlled
corporations, or shares of stocks
owned by government in private
corporations;
 Substitution for surety or bail bonds
for the provisional release of accused
persons, or for performance bonds;
 Security for loans with some
government financial institutions,
provided the proceeds are invested
in an economic enterprise, preferably
in a small and medium scale
industry;
 Payment for various taxes and fees
to government, up to a certain
percentage of the outstanding
balance of the financial instrument,
and provided further that the PARC
shall have determined the allowable
percentage mentioned;
 Payment for tuition of the immediate
family of the original landholder in
government universities, colleges,
trade schools, and other institutions;
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 22 –
 Payment of bills in public hospitals;
and
 Other uses as the PARC may allow
from time to time.
3.R. ADMINISTRATIVE ADJUDICATION
3.R.1.Quasi-Judicial Powers of the DAR – The
DAR is hereby vested with primary
jurisdiction to determine and adjudicate
agrarian reform matters and shall have
exclusive original jurisdiction over all
matters involving the implementation of
agrarian reform, except those falling under
the exclusive jurisdiction of the Department
of Agriculture (DA) and the Department of
Environment and Natural Resources
(DENR).
It shall not be bound by technical rules
of procedures and evidence but shall
proceed to hear and decide all cases,
disputes or controversies in a most
expeditious manner, employing all
reasonable means to ascertain the facts of
every case in accordance with justice and
equity and the merits of the case: Toward
this end, it shall adopt a uniform rule or
procedure to achieve a just expeditious and
inexpensive determination of every action or
proceeding before it.
It shall have the power to summon
witnesses, administer oaths, take
testimony, require submission of reports,

compel the production of books and protests or oppositions thereto and petitions
documents and answers to for lifting of such coverage;
interrogatories and issue subpoena, and
subpoena duces tecum and to enforce its 3.2 Classification, identification,
writs through sheriffs or other duly inclusion, exclusion, qualification,
deputized officers. It shall like wise have or disqualification of potential/actual
the power to punish direct and indirect farmer-beneficiaries;
contempts in the same manner and subject
to the same penalties in the Rules of Court. 3.3 Subdivision surveys of land under
CARP;
Responsible farmer leaders shall be
allowed to represent themselves, their fellow 3.4 Recall, or cancellation of provisional
farmers, or their organizations in any lease rentals, Certificates of Land
proceedings before the DAR: Provided, Transfers (CLTs) and CARP
however, That when there are two or more Beneficiary Certificates (CBCs) in
representatives for any individual or group, cases outside the purview of
the representatives should choose only one Presidential Decree (PD) No. 816,
among themselves to represent such party including the issuance, recall, or
or group before any DAR proceedings. (Sec. cancellation of EPs or CLOAs not yet
50, RA 6657). registered with the Register of
Deeds;
3.R.2.Agrarian Law Implementation Cases- The
Adjudicator or the Board shall have no 3.5 Exercise of the right of retention by
jurisdiction over matters involving the the landowner;
administrative implementation of RA No. 6657,
otherwise known as the Comprehensive Agrarian 3.6 Application for exemption from
Reform Law (CARL) of 1988 and other agrarian coverage under Section 10 of RA
laws as enunciated by pertinent rules and 6657;
administrative orders, which shall be under the
exclusive prerogative of and cognizable by the 3.7 Application for exemption pursuant to
Office of the Secretary of the DAR in Department of Justice (DOJ) Opinion
accordance with his issuances, to wit: No. 44 (1990);
3.1 Classification and identification of 3.8 Exclusion from CARP coverage of
landholdings for coverage under the agricultural land used for livestock,
agrarian reform program and the initial swine, and poultry raising;
issuance of CLOAs and EPs, including
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 23 –
3.9 Cases of exemption/exclusion of fish
pond and prawn farms from the
coverage of CARP pursuant to RA
7881;
3.10 Issuance of Certificate of Exemption for
land subject of Voluntary Offer to Sell
(VOS) and Compulsory Acquisition
(CA) found unsuitable for agricultural
purposes;
3.11 Application for conversion of
agricultural land to residential,
commercial, industrial, or other non
agricultural uses and purposes
including protests or oppositions
thereto;
3.12 Determination of the rights of agrarian
reform beneficiaries to homelots;
3.13 Disposition of excess area of the
tenant’s/farmer-beneficiary’s
landholdings;
3.14 Increase in area of tillage of a
tenant/farmer-beneficiary;
3.15 Conflict of claims in landed estates
administered by DAR and its
predecessors; or
3.16 Such other agrarian cases, disputes,
matters or concerns referred to it by
the Secretary of the DAR.( A.O. No. 6,
Series of 2000 and Sec. 3, Rule II,
2003 Rules of Procedure (DARAB).

3.R.3.Primary and Exclusive Original Jurisdiction
of the DAR Adjudication Board (DARAB) -
The Adjudicator shall have primary and
exclusive original jurisdiction to determine
and adjudicate the following cases:
1.1 The rights and obligations of persons,
whether natural or juridical, engaged in the
management, cultivation, and use of all
agricultural lands covered by Republic Act
(RA) No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law
(CARL), and other related agrarian laws;
1.2 The preliminary administrative
determination of reasonable and just
compensation of lands acquired under
Presidential Decree (PD) No. 27 and the
Comprehensive Agrarian Reform Program
(CARP);
1.3 The annulment or cancellation of lease
contracts or deeds of sale or their
amendments involving lands under the
administration and disposition of the DAR
or Land Bank of the Philippines (LBP);
1.4 Those cases involving the ejectment and
dispossession of tenants and/or
leaseholders;
1.5 Those cases involving the sale, alienation,
pre-emption, and redemption of
agricultural lands under the coverage of the
CARL or other agrarian laws;
1.6 Those involving the correction,
partition, cancellation, secondary and
subsequent issuances of Certificates
of Land Ownership Award (CLOAs) and
Emancipation Patents (EPs) which are
registered with the Land Registration
Authority;
1.7 Those cases involving the review of
leasehold rentals;
1.8 Those cases involving the collection of
amortizations on payments for lands
awarded under PD No. 27, as amended,
RA No. 3844, as amended, and RA No.
6657, as amended, and other related
laws, decrees, orders, instructions, rules,
and regulations, as well as payment for
residential, commercial, and industrial
lots within the settlement and
resettlement areas under the
administration and disposition of the
DAR;
1.9 Those cases involving the annulment or
rescission of lease contracts and
deeds of sale, and the cancellation or
amendment of titles pertaining to
agricultural lands under the
administration and disposition of the DAR
and LBP; as well as EPs issued under
PD 266, Homestead Patents, Free
Patents, and Miscellaneous Sales
Patents to settlers in settlement and re-
settlement areas under the administration
and disposition of the DAR;
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 24 –
1.10 Those cases involving boundary
disputes over lands under the
administration and disposition of the
DAR and the LBP, which are
transferred, distributed, and/or sold to
tenant-beneficiaries and are covered
by deeds of sale, patents, and
certificates of title;
1.11 Those cases involving the
determination of title to agricultural
lands where this issue is raised in an
agrarian dispute by any of the parties
or a third person in connection with the
possession thereof for the purpose of
preserving the tenure of the agricultural
lessee or actual tenant-farmer or
farmer-beneficiaries and effecting the
ouster of the interloper or intruder in
one and the same proceeding; and
1.12 Those cases previously falling under
the original and exclusive jurisdiction of
the defunct Court of Agrarian
Relations under Section 12 of PD No.
946 except those cases falling under
the proper courts or other quasi-judicial
bodies;
1.13 Such other agrarian cases, disputes,
matters or concerns referred to it by
the Secretary of the DAR. (Sec.1,
Rule II, 2003 Rules of Procedure
(DARAB).

3.R.4. Certification of the BARC- The DAR shall
not take cognizance of any agrarian dispute
or controversy unless a certification from
the BARC that the dispute has been
submitted to it for mediation and conciliation
without any success of settlement is
presented: Provided, however, that if no
certification is issued by the BARC within
thirty (30) days after a matter or issue is
submitted to it for mediation or conciliation
the case or dispute may be brought before
the PARC.(Sec. 53, RA 6657).
3.R.5. Finality of Determination – Any case or
controversy before it shall be decided within
thirty (30) days after it is submitted for
resolution. Only one (1) motion for
reconsideration shall be allowed. Any
order, ruling or decision shall be final after
the lapse of fifteen (15) days from receipt of
a copy thereof. (Sec.51, RA 6657).
3.R.6.Frivolous Appeal – To discourage frivolous
or dilatory appeals from the decisions or
order on the local or provincial levels, the
DAR may impose reasonable penalties,
including but not limited to fines or
censures upon erring parties.(Sec. 52, RA
6657).
3.S. JUDICIAL REVIEW
(Chapter XIII, RA 6657)
3.S.1.Certiorari - Any decision, order, award or
ruling of the DAR on any agrarian dispute or
on any matter pertaining to the application,
implementation, enforcement, or
interpretation of this Act and other pertinent
laws on agrarian reform may be brought to
the Court of Appeals by certiorari except
as otherwise provided in this Act within
fifteen (15) days from the receipt of a copy
thereof. The findings of fact of the DAR
shall be final and conclusive if based on
substantial evidence. (Sec.54, RA 6657).
3.S.2.Special Agrarian Court - The Supreme
Court shall designate at least one (1) branch
of the Regional Trial Court (RTC) within
each province to act as a Special Agrarian
Court.
The Supreme Court may designate more
branches to constitute such additional
Special Agrarian Courts as may be
necessary to cope with the number of
agrarian cases in each province. In the
designation, the Supreme Court shall give
preference to the Regional Trial Courts
which have been assigned to handle
agrarian cases or whose presiding judges
were former judges of the defunct Court of
Agrarian Relations.
The Regional Trial Court (RTC) judges
assigned to said courts shall exercise said
special jurisdiction in addition to the
regular jurisdiction of their respective courts.
The Special Agrarian Courts shall have
the powers and prerogatives inherent in or
belonging to the Regional Trial Courts. (Sec.
56, RA 6657).
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 25 –
3.S.3.Special Jurisdiction of the Special
Agrarian Courts - The Special Agrarian
Courts shall have original and exclusive
jurisdiction over all petitions for the
determination of just compensation to
landowners, and the prosecution of all
criminal offenses under this Act. The
Rules of Court shall apply to all
proceedings before the Special Agrarian
Courts, unless modified by this Act.
The Special Agrarian Courts shall decide
all appropriate cases under their special
jurisdiction within thirty (30) days from
submission of the case for
decision.(Sec.57,RA 6657).
3.S.4.Orders of the Special Agrarian Courts -
No order of the Special Agrarian Courts on
any issue, question, matter or incident
raised before them shall be elevated to the
appellate courts until the hearing shall have
been terminated and the case decided on
the merits.(Sec.59, RA 6657).
3.S.5.Appeals - An appeal may be taken from
the decision of the Special Agrarian Courts
by filing a petition for review with the
Court of Appeals within fifteen (15) days
after receipt of notice of the decision;
otherwise, the decision shall become final.
An appeal from the decision of the
Court of Appeals, or from any order,

ruling or decision of the DAR, as the case
may be, shall be by a petition for review
with the Supreme Court within a non-
extendible period of fifteen (15) days from
receipt of a copy of said
decision.(Sec.60,RA 6657).
3.S.6.Procedure on Review - Review by the
Court of Appeals or the Supreme Court, as
the case may be, shall be governed by the
Rules of Court. The Court of Appeals,
however, may require the parties to file
simultaneous memoranda within a period of
fifteen (15) days from notice, after which the
case is deemed submitted for decision.(Sec.
61, RA 6657).
3.S.7.Preferential Attention in Courts - All courts
in the Philippines, both trial and appellate,
shall give preferential attention to all cases
arising from or in connection with the
implementation of the provisions of this Act.
All cases pending in court arising from or
in connection with the implementation of this
Act shall continue to be heard, tried and
decided into their finality, notwithstanding
the expiration of the ten-year period
mentioned in Section 5 hereof.(Sec.62, RA
6657).
3.S.8.No Restraining Order or Preliminary
Injunction - No court in the Philippines shall
have jurisdiction to issue any restraining
order or writ of preliminary injunction
against the PARC or any of its duly
authorized or designated agencies in any
case, dispute or controversy arising from,
necessary to, or in connection with the
application, implementation, enforcement, or
interpretation of this Act and other pertinent
laws on agrarian reform. (Sec.55,RA 6657).
3.S.9.Immunity of Government Agencies from
Undue Interference - No injunction,
restraining order, prohibition or
mandamus shall be issued by the lower
courts against the Department of Agrarian
Reform (DAR), the Department of
Agriculture (DA), the Department of
Environment and Natural Resources
(DENR), and the Department of Justice
(DOJ) in their implementation of the
program. (Sec.68, RA 6657).
3.T.A.Prohibited Acts and Omissions by Landowners
under RA 6657 (Sec. 73, RA 6657)
3.T.A.1.Ownership and Possession of Lands,
beyond allowable limits
The ownership or possession, for the
purpose of circumventing the provisions of
this Act, of agricultural lands in excess of the
total retention limits or award ceiling by any
person, natural or juridical, except those
under collective ownership by farmer-
beneficiaries,(Sec.73 (a),RA 6657).
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 26 –
3.T.A.2.Prohibited Sale, Transfer,
Conveyance or Change in the nature
of the land.
The sale, transfer, conveyance or
change of the nature of lands outside of
urban centers and city limits either in
whole or in part after the effectivity of
this act. The date of the registration of
the deed of conveyance in the Register
of Deeds with respect to titled lands and
the date of the issuance of the tax
declaration to the transferee of the
property with respect to unregistered
lands, as the case may be, shall be
conclusive for the purpose of this Act.
(Sec.73(e),RA 6657).
3.T.A.3.Illegal/Premature/Unauthorized
Conversion
The conversion by any landowner of
his agricultural land into any non-
agricultural use with intent to avoid the
application of this Act to his
landholdings and to dispossess his
tenant farmers of the land tilled by
them.(Sec.73©, RA 6657).
3.T.B.Prohibited Acts and Omissions by
Beneficiaries under RA 6657
3.T.B.1.Sale, Transfer, Conveyance of Rights
Acquired as a Beneficiary
The sale, transfer or conveyance by
a beneficiary of the right to use or any

other usufructuary right over the land he
acquired by virtue of being a beneficiary,
in order to circumvent the provisions of
this Act.(Sec.73 (f),RA 6657).
3.T.B.2.Misuse or Diversion of Financial Aid
and Support Services.
This will result to sanction against
the guilty beneficiary including the
forfeiture of the land transferred to him
or lesser sanction as may be provided
by PARC without prejudice to criminal
prosecution. (DAR MC 19, 1996)
3.T.B.3. Misuse of the Land
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 continue as such
beneficiary.(Par.4, Sec.22, RA 6657).
3.T.B.4.Continuous Neglect or Abandonment
of Awarded Lands.
Beneficiaries under Presidential
Decree No. 27 who have culpably sold,
disposed of, or abandoned their land
are disqualified to become beneficiaries
under this Program.(Par.3, Sec.22, RA
6657).
Neglect or abandonment is defined
as the "willful failure of the ARB",
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 27 –
together with his farm household, to 3.T.B.7. Waiver of Rights to Awarded Lands
cultivate, till, or develop his land to
produce any crop, or to use the land for The waiver of rights to awarded
any specific economic purpose lands by a beneficiary as an
continuously for a period of two administrative offense. (Part I, Item A,
calendar years."(DAR A.O. 2 (1994) No. 9 of MC 19 (1996).
3.T.B.5.Default and Failure in the Payment of 3.T.B.8. FBs Surrender of Awarded Lands to
amortization to Landowners. Landowner or other Non ARBs.
"Default in the obligation of the The surrender by a beneficiary of
ARBs to pay the aggregate of three (3) his awarded lands to landowner or
consecutive amortizations to the other non-ARBs, is penalized under
landowner in the case of awarded part I, item A (10) of MC 19 (1996).
lands under voluntary land
transfer/direct payment scheme, except 3.T.B.9.Material Misrepresentation of
in cases of fortuitous events and force Qualification by the Beneficiary
majeure" is administrative sanctioned.
(Part I, item A (1) of DAR MC 19 (1996) 3.T.C. Prohibited Acts and Omissions by other
in relation to Sec. 26, RA 6657) Persons under RA 6657
3.T.B.6.Failure to pay Amortization to LBP 3.T.C.1.Forcible Entry and Unlawful
Detainer
The failure to pay amortizations to
LBP is penalized under DAR MC 19 The forcible entry or illegal
(1996) which states that "failure of the detainer by persons who are not
ARBs to pay at least three (3) qualified beneficiaries under this Act
consecutive amortizations to the to avail themselves of the rights and
LBP in the case of awarded lands benefits of the Agrarian Reform
under Compulsory Acquisition (CA) or Program.(Sec 73(b), RA 6657).
Voluntary Offer to Sell (VOS), except in
the case of fortuitous events and force 3.T.C.2.Obstruction and Prevention of
majeure." CARP Implementation
The willful prevention or
obstruction by any person,
association or entity of the
 ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 28 –

implementation of the CARP.(Sec.

73(d), RA 6657).

3.U. Penalties for the violation of the provision of

RA 6657

Any person who knowingly or willfully

violates the provisions of this Act shall be
punished by imprisonment of not less than
one (1) month to not more than three (3)
years or a fine of not less than one
thousand pesos (P1,000.00) and not more
than fifteen thousand pesos (P15,000.00),
or both, at the discretion of the court.

If the offender is a corporation or

association, the officer responsible therefor
shall be criminally liable. (Sec. 74, RA 6657).

3.V. Effectivity Clause:

This Act (RA 6657) shall take effect

immediately after publication in at least two
(2) national newspaper of general
circulation.

Approved: June 10, 1988

Effectivity: June 15, 1988
ASEC AUGUSTO P. QUIJANO
2004 U.P Pre-Bar Review
Lecture Outline
Page - 29 –