AGRICULTURAL

LEASEHOLD
Legal Basis: RA 3844 as amended
(Agricultural Land Reform Code)
August 30, 1963
ELEMENTS:
1. As to Parties
a.) Landowner- shall mean Owner, Civil
law lessee, usufructuary, or legal
possessor;

*Lastimoza vs. Blanco (GR No. L-14697)

The court declared one party as a usurper;
thus no agricultural tenancy

b.) Tenant- natural person who can

personally cultivates the land who is at
least 15 years of age
2. As to Subject
The land must be agricultural

*Cayetano vs. Tiongson

(GR No. L-62626)
Subject land already classified as
residential prior to execution of
contract

*Hilario vs. IAC (GR No. 70736)

Subject land is actually a yard of a lot
within the poblacion
3. Consent

a.) Express- written

or verbal
b.) Implied
 4. As to purpose
 Agricultural production

 5. Personal cultivation by the tenant

*Bonifacio vs. Dizon (GR No. 79416)
Personal cultivation extends to
immediate family members

*De Jesus vs. IAC (GR No. 72282)

Personal cultivation does not extend
to hired help
6. Consideration

 Pay price is ascertainable in

produce, or money or both
RULE IN LANDOWNER’S SHARE:
It must not be more than 25% of:
a.) Average normal harvest

b.) Estimated normal harvest

during the 3 agricultural years
Immediately preceding execution of
Contract (after deducting amount of
Seeds and cost of harvest); if no
Average normal harvest
c.) Estimated normal harvest in the
preceding years, if the landholding
has been harvested for less than 3
agricultural years and there is no ave-
rage normal harvest.

In the absence of agreement, PARAD

will set provisional lease rental.
OBLIGATIONS OF THE LESSEE
1. To cultivate and take care of the farm
etc. as a good father of a family

2. To inform the agricultural lessor of any

trespass committed by third persons upon

farm;

3. To keep his farm and growing crops at-

tended to during the work season. In
case of unjustified abandonment or
neglect of his farm, any or all of his ex-
pected produce may, upon order of the
Court, be forfeited in favor of the agri-
Cultural lessor to the extent of the damage
cause thereby.

4. To notify the agricultural lessor at least

3 days before the date of harvesting;

5. To pay the lease rental when it falls due

RIGHTS OF TENANT
1. Right to a Homelot
Not more than 3% of the subject land
but not more than 1,000 s.q.;

2. Right of pre-emption
Preferential right to buy the land
under reasonable terms and condi-
tion, within 90 days from notice
3. RIGHT OF REDEMPTION
Right to redeem at a reasonable
terms and condition within 2 years
from the registration of the sale

4. RIGHT OF DISTURBANCE
a)COMPENSATION-RA 3844 as
amended-In case the landowner or a
member of his immediate family will
personally cultivate the landholding
provided such is more than 5 hectares.
(Section 36 RA 3844)
Computation:
Five years rental plus right to be in-
demnified for ½ of the necessary and
useful improvements made by him on
the landholding
b.) DAR A.O 1, series of 2002-
In case the land is converted into
residential, industrial, commercial, hospital,
school site, or other useful non-agricultural
purposes;

COMPUTATION:
Disturbance compensation=5 years of
the gross harvest of the land
PEACEFUL POSSESSION BY THE LESSEE
MAYBE DISTURBED UNDER THE FF:

1. When the landowner or immediate

member of his family will personally
cultivate the landholding and it is FIVE (5)
hectares and below . In this case, the
lessee is entitled to an advanced notice of
at least one (1) agricultural year before
ejectment proceeding is filed. (Sec 36(1) of
RA 3844 as amended)
2. The agricultural lessee failed to substantially
comply with the terms of the contract;

3. The lessee planted crops or used the land for a

purpose other than what had been previously
agreed upon;

4. Failure to adopt proven farm practices

5. Non-payment of lease rental when it falls due;

6. Subleasing
EXTINGUISHMENT OF LEASHOLD RELATION
1. Death or permanent incapacity
a.) single
b.) married-within 1 month from the
occurrence, landowner will choose among
the ff:
b1.) Surviving spouse
b2.) eldest son/daughter by blood who is
at least 15 years of age
b3.) next eldest descendant in the order,
of their age.
If such incapacity occurred during agricul-
tural year, the choice will be exercised at
the end of that agricultural year.

If no choice made, follow the order of

succession.
LEASEHOLD RELATION NOT EXTINGUISHED

1. Expiration of the term or period;

2. Sale-buyer/transferee is subrogated to
the rights of the seller and substituted to
obligation of the agricultural lessor;

3. Alienation or transfer of the legal

possession
JURISDICTION
All cases involving the dispossession of a
tenant and/or the settlement and disposition
of disputes arising from the relationship of
landholder and tenant, as well as the
violation of any of the provisions of RA
3844, shall be under the original and
exclusive jurisdiction of DARAB.