May 10, 1956
LTA ADMINISTRATIVE ORDER NO. 02-56
SUBJECT : Rules and Regulations Governing the Acquisition and Disposition of Private Agricultural Lands.
Pursuant to the provisions of Republic Act No. 1400, otherwise known as the Land Reform Act of 1955, the Land Tenure Administration hereby adopts and promulgates the following rules and regulations governing the acquisition and disposition of private agricultural lands: CAHaST
SECTION 1. Scope of the Regulations. — These rules and regulations shall apply to private agricultural lands previously acquired by and for the Commonwealth of the Philippines in pursuance of Commonwealth Act No. 20, approved July 11, 1936; Commonwealth Act No. 260, approved April 12, 1938; Commonwealth Act No. 378, approved August 23, 1938; Commonwealth No. 420, approved May 31, 1939; and Commonwealth Act No. 539, approved May 26, 1940, to those that have been or may hereafter be acquired in accordance therewith and in pursuance of Republic Act No. 1400, approved September 9, 1955, by and for the Republic of the Philippines and to such other lands as have been, or may, hereafter, be turned over to the Land Tenure Administration for its administration and disposition.
SECTION 2. Modes and Purposes of Acquisition of Private Agricultural Lands. — The Land Tenure Administration may acquire private agricultural lands for subdivision and resale as farm lots or home lots through negotiated purchase or through expropriation; provided, that the acquisition of lands for agricultural purposes shall be done upon petitions of a majority of tenants therein and the acquisition of lands exclusively residential purposes, upon order of the President.
SECTION 3. Circumstances that Warrant Expropriation of Lands for Agricultural Purposes. — Expropriation proceedings may be initiated and prosecuted by the Land Tenure Administration for the acquisition of lands for agricultural purposes after the said Administration is convinced of the suitability of such land for subdivision into family-size farm units; that public interest will be served by its immediate acquisition; and when any of the following conditions exists:
(1) That the landowner refuses to sell after all efforts have been exhausted by the Administration to negotiate for its purchase; or
(2) That the landowner is willing to sell but cannot agree with the Administration as to the price and/or manner of the payment.
Provided, that the power of the Land Tenure Administration to expropriated lands for agricultural purposes shall be understood to apply only to the area in excess of three hundred (300) hectares of contiguous area if owned by natural persons and to the area in excess if six hundred (600) hectares if owned by corporations; Provided, further, that land where justified agrarian unrest exists may be expropriated regardless of its area.
SECTION 4. Circumstances that Warrant the Recommendation for Expropriation of Lands for Residential Purposes. — The initiation and prosecution of expropriation proceedings for the acquisition of lands for residential purposes with at least five (5) hectares in area may be recommended to the President by the Land Tenure Administration after said Administration is convinced that an agrarian controversy exists therein and it has reached such a stage as would endanger peace and order, and that the bonafide tenants and/or bonafide occupants thereof are financially able to purchase the land occupied by them.
SECTION 5. Minimum Area of Lands to be Acquired for Agricultural Purposes. — Except in special cases, no proceedings shall be initiated for the expropriation of lands for agricultural purposes unless the area thereof be at least twenty-four (24) hectares. This shall be without prejudice to the acquisition of smaller areas through negotiation.
SECTION 6. Procedure for Negotiated Purchase of Private Agricultural Lands. — Upon receipt of the petition provided for in Section 2 hereof, for the purchase of lands for agricultural purposes, the Land Tenure Administration shall:
(1) Within thirty (30) days, determine on the basis of the information contained in the petition, the suitability of the land for purchase, notify the petitioners and the landowners accordingly, and fix the date for preliminary negotiation;
(2) Within sixty (60) days from the preliminary negotiation, conduct investigations and technical surveys to determine title to the land and its real value, taking into account (a) the prevailing prices of similar lands in the immediate area, (b) the soil conditions, topography and climate hazards, (c) actual production, (d) accessibility, and (e) improvements; and
(3) Fix, within ninety (90) days from the preliminary negotiation, the date for final negotiation.
Before fixing the date for final negotiation, and in the interest of public welfare, the Administration shall require the tenants to form a cooperative to be affiliated with a government financing cooperative agency. Such cooperative agency shall deposit with the Administration an amount not exceeding twenty-five per centum (25%) of the annual gross produce of the principal crop or crops of such land on the basis of the average of harvest of the three (3) years immediately preceding the year the petition was filed. This deposit shall be credited to the selling price to the tenants in accordance with the individual contribution of each to said deposit. AEIHCS
The procedure set forth in Nos. (1), (2) and (3) hereof, insofar as they are applicable, shall be observed upon receipt of the order of the President for the purchase of lands for residential purposes.
SECTION 7. Appraisal of agricultural Land (Illegible portion) of each agricultural land to be acquired by the (Illegible portion) be accomplished by a committee composed of a representative of the Land Tenure Administration, as Chairman; and a soil technologists, a surveyor, an appraiser, a representative of the landowner and a representative of the bona-fide tenant and/or bona-fide occupants of the land to be appraised, as members. In appraising the land, the committee shall take into consideration the facts provided for under Section 6, sub-section (2) hereof. The appraisal made by the Committee shall be subject to the approval of the Chairman and the members of the Land Tenure Administration. The Administration may call upon any agency of the government to aid the same in determining the just compensation of the private agricultural land to be acquired.
SECTION 8. Subdivision of Agricultural Lands After Acquisition Thereof. — After its acquisition, the land shall be subdivided, as much as possible in conformity with the actual occupation of the bona-fide tenants and/or bona-fide occupants thereof, into small home lots or farm lots with areas within the limits fixed herein, provided, that in lands acquired for agricultural purposes, the use to which the land is devoted shall be taken into consideration in the determination of the size within the said limits of each subdivision lot therein. Each home lot shall contain an area of not less than one hundred twenty (120) square meters but not exceeding six hundred (600) square meters, except that the minimum area of each lot in lands acquired under Republic Act No. 1162 shall be one hundred fifty (150) square meters. Each farm lot shall contain an area of not more than six (6) hectares.
SECTION 9. Procedure of Subdivision: Notice of Approval of Subdivision Plan. — After the subdivision survey of an agricultural land, a public hearing shall be held at least fifteen (15) days after notice of the time and place thereof has been sent to all bona-fide tenants and bona-fide occupants of said land. During the hearing, said tenants and occupants must present all the objections which they may have regarding the subdivision plan. Failure on their part to appear at the hearing without justifiable excuse or to raise such objections regarding the subdivision plan as could have been made at the time of hearing, shall preclude them from raising said objections thereafter.
Within three (3) months after the approval of the subdivision plan, notice of the date of approval thereof shall be sent to all bona-fide tenants and bona-fide occupants concerned requiring them to file within six (6) months after receipt thereof their respective applications to purchase.
SECTION 10. Computation and Payment of Rentals. — Rentals shall be paid by the bona-fide tenants and actual occupants of lots in lands acquired by the government for the reasonable use of said lots from the date of the acquisition thereof by the government or from the date of occupation in the case of persons who are not bona-fide occupants under Section 15 hereof, to the date of the execution of an agreement to sell or deed of sale covering said lots. The rentals to be charged shall be computed at the rate of not more than six per centum (6%) of the purchase price of the land, per annum, and shall be paid monthly in case of home lots and yearly in case of farm lots.
Upon the execution of an agreement to sell a provision shall be made therein for the payment of the rentals which may be found to be due and uncollected from the promisee thereof.
SECTION 11. Disposition of Subdivision Lots. — Subdivision lots shall be disposed of through the execution of Agreements to Sell and Deeds of Sale by the Chairman of the Land Tenure Administration in accordance with the provisions of the succeeding sections. However, the ownership thereof shall be deemed transferred only upon the due execution of Deeds of Sale therefor.
SECTION 12. Selling Price of a Home Lot; Payment Thereof. — The selling price of a land acquired by the government for residential purposes shall include the purchase price paid therefore, plus actual expenses for survey, subdivision and registration. A down payment of five per centum (5%) of the selling price of a home lot shall be collected before an agreement to sell is executed. The balance of the price shall be paid either in cash, or in one hundred eighty (180) equal monthly installments with interest at the rate of five per centum (5%) per annum on the unpaid balance, plus one per centum (1%) for administration expenses, each installment to be due and payable within the first ten (10) days of every month.
SECTION 13. Selling Price of a Farm Lot; Payment Thereof. — The selling price of a farm land acquired by the government shall include the purchase price paid therefor, plus actual expenses for survey, subdivision and registration. However, in case of farm lands acquired under Republic Act No. 1400, the selling price thereof shall include the purchase price paid therefor, plus six per centum (6%) interest per annum thereon for twenty-five (25) years, plus actual expenses for survey, subdivision and registration.
A down payment of five per centum (5%) of the selling price of a farm land shall be collected before an agreement to sell is executed and the balance price may be paid either in cash, or in twenty (20) equal annual installments with interest at the rate of five per centum (5%) per annum on the unpaid balance, plus one per centum (1%) per annum for administration expenses; provided, that in case of lands acquired under Republic Act No. 1400, no down payment shall be required before the execution of an agreement to sell for a farm lot therein, and the selling price of said lot may be paid either in cash or twenty-five (25) equal annual installments.
Each annual installment on the selling price of a farm lot shall be due and payable within the first ten (10) days after the threshing or harvest of the produce of said lot, but in all cases not later than March 31, of each year. Upon failure to pay on the part of the purchaser of said lot within said period, thirty per centum (30%) of the net produce shall be collected by the Superintendent of the agricultural land where the lot is located and shall be deposited for the account of the delinquent purchaser. Within thirty (30) days from the said deposit, said purchaser may redeem the deposited produce upon payment of the installment or installments due. In case of failure to redeem within the said period, the deposited produce shall be sold, the proceeds of the sale to be applied to the payment of the installment or installments due and any balance thereof to be returned to said purchaser.
SECTION 14. Persons Qualified to Purchase: Number of Lots Granted. — Subject to the provisions of Section 16 hereof, any private individual who is qualified to acquire and own lands in the Philippines and who will personally cultivate and/or occupy the lot or lots which may be sold to him, may be allowed to purchase not more than one (1) home lot and/or farm lot except that in case of farm lots with areas less than six (6) hectares, more than one (1) lot may be purchased provided, however, that the total area of the lots which may be sold to one person shall not exceed six (6) hectares.
The cultivation of a farm lot by the husband or wife of the purchaser thereof, and by the members of the family of said purchaser who are dependent upon him or her for support shall be considered as his or her cultivation for the purposes of this section and of Sections 24 and 25 hereof.
SECTION 15. Definition of Bona-fide Tenant: Bona-fide Occupant. — For the purpose of these rules and regulations and more specifically of the succeeding section, a Bona-fide tenant in a land acquired by the government is one who possesses certain area thereof by virtue of an express or implied contract of tenancy had with the former owner of the land from whom it was acquired by the government and continue to be a tenant of the said area at the time he files his application to purchase the same or a portion thereof. A bona-fide occupant in a land acquired by the government in one who, not being a tenant, occupies in good faith a certain area thereof at the time of the acquisition of said land by the government, or one who has been in continuous occupation of said area for at least two (2) years immediately prior to the said acquisition by the government and had cultivated the same during said period of time and/or had introduced improvements thereof for which he had paid taxes to the government; and continues to be an occupant of the said area at the time he files his application to purchase the same or a portion thereof.
SECTION 16. Right of Preference to Purchase of Bona-fide Tenant, Bona-fide Occupant and Other Persons. — The bona-fide tenant and in his absence or if he fails to qualify under Section 14 hereof, the bona-fide occupant of a subdivision lot in a private agricultural land acquired by the government shall have the right of preference to purchase said lot. In the absence of the bona-fide tenant and/or bona-fide occupant or in case said tenant and occupant fail to qualify under Section 14 hereof, and subject to the provision of said section, the following persons shall be preferred in the purchase of a farm lot and/or home lot, in the order in which they are named:
(1) A person who is the purchaser of a farm lot or, lots in an agricultural land acquired by the government, the production of which yields a net profit insufficient to maintain a decent standard of living provided, however, that he will be preferred only as to the portion of the farm lot applied for in the same agricultural land which if added to the area of the lot or lots already sold to him will not exceed six (6) hectares;
(2) A person who is a resident of the municipality-where the lot applied for is located.
SECTION 17. Right of Preference to Other Cases. — In all cases not provided for in the preceding section, the right of preference shall be based on the priority of the dates of filing applications to purchase. In case the dates of filing are the same the right of preference shall be determined by means of drawing lots, provided, however, that this method of determining rights of preference shall apply to conflicts of dates of filing of the applications of persons falling under Section 16(1), hereof, only if it is not feasible to subdivide the farm lot among the conflicting applicants therefor.
SECTION 18. When Preference Right is Lost. — The right of preference to purchase a subdivision lot of a bona-fide tenant or a bona-fide occupant or of a person falling under (1) or (2) of Section 16 hereof, is deemed lost (a) if after having been given notice within a reasonable time, which in no case shall be less than three (3) months, he fails or refuses to pay the rentals on said lot during this occupation thereof before the same is ready for sale to him; or (b) fails or refuses to apply for the purchase of the lot within six (6) months after his receipt of the notice provided for in Section 9 hereof; or (c) fails or refuses to sign the contract of sale and pay the down payment on the lot within three (3) months after he has been advised to do so; or (d) if he has made a transfer or encumbrance of his right of preference to purchase the lot contrary to the provision of Section 21 hereof; or (e) if he has made transfer or encumbrance of his leasehold rights over the lot without first obtaining the written consent of the Chairman of the Land tenure Administration. AEDCHc
SECTION 19. Application to Purchase Subdivision Lots; Manner of Filing and Form Thereof. — The application to purchase lots disposable in accordance with these regulations shall be made by filing the same in the form prescribed therefore with the Land Tenure Administration. The application shall be filed in duplicate, sworn to before any officer authorized to administer oath and shall set forth (a) the full name of the applicant, his citizenship, age, civil status and of married the full name of the husband or wife, place of residence, and post office address; (b) an accurate description of the lot applied for, stating its nature, location, and approximate area; (c) whether or not the applicant has been an occupant of the agricultural land where the lot is located stating the period of occupation, the nature and value of his improvements thereof, if any, and the manner in which occupation was acquired; (d) the full name of the former occupant of the lot, stating the nature and value of his improvements therein, if any; (e) whether or not the applicant has been paying rentals for the use of the lot, the name of the person to whom rentals were paid and his address, and in case the applicant has not been paying rentals, the reason for his failure to do so; (f) whether or not the land is being claimed by another person, stating his name and address; (g) whether or not the applicant and/or her/his husband or wife owns other parcels of land, stating the area and location thereof; (h) whether or not the applicant and/or her/his husband or wife is a bona-fide tenant or occupant of Other lots, the area and location thereof; and (i) that if the lot is awarded to the applicant, he will personally occupy and/or cultivate the same, and he will not subdivide, sell or in any manner transfer or encumber said lot without first obtaining the written consent of the Chairman of the Land Tenure Administration. The statement made in the application shall become part of the agreement to sell (and/or deed of sale that may be executed on the basis of such application. Any false statement or misrepresentation therein or omission of fact, substantially altering or modifying the consideration of the facts set forth in such statements or any subsequent modification or alteration of the material facts therein set forth shall be sufficient ground for the Chairman of the Land Tenure Administration to reject the application, to cancel the agreement to sell and/or deed of sale executed on the basis thereof, to order the forfeiture of the purchase price paid for the lot or to initiate and prosecute the proper action in court for the cancellation of the certificate of title that may be issued for said lot and the revision of the same to the government.
SECTION 20. Payment of Taxes, etc. — All taxes, irrigation fees and assessments which may be levied on the property subject of an agreement to sell or deed of sale from the time of the execution thereof, shall be paid by the promissee or vendee.
SECTION 21. Transfer of Encumbrance of Rights. — A person having a right of preference to purchase a subdivision lot shall not be allowed to transfer, assign, alienate or encumber said right and any transfer, assignment, alienation or encumbrance made in violation of this prohibition shall be null and void. A bona-fide tenant, however, may transfer, assign, alienate or encumber his leasehold rights over a subdivision lot to persons who will personally cultivate and/or occupy said lot and are qualified to acquired and own lands in the Philippines with the prior written consent of the Chairman of the Land Tenure Administration; provided, that said tenant is not delinquent in the payment of rentals on the lot; and provided, further, that a transfer, assignment, alienation or encumbrance of leasehold rights shall be permitted only if the tenant-transferor is actually occupying the lot, otherwise the transfer, assignment, alienation or encumbrance shall be disallowed unless the bona-fide occupant thereof, if any, fails to file his application to purchase the lot within one (1) month from receipt of notice requiring him to do so or waives in writing his right of preference to purchase said lot.
After at least two (2) installments have been paid, the promissee in an agreement to sell executed in accordance with the provisions of these regulations, may transfer, assign, alienate or encumber his rights to, and interest in the lot covered by said agreement, with the previous consent in writing of the Chairman of the Land Tenure Administration; provided, that said promissee is not delinquent in the payment of his account. The said transfer, assignment, alienation or encumbrance may be approved only in favor of persons who will personally cultivate and/or occupy the lot subject of such transfer, assignment, alienation or encumbrance, and are qualified to acquire and own lands in the Philippines. The transferor or assignor shall thereafter be barred from acquiring any lot located in the same or other lands acquired by the Government and in the same City or Municipality, unless the lot or lots desired to be acquired by him thereafter has been originally occupied by him as bona-fide tenant or bona-fide occupant thereof. Any transfer, assignment, alienation or encumbrance made without the approval of the Chairman of the Land Tenure Administration, as herein provided, is null and void and shall be sufficient ground for the Chairman of the Land Tenure Administration to cancel the agreement to sell executed in favor of the transferor or assignor, and to order the reversion of the lot covered thereby and the forfeiture of all payments made on account thereof to the government. Said payments shall be considered as rentals for the occupation of said lot by the transferor and as payment for administration expenses.
SECTION 22. Default in Payment of Installments; Cancellation of Agreements to Sell. — Upon default of payment by the promissee of six (6) consecutive monthly installments in case of home lots or two (2) consecutive yearly installments in case of farm lots as herein provided, the Chairman of the Land-Tenure Administration shall cancel the agreement to sell executed in favor of said promissee, and all payments made by him on account thereof shall be forfeited to the government. Should, however, the promissee pay all defaulted installments, the interests due thereon and all other existing obligations to the government, and the lot has not yet been disposed of to another person, the agreement to sell may be reinstated and the forfeiture of the payments may be revoked by the Chairman of the Land Tenure Administration.
SECTION 23. Execution of Deeds of Sale. — The Chairman of the Land Tenure Administration shall execute a deed of sale conveying a subdivision lot in favor of the purchaser thereof upon payment by the latter of all rentals for the use of said lot which are found to be in arrears, and of the selling price thereof in full, and upon the performance by said purchaser of all conditions required herein and in any agreement to sell made in his favor covering said lot. All expenses incidents to the transfer of title including the documentary stamps, notarial fees and issuance of the certificates of title shall be for the account of the purchaser. SDaHEc
SECTION 24. Conditions in Agreements to Sell, Deeds of Sale and Torrens Title. — It shall be a condition in all agreements to sell and deeds of sale covering lots acquired under these rules and regulations that said lots shall be personally occupied and/or cultivated by the purchasers thereof. In case of a home lot, a purchaser thereof shall be deemed not to have complied with the condition herein set forth if within a period of two (2) years from the execution of the agreement to sell or deed of sale for said lot, he fails to construct thereon his place of residence. A purchaser of a farm lot who shall fail to start cultivation of said lot within six (6) months after the execution of his agreements to sell or deed of sale therefor shall be deemed not to have complied with said condition.
It shall be a condition in all agreements to sell and deeds of sale and annotated in the Torrens Title of lots acquired under these rules and regulations, that said lots shall not be subdivided, sold, or in any manner transferred or encumbered without the prior written consent of the Chairman of the Land Tenure Administration and only of farmers, tenants or other private individuals qualified herein or to government banking institutions or agencies. Any subdivision, sale, transfer or encumbrance made in violation hereof is null and void.
SECTION 25. Violation of Any of the Conditions in the Preceding Section; Its Effect. — The violation of any of the conditions set forth in the preceding section shall be sufficient ground for the Chairman of the Land Tenure Administration to cancel an agreement to sell or deed of sale, and to order the reversion of the lot covered thereby and the forfeiture of all payments made on account thereof to the government. In case, however, a transfer certificate of title has already been issued, the violation of any of said conditions shall be sufficient ground for the Chairman of the Land Tenure Administration to initiate and prosecute the proper action in court for the cancellation of said title and for the reversion of the lot involved to the government.
SECTION 26. Procedure of Disposition of Claims and Conflicts. — Claims and conflicts regarding the disposition of lots in accordance with these rules and regulations shall be investigated and disposed of in accordance with the procedure prescribed under L.T.A. Administrative Order No. 1.
SECTION 27. Penal Provisions. — Persons who have, by purchase, acquired titled to lots within lands acquired by the government, who are subsequently found disqualified from acquiring the same, or who have thereafter sold the same to persons who are not qualified to purchase the said lots, shall be amenable to the provisions of Republic Act No. 134, penalizing acts of evasion of the laws of nationalization of certain rights, and the lots so acquired shall be escheated to the government.
SECTION 28. Repeal of Prior Rules and Regulations; etc. — All existing rules and regulations, directives, resolutions, circulars, etc., affecting private agricultural lands acquired by the government which are inconsistent with the L.T.A. Administrative Order are hereby repealed.
SECTION 29. Effectivity. — These rules and regulations shall take effect upon approval hereof.
APPROVED, May 10, 1956.
(SGD.) MANUEL E. CASTAÑEDA
(SGD.) JULIAN U. DE VERA