November 27, 1981

 

MINISTRY MEMORANDUM CIRCULAR NO. 16-81

 

TO                :     All Regional Directors District, Officers Team Leaders and
                           Fieldmen Concerned

SUBJECT    :     Guidelines and Procedures to Govern Direct Payment of Farmholdings
                           Covered by OLT Pursuant to P.D. No. 27.

 

I.       INTRODUCTION

            Feedback has been constantly received by the Central Office that some farmer-beneficiaries of Operation Land Transfer pursuant to P.D. No. 27 and their landowners have opted direct payment as the mode of settlement of the farmholdings involved therein through mutually agreed amortization schedules. This arrangement should be encouraged if farmer-beneficiary and landowners are in agreement and have done so on their own free will. Accordingly, it is deemed necessary that to effect an orderly and systematic monitoring of the direct payment scheme, the following guidelines and procedures are hereby prescribed.   AcSIDE

II.      COVERAGE

            These guidelines shall apply to all private agricultural lands covered by the land transfer program under P.D. No. 27 where the value of the land is directly paid by the farmer-beneficiary to the landowners through amortizations mutually agreed upon between them, except those lands with existing liens or encumbrances.

III.    DEED OF TRANSFER UNDER P. D. 27

            For this purpose, the attached form shall serve as guide in the preparation of a deed of transfer.

IV.    VALUATION

            In all cases, the total cost of the land agreed upon by the parties, whether payable in kind or in money shall be equivalent to 2-1/2 times the average harvest of three (3) normal crop years immediately preceding October 21, 1972, and shall be understood to include the 6% interest per annum provided under P. D. No. 27.

Amortization payment shall be paid by farmer-beneficiaries in fifteen (15) years of fifteen (15) equal annual amortizations as provided under P.D. No. 27 unless they choose to accelerate the payments.

V.     MODES OF DIRECT PAYMENT

A.        PAYMENT IN KIND

         Illustration:

         AGP                                                    —             114

         Constant Factor                                 —                  2.5

         No. of years to pay                            —               15 years

         Hence:

         114 x 2.5 equals 285 cavans (land value)

         285 over 15 years equals 19 cavans yearly payment.

            For farmer-beneficiaries who opt for this mode of payment, a cavan of palay shall weigh not less than 50 kilos.

B.        PAYMENT IN CASH

         Illustration:

         AGP                                                    —             114 cavans

         Constant Factor                                 —                  2.5

         Government Support Price               —             P35.00/cavan

         Capital Recovery Factor

         (interest of 6% p.a. already

         included                                              —                    .102963

         No. of years to pay                            —               15 years

         Hence:

         114 x 2.5 x P35.00 equals P9,975.00

         P9,975.00 x .102963 equals P1,021.00 (annual amortization)

VI.    LEASE RENTALS PAID BEGINNING 1973

            All lease rentals paid by the farmer-beneficiary on crops planted on October 21, 1972 and/or planted thereafter shall be credited as advanced payment.

VII.   DOCUMENTATION

            To evidence the transaction between the parties, a deed of transfer is to be executed. However, before a deed of transfer is prepared, landowners concerned shall present the following documents to MAR field office.

1.         Requirements common to all landowners (titled and untitled properties)

1.1       Copy of the title (owner's copy)

1.2       Tax declaration

1.3       Tax receipt

1.4       Survey plan

2.         Where the property/ies is/are titled.

2.1       Xerox copy of the title duly certified by the Register of Deeds as the exact copy of the title on file.

2.2       Certified copy of the Tax Declaration covering subject property/ies. It is preferable that the Tax Declaration shall contain the area of the land as indicated on the OCT/TCT.   HEISca

3.         Where property/ies is/are untitled.

3.1       Certified copy of the Tax Declaration covering the property.

3.2       Survey plan and technical description of the property duly approved by the Bureau of Lands if available otherwise, PMS prepared by the BL will suffice.

3.3       Real estate clearance of statement.

3.4       Affidavit of landowner that the property/ies as appearing in the approved survey plan is/are exclusively owned by him/them and not subject to adverse claim of third parties.

            Upon presentation of the above-mentioned documents, MARFT shall PREPARE the Deed of Transfer under P.D. No. 27; let both FB and LO sign the deed in the presence of two (2) witnesses. After the Deed of Transfer has been duly prepared and signed by both parties, the same shall be notarized/acknowledged by a Notary Public and registered in the Register of Deeds where the property is situated.

VIII.  MONITORING OF PAYMENT

            The MAR field team office concerned should remind the farmer-beneficiaries of their obligation to pay the agreed amortization whether in cash or in kind at least two weeks before harvest.

For effective monitoring and control purposes, MAR field team office, should be furnished by farmer-beneficiaries with copies of all receipts (Appendix "B") evidencing the payment of amortization whether in cash or in kind made by them to their respective landowners.

IX.    CERTIFICATE OF FULL PAYMENT

            That upon full payment of the land, a certificate of full payment shall be issued by either the landowner of the MAR Team Leader concerned which shall be the basis for the Ministry of Agrarian Reform to issue an Emancipation Patent in favor of each farmer-beneficiary.

For strict compliance.

            Diliman, Quezon City, November 27, 1981.

 

(SGD.) CONRADO F. ESTRELLA
Minister

 

APPENDIX "A"

DEED OF TRANSFER UNDER P. D.27

            This Deed of Transfer under P. D. 27 entered into by and between _____________________________________________________________, of legal age, Filipino, single/married and a resident of ___________________ hereinafter called the LANDOWNER.

 

AND

___________________________ of legal age, Filipino, single/married and a resident of ________________________________________________ hereinafter called the FARMER-BENEFICIARY.

 

W I T N E S S E T H:

            That prior to October 21, 1972, the LANDOWNER was the absolute and exclusive owner of a parcel of rice/corn land, situated in and more particularly bounded and described as follows:

PARCEL NO.

   OCT/TCT No. ___________________________

ROD OF _______________________________

Tax Declaration No. _______________________

CLT No. _______________________________

PMS No. _______________________________

   Bounded on the

NORTH ________________________________

EAST __________________________________

SOUTH ________________________________

  WEST _________________________________

           

            That the above-described landholding is by law covered by Operation Land Transfer pursuant to Presidential Decree No. 27 as of October 21, 1972;   aCTADI

That the LANDOWNER has chosen to be paid directly by the FARMER-BENEFICIARY, and that the FARMER-BENEFICIARY is willing to pay directly;

NOW, THEREFORE, for and in consideration of the amount of P ______________/_____________ cavans, the landowner does hereby convey and transfer pursuant to P.D. 27 to the FARMER-BENEFICIARY the parcel of land above described under the following terms and conditions:

(A)       That LANDOWNER shall consider as advanced payment of the land all rentals paid in the amount of P ______________/_______________ cavans paid by the FARMER-BENEFICIARY beginning the year 1973, to be deducted from the total amount due him;

(B)       That the unpaid balance of P __________/__________ cavan shall be amortized by the FB for a period of 15 equal annual payments in the amount of P __________/__________ cavans per year from date hereof which amount includes principal and interest:

(C)       That FB shall assume payment of realty taxes beginning 1973. In case the landowner paid the taxes, the FB shall reimburse such payment:

(D)       That LANDOWNER shall issue appropriate receipt (see form) for every payment made by FB's, copy furnished MARFT covering the areas, provided that refusal of the landowner to issue receipt shall constitute a valid ground for the farmer-beneficiary to stop payment and deposit the same with the LBP to the account of the LANDOWNER:

(E)       That the land subject of this sale shall be personally cultivated by the FARMER-BENEFICIARY, with the help only of his immediate farm family:

(F)       That, FARMER-BENEFICIARY must be a member of farmers cooperative or a duly registered farmer organization recognized and accredited by Ministry of Agrarian Reform provided such farmer organization has recourse procedures against the farmer in case he fails to comply with the terms and conditions of this Deed; and

That this Deed shall be subject to applicable law, rules, and regulation issued by the Ministry of Agrarian Reform, particularly the following provisions of P.D. No. 27;

            "Title to land acquired pursuant to this Decree or the land reform program of the Government shall not be transferable except by hereditary succession or the government in accordance with the provisions of this Decree, the Code of Agrarian Reform and other existing laws and regulations."

            IN WITNESS, WHEREOF, the parties hereunto set their hands on ________________ at ________________.

________________________ ________________________

        LANDOWNER                 FARMER-BENEFICIARY

Signed in the presence of:

__________________________ __________________________

MAR TEAM LEADER      SN/ARBA REPRESENTATIVE

REPUBLIC OF THE PHILIPPINES )

PROVINCE/CITY _____________)           S. S.

 

ACKNOWLEDGMENT

            At the Municipality of ___________________ in said province/city on this __________ day of _____________, 1981, personally appeared

               NAMES                      Res. Cert. No., Place & Date of Issue

1.      ________________________________________________________________

2.      ________________________________________________________________

            known to me as the same person/s who executed the foregoing instrument of _______________ over ______________, parcels of land, which instrument consists of _________ pages including the page on which this knowledgment is written and signed at the left margin of each page by the party/ies executing this instrument and their witnesses, and said party/ies acknowledges to me that the same is his/her/their free act and deed. The Residence Certificate/s of the party/ies was/were exhibited to me, the same being Nos. _________________ issued at _________ on _______ 1981.

                                                                   

NOTARY PUBLIC
Until December 31, 1981

   Doc. No. ____

Page No. ____

Book No. ____

   Series of 1981.

APPENDIX "B"

                                                                                 Place _________________

                                                                                 Date _________________

 

AMORTIZATION PAYMENT RECEIPT

            Received from ____________________________________ a total of

            (FARMER-BENEFICIARY)

_________________________ Pesos (P_________) / ___________ cavans as amortization payment for the year _______ under a direct payment, in kind/cash payment to the provisions of P.D. No. 27.   HAECID

                                                       

_______________________

(LANDOWNER)

_____________________________

To be accomplished in triplicate:

         Original copy for the landowner

         Duplicate copy for the farmer-beneficiary

         Triplicate copy for the MARFT

SUBJECT     :     LAND TRANSFER CLAIM OF
                           MARIA A. GUIRITAN INVOLVING
                           AN UNTITLED PARCEL OF LAND
                           (Lot 2996, Pls-39), SITUATED IN PAITAN,
                           QUEZON, BUKIDNON.

16 November 1981

TO                :     The Honorable
                           The Deputy Minister
                           Ministry of Agrarian Reform
                           Diliman, Quezon City

Sir:

 

            In connection with your letter dated October 8, 1981 regarding the land transfer claim of Maria A. Guiritan involving an untitled/unregistered parcel of land identified as Lot 2996, Pls-39 located at Paitan, Quezon, Bukidnon, I have the honor to confirm herein the statements contained therein indicating that the said lot is still part of the public domain over which the applicant has not acquired vested right either before or after October 21, 1972 and therefore not compensable under P.D. 27.

 

            With regard to your request for a clear-cut guideline on how cases of this nature should be treated to avoid confusion and misunderstanding in determining whether a public land could be considered as private property as of October 21, 1972, it is necessary that the land covered by a sales application should have been sold at public auction and awarded to the successful bidder, who may be either the applicant or another person, prior to October 21, 1972 and the awardee must have complied with the cultivation requirement of the law and fully paid the purchase price thereof prior to said date. In case the land involved is covered by a homestead application, the same may be considered as private property as of October 21, 1972, if the application therefor had been approved and the applicant had complied with all requirements of the law regarding occupancy, cultivation and residence as of said date as shown principally in the final proof duly submitted by the applicant for approval by this Office. In all cases of public land covered by free patent application duly accepted, processed and found to be patentable under the provisions of the free patent law, said land may be considered as private property of the applicant as of October 21, 1972, considering that under the said law the right of the applicant to a title to such land which is being confirmed administratively retroacts on the date of occupancy and cultivation thereof, either by himself or his predecessor-in-interest on June 12, 1945 or prior thereto. On the other hand, public lands covered by these applications can not be considered private property by the lessee at any time.

 

            In the above-noted cases where public land cannot be considered as private; property as of October 21, 1972, but is under a system of share crop or tenancy, it is informed that P.D. 152 which took effect on March 13, 1973 prohibits "the employment or use of share tenants in whatever form for the purpose of complying with the requirements of the Public Land Act regarding entry, occupation, improvement and cultivation". The Decree also provides that violation thereof shall constitute a ground for the denial, cancellation or rejection of the application and forfeiture of improvements in favor of the Government and mandates that the lands covered thereby "shall be disposed of to other qualified persons who will till the lands themselves but the share tenant actually tilling the land shall be entitled to preferential right to acquire the portion actually tilled by him if he is not otherwise disqualified to apply for the same under the provisions of the Public Land Act." In other words, except in cases of lands covered by free patent applications, lands covered by other public land applications which can not be considered private property of the applicant as of October 21, 1972 are not compensable under P.D. 27, but the tiller or the share tenant has only preferential right to acquire such land or portions thereof in accordance with the provisions of the Public Land Act.

 

            Please be guided accordingly.

 

 

Very truly yours,

RAMON N. CASANOVA, CESO II

Director of Lands

  

   400

COPY FURNISHED:

The President

Land Bank of the Philippines

B.F. Condominium Building

   Intramuros, Manila

MEMORANDUM

To                 :     All Regional Directors District
Officers Team Leaders and Fieldmen

Subject          :     Amendment To Memorandum
Dated January 19, 1982.

           

            It has been brought to my attention that some landholdings are not being subjected under the coverage of OLT by your offices on the basis of transfers of ownership of such lands executed by the landowner after October 21, 1972. Justification for non-coverage has reportedly been made per a statement in my book "Agrarian Reform in the New Society". Third Edition, which states:   cEDaTS

            "To translate into reality the meaning and intent of P.D. No. 27 emancipating the tenant-farmer from bondage, President Marcos directed the Department of Agrarian Reform to launch Operation Land Transfer in November, 1972" (Page 11, Paragraph 1)

            The foregoing statement means that November, 1972 is the launching of Operation Land Transfer and October 21, 1972 remains and still is the effectivity dated of P.D. No. 27. Hence, transfers of ownership of lands covered by P.D. No. 27 executed by landowners after October 21, 1972 shall all be considered acts committed to circumvent P.D. No. 27 as provided under MAR Memorandum Circular No. 8, S. of 1974.

With respect to transfers of ownership of lands covered by P.D. No. 27 executed prior to October 21, 1972, you shall be guided by the following:

 

            Transfers of ownership of lands covered by a Torrens Certificate of Title duly executed prior to October 21, 1972 but not registered with the Register of Deeds concerned before said date in accordance with the Land Registration Act (Act No. 496) shall not be considered a valid transfer of ownership insofar as the tenant-farmers are concerned and therefore the land shall be placed under Operations Land Transfer.

 

            Transfer of ownership of unregistered lands (ownership may be evidenced by tax declaration, deeds of conveyance) executed prior to October 21, 1972 whether registered or not with the Register of Deeds concerned pursuant to Act No. 3344 maybe considered a valid transfer/conveyance as between the parties subject to verification of the due execution of the conveyance/transfer in accordance with the formalities prescribed by law.

In order that the foregoing transfers of ownership mentioned in the preceding two paragraphs maybe binding upon the tenants, such tenants should have knowledge of such transfers/conveyance prior to October 21, 1972, have recognized the persons of the new owners, and have been paying rentals/amortization to such new owners.

 

            Any petition for exemption from OLT coverage on the basis of alleged deeds or instruments evidencing transfers of ownership should be subjected to a careful and thorough investigation. In all cases, the investigation report and other pertinent documents together with the comments and recommendations of the Regional Director concerned should be forwarded to the Minister of Agrarian Reform thru the Bureau of Agrarian Legal Assistance for final consideration and action on the petition.

 

            This supersedes my Memorandum dated January 19, 1982.

 

            Please be guided accordingly.

                                                                                    (SGD.) CONRADO F. ESTRELLA

                                                                                 Minister

MEMORANDUM

For                :     All MAR Field Personnel

Subject          :     SITUATIONS WHERE PUBLIC LAND MAY BE CONSIDERED AS PRIVATE
PROPERTY, HENCE COVERED BY P.D. NO. 27

 

            Lands Director Ramon Casanova in his letter to our Deputy Minister Benjamin R. Labayen has provided clear-cut guidelines on how portions of the public domain can be considered as private property as of October 21, 1972, hence covered by Operation Land Transfer under P.D. No. 27.

Following are the situations where such lands are considered private property:

 

1.         Land covered by sales application — The area should have been sold at public auction and awarded to the successful bidder, who may be either the applicant or another person, prior to October 21, 1972, and the awardee must have complied with the cultivation requirement of the law and fully paid the purchase price thereof prior to said date.

 

2.         Land covered by homestead application — The application had been approved and applicant had complied with all requirements of the law regarding occupancy, cultivation and residence as of said date as shown principally in the final proof duly submitted by the applicant for approval by the Bureau of Lands.

 

3.         Land covered by free patent application — In all cases, the land may be considered private property if application has been duly accepted, processed and found to be patentable under the provisions of the free patent law considering that under the said law the right of the applicant to the title to such land which is being confirmed administratively retroacts on the date of occupancy and cultivation thereof, either by himself or his Predecessor-in-interest on June 12, 1945, or prior thereto.