NOTES: EVOLUTION OF JUST COMPENSATION

Chapter VI Compensation FORMULA

NOTE: LAND REFORM ACT OF 1955, RA 1400

Section 17 as last updated by RA 9700 (2009)
\\\1955
Determination of Just Compensation. —
\\\Within sixty days from the preliminary negotiation, conduct
investigations and technical surveys to determine title to the
In determining just compensation, the cost of
land and its real value, taking into account
acquisition of the land, the value of the standing crop, (a) the prevailing prices of similar lands in the immediate area,
the current value of like properties, its nature, actual (b) the soil conditions topography and climate hazards,
use and income, the sworn valuation by the owner, (c) actual production,
the tax declarations, the assessment made by (d) accessibility, and
government assessors, and seventy percent (70%) of (e) improvements; and
the zonal valuation of the Bureau of Internal Revenue
(BIR), translated into a basic formula by the DAR NOTE: BASED ON THE ANNUAL LEASE RENTAL INCOME, in addition
shall be considered, subject to the final decision of to other factor that may be considered
the proper court. The social and economic benefits \\\RA 3844 AGRICULTURAL LAND REFORM CODE 1963
contributed by the farmers and the farmworkers and \\\SEC. 56. Just Compensation.—In determining the just
by the Government to the property as well as the compensation of the land to be expropriated pursuant to this
nonpayment of taxes or loans secured from any Chapter, the Court, in land under leasehold, shall consider as a
government financing institution on the said land shall basis, without prejudice to considering other factors also, the
be considered as additional factors to determine its annual lease rental income authorized by law capitalized at the
rate of six per centum per annum. The owner of the land
valuation.
expropriated shall be paid in accordance with Section eighty of
--------------------------------------------------------- this Act by the Land Bank and pursuant to an arrangement
JUST COMPENSATION herein authorized.

NOTE: 2.5 x the average harvest of three normal crop years

NOTES: definition
\\\PD 27, Tenant Emancipation Law , 1972
\\\For the purpose of determining the cost of the land to be
NOTE: full and fair equivalent
transferred to the tenant-farmer pursuant to this Decree, the
\\\It was further stressed in Honeycomb that just compensation
value of the land shall be equivalent to two and one-half (2 ½)
paid for lands taken pursuant to the State's agrarian reform
times the average harvest of three normal crop years
program refers to the
immediately preceding the promulgation of this Decree;
\\\"full and fair equivalent of the property taken from its owner
by the expropriator x x x
\\\[the measure of which] is not the taker's gain but the owner's
NOTE: (average gross production x 2.5) x government support
loss.
price of a cavan palay or corn
\\\The word 'just' is used to intensify the meaning of the word
\\\Executive Order No. 228, 1987
'compensation' to convey the idea that the equivalent to be
\\\Henceforth, the valuation of rice and corn lands covered by
rendered for the property to be taken shall be real, substantial,
P.D. No. 27 shall be based on the average gross production
full and ample."24
determined by the Barangay Committee on Land Production in
source: [SECOND DIVISION G.R. No. 175726, March 22, 2017
accordance with Department Memorandum Circular No. 26,
LAND BANK OF THE PHILIPPINES, Petitioner, v. HEIRS OF ANTONIO
series of 1973, and related issuances and regulations of the
MARCOS, SR., NAMELY: ANITA M. RUBIO, LOLITA M. PELINO,
Department of Agrarian Reform. The average gross production
ANTONIO MARCOS, JR. AND RAMIRO D. MARCOS, Respondents.
per hectare shall be multiplied by two and a half (2.5), the
D E C I S I O N PERALTA, J.:]
product of which shall be multiplied by Thirty Five Pesos (P35.00),
the government support price for one cavan of 50 kilos of palay
NOTE: WITHOUT PROMPT PAYMENT, it cannot be “JUST”
on October 21, 1972, or Thirty One Pesos (P31.00), the
\\\The concept of just compensation embraces not only the
government support price for one cavan of 50 kilos of corn on
correct determination of the amount to be paid to the owners
October 21, 1972, and the amount arrived at shall be the value
of the land, but also payment within a reasonable time from its
of the rice and corn land, as the case may be, for the purpose
taking. Without prompt payment, compensation cannot be
of determining its cost to the farmer and compensation to the
considered "just" inasmuch as the property owner is made to
landowner.
suffer the consequences of being immediately deprived of his
land while being made to wait for a decade or more before
NOTE: MULTIPLE FACTORS considered below:
actually receiving the amount necessary to cope with his loss.16
\\\RA 6657, Comprehensive Agrarian Reform Law of 1988 \\\In

SOURCE: [G.R. No. 184406 March 14, 2012 LAND BANK OF THE
determining just compensation,
PHILIPPINES, Petitioner, vs. PERFECTO OBIAS, ET. AL., Respondents. 1. the cost of acquisition of the land,
D E C I S I O N PEREZ, J.:] 2. the value of the standing crop,
--------------------------------------------------------- 3. the current value of like properties,
4. its nature, [of the land,]
5. actual use [of the land,]
• __

6.
income,[of the land,]
7.
the sworn valuation by the owner,
8.
the tax declarations,
9.
the assessment made by government
assessors,
10. seventy percent (70%) of the zonal valuation
of the Bureau of Internal Revenue (BIR),
translated into a basic formula by the DAR
shall be considered, subject to the final
decision of the proper court.
11. The social and economic benefits contributed
by the farmers and the farmworkers and by
the Government to the property
12. as well as the nonpayment of taxes or loans
secured from any government financing
institution on the said land shall be
considered as additional factors to determine
its valuation.
---------------------------------------------------------
JUST COMPENSATION

NOTES: LAND VALUATION FACTORS

NOTE: CAPITALIZED NET INCOME (CNI)

\\\actual use [of the land,]
\\\income,[of the land,]

NOTE: COMPARABLE SALES (CS)

\\\seventy percent (70%) of the zonal valuation of
the Bureau of Internal Revenue (BIR), translated into
a basic formula by the DAR shall be considered,
subject to the final decision of the proper court.

NOTE: MARKET VALUE (MV)

\\\the tax declarations
---------------------------------------------------------
NOTES: FORMULA FOR LAND VALUATION

NOTE: When all factors are present

\\\ LV = (CNI x 0.6) +(CS x 0.3) + (MV x 0.1)

NOTE: When COMPARABLE SALES (CS) - ZONAL valuation by BIR

is not present
\\\ LV = (CNI x 0.9) + (MV x 0.1)

NOTE: When CAPITALIZED NET INCOME (CNI) - use/income of the

land is not present
\\\ LV =(CS x 0.9)+ (MV x 0.1)

NOTE: When CAPITALIZED NET INCOME (CNI) - and CAPITALIZED ---------------------------------------------------------

NET INCOME (CNI) is not present JUST COMPENSATION
\\\ LV=MV x 2

NOTES: RULES FOR THE FORMULA BASIS OF JUST

COMPENSATION

NOTE: The value of the property at the time it was taken from the
owner and appropriated by the government shall be the basis
\\\HACIENDA LUISITA V. PARC GR 171101, April 14 2012)

2
• __

NOTE: “Time of taking” is that event when the landowner was

deprived of the use and benefit of his property,
- such as when title is transferred to the RP, (LBP v.
Livioco, GR 170685)
- or when title is transferred in the name of the
beneficiaries (LBP v. Heirs of Alsua, GR 211351)
- Taking also occurs when agricultural lands are
voluntary offered by a landowner and approved by
PARC for CARP coverage through stock distribution
scheme (HACIENDA LUISITA V. PARC GR 171101, April
14 2012)
- If the government takes possession of the land before
the institution of expropriation proceedings, the value
should be fixed as of the time of the taking of
possession, not the filing of the complaint ( HACIENDA
LUISITA V. PARC GR 171101, April 14 2012)
- [Here the formula was based on CARL] [because the
process is not yet concluded even when the date of
taking was during PD 27] In Lubrica v. Land Bank of the
Philippines, the Court declared that it would be highly
inequitable on the part of the landowners therein to
compute just compensation using the values at the
time of taking in 1972, and not at the time of payment, \\\DEPARTMENT OF AGRARIAN REFORM
considering that the government and the farmer- ADMINISTRATIVE ORDER NO. 07, SERIES OF
beneficiaries have already benefited from the land
although ownership thereof bas not yet been 2011
transferred in their names. The same equitable ---------------------------------------------------------
consideration is applicable to the factual milieu of the JUST COMPENSATION
instant case. The records show that respondents’
property had been placed under the agrarian reform
program in 1972 and had already been distributed to NOTES: DEPARTMENT OF AGRARIAN REFORM
the beneficiaries but respondents have yet to receive ADJUDICATION BOARD (DARAB)
just compensation due them. (Emphases supplied)
[FIRST DIVISION G.R. No. 192345, March 29, 2017 LAND
BANK OF THE PHILIPPINES, Petitioner, v. SPOUSES
NOTES: Provincial Agrarian Reform Adjudication
ESTEBAN AND CRESENCIA CHU, Respondents. D E C I S I Board (PARABs) AND Regional Agrarian Reform
O N DEL CASTILLO, J.:] Adjudicators (RARADs)
---------------------------------------------------------
NOTE: Principal Role of Board/Adjudicator.
JUST COMPENSATION
\\\RULE XIX Preliminary Determination of Just Compensation
\\\2009 DEPARTMENT OF AGRARIAN REFORM ADJUDICATION
NOTES: PROCEDURE FOR DETERMINATION OF JUST BOARD (DARAB) RULES OF PROCEDURE
COMPENSATION \\\SECTION 1. Principal Role of Board/Adjudicator. — The
principal role of the Board/Adjudicator in the summary
1. The valuation by the LBP administrative proceedings for the preliminary determination of
2. DAR, using the valuation by the LBP, makes an offer to the just compensation is to determine whether the Land Bank of the
landowner. Philippines (LBP) and the Department of Agrarian Reform (DAR) in
- if the landowner rejects their land valuation computations have complied with the
- DAR conducts a summary administrative administrative orders and other issuances of the Secretary of the
proceeding. (DARAB?) DAR and the LBP
- If a party rejects the decision of DAR,
party may bring the matter to SAC NOTE: WHO CONDUCTS THE PROCEEDINGS (BASED ON AMOUNT)
for the determination of just \\\RULE XIX Preliminary Determination of Just Compensation
compensation \\\2009 DEPARTMENT OF AGRARIAN REFORM ADJUDICATION
BOARD (DARAB) RULES OF PROCEDURE
\\\ 2009 DEPARTMENT OF AGRARIAN REFORM ADJUDICATION \\\SECTION 2. By whom Conducted. — The preliminary
BOARD (DARAB) RULES OF PROCEDURE proceedings of land
valuation for the purpose of the determination of just
compensation for its acquisition
shall be conducted:

3
• __

- a. by the PARAD when the initial land valuation of the \\\For the guidance of the bench, the bar, and the public, we
Land Bank of the Philippines (LBP) is less than Ten reiterate the rule: Out of regard for the DAR's expertise as the
Million Pesos (PhP10,000,000.00); concerned implementing agency, courts should henceforth
- b. by the RARAD when the said valuation is Ten Million consider the factors stated in Section 17 of RA 6657, as
Pesos and above but less than Fifty Million Pesos amended, as translated into the applicable DAR formulas in
(PhP50,000,000.00); and their determination of just compensation for the properties
- c. by the Board (DARAB?) when the said valuation is covered by the said law.
Fifty Million Pesos (PhP50,000,000.00) and above. \\\If, in the exercise of their judicial discretion, courts find that a
strict application of said formulas is not warranted under the
In the event of non-availability, inhibition or disqualification of a specific circumstances of the case before them,
designated PARAD in the locality, the RARAD concerned may - they may deviate or depart therefrom,
conduct preliminary proceedings of land valuation - provided that this departure or deviation is supported
notwithstanding that the jurisdictional amount is less than Ten by a reasoned explanation grounded on the evidence
(10) Million Pesos. on record.
- In other words, courts of law possess the
On account of non-availability, inhibition or disqualification of power to make a final determination of just
the RARAD concerned, the Board(DARAB?) may conduct the compensation.
preliminary proceedings of land valuation or designate the ---------------------------------------------------------
same to an Adjudicator from among the PARADs in the region.
JUST COMPENSATION
---------------------------------------------------------
JUST COMPENSATION
NOTES: Consent of the Beneficiary NOT NECESSARY

NOTES: Valuation by DARAB is not conclusive

Section 18 below [Valuation and Mode of
NOTE: Landowner may file Original Action with the SAC for final Compensation]: no mention of beneficiary
determination
\\\RULE XIX Preliminary Determination of Just Compensation NOTE: [CARL SECTION 18] [As
may be gleaned from the
\\\2009 DEPARTMENT OF AGRARIAN REFORM ADJUDICATION aforementioned section, the landowner, the DAR and
BOARD (DARAB) RULES OF PROCEDURE the Land Bank are the only parties involved. The law
\\\SECTION 6. Filing of Original Action with the Special Agrarian does not mention the participation of the farmer-
Court for Final Determination. — The party who disagrees with beneficiary.
the decision of the Board/Adjudicator may contest the same by \\\ source: SECOND DIVISION G.R. No. 128557 December 29,
filing an original action with the Special Agrarian Court (SAC) 1999 LAND BANK OF THE PHILIPPINES, petitioner, vs. COURT OF
having jurisdiction over the subject property within fifteen (15) APPEALS and JOSE PASCUAL, respondents.
days from his receipt of the Board/Adjudicator’s decision. \\\However, when the judgment became final and
executory, petitioner LBP as the financing arm in the
Immediately upon filing with the SAC, the party shall file a Notice operation of PD 27 and EO 228 refused to pay
of Filing of Original Action with the Board/Adjudicator, together \\\Petitioner further argues that for a financing or
with a certified true copy of the petition filed with the SAC.
guarantee agreement to exist there must be at least
three (3) parties:
Failure to file a Notice of Filing of Original Action or to submit a
- the creditor, the debtor and the financier or
certified true copy of the petition shall render the decision of the
Board/Adjudicator final and executory. Upon receipt of the
the guarantor.
Notice of Filing of Original Action or certified true copy of the
- Since petitioner merely guarantees or
petition filed with the SAC, no writ of execution shall be issued finances the payment of the value of the land,
by the Board/Adjudicator. - the farmer-beneficiary's consent, being the
--------------------------------------------------------- principal debtor, is indispensable and that
the only time petitioner becomes legally
JUST COMPENSATION bound to finance the transaction is when the
farmer-beneficiary approves the appraised
NOTES: Prevailing Rule Regarding the Determination land value.
of Just Compensation - Petitioner fears that if it is forced to pay the
value determined by the DARAB, the
government will suffer losses as the farmer-
courts of law possess the power to make a final beneficiary, who does not agree to the
determination of just compensation. appraised land value, will surely refuse to
reimburse the amounts that petitioner had
NOTE: source: [EN BANC G.R. Nos. 181912 & 183347, November disbursed.
29, 2016 RAMON M. ALFONSO, Petitioner, v. LAND BANK OF THE - Thus, it asserts, that the landowner, the DAR,
PHILIPPINES AND DEPARTMENT OF AGRARIAN REFORM, the Land Bank and the farmer-beneficiary
Respondents. D E C I S I O N JARDELEZA, J.:]
must all agree to the value of the land as
determined by them.

4
• __

--------------------------------------------------------- whether in full or in part, he shall be

Section 18 paid correspondingly in LBP bonds;
Valuation and Mode of Compensation. — b. Transferability and negotiability. Such
The LBP shall compensate the landowner in such LBP bonds may be used by the
amounts as may be agreed upon by the landowner landowner, his successors in interest
and the DAR and the LBP, in accordance with the or his assigns, up to the amount of
criteria provided for in Sections 16 and 17 and other their face value, for any of the
pertinent provisions hereof, or as may be finally following:
determined by the court, as the just compensation for i. Acquisition of land or other real
the land. properties of the government,
The compensation shall be paid in one of the including assets under the
following modes, at the option of the landowner: Asset Privatization Program
1. Cash payment, under the following terms and and other assets foreclosed
conditions; by government financial
institutions in the same
a. For lands - Twenty-five percent province or region where the
above fifty (25%) cash, the lands for which the bonds
(50) balance to be were paid are situated;
hectares, paid in ii. Acquisition of shares of stock of
insofar as government government-owned or
the excess financial controlled corporations or
hectarage instruments shares of stocks owned by the
is negotiable at government in private
concerned any time. corporations;
. iii. Substitution for surety or bail
b. For lands - Thirty percent bonds for the provisional
above (30%) cash, the release of accused persons,
twenty- balance to be or performance bonds;
four (24) paid in iv. Security for loans with any
hectares government government financial
and up to financial institution, provided the
fifty (50) instruments proceeds of the loans shall be
hectares. negotiable at invested in an economic
any time. enterprise, preferably in a
small- and medium-scale
c. For lands - Thirty-five percent industry, in the same province
twenty- (35%) cash, the or region as the land for which
four (24) balance to be the bonds are paid;
hectares paid in v.Payment for various taxes and
and government fees to government; Provided,
below. financial That the use of these bonds
instruments for these purposes will be
negotiable at limited to a certain percentage
any time. of the outstanding balance of
2. Shares of stock in government-owned or the financial instruments:
controlled corporations, LBP preferred Provided, further, That the
shares, physical assets or other qualified PARC shall determine the
investments in accordance with guidelines set percentage mentioned above;
by the PARC; vi. Payment for tuition fees of the
3. Tax credits which can be used against any immediate family of the
tax liability; original bondholder in
4. LBP bonds, which shall have the following government universities,
features: colleges, trade schools, and
a. Market interest rates aligned with 91- other institutions;
day treasury bill rates. Ten percent vii. Payment for fees of the
(10%) of the face value of the bonds immediate family of the
shall mature every year from the date original bondholder in
of issuance until the tenth (10th) year: government hospitals; and
Provided, That should the landowner viii. Such other uses as the PARC
choose to forego the cash portion, may from time to time allow.

5
• __

in interest or his assigns, up to the amount of their

In case of extraordinary inflation, the PARC shall take face value, for any of the following:
appropriate measures to protect the economy. - \\\Acquisition of land or other real
--------------------------------------------------------- properties of the government, including
assets under the Asset Privatization Program
JUST COMPENSATION
and other assets foreclosed by government
financial institutions in the same province or
NOTES: Mode of Payment of just compensation region where the lands for which the bonds
were paid are situated;
[at the option of the landowner: ] - \\\Acquisition of shares of stock of
government-owned or controlled
1:Cash payment, under the following terms and corporations or shares of stocks owned by
conditions; the government in private corporations;
\\\ - \\\Substitution for surety or bail bonds for
the provisional release of accused
persons, or performance bonds;
For lands above fifty Twenty-five percent
- \\\Security for loans with any government
(50) hectares, insofar as (25%) cash,
financial institution, provided the proceeds
the excess hectarage is
of the loans shall be invested in an economic
concerned the balance to be paid in
enterprise, preferably in a small- and medium-
government financial
scale industry, in the same province or region
instruments negotiable
as the land for which the bonds are paid;
at any time.
- \\\Payment for various taxes and fees to
government; Provided, That the use of these
For lands above twenty- Thirty percent (30%)
bonds for these purposes will be limited to a
four (24) hectares and cash, the balance to be
certain percentage of the outstanding balance
up to fifty (50) hectares. paid in government
of the financial instruments: Provided, further,
financial instruments
That the PARC shall determine the
negotiable at any time.
percentage mentioned above;
For lands twenty-four Thirty-five percent (35%) - \\\Payment for tuition fees of the
(24) hectares and cash, the balance to be immediate family of the original
below. paid in government bondholder in government universities,
financial instruments colleges, trade schools, and other
negotiable at any time. institutions;
- \\\Payment for fees of the immediate family
of the original bondholder in government
2:Shares of stock in government-owned or controlled hospitals; and
corporations, LBP preferred shares, physical assets - \\\Such other uses as the PARC may from
or other qualified investments time to time allow.
- \\\ in accordance with guidelines set by the
PARC; RULE: Landowner cannot insist a payment of cash only.
- EN BANC G.R. No. 78742 July 14, 1989 ASSOCIATION OF
3: Tax credits which can be used against any tax SMALL LANDOWNERS IN THE PHILIPPINES, INC. v.
liability; Secretary of Agrarian Reform
\\\ - Accepting the theory that payment of the just
compensation is not always required to be made fully
4: LBP bonds, which shall have the following features: in money, we find further that the proportion of cash
payment to the other things of value constituting the
\\a.\Market interest rates aligned with 91-day total payment, as determined on the basis of the areas
treasury bill rates. Ten percent (10%) of the face of the lands expropriated, is not unduly oppressive
value of the bonds shall mature every year from the upon the landowner. It is noted that the smaller the
date of issuance until the tenth (10th) year: land, the bigger the payment in money, primarily
- \\\Provided, That should the landowner because the small landowner will be needing it more
choose to forego the cash portion, whether in than the big landowners, who can afford a bigger
full or in part, he shall be paid correspondingly balance in bonds and other things of value. No less
importantly, the government financial instruments
in LBP bonds;
making up the balance of the payment are
"negotiable at any time." The other modes, which are
\\b.\Transferability
and negotiability. Such LBP
likewise available to the landowner at his option, are
bonds may be used by the landowner, his successors
also not unreasonable because payment is made in
shares of stock, LBP bonds, other properties or assets,

6
• __

tax credits, and other things of value equivalent to the \\\

amount of just compensation.
- It cannot be denied from these cases that the NOTE: DOCUMENTARY REQUIREMENTS FOR VOLUNTARY OFFER
traditional medium for the payment of just FOR SALE
compensation is money and no other. And so, - \\\certified copy of the original OCT/TCT on file with
conformably, has just compensation been paid in the ROD and Photocopy of ODC,
past solely in that medium. However, we do not deal - \\\ if available copy of latest Tax Declaration in the
here with the traditional excercise of the power of name of the registered owner duly certified by the
eminent domain. This is not an ordinary expropriation Municipal/City Assessor \\\copy of Approved Survey
where only a specific property of relatively limited area Plan or Sketch Plan of the Property certified by a
is sought to be taken by the State from its owner for a licensed GE
specific and perhaps local purpose. What we deal with - \\\ If the landowner fails to submit, the land will be
here is a revolutionary kind of expropriation. subjected to compulsory acquisition.
- The expropriation before us affects all private ---------------------------------------------------------
agricultural lands whenever found and of whatever
Section 20
kind as long as they are in excess of the maximum
retention limits allowed their owners. This kind of
Voluntary Land Transfer. —
expropriation is intended for the benefit not only of a
Landowners of agricultural lands subject to
particular community or of a small segment of the acquisition under this Act may enter into a voluntary
population but of the entire Filipino nation, from all arrangement for direct transfer of their lands to
levels of our society, from the impoverished farmer to qualified beneficiaries subject to the following
the land-glutted owner. guidelines:
- Such a program will involve not mere millions of pesos. a. All notices for voluntary land transfer must be
The cost will be tremendous. Considering the vast areas submitted to the DAR within the first year of
of land subject to expropriation under the laws before the implementation of the CARP. Negotiations
us, we estimate that hundreds of billions of pesos will be between the landowners and qualified
needed, far more indeed than the amount of P50 beneficiaries covering any voluntary land
billion initially appropriated, which is already staggering transfer which remain unresolved after one (1)
as it is by our present standards. Such amount is in fact year shall not be recognized and such land
not even fully available at this time. shall instead be acquired by the government
--------------------------------------------------------- and transferred pursuant to this Act.
JUST COMPENSATION b. The terms and conditions of such transfer
shall not be less favorable to the transferee
than those of the government's standing offer
NOTES: CRIMINAL VIOLATION
to purchase from the landowner and to resell
to the beneficiaries, if such offers have been
NOTE: The unjustified, willful, and made and are fully known to both parties.
malicious act by a responsible officer or c. The voluntary agreement shall include
officers of the government through the sanctions for non-compliance by either party
and shall be duly recorded and its
following:
implementation monitored by the DAR.
---------------------------------------------------------
4. Any undue delay, refusal or failure in MODE OF ACQUISITION:: VOLUNTARY LAND
the payment of just compensation; TRANSFER [direct from landowner to beneficiary]
\\\
---------------------------------------------------------
UNTIL JUNE 30, 2009 ONLY (as amended by RA
Section 19
9700)
Incentives for Voluntary Offers for Sale. —
Landowners, other than banks and other financial
NOTE: [Landowners] [may enter into a voluntary
institutions, who voluntarily offer their lands for sale
shall be entitled to an additional five percent (5%) arrangement for direct transfer of their lands to
cash payment. qualified beneficiaries] [guidelines]
\\a\All notices for voluntary land transfer must be
---------------------------------------------------------
submitted to the DAR within the first year of the
JUST COMPENSATION FOR implementation of the CARP.
- \\\Negotiations between the landowners and
MODE OF ACQUISITION: Voluntary Offers for Sale qualified beneficiaries covering any voluntary
(VOS) land transfer which remain unresolved after
one (1) year shall not be recognized and
NOTE:shall be entitled to an additional five percent such land shall instead be acquired by the
(5%) cash payment.

7
• __

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 its implementation
monitored by the DAR.
---------------------------------------------------------
Section 21
Payment of Compensation by Beneficiaries Under
Voluntary Land Transfer. —

Direct payments in cash or in kind may be made by

the farmer-beneficiary to the landowner under terms
to be mutually agreed upon by both parties, which
shall be binding upon them, upon registration with
and approval by the DAR. Said approval shall be
considered given, unless notice of disapproval is
received by the farmer-beneficiary within thirty (30)
days from the date of registration.

In the event they cannot agree on the price of land,

the procedure for compulsory acquisition as provided
in Section 16 shall apply. The LBP shall extend
financing to the beneficiaries for purposes of
acquiring the land.
---------------------------------------------------------
MODE OF PAYMENT:: VOLUNTARY LAND TRANSFER
[direct from landowner to beneficiary]

UNTIL JUNE 30, 2009 ONLY (as amended by RA

9700)

NOTE: CASH PAYMENT

\\\Direct payments in cash or in kind may be made
by the farmer-beneficiary to the landowner under
terms to be mutually agreed upon by both parties,
which shall be binding upon them, upon registration
with and approval by the DAR.
---------------------------------------------------------