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DISTINCTIONS
LEASEHOLD TENANCY
I - LEGAL BASIS:
1. Republic Act No. 3844- Agricultural Land Reform Code
(August 8, 1963)
2. Republic Act No. 6389- Code of Agrarian Reform
(September 10, 1971)
3. Presidential Decree No. 1425-Amending Presidential
Decree No. 1040 by Strengthening the Prohibition against
Agricultural Share, Tenancy and Providing Penalties for Violation
thereof. (June 10, 1978)
4. Section 12, Republic Act No. 6657- Comprehensive
Agrarian Reform Law of 1988.
II JURISPRUDENCE ON CONSTITUTIONALITY
1. Security of Tenure- Primero vs. CIR, 10 Phil. 675 (1957);
Pineda vs. de Guzman, 21 SCRA 1450 (1967).
III COVERAGE OR SCOPE
Agricultural Leasehold shall
apply
to
all tenanted
agricultural lands, including but not limited to the following
A. Retained areas under R.A. 6657 and P.D. 27;
B. Tenanted Agricultural Lands not yet acquired for
distribution under CARP pursuant to RA 6657;
C. All tenanted areas under Section 10 of RA 6657 which may
be covered by this Order. (Administrative Order No. 4, Series of
1989)
IV - AREA OF COVERAGE
hectares or more, or is of sufficient size to make him and the
members of his immediate farm household fully occupied in
its cultivation, to CONTRACT TO WORK at the same time on
TWO OR MORE SEPARATE HOLDINGS belonging to different
landholders under any system of tenancy WITHOUT THE
KNOWLEDGE AND CONSENT of the landholder with whom he
first entered into tenancy relationship. (Par. 1, Sec. 24, republic Act
No. 1199)
V EXEMPTION OR EXCLUSION FROM COVERAGE
Absence of any of the six (6) Essential Elements of Tenancy
Relationship.
Essential Elements of Tenancy Relationship:
1.
2.
3.
4.
5.
6.
VI - RETENTION
In Leasehold Tenancy, the Landowner or agricultural lessor RETAIN OWNERSHIP
of the subject landholding.
The
landowner
EXERCISES
the
ATTRIBUTED
OF
OWNERSHIP. Under Art. 428 of the New Civil Code. The OWNER has
the RIGHT TO DISPOSE OF a thing without other limitation than
those imposed by law. As an incident of ownership, Therefore, there is
nothing to prevent a landowner from DONATING his NAKED TITLE TO
THE LAND. However, the new owner MUST RESPECT THE RIGHT OF
THE TENANT.
The agricultural leasehold relation under this Code shall not be
extinguished by MERE EXPIRATION OF THE TERM OR PERIOD in
a leasehold contract nor by the SALE, ALIENATION OR TRANSFER
of the legal possession of the landholding. In case the agricultural
lessor SELLS, ALIENATES, OR TRANSFER the legal possession of
the landholding, the PURCHASER OR TRANSFEREE thereof shall
be subrogated to the right and substituted to the obligations of
the agricultural lessor (see. 10, RA 3844)
VII
- BENEFICIARIES
The beneficiaries under Republic Act No. 1199, Republic Act No.
3844 as amended by Republic Act No. 6389 are SHARE-TENANT
OR AGRICULTURAL LESSEES (TENANTS). Thus:
In the INTERPRETATION AND ENFORCEMENT of this Act
and other laws as well as of the stipulation between the landholder
and the tenant the COURTS AND ADMINISTRATIVE OFFICIALS
SHALL RESOLVE ALL GRAVE DOUBTS IN FAVOR OF THE
TENANT. (Sec. 56, Republic act No. 1199)
VIII
- AWARD CEILING
AGRICUTLURAL LEASEHOLD CONTRACT IN GENERAL.- The agricultural lessor and the agricultural lessee shall be
FREE to ENTER into any kind of TERMS, CONDITIONS or
STIPULATIONS in a LEASEHOLD CONTRACT as long as they
are not contrary to LAW, MORALS OR PUBLIC POLICY. (Sec.
15 Republic Act No. 3844).
Except in case of mistake, violence, intimidation, undue
influence, or fraud, an AGRICULTURAL CONTRACT reduced in
writing and registered as hereinafter provided, SHALL BE
CONCLUSIVE BETWEEN THE CONTRACTING PARTIES, if not
DENOUNCED OR IMPUGNED WITHIN THIRTY DAYS AFTER
REGISTRATION (Sec. 17, Republic Act No. 3844)
XII -
2. Deductible items
a. Seedlings
b. Cost of Harvesting
c. Cost of Threshing
d. Cost of Loading
e. Cost of Hauling
f. Cost of Processing
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.
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.
5. In the absence of any agreement as to the rental, the maximum
allowed shall be applied.
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.
7. In case of Disagreement the Court shall determine the
reasonably increase in rental.
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.
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.
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 to retention except if LOI 474 (October 21,
1976) applies.
Rule 3
Landholding of seven (7) hectares or less is EXEMPTED from OLT
except if LOI 474 is applicable under the following circumstances:
7
under
CROP
YEARS
IMMEDIATELY
PROMULGATION OF THIS DEGREE.
PRECEDING
THE
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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).
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.
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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).
The TITLES awarded to farmer-beneficiaries CARP are the
following:
1. Free Patent for Public Alienation and Disposable lands;
2. CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA) for
Resettlement sites:
3. STEWARDSHIP
CONTRACT
for
Lands
covered
by
INTERGRATED SOCIAL FORESTRY PROGRAM (ISFP); and
4. CLOA for Private of Agricultural Lands.
7. Tax Declaration;
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
government financing institution on the land.
from
any
where:
LV = Land Value
CNI = Capitalized Net Income
CS = Comparable Sales
MV = Market Value per Tax Declaration
The above formula shall be used if all three
factors are present, relevant and applicable.
A.1. When the CS factor is not present and
CNI and MV are applicable, the formula shall be:
LV = (CNI x 0.9) + (MV x 0.1)
A.2. When the CNI factor is not present and
CS and MV are applicable, the formula shall be:
LV = (CS x 0.9) + (MV x 0.1)
A.3. When both CS and CNI are not present and only MV is
applicable, the formula shall be;
LV = (MV x 2)
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