Procedure for expropriation

Posted by Admin | Posted in Special Civil Actions | Posted on

16-07-2010

There are two stages in expropriation. The decisions of the

court in both instances are final and appealable. Multiple
appeals are allowed in this case.

Stage 1: Determination of the Right to Expropriate

The government or LGU will file a verified complaint:
a)

stating its right and the purpose for its exercise

b)

description of the property

c)
name of all persons owning, or claiming to own, or
occupying it, showing as far as practicable their separate
interest
d)
if the title to the property is in the name of the Republic
of the Philippines but is occupied by a private individual, or if
the title is obscure or doubtful, this fact must be stated
Upon filing of the complaint, the expropriator may enter the
property after depositing a certain amount with an
authorized government depositary. The value of the deposit
will vary if it is real property, the assessed value for tax
purposes, and if it is personal property, the court will
provisionally determine it.
If it is an LGU expropriating a real property, the deposit
should be equal to 15% of the market value of the property
based on the tax declaration.
If the acquisition involves property to be used for national
government infrastructure projects (RA 8794), the
government should deposit 100% of the value of the property

based on the current zonal valuation of the Bureau of Internal

Revenue, including the value of improvements, if any.

These amounts are only provisional; the purpose is only to

allow the plaintiff/expropriator to enter the property while the
case is pending. It is for the protection of the property
owner, who, in the meantime, will be deprived of the use and
enjoyment of his/her property. If the case pushes through,
the court will still have to determine the amount of just
compensation to be paid to the owner in exchange for his or
her property.
Then, the court may either dismiss the complaint or issue an
Order of Expropriation declaring the plaintiffs right to
expropriate.

Stage 2: Determination of Just Compensation

The just compensation is equivalent to the fair market value
of the property that is the price agreed upon by a buyer not
compelled to buy and a seller not compelled to sell. This is
to avoid a price that is either lower or higher than the actual
market value. www.pinoylegal.com
The court will determine the just compensation with the aid
of commissioners. The court will appoint not more than three
competent and disinterested persons. They are to submit a
report with recommendations to the court after they have
viewed and examined the property. The court may wholly or
partially accept or reject their report, securing the rights of
both parties in either case. www.pinoylegal.com
Just compensation means not only the correct determination
of the amount to be paid to the owner, but also payment
within reasonable time after taking. Without prompt
payment, compensation cannot be considered just. (Republic

vs. Lim, June 29, 2005) www.pinoylegal.com Read the rest of

this entry

behalf of the LGU, to pursue expropriation proceedings over a

particular private property. pinoylegal
2) It is exercised for public purpose, use or welfare, or for the
benefit of the poor and the landless.
3) There is payment of just compensation.
www.pinoylegal.com

State Powers: Eminent Domain

4) A valid and definite offer has been previously made to the

owner but it was rejected.

Posted by Admin | Posted in Philippine Constitution, Special

Civil Actions | Posted on 16-07-2010

The power of eminent domain involves the power and right of

the state (through its government) to appropriate or take
private property to be used for a public purpose. This process
of taking is popularly known as expropriation. A compulsory
sale to the government, it places a limitation on ones
property rights. That is why, before the government can
validly take any private property, it must comply with strict
legal requirements. This is in accord with the Constitution
which says: no person shall be deprived of property without
due process of law.pinoylegal
The following are the basic limitations on the exercise of this
power:
1) It must be for a public purpose; www.pinoylegal.com
2) There must be a necessity for its exercise, which should be
genuine and public in character; and
3) The owner of the private property must be paid just
compensation.
But for local government units (province, city, municipality or
barangay), the requirements are more specific.
1) There must be an ordinance enacted by the local
legislative council authorizing the local chief executive, in

5) It must be in accordance with RA 7279 (Urban

Development and Housing Act of 1992), specifically:
a) Section 9: In the order of priority in the acquisition of land,
privately-owned land ranks last.
b) Section 10: As to the modes of land acquisition,
expropriation should be used only when other modes (joint
venture agreement or negotiated purchase) have been
exhausted.pinoylegal

The government can acquire private real property for such

projects through donation, negotiated sale, expropriation and
other modes of acquisition authorized by existing laws.
Since negotiated sales and expropriations are often
contentious and result in delays, the law states in detail the
procedures to be followed by the government agency
concerned and the time frames that the courts should
observe in resolving expropriation issues.

New expropriation law

The idea is, time is of the essence in the acquisition of ROW

sites so the process should be completed as fast as possible
without sacrificing the right to just compensation of property
owners.

By: Raul J. Palabrica

@inquirerdotnet
Philippine Daily Inquirer
03:27 AM March 21st, 2016

EXPROPRIATING private property for public use has been a

pain in the neck for the government, both national and local,
due to ambiguities in the law and delays in the judicial
process.
To address these problems, President Aquino recently signed
into law Republic Act No. 10752, or The Right-of-Way Act,
which aimed to facilitate the acquisition of right-of-way
(ROW) site or location for national government infrastructure
projects.
The law applies to all national government infrastructure
projects and its public service facilities, engineering works
and service contracts, including those undertaken by
government-owned and -controlled corporations.

Negotiated sale
Negotiated sale is the preferred mode in ROW acquisitions
(unless the owner agrees to donate the site) as it avoids
going through the tedious process of expropriation.
In negotiating the purchase of a property, the government
agency is required to offer compensation to the owner in an
amount equivalent to the sum of (a) current market value of
the land, (b) replacement cost of structures and
improvements on it, and (c) current value of planted crops
and trees.
For this purpose, the agency may engage the services of a
government financial institution with adequate experience in
property appraisal, or an independent property appraiser
accredited by the Bangko Sentral ng Pilipinas (BSP), or a
professional association of appraisers recognized by the BSP.
The property appraisal will enable the agency to make a
reasonable offer to the owner and the latter will have no
reason to complain that he is being short-changed.

The owner has 30 days from receipt of the offer to buy his
property whether or not to accept it.
In an act of generosity, the law allows the payment of the
replacement cost of structures and improvements even if
their owners do not have legally recognized rights to the
land on condition they are Filipino citizens, they do not own
any real property or other housing facility in any urban or
rural area, and are not professional squatters or members of
a squatting syndicate, as defined in the Urban Development
and Housing Act of 1992.

However, in case the owner refuses or fails to accept the

offer of negotiated sale within the 30-day period, the agency
shall institute expropriation proceedings.
Unlike before when expropriation cases can be filed only by
the Solicitor General or Government Corporate Counsel, this
time the action can be instituted by, in addition to these
offices, any government or private legal counsel that they
may deputize for that purpose.
Possession
Upon the filing of the expropriation complaint and the owner
is notified of that action, the agency shall immediately
deposit with the court in favor of the owner the amount
equivalent to the sum of:

Payment terms
If the owner agrees to the sale, 50 percent of the agreed
price of the land and 70 percent of the price of the
structures, improvements, crops and trees (in both cases
exclusive of unpaid real estate taxes) shall be paid by the
agency upon the signing of the deed of sale.
The balance of 50 percent for the land and 30 percent for the
structures and improvements shall be paid when the title to
the land has been transferred to the Republic of the
Philippines and the land is completely cleared of structures,
improvements, crops and trees.
To sweeten the pot in negotiated sales, the capital gains tax
payable from the sale of the land and its improvements
(which under existing laws is the sellers obligation), shall be
paid by the agency for the account of the seller.

100 percent of the value of the land based on the current

relevant zonal valuation of the Bureau of Internal Revenue
issued not more than three years prior to the filing of the
complaint
Replacement cost at current market value of the
improvements and structures as determined by the agency, a
government financial institution with experience in property
appraisal, and an independent property appraisal accredited
by the BSP.
Current market value of crops and trees located in the land
as determined by a government financial institution or an
independent property appraiser.
Once payment is made, the court is required to immediately
issue an order to the agency to take possession of the land
and start the implementation of the project.
If the writ is not issued within seven working days after
payment has been deposited in court, the agencys lawyer
can file a motion for the issuance of the writ, and the court is
obliged to issue it ex parte, or even without a hearing.

Anticipating that the owner may not accept the deposited

payment, the law obliges the court to determine the just
compensation to be paid to the owner within 60 days from
the date of the filing of the expropriation case.
The difference between the deposited payment and just
compensation adjudged by the court has to be paid by the
agency as soon as the courts decision becomes final.

Hopefully, the new terms of payment and judicial procedures

prescribed by the law will result in the faster implementation
of the governments infrastructure projects.
For comments, please send your e-mail to
rpalabrica@inquirer.com.ph.