THE TENANT

EMANCIPATION LAW
Presidential Decree No. 27
[as amended by EO No. 228]
PREFATORY STATEMENT
PHRASES AND TERMS
UNDER
P.D. NO. 27
• Private agricultural lands primarily devoted to rice
and corn.
• Tenant-farmer.
• Irrigated land.
• Non-irrigated or upland.
• Normal crop year.
• Right of retention in rice and corn lands.
APPLICABILITY OF THE
LAW
Transfer of lands to tenants
Presidential Decree. No. 27
provides that:
“The tenant farmer, whether in
land classified as landed estate or
not, shall be deemed owner of a
portion constituting a family-size
farm of five (5) hectares if not
irrigated and three (3) hectares if
irrigated”
Sec. 1 of EO No. 228 further
provides that:
“Section 1. All qualified farmer
beneficiaries are now deemed
full owners as of October 21,
1972 of the land they acquired by
virtue of Presidential Decree No.
27.”
Tenant-Beneficiaries under P.D. No. 27

All tenant-farmers of private agricultural lands primarily

devoted to rice and corn under a system of share-cropping
or lease-tenancy whether classified as landed estate or not
(24 hectares in area or more) shall be deemed owners of
portions of a landholding constituting a family-size farm of
five (5) hectares if not irrigated, and three (3) hectares if
irrigated.
Size of Land Transfer

• 5 hectares when not irrigated

• 3 hectares when irrigated

Stages of Land Transfer
The Land transfer under Presidential Decree No. 27 is
effected in two (2) stages:

(a) Issuance of a certificate of Land Transfer (CLT) to

farmer-beneficiary; and
(b) Issuance of Emancipation Patent (EP)
Certificate of Land Transfer (CLT)
A certificate of land transfer is immediately issued to the
tenant-farmer of land primarily devoted to rice and corn
after identifying the farmer’s landholding, its area, location
and specifying the terms and conditions of ownership, as
soon as the DAR has transferred the landholding to him
and recognized him as a qualified beneficiary.
SIGNIFICANCE OF
EMANCIPATION PATENT
• Absolute ownership

• Conclusive Authority
Original / Transfer Certificate of Title
Emancipation Patent
• Department of Agrarian Reform
Issue
Cancel
• Tenant-Farmers
• PD 27
Survey
Approved Survey Plan
Payment of Annual Amortizations
Indefeasibility of Emancipation Patent
• Provided in Sec 24 of CARL
• After One (1) year
• From its Registration
• Registry of Deeds
Cancellations of Emancipation Patent
• Abandonment
• Neglect / Misuse of land
• Failure to pay three (3) annual amortization
• Misuse / Diversion of financial and support
services
• Sale, Transfer / Conveyance of the Right to
Use the land
• Illegal Conversion
Tenant-beneficiary cannot sell or transfer
ownership of the land
• Under Presidential Decree No. 27:
• Ownership of the land may not be sold or transferred

• Exceptions
• Hereditary succession
• Returned to the Government
The tenant farmer will have to pay the
Land Bank
• Who may pay
• Farmer-beneficiary
• Heirs

• Must pay the total cost of the land plus interest for twenty
(20) years
• Was fifteen (15) years in PD 27

• Options:
• Pay in 20 equal annual amortizations
• Pay in full before the 20th year
• Request Land Bank to restructure the payment
FAILURE TO PAY
Failure to pay
• Failure to pay 3 annual amortizations will result in the
foreclosure of the amortization

• 30 days after final notice of payment, the Land Bank may

foreclose the amortization

• Within 2 years of the foreclosure, the tenant beneficiary or

his or her heirs may pay the unpaid amortization plus the
interest
Failure to pay
• Failure to comply will result to the land being given back
to the Land Bank

• The Land Bank must dispose of the land to another

landless farmer within 3 months

• The landless farmer must be from the same baranggay or

from the two closest baranggays
Failure to pay
• Should there be more than one buyer, a lotto will be held
in the presence of all the buyers or their representatives
and a representative of the Department of Agrarian
Reform
PAYMENT OF JUST
COMPENSATION TO THE
LANDOWNER
Payment method
• Three methods of payment:

• Direct payment to the landowner by the beneficiary

• Payment by Land Bank
• Other modes of payment

• At the discretion of the landowner

RETENTION RIGHT OF
THE LANDOWNER
“In all cases, the landowner may retain an area of not more
than seven (7) hectares if such landowner is cultivating
such area or will now cultivate it. ”
Requisites:
1. The land must be DEVOTED to RICE or CORN
CROPS.

2. There must be a SYSTEM of SHARE – CROP or

LEASE TENANCY.

3. The size of the landholding MUST NOT EXCEED

TWENTY FOUR (24) HECTARES provided that at least
seven (7) hectares thereof are covered lands and more
than seven (7) hectares of it consists of “other agricultural
lands”
Policy Statements in DAR Administrative
Order No. 04-91

o Landowners covered by PD 27 are entitled to retain seven

hectares, except those whose entire tenanted rice and
corn lands are subject of acquisition and distribution
under Operation Land Transfer (OLT).
An owner may not retain under the following cases:

A. If he as of October 21, 1972 owned more than 24 hectares

of tenanted rice or corn lands; or

B. If he as of 21 October 1972 owns less than 24 hectares of

tenanted rice but additionally owned the follows:

• Other agricultural land of more than seven hectares,

whether tenanted or not, whether cultivated or not, and
regardless of the income derived therefrom; or

• Land use for commercial, industrial, residential or other

urban purposes, from which he derives adequate income to
support himself and his family
Policy Statements in DAR Administrative
Order No. 04-91
o A landowner who has died must have manifested during
his lifetime his intention to exercise his right of retention
prior to August 23, 1990.

o The heirs must show proof of the original landowners

intention.
P.D. 27 vis-à-vis R.A. 6657

Presidential Decree No. 27

“In all cases, the landowner may retain an area of not more
than seven (7) hectares if such landowner is cultivating
such area or will now cultivate it.”
Retention Right under Comprehensive Agrarian Reform
Law (RA 6657)

SECTION 6. Retention Limits. — Except as otherwise

provided in this Act, no person may own or retain, directly
or indirectly, any public or private agricultural land, the size
of which shall vary according to factors governing a
viable family-size farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by the
Presidential Agrarian Reform Council (PARC)
created hereunder, but in no case shall retention by the
landowner exceed five (5) hectares.
The landowner is not allowed to benefit twice from the
retention right under Presidential Decree No. 27 and
retention right under Republic Act No. 6657.
JURISDICTION

ISSUES:

1. Retention rights of the landowner

2. Exclusion or exemption from agrarian reform coverage

JURISDICTION:

Secretary of the Department of Agrarian Reform