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June 1, 2022

GUIDELINES FOR EXPROPRIATION PROCEEDINGS UNDER REPUBLIC ACT NO. 10752 OTHERWISE KNOWN AS “THE RIGHT-OF-WAY ACT”

After reading, Guidelines For Expropriation Proceedings Under Republic Act No. 10752 Otherwise Known As “The Right-Of-Way Act”, read also Rules on Negotiated Sale under Republic Act No. 10752 Otherwise Known As ” The Right of Way”

  • A private property may be taken by the government for public use

  • The amount to be paid by the government in taking the private property shall be deposited to the court

  • The amount deposited by the government shall be released by the court to the person who is entitled to receive the same

Expropriation is the act of a government in claiming privately owned property to be used for the benefit of the overall public.

Whenever it is necessary to acquire real property for the right-of-way site or location for any national government infrastructure through expropriation, the appropriate implementing agency, through the Office of the Solicitor General, the Office of the Government Corporate Counsel, or their deputize government or private legal counsel, shall immediately initiate the expropriation proceedings before the proper court under the following guidelines:

  1. Upon the filing of the complaint or at any time after the filing, and after due notice to the defendant (the owner of the private property which is to be expropriated), the implementing agency shall immediately deposit to the court in favor of the owner the amount equivalent to the sum of:

  1. One hundred percent (100%) of the value of the land based on the current relevant zonal valuation of the Bureau of Internal Revenue (BIR).

  2. The replacement cost at current market value of the improvements and structures.

  3. The current market value of crops and trees located within the property.

The court shall release the amount to the owner upon presentation of sufficient proofs of ownership.

What about if the owner of the property cannot be found?

The law says:

        B. In case the owner of the property cannot be found, if unknown, or deceased or in cases where the estate has not been settled, after exerting due diligence, or there are conflicting claims over the ownership of the property, the implementing agency shall deposit the said amount to the court for the benefit of the person who is found to be entitled of the amount.

Please do note that in cases falling either in letter (A) or (B) above, upon compliance of the related guideline, the court shall immediately issue to the implementing agency an order to take possession of the property and start the implementation of the project.

If, within seven (7) working days after the deposit to the court of the said amount, the court has not yet ordered the implementing agency to take possession of the affected property, the implementing agency shall immediately seek from the court for the issuance of an order called ‘writ of possession’ so that they can take possession of the said property.

What about if the real property is located in an area where there is no zonal valuation?

The law says:

        C. In provinces, cities, municipalities, and other areas where there is no land classification, the city or municipal assessor is mandated, within the period of sixty (60) days from the date of filing of the expropriation case, to come up with the required land classification and the corresponding declaration of real property and improvement for the area. In provinces, cities, municipalities, and other areas where there is no zonal valuation, or where the current zonal valuation has been in force for more than three (3) years, the BIR is mandated, within the period of sixty (60) days from the date of filing of the expropriation case, to conduct a zonal valuation of the area, based on the land classification done by the city or municipal assessor.

         D. With regards to the current market value of the land, in case the completion of a government infrastructure project is of utmost urgency and importance, and there is no land classification or no existing zonal valuation of the area concerned or the zonal valuation has been in force for more than three (3) years, the implementing agency shall use the BIR zonal value and land classification of similar lands within the adjacent vicinity as the basis for the valuation.

         E. In any of the cases mentioned in letters (A), (B), (C) and (D), upon its receipt of the ‘writ of possession’ issued by the court, the implementing agency may take possession of the property and start the implementation of the project.

What about if the owner of the property contests the implementing agency’s proffered value?

The law says:

         F. In the event that the owner of the property contests the implementing agency’s proffered value, the court shall determine the just compensation to be paid the owner within sixty (60) days from the date of filing of the expropriation case. When the decision of the court becomes final and executory, the implementing agency shall pay the owner the difference between the amount already paid and the just compensation as determined by the court.

        G. With regard to the taxes and fees relative to the transfer of title of the property to the Republic of the Philippines through expropriation proceedings, the implementing agency shall pay the documentary stamp tax, transfer tax and registration fees, while the owner shall pay the capital gains tax and any unpaid real property tax.

Take note that implementing agency refers to any department, bureau, office, commission, authority or agency of the national government, including any government-owned or controlled corporation or state college or university, authorized by law or its respective charter to undertake national government projects.

 


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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One thought on “GUIDELINES FOR EXPROPRIATION PROCEEDINGS UNDER REPUBLIC ACT NO. 10752 OTHERWISE KNOWN AS “THE RIGHT-OF-WAY ACT”

  • Hello sir. In acquisition for ROW, who is oblige to demolish the structure/building, the owner or the Implementing agency? Thank you.

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