After reading, Rules on Negotiated Sale under Republic Act No. 10752 Otherwise Known As ” The Right of Way”, read also What Are the Modes of Acquiring Real Property Under Republic Act No. 10752 Otherwise Known As “The Right-Of-Way Act”?
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The implementing agency may offer to acquire, through negotiate sale, the right-of-way site or location for a national infrastructure project.
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To determine the appropriate price offer, the implementing agency may engage the services of a government financial institution or an independent property appraiser.
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The property owner is given thirty (30) days to decide whether or not to accept the offer as payment for his property.
W hat are the rules on negotiate sale under Republic Act No. 10752 or “The Right-of-Way Act?
The law says:
First, remember 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.
The implementing agency may offer to acquire, through negotiate sale, the right-of-way site or location for a national government infrastructure project, under the following rules.
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The implementing agency shall offer to the property owner concerned, as compensation price, the sum of:
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The current market value of the land,
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The replacement cost of its infrastructures and improvements; and
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The current market value of its crops and trees.
To determine the appropriate price offer, the implementing 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 owner is given thirty (30) days to decide whether or not to accept the offer as payment for his property. Upon refusal or failure of the property owner to accept such offer or fails and/or refuses to submit the documents necessary for payments, the implementing agency shall immediately initiate expropriation proceedings which shall be discussed in a separate article.
b. Letter (a)(2) above shall also apply to owners of structures and improvements who do not have legally recognized rights to the land, and who meet all of the following criteria:
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Must be a Filipino citizen;
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Must not own any real property or any other housing facility, whether in an urban or rural area; and
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Must not be a professional squatter or a member of a squatting syndicate.
c. With regard to the taxes and fees relative to the transfer of title of the property to the Republic of the Philippines through negotiated sale, the implementing agency shall pay, for the account of the seller, the capital gains tax, as well as the documentary stamp tax, transfer tax and registration fees, while the owner shall pay any unpaid real property tax.
d. If requested by the property owner, the implementing agency shall remit to the Local Government Unit (LGU) concerned the amount corresponding to any unpaid real property tax, subject to the deduction of this amount from the total negotiated price. This is on the condition that the said amount is not more than the negotiated price.
e. The property owner and the implementing agency shall execute a deed of absolute sale provided that the property owner has submitted to the implementing agency the Transfer Certificate of Title, Tax Declaration, Real Property Tax Certificate, and other documents necessary to transfer the title to the Republic of the Philippines. The implementing agency shall cause the annotation of the deed of absolute sale on the Transfer Certificate of Title.
f. Upon the execution of a deed of sale, the implementing agency shall pay the property owner:
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Fifty percent (50%) of the negotiated price of the affected land, exclusive of taxes remitted to the LGU concerned; and
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Seventy percent (70%) of the negotiated price of the affected structures, improvements, crops and trees, exclusive of unpaid taxes remitted to the LGU concerned.
g. The implementing agency shall, at the times stated below, pay the property owner the remaining fifty percent (50%) of the negotiated price of the affected land, and thirty percent (30%) of the affected structures, improvements, crops and trees, exclusive of unpaid taxes remitted to the LGU concerned provided that the land is already completely cleared of structures, improvements, crops and trees.
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At the time of the transfer of title in the name of the Republic of the Philippines, in cases where the land is wholly affected; or
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At the time of the annotation of a deed of sale on the title, in cases where the land is partially affected.
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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