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The Law On Natural
Resources
By: Prof. Benjamin A. Cabrido Jr.
USJ-R College of Law
The Law On Natural
Resources
MEANING OF NATURAL RESOURCES &
LAWS COVERED
Refer to the material
objects of economic value
and utility to man produced
by nature.
They constitute the
patrimony of the nation
Public Land Act (C.A. No. 141)
The Phil. Mining Act of 1995 (R.A. 7942)
The Petroleum Act of 1949 (R.A. 387)
The Coal Land Act and P.D. 972
Revised Forestry Code (P.D. 389 & 705)
The Water Code of the Phil (P.D. 1067)
Fisheries Code of 1998 (R.A. 8550)
IPRA (R.A. 8371)
MANILA PRINCE HOTEL v. GSIS & MANILA
HOTEL, ET. AL [GR No. 122156, Feb. 3 1997]
When the Constitution speaks of national patrimony, it refers not only to the natural resources of the Philippines, as the Constitution could have very well used the term natural resources, but also to the cultural heritage of the Filipinos
DOCTRINE OF
CONSTITUTIONAL SUPREMACY
If a law or contract violates
any norm of the
constitution that law or
contract whether
promulgated by the
legislative or by the
executive branch or
entered into by private
persons for private
purposes is null and void
and without any force and
effect.
Since the Constitution
is the fundamental,
paramount and
supreme law of the
nation, it is deemed
written in every
statute and contract.
Justice (now CJ) Puno dissenting:
2nd par. of section 10,
Article XII of the
Constitution is pro-Pilipino
but not anti-alien;
It is pro-Filipino for it gives
preference to Filipinos
It is not, however, anti-alien per se for it does not absolutely bar aliens in the grant of rights, privileges and concessions covering the national economy and patrimony.
In the absence of qualified Filipinos, the State is not prohibited from granting these rights, privileges and concessions to foreigners if the act will promote the weal of the nation.
CONCEPT OF JURA REGALIA
It is the universal feudal theory that all lands were held from
the Crown. (Carino v. Insular Govt, 41 Phil. 935)
It is the foundation of the 1st sentence of Sec. 2, Art. XII, 1987
Constitution.
As adopted in the Republican system, the medieval concept of
jura regalia has been stripped of its regalian overtones. (Lee
Hong Kok v. David, 48 SCRA 372)
CONSTITUTIONAL PROVISIONS ON JURA
REGALIA
1st Sentence, Sec. 2, Art. XII,
1987 Constitution: ALL LANDS
OF THE PUBLIC DOMAIN,
WATERS, MINERALS, COAL,
PETROLEUM AND OTHER
MINERAL OIL, ALL FORCES OF
POTENTIAL ENERGY, FISHERIES,
FORESTS OR TIMBER, WILDLIFE,
FLORA AND FAUNA, AND OTHER
NATURAL RESOURCES ARE
OWNED BY THE STATE.
2nd Sentence, Sec. 2, Art.
XII: WITH THE EXCEPTION OF
AGRICULTURAL LANDS, ALL
OTHER NATURAL RESOURCES
SHALL NOT BE ALIENATED
3rd Sentence (Ibid): THE
EXPLORATION,
DEVELOPMENT, AND
UTILIZATION OF NATURAL
RESOURCES SHALL BE UNDER
THE FULL CONTROL AND
SUPERVISION OF THE STATE.
4th Sentence (Ibid): THE STATE MAY DIRECTLY UNDERTAKE SUCH ACTIVITIES, OR IT MAY ENTER INTO CO-PRODUCTION, JOINT VENTURE, OR PRODUCTION-SHARING AGREEMENTS WITH FILIPINO CITIZENS, OR CORPORATIONS OR ASSOCIATIONS AT LEAST 60% OF WHOSE CAPITAL IS OWNE BY SUCH CITIZENS.
5th Sentence (Ibid): SUCH
AGREEMENTS MAY BE FOR
PERIOD NOT EXCEEDING
TWENTY-FIVE YEARS,
RENEWABLE FOR NOT MORE
THAN TWENTY-FIVE YEARS,
AND UNDER SUCH TERMS AND
CONDITIONS AS MAY BE
PROVIDED BY LAW.
6th Sentence (Ibid): IN CASE OF WATER RIGHTS FOR
IRRIGATION, WATER SUPPLY, FISHERIES, OR INDUSTRIAL
USES OTHER THAN THE DEVELOPMENT OF WATER POWER,
BENEFICIAL USE MAY BE THE MEASURE AND LIMIT OF THE
GRANT
2nd Par. (Ibid): THE STATE
SHALL PROTECT THE NATIONS MARINE WEALTH IN ITS
ARCHIPELAGIC WATERS,
TERRITORIAL SEA, AND
EXCLUSIVE ECONOMIC ZONE,
AND RESERVE ITS USE AND
ENJOYMENT EXCLUSIVE TO
FILIPINO CITIZENS.
3rd Par. (Ibid): THE CONGRESS
MAY, BY LAW, ALLOW SMALL-
SCALE UTILIZATION OF
NATURAL RESOURCES BY
FILIPINO CITIZENS, AS WELL AS
COOPERATIVE FISH FARMING,
WITH PRIORITY TO
SUBSISTENCE FISHERMEN AND
FISHWORKERS IN RIVERS,
LAKES, BAYS, AND LAGOONS
4th Par. (Ibid): THE PRESIDENT MAY ENTER INTO
AGREEMENTS WITH FOREIGN-OWNED CORPORATIONS
INVOLVING EITHER TECHNICAL OR FINANCIAL ASSISTANCE
FOR LARGE-SCALE EXPLORATION, DEVELOPMENT, AND
UTILIZATION OF MINERALS, PETROLEUM, AND OTHER
MINERAL OILS . . .
ACCORDING TO THE GENERAL
TERMS AND CONDITIONS
PROVIDED BY LAW, BASED ON
REAL CONTRIBUTIONS TO THE
ECONOMIC GROWTH AND
GENERAL WELFARE OF THE
COUNTRY. IN SUCH
AGREEMENTS, THE STATE
SHALL PROMOTE THE
DEVELOPMENT, AND USE OF
LOCAL SCIENTIFIC AND
TECHNICAL RESOURCES
Last par. (Ibid): THE
PRESIDENT SHALL NOTIFY THE
CONGRESS OF EVERY
CONTRACT ENTERED INTO IN
ACCORDANCE WITH THIS
PROVISION, WITHIN THRITY
DAYS FROM ITS EXECUTION.
JURE IMPERII vis--vis JURE GESTIONIS
See U.S. v. Ruiz, 136 SCRA 487
In public law, Imperium is the government authority possessed by the State which is expressed
in the concept of sovereignty; Dominium is the capacity of the State to own or acquire property.
PRESUMPTION OF STATE OWNERSHIP
OVER PUBLIC LANDS
Oh Cho v. Dir. Of Lands, 75 Phil 890: All lands that
were not acquired from the government either by
purchase or grant, belong to the public domain.
Exception: possession since time immemorial.
NATURE OF POSSESSION BY THE NATIVES (Cruz v.
Secretary, GR 135385, Dec. 6, 2000)
Ancestral domain and
ancestral lands are not part
of lands of the public
domain.
The right of natives does
not include natural
resources.
What is given is priority
rights, not exclusive right.
State not precluded from
entering into agreements
with private entities.
All embracing concept
which refers to lands,
inland waters, coastal
areas, and natural
resources therein.
Includes:
Ancestral lands,
Forests land,
Pasture land,
Residential lands
Agricultural lands, and
Other lands individually owned whether alienable or not;
Hunting grounds;
Burial Grounds;
Worship Areas;
Bodies of water; and
Other natural resources
Also includes land which may no longer be exclusively occupied by indigenous cultural communities but to which they had traditionally had access for their subsistence and traditional activities
ANCESTRAL LAND:
Narrower in concept;
Refers to those land held
under the same conditions of
ancestral domain
BUT LIMITED TO LANDS THAT
ARE NOT MERELY OCCUPIED
AND POSSESSED BUT ARE ALSO
UTILIZED BY CULTURAL
COMMUNITIES UNDER THE
CLAIM OF INDIVIDUAL OR
TRADITIONAL GROUP
OWNERSHIP.
Includes [but not limited to]:
Residential lots, Rice terraces
or paddies, private forests,
farms and tree lots.
CONVERSION TO ALP: EXECUTIVE
PREROGATIVE
In Republic v. Reg. of Deeds of Q.C., 244 SCRA 537: The
classification of public lands is, thus, an exclusive prerogative of
the Executive Department through the Office of the President.
Courts have no authority to convert lands of public domain into
alienable and disposable lands.
TITLE OVER LAND PART
OF FOREST IS VOID
In Sunbeam v. CA, 181 SCRA 443: Before any land may be converted into alienable or disposable land for agricultural or other purposes, there must be positive act from the govt.
The mere fact that a title was issued by the Dir. Of Lands does not confer owner-ship where it is part of the public forest.
See also Ituralde v. Falcasantos, G.R. No. 128017, Jan. 20, 1999.
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 1
General Rule: All natural
resources shall not be
alienated.
Exception: Only agricultural
lands of the public domain
may be alienated.
Montano v. Insular Govt, 12
Phil. 572
Government lands and
public lands are not
synonymous terms.
GL is more extensive and
embraces not only PL but
also other lands of the govt
already reserved or
devoted to public use.
Friar lands not included as
public lands.
Nature of Friar Lands
(Strong v. Repide, 213 U.S. 419 [1909]) Friar Lands are those lands of certain haciendas which were
acquired by the U.S. government from religious orders/corporations or organizations acquired on July 5, 1903 at a price of $ 6,043,219.47 in gold.
Philippine Sugar Estates Development Company, Ltd. owned the title over these lands.
Dominican lands form more than of Friar Lands.
HOW FRIAR LANDS MAY BE DISPOSED OF
In Alonso v. Cebu Country Club, G.R. 130876, Jan. 31, 2002
Under Act No. 1120, which governs the administration and
disposition of friar lands, the purchase by an actual and bona fide
settler or occupant of any portion of friar land shall be "agreed
upon between the purchaser and the Director of Lands, subject to
the approval of the Secretary of Agriculture and Natural Resources
.
Approval by the Secretary of Agriculture and Commerce of the sale of friar lands is indispensable for its validity, hence, the absence of
such approval made the sale null and void ab-initio
Necessarily, there can be no valid titles issued on the basis of such
sale or assignment.
HOW LANDS OF THE PUBLIC DOMAIN
CLASSIFIED?
Agricultural
Forest or Timber
Mineral
National Parks
No mixed classification.
In Republic v. CA, 160 SCRA
228 (1988)
The rights over the land are
indivisible
No such thing as half
agricultural, half mineral
Once mining claim is
perfected, forest land
ceased to be so; it now
becomes completely mineral
land
SURFACE OWNER NO RIGHT OVER THE
MINERALS UNDERNEATH
No. In the exercise of the States sovereign prerogative, use of the surface land may be
discontinued once minerals are discovered
underneath.
For his loss, the owner is entitled to compensation
under the Mining Law or in appropriate
expropriation proceedings.
HOW ARE MANGROVE SWAMPS (MANGLARES)
CLASSIFIED?
Forest Lands
In Director of Forestry v.
Villareal, G.R. 32266, Feb.
27, 1989: The classification by the
Administrative Code of the
Phil. manglares as forest
lands has not been
changed
RULES ON THE
DISPOSITION OF ALP
Private corp./assn. cannot
acquire ALP
Private corp. may lease
maximum 1,000 hectares.
Qualified individuals can
acquire 12 has; lease up to
500 hectares
Term: 25 years; renewable
for another 25 years.
In Lausan Ayog, et al. v.
Cusi, G.R. 46729, Nov. 19,
1982:
To equitably diffuse land
ownership or to encourage
"owner-cultivatorship and the economic family- size farm"
Huge landholdings by
corporations or private
persons had sown social
unrest.
Exception: Corporations Validly Owning Public Lands
Maximum: 1,024 hectares
(Republic v. Quasha, G.R.
No. L-30299 Aug. 17, 1972)
Note: Americans may own
ALP (same limit) under
Parity Agreement (Tydings-
McDuffie) appended in the
1935 Constitution & revised
by the Laurel-Langley
Agreement.
Under the Parity Amendment, US citizens & corporations may acquire
lands of the public domain.
But they cannot acquire
PRIVATE agricultural lands.
Their right is until July 3,
1974.
(Republic v. Quasha, G.R. No. L-
30299 Aug. 17, 1972)
LAUSAN AYOG, ET AL. v. CUSI,
G.R. 46729, Nov. 19, 1982
Vested right has to be
respected.
lt could not be abrogated
by the new Constitution.
Section 2, Article XIII of the
1935 Constitution allows
private corporations to
purchase public agricultural
lands not exceeding 1024
hectares.
RIGHTS OF NATURAL-BORN
FILIPINO WHO HAVE LOST
THEIR CITIZENSHIP
Under R.A. 8179, former
natural-born Filipino
citizens may acquire the
following:
500 sq. m. Urban land
3,000 sq. m. Rural land
For business or other
purposes.
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 2
Exploration, Development
and Utilization of Natural
Resources must be under
Full Control and
Supervision of the State
under the constitutionally
allowed modes
ALLOWED MODES IN EDU
OF NATURAL RESOURCES
Direct Undertaking
Co-Production Agreement
Joint-Venture Agreement
Production-Sharing
Agreement
Financial or Technical
Assistance Agreement
MEANING OF FULL CONTROL (La Bugal-Blaan Tribal Assn. vs. Ramos, G.R. 127882, Dec. 1, 2004)
Full control is not anathematic to day-to-day management by the contractor, provided that the State retains the power to direct overall strategy; and to set aside, reverse or modify plans and actions of the contractor. The idea of full control is similar to that which is exercised by the board of directors of a private corporation: the performance of managerial, operational, financial, marketing and other functions may be delegated to subordinate officers or given to contractual entities, but the board retains full residual control of the business.
full control and supervision cannot be taken literally to
mean that the State controls
and supervises everything
down to the minutest details
and makes all required
actions, as this would render
impossible the legitimate
exercise by the contractor of
a reasonable degree of
management prerogative and
authority, indispensable to
the proper functioning of the
mining enterprise.
Control, as utilized in Section
2 of Article XII, must be taken
to mean a degree of control
sufficient to enable the State
to direct, restrain, regulate
and govern the affairs of the
extractive enterprises.
Control by the State may be on a macro level, through the establishment of policies, guidelines, regulations, industry standards and similar measures that would enable government to regulate the conduct of affairs in various enterprises, and restrain activities deemed not desirable or beneficial, with the end in view of ensuring that these enterprises contribute to the economic development and general welfare of the country, conserve the environment, and uplift the well-being of the local affected communities
Such a degree of control would be
compatible with permitting the foreign
contractor sufficient and reasonable
management authority over the
enterprise it has invested in, to ensure
efficient and profitable operation.
In fine, the FTAA provisions do not
reduce or abdicate State control.
MEANING OF CO-PRODUCTION AGREEMENT
An agreement between the Government and the contractor wherein the Government shall provide inputs to the mining operations other than the mineral resource. (Sec. 26[b], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF JOINT VENTURE AGREEMENT
An agreement where a joint-venture company is organized by the Government and the contractor with both parties having equity shares. Aside from earnings in equity, the Government shall be entitled to a share in the gross output. (Sec. 26 [c], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF PRODUCTION SHARING AGREEMENT
An agreement where the Government grants to the contractor the exclusive right to conduct mining operations within a contract area and shares in the gross output. The contractor shall provide the financing, technology, management and personnel necessary for the implementation of this agreement. (Sec. 26 [c], R.A. 7942, The Philippine Mining Act of 1995)
MEANING OF FTAA
Sec. 3[r], R.A. 7942:
Financial or technical assistance agreement means a contract involving financial or technical assistance for large-scale exploration, development, and utilization of mineral resources.
FTAA CONSTRUED IN LA BUGAL
(G.R. No. 127882 DEC. 1, 04) The agreements involving
either technical or financial assistance referred to in paragraph 4 are in fact service contracts, but such new service contracts are between foreign corporations acting as contractors on the one hand, and on the other hand government as principal or owner (of the works), whereby the foreign contractor provides the capital, technology and technical know-how, and managerial expertise in the creation and operation of the large-scale mining/extractive enterprise, and government through its agencies (DENR, MGB) actively exercises full control and supervision over the entire enterprise.
Such service contracts may be entered into only with respect to minerals, petroleum and other mineral oils. The grant of such service contracts is subject to several safeguards, among them: (1) that the service contract be crafted in accordance with a general law setting standard or uniform terms, conditions and requirements; (2) the President be the signatory for the government; and (3) the President report the executed agreement to Congress within thirty days.
ARE FTAAs SOLELY FOR
FOREIGN
CORPORATIONS?
No. There is no basis to believe
that the framers of the
Constitution, a majority of
whom were obviously
concerned with furthering the
development and utilization of
the countrys natural resources, could have wanted to restrict
Filipino participation in that
area. This point is clear,
especially in the light of the
overarching constitutional
principle of giving preference
and priority to Filipinos and
Filipino corporations in the
development of our natural
resources.
WHO ARE QUALIFIED
TO UNDERTAKE EDU?
Filipino citizens
Private Corp./Assn. at
leash 60% of whose capital
is owned by Filipino
citizens
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 3
All agreements in
respect to EDU of
Natural Resources
should not exceed 25
years
Renewable for another
25 years
WATER RIGHTS NOT COVERED BY THE
25-YR LIMIT
Last sentence, 1st par., Sec. 2, Art. XII
IN CASES OF WATER RIGHTS FOR IRRIGATION, WATER SUPPLY, FISHERIES, OR INDUSTRIAL USES OTHER THAN DEVELOPMENT OF WATER POWER
MEASURE AND LIMIT OF THE GRANT: BENEFICIAL USE
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 4
The use and enjoyment
of the MARINE WEALTH
of the archipelagic
waters, territorial sea
and EEZ reserved for
FILIPINO CITIZENS
ONLY.
MEANING OF ARCHIPELAGIC WATERS
The waters around,
between and
connecting the islands
of the archipelago
MEANING OF TERRITORIAL SEA
The belt of the sea
located between the coast
and internal waters of the
coastal state on the one
hand, and the high seas on
the other extending up to
12 NM from the low water
mark, or in case of
archipelagic states, from
the baselines.
MEANING OF CONTIGUOUS ZONE
The area of the sea extending up to 12 NM from the
territorial sea. Technically, it is not part of the
territory of the state; the coastal or archipelagic
state may exercise jurisdiction over the area to
prevent infringement of its customs, fiscal and
immigration or sanitary laws.
MEANING OF EXCLUSIVE ECONOMIC
ZONE (EEZ)
Area of the sea extending up to 200 NM from the
low-water mark or the baselines, as the case may
be. Technically, not part of the territory.
Coastal/Archipelagic state may exercise SOVEREIGN
RIGHTS over the economic resources of the sea,
the seabed and subsoil.
Other states have freedom of navigation &
overflight, to lay submarine cables and pipelines, &
other lawful uses.
THE EEZ OF THE PHILIPPINES
CONSTITUTIONAL LIMITS ON JURA
REGALIA NO. 5
Utilization of natural resources in rivers, lakes,
bays and lagoons.
Allowed only on a small scale to Filipino citizens or
cooperative.
Priority given to subsistence fishermen and
fisherfolk.
MARGINAL FISHERMAN VIS--VIS SUBSISTENCE
FISHERMAN
Marginal fisherman is an individual engaged in fishing whose margin of return or reward in his harvest of fish as measured by existing price levels is barely sufficient to yield a profit or cover the cost of gathering the fish.
Subsistence fisherman is one whose catch yields but the irreducible minimum for his livelihood.
TANO V. SOCRATES,
G.R. NO. 110249, AUG. 21, 1997
The so-called "preferential right" of subsistence or marginal fishermen to the use of marine resources is not at all absolute.
Under the general welfare clause of the LGC, local government units have the power, inter alia, to enact ordinances to enhance the right of the people to a balanced ecology.
SOME IMPORTANT LEGAL DEFINITIONS OF A
STATES FLUVIAL DOMINION
Bay a well-marked indentation whose penetration is in such proportion to the width of its mouth as to
contain land-locked waters and constitute more
than a mere curvature of the coast. An indentation
shall not, however, be regarded as a bay unless its
area is as large as, or larger than, that of the semi-
circle whose diameter is a line drawn across the
mouth of that indentation. (Sec. 2, Art. 10,
UNCLOS)
Lagoon A small lake, the hollow bed of which is bounded by elevations of land. (The Govt of the Phil. Islands vs. Colegio de San Jose, et al., G.R. L-30829, Aug. 28, 1929)
Lake - a body of water formed in depressions of the earth. Ordinarily fresh water, coming from rivers, brooks, or springs, and connected with the sea by them. (Ibid)
River - is a natural waterway that transits water
through a landscape from higher to lower
elevations. It is an integral component of the water
cycle. A river may have its source in a spring, lake,
from damp, boggy landscapes where the soil is
waterlogged, from glacial melt, or from surface
runoff of precipitation.
THE PUBLIC LAND ACT (C.A. 141)
Approved: Nov. 7, 1936
Coverage: Lands of the public domain
Excludes: Timber and mineral lands; Friar Lands
Executive Officer charged to carry out the Act: DENR Secretary
Director of Lands has direct executive control of the survey, classification, lease, sale or any other land of the public domain
Decisions of BL Director on questions of fact appealable to Secretary
Doctrine of Indefeasibility of Torrens title
Sec. 32, PD 1529: The decree of registration and the certificate of title issued shall become incontrovertible after the lapse of one year from the date of entry
However, the State is not precluded from bringing an action for reversion of Public Land even after the lapse of 1 year if procured through fraud and misrepresentation. (Republic vs. CA, G.R. No. 104296, Mar. 29, 1996)
Actions for Reversion Do Not Prescribe [Manese v. Sps. Velasco, G.R. 164024, Jan. 29, 2009]
In all actions for the reversion to the Government of lands of the public domain or improvements thereon, the Republic of the Philippines is the real party in interest.
The action shall be instituted by the Solicitor General or the officer acting in his stead, in behalf of the Republic of the Philippines.
Such action does not prescribe. Prescription and laches will not bar actions filed by the State to recover its property acquired through fraud by private individuals.
PRE-REQUISITE FOR DISPOSITION OF ALP
Before any public land may be alienated or disposed of, it is indispensable that there be a formal declaration by the President upon the recommendation of the DENR Secretary to the effect that such lands are open to disposition or concession, and whenever practicable the lands should have been previously surveyed. (Sec. 7, CA 141)
Excluded from disposition or concession: Those reserved for public or quasi-public uses; those that have become private property or subject to private right. (Sec. 9, Ibid)
MEANING OF ALIENATION OR
DISPOSTION
Alienation, disposition, or concession - means any of the methods authorized by the C.A. 141 for
the acquisition, lease, use or benefit of the lands
of the public domain other than timber or mineral
lands. (Sec. 10, Ibid)
MODES OF DISPOSITION OF ALP
Homestead
By Sale
By Lease; and
By confirmation of imperfect or incomplete titles through:
a) Judicial legalization
b) Administrative legalization or free patent
MATERIAL ALLEGATIONS IN APPLICATIONS FOR
GRANT OF PUBLIC LAND
Personal circumstances of the applicant and that
he/it has all the legal qualifications and none of
the disqualifications.
Purpose: use of the land according to the object
specified in the application and for other purpose,
and that the land is suitable for the purpose
contemplated.
For the exclusive use of the applicant.
Description and location of the land.
Occupancy, cultivation, improvements on the
land, if any.
Allegation that the land is not timber or mineral
land and does not contain guano or deposits of
salt or coal.
Easement of 40 meters in width from bank of any
river or stream for planting of trees of known
economic value; applicant prohibited to make any
clearing on or utilize the easement area for
ordinary farming
REQUIREMENT ON PERSONAL TILLAGE
(P.D. 152)
Applicant or his transferee must enter and work
upon, improve and cultivate the land by himself
within the periods prescribed for the various mode
of concession under the Public Land Act.
Share tenancy prohibited; violation will result to
cancellation of the grant and forfeiture of the
improvements on the land in favor of the
government.
REMEDIES FROM ADVERSE DECISION OF
BL DIRECTOR
Motion for reconsideration based on any grounds for new trial under Rule ___; or
Appeal to the DENR Secretary
If affirmed by DENR Secretary, file a motion for reconsideration;
If MR is denied, file special civil action on certiorari under Rule 65.
Notes: (a) Decision of the BL cannot be collaterally attacked; (b)
MODE NO. 1: HOMESTEAD
Concept: It is the home, the house and the adjoining land where the head of the family dwells, the home farm; the fixed residence of the head of a family, with the land and buildings surrounding the main house.
It is a legal fiction of law, an artificial estate in land, devised to protect the possession and enjoyment of the owner against the claims of his creditors, by withdrawing the property from execution and forced sale, so long as the land is occupied as a home
Statutory Privileges Accorded to Homestead Land
1. Exempt from execution (see Sec.
13[a],Rule 39, Rules of Court and );
2. Cannot be held liable for satisfaction of
an obligation within (5) years from
issuance of patent (Saltiga v. CA, G.R. No.
109307, Nov. 25, 1999);
3. If validly mortgaged, right of redemption granted within (5) years from the date of sale, not from date of registration at the RoD. The 5-year period to be reckoned from the expiration of the one-year period under Act. 3135;
4. If validly mortgaged to a Rural bank, the 5-year period to commence to run after the expiration of the two-year period of redemption allowed under R.A. 720 or the Rural Banks Act
THE PREVAILING RULE: HOMESTEAD LANDS NOT
EXEMPT FROM COVERAGE OF AGRARIAN REFORM
LAW In Paris v. Alfeche, [G.R. No. 139083, Aug. 30,
2001):
Homesteads are not exempt from the operation of the Land Reform Law.
The right to retain (7) hectares of land is subject to
the condition that the landowner is actually
cultivating that area or will cultivate it upon the
effectivity of the said law.
Rural Bank of Davao City vs. Court of Appeals,
217 SCRA 554, Jan. 27, 1993 If the land is mortgaged to a rural bank under R.A. No. 720, as
amended, the mortgagor may redeem the property within two (2) years from the date of foreclosure or from the registration of the sheriff's certificate of sale at such foreclosure if the property is not covered or is covered, respectively, by a Torrens title.
If the mortgagor fails to exercise such right, he or his heirs may still repurchase the property within five (5) years from the expiration of the two (2) year redemption period pursuant to Sec. 119 of the Public Land Act (C.A. No. 141.
If the land is mortgaged to parties other than rural banks, the mortgagor may redeem the property within one (1) year from the registration of the certificate of sale pursuant to Act No. 3135;
If he fails to do so, he or his heirs may repurchase the property within five (5) years from the expiration of the redemption period also pursuant to Sec. 119 of the Public Land Act.
QUALIFIED TO OBTAIN HOMESTEAD
Filipino
18 yrs old or head of the family
Must not own more than (12) has. of land
nor has had the benefit of any gratuitous
allotment of more than (12) has. of land
If applicant is a married woman:
She must be living separately from her husband and not dependent on him for support; or
Her husband is insane or physically incapacitated to work;
When her husband is in prison, serving a term of such duration as would prevent him from complying with the requirements of the law regarding residence of land.
Mandatory Conditions/Requirements in
Homestead Application
Within 6 months after approval, homesteader must start to improve and cultivate the land;
Within a period of not less than 1 year or more than 5 years from date of approval of application homesteader must have cultivated at least 1/5 of the land;
Continuous residency in the same municipality where homestead is located or in an adjacent municipality for at least 1 year; and
Non- abandonment (voluntary) for more than 6 months at any one time during period of required residency and occupation.
When vested right in homestead fixed
In Balboa vs. Farrales,G.R. No. L-27059, Feb. 14, 1928:
After Buenaventura Balboa had submitted his final proof and after the same had been approved by the Government, and while Act No. 926 was still in force, he became the owner of the land and "entitled to a patent."
At least on that date his right to the land, as owner, ripened into a vested right. It was no longer expectant as depending on the continuance of existing circumstances, or contingent as depending on some events or the performance of some conditions.
WHEN HOMESTEAD IS DEEMED CONJUGAL PROPERTY (De Ocampo v. Delizo, G.R. No. L-32820, Jan. 20,
1976)
The fact that a parcel of land was acquired as homestead during the period of the first marriage does not necessarily mean that it should be considered as property of the first marriage. The decisive factor in determining whether a parcel of land acquired by way of homestead is conjugal property of the first or second marriage, is not necessarily the issuance of the homestead patent but the time of the fulfillment of the requirements of the public land law for the acquisition of such right.
CONDITIONS BEFORE APPLICANT MAY VALIDLY
TRANSFER HIS RIGHTS BEFORE ISSUANCE OF
PATENT He has already complied with all the requirements;
His non-continuance is of no fault of his own;
Made to a bona fide purchaser legally qualified to
apply for homestead;
Not for speculative purpose; and
Approved by the Director, Bureau of Lands
RESTRICTIONS ON SUBSEQUENT ALIENATION
AND ENCUMBRANCE (Sec. 118, C.A. 141 as
amended by C.A. 456) Homestead cannot encumbered or alienated during the period
from date of approval up to the date of issuance of patent;
Encumbrance or alienation within 5 years from date of issuance of patent or grant is prohibited;
Homestead cannot be liable to the satisfaction of any debt contracted prior to the expiration of said period;
Exception: Improvements or crops on the homestead land
Alienation, transfer, or conveyance after 5 years and before 25 years requires approval of the DENR Secretary (deemed as directory and formality)
Nature of Proceedings in Homestead
Not in rem, hence a homestead patent
issued is not binding upon the whole world;
However, when a homestead patent is
registered under the Torrens System, its
title becomes indefeasible.
RULES ON THE EXERCISE OF THE RIGHT OF
REDEMPTION/REPURCHASE OF HOMESTEAD
LAND 5 years if mortgaged or sold to a private person or the subject
of sale under pacto de retro;
6 years If mortgaged covered under Act 3135; 7 years If mortgaged to a Rural Bank; None If sold to immediate member of a family. None If land is no longer devoted to agriculture, patentee is
already 71 years old not anymore residing in the property and his motivation for the repurchase was purely for profit. (Santana v. Marinas, G.R. No. L-35537, Dec. 27, 1979)
Note: Period must be reckoned from the date of conveyance or sale.
R.A.10023 [Free Patents To
Residential Lands] March 9, 2010
Coverage :
1. All lands that are zoned as residential areas,
including townsites as defined under the Public
Land Act. Exception: Forest Areas
2. Zoned residential areas located inside a delisted
military reservation or abandoned military camp, and
those of local government units (LGUs) or townsites
which preceded Republic Act No. 7586 or the
National Integrated Protected Areas System
(NIPAS) law.
Qualified Applicants:
Any Filipino citizen who
is an actual occupant of
a residential land.
Maximum Area:
Highly urbanized cities
200 square meters
Other cities 500 square meters
First class and second
class municipalities 750 square meters
All other municipalities
1,000 square meters.
Provided that the land
applied for is not
needed for public
service and/or public
use.
How to Apply
Application should be supported by:
A map based on an actual survey conducted by a licensed geodetic engineer and approved by the Department of Environment and Natural Resources (DENR)
A technical description of the land.
Affidavit of two (2) disinterested persons who are residing in the barangay of the city or municipality where the land is located;
Attesting to the truth of the facts contained in the application to the effect that the applicant thereof has, either by himself or through his predecessor-in-interest, actually resided on and continuously possessed and occupied, under a bona fide claim of acquisition of ownership, the land applied for at least ten (10) years and has complied with the requirements prescribed in Section 1 hereof.
Special Patents [Sec.
4, RA 10023]
Any public land actually occupied and used for public schools, municipal halls, public plazas or parks and other government institutions for public use or purpose can be issued with Special Patents.
Conditions:
Issuance is not contrary to law; and
Subject to private rights
Lands issued Special Patents cannot be disposed of unless sanctioned by Congress if owned by the national agency or sanctioned by the sanggunian concerned through an approved ordinance if owned by the LGU.
Miscellaneous Sales
Patent [R.A. 730]
Permits sale without public auction of alienable and disposable lands of the public domain for residential purpose.
The application to purchase the land is called the Miscellaneous Sales Application and the corresponding patent is called the Miscellaneous Sales Patent.
Qualified to apply:
1. Filipino citizen of lawful age, married (if single, applicant must be the head or bread winner of the family)
2. Not the owner of a home lot in the municipality/city where the land applied for is located
3. He must have occupied in good faith the land applied for and constructed a house thereon where he/she and family is actually residing.
Requirements under
R.A. 730
Application Filing fee of P50.00;
Approved plan and technical description of the land applied for;
Affidavit of the applicant stating that:
He is not the owner of any other home lot in the municipality/city where he resides.
He is requesting that the land be sold to him under the provision of R. A. No. 730.
If the applicant is single, he must submit an affidavit stating that he is the head or bread winner of the family;
The land is not needed for public use.
The applicant can only be granted a maximum area of 1,000 square meters.
Presidential Decree No. 2004 dated December 30, 1985 amended Section 2 of Republic Act 730 thus, lands acquired under this Act before and after the issuance of patent thereon are no longer subject to any restriction.
MODE NO. 2 : SALE OF PUBLIC
AGRICULTURAL LANDS
Qualified to purchase:
Filipino citizens, legal age or head of the family;
Maximum area: 12 hectares
Note: Corporations cannot acquire by purchase Public Agricultural Lands by express prohibition under Sec. 3, Art. XII, 1987 Constitution
PREFERENCE GIVEN TO ACTUAL
OCCUPANTS (Sec. 25, CA 141)
Conditions:
ALP must not be located: (a) within 10 kms from
the boundaries of the city proper in chartered
cities; or (b) within 5 kms from the municipal hall
or town plaza of any municipality.
There must actual occupation on the lands.
Total landholdings must not exceed 5 hectares
EXCESS LANDHOLDING WHEN ALLOWED
In case of foreclosure sale;
However, the excess must be disposed of
within 5 years;
Failure to dispose of within the period surtax of 50% will be charged over the
ordinary real property tax.
WHAT IS DEEMED EXCESS LANDHOLDING?
For qualified individuals: the area in excess of 12
hectares.
For corporations: Any land acquired by virtue of
foreclosure is deemed in excess of landholding
hence must be disposed of within 5 years.
PROCEDURE IN THE SALE OF ALP
Filing of application in prescribed form.
Appraisal conducted by the BL Director and approved by the DENR Secretary.
Publication of the notice of sale: Once a week for 3 consecutive weeks in the O.G., and in 2 newspapers, one published in Manila and the other in the municipality or province where the land is situated.
Posting in the Bulletin Board of the LMB, Q.C. and in 3 conspicuous places in the provincial capitol and the municipal hall where the land is situated
Submission of Bids in sealed envelope, addressed
to the BL Director together with the 10% amount
of the bid in cash, certified check, treasury
warrant, or postal money order.
Opening of bids and awarding to the highest
bidder.
PREFERENCE GRANTED TO APPLICANT
IN AWARDING OF ALP
In case of two or more highest equal bids and one
belongs to applicant, latter wins;
If the highest bid is not that of applicant, Oral
Bidding is called and the highest oral bidder is
awarded;
In all instances, applicant is given the option to
equal the highest bidder.
Payment of price may be in full or in 10 equal
annual installments reckoned from the date of
the award.
Overdue installment subject to 4% interest P.A.
Purchasers right over the ALP is still inchoate until such time the patent has already been
issued.
CONDITIONS IN SALE ARE OBLIGATORY (Jimenez v. Macaraig, G.R. 94542, Mar. 1,
1993) Facts: Jimenez was awarded by way of sale ALP for town site in 1955. It was subject to condition that he will commence construction of improvements within 6 months and complete all within 18 months from date of award. In 1972, Guirnalda occupied the land, cleared it and introduced levelling and riprapping. She also built a shack which was used by her and her family. In 1984, the daughter of Jimenez asked her to vacate the land. Guirnalda filed a protest with the BL as sought for cancellation of the award. In 1986, BL cancelled the award. On MR, it was reversed but set aside by the DENR Secretary.
Ruling:
Jimenez was not able to prove that the improvements were commenced, hence the rescission of the award was proper;
But, the rescission did not amount to recognition of other occupants claim on the subject land. Whatever claim that Guirnalda has over the land must still be presented before the proper forum and must under proper procedure as set by law.
TWO INSTANCES WHEN
ORAL BIDDING ALLOWED
When two or more of such sealed bids turn out to be equal and the highest, and that of the applicant is not one of them. In such case, the Director of Lands will call for an oral bidding, without need for applicant to participate in it since he has the option to put up a bid to equal that of the highest bidder; and
Where the ALP to be sold has been declared to be vacant and no applicant is recognized to have preferential rights over it.
PRE-REQUISITES BEFORE
SALES PATENT IS ISSUED
He must have occupied the land applied for;
He must have cultivated at least 1/5 of the land within 5 years after the date of award;
Where the application is for pasture, he must have grazed on the land with his own cattle numbering at the rate of one head for every 2 hectares;
Failure to comply or any voluntary abandonment for ore than one year at any given time, the land may be reverted and all prior payments forfeited.
CONVEYANCE OF LAND PRIOR TO
ISSUANCE OF SALES PATENT VALID
Sec. 29 allows applicant to convey or encumber his rights after cultivation has started;
CONDITIONS:
It does not affect the interest of the government;
The transferor is not delinquent in paying the installment due; and
There must be prior approval of the DENR Secretary
EFFECT OF SALE WITHOUT DENR APPROVAL
(Javier v. C.A., et al., 231 SCRA 498, Mar. 28,
1994) The sale pending issuance of patent without
approval of the BL violates Sec. 29, C.A. 141.
The effect is annulment of the sales application as
if none had been filed.
JOINT VENTURE ALLOWED IN SALE OF PUBLIC
LAND [Barreo v. Rivera, 61 O.G. 14, April 5,
1965 CA] Where one person contributes his capital, consisting of his duly
approved sales application and recognized right of possession over a parcel of public land which he has begun cultivating and over which he has already spent time and effort, and another contributes his labor and money to finalize the cultivation of the same land, with the understanding that both shall divide the land in the proportion agreed upon by them, a joint venture or partnership is formed under Art. 1767 of the Civil Code, and each partner is bound as a trustee to be ever loyal to his partner under Art. 1807 of the same Code.
BUT JOINT VENTURE NOT SANCTIONED IN
HOMESTEAD [Addun v. De Yro, 62 O.G. 37, Sept. 12, 1966 CA] In the case of homestead, however, the treatment
of a similar situation apparently is different.
A homestead applicant is required by law to
occupy and cultivate the land for his own and his
familys benefit, and not for the benefit of someone else.
If the homesteader occupies and cultivates the land on behalf of another person and obtains title on the understanding that a portion would be transferred to the latter, it is INVALID, hence bars issuance of the patent;
Even if patent is already issued and title becomes indefeasible, the same agreement is still null and void since Sec. 118 prohibits the encumbrance or alienation of a homestead except in favor of the government or any of its branches from the date of the approval of the application and for a term of 5 years from the date of issuance of patent.
RESTRICTIONS IN
SALE OF PUBLIC LAND
1) Survey plan must be made before issuance of sales patent;
2) Mineral deposits not included in conveyance;
3) Land subject to legal servitudes;
4) Subject to ROW not exceeding 60 m in width for public highways, railroad, irrigation canals, aqueduct, etc.;
5) After grant of title, subsequent transfer within 10 years from grant or cultivation is not valid without consent from the state.
WHEN LAND BECOMES OF PRIVATE OWNERSHIP [Visayan
Realty Inc. v. Meer, 96 Phil 515]
It is only upon issuance of the sales patent that the Government is divested with its title.
Approval of the application merely authorizes applicant to take possession of the land in order for him to comply with the requirements set by law.
Meanwhile, the Government still remains the owner; the application can still be cancelled and the land awarded to another if it is shown the requirements are not complied with.
WHEN LAND UNDER SALES PATENT IS DEEMED
EXCLUSIVE PROPERTY [Fiel, et al. v. Wagas, et al., 48 O.G. 195] Where the balance of the purchase price of
the land applied for sales patent was paid by applicant after the dissolution of the marriage due to death of his spouse, the land is considered exclusive property of the applicant;
This is true even if the sales patent application was filed and approved during the subsistence of the marriage.
ANNULMENT OF PATENT AND TITLE IS
JUDICIAL IN NATURE
True that the Director of Lands can investigate violations even while the patent and the corresponding title have already been issued;
But he cannot render a decision annulling the sales patent and title for the alleged violations since annulment of a title under Sec. 101 of CA 141 is a judicial process.
MODE NO. 3: LEASE OF ALP
Qualified to lease ALP:
Filipino citizen of legal age (up to 500 hectares);
and
Private corporation or association registered
under the laws of the Philippines whose capital
stock of at least 60% is owned by Filipinos (up to
1,000 hectares).
LIMITATIONS IN THE LEASE OF ALP
Any officer, employee, stockholder, etc. of a corporation/association already holding ALP may not apply for lease of such land. In case it may be allowed, it must be reasonably necessary to carry on his business, in case of an individual or the business for which the corporation is created under its Articles of Incorporation.
PROCEDURE IN THE LEASE OF ALP
(Substantially the same as in sale)
Filing of application in prescribed form.
Appraisal conducted by the BL Director and approved by the DENR Secretary.
Publication of the notice of sale: Once a week for 3 consecutive weeks in the O.G., and in 2 newspapers, one published in Manila and the other in the municipality or province where the land is situated.
Posting in the Bulletin Board of the LMB, Q.C. and in 3 conspicuous places in the provincial capitol and the municipal hall where the land is situated
Submission of Bids in sealed envelope, addressed to the BL Director together with the 10% amount of the bid in cash, certified check, treasury warrant, or postal money order.
Opening of bids and awarding to the highest bidder.
In addition:
No bid will be considered if the proposed rent is less than 3% of the appraised value of the land or the bidder did not deposit rental equivalent to at least the first 3 months of the lease.
If the land applied for is for grazing, annual rental must not be less than 2%.
OTHER CONDITIONS IN LEASE OF ALP
Rental: to be paid in advance starting from the date of approval of the lease; subject to automatic increase if the rent falls below 3% in case of re-appraisal.
Period: 25 years, renewable for another 25 years. Extension is not a matter of right. Lessee must justify the extension by showing he has introduced important improvements on the leased land.
Cultivation: Applicant must have broken and cultivated at least 1/3 of the land within 5 years from approval.
RESTRICTION TO SUB-LEASE
Lessee cannot assign, encumber, or sublet his right
over the leased land without approval from the
DENR Secretary.
Reason: To avoid speculation purposes or situation
where the land is used by other persons not legally
qualified to lease ALP.
CAN THE LESSEE SUBLEASE THE
IMPROVEMENTS ON THE LAND WITHOUT
CONSENT FROM GOVT? No. In Bachrach Motor Co. Inc. v. Universal Trading
Co. Inc., et al., 62 O.G. 30, July 25, 1966, it was ruled:
In lease contract of ALP, a provision is found that upon the breach thereof by the lessee, the govt as lessor may elect to declare the lease forfeited and enter and take possession of the premises and ALL IMPROVEMENTS actually existing thereon.
Hence, this can only mean that the improvements are also subject to forfeiture.
ADDITIONAL RESTRICTIONS
Lessee cannot remove or dispose of any valuable
timber, stone, oil, coal, salts or other minerals,
including medicinal mineral waters.
The leased land is subject to the same conditions
and restriction imposed on sale of ALP regarding
taxes, servitudes, easements, mines and water
rights
PREFERENCE OF LESSEE TO BUY LEASED
LAND
If the ALP leased is to be sold by the
Government during the subsistence of the
lease, LESSEE will have the option to
purchase the property, subject to conditions
and restrictions governing sale of ALP.
LESSEE HAS LEGAL STANDING TO OPPOSE
REGISTRATION OF ALP OBJECT IN LEASE
If lessee has already introduced substantial
improvements on the leased land, he is considered
a party in interest entitled to file opposition in
application for registration of the same land.
The trial court may be compelled by mandamus to
allow the lessee and his counsel to appear and
oppose the application (Director v. Del Rosario, 58
O.G. 3, Jan. 15, 1962)
REGISTRATION OF LEASE CONTRACT NOT
NECESSARY
True that any alienation, grant, conveyance on public lands is
not effective unless registered in the office of the RD (Sec.
122, Act 496)
However, a contract of lease of ALP does not constitute title or
deed of conveyance within the meaning of the above provision.
What the law contemplates are those transfers of ownership,
not documents transferring mere possession (Dagdag v.
Nepomuceno, 10 Phil. 216).
MODE NO. 4: CONFIRMATION OF
IMPERFECT OR INCOMPLETE TITLE
I. BY JUDICIAL LEGALIZATION
- When application is filed with the proper RTC
in the province or city where the land lies; or
I. BY FREE PATENT When the application is filed with the Bureau of Lands.
JUDICIAL LEGALIZATION
When to file: Until Dec. 31, 2020 (period extended by R.A. 9176)
Where to file: RTC in the province or city where the land lies.
Notice of the application with the survey plan must be furnished the OSG, the Bureau of Lands.
Publication of the notice of initial hearing once a week for 3 consecutive weeks in the O.G., and in 2 newspapers, one published in Manila and the other in the municipality or province where the land is situated.
Posting in the Bulletin Board of the LMB, Q.C. and in 3 conspicuous places in the provincial capitol and the municipal hall where the land is situated
PERSONS ENTITLED TO JUDICIAL LEGALIZATION/
CONFIRMATION OF IMPERFECT/INCOMPLETE
TITLE (a) Those who prior to the transfer of sovereignty
from Spain to the US have applied for the purchase, composition or other form of grant of lands of the public domain under the laws and royal decrees then in force and have instituted and prosecuted the proceedings in connection therewith, but have, with or without default upon their part, or for any other cause, not received title therefor, if such applicants or grantees and their heirs have occupied and cultivated said land continuously since the filing of their application;
(b) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive, and notorious possession and occupation of agricultural lands of the public domain, under a bona fide claim of acquisition of ownership, SINCE JUNE 12, 1945, immediately preceding the filing of the application of confirmation of title, except when prevented by war or force majeure. These shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be entitled to a certificate of title under the provision of P.D. 1073; and
(c) Members of the national cultural minorities who by themselves or through their predecessors-
in-interest have been in open, continuous,
exclusive and notorious possession and occupation
of lands of the public domain suitable to
agriculture, whether disposable or not, under a
bona fide claim of ownership since June 12, 1945.
REGISTRATION UNDER LAND REGISTRATION
ACT V. REGISTRATION UNDER THE PUBLIC
LAND ACT Under the Land Registration Act:
- presumption that title already exists and the
court is there only to confirm;
- dismissal may be with or without prejudice to
refiling; and
- applicant does not risk losing his property.
Under the Public Land Act:
- land applied for presumed to belong to the State and applicant is claiming it by virtue of his open, continuous, exclusive and notorious possession amounting to imperfect title;
- court hearing the application has jurisdiction and power to adjudicate the land in favor of the conflicting claimants, and if none is entitled, land is declared in favor of the Government; and
- applicant runs the risk of losing the land applied for, without opportunity of refiling the application.
PRESCRIPTION LIES AGAINST ALP (Jabutay v. Dir. Of Lands, CA G.R 16969, Nov. 7 1958)
In the case where the applicant was able to establish that he and his predecessors-in-interest had been in actual, peaceful, public, open and continuous possession of certain public land under claim of ownership for more than 65 years, he is deemed to have been conferred effective title and the subject land had ceased to a part of the public domain and had become a private property.
Note: Generally, 30 years possession without title and in bad faith is enough in acquisitive prescription. However, in ALP, possession must be traced since June 12, 1945.
ACQUISITION BY ADMIN LEGALIZATION OR
FREE PATENT
Persons entitled:
- Natural-born Filipino;
- Not owner of more than 24 hectares (now 12 hectares;
- Since July 4, 1945 or prior thereto, has continuously occupied and cultivated, either by himself or through his predecessors-in-interest, such public lands as may be subject of disposition;
- In lieu of continuous cultivation, applicant may show that he has paid real estate taxes on the property for the same period and the land has not been occupied by other persons.
LIMITATIONS IN AREA
Royal decrees: 1,000 hectares;
R.A. 6236 & P.D. 1073: 144 hectares;
1973 Constitution: 24 hectares; and
1987 Constitution: 12 hectares.
PROCEDURE IN OBTAINING FREE
PATENT Filing of Application with BL, accompanied with a map and
technical description of the land, and affidavits subscribed by two disinterested persons residing the same municipality or barangay where the land lies;
Posting of notices in conspicuous places in the provincial capital, the municipality and barangay where the land is situated for 2 consecutive weeks. Notice shall require those having interests to file their objection or adverse claim; and
Action by the BL.
WHEN FREE PATENT BECOMES FINAL AND
CONCLUSIVE
General rule: 1 year after issuance of the
free patent, title over the land becomes
indefeasible and incontrovertible.
Exception: Where the land granted is not
part of the public domain, but a private
land, the patent and Torrens Title issued are
a nullity.
IMPORTANT RESTRICTION
ON FREE PATENT
Land cannot be encumbered or alienated within 5 years from date of issuance, except in favor of the government or its instrumentalities.
Improvements or crops not covered.
After 5 years, the land may be alienated without need of approval from the DENR.
But it buyer is a juridical person, there must be consent from the grantee and approval from DENR
Any alienation is subject to right of repurchase by the patentee, his heirs within 5 years from date of sale.
ALIENABLE PUBLIC LANDS OTHER THAN
TIMBER, MINERAL OR AGRICULTURAL
Reclaimed lands;
Foreshore;
Marshy land or land covered with water bordering upon the shores or banks of navigable lakes or rivers; and
Other lands not included in above classification.
Note: The foregoing may be disposed of for residential, commercial, industrial or other productive purposes.
MEANING OF TERMS
Residential land: To be construed in its prospective and objective purposes taking into account the influx of population and the impact of commercial, industrial and social intercourse thereon. A truly residential lot could not be converted into an agricultural land simply by reserving a plot for cultivation; conversely, an agricultural land cannot be considered residential simply because a portion of it has been crisscrossed with roads and building here and there.
Reclaimed land: refers to submerged land which by deliberate act of dredging and filling has emerged to the surface. It belongs to the State. It may be declared property of adjoining owners only where it is no longer needed for public use or public service.
Foreshore: refers to that part of the land adjacent to the sea which is alternately covered and uncovered by the ordinary flow of the tides. It belongs to the State.
Note: R.A. 1899, Reclamation Act of 1957 declares as property of the LGU all reclaimed land undertaken by them.
Marshy land: that which borders on shores and banks of navigable rivers and lakes; it is generally swampy or soft wet land.
Note: All foregoing may be subject, as a rule, only of lease unless declared so by the President upon recommendation of the DENR or by legislation, i.e. R.A. 293, as amended by R.A. 1899 (June 22, 1957) allowing sale of marshy land with subsisting lease of at least 5 years to the lessee.
CASES ON RECLAIMED LANDS
Republic v. C.A. & Republic Real Estate Corp, G.R. No. 105276,
November 25, 1998.
Chavez v. PEA & Amari, G.R. No. 133250, July 9, 2002, en banc
decision;
REPUBLIC V. CA & REPUBLIC REAL ESTATE
CORP., G.R. No. 105276, November 25, 1998
The duty of the court is to interpret the enabling
Act, RA 1899. In so doing, we cannot broaden its
meaning, much less widen the coverage thereof.
If the intention of Congress were to include
submerged areas, it should have provided
expressly. That Congress did not so provide could
only signify the exclusion of submerged areas
from the term "foreshore lands".
CHAVEZ vs. PEA and AMARI [G.R. No. 133250, July 9, 2002, en banc decision]
Facts:
November 20, 1973: Commissioner of Public Highways, signed a contract with the Construction and Development Corporation of the Philippines ("CDCP" for brevity) to reclaim certain foreshore and offshore areas of Manila Bay. The contract also included the construction of Phases I and II of the Manila-Cavite Coastal Road. CDCP obligated itself to carry out all the works in consideration of fifty percent of the total reclaimed land.
February 4, 1977: Marcos issued Presidential Decree No. 1084 creating PEA with primary mandate "to reclaim land, including foreshore and submerged areas," and "to develop, improve, acquire, x x x lease and sell any and all kinds of lands."
On the same date, Presidential Decree No. 1085 was signed transferring to PEA the "lands reclaimed in the foreshore and offshore of the Manila Bay" under the Manila-Cavite Coastal Road and Reclamation Project (MCCRRP).
December 29, 1981: Pres. Marcos issued a memorandum directing PEA to amend its contract with CDCP directing that all future works in MCCRRP shall be funded and owned by PEA.
January 19, 1988: Pres.Aquino issued Special Patent No. 3517, granting and transferring to PEA the parcels of land already reclaimed under the Manila-Cavite Coastal Road and Reclamation Project (MCCRRP) containing a total area of one million nine hundred fifteen thousand eight hundred ninety four (1,915,894) square meters.
April 9, 1988: Paraaque RD issued TCT Nos. 7309, 7311, and 7312, in the name of PEA, covering the three reclaimed islands known as the "Freedom Islands" located at the southern portion of the Manila-Cavite Coastal Road, Paraaque City.
The Freedom Islands have a total land 157.841 hectares.
April 25, 1995: PEA entered into a JVA with AMARI
to develop the Freedom Islands. The JVA also
required the reclamation of an additional 250
hectares of submerged areas surrounding these
islands to complete the configuration in the
Master Development Plan of the Southern
Reclamation Project-MCCRRP. The JVA was
entered without public bidding.
April 28, 1995: PEA Board confirmed the JVA.
June 8, 1995, Pres. Ramos approved the JVA.
November 29, 1996: then Senate Pres. Maceda
delivered a privilege speech calling the JVA as the
"grandmother of all scams. A senate
investigation followed.
April 27, 1998: petitioner Chavez, as taxpayer, filed a petition for mandamus contending that the government stands to lose billions of pesos in the sale by PEA of the reclaimed lands to AMARI.
Petitioner assails the sale to AMARI of lands of the public domain as a blatant violation of Section 3, Article XII of the 1987 Constitution prohibiting the sale of alienable lands of the public domain to private corporations.
March 30, 1999: PEA and AMARI signed the Amended Joint Venture Agreement.
May 28, 1999: President Estrada approved the Amended JVA.
The Amended JVA covers a reclamation area of 750 hectares. Only 157.84 hectares of the 750-hectare reclamation project have been reclaimed, and the rest of the 592.15 hectares are still submerged areas forming part of Manila Bay.
Under the Amended JVA, AMARI will reimburse
PEA the sum of P1,894,129,200.00 for PEA's
"actual cost" in partially reclaiming the Freedom
Islands.
AMARI will also complete, at its own expense, the
reclamation of the Freedom Islands. AMARI will
further shoulder all the reclamation costs of all
the other areas, totaling 592.15 hectares, still to
be reclaimed.
AMARI and PEA will share, in the proportion of 70
percent and 30 percent, respectively, the total
net usable area which is defined in the Amended
JVA as the total reclaimed area less 30 percent
earmarked for common areas.
Under the Amended JVA AMARI will acquire and
own a maximum of 367.5 hectares of reclaimed
land which will be titled in its name.
PRINCIPAL ISSUE
WHETHER THE STIPULATIONS IN THE AMENDED
JOINT VENTURE AGREEMENT FOR THE TRANSFER
TO AMARI OF CERTAIN LANDS, RECLAIMED AND
STILL TO BE RECLAIMED, VIOLATE THE 1987
CONSTITUTION.
RATIO DECIDENDI
The ownership of lands reclaimed from foreshore and submerged areas is rooted in the Regalian doctrine which holds that the State owns all lands and waters of the public domain.
Commonwealth Act No. 141, also known as the Public Land Act, which authorized the lease, but not the sale, of reclaimed lands of the government to corporations and individuals. CA No. 141 continues to this day as the general law governing the classification and disposition of lands of the public domain.
The State policy prohibiting the sale to private parties of government reclaimed, foreshore and marshy alienable lands of the public domain, first implemented in 1907 was thus reaffirmed in CA No. 141 after the 1935 Constitution took effect .
Foreshore lands became inalienable as natural resources of the State, unless reclaimed by the government and classified as agricultural lands of the public domain, in which case they would fall under the classification of government reclaimed lands.
After the effectivity of the 1935 Constitution, government reclaimed and marshy disposable lands of the public domain continued to be only leased and not sold to private parties.
These lands remained sui generis, as the only alienable or disposable lands of the public domain the government could not sell to private parties.
Since then and until now, the only way the government can sell to private parties government reclaimed and marshy disposable lands of the public domain is for the legislature to pass a law authorizing such sale.
CA No. 141 does not authorize the President to reclassify government reclaimed and marshy lands into other non-agricultural lands under Section 59 (d).
Lands classified under Section 59 (d) are the only alienable or disposable lands for non-agricultural purposes that the government could sell to private parties.
Most importantly, Section 60 of CA No. 141 expressly requires congressional authority before lands under Section 59 that the government previously transferred to government units or entities could be sold to private parties
One reason for the congressional authority is that Section 60 of CA No. 141 exempted government units and entities from the maximum area of public lands that could be acquired from the State.
These government units and entities should not just turn around and sell these lands to private parties in violation of constitutional or statutory
limitations.
The 1987 Constitution continues the State policy in the 1973 Constitution banning private corporations from acquiring any kind of alienable land of the public domain. Like the 1973 Constitution, the 1987 Constitution allows private corporations to hold alienable lands of the public domain only through lease.
One purpose of the constitutional prohibition against purchases of public agricultural lands by private corporations is to equitably diffuse land ownership or to encourage 'owner-cultivatorship and the economic family-size farm'. Huge landholdings by corporations or private persons had spawned social unrest."
The Amended JVA covers not only the Freedom Islands, but also an additional 592.15 hectares which are still submerged and forming part of Manila Bay.
There is no legislative or Presidential act classifying these submerged areas as alienable or disposable lands of the public domain open to disposition.
There can be no dispute that these submerged areas form part of the public domain, and in their present state are inalienable and outside the commerce of man.
The mere fact that alienable lands of the public domain like the Freedom Islands are transferred to PEA and issued land patents or certificates of title in PEA's name does not automatically make such lands private.
To allow vast areas of reclaimed lands of the public domain to be transferred to PEA as private lands will sanction a gross violation of the constitutional ban on private corporations from acquiring any kind of alienable land of the public domain.
SUMMARY OF THE RULING:
The 157.84 hectares of reclaimed lands comprising the Freedom Islands, now covered by certificates of title in the name of PEA, are alienable lands of the public domain. PEA may lease these lands to private corporations but may not sell or transfer ownership of these lands to private corporations. PEA may only sell these lands to Philippine citizens, subject to the ownership limitations in the 1987 Constitution and existing laws.
The 592.15 hectares of submerged areas of Manila Bay remain inalienable natural resources of the public domain until classified as alienable or disposable lands open to disposition and declared no longer needed for public service. The government can make such classification and declaration only after PEA has reclaimed these submerged areas. Only then can these lands qualify as agricultural lands of the public domain, which are the only natural resources the government can alienate. In their present state, the 592.15 hectares of submerged areas are inalienable and outside the commerce of man.
Since the Amended JVA seeks to transfer to AMARI, a private corporation, ownership of 77.34 hectares of the Freedom Islands, such transfer is void for being contrary to Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable land of the public domain.
Since the Amended JVA also seeks to transfer to AMARI ownership of 290.156 hectares of still submerged areas of Manila Bay, such transfer is void for being contrary to Section 2, Article XII of the 1987 Constitution which prohibits the alienation of natural resources other than agricultural lands of the public domain. PEA may reclaim these submerged areas. Thereafter, the government can classify the reclaimed lands as alienable or disposable, and further declare them no longer needed for public service. Still, the transfer of such reclaimed alienable lands of the public domain to AMARI will be void in view of Section 3, Article XII of the 1987 Constitution which prohibits private corporations from acquiring any kind of alienable land of the public domain.
CHAVEZ vs. PEA and AMARI [G.R. No. 133250, November 11, 2003 Resolution of MR]
Submerged lands, like the waters (sea or bay) above them, are
part of the States inalienable natural resources. Submerged lands are property of public dominion, absolutely inalienable
and outside the commerce of man. This is also true with
respect to foreshore lands. Any sale of submerged or foreshore
lands is void being contrary to the Constitution.
Commonwealth Act No. 141, "foreshore and lands under water
were not to be alienated and sold to private parties,"
PEA is the central implementing agency tasked to undertake reclamation projects nationwide
PEA took the place of the Department of Environment and Natural Resources ("DENR" for brevity) as the government agency charged with leasing or selling all reclaimed lands of the public domain.
In the hands of PEA, which took over the leasing and selling functions of DENR, reclaimed foreshore (or submerged lands) lands are public lands in the same manner that these same lands would have been public lands in the hands of DENR
To allow vast areas of reclaimed lands of the public domain to be transferred to PEA as private lands will sanction a gross violation of the constitutional ban on private corporations from acquiring any kind of alienable land of the public domain.
PEA will simply turn around, as PEA has now done under the Amended JVA, and transfer several hundreds of hectares of these reclaimed and still to be reclaimed lands to a single private corporation in only one transaction.
This scheme will effectively nullify the constitutional ban in Section 3, Article XII of the 1987 Constitution which was intended to diffuse equitably the ownership of alienable lands of the public domain among Filipinos, now numbering over 80 million strong.
As we held in our 9 July 2002 Decision, the Amended JVA "violates glaringly Sections 2 and 3, Article XII of the 1987 Constitution.
In our 6 May 2003 Resolution, we DENIED with FINALITY respondents Motions for Reconsideration. Litigations must end some time. It is now time to write finis to this "Grandmother of All Scams."
SURVEY OF RECLAMATION LAWS
AND REGULATIONS The Spanish Law of Waters of 1866
Civil Code of 1889
Act No. 1654
Act No. 2874 ;
Commonwealth Act No. 141;
R.A. 1899
PD No. 1084
R.A. 7160
Executive Order 525, February 14, 1979 (Designating PEA as the Agency primarily responsible for all reclamation projects)
Executive Order 543, June 24, 2006 (Delegating to PRA the power to approve reclamation projects)
Executive Order No. 380, Oct. 26, 2004 (Transforming PEA into PRA)
Executive Order No. 586
Executive Order No. 654
Presidential Decree No. 1085
THE SPANISH LAW OF WATERS OF 1866
Article 5. Lands reclaimed from the sea in
consequence of works constructed by the State, or
by the provinces, pueblos or private persons, with
proper permission, shall become the property of
the party constructing such works, unless otherwise
provided by the terms of the grant of authority.
CIVIL CODE OF 1889 (Arts. 339 & 341)
Art. 339. Property of public dominion is:
1. That devoted to public use, such as roads, canals,
rivers, torrents, ports and bridges constructed by
the State, riverbanks, shores, roadsteads, and that
of a similar character;
2. That belonging exclusively to the State which, without being of general public use, is employed in some public service, or in the development of the national wealth, such as walls, fortresses, and other works for the defense of the territory, and mines, until granted to private individuals.
Art. 341. Property of public dominion, when no longer devoted to public use or to the defense of the territory, shall become a part of the private property of the State.
ACT NO. 1654, PHILIPPINE COMMISSION
(MAY 8, 1907)
Section 1. The control and disposition of the
foreshore as defined in existing law, and the title
to all Government or public lands made or
reclaimed by the Government by dredging or filling
or otherwise throughout the Philippine Islands,
shall be retained by the Government without
prejudice to vested rights and without prejudice to
rights conceded to the City of Manila in the Luneta
Extension.
Section 2.
(a) The Secretary of the Interior shall cause all Government or public lands made or reclaimed by the Government by dredging or filling or otherwise to be divided into lots or blocks, with the necessary streets and alleyways located thereon, and shall cause plats and plans of such surveys to be prepared and filed with the Bureau of Lands.
(b) Upon completion of such plats and plans the Governor-General shall give notice to the public that such parts of the lands so made or reclaimed as are not needed for public purposes will be leased for commercial and business purposes, x x x.
(e) The leases above provided for shall be disposed of to the highest and best bidder therefore, subject to such regulations and safeguards as the Governor-General may by executive order prescribe.
Synopsis: Act 1654
Act No. 1654 mandated that the government should retain title to all lands reclaimed by the government. The Act also vested in the government control and disposition of foreshore lands. Private parties could lease lands reclaimed by the government only if these lands were no longer needed for public purpose.
Act No. 1654 mandated public bidding in the lease of government reclaimed lands. Act No. 1654 made government reclaimed lands sui generis in that unlike other public lands which the government could sell to private parties, these reclaimed lands were available only for lease to private parties.
Act No. 1654 did not repeal Section 5 of the Spanish Law of
Waters of 1866. Act No. 1654 did not prohibit private parties
from reclaiming parts of the sea under Section 5 of the
Spanish Law of Waters. Lands reclaimed from the sea by
private parties with government permission remained private
lands.
ACT 2874 [Nov. 29, 1919]
Sec. 6. The Governor-General, upon the recommendation of the Secretary of Agriculture and Natural Resources, shall from time to time classify the lands of the public domain into ?
(a) Alienable or disposable,
(b) Timber, and
(c) Mineral lands, x x x.
Sec. 7. For the purposes of the government and disposition of alienable or disposable public lands, the Governor-General, upon recommendation by the Secretary of Agriculture and Natural Resources, shall from time to time declare what lands are open to disposition or concession under this Act."
Sec. 8. Only those lands shall be declared open to disposition or concession which have been officially delimited or classified x x x.
Sec. 55. Any tract of land of the public domain which, being neither timber nor mineral land, shall be classified as suitable for residential purposes or for commercial, industrial, or other productive purposes other than agricultural purposes, and shall be open to disposition or concession, shall be disposed of under the provisions of this chapter, and not otherwise.
Sec. 56. The lands disposable under this title shall be classified as follows:
(a) Lands reclaimed by the Government by dredging, filling, or other means;
(b) Foreshore;
(c) Marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers;
(d) Lands not included in any of the foregoing classes.
Sec. 58. The lands comprised in classes (a), (b),
and (c) of section fifty-six shall be disposed of to
private parties by lease only and not otherwise,
as soon as the Governor-General, upon
recommendation by the Secretary of Agriculture
and Natural Resources, shall declare that the
same are not necessary for the public service and
are open to disposition under this chapter. The
lands included in class (d) may be disposed of by
sale or lease under the provisions of this Act.
C.A. 141 [PUBLIC LAND ACT] Nov. 7, 1936
Sec. 58. Any tract of land of the public domain which, being neither timber nor mineral land, is intended to be used for residential purposes or for commercial, industrial, or other productive purposes other than agricultural, and is open to disposition or concession, shall be disposed of under the provisions of this chapter and not otherwise.
Sec. 59. The lands disposable under this title shall be classified as follows:
(a) Lands reclaimed by the Government by dredging, filling, or other means;
(b) Foreshore;
(c) Marshy lands or lands covered with water bordering upon the shores or banks of navigable lakes or rivers;
(d) Lands not included in any of the foregoing classes.
Sec. 60. Any tract of land comprised under this title may be leased or sold, as the case may be, to any person, corporation, or association authorized to purchase or lease public lands for agricultural purposes.
Sec. 61. The lands comprised in classes (a), (b),
and (c) of section fifty-nine shall be disposed of
to private parties by lease only and not
otherwise, as soon as the President, upon
recommendation by the Secretary of Agriculture,
shall declare that the same are not necessary for
the public service and are open to disposition
under this chapter. The lands included in class (d)
may be disposed of by sale or lease under the
provisions of this Act.
Section 61 of CA No. 141 readopted, after the effectivity of the 1935 Constitution, Section 58 of Act No. 2874 prohibiting the sale of government reclaimed, foreshore and marshy disposable lands of the public domain.
All these lands are intended for residential, commercial, industrial or other non-agricultural purposes. As before, Section 61 allowed only the lease of such lands to private parties.
The government could sell to private parties only lands falling under Section 59 (d) of CA No. 141, or those lands for non-agricultural purposes not classified as government reclaimed, foreshore and marshy disposable lands of the public domain. Foreshore lands, however, became inalienable under the 1935 Constitution which only allowed the lease of these lands to qualified private parties.
The Civil Code of 1950
Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and bridges constructed by the State, banks, shores, roadsteads, and others of similar character;
(2) Those which belong to the State, without being for public use, and are intended for some public service or for the development of the national wealth.
x x x.
Art. 422. Property of public dominion, when no longer intended for public use or for public service, shall form part of the patrimonial property of the State.
Government must formally declare that the property of
public dominion is no longer needed for public use or public
service, before the same could be classified as patrimonial
property of the State.
In the case of government reclaimed and marshy lands of the
public domain, the declaration of their being disposable, as
well as the manner of their disposition, is governed by the
applicable provisions of CA No. 141.
Like the Civil Code of 1889, the Civil Code of 1950 included as property of public dominion those properties of the State which, without being for public use, are intended for public service or the "development of the national wealth."
Thus, government reclaimed and marshy lands of the State, even if not employed for public use or public service, if developed to enhance the national wealth, are classified as property of public dominion.
Dispositions under the 1973
Constitution [Sec. 8, Art. XIV]
Sec. 8. All lands of the public domain, waters, minerals, coal, petroleum and other mineral oils, all forces of potential energy, fisheries, wildlife, and other natural resources of the Philippines belong to the State.
With the exception of agricultural, industrial or commercial, residential, and resettlement lands of the public domain, natural resources shall not be alienated, and no license, concession, or lease for the exploration, development, exploitation, or utilization of any of the natural resources shall be granted for a period exceeding twenty-five years, renewable for not more than twenty-five years, except as to water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water power, in which cases, beneficial use may be the measure and the limit of the grant."
Both the 1935 and 1973 Constitutions prohibit the alienation of all natural resources except agricultural lands of the public domain.
However, the 1973 Constitution limits the alienation of lands of the public domain to individuals who were citizens of the Philippines.
Private corporations, even if wholly owned by Philippine citizens, were no longer allowed to acquire alienable lands of the public domain unlike in the 1935 Constitution.
PD No. 1084, Feb. 4, 1977 [PEA
CHARTER]
Sec. 4. Purpose. The Authority is hereby created for the following purposes:
(a) To reclaim land, including foreshore and submerged areas, by dredging, filling or other means, or to acquire reclaimed land;
(b) To develop, improve, acquire, administer, deal in, subdivide, dispose, lease and sell any and all kinds of lands, buildings, estates and other forms of real property, owned, managed, controlled and/or operated by the government;
(c) To provide for, operate or administer such service as may be necessary for the efficient, economical and beneficial utilization of th