DA Manual of Procedures For ROW Acquisition
DA Manual of Procedures For ROW Acquisition
DA Manual of Procedures For ROW Acquisition
MANUAL OF
PROCEDURES FOR
RIGHT-OF-WAY
ACQUISITION
DECEMBER 2022
2013
Memorandum Circular
No. _____
Series of 2022
WHEREAS, Republic Act No. 10752 (R.A. No. 10752) otherwise known as “The Right-of-Way
Act” was enacted to ensure that all persons whose real property is affected by national
government infrastructure projects are promptly paid just compensation for the expeditious
acquisition of the required right-of-way (ROW), site, or location.
WHEREAS, pursuant to Section 3 of R.A. No. 10752, the term “national government projects”
shall refer to all national government infrastructure projects and its public service facilities,
engineering works and service contracts, including projects undertaken by the government-
owned and -controlled corporations, all projects covered by the RA No. 6957, as amended by RA
No. 7718, otherwise known as the “Build-Operate-and-Transfer Law”, and other related and
necessary activities, such as site acquisition, supply or installation of equipment and materials,
implementation, construction, completion, operation, maintenance, improvement, repair and
rehabilitation, regardless of source of funding.
WHEREAS, Section 18 of the Implementing Rules and Regulations of R.A. No. 10752 (IRR of R.A.
No. 10752) states that, “To provide clear, specific, and operational guidelines for the efficient
acquisition of land for ROW for its infrastructure projects, each IA shall prepare and implement
its own “Manual of Procedures for ROW Acquisition”.
WHEREAS, Section 24 of Republic Act No. 10601 (R.A. No. 10601) or the “Agricultural and
Fisheries Mechanization (AFMech) Law” states that, “Pursuant to Section 46 of Republic Act No.
8435, otherwise known as the “Agriculture and Fisheries Modernization Act of 1997”, the
Bureau of Agricultural and Fisheries Engineering (BAFE) is hereby created as a regular bureau
of the DA which shall be under the supervision of the DA Undersecretary and shall have the
following functions and responsibilities:
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a. Coordinate, oversee and monitor the national planning and implementation of agri-
fisheries engineering, farm-to-market road and other agri-fisheries infrastructure
projects
b. Assist in the national planning, coordination and implementation of the national
agricultural and fisheries mechanization programs;
c. Prepare, evaluate, validate and recommend engineering plans, designs and
technical specifications on agri-fisheries mechanization and infrastructure projects;
and
d. Oversee and provide technical assistance to the services of the agricultural
engineering divisions of the DA-Regional Field Offices (RFOs).
WHEREAS, as part of its mandates, the preparation of the Manual of Procedures for ROW
Acquisition and the corresponding guidelines for its implementation was spearheaded by the
BAFE, in coordination with the concerned implementing offices and units of the Department.
WHEREAS, on November 10, 2020, the DA issued the Administrative Order (AO) No. 38 which
provided general guidelines on the implementation of acquisition of land for Right-of-Way, Site
or Location for agri-fisheries infrastructure projects of the Department of Agriculture including
the formulation of the Manual of Procedures for ROW Acquisition.
WHEREAS, in view of the implementation concerns raised by various implementing offices, the
DA issued a Moratorium on AO No. 38 on October 22, 2021 which shall remain effective until
further notice.
WHEREAS, to provide policy direction and uniform guidance on the procedures, documentary
requirements, and organizational arrangements on the implementation of ROW acquisition
activities, the DA Administrative Order No. 38, Series of 2020 was revised to include
modifications on the scope of infrastructures projects eligible for the acquisition of ROW, the
adoption of the Manual of Procedures for ROW Acquisition, and other provisions.
NOW THEREFORE, this Memorandum Circular is hereby issued for the adoption of the DA
Revised Guidelines on the Acquisition of Right-of-Way, Site, or Location for National
Government Infrastructure Projects in the Agriculture and Fisheries Sector and the Manual of
Procedures for ROW Acquisition, in accordance with the provisions of RA No. 10752 and its IRR.
Section I
OBJECTIVES
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Section II
DEFINITION OF TERMS
Implementing Agency (IA) 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 DA, as a whole, is an IA.
Implementing Office (IO) refers to any of the units of the DA authorized to implement
mechanization and infrastructure projects.
Independent Property Appraiser (IPA) refers to an individual or firm that may be engaged by
the Implementing Office to provide property appraisal services, including estimates of the
market values of the property, affected by the ROW for a project.
Right-of-Way (ROW) means a part or the entirety of a property, site or location, with defined
physical boundaries, used or required by a government infrastructure project.
ROW Action Plan (ROWAP) refers to the document that defines the extent of the ROW to be
acquired for a project, including, among other things, cost estimates for acquiring land,
structures, crops, trees, and recommended compensation and entitlement package for owners
and project-affected persons (PAPs), implementation schedule, and impact and mitigating
measures for the ROW acquisition.
Site or Location refers to the land or property where the agri-fishery infrastructure
project will be constructed/established.
Section III
SCOPE & LIMITATIONS
Implementing Offices/Units
Pursuant to Section 18 of the RA 9184 IRR, each IA is mandated to prepare its own Manual of
Procedures for ROW Acquisition to provide clear, specific, and operational guidelines for the
efficient acquisition of ROW for its infrastructure projects.
As defined in the same IRR, Implementing Agency or IA 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.
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The DA is considered an implementing agency of national government infrastructure projects
intended for the agriculture and fisheries sector. The DA is composed of several implementing
offices which include Regional Field Offices (RFOs), bureaus, attached agencies and
corporations.
In view of the above, this Memorandum Circular was developed to serve as the standard
reference of the DA and all its implementing offices. However, since its implementing offices are
likewise considered as an IA, they may opt to prepare their own Manual customized to their
particular requirements and systems for ROW acquisition.
Pursuant to Section 3 of the RA 10752, the term “national government projects” shall refer to all
national government infrastructure projects and its public service facilities, engineering works
and service contracts, including projects undertaken by the government-owned and -controlled
corporations, all projects covered by the RA No. 6957, as amended by RA No. 7718, otherwise
known as the “Build-Operate-and-Transfer Law”, and other related and necessary activities,
such as site acquisition, supply or installation of equipment and materials, implementation,
construction, completion, operation, maintenance, improvement, repair and rehabilitation,
regardless of source of funding. These projects shall include, but not limited to the following:
(1) Highways, including expressways, roads, bridges, interchanges, overpasses, tunnels,
viaducts and related facilities;
(2) Railways and mass transit facilities;
(3) Port Infrastructure, like piers, wharves, quays, storage handling and ferry services;
(4) Airports and air navigation facilities;
(5) Power generation, transmission and distribution facilities;
(6) Radio/television broadcasting and telecommunications infrastructure;
(7) Information technology infrastructure;
(8) Irrigation, flood control, and drainage systems;
(9) Water and debris retention structures and dams;
(10) Water supply, sanitation, sewerages and waste management facilities;
(11) Land reclamation, dredging, and development;
(12) Industrial and tourism estates;
(13) Government School buildings, hospitals, clinics and other buildings and housing
projects;
(14) Public Markets and slaughterhouses; and
(15) Other similar or related infrastructure works and services of the national government.
Applying the rule of statutory construction known as “Ejusdem generis” where the general
words follow the enumeration of particular classes of persons or things, the general words will
be construed as applicable only to persons or things of the same general nature or class of those
enumerated.
On the other hand, the concept of public use or public purpose has expanded to include utility,
advantage, or productivity for the benefit of the public. “Public Use” as a requisite for the valid
exercise of the power of eminent domain refers to whatever is beneficially employed for the
general welfare. Public use has now been held to be synonymous with “public interest”,
“public benefit”, and “public convenience”.
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From the definition of public purpose above, it is clear that acquisition of private property for
ROW will only be applicable if there is some public advantage, convenience, or benefit involved.
It should be grounded on public interest and welfare and not an unjustified interference with
the property right/s of private persons.
Moreover, this Memorandum Circular will cover agri-fishery infrastructure projects that will
remain in the ownership, operation, and management of the DA, as the implementing agency,
and sometimes the concerned Local Government Units (LGUs) and State Universities and
Colleges (SUCs) as the implementing partner of the DA. With these authorizations vested in the
government, the concept of public use, interest, benefit, and convenience will still be served.
These agri-fishery infrastructure projects include, but are not be limited to the following:
1. DA Offices
a. Laboratory and Research Centers
b. Administrative Buildings
c. Quarantine and Checkpoint Centers
d. Training Centers
2. Commodity Transport Infrastructure
a. Farm-to-Market Road
b. Farm-to-Mill Road
3. Irrigation Facilities (national and communal)
a. Irrigation Dams
b. Irrigation Canals
c. Other appurtenant structures
4. Production/Marketing Facilities
a. Public Market
b. Fish Ports
c. Trading Centers/Posts
5. Other infrastructure projects that will be constructed, operated, and managed by the
DA with LGUs or SUCs as implementing partners
Limitations
There are infrastructure projects being implemented by the DA that are given as grants to
certain farmers/irrigators associations and which are intended to benefit only the grantee or a
particular group of private individuals. In this case, the ownership, operation, and management
will be carried out by private individuals which may opt to limit the use of grant facilities within
its farmers members only. With this, the concept of public use, interest, benefit, and
convenience will no longer be applicable, thus, grant projects are not covered by this issuance.
As part of the due diligence of the DA in implementing grant projects, IOs shall require the
recipients (farmers or irrigators association) to acquire the property for the construction of the
project through donation, sale or execute a Usufruct Agreement with the property owner for a
period not less than the service life of the project.
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Section IV
MODES OF ACQUISITION
As provided in Section 4 of RA No. 10752, the following are the regular modes of acquisition
a) Donation
In accordance with Section 5 of RA No. 10752 and its IRR, the IA may explore the mode
of donation of the needed portion or whole of the affected property, i.e., lots with or
without improvements, by the property owner concerned, which may be a private
individual/corporation or a government agency/corporation.
Where feasible, the regular mode of acquisition through donation shall be first
considered. This is initiated through requesting the property owner to donate the
property for the implementation of agri-fisheries infrastructure projects.
b) Negotiated Sale
If donation is not feasible, negotiated sale for the acquisition of the property may be
considered as the mode of acquisition. As provided in Section 6 of the IRR of RA 10752,
the IA may acquire through negotiated sale the required ROW, by offering to the
property owner a compensation price at the sum of the: a) the current market value of
the land; b) the replacement cost of structures and improvements therein, and c)
current market value of crops and trees.
c) Expropriation
According to Section 7 of the IRR of RA 10752, whenever the property owner refuses or
fails to accept the price offer within thirty (30) days of the IA for negotiated sale or fails
and/or refuse to submit the document necessary for payment, or when negotiation is
not feasible, then the implementing agency shall initiate the expropriation proceeding
by filing a verified compliant before the proper court
Other modes of acquisition may be explored and considered depending on the peculiarity of the
case, which shall include but is not limited to the following:
With accordance to Section 8 of the IRR of RA 10752, in cases of lands granted through
CA No. 141, dated 07 November 1936, known as the Public Land Act, and its
amendments, the IA shall:
1. Follow the other modes of acquisition enumerated in the IRR of RA 10752, if the
landowner is not the original patent holder and any previous acquisition of said land
is not through a gratuitous title; or
2. Follow the provisions under CA No. 141 regarding acquisition of ROW on patent
lands, if the landowner is the original patent holder or the acquisition of the land
from the original patent holder is through a gratuitous title.
If the government decides to exercise its right to use the ROW strip reserved for public
use within the land acquired under CA No. 141, the owner is required to execute a quit
claim.
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b) Exchange or Barter
According to Section 9 of the IRR of RA 10752, instead of being paid with the money
value of his property, the owner of a property needed for a ROW of a national
government project may request the DA to exchange or barter an old abandoned
government property near the project with his said property.
The IO may favorably consider this mode especially when the lot being taken is the
owner’s only lot subject to the provisions of relevant laws and the following conditions
provided in Section 9 of the RA 10752 and its IRR.
c) Easement of Right-of-Way
In accordance to Section of 10 of the IRR of RA 10752, if the portion of a lot needed for a
ROW is minimal, such that the expenses for surveying or segregating that portion from
the main lot would be very much more than the value of the part of the lot needed, the
IO may, if the property owner agrees, resort to the mode of Easement of ROW provided
under the Civil Code.
2. Easement of Aqueduct
This mode applies when there is a need to make the water flow through an
intervening land property to make use of the said water for irrigation or
improvement. Figures 8 shows the process flow of acquiring ROW using the
Easement Agreement. According to Chapter 2, Section 2, Article 640 of the Civil
Code, compulsory easements for drawing water or for watering can be imposed
only for reasons of public use in favor of a town or village, after payment of the
proper indemnity.
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under Republic Act No. 8371 (R.A. No. 8371), otherwise known as "The
Indigenous Peoples Rights Act (IPRA) of 1997"
Section V
APPROPRIATIONS
As provided by Section 15 of the RA 10752 and its IRR, the government shall provide adequate
appropriations that will allow the IA to acquire the required right-of-way, site or location for
national government infrastructure projects in advance of the project implementation. In order
to conduct all necessary activities related to the ROW acquisition, corresponding appropriations
shall be provided as enumerated below with the corresponding object of expenditure.
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Expenses Object of Expenditure
e) Administrative expenses - Other Maintenance and Other
(consultancy, professional, and Operating Expenses (Other
administrative services) for right Professional Service and Consultancy
of-way management like Service)
preparation of deeds, transfer of
titles, and annotation of deeds.
In order to be included in the annual DA budget proposal, an ROW Acquisition Plan (ROWAP)
shall be prepared. The ROWAP contains the estimated budget for all ROW acquisitions costs
including inflation and contingencies, schedule of implementation, and the areas to be acquired.
To ensure that projects for implementation are shovel-ready, the following timeline is
recommended:
Timeline Activities
2 years prior to project o Preparation of ROWAP and inclusion in the budget
implementation proposal*
1 year prior to project o Validation of ROWAP and implementation of ROW
implementation acquisition activities**
Year of Project o ROW acquisition activities are already settled such as the
Implementation payment of compensation price, transfer of title, and
clearing of ROW
*Cost estimates may be prepared by in-house appraisers/ABEs
**Cost estimates should be prepared/reviewed/certified by GFI/IPAs
Section VI
CREATION OF RIGHT-OF-WAY IMPLEMENTING UNIT
At the national level, the Bureau of Agricultural and Fisheries Engineering (BAFE) shall serve as
the oversight agency in the implementation of this Memorandum Circular. For this purpose, the
BAFE shall undertake the following:
As part of the function to ensure the creation of ROW units, the BAFE shall facilitate the
preparation and submission of a Rationalization Plan to the Department of Budget and
Management (DBM) for the creation of an organic ROW Unit pursuant to section 5 of Executive
Order No. 366, Series of 2004.
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Pending the submission and approval of the Rationalization Plan, each implementing office/unit
is hereby authorized to designate/create its own interim or ad hoc ROW Unit. The BAFE shall
likewise consolidate the list of Contract of Service and endorse it to the DA Secretary for
subsequent approval.
The ROW Unit will facilitate the acquisition of ROW, site, or location, and shall be composed of
the following staff:
a) ROW Officer/s – shall facilitate the implementation of ROW Action Plans (ROWAP).
Specifically, the ROW Officer shall:
1. Formulate ROWAP;
2. Review the completeness, compliance and authenticity of the ownership documents
(proof of ownership Certificate of Title/Tax Declaration, Deed of Sale or Donation for
the site/location including the access road, Land Classification – zoning ordinance
and the processing of the transfer of ownership, and others) and to ensure that area
where permanent facilities (warehouse and processing facilities) constructed are
covered by sufficient security of tenure;
3. Prepare budgetary proposal for ROW appraisal and settlement and monitoring of
financial accomplishments;
4. May serve as an in-house appraiser;
5. Monitor the status of activities relative to ROW acquisition and recommend
appropriate actions; and
6. Ensure that the database of ROWs acquired is maintained.
b) Institutional Development Officer (IDO) – shall facilitate preparation activities and address
matters arising from Project-Affected Persons (PAPs) during the process of ROW
acquisition. Specifically, the IDO shall:
1. Facilitate social preparation including community consultations;
2. Serve as trainer or resource person in ROW related training programs;
3. Lead in the negotiations; and
4. Act as Grievance Officer that shall conduct assessing, analyzing and resolving
complaints and issues relating to the project at the lowest level possible.
c) Administrative Officer/s - shall assist other members of the ROW Unit in undertaking their
functions relative to management of documents and public affairs. Specifically, the
Administrative Officer shall:
1. Process legal documents required;
2. Maintain database of ROWs acquired and all supporting documents;
3. Prepare documentary requirements for payment of compensation costs, taxes, fees;
4. Remit taxes and fees involved in ROW acquisition to the involved offices
(BIR/LGU/Registry of Deeds);
5. Provide administrative assistance to the unit;
6. Record, coordinate, and track all documents prepared and received by the ROW
Unit; and
7. Check the completeness of documents prior to archiving.
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d) Legal Officer (Retainer/On-call) – shall review and recommend on all activities undertaken
and legal documents prepared and received by the IO/IA relative to ROW acquisition.
Specifically, the Legal Officer shall:
1. Advise the ROW Unit on the laws, rulings and regulations of RA No. 10752 and its
IRR and relevant laws on Acquisition of land for ROW, site or location;
2. Prepare and review on legal documents for the transfer of ROW;
3. Recommend legal action relevant to Acquisition of ROW;
4. Perform notary works of legal documents; and
5. Validate, assess, and recommend actions on legal matters arising during ROW
acquisition.
Additional tasks may be designated by the head of the implementing office as may be necessary.
The number of additional Contracts of Service for the ROW Unit will depend on the existing
staffing pattern of the IO, so long as the recommended composition of the ROW unit will be
completed.
If the Legal service will be hired, the acquiescence of the Office of the Solicitor General (OSG)
shall be sought. On services of a legal officer, performance of notary works of the legal
documents may be included in the terms of reference or contracted responsibilities. Otherwise,
expenses for notary works shall be integrated in the annual budgetary requirement of the
implementing office.
Likewise, pursuant to the IRR of the ROW Act, the Memorandum Circular authorizes the
utilization of services of GFIs or IPAs for generating appraisal reports to serve as bases of the
price offer for negotiated sale and other applicable modes of acquisition. For this purpose, the
IO is also encouraged to capacitate its in-house personnel in validating such appraisal reports.
Similarly, in-house appraisers were authorized to conduct valuation of agri-fishery properties
or projects (buildings, crops, trees, and other improvements) located in lands categorized as
agricultural, which may be used as reference of the implementing office during the budget
preparation phase.
All Implementing Offices under DA shall establish its ROW Unit within a year after the effectivity
of this Memorandum Circular.
Section VII
MANUAL OF PROCEDURES FOR ROW ACQUISITION
In compliance with Section 18 of the IRR of RA 10752 and to guide the IOs in the process
acquiring right-of-way, site, or location prior to the implementation of agri-fisheries
infrastructure projects, the attached Procedural Manual for ROW Acquisition is hereby adopted.
The Manual serves as a working guide for DA offices in the proper implementation of the ROW
acquisition process for its infrastructure projects, pursuant to the provisions of the Right-of-
Way Act and its IRR. Specifically, the Manual aims to:
1. Define the rules, procedures, standard documents, and templates to be used by the
different DA IOs in ROW acquisition;
2. Serve as reference of property owners and other PAPs on the rules and processes in
ROW acquisition, including their basic rights and obligations;
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3. Guide for the GFIs, IPAs and In-house Appraisers in determining the appropriate price
offers to property owners affected by ROW acquisition; and
4. Guide other concerned government entities on the ROW aspects that entail their active
participation.
Section VIII
REPEALING CLAUSE
All other previous orders, issuances, rules and regulations, or part thereof, inconsistent with or
contrary to this Memorandum Circular are hereby repealed and modified accordingly.
Section IX
EFFECTIVITY
This Memorandum Circular shall be effective immediately upon signing and shall remain in
force until revoked in writing.
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TABLE OF CONTENTS
LIST OF FLOWCHARTS .....................................................................3
LIST OF TEMPLATES .........................................................................3
LIST OF REFERENCES ......................................................................4
ACRONYMS .........................................................................................5
DEFINITION OF TERMS .....................................................................7
I. INTRODUCTION .............................................................................10
1.1. RATIONALE ............................................................................................ 10
1.2. OBJECTIVES OF THE MANUAL............................................................ 11
1.3. COVERAGE OF THE MANUAL .............................................................. 11
1.3.1. IMPLEMENTING OFFICES.................................................................. 11
1.3.2. INFRASTRUCTURE PROJECTS ........................................................ 12
1.3.2.1. TYPE OF ACQUISITION .................................................................. 14
1.3.2.2. LIMITATIONS ................................................................................... 14
1.3.3. MODES OF ACQUISITION .................................................................. 14
1.3.4. APPROPRIATIONS ............................................................................. 15
II. ROW ACQUISITION PROCESS .................................................16
2.1. ROW ACQUISITION OVERALL PROCESSFLOW................................. 16
III ROW ACTION PLAN PREPARATION .......................................16
IV ROW ACTION PLAN IMPLEMENTATION .................................19
4.1. Regular Modes of ROW Acquisition..................................................... 19
4.1.1. ACQUISITION OF ROW THROUGH DONATION ............................... 19
4.1.2. ACQUISITION OF ROW THROUGH NEGOTIATION .......................... 22
4.1.3. ACQUISITION OF ROW THROUGH EXPROPRIATION ..................... 26
4.2. Other Modes of ROW Acquisition ........................................................ 32
4.2.1. ACQUISITION OF ROW THROUGH EXCHANGE OR BARTER ........ 32
4.2.2. ACQUISITION OF ROW THROUGH EXECUTION OF QUIT CLAIM .. 37
4.2.3. ACQUISITION OF ROW THROUGH EASEMENT OF RIGHT-OF-WAY40
4.2.3.1. ACQUISITION OF SUBSURFACE RIGHT-OF-WAY ....................... 43
4.2.3.2. ACQUISITION THROUGH EASEMENT OF AQUEDUCT ................ 44
4.2.3.3. ACQUISITION OF LAND UNDER ANCESTRAL DOMAIN............... 45
4.3. Special Cases ......................................................................................... 46
4.3.1. ROW ACQUISITION OF MORTGAGED PROPERTIES ...................... 46
1
4.3.2. ROW ACQUISITION OF UNTITLED LANDS ....................................... 46
4.3.3. ROW ACQUISITION WHEREIN THE LANDOWNER IS DECEASED . 46
4.3.4. ROW ACQUISITION WHEREIN THE LANDOWNER IS A
CORPORATION/PARTNERSHIP/ASSOCIATION ............................................. 47
4.3.5. ROW ACQUISITION WHEREIN THE PROPERTY IS UNDER
GUARDIANSHIP ................................................................................................ 47
4.3.6. ROW ACQUISITION OF LANDS WITH ATTORNEY-IN- FACT
REPRESENTATION ........................................................................................... 47
4.3.7. ACQUISITION OF LANDS WHEN THERE ARE NO CLAIMANTS ...... 48
4.3.8. ROW ACQUISITION OF LANDS WHOSE OWNERS HAVE NO LEGAL
RIGHTS 48
4.3.9. OUTSTANDING ROW CLAIMS FOR COMPLETED PROJECTS ....... 49
4.3.10. ACQUISITION OF LAND UNDER COMMUNITY BASED FOREST
MANAGEMENT .................................................................................................. 49
AGREEMENT (CBFMA) ..................................................................................... 49
V MANAGEMENT OF ROW ...........................................................50
5.1 Preparation of ROW Acquisition Completion Report ......................... 50
5.2 Management of Titles of Acquired ROWs ........................................... 50
5.3 Monitoring of Acquired ROWs.............................................................. 50
VI PROCEDURES FOR SUB-PROCESSES...................................52
6.1. Appraisal Services of GFIs and IPAs ................................................... 52
6.1.1. ENGAGEMENT OF SERVICES OF GFIS AND IPAS .......................... 52
6.1.2. TERMS OF REFERENCE FOR GFIS AND IPAS ................................ 53
6.1.3. SCOPE, LEVEL, AND BASIS OF APPRAISAL .................................... 54
6.1.4. APPRAISAL OF LAND ......................................................................... 54
6.1.5. APPRAISAL OF STRUCTURES .......................................................... 55
6.1.6. APPRAISAL OF CROPS/TREES ......................................................... 57
6.2. Determination of Capital Gains Tax and other Taxes and Fees......... 57
6.3. Execution of Deed of Sale ..................................................................... 59
6.4. Schedule of Payments........................................................................... 60
6.5. Clearing of ROW .................................................................................... 61
6.5.1. CLEARING OF PRIVATE STRUCTURES WITHIN THE ROW ............ 62
6.5.2. CLEARING OF PUBLIC IMPROVEMENTS WITHIN THE ROW.......... 63
6.5.3. CLEARING OF PERENNIAL TREES WITHIN THE ROW ................... 63
6.6. Transfer of Title ...................................................................................... 64
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LIST OF FLOWCHARTS
1) Overall Process Flow for ROW Acquisition
2) Process Flow for Preparation of ROW Action Plan
3) Process Flow for ROW Acquisition through Donation
4) Process Flow for ROW Acquisition through Negotiation
5) Process Flow for ROW Acquisition through Expropriation
6) Process Flow for ROW Acquisition through Exchange
7) Process Flow for ROW Acquisition through Execution of Quit Claim
8) Process Flow for ROW Acquisition through Easement Agreement
LIST OF TEMPLATES
A. ROW Action Plan (ROWAP)
1. Preliminary Cost Estimates for Land
2. Preliminary Cost Estimates for Structures, Crops, and Trees
3. Parcellary Survey
4. ROW Compensation Matrix
B. ROW Status Report
C. GFIs/IPAs
1. Template Terms of Reference for Property Appraisal Services
2. Format of Approved Budget for the Contract (ABC)
3. Form of Memorandum of Agreement with GFI
4. Form of Contract of Agreement with IPA
D. Deed of Donation of Real Property
E. Deed of Absolute Sale
1. For Land Including Structures, Crops, and Trees
2. For Land Only
F. Extra Judicial Settlement of Estate with Deed of Absolute Sale
G. Deed of Exchange
H. Quit Claim Deed
1. For Unpatented Lands
2. For Lands Acquired under the Public Land Law
I. Agreement for Right-Of-Way Easement
J. Permit to Enter
K. Agreement to Demolish and Remove Improvements (ADRI)
L. Agreement to Demolish, Remove, and Reconstruct Improvements (ADRRI)
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LIST OF REFERENCES
A. Main Legal Basis
1) Republic Act No. 10752 dated March 07, 2016, entitled “An Act Facilitating
the Acquisition of Right-of-Way, Site or Location for National Government
Infrastructure Projects,” or “Right-of-Way Act,” which took effect on April 03,
2016
2) Implementing Rules and Regulations (IRR) of the RA No. 10752
C. DA Issuances
1) Administrative Order No. 38, Series of 2020 – Implementation Guidelines
on the Acquisition of Right-of-Way Site or Location
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ACRONYMS
ADRI Agreement to Demolish and Remove Improvements
ADRRI Agreement to Demolish, Remove and Reconstruct Improvements
BIR Bureau of Internal Revenue
BSP Bangko Sentral ng Pilipinas
CA Commonwealth Act
CADC Certificate of Ancestral Domain Claim
CGT Capital Gains Tax
CLOA Certificate of Land Ownership Award
CLUP Comprehensive Land Use Plan
CNC Certificate of Non-Coverage
DA Department of Agriculture
DAS Deed of Absolute Sale
DAR
DBM Agrarianand
Department of Budget Reform
Management
DENR Department of Environment and Natural Resources
DST Documentary Stamps Tax
DPWH Department of Public Works and Highways
ECC Environmental Compliance Certificate
EIA Environmental Impact Assessment
EIS Environmental Impact Statement
EMP Environmental Management Plan
EP Emancipation Patent
GAA General Appropriations Act
GFI Government Financial Institution
HLURB Housing and Land Use Regulatory Board
IPA Independent Property Appraiser
IA Implementing Agency
IO Implementing Office
IRR Implementing Rules and Regulations
LGU Local Government Unit
LMB Land Management Bureau
LMS Land Management Section
MOA Memorandum of Agreement
NAC Net Actual Consideration
NEP National Expenditures Program
NHA National Housing Authority
NHI National Historical Institute
NPAA Network of Protected Agricultural Areas
NWRB National Water Resources Board
OCT Original Certificate of Title
OSG Office of the Solicitor General
PAP Project-Affected Person
PCM Public Consultation Meeting
PD Presidential Decree
PNP Philippine National Police
RA Republic Act
ROWAP Right-of-Way Action Plan
ROW Right-of-Way
5
RCR ROW Completion Report
RP Republic of the Philippines
RFO
RPT Regional FieldTax
Real Property Office
RD Register of Deeds
RTC Regional Trial Court
TCT Transfer Certificate of Title
TOR Terms of Reference
TWG Technical Working Group
VAT Value Added Tax
WOP Writ of Possession
6
DEFINITION OF TERMS
Appraised Value means the market value of a property as estimated by an Independent
Property Appraiser or Government Financial Institution.
BIR Zonal Valuation is an approved zonal schedule of fair market values on real property
used by the Bureau Internal Revenue (BIR) as basis for the computation of internal revenue
taxes.
Cadastral Map is a comprehensive land recording of the real estate or real property’s limits
and boundary of a tract of land.
Capital Gains Tax (CGT) is tax imposed on the gains presumed to have been realized by the
seller from the sale, exchange, or other disposition of capital assets located in the Philippines,
including pacto de retro sales and other forms of conditional sale.
Documentary Stamps Tax (DST) is a tax on documents, instruments, loan agreements and
papers evidencing the acceptance, assignment, sale or transfer of a property incident thereto.
Emancipation Patent (EP) is a proof of ownership of the beneficiary of land reform law of
1972 that is issued by the Department of Agrarian Reform (DAR). It can be the subject of a
contract of sale in the exercise of one's right of ownership without violating the prohibitions
embodied in Section 27 of R.A. No R.A. No. 6657 (Comprehensive Agrarian Reform Law)
relative to sale or disposition of awarded lands for a period of ten (10) years from their award
because said provision of law solely applies to awarded lands.
Implementing Agency (IA) 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 DA, as a whole, is an IA.
7
Implementing Office (IO) refers to any of the units of the DA authorized to implement
mechanization and infrastructure projects.
Independent Property Appraiser (IPA) refers to an individual or firm that may be engaged
by the Implementing Office to provide property appraisal services, including estimates of the
market values of the property, affected by the ROW for a project.
Informal Settler refers to an individual or family that does not legally own the land which it
and its structure occupy.
Market Value means the price of what a willing buyer would pay a willing seller for a given
property or asset, assuming that both have a reasonable knowledge of the worth of the
property.
Parcellary Survey refers to the activities undertaken as part of the Detailed Engineering
Design of a project to define the proposed ROW alignment and limits, the affected lots showing
the name of the owners/claimants, lot numbers, and areas, and technical descriptions, and all
improvements within the ROW limits.
Project Proponent refers to the project recipient/beneficiary who proposed the project for
funding, who can be represented by the concerned implementing office/unit of the subject
project.
8
Property refers to the land affected by the ROW, and the structures, crops, and trees on the
land.
Real Property Tax (RPT) is tax paid on real property owned by an individual or other legal
entity.
Replacement Cost refers to the cost necessary to replace the structure affected by a ROW
with a similar asset based on current market prices, i.e., with no deduction for depreciation or
damage of the original asset.
Right-of-Way (ROW) means a part or the entirety of a property, site or location, with defined
physical boundaries, used or required by a government infrastructure project.
ROW Action Plan (ROWAP) refers to the document that defines the extent of the ROW to be
acquired for a project, including, among other things, cost estimates for acquiring land,
structures, crops, trees, and recommended compensation and entitlement package for owners
and project-affected persons (PAPs), implementation schedule, and impact and mitigating
measures for the ROW acquisition.
ROW Unit – refers to the unit that will facilitate the acquisition of ROW including the
conduct of social preparation, preparation of ROW Action Plan, parcellary and
entitlement survey, verification of documents, propose budgetary estimate, facilitate
payment of ROW, and processing and transfer of title for the ROW acquired.
Site or Location refers to the land or property where the agri-fishery infrastructure
project will be constructed/established.
Transfer Certificate of Title (TCT) is a document issued after the title is transferred to
someone from the first registered owner.
Transfer Tax is a tax imposed on the transfer of ownership or title to property from one
individual or entity to another.
9
I. INTRODUCTION
1.1. RATIONALE
To address this issue, RA No. 10752 “An Act Facilitating the Acquisition of Right-of-
Way, Site or Location for National Government Infrastructure Projects,” or “Right-of-
Way Act”, was created in 2016. This Act was enacted for the purpose of acquisition of
real properties needed as ROW for national government projects undertaken by any
department, bureau, office, commission, authority, or agency of the national
government.
National government projects, as defined by the Act, refer to all national government
infrastructure projects and their public service facilities, engineering works and service
contracts, including projects undertaken by government-owned and -controlled
corporations and all other projects involving private sector participation and all
necessary activities or projects that are intended for public use and purpose.
RA 10752 repealed the previous ROW Act (RA 8974) which aims to fast track and to
simplify negotiations for ROW acquisition through offering just and attractive
compensation prices to the property owners. It enables IAs to quickly adopt a market-
based price without fear of audit disallowance, while ensuring that the rights of
property owners and PAPs are duly protected. Moreover, as provided in Section 10 of
the Act, the government is authorized to provide adequate appropriations that will
allow the concerned IAs to acquire the required ROW, site or location for national
government infrastructure projects prior to the project implementation.
The IRR of RA 10752 was approved by an Inter- Agency Committee on the same
year it was created. In accordance with the provisions of Section 18 of its IRR, each
IA shall prepare and implement its own “Manual of Procedures for ROW Acquisition”
in order to provide clear, specific, and operational guidelines for the efficient
acquisition of ROW for infrastructure projects.
10
1.2. OBJECTIVES OF THE MANUAL
The DA has promulgated this Procedural Manual in compliance with Section 18 of the
IRR of RA 10752 which aims to guide its implementing offices in the process of
acquiring right-of-way prior to the implementation of agricultural and fisheries
infrastructure projects such as, but not limited to Farm-to-Market Roads, Irrigation
Facilities, Public Market, and Fish Ports.
The Manual serves as a working guide for DA offices in the proper implementation of
the ROW acquisition process for its infrastructure projects, pursuant to the provisions
of the Right-of-Way Act and its IRR. Specifically, the Manual aims to:
Pursuant to Section 18 of the RA 9184 IRR, each IA is mandated to prepare its own
Manual of Procedures for ROW Acquisition to provide clear, specific, and operational
guidelines for the efficient acquisition of ROW for its infrastructure projects.
11
In view of the above, this Memorandum Circular was developed to serve as the
standard reference of all its implementing offices. However, since its implementing
offices are likewise considered as an IA, they may opt to prepare their own Manual
customized to the particular requirements and systems for ROW acquisition.
Pursuant to Section 3 of the RA 10752, the term “national government projects” shall
refer to all national government infrastructure projects and its public service facilities,
engineering works and service contracts, including projects undertaken by the
government-owned and -controlled corporations, all projects covered by the RA No.
6957, as amended by RA No. 7718, otherwise known as the “Build-Operate-and-
Transfer Law”, and other related and necessary activities, such as site acquisition,
supply or installation of equipment and materials, implementation, construction,
completion, operation, maintenance, improvement, repair and rehabilitation,
regardless of source of funding. These projects shall include, but not limited to the
following:
12
Applying the rule of statutory construction known as “Ejusdem generis” where the
general words follow the enumeration of particular classes of persons or things, the
general words will be construed as applicable only to persons or things of the same
general nature or class of those enumerated.
On the other hand, the concept of public use or public purpose has expanded to
include utility, advantage, or productivity for the benefit of the public. “Public Use” as
a requisite for the valid exercise of the power of eminent domain refers to whatever is
beneficially employed for the general welfare. Public use has now been held to be
synonymous with “public interest”, “public benefit”, and “public convenience”
From the definition of public purpose above, it is clear that acquisition of private
property for ROW will only be applicable if there is some public advantage,
convenience, or benefit involved. It should be grounded on public interest and welfare
and not an unjustified interference with the property right/s of private persons.
In view of the above, this manual will cover agri-fishery infrastructure projects that will
remain in the ownership, operation, and management of the DA, as the implementing
agency, and sometimes the concerned Local Government Units (LGUs) and State
Universities and Colleges (SUCs) as the implementing partner of the DA. With these
authorizations vested in the government, the concept of public use, interest, benefit,
and convenience will still be served.
These agri-fishery infrastructure projects will include, but will not be limited to the
following:
1. DA Offices
a. Laboratory and Research Centers
b. Administrative Buildings
c. Quarantine and Checkpoint Centers
d. Training Centers
2. Commodity Transport Infrastructure
a. Farm-to-Market Road
b. Farm-to-Mill Road
3. Irrigation Facilities (national and communal)
a. Irrigation Dams
b. Irrigation Canals
c. Other appurtenant structures
4. Production/Marketing Facilities
a. Public Market
b. Fish Ports
13
c. Trading Centers/Posts
5. Other infrastructure projects that will be constructed, operated, and
managed by the DA with LGUs or SUCs as implementing partners.
The peculiarity of property conditions needed for the various infrastructure projects
could as well dictate varying types of acquisition. Depending on the intended use of
the project and its geographical location, property acquisition may either be:
1.3.2.2. LIMITATIONS
There are infrastructure projects being implemented by the DA that are given as grants
to certain farmers/irrigators associations and which are intended to benefit only the
grantee or a particular group of private individuals. In this case, the ownership,
operation, and management will be carried out by private individuals which may opt to
limit the use of grant facilities within its farmers members only. With this, the concept
of public use, interest, benefit, and convenience will no longer be applicable, thus,
these projects should not be covered by the law.
As part of the due diligence of the DA in implementing grant projects, IOs shall require
the recipients (farmers or irrigators association) to acquire the property for the
construction of the project through donation or sale or execute a Usufruct Agreement
with the property owner for a period not less than the service life of the project.
With accordance to Section 4 of RA 10752 and its IRR, the manual provides the
detailed procedures on acquisition of ROW for agricultural and fisheries infrastructure
projects through the following regular modes of acquisition:
14
§ Donation,
§ Negotiated Sale, or
§ Expropriation Proceedings.
In cases of other modes of acquisition not stated herein but are mandated by existing
laws, applicable provisions of such laws shall be carried out while ensuring compliance
to the provisions of the Right-of-Way Act.
1.3.4. APPROPRIATIONS
As provided by Section 15 of the RA 10752 and its IRR, the government shall provide
adequate appropriations that will allow the concerned IAs/IOs to acquire the required
right-of-way, site or location for national government infrastructure projects in advance
of the project implementation. In order to conduct all necessary activities related to the
ROW acquisition, corresponding appropriations shall be provided which shall include,
but is not limited to the following:
15
II. ROW ACQUISITION PROCESS
While being consistent with the provisions of RA 10752, the procedures
stipulated herein are customized to the structure and system of implementation
of the DA as the Implementing Agency.
The overall process flow for the acquisition of ROW for infrastructure projects
consists several processes as expressed in Figure 1. While there are several
modes of acquisition available, only the three (3) regular modes of acquisition
were considered in the overall process flow as shown.
ROWAP contains the estimated budget for all ROW acquisitions costs including
inflation and contingencies, schedule of implementation, and the areas to be acquired.
This procedure is one of the main features of the ROW Process which helps ensure
that ROW acquisition costs are appropriated with necessary budget for
implementation. Shown in Figure 2 is the Process Flow for the Preparation of ROWAP.
To ensure that projects for implementation are shovel-ready, the following timeline is
recommended:
Timeline Activities
1
Cost estimates may be prepared by in-house appraisers/ABEs
2
Cost estimates shall be prepared/reviewed/certified by GFI/IPAs
16
Figure 1. Overall Process Flow for ROW Acquisition
17
Identify LAND APPRAISAL
Project Parcellary Survey
BIR Zonal Values
Market Value
ROW
Action Plan
18
(5) Preparation o List of Affected Property • Right-of-Way Action Plan
of ROWAP Owners (ROWAP) duly certified
Report o Validated Proof of Ownership by the Head of ROW Unit
o Proposed Mode of Acquisition and Head of the IA/IO
o Parcellary Survey Report
o Matrix for Cost Estimates for
Land
o Matrix for Cost Estimates for
Structures/Crops/ Trees
According to Section 5 of the IRR of RA 10752, the IA may explore the mode of
donation of the needed portion or whole of the affected property, i.e., lots with or
without improvements by the property owner concerned which may be a private
individual/corporation or a government agency/corporation.
If the property owner agrees to donate the property to be acquired by the IA as ROW,
a deed of donation shall immediately be prepared. The deed of donation shall be
simple and unconditional and contain clauses to the effect that the donation is made
not to defraud the donor’s creditors, and that the donor has, if necessary, reserved for
himself enough property for his family’s subsistence, sustenance and support in case
the donor is a private individual.
The donation must be accepted by the IA, which shall be indicated in the deed.
The IA shall pay the documentary stamp tax, transfer tax and registration fees, while
the donor shall pay any unpaid real property tax.
19
Other applicable
Project
modes of
Identify feasible?
aquisition No Yes
Project Site
Conduct Pre-
feasibility Study
Parcellary
Survey
List of Owners
No
20
Table 2. Procedures, Documents, and Timelines for ROW Acquisition through Donation
21
(7) Payment of o Parcellary Survey Report • Tax Clearance 15 days after
Taxes and o Right-of-Way Action Plan • Tax Declaration notarization of
Fees (ROWAP) Deed of
o Notarized Unconditional Donation
Deed of Donation
(8) Transfer of o Notarized Unconditional • Transfer Certificate of Depending on
Title Deed of Donation Title (TCT) in the the processing
o Tax Clearance name of the Republic timeline of the
o Tax Declaration of the Philippines Registry of
o Authenticated Proof of represented by the Deeds
Ownership Head of IO/IA
(9) Clearing of o Notarized Unconditional - Starts after
ROW and Deed of Donation with notarization of
Project permit to enter and Deed of
Implementation implement project Donation and
o Agreement to Demolish ends depending
and Remove Improvements on the
(ADRI) implementation
schedule
indicated in the
contract
To determine the price offer, the IO may procure the technical services of a GFI or an
IPA. The IO may use the GFI/IPA appraisal reports, as duly validated, as one of bases
of IO’s price offer for negotiated sale. The IO is encouraged to develop its in-house
personnel capable of validating appraisal reports.
Prior to the conduct of any legal procedures for the sale of the property, the
ROW Unit should have already conducted verification, validation, and
authentication of the property claims involved in the ROW acquisition.
22
For replacement costs of structures and improvements, owners who do not
have legally organized rights to the land may still be considered eligible to avail
the compensation, provided that he/she is:
a. a Filipino citizen;
b. not a professional squatter; and
c. do not own any real property or any housing facility in other areas.
In case of untitled lands, the Owner will be compensated using the same
procedures above, provided that Owner shall present the following:
a. Tax Declaration showing his and his predecessors’ open and continuous
possession of the property for at least thirty (30) years;
b. Certification from the DENR that the land is alienable and disposable;
and
c. Other documents that may show proof of ownership.
23
Other applicable
Identify modes of
Project
Project Site acquisition No feasible? Yes
Conduct of Pre-
feasibility Study
Parcellary Survey
List of Owners Yes
No
With Agree to Yes Execute Deed of
Determine Issue Notice of Agree to Issue Offer Letter
Property Owners
Structure/ Prepare RAP Price Absolute Sale
Taking Sell? Imprvts?
(30-day validity)
(With/out ADRI)
Yes Offer?
No RAP
No
Other applicable
modes of
acquisition
Permit to Enter
ADRI
Notice of Clearing
Project
Clear ROW
Implementation
24
Table 3. Procedures, Documents, and Timelines for ROW Acquisition through Negotiated Sale
(1) Meeting with o Letter of Intent • List of Affected Property Within 30 days
Project o Board Resolution Owners upon availability
Proponents/ o Endorsement Letter/s • Validated Proof of of the ROW Unit
Local Officials o Map of Service Area Ownership - Institutional
o Utilization Proposal • Proposed Mode of Development
o Proof of Ownership of Acquisition (Negotiated Officer (IDO)
Land Sale)
(2) Initiation of o List of Affected • Conforme from Property
Negotiation Property Owners Owner for the
o Validated Proof of negotiation
Ownership
o Notice of Taking
(3) Conduct of o List of Affected • Parcellary Survey Within 30 days
Ground/ Property Owners Report after conduct of
Parcellary o Validated Proof of meeting with
Survey Ownership local officials
o Technical descriptions and upon
of affected lots availability of
o Cadastral maps of Surveyors
affected land
(4) Validation of o List of Affected • Right-of-Way Action Within 30 days
ROWAP Property Owners Plan (ROWAP) duly after conduct of
o Validated Proof of certified by the Head of Ground/
Ownership ROW Unit and Head of Parcellary
o Proposed Mode of the IA/IO Survey and
Acquisition upon availability
o Parcellary Survey of GFI/IPA
Report
o Matrix for Cost
Estimates for Land
o Matrix for Cost
Estimates for
Structures/Crops/
Trees
o Subdivision Plan duly
approved by DENR-
LMB (if portion of lot to
be donated)
o Pre-feasibility study
report (for structures to
be demolished)
(5) Negotiation o Right-of-Way Action • Signed Deed of Within 30 days
with the Plan (ROWAP) Absolute Sale from the
Property o Offer Letter • Authenticated proof of issuance of
Owner o Draft Deed of Absolute ownership Offer Letter
Sale • At least 2 Valid
Identification Cards
(6) Execution of o Signed DAS • Notarized DAS 7 days after the
Deed of o Authenticated proof of approval of the
Absolute Sale ownership Offer Letter
(DAS) o At least 2 Valid
Identification Cards
25
(7) First and Initial o Notarized DAS • Receipt of 50% 5 days after
Payment to the o Authenticated proof of payment for land notarization of
Property ownership • Receipt of 70% DAS
Owner o At least 2 Valid payment for
Identification Cards structures/crops/trees
(8) Payment of o Parcellary Survey • Tax Clearance 30 days after
Taxes and Report • Tax Declaration the first and
Fees o Subdivision Plan initial payment
o Notarized DAS CGT payment
o Authenticated proof of done within 30
ownership days after initial
o At least 2 Valid payment
Identification Cards
DST payment
done within 5
days after the
closing of the
month when the
Deed of Sale is
notarized
(9) Transfer/ o Notarized DAS Transfer Certificate of Title Depending on
Annotation of o Authenticated Proof of (TCT)/Annotation at the the processing
Title Ownership timeline of the
o At least 2 Valid back of the Tile (in case of Registry of
Identification Cards segregation) in the name of Deeds
o Tax Clearance the Republic of the
o Tax Declaration
Philippines represented by
the Head of IO/IA
26
appropriate IA, through the Office of the Solicitor General (for national agencies), the
Office of the Government Corporate Counsel (for government-owned and –controlled
corporations), or their deputized government or private legal counsel, shall initiate the
expropriation proceeding by filing a verified compliant before the proper court under
the following guidelines:
a) Upon the filing of the compliant or at any time thereafter, and after due notice
to the defendant, the IA 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 BIR, Issued not more than three
(3) years prior to the filing of the expropriation complaint, subject to
Section 7(c) of the IRR of RA 10752;
2. The replacement cost at the current market value of the improvements
and/or structures as determined by:
a. the IA;
b. a GFI with adequate experience in property appraisal; and
c. an IPA accredited by the BSP
3. The current market value of crops and trees located within the property
as determined by the government financial institution or an independent
property appraiser to be selected as indicated in Section 6 of the IRR
of RA 10752.
Upon compliance with the above guidelines, the court shall immediately issue
an order to take possession of the property to the IA which shall start the
implementation of the project.
If within seven (7) working days after the deposit to the court of the amount
equivalent to the sum under items (a)(1) to (a)(3) of Section 7 of the IRR of RA
10752, and the court has not issued to the IA a writ of possession for the
affected property, the counsel of the IA shall immediately seek from the court
the issuance of the writ of possession, The court shall immediately issue the
writ of possession ex parte; no hearing shall be required.
The court shall release the said amount to the owner upon presentation of
sufficient proofs of ownership.
27
equivalent to the sum under items (a)(1) to (a)(3) of Section 7 of the IRR of RA
10752 to the court, for benefit of the person to be adjudged in the same
proceeding as entitled thereto.
Upon compliance with the above guidelines, the court shall immediately issue
to the IA an order to take possession of the property.
If within seven (7) working days after the deposit with the court of the amount
equivalent to the sum under items (a)(1) to (a)(3) of Section 7 of the IRR of RA
10752, the court has not issued to the IA a writ of possession for the affected
property, the counsel of the IA shall immediately seek from the court the
issuance of the writ of possession.
The court shall release the said amount to the person adjudged in the same
expropriation proceeding as entitled thereto.
d) With reference to item (a)(1) of Section 7 of the IRR of RA 10752, in case the
completion of a government infrastructure project is 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 IA shall use the BIR zonal value and land classification of similar
lands within adjacent vicinity as the basis for the valuation.
e) In any of the cases in items (a) to (d) of Section 7 of the IRR of RA 10752, upon
its receipt of the writ of possession of the property and start the implementation
of the project.
28
f) In the event that the owner of the property contests the IA’s proffered value, the
court shall determine the just compensation to be paid the owner within (60)
days from date of filing of the expropriation case. When the decision of the court
becomes final and executory, the IA 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 the titles of the
property to the Republic of the Philippines through expropriation proceeding,
the IA shall pay the DST, transfer taxes under RA No. 7160 and registration
fees, while the owner shall pay the CGT, any unpaid real property tax, and all
other applicable taxes under the law.
The owner shall pay the CGT to the BIR within thirty (30) days after the
judgment in the expropriation case had become final and executory. The IA
shall also pay the DST within five (5) days after the close of the month when
the judgment in the expropriation case had become final and executory.
29
Identify
Project Site
Due diligence
analysis on the
property Court Order
BIR Zonal Valuation
RAP
Seek immediate
issuance of WOP
Release/Deposit to
Prepare RAP
Court's Clerk
No
Notice of Check
Deposit
No
Court Order
BIR Zonal Valuation
RAP
Project
Owner Yes Implementation
agrees to
compensati
on?
No
3 Commisioner's
Report
30
Table 4. Procedures, Documents, and Timelines for ROW Acquisition through Expropriation
(1) Due Diligence o Report on the failure of • Proposed Mode of 30 days after
Analysis on negotiation/Report on Acquisition declaration of
Subject Conflicting Claims/Report on (Expropriation) failure/ non-
Property Non-Claim feasibility of
o Other applicable reports negotiation
where negotiation will not be
feasible
(2) Initiation of o List of Affected Property • Complaint
Expropriation Owners Letter/Request for
Proceedings o Validated Proof of Ownership Expropriation to the
o Validated report on non- proper court
feasibility of negotiation
(3) Issuance and o List of Affected Property • Check amounting to Depending on
Deposit of Owner/s (Clerk of the proper 100% of value of land the processing
Check court in case the land has no and replacement timeline of the
claimant) costs for Court
structures/crops/
trees
(4) Determination o 3 commissioners’ report on • Court Order to Pay Depending on
of Just just compensation the processing
Compensation o timeline of the
(in case the Court
property
owner does
not agree on
price offer)
(5) Payment to o Court Order to Pay Owner • Receipt of 100% 7 days upon
the Property o Authenticated proof of payment for land issuance of
Owner ownership and/or Court Order to
o At least 2 Valid Identification structures/crops/trees Pay
Cards
o Tax Declaration
o Tax Clearance
(6) Filing of o Receipt of 100% payment for • Writ of Possession 7 days upon
Urgent Ex- land and/or structures/crops/ (WOP) payment and
Parte Motion trees filing of urgent
o ex-parte
motion
(7) Payment of o Parcellary Survey Report • Tax Clearance 30 days after
Taxes and o Subdivision Plan • Tax Declaration the first and
Fees o Notarized DAS initial payment
o Authenticated proof of
ownership CGT payment
- At least 2 Valid Identification done within 30
Cards days after
initial payment
DST payment
done within 5
days after the
closing of the
month when
the Deed of
Sale is
notarized
31
(8) Transfer of o Notarized DAS Transfer Certificate of Depending on
Title o Authenticated Proof of Title (TCT) in the name of the processing
Ownership timeline of the
o At least 2 Valid Identification the Republic of the Registry of
Cards Philippines represented Deeds
o Tax Clearance by the Head of IO/IA
o Tax Declaration
(9) Clearing of o Notarized DAS with permit to - Starts after
ROW and enter and implement project notarization of
Project o Agreement to Demolish and Deed of
Implementatio Remove Improvements Donation and
n (ADRI) ends
depending on
the
implementatio
n schedule
indicated in the
contract
According to Section 9 of the IRR of RA 10752, instead of being paid with the money
value of his property, the owner of a property needed for a ROW of a national
government project may request the government to exchange or barter an old
abandoned government road or other government property near the project with his
said property. The IA may favorably consider this mode, subject to the provisions of
relevant laws and the following conditions:
*If values of properties to be exchanged are not comparable, the size of the
abandoned road/government lot to be exchanged should be adjusted, in
such a way that their values would become almost equivalent.
32
*If the Deed of Donation states that the property shall be reverted to its
owner/heirs once the government lot is abandoned, then the said property
will not be eligible for exchange, unless the former owners concur with the
arrangement.
** In case of Deed of Absolute, IO shall inform the former owner that his
property will be disposed, and that he, as the original owner, has the first
priority to re-acquire said property (as provided in Section 9 of RA 10752-
IRR). If he decides to re-acquire the said property, then it would become
ineligible for exchange. If he declines, then a waiver should be prepared to
indicate so.
d. The private property owner and the IA which are parties to the exchange or
barter agreement shall be subject to applicable CGT and DST in accordance
with BIR rules and regulations.
33
Notarized DAS
Tax Declaration
Tax Clearance Transfer Title
Proof of Ownership
Subdivision Plan
Clear ROW
No
No Project
Notarized Deed of Exchange
Approval from the OP
Implementation
Approved Parcellary Survey
Eligible for Subdivision Plan
Exchange
? Yes
Identify
Project Site
Endorse Deed
Exchange to Office
Check Deed of Prepare RAP of the President
Parcellary Survey Check Deed of
Sale for approval
TCTs Donation
Deed of Conveyance
BIR Zonal Values
RAP land values
Yes Yes
No No RAP
34
Table 5. Procedures, Documents, and Timelines for ROW Acquisition through Exchange
(1) Meeting with o Letter of Intent • List of Affected Property Within 30 days
Project o Board Resolution Owners upon availability
Proponents/ o Endorsement Letter/s • Validated Proof of of the ROW Unit
Local Officials o Map of Service Area Ownership - Institutional
o Utilization Proposal Development
o Proof of Ownership of Officer (IDO)
Land
(2) Due Diligence o List of Affected • Proposed Mode of
Analysis on Property Owners Acquisition (Exchange
Subject o Validated Proof of of Properties)
Property Ownership/Deed of
Conveyance
(3) Initiation of o List of Affected • Conforme from Property
Exchange Property Owners Owner for the exchange
o Validated Proof of
Ownership/Deed of
Conveyance
o Draft Easement
Agreement
(4) Conduct of o List of Affected • Parcellary Survey Within 30 days
Ground/ Property Owners Report after conduct of
Parcellary o Validated Proof of meeting with
Survey Ownership local officials
o Technical descriptions and upon the
of affected lots availability of the
o Cadastral maps of Surveyors
affected land
(5) Preparation of o List of Affected • Right-of-Way Action Within 30 days
ROWAP Property Owners Plan (ROWAP) duly after conduct of
Report o Validated Proof of certified by the Head of Ground/
Ownership ROW Unit and Head of Parcellary
o Proposed Mode of the IA/IO Survey and
Acquisition upon the
o Parcellary Survey availability of the
Report GFI/IPA
o Matrix for Cost
Estimates for Land
o Matrix for Cost
Estimates for
Structures/Crops/
Trees
o Subdivision Plan duly
approved by DENR-
LMB (if portion of lot to
be donated)
o Pre-feasibility study
report (for structures to
be demolished)
(6) Negotiation for o Right-of-Way Action • Signed Easement Within 30 days
Exchange Plan (ROWAP) Agreement from the
o Matrix for Cost • Authenticated proof of negotiation for
Estimates for ownership the exchange of
properties
35
Lands/Properties to • At least 2 Valid
exchanged Identification Cards
o Easement Agreement
DST payment
done within 5
days after the
closing of the
month when the
Deed of Sale is
notarized
36
4.2.2. ACQUISITION OF ROW THROUGH EXECUTION OF QUIT CLAIM
a. Follow the other modes of acquisition enumerated in the Act and IRR, if the
landowner is not the original patent holder and any previous acquisition of
said land is not gratuitous title; or
b. Follow the provisions under CA No. 141 regarding acquisition of ROW on
patent lands, if the landowner is the original patent holder or the acquisition
of the land from the original patent holder is through gratuitous title.
With respect to paragraph (b) above, under the provisions of CA No. 141, particularly
Section 112, a ROW strip not exceeding 20 meters in width within the land acquired
under that law is reserved by the government for public use with damaged to
improvements only. CA No. 141 was amended by the Presidential Decree (PD) No.
635, dated 07 January 1975, which increased the ROW strip reserved for public use
to width not exceeding 60 meters.
If the government decides to exercise its right to use the ROW strip reserved for public
use within the land acquired under CA No. 141, the owner is required to execute a
quit claim. The IA shall then take possession of the property affected by the ROW
without any compensation to the owner for the land, but shall pay the owner the cost
of the damages for the improvements within that land equivalent to their replacement
cost as determined in accordance with Section 6.6 of the IRR of RA 10752. If the
owner refuses or is unable to issue a quit claim, the concerned government officials
responsible for the implementation of projects are authorized to immediately take
possession of the portion of property subject of the lien, as the need arises and upon
due notice to the owner. This is without prejudice to the IA resorting to appropriate
proceeding to acquire immediate possession of the property.
PD No. 1381 also allows the government to utilize the reserved ROW strip for
temporary buildings for Resident and/or Project Engineers needed in the prosecution
of an infrastructure project. Once the infrastructure project is completed and the
temporary buildings used by the Resident/Project Engineers are no longer needed,
the possession of the portion of property used for the building shall revert to the title
holders.
The IA shall extend financial assistance to property owner in accordance with the
provisions of Executive order No. 1035, series of 1985.
37
Other appicable Yes
No Project
modes of
acquisition Feasible?
Identify
Project Site
Conduct Pre-
Parcellary Survey Report
TCTs
feasibility Study
Parcellary Deed of Conveyance
Survey BIR Zonal Values
RAP land values Yes
List of Owners
Figure 7. Process Flow for ROW Acquisition through Execution of Quit Claim
38
Table 6. Procedures, Documents, and Timelines for ROW Acquisition through Quit Claim
(1) Meeting with o Letter of Intent • List of Affected Property Within 30 days
Project o Board Resolution Owners upon availability
Proponents/ o Endorsement Letter/s • Validated Proof of of the ROW Unit
Local Officials o Map of Service Area Ownership - Institutional
o Utilization Proposal Development
o Proof of Ownership of Officer (IDO)
Land
(2) Due Diligence o List of Affected • Proposed Mode of
Analysis on Property Owners Acquisition (Exchange
Subject o Validated Proof of of Properties)
Property Ownership/Deed of
Conveyance
(3) Initiation of o List of Affected • Conforme from Property
Quit Claim Property Owners Owner for the exchange
o Validated Proof of
Ownership/Deed of
Conveyance
o Notice of Taking
(4) Conduct of o List of Affected • Parcellary Survey Within 30 days
Ground/ Property Owners Report after conduct of
Parcellary o Validated Proof of meeting with
Survey Ownership local officials
o Technical descriptions and upon the
of affected lots availability of
o Cadastral maps of Surveyors
affected land
(5) Validation of o List of Affected • Right-of-Way Action Within 30 days
ROWAP Property Owners Plan (ROWAP) duly after conduct of
o Validated Proof of certified by the Head of Ground/
Ownership ROW Unit and Head of Parcellary
o Proposed Mode of the IA/IO Survey and
Acquisition upon the
o Parcellary Survey availability of
Report GFI/IPA
o Matrix for Cost
Estimates for Land
o Matrix for Cost
Estimates for
Structures/Crops/
Trees
o Subdivision Plan duly
approved by DENR-
LMB (if portion of lot to
be donated)
o Pre-feasibility study
report (for structures to
be demolished)
(6) Execution of o Quit Claim Deed • Signed and Notarized 7 days after
Quit Claim o Authenticated proof of Quit Claim Deed Approval of
ownership ROWAP
o At least 2 Valid
Identification Cards
39
(7) First and Initial o Notarized Quit Claim • Receipt of 70% 5 days after
Payment to the Deed payment for notarization of
Property o Authenticated proof of structures/crops/trees deed
Owner ownership
o At least 2 Valid
Identification Cards
(8) Clearing of o Notarized Quit Claim - Starts after
ROW and Deed notarization of
Project o Agreement to Deed of
Implementation Demolish and Remove Donation and
Improvements (ADRI) ends depending
on the
implementation
schedule
indicated in the
contract
(9) Second and o Notarized Quit Claim • Receipt of remaining 5 days after
Final Payment Deed 30% payment for completion of
to the Property structures/ crops/trees ROW Clearing
Owner
Under this mode, a ROW easement agreement shall be executed by the property
owner and the IA whereby the former will grant the latter the right to use the affected
portion of the lot as ROW, but the owner retains ownership of that portion of the lot.
The IA shall pay the owner the value of that portion of the lot based on the existing
zonal valuation declared by the BIR. In addition, the IA shall compensate the property
owner the replacement cost of any improvements and structures on the land affected
by the ROW in accordance with Section 6.6 of the IRR of RA 10752. Entry by the IA
to the acquired property may be affected upon full payment of the value of the property.
The IA may engage the services of an IPA to determine the amount of the easement
to be paid. The mode of ROW acquisition through easement agreement may also be
used in government agency-to-agency transactions, including those involving
government-owned and controlled corporations.
The IA shall cause the registration of all ROW easement agreement with the Register
of Deeds concerned within ten (10) days from the date of their execution. The Register
of Deeds shall annotate on the respective titles the agreements within seven (7) days
from receipts thereof.
40
41
Table 7. Procedures, Documents, and Timelines through Easement Agreement
(1) Meeting with o Letter of Intent • List of Affected Property Within 30 days
Project o Board Resolution Owners upon approval
Proponents/ o Endorsement Letter/s • Validated Proof of of NEP
Local Officials o Map of Service Area Ownership
o Utilization Proposal
o Proof of Ownership of
Land
(2) Due Diligence o List of Affected • Proposed Mode of
Analysis on Property Owners Acquisition
Subject o Validated Proof of a) Subsurface
Property Ownership/Deed of Easement
Conveyance b) Easement of
o Technical description Aqueduct
of site or location to be c) Easement
acquired (depth ≥≤50 Agreement for
meters) Lands under
Ancestral Domain
(3) Initiation of o List of Affected • Conforme from Property
Easement Property Owners Owner for the exchange
o Validated Proof of
Ownership/Deed of
Conveyance
o Notice of Taking
(4) Preparation of o List of Affected • Right-of-Way Action Within 30 days
ROWAP Property Owners Plan (ROWAP) duly after conduct of
Report o Validated Proof of certified by the Head of Ground/
Ownership ROW Unit and Head of Parcellary
o Proposed Mode of the IA/IO Survey
Acquisition
o Parcellary Survey
Report
o Matrix for Cost
Estimates for Land
o Matrix for Cost
Estimates for
Structures/Crops/
Trees
o Subdivision Plan duly
approved by DENR-
LMB (if portion of lot to
be donated)
o Pre-feasibility study
report (for structures to
be demolished)
(5) Execution of o Easement Agreement • Signed and Notarized 7 days after
Easement o Authenticated proof of Easement Agreement Approval of
Agreement ownership ROWAP
o At least 2 Valid
Identification Cards
42
(6) First and Initial o Notarized Easement • Receipt of 70% 5 days after
Payment to the Agreement payment for notarization of
Property o Authenticated proof of structures/crops/trees deed
Owner ownership
o At least 2 Valid
Identification Cards
(7) Annotation of o Notarized Easement • Proof of Ownership of Depending on
Agreement at Agreement the land with annotation the processing
the Back of the o Authenticated Proof of of the agreement at the timeline of the
Title Ownership back Registry of
o At least 2 Valid Deeds
Identification Cards
o Tax Clearance
o Tax Declaration
(8) Clearing of o Notarized Easement - Starts after
ROW and Agreement notarization of
Project o Agreement to Deed of
Implementation Demolish and Remove Donation and
Improvements (ADRI) ends depending
on the
implementation
schedule
indicated in the
contract
(9) Second and o Notarized Easement • Receipt of remaining 5 days after
Final Payment Agreement 30% payment for completion of
to the Property structures/ crops/trees ROW Clearing
Owner
The IA shall duly consult with and notify the affected property owners of any acquisition
of subsurface right-of-way needed for the infrastructure projects.
If the national government project involves underground works within a depth of fifty
(50) meters from the surface, the IA may undertake the mode of acquisition in the
following order:
43
b. Offer to acquire from the property owner the affected portion of the land,
including the affected structures, improvements, crops and trees therein in
accordance with the provisions of the Act.
To assist the IA in determining (a) the appropriate price offer for the perpetual
easement of the ROW under Section 11a of the IRR of RA 10752 or (b) the appropriate
price offer for the entire affected land including structures, improvement, crops and
trees under Section 11b of the IRR of RA 10752, the IA may engage the services of a
GFI or an IPA, in accordance with the procedure provided in Section 6 of the IRR of
RA 10752. The easement price under Section 11a of the IRR of RA 10752 shall be
twenty percent (20%) of the market price of the land.
The IA shall follow the other rules for negotiated sale provided in Section 6 of the IRR
of RA 10752.
This mode applies when there is a need to make the water flow through an intervening
land property to make use of the said water for irrigation or improvement. Figures 8
shows the process flow of acquiring ROW using the Easement Agreement. According
to Chapter 2, Section 2, Article 640 of the Civil Code, compulsory easements for
drawing water or for watering can be imposed only for reasons of public use in favor
of a town or village, after payment of the proper indemnity, provided that the IA/IO will:
a. Prove that the water can be disposed and sufficient use for what it is intended;
b. Propose the Right-of-Way in the most convenient and the least burden to the
property owner; and
c. Compensate the owner of servient state in the manner determined by the laws
and regulations.
Moreover, according to Articles 644-647 of the Civil Code, the following shall apply:
44
c. For legal purposes, the easement of aqueduct shall be considered as
continuous and apparent, even though the flow of water may not be continuous
as it depends on the need the dominant estate.
d. One who for the purpose of irrigating or improving his estate, has to construct
a stop lock or sluice gate in the bed of the stream from which the water is to be
taken, may demand that the owners of the banks permit its construction, after
payment of damages, including those caused by the new easement to such
owners and to the other irrigators.
With accordance to Section 31 of the Water Code of the Philippines and its amended
IRR, all easements of the public use prescribed for the banks or rivers and the
shores of seas and lakes shall be reckoned from the line reached by the highest
flood which does not cause inundation or the highest equinoctial tide whichever is
higher. Any construction or structure that encroaches into such easement shall be
ordered removed by the Board in coordination with DPWH, LGU or appropriate
government agency.
Pursuant to Section 9, Article III of the 1987 Constitution, DPWH issued Department
Order (D.O.) No. 43 – “Guidelines for Right-of-Way (ROW) Acquisition and Payment
of Ancestral Domains affected by the Implementation of National Government
Infrastructure Projects” stating that private property shall not be taken for public use
without just compensation, and the recognized rights of Indigenous Cultural
Communities (ICC) or Indigenous Peoples (IP) under Republic Act No. 8371 (R.A. No.
8371), otherwise known as "The Indigenous Peoples Rights Act (IPRA) of 1997"
As stated in the D.O. No. 43, easement of right-of-way is the most convenient and
practicable mode for the acquisition of ancestral domains among the modes of ROW
acquisition mentioned in Republic Act No. 10752. Under the mode of acquiring
easement of right-of-way, upon execution of ROW easement agreement, the owner
will grant the Implementing Agency the right to use the affected portion of the lot as
ROW but the owner retains the ownership thereof, which is consistent/compatible with
the nature of the ancestral domains as community property of ICCs and IPs that cannot
be sold, disposed or destroyed, and guarantees their right to return to their ancestral
domains in case the Implementing Agency will no longer need the land for Agri-
Infrastructure Projects.
45
4.3. Special Cases
In case of mortgaged properties which may still not be available upon the
preparation of Deed of Absolute Sale, the release of the property from mortgage
is required before the execution of a Negotiated Sale. The following procedures
should apply:
1. Obtain copy of mortgage documents; mortgage property should be
settled first by the owner to proceed for negotiation. Then, prior to
issuance of letter offer or within 30 days from issuance of letter offer.
2. Otherwise, proceed to Expropriation Proceedings.
1. Tax Declaration for Land, with Official Receipt (OR), from the Office of
the Assessor showing his and his predecessors’ open and continuous
possession of the property for at least thirty (30) years;
2. Certification from the DENR-LMB that the land is alienable and
disposable.
3. Other documents that may show proof of ownership.
In case of failure of the apparent owner to establish ownership over the land,
but where improvements are introduced thereon, consider the apparent
property owner for compensation for the improvements subject to Section 6.8
of the IRR of RA 10752.
In case that the owner of the lot to be acquired is be found to be deceased, the
heirs shall be required to consolidate their ownership of the property either thru
court proceedings or through an extra-judicial settlement subject to the
provisions of Rule 74 of the Rules of Court. Once consolidated, ROW
46
acquisition may proceed through either of the available modes depending on
the interest and decision of the heirs. Obtaining a copy of the Court Proceedings
or Extra-Judicial Settlement is necessary.
47
4.3.7. ACQUISITION OF LANDS WHEN THERE ARE NO CLAIMANTS
ROW acquisition shall only commence after the public notification and the land
still appears to have no claimant.
48
professional squatters or squatting syndicates. “Professional Squatters” shall
then refer to:
To complement the four criteria mentioned in the first paragraph of its Section 6.8 of
the IRR of RA 10752, the owner and occupant of the structure or improvement
must show a proof of ownership of the structure/improvement, e.g., a
certification from the Barangay concerned.
With accordance to Section 6.11 of the IRR of RA 10752, also accordance with
Section 5 of the Act, the provisions of Section 6.1 of the IRR of RA 10752 shall
also apply to outstanding claims for right-of-way payments, except that the
amount to be the price at the time of taking of the property, including legal
interest until fully paid, subject to the transitory provision in Section 19 of the
IRR of RA 10752.
49
V MANAGEMENT OF ROW
5.1 Preparation of ROW Acquisition Completion Report
Once the acquired lands have been cleared of all structures, other
improvements, and utilities, the ROW Status Report shall be prepared within
30 days, by the ROW and noted by the Head of the implementing office. The
ROW Unit shall archive the report in the ROW database including the following
attachments:
a. ROWAP
b. Parcellary Survey Report
c. TCTs in the name of the Government
d. Other Attachments such as court proceedings (for expropriated
properties, copies of the ADRI, and other pertinent documents)
50
In case of informal settling within acquired ROWs, the following activities may
be undertaken:
51
VI PROCEDURES FOR SUB-PROCESSES
6.1. Appraisal Services of GFIs and IPAs
As provided in Section 6.2 of the IRR of R.A. 10752, the IO may engage the services
of either a GFI or an IPA in determining the appropriate price offer for the acquisition
of ROW through negotiated sale.
To determine the appropriate price offer for the acquisition of ROW through
negotiated sale, the IO may engage the services of either of the following,
taking into consideration efficiency, economy and the need of the IO to facilitate
the implementation of government infrastructure projects:
The IPA shall be procured by the IO under the provisions of RA No. 9184,
otherwise known as the “Government Procurement Act,” and its IRR pertaining
to consulting services.
For this purpose, the BSP and the professional association of appraisers shall
provide their lists of IPAs upon request of the IO. The BSP and the professional
association of appraisers shall not be accountable for any acts of the IPAs
stated in the list.
The IO may use the appraisal reports of the GFI or IPA as one of the bases of
the IO’s price offer for negotiated sale, consistent with the standards for
assessment under Section 12 of the IRR. For this purpose, the IO is
encouraged to develop its in-house personnel capable of validating appraisal
reports.
52
6.1.2. TERMS OF REFERENCE FOR GFIS AND IPAS
As basis for the engagement of the services of a GFI or IPA, the IO shall
prepare the TOR for the services. In preparing the TOR, the IO may consult the
GFI in case of services to be provided by the latter. A sample TOR is shown in
Annex X.
a. Engagement of GFIs
If the IO decides to engage the services of a GFI, the IO shall enter into a
MOA with the GFI in accordance with the following conditions:
§ The GFI is capable and has adequate experience to undertake the
property appraisal services required by the IO;
§ The GFI must actually undertake the appraisal by administration
using its own in-house manpower and resources; and
§ The IO/shall pay the GFI an appropriate fee for its appraisal services
in accordance with the terms of the MOA.
b. Procurement of IPAs
An IPA must meet the following criteria to qualify for the consulting services:
53
6.1.3. SCOPE, LEVEL, AND BASIS OF APPRAISAL
Scope
Appraisal shall cover the three elements of real property needed for ROW: (a)
Land, (b) Structures, and (c) Crops and Trees. Based on RA 10752 and its
IRR, for negotiated sale, the appraisal shall consider the following aspects of
valuation of the property:
Basis
Aside from the DPWH Standards for Estimating Civil Works, the engaged or
hired GFI/IPA may as well use applicable provisions of the valuation standards
adopted by the Professional Regulatory Board of Real Estate Service under the
Professional Regulation Commission (PRC).
To facilitate the determination of the market value of the property/land for land
appraisal or assessment for negotiated sale, the following relevant standards
shall be observed:
§ The classification and use of land based on the latest land use plan
and/or zoning ordinance of the LGU concerned;
§ The development cost for improving the land based from the records and
estimates of similar or comparable lands of the LGU Assessor’s Office,
the GFI, or the IPA;
§ The value declared by the owners obtained from the latest Tax
Declaration Certificates or Sworn Statements;
§ The current selling price of similar or comparable lands in the vicinity
based from the latest records on Deeds of Sale for similar lands in the
office of the Register of Deeds concerned;
§ The replacement cost of improvements at current market prices;
54
§ The size, shape or location, tax declaration and zonal valuation of the
land based from the latest records on Deeds of Sale in the Register of
Deeds, tax declaration by the City or Municipal Assessor, zonal valuation
of the BIR for comparable properties;
§ The price of the land as manifested in the ocular findings, oral as well as
documentary evidence presented; and
§ Such facts and events so as to enable the affected property owners to
have sufficient funds to acquire similarly situated lands of approximate
areas as those required from them by the government, and thereby
rehabilitate themselves as early as possible.
55
The Estimated Indirect Cost shall include the following:
In all cases, the Estimated Indirect Costs shall not exceed the following
limits:
Up to PhP 5M 12 10
For projects that have undergone Feasibility Study, the estimated replacement
cost of structures may be based on benchmark unit costs derived from industry
standards and accepted by the DPWH – e.g., cost/square m of floor area of
house or building (IRR Sec. 15).
For projects with Detailed Engineering Design, the estimated replacement cost
shall be based on detailed estimates, including Bill of Materials/Bill of Quantities
(IRR Sec. 15). In case the IO appraisers are not allowed by the owner to enter
the property for purposes of estimating the replacement cost of structures, the
IO shall secure from the owner a waiver to the effect that the valuation of the
structures may not comply with the definition of replacement cost in the law due
56
to the inability of the appraisers to access the property. If the owner does not
issue such a waiver, the IO shall get a certification from the Barangay
Chairperson to this effect. The IO shall then make a reasonable estimate of the
replacement cost based on visible physical features of the structures and other
relevant data.
Appraisal of the crops and trees may be conducted using the latest applicable
established market values of the following entities, as may be applicable:
a. DA for crops;
b. Philippine Coconut Authority (PCA) for coconut trees;
c. DENR for perennials and timber trees;
d. Department of Finance (DOF); and
e. LGUs, Assessor’s Offices, for individual trees.
6.2. Determination of Capital Gains Tax and other Taxes and Fees
Upon agreement on the specific mode of acquisition to be used for the ROW,
the payment terms for taxes and fees may differ.
a. For ROW acquisition through Donation, the IO shall pay for the DST,
Transfer Tax, and Registration Fees while the Owner shall pay for
any Unpaid Real Property Tax;
b. For ROW acquisition through Negotiated Sale, the IO shall pay for
the CGT, DST, Transfer Tax, and Registration Fees while the Owner
shall pay for any Unpaid Real Property Tax;
c. For ROW acquisition through Expropriation Proceedings, the IO shall
for the DST, Transfer Tax, and Registration Fees while the Owner
shall pay for any Unpaid Real Property Tax and CGT
57
Table 9. Responsible Parties for Payment of Taxes and Fees
(IO pays
for account of
Owner)
DST BIR IO IO IO
Treasurer’s
Office
Registration Registry of IO IO IO
Fee Deeds
Upon the request of the property owner, the IO shall remit to the concerned
LGU the amount corresponding to any unpaid real property tax, subject to the
deduction of this amount from the total compensation price, provided that the
said amount is not more than the total compensation price.
On the other hand, the CGT shall be remitted to the BIR by the IO in case of
negotiated sale and by the Owner in case of expropriation proceedings. The
CGT shall be based on the actual consideration in the Deed of Sale, as
expressed below:
AC = NAC + CGT
58
NAC = Net Actual Consideration or Compensation Price as offered
by the IO to the owner in accordance with Section 6.1 of this IRR,
net of CGT, and
Since: CGT = x% of AC
Below is an illustrative example in computing the AC, NAC and CGT for a
hypothetical property affected by a ROW to be acquired through negotiated
sale.
o The CGT to be paid by the IA to the BIR for the account of the owner
CGT = 6% of gross amount
= P63,830.00
A DAS shall be executed after the property owner agrees on the price offered
by the IO. For the processing of the DAS, the following documents should be
secured:
59
a. Owner’s duplicate of the Original/Transfer Certificate of Title (IO must
validate this with the Register of Deeds copy of the OCT/TCT in the
IO’s possession)
b. Tax Declaration of parcel
c. Tax Declaration of improvements (except for informal settler (IS)-
owners)
d. Subdivision Plan of the parcel
e. Tax Clearance or, if the landowner requests the IO to advance the
payment of Real Property Taxes to be deducted from the payment, a
Statement of Tax Account from the Treasurer of the LGU concerned
f. Copies of two (2) valid identification cards
g. Owner’s Taxpayer Identification Number (TIN)
h. If applicable, where the improvement owner is different from lot owner
and is authorized to build on the land, a certification from the lot owner
that the improvement built therein is owned by the improvement owner
i. If applicable, where the improvement owner is an informal settler, any
document showing that he is a Filipino citizen; a certification from the
Land Registration Authority that there is no property registered under
his name, whether in an urban or rural area; a certification from the
Local Inter-Agency Committee (LIAC) that he is not a professional
squatter or a member of a squatting syndicate, as defined in Republic
Act No. 7279, otherwise known as the “Urban Development and
Housing Act of 1992” and does not occupy an existing government
ROW.
j. If applicable, Special Power of Attorney
k. Other documents that may be found necessary by the IO to ensure
transfer of the property to the Republic
Upon the execution of a Deed of Sale, the IO shall pay the property owner the
Initial Payment as scheduled below:
60
The payment of the remaining balance of the IO to the Property Owner shall
only commence 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 at the time of the
annotation of a deed of sale on the title, in cases where the land is partially
affected. However, the schedule of payment for the remaining balance differ
base on the following conditions:
a. Where the property owner owns both the land and improvements the
IO shall 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, crops and trees, exclusive of unpaid taxes
remitted to the LGU concerned, provided that the land is already
completely cleared of structures, crops and trees, as certified by the
IO;
b. Where the property owner owns only the land, the IO shall pay the
property owner the remaining fifty percent (50%) of the negotiated
price of the affected land, exclusive of unpaid taxes remitted to the
LGU concerned;
c. Where the property owner owns only the improvements, the IO shall
pay the property owner the remaining thirty percent (30%) of the
affected structures, crops and trees, exclusive of unpaid taxes
remitted to the LGU concerned, immediately after the IO has certified
that the land is already completely cleared of structures, crops and
trees.
The IO shall ensure the faithful and prompt compliance with the above payment
procedures and may revise or issue the necessary orders and directives to this
effect.
The IO shall pay the CGT to the BIR within thirty (30) calendar days after (a)
the release of the initial payments specified above or (b) the notarization of the
Deed of Sale, whichever is earlier. The IO shall also pay the DST within five (5)
calendar days after the close of the month when the Deed of Sale is notarized.
The following procedures are initiated upon the transfer of title in the name of
the Republic of the Philippines, in cases where the land is wholly affected, or at
the time of the annotation of a deed of sale on the title, in cases where the land
is partially affected.
61
6.5.1. CLEARING OF PRIVATE STRUCTURES WITHIN THE ROW
62
6.5.2. CLEARING OF PUBLIC IMPROVEMENTS WITHIN THE ROW
In case of ADRRI, the labor cost for demolition shall be deducted from the cost
of improvements to be disbursed to the government entity-owner for the
reconstruction of the same public infrastructure. Reconstruction of the public
infrastructure at the designated site, can either be by administration or by
contract.
1. Inventory of the trees to be cut, including the volume and type of species,
conducted by a registered Forester from the concerned Community
Environment and Natural Resources Office (CENRO);
63
2. Submission of the inventory to the DENR upon application for a “Permit to
Cut”. This permit must be obtained prior to the Notice of Award upon
receiving the permit, the Contractor shall be responsible for the cutting and
hauling of the trees. Cut trees shall be transferred to the stockyard
designated by the DENR. In cutting the trees, it is important that the
conditions set in the Permit are strictly complied with, such as boundaries
set where trees can be cut, balling instead of cutting (depending on the age
and recovery ability of the tree), etc.
This activity is initiated once the Deed of Absolute Sale and its provisions is
approved by the IO. Prior to the processing of the DAS, several documents
need to be secured and authenticated including the following:
For validating and paying Taxes and Fees, the following offices should be
visited for assistance:
64
After the computation of the Total Tax Payable and Mortgage (if there`s any),
disbursement voucher should be prepared.
After the approval of the voucher, payment shall be made in the corresponding
office involved. In settling the payments, it is important to secure the Official
Receipt (OR), corresponding certificates, and clearances for reference. The
following procedures shall apply:
65
Appendix A
ROW Action Plan (ROWAP)
PROJECT PROFILE
Name of Project:
___________________________________________________________________
Coordinates:
___________________________________________________________________
PROPONENT PROFILE
Name of Association/Organization/Cooperative:
___________________________________________________________________
RIGHT-OF-WAY PROFILE
Cadastral Map
Structures present
Cost Estimates*
1. Land**
3. Structures
Mode of Acquisition:
Actions to be taken:
___________________________ ______________________________
(ROW Officer) (ROW Section/Unit Head)
Appendix A1
ROW Action Plan (RAP)
Cost Estimates for Land
Project:
Municipality:
(1) (2) (3) (4) (5) (6) (7) (8)
ROW Area (L) Price/m2 based Price of Land (4)
NEDA inflation
Total Cost of
Barangay Land Use Typea Lot Number on BIR zonal rate plus
X (W) x (5) Land (6) + (7)
value contingencies
Project:
Municipality:
(1) (2) (3) (4) (5) (6) (7)
TOTAL
Estimated NEDA COST for
Estimated
Type of Lot Labor Cost inflation rate Structures,
Barangay Replacement
Improvementa Number for plus Crops, and
Costb
Demolitionc contingencies Trees
(4)+(5)+(6)
a Indicate any and all annotations, for example, if the lot is mortgaged, or if it is under litigation, or if it has incurred any encumbrances,or if it was acquired through Commonwealth Act 141.
Appendix A4
ROW Compensation Matrix
(Date)
This section will include the name of the farmers’ association and property owner, location of the
proposed project, proposed project and staffs involved.
This will provide the entire problem encountered during the acquisition of ROW and the actions
that have undertaken / recommendation by the staffs involved.
____________________________________
____________________________________
(RFO Staff Preparer) (ROW Section Head)
Appendix C1
Template Terms of Reference
for Property Appraisal Services Pursuant to RA No. 10752
1. Background:
§ Insert a brief description and map of the project for which the Right-of-
Way (ROW) is required.
§ Insert the Parcellary Survey Report for the project indicting the
properties affected by the ROW.
§ The size, shape or location, tax declaration and zonal valuation of the
land;
(These shall be based on, among other things, the latest records on
Deeds of Sale in the Register of Deeds, tax declaration by the City or
Municipal assessor, zonal valuation of the BIR for comparable
properties.)
§ The price of the land as manifested in the ocular findings, oral as well
as documentary evidence presented; and
5. Duration of Services and timetable for Delivery of Outputs – The GFI/IPA shall
perform the services and deliver the said outputs to the IA within (insert
number of calendar days) days from its receipt of the IA's Notice to Proceed
for the Agreement for these services, and according to the following schedule
(example shown below):
§ The IPA must comply with the experience and other eligibility
requirements provided in R.A 9184 and its IRR, including the
registration and license required for a Real Estate Appraiser.
Appendix C2
Format of Approved Budget for the Contract (ABC)
for GFI/IPA Appraisal Services
Name and Location of Project: Construction of XYZ Road, x km, XXXXXX City
Work Items:
Cost Items:
I. Manpower
No. Man-Days Rate/Day Amount Base
a. Project Leader/Appraiser 1 60 xxxxxx xxxxxx Quezon City
b. GIS Mapper/Cartographer 1 60 xxxxxx xxxxxx Quezon City
c. Researcher 1 30 xxxxxx xxxxxx Tacloban
d. Survey Coordinator/Encoder 2 60 xxxxxx xxxxxx Tacloban
e. Field Guide 1 60 xxxxxx xxxxxx Tacloban
Total xxxxxx
Vehicle rental
Survey Instruments - GPS, camera, etc.
Supplies for Reports, including maps
WITNESSETH:
WHEREAS, the DA-RFO has accepted the bid of the GFI for the execution of the
Services in consideration of a Total Fee of Philippine
Pesos (PhP ).
NOW, THEREFORE, for and consideration of the foregoing premises, the Parties
hereto agree as follows:
a. TOR
b. Request for Proposal
c. GFI’s Technical and Financial Proposals
d. Notice of Award and GFI’s conforme thereto
ACKNOWLEDGEMENT
This MOA consists of two pages, including this page on which this acknowledgement
is written, duly signed by the authorized representatives of the DA-RFO and the GFI
and their witnesses on the spaces provided for their signatures on each and every
page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix C4
FORM OF CONTRACT AGREEMENT WITH IPA FOR
PROPERTY APPRAISAL SERVICES
WITNESSETH:
WHEREAS, the DA-RFO has accepted the bid of the IPA for the execution of the
Services in consideration of a Total Fee of Philippine
Pesos (PhP ).
NOW, THEREFORE, for and consideration of the foregoing premises, the Parties
hereto agree as follows:
a. TOR
b. Request for Proposal
c. IPA’s Technical and Financial Proposals
d. Notice of Award of Contract and IPA’s conforme thereto
IN WITNESS WHEREOF, the DONOR and the DONEE have hereunto affixed their
signatures this ___ day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
This Contract of Agreement consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
DA-RFO X and the GFI and their witnesses on the spaces provided for their
signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix D
DEED OF DONATION OF REAL PROPERTY
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the DONOR,
and
WITNESSETH:
That the DONOR is the owner in fee simple of a certain parcel of land (with the
building or house and improvements thereon, if there are any), hereinafter called the
“Property,” situated at [Name of Barangay, Municipality, Province], Philippines,
covered by Transfer (or Original) Certificate of Title No. ____________ of the
Registry of Deeds, needed by the Government for the right-of-way of the [Name of
Project], and which Property is more particularly described as follows:
That, for and in consideration of the improvement to be made by the DONEE in the
premises, and as an act of cooperation, liberality, and generosity, the DONOR
hereby voluntarily and unconditionally transfers and conveys, by way of DONATION,
unto the DONEE, its executors and/or administrators, all his (her) rights, title, and
interests on the Property, with all the improvements found thereon, free from all liens
and encumbrances;
That the DONOR hereby states, for the purpose of giving full effect and validity to
this donation, that he/she has reserved for himself / herself sufficient properties
necessary and adequate to support him/her and his/her heirs or family’s subsistence,
sustenance and support and in consonance with his/her standing in the community;
That the DONOR further states, that this donation is not made with the purpose of
defrauding his/her creditors, having reserved to himself (or herself) enough and
sufficient property to answer for his debts and meet his just obligations contracted
prior to this date;
That the DONEE hereby receives and accepts this donation made in his favor by the
DONOR, and hereby expresses his appreciation and gratitude for the generosity and
civic mindedness of the DONOR.
IN WITNESS WHEREOF, the DONOR and the DONEE have hereunto affixed their
signatures this ___ day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
This Deed of Donation consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
DONOR and the DONEE and their witnesses on the spaces provided for their
signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix E1
DEED OF ABSOLUTE SALE
FOR LAND INCLUDING STRUCTURES/IMPROVEMENTS, AND CROPS/TREES
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY;
WITNESSETH:
WHEREAS, the FIRST PARTY will implement the construction of [Name of Project],
hereinafter called the Project;
WHEREAS, the Project will affect the Property (or a ___ square-meter portion of the
Property) of the SECOND PARTY, including the structures, improvements, crops
and trees therein, situated at [Name of Barangay, Municipality, Province], Philippines,
herein referred to as the Affected Property, and more particularly described as
follows:
WHEREAS, the SECOND PARTY, being the true, lawful, and absolute owner in fee
simple of the Affected Property herein described, covered by Transfer (or Original)
Certificate of Title No. _____________ of the Registry of Deeds, a photocopy of
which is attached and made an integral part hereof, hereby concede(s) to absolutely
and irrevocably sell, transfer, and convey to the FIRST PARTY the said ___ square-
meter Affected Property, including the structures, improvements, crops and trees
therein, such improvements being covered by Tax Declaration No. _________ in the
name of the SECOND PARTY, a photocopy of which is attached and made an
integral part hereof; and
WHEREAS, the FIRST PARTY hereby agrees to buy the said Affected Property,
including the structures, improvements, crops and trees therein, at the Total Price
and under the terms and conditions set forth hereinafter;
NOW, THEREFORE, pursuant to Republic Act No. 10752 (Right-of-Way Act), for
and in consideration of the Total Price of ______________________________
Philippine Pesos (PhP___________), exclusive of Value Added Tax, which Total
Price shall be paid by the FIRST PARTY to the SECOND PARTY in accordance with
the schedule provided below, SECOND PARTY hereby sells, transfers, and conveys
to the FIRST PARTY the said square-meter Affected Property described herein,
including the structures, improvements, crops and trees therein, free and clear of all
liens and encumbrances, or claims whatsoever, except those already annotated and
appearing at the back of the Certificate of Title upon execution of this Deed, and is,
and shall continue to be, not subject to any claim, set-off, or defense which will
prevent the FIRST PARTY from obtaining absolute ownership in fee simple over the
said affected portion of the Property and full possession of the same.
The FIRST PARTY shall pay the said consideration or Total Price to the SECOND
PARTY in accordance with the following schedule:
a. First payment - to be made upon the execution of this Deed - covering the
sum of the following amounts, less any unpaid Real Property Taxes on the
Affected Property that are due as of the end of the quarter covering this Deed
of Absolute Sale, as hereinafter provided:
b. Second and final payment - to be made (a) at the time of the transfer of the
Title in the name of the Republic of the Philippines, in case the land is wholly
affected or (b) at the time of the annotation of this Deed on the Title, in case
the land is partially affected, provided that the land is already completely
cleared of structures, improvements, crops and trees, as certified by the Head
of the Implementing Office (IO) for the Project, in the following amounts, less
any unpaid Real Property Taxes, as hereinafter provided:
Pursuant to R.A. 10752, the FIRST PARTY shall remit to the Bureau of Internal
Revenue (BIR), for the account of the SECOND PARTY, the Capital Gains Tax due
on the sale of the Affected Land, to be funded from appropriate funds of the FIRST
PARTY outside the said consideration or Total Price of the Affected Land.
The FIRST PARTY shall remit to the Local Government Unit concerned any unpaid
Real Property Taxes of the SECOND PARTY, as deducted from the said amount of
consideration or Total Price.
The FIRST PARTY shall pay the pay the corresponding Documentary Stamp Tax to
the BIR, Transfer Tax to the Provincial/City Treasurer’s Office, and Registration Fees
to the Register of Deeds, to be funded from appropriate funds of the FIRST PARTY
outside the said amount of consideration or Total Price.
The FIRST PARTY shall undertake the survey of the Property for the purpose of
separating and annotating the purchased portion from the main lot, and shall bear
the expenses that shall be incurred therein.
The SECOND PARTY warrants that the Property is not involved in any pending or
threatened litigation or case brought before a court or any administrative body.
Moreover, the SECOND PARTY undertakes to defend, at his own cost and without
recourse to the FIRST PARTY, title to the Property subject of this Deed, from any
and all claims not annotated on his Certificate of Title.
Upon the signing of this Deed of Absolute Sale, the FIRST PARTY has the right to
immediately enter the said Affected Property and implement the Project.
Upon making the first payment to the SECOND PARTY as provided above, and
upon due notice to the SECOND PARTY, the FIRST PARTY has the right to
demolish and remove the said structures, improvements, crops and trees within the
affected portion of the Property.
Upon receipt of full payment of the abovementioned consideration or Total Price, the
SECOND PARTY is lawfully and perpetually seized from any and all his/her rights,
titles, and interests over the said affected portion of the Property.
IN WITNESS WHEREOF, the FIRST and SECOND PARTIES have hereunto affixed
their signatures this ___ day of ____________, 20__ at ___________.
REPUBLIC OF THE PHILIPPINES
By authority of the Secretary of the
Department of Agriculture
ACKNOWLEDGEMENT
This Deed of Absolute Sale consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
FIRST PARTY and the SECOND PARTY and their witnesses on the spaces
provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix E2
DEED OF ABSOLUTE SALE
(For Land Only)
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY;
WITNESSETH:
WHEREAS, the FIRST PARTY will implement the construction of [Name of Project],
hereinafter called the Project;
WHEREAS, the Project will affect the Property (or a ___ square-meter portion of the
Property) of the SECOND PARTY, situated at [Name of Barangay, Municipality,
Province], Philippines, herein referred to as the Affected Property, and more
particularly described as follows:
WHEREAS, the SECOND PARTY, being the true, lawful, and absolute owner in fee
simple of the Affected Property herein described, covered by Transfer (or Original)
Certificate of Title No. _____________ of the Registry of Deeds, a photocopy of
which is attached and made an integral part hereof, hereby concede(s) to absolutely
and irrevocably sell, transfer, and convey to the FIRST PARTY the said ___ square-
meter Affected Property; and
WHEREAS, the FIRST PARTY hereby agrees to buy the said Affected Property at
the Total Price and under the terms and conditions set forth hereinafter;
NOW, THEREFORE, pursuant to Republic Act No. 10752 (Right-of-Way Act), for
and in consideration of the Total Price of ______________________________
Philippine Pesos (PhP___________), exclusive of Value Added Tax, which Total
Price shall be paid by the FIRST PARTY to the SECOND PARTY in accordance with
the schedule provided below, SECOND PARTY hereby sells, transfers, and conveys
to the FIRST PARTY the said square-meter Affected Property described herein, free
and clear of all liens and encumbrances, or claims whatsoever, except those already
annotated and appearing at the back of the Certificate of Title upon execution of this
Deed, and is, and shall continue to be, not subject to any claim, set-off, or defense
which will prevent the FIRST PARTY from obtaining absolute ownership in fee
simple over the said affected portion of the Property and full possession of the same.
The FIRST PARTY shall pay the said consideration or Total Price to the SECOND
PARTY in accordance with the following schedule:
a. First payment - to be made upon the execution of this Deed in the ampunt
equivalent to Fifty percent (50%) of the abovementioned Price of the Affected
Land, or _____________________ Philippine Pesos (PhP ___________),
less any unpaid Real Property Taxes on the Affected Property that are due as
of the end of the quarter covering this Deed of Absolute Sale, as hereinafter
provided;
b. Second and final payment - to be made (a) at the time of the transfer of the
Title in the name of the Republic of the Philippines, in case the land is wholly
affected or (b) at the time of the annotation of this Deed on the Title, in case
the land is partially affected, in the amount equivalent to the remaining Fifty
percent (50%) of the abovementioned Price of the Affected Land, or
____________________ Philippine Pesos (PhP ___________), less any
unpaid Real Property Taxes, as hereinafter provided.
Pursuant to R.A. 10752, the FIRST PARTY shall remit to the Bureau of Internal
Revenue (BIR), for the account of the SECOND PARTY, the Capital Gains Tax due
on the sale of the Affected Land, to be funded from appropriate funds of the FIRST
PARTY outside the said consideration or Total Price of the Affected Land.
The FIRST PARTY shall remit to the Local Government Unit concerned any unpaid
Real Property Taxes of the SECOND PARTY, as deducted from the said amount of
consideration or Total Price of the Affected Property.
The FIRST PARTY shall pay the corresponding Documentary Stamp Tax to the BIR,
Transfer Tax to the Provincial/City Treasurer’s Office, and Registration Fees to the
Register of Deeds, to be funded from appropriate funds of the FIRST PARTY outside
the said amount of consideration or Total Price of the Affected Property.
The FIRST PARTY shall undertake the survey of the Property for the purpose of
separating and annotating the purchased portion from the main lot, and shall bear
the expenses that shall be incurred therein.
The SECOND PARTY warrants that the Property is not involved in any pending or
threatened litigation or case brought before a court or any administrative body.
Moreover, the SECOND PARTY undertakes to defend, at his own cost and without
recourse to the FIRST PARTY, title to the Property subject of this Deed, from any
and all claims not annotated on his Certificate of Title.
Upon the signing of this Deed of Absolute Sale, the FIRST PARTY has the right to
immediately enter the said Affected Property and implement the Project without due
notice to the SECOND PARTY.
Upon receipt of full payment of the abovementioned consideration or Total Price, the
SECOND PARTY is lawfully and perpetually seized from any and all his/her rights,
titles, and interests over the said affected portion of the Property.
IN WITNESS WHEREOF, the FIRST and SECOND PARTIES have hereunto affixed
their signatures this ___ day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
This Deed of Absolute Sale consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
FIRST PARTY and the SECOND PARTY and their witnesses on the spaces
provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix F
EXTRA JUDICIAL SETTLEMENT OF ESTATE
WITH DEED OF ABSOLUTE SALE
THIS Extrajudicial Settlement of Estate with Deed of Absolute Sale, made and
executed by:
and
WITNESSETH:
WHEREAS [Name of Heir], [Name of Heir], and [Name of Heir] are the legitimate
children of the (PROPERTY OWNER), and his/her only surviving heirs;
WHEREAS [Name of Property Owner] died intestate and without leaving any debts
whatsoever;
WHEREAS, the FIRST PARTY, being the true, lawful, and absolute owner in fee
simple of the PROPERTY herein described, hereby agree and concede to absolutely
and irrevocably sell, transfer, and convey to the SECOND PARTY the said ____
square-meter AFFECTED LAND;
WHEREAS, the SECOND PARTY hereby agrees to buy the said AFFECTED LAND
at the Total Price and under the terms and conditions set forth hereinafter;
NOW, THEREFORE, pursuant to Republic Act No. 10752 (Right-of-Way Act), for
and in consideration of the Total Price of the Affected Land of _______________
Philippine Pesos (PhP ___________ ), to be paid by the SECOND PARTY to the
FIRST PARTY in accordance with the schedule provided below, the FIRST PARTY
hereby sells, transfers, and conveys to the SECOND PARTY the said AFFECTED
LAND described herein, free and clear of all liens and encumbrances, or claims
whatsoever, except those already annotated and appearing at the back of the
Certificate of Title upon the execution of this Deed, and is, and shall continue to be,
not subject to any claim, set-off, or defense which will prevent the SECOND PARTY
from obtaining absolute ownership in fee simple over the said Affected Land and full
possession of the same;
The SECOND PARTY shall pay the said Total Price of the AFFECTED LAND to the
FIRST PARTY in accordance with the following schedule:
a. First payment --- to be made upon the execution of this Deed, equivalent to
fifty percent (50%) of the said Total Price of the Affected Land, or
____________________Philippine Pesos (PhP ___________), less any
unpaid Real Property Taxes on the Affected Land that are due as of the end
of the quarter covering this Deed of Absolute Sale, as well as Estate Tax due
from the HEIRS/FIRST PARTY; and
b. Second and final payment --- to be made (a) at the time of the transfer of the
title in the name of the Republic of the Philippines, in case the land is wholly
affected, or (b) at the time of the annotation of this Deed on the title, in case
the land is partially affected, less any unpaid Real Property Tax, provided that
the land is already completely cleared of structures, improvements, crops and
trees, as certified by the Head of the Implementing Agency (IA) for the Project,
equivalent to the remaining fifty percent (50%) of the said Total Price of the
Affected Land, or _____________________Philippine Pesos (PhP
________), less any unpaid Real Property Taxes.
Pursuant to RA 10752, the SECOND PARTY shall remit to the Bureau of Internal
Revenue (BIR), for the account of the FIRST PARTY, the Capital Gains Tax due on
the sale of the AFFECTED LAND, to be funded from appropriate funds of the
SECOND PARTY outside the said consideration or Total Price of the AFFECTED
LAND.
The SECOND PARTY shall remit to the BIR the Estate Taxes due from the FIRST
PARTY, as deducted from the said consideration or Total Price of the AFFECTED
LAND.
The SECOND PARTY shall remit to the Local Government Unit concerned any
unpaid Real Property Taxes on the PROPERTY, as deducted from the said
consideration or Total Price of the AFFECTED LAND.
The SECOND PARTY shall pay the pay the corresponding Documentary Stamp Tax
to the BIR, Transfer Tax to the Provincial/City Treasurer’s Office, and Registration
Fees to the Register of Deeds, to be funded from appropriate funds of the SECOND
PARTY outside the said consideration or Total Price of the AFFECTED LAND.
The SECOND PARTY shall undertake the survey of the PROPERTY for the purpose
of separating and annotating the purchased portion from the main lot, and shall bear
the expenses that shall be incurred therein.
The FIRST PARTY warrants that the said PROPERTY is not involved in any pending
or threatened litigation or case brought before a court or any administrative body.
Moreover, the FIRST PARTY undertakes to defend, at his own cost and without
recourse to the SECOND PARTY, title to the Property subject of this Deed, from any
and all claims not annotated on his Certificate of Title.
Upon the signing of this Deed of Absolute Sale, the SECOND PARTY has the right
to immediately enter the said AFFECTED LAND and implement the Project.
IN WITNESS WHEREOF, the FIRST and SECOND PARTIES have hereunto affixed
their signatures this ___ day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
BEFORE ME, a Notary Public for and in _______________ personally appeared
[Name of Representative], representing the FIRST PARTY with Government ID No.
__ issued at ___________ on ___________, and [Name of Representative]
representing the SECOND PARTY, with Government ID No. __ issued at
___________ on ___________, known to me and to me known to be the same
persons who executed the foregoing Extrajudicial Settlement of Estate with Deed of
Absolute Sale and acknowledged to me that the same is their free and voluntary act
and deed.
This Extrajudicial Settlement of Estate with Deed of Absolute Sale consists of two
pages, including this page on which this acknowledgement is written, duly signed by
the authorized representatives of the FIRST PARTY and the SECOND PARTY and
their witnesses on the spaces provided for their signatures on each and every page
thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix G
DEED OF EXCHANGE
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY,
WITNESSETH:
WHEREAS, the FIRST PARTY is the absolute owner in fee simple of that certain
parcel of land (and improvements thereon, if there are any) situated at [Name of
Barangay, Municipality, Province], Philippines, containing an area of ___ square
meters, more or less, covered by Transfer (or Original) Certificate of Title No.
______of the Registry of Deeds, more particularly described as follows:
WHEREAS, the SECOND PARTY is the absolute owner in fee simple of that certain
parcel of land (and improvements thereon, if there are any) situated at [Name of
Barangay, Municipality, Province], Philippines, which will be affected by [Name of
Project], and identified as Lot No. __________ containing an area of ____square
meters, more or less, and covered by Transfer (or Original) Certificate of Title No.
_________ of the Registry of Deeds, more particularly described as follows:
WHEREAS, the two Parties are willing and agreeable to exchange their respective
properties as described above; and
WHEREAS, the proposed exchange is to the mutual advantage of the two Parties,
considering that their respective properties are deemed to be of equal values;
1. The FIRST PARTY does by these presents transfer and convey by way of
exchange unto the SECOND PARTY, his (or her/their) heirs, executors, and
assigns, all the rights and appurtenances thereunto belonging or in anywise
appertaining to the SECOND PARTY, free from all liens, charges, or
encumbrances whatsoever, its property herein described, subject, however, to
existing public roads and public utility easements, and further agrees to
shoulder the expenses relative to the registration of this instrument;
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ___
day of ____________, 20__ at ___________.
APPROVED:
ACKNOWLEDGEMENT
This Deed of Exchange consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
FIRST PARTY and the SECOND PARTY and their witnesses on the spaces
provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix G1
QUIT CLAIM DEED
(For Unpatented Lands)
I, [Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], do hereby declare and state
the following:
4. I shall not claim or demand any payment for the use of the portion of the land
by the Government for the purpose abovementioned, except for damages to
the improvements that will be affected by the 20 / 60-meter wide road right-of-
way;
ACKNOWLEDGEMENT
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix G2
QUIT CLAIM DEED
(For Lands Acquired under the Public Land Law)
I, [Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], do hereby declare and state
the following:
1. I am the owner of a certain parcel of land (with the building or house and
improvements thereon, if there are any) situated at [Name of Barangay,
Municipality, Province], Philippines, known as Lot No. __________, FP (F,
or H) No. _________, and covered by Original (or Transfer) Certificate of Title
No. of _________ the Registry of Deeds, more particularly described as
follows:
3. I shall not claim or demand any payment for the use of the portion of the land
by the Government for the purpose abovementioned, except for damages to
the improvements that will be affected by the 20 / 60-meter wide road right-of-
way;
ACKNOWLEDGEMENT
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix H
AGREEMENT FOR RIGHT-OF-WAY EASEMENT
This Agreement for Right-Of-Way Easement, made and entered into by and
between:
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY,
WITNESSETH:
WHEREAS, the FIRST PARTY will implement the [Name of Project], hereinafter
called the Project;
WHEREAS, the Project will pass over and affect a ____ square-meter portion of the
Property of the SECOND PARTY, a certain parcel of land including the structures,
improvements, crops and trees therein, situated at [Name of Barangay, Municipality,
Province], acquired by him (or her/them) through __________________________,
bound by the following:
[if the land is registered] containing an area of ____ square meters, more or less,
registered with the Registry of Deeds of ______________________ as Lot No. ___,
Block No. ___, Plan No. ___ under Transfer (or Original) Certificate of Title
No. ______________ in the name of ____________________;
[if the land is not registered] containing an area o f ___square meters, more or less,
declared in said municipality under Tax Declaration No. ___________(page no. ___,
for the year _____, copy attached), with an assessed value of
___________________________________ Philippine Pesos (PhP _____________),
in the name of __________________, who is (or was, whichever is applicable) its
present (or former) owner, and with the following person(s) presently in possession
(or occupation) as lessee (or mortgagee, etc., as applicable):
NOW THEREFORE, for and in consideration of the construction and maintenance of
said road by the FIRST PARTY, and of the payment to the SECOND PARTY of the
sum of ______________________________ Philippines Peso (PhP ___________),
(at PhP _____ per square meter) as compensation or liquidated damages for the
use and occupancy of said land and as full payment for the portion thereof, with the
road right-of-way as finally determined, and of the other stipulations herein contained,
the Parties hereto agree as follows:
[Sketch]
2. The FIRST PARTY agrees to remove, at its own expense, all fences, house,
(mention other structures as necessary], and similar improvements
situated within the square meters road right-of-way, and to rebuild the same
outside the boundary lines of said road right-of-way in, at least, as good as
the conditions they were before being removed, or to make due and
appropriate compensation therefor, including fruit-bearing trees and growing
crops, as agreed upon by the parties thereto, but not to exceed the rate fixed
by the Municipal (or City) Assessor as established by Executive Order No.
1035, series or 1985.
4. If the SECOND PARTY has no other land for the realignment, and the area
required and described in the first paragraph is no longer needed by the
FIRST PARTY after it has made payment to the SECOND PARTY, the
SECOND PARTY has the option to repossess the area upon refund of the
payment made by the FIRST PARTY.
5. If the SECOND PARTY fails to return or refund the amount he (or she/they)
has received from the FIRST PARTY within two (2) years after receipt of the
FIRST PARTY’s written notice of its abandonment of the area and its demand
for the refund or return of the amount it has paid therefor, ownership over the
abandoned area shall automatically vest on the FIRST PARTY.
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ___
day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
This Agreement for Road Right-Of-Way Easement consists of two pages, including
this page on which this acknowledgement is written, duly signed by the authorized
representatives of the FIRST PARTY and the SECOND PARTY and their witnesses
on the spaces provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix I
PERMIT TO ENTER
Date: ________________
Attested by:
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY,
WITNESSETH:
WHEREAS, the FIRST PARTY will implement the [Name of Project], which will
[partially/ totally] affect the following improvements of the SECOND PARTY which
are within the defined right-of-way (ROW) of the Project:
WHEREAS, the SECOND PARTY is the true, lawful, and absolute owner in fee
simple of the abovementioned improvements, as evidenced by Tax Declaration
No. ________, a photocopy of which is attached and made an integral part hereof;
WHEREAS, the Parties have entered into a Deed of Absolute Sale (DAS), a copy of
which is attached and made an integral part hereof, which Deed provides the
following, among others:
a. For and in consideration of the Total Price indicated in the said DAS, to be
paid by the FIRST PARTY to the SECOND PARTY in accordance with the
schedule provided in the DAS, the SECOND PARTY hereby sells, transfers,
and conveys to the FIRST PARTY the improvements listed above;
b. The FIRST PARTY shall pay the said Total Price to the SECOND PARTY in
accordance with the following schedule:
1. First payment - to be made upon the execution of the DAS – equivalent to
seventy percent (70%) of the said Total Price, minus the corresponding
Capital Gains Tax and any unpaid Real Property Taxes of the SECOND
PARTY as hereinafter provided.
2. Second and final payment - to be made (a) at the time of the transfer of
the Title to the land in the name of the Republic of the Philippines, in case
the land is wholly affected or (b) at the time of the annotation of the DAS
on the Title to the land, in case the land is partially affected, provided that
the land is already completely cleared of the said improvements, as
certified by the Head of the Implementing Agency for the Project -
equivalent to the remaining thirty percent (30%) of the said Total Price,
minus the corresponding Capital Gains Tax and any unpaid Real Property
Taxes of the SECOND PARTY as hereinafter provided.
NOW THEREFORE, for and in consideration of the foregoing premises, the Parties
hereby agree on the following:
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ___
day of ____________, 20__ at ___________.
ACKNOWLEDGEMENT
This ADRI consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
FIRST PARTY and the SECOND PARTY and their witnesses on the spaces
provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
Appendix K
AGREEMENT TO DEMOLISH, REMOVE, AND RECONSTRUCT IMPROVEMENTS
(ADRRI)
and
[Name of Property Owner], Filipino, of legal age, single (or married to Name of
Husband/Wife) and a resident at [Complete Address], hereinafter called the
SECOND PARTY,
WITNESSETH:
WHEREAS, the FIRST PARTY will implement the [Name of Project], which will
[partially/ totally] affect the following improvements of the SECOND PARTY which
are within the defined right-of-way (ROW) of the Project:
WHEREAS, the SECOND PARTY is the true, lawful, and absolute owner in fee
simple of the abovementioned improvements, as evidenced by Tax Declaration
No. ________, a photocopy of which is attached and made an integral part hereof;
WHEREAS, the SECOND PARTY hereby consents and binds himself (or
herself/themselves) to demolish, remove, transfer, and reconstruct the above-listed
improvements outside the road right-of-way of the abovementioned Project;
WHEREAS, the SECOND PARTY agrees that the basis for the determination of just
compensation for the property acquired shall be governed by the provisions of
Republic Act 10752 and its Implementing Rules and Regulations; and
WHEREAS, the Parties have entered into a Deed of Absolute Sale (DAS), a copy of
which is attached and made an integral part hereof, which Deed provides the
following, among others:
c. For and in consideration of the Total Price indicated in the said DAS, to be
paid by the FIRST PARTY to the SECOND PARTY in accordance with the
schedule provided in the DAS, the SECOND PARTY hereby sells, transfers,
and conveys to the FIRST PARTY the improvements listed above;
d. The FIRST PARTY shall pay the said Total Price to the SECOND PARTY in
accordance with the following schedule:
4. Second and final payment - to be made (a) at the time of the transfer of
the Title to the land in the name of the Republic of the Philippines, in case
the land is wholly affected or (b) at the time of the annotation of the DAS
on the Title to the land, in case the land is partially affected, provided that
the land is already completely cleared of the said improvements, as
certified by the Head of the Implementing Office (IO) for the Project,
equivalent to the remaining thirty percent (30%) of the said Total Price,
minus the corresponding Capital Gains Tax and any unpaid Real Property
Taxes of the SECOND PARTY as hereinafter provided.
NOW THEREFORE, for and in consideration of the foregoing premises, the Parties
hereby agree on the following:
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ___
day of ____________, 20__ at ___________.
REPUBLIC OF THE PHILIPPINES
By authority of the Secretary of the
Department of Agriculture
ACKNOWLEDGEMENT
This ADRRI consists of two pages, including this page on which this
acknowledgement is written, duly signed by the authorized representatives of the
FIRST PARTY and the SECOND PARTY and their witnesses on the spaces
provided for their signatures on each and every page thereof.
IN WITNESS WHEREOF, I have hereunto affixed my signature and notarial seal this
___ day of _________, 20__ at ____________________.
Notary Public
Until December 31, 20___________
PTR No.______________________
Issued on________ at___________
Doc. No.:__________
Page No.: _________
Book No.: _________
Series of 20 _______
5. Settling CGT and DST and obtaining OR and Certificate Authorizing
Registration (CAR)
6. Payment of registration Fee in the Registry of Deeds and Transfer of
Title in the name of the Republic of the Philippines (Department of
Agriculture)
7. Payment to the Property Owner
§ If the property is not mortgaged, the amount to be paid to the
owner shall be the amount indicated in the DAS deducted with the
amount paid for the TD arrears, RPT arrears and the CGT.
§ If the property is mortgaged, the amount to be paid to the owner
shall be the amount indicated in the DAS deducted with the
amount paid for the TD arrears, RPT arrears, CGT, and the
mortgage paid.
Before any payment shall be made, the ADRI shall be signed, secured, and
validated first.
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2013
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