Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 763)
The main purpose of Presidential Decree No. 763 is to amend Section 121 of Commonwealth Act No. 141 (Public Land Act) to allow qualified juridical entities, such as corporations, associations, or partnerships, to acquire lands originally granted under the free patent, homestead, or individual sale provisions for commercial and industrial purposes.
Originally, Section 121 limited the right of corporations, partnerships, or associations to acquire lands granted under free patent, homestead, or individual sale provisions only for educational, charitable, religious, or right-of-way purposes.
The acquisition must have the consent of the grantee and the approval of the Secretary of Natural Resources.
Corporations or similar entities can acquire lands for commercial, industrial, educational, religious, charitable purposes, or for a right-of-way.
Yes, any acquisition of such land by juridical entities made prior to the promulgation of the decree for the specified purposes is deemed valid and binding, provided no final court decision has reverted the land to the State and the acquisition is approved by the Secretary of Natural Resources within six months from the effectivity of the decree.
If a final court decision of reversion has been rendered, the acquisition is not considered valid or binding under this decree.
The decree took effect immediately upon its signing on August 6, 1975.
The Secretary of Natural Resources must approve acquisitions of lands by juridical entities under the decree, including validating prior acquisitions made before the decree's effectivity within six months.
The amendment was necessary because the prior restriction was an obstacle to private sector efforts to accelerate economic development, and it was in the national interest to allow juridical entities to acquire lands for commercial or industrial purposes.