Question & AnswerQ&A (IRR OF Republic Act No. 10752)
The IRR covers the acquisition of real properties needed as right-of-way, site, or location for national government projects undertaken by any department, bureau, office, commission, authority, or agency of the national government, including government-owned or controlled corporations or state colleges or universities authorized to undertake such projects.
Private property shall not be taken for public use without just compensation, as stated in Section 9, Article III of the Philippine Constitution and reiterated in RA No. 10752.
Right-of-Way or ROW means a part or the entirety of a property, site, or location with defined physical boundaries, used or required by a national government project.
The regular modes are Donation, Negotiated Sale, and Expropriation.
Any department, bureau, office, commission, authority or agency of the national government, including government-owned or controlled corporations and state colleges or universities authorized by law or charter.
Owners who are Filipino citizens, have no other real property or housing, are not professional squatters or members of squatting syndicates, and do not occupy government ROW are entitled to replacement cost compensation for their structures.
The Implementing Agency (IA) shall pay the CGT to the Bureau of Internal Revenue on behalf of the property owner.
The IA shall immediately initiate expropriation proceedings as provided in Section 7 of the IRR.
The IPA must be accredited by the Bangko Sentral ng Pilipinas or a professional association of appraisers recognized by BSP, and comply with relevant requirements under RA No. 9184 including registration and licensing as a Real Estate Appraiser.
Replacement Cost includes current market prices of materials, equipment, labor, contractor’s profit and overhead, and all attendant costs necessary to replace the affected structure with a similar asset.
The IA pays 50% of the negotiated price for the affected land and 70% of the negotiated price for structures/improvements immediately, with the remaining balance paid upon clearance of the land from all structures and improvements as certified by the IA.
The IA must deposit with the court the estimated value of the property based on BIR zonal valuation, replacement cost for structures, and market value of crops and trees; upon compliance, the court issues a writ of possession allowing IA to take possession for project implementation.
Government officials or employees who violate the provisions are subject to administrative, civil, and/or criminal sanctions including suspension, dismissal from government service, and forfeiture of benefits.
It is a mode where the property owner grants the government the right to use a minimal portion of the land as ROW, but retains ownership; the IA compensates the owner for the value of the easement and replacement cost of affected improvements.
LGUs may adopt the provisions of this IRR for the acquisition of ROW for local government infrastructure projects, and receive notifications and documents related to ROW acquisition for taxation and planning purposes.
The IA pays the documentary stamp tax, transfer taxes, and registration fees, while the property owner pays the Capital Gains Tax and any unpaid real property taxes.
The IA must prepare Terms of Reference (TOR) detailing the project background, objectives, desired outputs including estimates of market value and replacement cost, standards to be observed, qualifications of the appraiser, and timetable.
The government, through HUDCC and NHA in coordination with LGUs and IAs, must establish resettlement sites and provide adequate services for informal settlers displaced by ROW acquisition, in accordance with RA No. 7279.
New structures or improvements built after the notice of taking (cut-off date) are not entitled to compensation under the IRR.
The provisions of the IRR apply to all ROW transactions except those with written price agreements reached prior to the effectivity of the Act.