QuestionsQuestions (IRR OF Republic Act No. 10752)
The IRR covers acquisition of real properties needed as right-of-way (ROW), site, or location for national government infrastructure projects undertaken by authorized national government agencies, including GOCCs and state colleges/universities. “National Government Projects” include a broad range of infrastructure (e.g., highways, railways, ports, airports, power facilities, IT infrastructure, irrigation, water/sanitation, land reclamation, public buildings, markets, slaughterhouses, and other similar works) and related activities such as site acquisition, construction, completion, operation, maintenance, repair, and rehabilitation, regardless of funding source.
They restate that private property shall not be taken for public use without just compensation (Section 9, Article III of the Constitution), and that the State must ensure prompt payment of just compensation for expeditious ROW acquisition.
Regular modes: (1) Donation, (2) Negotiated Sale, (3) Expropriation. Other modes include Acquisition under CA 141, Exchange/Barter, Easement of ROW, Acquisition of Subsurface ROW, and Other modes authorized by law.
The deed must be simple and unconditional, and include clauses that the donation is not to defraud the donor’s creditors and that the donor reserves enough property for family subsistence if the donor is a private individual. The IA pays documentary stamp tax, transfer tax, and registration fees; the donor pays any unpaid real property tax.
The compensation price offered by the IA consists of: (a) current market value of the land; (b) replacement cost of structures and improvements; and (c) current market value of crops and trees.
The IA may engage either a GFI or an IPA to determine the appropriate price offer. The IPA must be accredited through BSP or recognized professional appraisal associations under BSP recognition. The appraisal report can be one basis for the IA’s price offer, consistent with the standards for assessment.
Replacement Cost is the cost necessary to replace the affected structure/improvement with a similar asset based on current market prices. Under Section 6.6, it is based on current market prices of materials, equipment, labor, contractors’ profit and overhead, and related costs. It includes estimated direct cost (materials, labor, equipment with mobilization/demobilization) and estimated indirect cost (overhead up to 8% of EDC, contingencies/miscellaneous up to 4% of EDC, profit margin limits, and VAT component depending on ownership type). If damaged, it is based on pre-damaged condition and the replacement must meet same functions/specifications.
The property owner has thirty (30) days from receipt of the written offer to decide whether to accept. Upon refusal/failure or failure/refusal to submit required documents for payment, the IA must immediately initiate expropriation proceedings under Section 7 of the IRR.
General rule: upon execution, IA pays 50% of negotiated price for affected land (excluding unpaid taxes remitted), and 70% for structures/improvements/crops/trees (excluding unpaid taxes remitted). If owner owns both land and structures, IA pays the remaining 50% land and 30% structures after land is completely cleared (certified by IA): at title transfer for wholly affected land, or at deed of sale annotation for partially affected land. If owner owns only land, remaining 50% land is paid at title transfer (wholly affected) or annotation (partially affected). If owner owns only structures/improvements, remaining 30% structures is paid immediately after IA certifies land is completely cleared.
The IA pays for account of the seller/owner the Capital Gains Tax (CGT) plus documentary stamp tax (DST), transfer tax, and registration fees, while the owner pays any unpaid real property tax. (The IRR also provides how CGT is computed and remitted to BIR, and that the IA may remit unpaid real property tax to the LGU upon request of the owner, subject to deduction from total negotiated price.)
After compliance with deposit requirements and receipt of the writ of possession, the IA may take possession and start implementation. The IRR also provides that the court shall immediately issue an order to take possession upon deposit, and ex parte issuance of writ of possession if not issued within the specified 7-working-day window after deposit.
In areas where there is no land classification, city/municipal assessor must produce classification within 60 days; if no zonal valuation or zonal valuation has been in force for more than 3 years, BIR must conduct zonal valuation within 60 days from filing. For utmost urgency where there is no classification or no existing zonal valuation or it is outdated, IA uses BIR zonal value and land classification of similar lands within adjacent vicinity as basis.
The IA must consider ecological/environmental impact and relevant laws, land use ordinances, and RA 7160 provisions. During feasibility/detailed engineering design (except PPP), the IA must secure DENR ECC or CNC under PD 1586 and its IRR; for ancestral domain, additional requirements under RA 8371 and its IRR. It must prepare a Preliminary Land Acquisition Plan and Resettlement Action Plan (LAPRAP) or Indigenous Peoples’ Action Plan as applicable, forming part of the EIA.
After approval of the infrastructure project with funding in the General Appropriations Act and defined ROW, no agency/LGU may allow developments contrary to approved plans and purposes within two years from date of notice of taking. “Notice of taking” is the date of the letter issued by the IA after approval of the LAPRAP as part of detailed engineering design informing landowners of intent to acquire lands for ROW. New structures/improvements after notice are not compensated; also informal settlers built after the cut-off date are not eligible for compensation.