Question & AnswerQ&A (DENR ADMINISTRATIVE ORDER NO. 98-20)
Appraisal is defined as the art of estimating the value of an adequately described property. It is not an exact science, but an educated opinion of value supported by pertinent data.
Assessed value means the fair market value of the real property as determined by the provincial, city, or municipal assessors, adopted through ordinance, and multiplied by the assessment level; it is synonymous with taxable value.
Fair market value is the highest price in terms of money which a property will bring if exposed for sale in the open market, allowing reasonable time for a purchaser who buys and a seller willing but not obliged to sell.
Friar lands refer to various estates and parcels of land acquired by the Philippine government in 1903 during the American regime from religious orders and private corporations.
The order covers alienable and disposable lands of the public domain, lands of the private domain under Act No. 3038, properties under RA No. 477 and those under EO No. 285, R.A. 1361 properties, and Friar lands disposed under Act No. 1120 and Commonwealth Act No. 32.
Factors include extent, classification, location, actual use, development trends, assessed value, BIR zonal valuation, sales and holding prices of similar lands, highest and best use or potential, purpose of disposition, and other relevant circumstances.
For residential or agricultural lands, the appraised value shall not be less than the current assessed value. For commercial or industrial lands, the appraised value shall not be less than the average of the assessed and zonal values.
The committee is composed of the CENR Officer as Chairperson, one Land Investigator in the CENRO, and one Land Management Officer in the CENRO as members.
It should contain findings and recommendations with justifications, property identity, area, location, classification, actual and potential uses, existing improvements, a description of vicinity, a location map, a sketch plan of improvements, and relevant certifications from BIR, Assessor's Office, Register of Deeds, etc.
An approved appraisal or reappraisal is effective for one (1) year prior to the issuance date of the award, temporary permit, sale, lease application, or renewal/extension of existing lease or permit.