Key Provision on Determining Just Compensation
- Just compensation paid to the owner when the government acquires private property for public use shall be based on the lower of two values:
- The market value declared by the owner, administrator, or any person with legal interest in the property.
- The market value determined by the government assessor.
- This prevents the payment of inflated compensation by setting a cap at the lower declared or assessed market value.
Legal Effect and Application
- All laws or decrees that conflict with this amendment are repealed or modified accordingly.
- The decree took effect immediately upon issuance on September 4, 1975.
Policy Rationale
- The amendment aims to curb the practice of property owners inflating values to manipulate just compensation.
- It provides a practical and fair standard that balances protecting private property owners’ rights and safeguarding government resources during expropriation.
Executive Authority
- The decree was issued under the constitutional powers vested in the President of the Philippines at the time.
- It demonstrates the exercise of executive authority to promptly amend legal frameworks relating to property acquisition for public use.