Legal basis and covered subject
- Presidential Decree No. 2004 is issued pursuant to the President’s powers vested by the Constitution.
- Republic Act No. 730 is identified as the statute permitting sale without public auction of public lands for residential purposes to qualified applicants under certain conditions.
- Presidential Decree No. 2004 amends Section 2 of Republic Act No. 730 by changing the rule on restrictions against encumbrance or alienation.
Policy statement and purpose
- Presidential Decree No. 2004 is enacted to address onerous restrictions against encumbrance or alienation imposed on lands acquired under Republic Act No. 730.
- The decree’s purpose is to remove those onerous restrictions so the acquired lands can be effectively utilized.
Operative amendment to Section 2
- Section 1 of Presidential Decree No. 2004 replaces Section 2 of Republic Act No. 730 with a new rule.
- Lands acquired under Republic Act No. 730 “shall not be subject to any restrictions against encumbrance or alienation.”
- The prohibition on restrictions applies before the issuance of patents.
- The prohibition on restrictions applies after the issuance of patents.
- The amended rule is framed as applying to “lands acquired under the provisions of this Act” (Republic Act No. 730).
Effect of the amended restriction rule
- The lands covered cease to be burdened by any restrictions against encumbrance or alienation prior to patent issuance.
- The lands covered also remain free from restrictions against encumbrance or alienation after patent issuance.
- The amended rule in Section 2 governs the acquisition stage and the post-patent stage for lands obtained under Republic Act No. 730.