Law Summary
Declaration of Policy
- Upholds constitutional policy: private property cannot be taken for public use without just compensation.
- State must ensure prompt payment of just compensation for affected property owners.
- Aligns with RA No. 7160 enabling LGUs to adopt similar provisions.
Definitions
- "Act": RA No. 10752, facilitating ROW acquisition for national projects.
- Implementing Agency (IA): Any national government agency or related entity authorized to undertake projects.
- National Government Projects: Includes highways, railways, ports, airports, power, telecom, IT, irrigation, water, industrial estates, public buildings, and other related works.
- Replacement Cost: Cost to replace affected structures with similar assets at current market prices.
- ROW: Defined portion of property used or needed for national projects.
Modes of Acquiring Real Property
- Regular modes: Donation, Negotiated Sale, Expropriation.
- Other modes: Acquisition under CA No. 141, Exchange or Barter, Easement of ROW, Acquisition of Subsurface ROW, other legal modes.
Donation Mode
- Property owner may donate property for ROW.
- Deed of donation must be simple, unconditional, and accepted by IA.
- IA pays documentary taxes; donor pays unpaid property taxes.
Negotiated Sale
- Compensation includes current market value of land, replacement cost of structures, and market value of crops/trees.
- IA may engage Government Financial Institutions (GFI) or Independent Property Appraisers (IPA) accredited by BSP for price determination.
- Terms of Reference (TOR) prepared by IA for appraisal services, covering project background, desired outputs, standards, timeline, and qualifications.
- Engagement of GFIs via MOA; IPAs procured per Government Procurement Reform Act (RA 9184).
- Replacement Cost guidelines detailed, covering direct and indirect costs, including labor, materials, equipment, overheads, contingencies, profit, and VAT.
- Property owners have 30 days to accept offer; refusal leads to expropriation.
- Owners of structures without land rights may receive replacement cost compensation if Filipino citizens not falling under squatter definitions.
- IA pays Capital Gains Tax (CGT), documentary stamp tax, transfer tax, registration fees; owner pays unpaid real property taxes.
- Payment terms specify partial payments upon execution of Deed of Sale and remaining payments upon clearing and title transfer.
- Special provisions for untitled lands with proof of possession and DENR certification.
Expropriation Process
- Initiated if negotiated sale fails or is not feasible.
- IA deposits estimated compensation equivalents into court, including BIR zonal value, replacement cost, and crops/trees value.
- Court issues writ of possession within 7 working days; IA may take possession and implement project.
- If ownership disputed or owner unknown, funds held in court pending adjudication.
- BIR and local assessors mandated to conduct timely valuation and classification.
- IA pays documentary duties; owner pays CGT and unpaid taxes.
Acquisition Under Commonwealth Act No. 141
- Special rules apply when land ownership is by original patent holder or gratuitous transfer.
- ROW strip reserved by government for public use, with compensation only for damages to improvements.
- Government may take possession upon notice; quit claim execution required.
- Temporary use allowed for project personnel buildings.
Exchange or Barter
- Owner may request exchange of private property for government property of equivalent value.
- Conditions apply, including verification of government property title and ensuring owner access rights.
- Subject to tax regulations on exchanges.
Easement of Right-of-Way
- Used when portion needed is minimal and survey costs disproportionate.
- Easement agreement grants use rights without transferring ownership.
- Compensation based on zonal valuation plus replacement cost of improvements.
- Registration of easement agreements required.
Acquisition of Subsurface ROW
- Allows use of subterranean portions beyond 50 meters from surface without affecting surface ownership.
- For underground works within 50 meters, IA may negotiate easement or purchase affected land.
- Compensation for easements equals 20% of market value of land.
Standards for Assessment
- Consider land classification, current use, development cost, owner-declared values, selling prices, improvements, size/shape, tax declarations, and local zoning.
- Increase in value due to project not included in compensation.
Ecological and Environmental Concerns
- IA must consider environmental laws and land use regulations.
- Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) required before project initiation except PPP projects.
- Indigenous peoples’ rights and action plans observed where applicable.
Relocation of Informal Settlers
- HUDCC and NHA, in coordination with LGUs and IAs, responsible for establishing resettlement sites.
- Procedure for removing unwilling informal settlers includes court writs for demolition.
- Notification of HUDCC required upon project approval.
Appropriations
- Government must provide adequate budget for acquisition costs including surveys, compensation, relocation, taxes, and administrative expenses.
- PPP projects may require proponents to advance or finance ROW costs.
- Budgeting may use BIR zonal values times factors or DPWH benchmark costs.
Developments Within ROW
- No permitting of incompatible developments within ROW two years from notice of taking.
- Cut-off date established for compensation eligibility.
ROW Survey Documents
- IA submits survey and acquisition documents to LGUs for planning and taxation purposes.
Agency Manual of Procedures
- Each IA must prepare a Manual of Procedures consistent with the Act and IRR detailing acquisition steps, documentation, budgeting, payments, litigation, and management.
- Manual serves as guide for IAs, property owners, GFIs, and IPAs.
Transitory Clause
- IRR applies to all new transactions; ongoing agreements at effectivity are exempt.
Sanctions
- Violations subject responsible officials to administrative, civil, or criminal penalties including suspension, dismissal, and forfeiture of benefits.
IRR Amendments and Repeal
- Committee may reconvene for amendments ensuring consistency with the Act.
- RA No. 8974 and other inconsistent laws repealed.
Effectivity
- IRR effective 15 days after publication in two newspapers of general circulation.