Title
IRR of RA 10752 on Right-of-Way Acquisition
Law
Irr Of Republic Act No. 10752
Decision Date
Jul 22, 2016
The Implementing Rules and Regulations (IRR) of Republic Act No. 10752 ensures that private property owners affected by national government infrastructure projects are promptly paid just compensation for the acquisition of right-of-way, site, or location.

Law Summary

Declaration of Policy

  • Upholds constitutional right against taking private property without just compensation.
  • Ensures prompt payment of just compensation to affected property owners.
  • Aligns with Local Government Code provisions for LGUs.

Definitions

  • Act: Republic Act No. 10752, facilitating ROW acquisition.
  • Implementing Agency (IA): National government offices/entities authorized to undertake infrastructure projects.
  • National Government Projects: Broad spectrum includes highways, railways, ports, airports, power, broadcasting, IT infrastructure, water systems, government buildings, and others.
  • Replacement Cost: Cost to replace affected structures/improvements at current market prices.
  • Right-of-Way (ROW): Property or part thereof used or needed for government projects.

Modes of Acquisition

  • Regular: Donation, Negotiated Sale, Expropriation.
  • Others: Acquisition under Commonwealth Act No. 141, Exchange/Barter, Easement, Subsurface ROW, and other legally authorized modes.

Donation

  • IA may accept property donations as ROW.
  • Deed of donation must be unconditional and state no fraud; donor must reserve enough property for subsistence if an individual.
  • IA pays documentary and transfer taxes; donor pays unpaid real property taxes.

Negotiated Sale

  • Compensation includes market value of land, replacement cost of structures/improvements, and market value of crops/trees.
  • IA may engage Government Financial Institutions (GFIs) or Independent Property Appraisers (IPAs) for valuation.
  • TOR for appraisal services to include project background, deliverables, standards per IRR, and qualifications.
  • Engagement and procurement procedures outlined for GFIs and IPAs, emphasizing accreditation and experience.
  • Replacement cost calculation based on current prices of materials, labor, equipment, overhead, and contractor's profit, with detailed cost components.
  • Owners have 30 days to accept price offer; refusal triggers expropriation.
  • Owners of structures without land rights may be compensated if meeting specific criteria.
  • IA pays CGT, DST, transfer, and registration fees; owner pays unpaid real property taxes.
  • Payment staggered: partial payment upon execution of Deed of Sale and remaining upon transfer or clearing of property.

Expropriation

  • Initiated if owner refuses negotiated sale or negotiation is unfeasible.
  • IA files complaint; immediately deposits estimated value based on BIR zonal valuation, replacement cost, and market value of crops.
  • Court issues writ of possession within 7 working days.
  • Special provisions for missing or disputed owners.
  • BIR and local assessors mandated to conduct zoning and valuation if absent or outdated.
  • Just compensation determined by court within 60 days.
  • Tax payments: IA pays documentary stamp and registration fees; owner pays capital gains and other applicable taxes.

Acquisition under Commonwealth Act No. 141

  • Government reserves ROW strip (up to 60 meters amended by PD No. 635).
  • For original patent holders or gratuitous title acquisitions, IA follows CA 141 provisions.
  • Property owner executes quitclaim; damages for improvements compensated at replacement cost.
  • Temporary government buildings allowed during project, reverts after project completion.
  • IA to assist owners per Executive Order No. 1035.

Exchange or Barter

  • Owner may request exchange of property for equivalent government-owned property.
  • Conditions include value-for-value equivalency, verification of government property's disposition, retention of access to roads, and applicable taxes.

Easement of Right-of-Way

  • Used when portion of property needed is minimal and segregating costs exceed value.
  • IA obtains easement rights while ownership remains with owner.
  • IA pays zonal valuation and replacement cost of improvements.
  • Agreements registered and annotated promptly.

Acquisition of Subsurface ROW

  • Government may use subsurface portion (>50 meters) without affecting surface rights.
  • IA negotiates easement or acquisition for subsurface works closer than 50 meters.
  • Easement price set at 20% of market value; other rules of negotiated sale apply.

Standards for Assessment in Negotiated Sale

  • Market value determined considering:
    • Land classification/use according to zoning plans.
    • Development/improvement costs.
    • Owner declared values.
    • Prices of comparable lands.
    • Replacement cost of improvements.
    • Physical attributes and tax records.
    • Market evidence and fairness to enable rehabilitation of owners.
  • Project-induced value increases excluded.

Environmental and Ecological Considerations

  • IA to consider environmental laws and local ordinances.
  • Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) required except PPP projects.
  • Compliance with Indigenous People’s Act for ancestral domains.
  • Required preparation of environmental and resettlement plans.

Relocation of Informal Settlers

  • HUDCC, NHA, LGUs, and IAs to coordinate resettlement and provide adequate facilities.
  • Enforcement actions include demolition orders post-writ of possession.
  • Procedures under Urban Development and Housing Act observed.
  • Early notification to housing agencies upon project approval.

Appropriations

  • Government to provide sufficient funds in advance covering:
    • Surveys and appraisals.
    • Compensation covering land, improvements, crops, utilities.
    • Resettlement project implementation.
    • Taxes related to acquisition.
  • PPP projects may require proponents to finance ROW initially.
  • Budgeting standards provided for different stages of project preparation.

Developments Within ROW

  • No new developments or permits allowed within ROW for two years from notice of taking unless approved.
  • Cut-off date for compensation excludes structures built after notification.

Survey Documents for Acquired Properties

  • IA submits survey and boundary documents to LGUs for planning and taxation purposes.

Agency Manual of Procedures for ROW Acquisition

  • Each IA to prepare a customized Manual consistent with Act and IRR.
  • Manual includes:
    • Detailed procedures covering donation, negotiation, expropriation, surveys, resettlement, taxes, and documentation.
    • Templates, checklists, workflow charts.
    • Payment compliance enforcement.
  • Serves as reference for IA staff, owners, appraisers.

Transitory Provision

  • IRR applies to all ROW acquisitions except ongoing transactions with already agreed prices.

Sanctions

  • Violation of Act provisions may lead to administrative, civil, or criminal sanctions including suspension/dismissal and forfeiture.

Amendments and Repeal

  • IRR Committee may revise rules consistent with the Act.
  • Repeals RA No. 8974 and inconsistent laws or parts thereof.

Effectivity

  • IRR becomes effective 15 days after publication in two newspapers of general circulation.

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