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.