Title
Supreme Court
Right-of-Way Acquisition for Gov't Projects
Law
Republic Act No. 10752
Decision Date
Mar 7, 2016
Republic Act No. 10752, also known as 'The Right-of-Way Act,' streamlines the acquisition process for right-of-way sites in the Philippines, ensuring prompt compensation for property owners and considering ecological impact, while also mandating the establishment of resettlement sites for affected informal settlers.

Law Summary

Declaration of Policy

  • Guarantees private property shall not be taken for public use without just compensation as mandated by the Constitution.
  • Emphasizes prompt payment of just compensation for property acquired for national government infrastructure projects.

Definition of National Government Projects

  • Covers all national infrastructure projects, public service facilities, engineering works, and service contracts.
  • Includes projects by government-owned and controlled corporations.
  • Encompasses projects under Build-Operate-Transfer arrangements and related activities like site acquisition and construction.
  • LGUs may adopt this Act for their infrastructure projects subject to Local Government Code provisions.

Modes of Acquiring Real Property

  • Acquisition may be through donation, negotiated sale, expropriation, or other legal modes.
  • Specific rules apply for lands under the Public Land Act.
  • Government entities may use donation-type acquisitions when landowners are government-owned or controlled corporations.
  • Government has right to access subsurface portions of lands for infrastructure development beyond 50 meters from the surface.

Rules on Negotiated Sale

  • Implementing agency must offer:
    1. Current market value of land.
    2. Replacement cost for structures and improvements.
    3. Market value of crops and trees.
  • Price determined through accredited appraisers or government financial institutions.
  • Property owner given 30 days to accept; refusal triggers expropriation.
  • Special protection for certain occupiers of structures without ownership rights if Filipino citizens meeting specific criteria.
  • Taxes and fees handled: implementing agency pays capital gains tax, documentary stamp tax, transfer tax, registration fees; owner pays unpaid real property tax.
  • Payment schedule divided into initial payment upon sale execution and remaining payment upon land clearance and title transfer.

Guidelines for Expropriation Proceedings

  • Implementing agency initiates expropriation through legal counsel.
  • Upon complaint filing, must deposit with court:
    1. Value based on BIR’s zonal valuation.
    2. Replacement cost for improvements.
    3. Market value of crops/trees.
  • Court then issues writ of possession ex parte within 7 working days.
  • Procedures for cases with unknown, missing, or disputed owners.
  • BIR and local assessors mandated to establish or update land classifications and zonal valuations within 60 days.
  • Provisions for urgency projects using valuations of similar adjacent lands.
  • Final compensation determined by court if contested, payable within 60 days of judgment.
  • Implementing agency pays documentary stamp, transfer tax, registration fees; owner pays capital gains tax and unpaid real property tax.

Standards for Property Valuation

  • Factors considered include:
    • Property classification and suitable use.
    • Development costs.
    • Owner’s declared value.
    • Selling prices of similar lands nearby.
    • Compensation for disturbance and improvements.
    • Size, shape, location, tax declarations, zonal valuations.
    • Evidence including ocular inspection.
    • Ability of owner to acquire equivalent land for rehabilitation.
  • IRR to provide detailed terms of reference for appraisers.

Ecological and Environmental Considerations

  • Implementing agencies must consider environmental laws and local ordinances before undertaking projects.
  • Must align with relevant provisions of the Local Government Code.

Relocation of Informal Settlers

  • HUDCC and NHA, in coordination with LGUs and implementing agencies, responsible for establishing resettlement sites with basic services.
  • LGUs administer resettlement sites.
  • Court may issue writ of demolition for removal of structures by informal settlers refusing to vacate after writ of possession.
  • Procedures under the Urban Development and Housing Act to be observed.

Appropriations for Right-of-Way Acquisition

  • Government to provide funds in advance for:
    • Surveys and appraisals.
    • Compensation for affected property.
    • Resettlement projects and related activities.
    • Administrative expenses and taxes related to acquisition.
  • PPP projects may include provisions for proponents to finance or advance right-of-way costs.

Regulation of Developments Within Declared Right-of-Way

  • No new development or issuance of permits within right-of-way two years after notice of taking unless authorized.

Sanctions

  • Officials violating provisions subject to administrative, civil, or criminal sanctions, including suspension, dismissal, and forfeiture of benefits.

Implementing Rules and Regulations (IRR)

  • A committee with representatives from key government departments to prepare IRR within 60 days.

Transitory Clause

  • The Act applies to all right-of-way transactions except those already satisfactorily concluded with signed agreements.

Separability Clause

  • Invalidity of any provision does not affect other provisions remaining in force.

Repealing Clause

  • Republic Act No. 8974 and inconsistent laws repealed or amended.

Effectivity

  • Takes effect 15 days after publication in the Official Gazette or newspaper of general circulation.

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