h 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
c
r
 
S E N A T E  
[Y 
s. NO. 
.,*. _ e '  ' 
Introduced by Senator Juan M. Flavier 
EXPLANATORY NOTE 
The Comprehensive Agrarian Reform Law of 1988 states that "It is the 
policy of the State to pursue a Comprehensive agrarian Reform Program 
(CARP). The welfare of the landless farmers and farmworkers will receive the 
highest consideration to promote social justice and to move the nation towards 
sound rural development and industrialization, and the establishment of owner 
cultivatorship of economic-size farms as the basis of Philippine agriculture." 
(Section 2. Declaration of Principles and Policies). 
Despite these lofty aspirations, the implementation of the program has 
been saddled by the lack of support services to ensure productivity of farmer 
beneficiaries, illegal conversion of lands, landowners' resistance, delay in the 
delivery of agrarian justice and so on. Even those farmers who have been 
issued Emancipation Patents (EPs) of Certificate of Land Ownership Awards 
(CLOAs) have not been spared their own share of difficulties. After prolonged 
engagements with the government and former landowners to obtain EPs and 
CLOAs, the farmers remain uncertain over their claim to the land they are tilling. 
This uncertainty is caused by the fact that EPs and CLOAs are apparently 
viewed as not having the same characteristics as other land titles by landowners 
and even some farmers and judges. In fact, past experiences have shown that 
these EPs and CLOAs can be cancelled anytime though existing laws grant EPs 
and CLOAs the same status as that of any other land title. 


Presidential Decree No. 266 provides that "After the tenant-farmer shall 
have fully complied with the requirement for the grant of title under P.D. No. 27, 
an EP andlor grant shail be issued by the DAR on the basis of a duly approved 
survey plan." Full compliance, in this matter, indudes completion of full payment 
of the awarded agricultural land. In addition, Section 106 stales that "the 
Registry of Deeds (ROD) shall complete the entries on the aforementioned EP 
and shall assign an original cedificate (OCV number in case of unregistered 
land, and in case registered pmpe@, a comsponding fransbr cerlificaffe title 
(TCT) without requiring the surrender of the owner's duplicate of title to be 
canceled." (emphasis ours). Further, Executive Order No. 228, issued on Jufy 
"1, 1987, declares that qualified farmer beneficiaries are deemed full owners of 
the lands awarded to them under presidential Decree No. 27 (Octob0r 21, 1972). 
Republic Act No. 657, on the other hand, provides that "the rights and 
responsibilities of the beneficiary shall commence from the time the Department 
of Agrarian Reform (OAR) makes an award of the land to him, such award shall 
be completed within one hundred eighty (180) days from the time the DAR takes 
actual possession of the land. Ownership of the beneficiary shall be evidenced 
by tbe CLOA, such shall contain the restfktionns and conditions provided for in 
this Act, and shall be recorded in the ROD and annotated on the Certificate of 
7ltle." (emphasis our$). 
Some of us here in Congress may have heard of the cancellation of 
CLOAs in Hacienda Looc, Batangas, Sumilao, Bukidnon and Hacienda Maria, 
Agusan del Sur. These are only some of the 2,555 cases involving cancellation 
of EPs and CLOAs which covers 29,682 hectares of land. To be specific, the 
case of Hacienda Maria in Agusan del Sur invoivss ninety-four (94) farmers that 
were already in possession of the land with titles issued more that ten years ago. 
These titles are now facing cancellation, apparently an the ground that the former 
Ministry of Agrarian Reform has erroneously covered that piece of land under 
Presidentiat Decree No. 27. 


One of the grounds for cancellation under OAR Administrative Order No. 
2, series of 1994 is when “the land is found to be exemptedlexcluded from P.D. 
No. 27/E.O. No. 266 or CARP coverage or to be part of the landowner‘s retained 
areas as determined by the Secretary ar his authorized representative.” On the 
lands voluntarily offered under section 19 of Republic Act No, 6657 but which are 
found to be outside the coverage of CARP. 
M i l e  the grounds for cancellation of EPs and CLOAs under DAR A 0  No. 
2, s. of 1994 are generally valid, setting a prescriptive period for the cancellation 
of EPs and CLOAs is in order. Truly, it is the height of calfousness to cancel EPs 
or CLOAs of farmer beneficiaries who have been, for yaars, diligently amortizing 
payments to their lands. With regard to OAR A 0  No. 3, s. i996, it would also be 
unjust that farmer beneficiaries be made to suffer in a fault they did not have any 
part of. In awarding parcels of land to farmer beneficiaries, it is the DAR that 
negotiates with the landowners and farmer beneficiaries. The latter two parties 
do not have direct negotiation with each other except if the land will be under the 
direct payment scheme. In addition, it is the government and not the farmer 
beneficiaries that determines which lands would be covered by land reform. The 
farmer‘s participation only starts after the DAR has finished negotiations with the 
landowners and EPs or CLOAs are awarded to them. As such, the farmer 
beneficiaries should be regarded as “innocent purchasers for value.” 
This bill has six objectives. First, this legislation reaffirms that EPs and 
CLOAs are land titles under Presidential Decree No. 1529; second, it provides for 
prescriptive periods for the filing of petitions fur the cancellation of EPs and 
CLOAs; third, it provides for compensation to landowners, whose lands were 
erroneously covered by land reform programs; and fourth, it ensures that the 
farmer beneficiaries do not bear the consequenws of the DAR’s errors in 
distributing lands that should have been exempted from coverage of our agrarian 
laws, Fifth, this legislation limits the effect of the Department of Justice Opinion 
0. 44, series of I990 that excludes lands that have been reclassified or even 
without the concurrence of the Department of Agrarian Reform. The DOJ 


Opinion, though not a law, has been continuously cited as a ground for 
cancellation of EPs and CLOAs. 
Finally, it prevents the cancellation of EPs and CLQAs through the 
enactment of laws that further exempt lands from the coverage of agrarian reform 
laws. An example of this is the cancellation of EPs and CLOAs on the ground 
that the landowners were not paid just compensation. Truly, farmer beneficiaries 
should not be deprived of the lands awarded to them if the government is unabie 
to fulfill its duties under the laws. 
Passage of this bill is earnestly sought. 


38 FW12 
THIRTEENTH CONGRESS OF THE REPUBLIC) 
1 
First Regular Session 
i 
OF THE PHILIPPINES 
d 
5 
S E N A T E  
" .* 
l Y  
s. NO. 
Introduced by Senator Flavier 
AN ACT 
ENSURING 
SECURITY 
OF 
TENURE 
FOR 
AGRARIAN 
REFORM 
BENEFIClARIES 
OVER 
LANOS 
AWARDED 
TO 
THEM 
UNDER 
PRESIDENTIAL DECREE NO. 27 (EMANCIPATION OF TENANTS) AND 
REPUBLIC ACT NO. 6657 (COMPREHENSIVE AGRARIAN REFORM LAW OF 
1988), 
PROVIDING 
GUIDELINES 
FOR 
THE 
CANCELLATION OF 
EMANCIPATION PATENTS AND CERTIFICATES OF LAND OWNERSHIP 
AWARDS ON THE GROUNDS OF EXEMPTION AND EXCLUSION, 
RETENTION OR 
NON-QUALIFICATION, DEFINING PENALTIES FOR 
VIOLATIONS THEREOF, AND FOR OTHER PURPOSES 
Be it enacfed by the Senate and the House of Representatives of the 
Philippines in Congress assernbktt: 
SECTION 1. Declaration of Policy. - It is the policy of the State to 
promote social justice and to establish owner cultivatorship of economic-size 
farms as the basis of Philippine agriculture. Towards this end, agricultural lands 
shall be distributed to qualified fanner beneficiaries. Their ownership shall be 
evidenced by Emancipation Patens (EPs) and Certificates of Land Ownership 
Awards (CLOAs). 
SEC. 2. 
Interpretation of this Act. - All doubts pertaining to the 
interpretation of this Act shall be resolved in favor of the farmer-beneficiaries to 
promote social justice. 


SEC, 3. Indefeasibility of ErnandpatSon Patents and Certificates of 
Land Ownership Awards. - Emancipations Patents (EPs) or Certificates of 
Land Ownership Awards (CLOAs) are titles under the operation of the Torrens 
System, as such, they shall enjoy the same security afforded to all titles under 
the Torrens system of Registration; Provided, however, that: 
I) The former landowners and other Qualified beneficiaries., if any, 
have been duly notified by the DAR within fifteen (I 
5) days before the Registry of 
Deeds has registered an EP or CLOA in accordance with these rules: 
a. 
The notice shall be served bv handlina a CODY thereof to the 
landowners in mrson. or if he refuses to receive and sian far 
it, bv tendering it to him; 
b. 
If, for iustifiable causes, the notice can not be served to the 
former landowner in oerson. service may be smcted (1) by 
leavina the CQDV of the notitice.at the former landowner's 
residence with some Derson of suitable aae and discretion 
residina therein: or (2) bv leaving the COPV s t the 
landowner's office or reaular place of business to a 
cornwtent oerson in charae thereof; 
e. 
Should there be other Qualified beneficiaries as defined in 
Section 22 of R.A. No. 6657 and the orovisions of P.D. No. 
27'. the service of notice shall be effected in accordance with 
anv of the two (2) immediatelv Drecedina paraaraphs 
whichever is amticable; 


d. 
In all cases. a CODV of the notice shall be posted in a 
consPicuous place in the citv or municiDal buildina and 
baranaav hall of the Place where the property is located; 
The former landowners have been paid just compensation in 
2) 
accordance with agrarian reform laws; 
Provided, further, that this provision on notification of landowner's 
other aualified beneficiaries. if any, shall apply prospectively; and Provided, 
finally, that no tiller of the soils or former landowner has filed a claim within one 
(1) year from notice of issuance of such titles. 
For this purpose, farmer beneficiaries who received EPs and CLOAs 
pursuant to the Comprehensive Agrarian Reform Law are hereby deemed 
innocent purchasers for value and are entitled to the rights and protection as 
such persons under existing laws. 
SEC. 4. Coverage.- This act shall cover all actions for the cancellation of 
EPs or CLOAs issued to agrarian reform beneficiaries under Presidential Decree 
No. 27 and Republic Act No. 6657. The Petition for cancellation may be filed on 
the ground that said lands are excluded or exempted from distribution under 
agrarian laws or that they are found to part of the landowner's retained area or 
that they were issued to unqualified beneficiaries. 
SEC. 5. Who may Fife Action and When. - only the for landowner of the 
property or his heirs or assianees, or the qualified beneficiary or his heirs or 
assignees may file an action for the cancellation of an EP or a CLOA within the 
period of one year from the date of registration of the EP or CLOA; Provided, 
however, that for EPs and CLOAs issued before the enactment of this Act. the 
former landowner or the aualified beneficiarv mav file a petition for cancellation 
1 


for grounds stated under this Act onlv within a rreriod of one vear from the time of 
reaistration of the said EP or CLOA or within three (31 months from the' effectivity 
of this Ad. wh ichever Period is more favorable to him. 
SEC. 6. Where to File Action. - The Provincial Agrarian Reform 
Adjudicator of the Department of Agrarian Reform Adjudication Board where the 
land is located shall have exclusive jurisdiction 0v0r petitions for CLOA or EP 
cancellation. 
SEC. 7. Prescriptive Period. - The following rules shall be observe in the 
filing of petitions far the cancellation of EPs or CLOAs: 
a) 
No petition for cancellation of an EP or CLOA shall be entertained if 
the same is filed later that one year after the date of registration of 
the EP or CLOA or within three (31 months from the effectivitv of this 
&; Pmvided, the petitions for the cancellation of EPs or CLOAs 
for grounds other than the grounds provided in Section 4 hereof 
shall be pursued under the provisions of Presidential Decree No. 
1529, other agrarian laws, and other administrative issuances; 
If the EP or CLOA was i$sued while there is a pending case for the 
exclusion or exemption of the subject land or another beneficiary 
claims to be the actual tiller of the soil, the prescriptive period shall 
be reckoned from the date of the final decision of the said case. 
SEC. 8. Other Prohibitions. - 1) The reclassification of agricultural 
lands to anon-agricultural uses by government agencies without the concurrence 
of the Secretary of the Department of Agrarian Reform prior to June 15, 1998, 
will not exempt or exclude said properties from the coverage of the 
b) 


comprehensive agrarian reform program, and the same shall not constitute a 
valid ground for the cancellation of an EP or CLOA; 
2) Any amendment to agrarian reform laws issued subsequent to 
the distribution of an EP or CLOA shall not be a ground for its 
cancellation; 
3) The issue of just compensation, shall be decided by agrarian 
reform courts ir7 accordance with aararian reform laws but shalt 
not be a ground for the cancellation of an EP or CLOA. 
Sec. 9. Effect of Cancellation. - If pursuant to the provisions of this Act, 
an EP or a CLOA is subsequently cancelled, all amortizations, includina 
interests, paid by the farmer beneficiaries shall be reimbursed to said 
beneficiaries. Provided, however, that said farmer beneficiaries shall also be 
entitled to all rights and benefits accruing to purchasers in good faith under the 
New Civil Code, the Property Registration Decree, and other applicable laws. 
SEC. IO. Recovery of Damages. - In case recovery of the property is 
barred, the owner may recover damages pursuant to sections 99 to 107 of 
Presidential Decree No. 1529. 
SEC. 111. 
Duty df the DAR. - In case an EP or CLOA is cancelled 
pursuant to the provisions of this Act, the DAR shall inform the affected farmer of 
the decision within fifteen (1 5) davs therefrom and discuss alternative 
arrangements to be pursued, including relocation to another site or assistance in 
negotiating with concerned agencies for direct acquisition in buying the land, if 
the farmer expresses interest therein. Provided, however, that in any case, the 
DAR shall ensure that the affected beneficiaries are provided with the available 


lands and shall provide for the safe relocation of the farmer to such new land 
yithin a reasonable Deriod of time. 
SEC. 12” Appeals. - Appeals shall be governed by the Department of 
Agrarian Reform Adjudication Board implementing rules and regulations 
promulaated oursuant to P.D. No. 27 and R.A. 6657 on administrative 
adiudication and iudiciai review. 
SEC. 13. Penal Provisions. - Any person wha causes the cancellation of 
EPs or CLOAs in violation of the provisions of this Act shall be punished by 
imprisonment from six (6) years and one (1) day to twelve (12) years or a fins 
euuivalent to the value of the land but not less than one hundred thousand pesos 
(P100,000.00) ‘for every violation thereof, or both imprisonment and fine at the 
discretion of the Coud. 
In addition to the imprisonment andlor fine im~osed bv the weceding 
parwaoh. anv OAR provincial or municioal aararian reform officer. who causes 
issuance of EPs and CtQAs to two or more different farmer-beneficiarias 
resultina in multiole issuances of EPs and CLOAs over the same parcel of land, 
shall suffer the accessow pe naltv of pemtual absoiute disaualification as 
$@fined in Article 30 of the Revised Penal Code. 
SEC. 14. Implementing Rules. - the Department of Agrarian Reform 
shatl issue the necessary rules and regulations consistent with the provisions of 
this Act. 
SEC. 18, 
Repeatlng Clause. - Department of Agrarian Reform 
Administration Orders No. 02, series of 1994 and 03, series of 1996 and 
Department of Justice Opinion No. 44, series of 1990 are hereby modified 


accordingly. Ali other laws and implementing rules and regulations inconsistent 
herewith are hereby repealed or modified accordingly. 
SEC. 16, Separability Clause. - if any part of this Act is declared illegal 
or unconstitutional by a competent court, the same shall not affect the other 
provisions of this Act. 
SEC. 17. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the official Gazette or in two (2) newspapers of general 
circulatian. 
Approved,