Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 5838

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

Majority of the poor in rural areas depend on agriculture as their
primary livelihood and source of income. This entails that part of the
solution to poverty reduction is through reforms in the Agriculture sector.

Commonwealth Act No. 141, as amended, or the Public Land Act
served as an important measure for supporting our hard working farmers by
providing the Agricultural Free Patents as a mechanism for land ownership.
However, there are restrictions under said law on translating agricultural
land title become to become tradable and bankable hindering the farmer
entrepreneur to improve their agricultural productivity.

First among these restrictions is the five-year prohibition for the
holder of the agricultural free patent to sell and mortgage their land from the
issuance of the patent. Another restriction is on the right to repurchase,
wherein upon conveyance, the original owner, his widow and legal heirs has
the right of repurchase within five years from the date of sale.

Due to these restrictions, there is uncertainty on the part of the
buyers to make additional investments and lending institutions, such as
bank, to lend money to the patentee which uses their land as collateral.
Therefore, these restrictions prevent the holder of the agricultural free
patent from the much-needed access to credit for getting capital to create
investments, jobs, increase in productivity and reduce poverty in rural
areas.


This bill seeks to remove the current restrictions on agricultural free
patents under the Public Land Act to make these agricultural land titles
immediately tradeable and bankable.

In view of thereof, early consideration and approval of this bill is
earnestly sought.

fepresentative
24 District, Oriental Mindoro


Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

5838

House Bill No.

Introduced by Honorable REYNALDO V. UMALI

AN ACT
REMOVING THE RESTRICTIONS IN THE REGISTRATION OF LAND
TITLES UNDER SECTIONS 118, 119, AND OTHER RESTRICTIONS
AGAINST ENCUMBRANCE OR ALIENATION ON FREE PATENTS ISSUED
UNDER SECTION 44 OF COMMONWEALTH ACT NO. 141 OR THE
PUBLIC LAND ACT, AS AMENDED

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION. 1. Short Title. - This Act shall be known as the “Agricultural
Free Patent Reform Act of 2017”.

Sec. 2. Declaration of Policy. - It is the policy of the State to remove the
restrictions on free patents to allow the efficient and effective utilization of
these lands to contribute to wealth creation, entrepreneurship, and
economic development.

Sec. 3. Removal of Restrictions. - Agricultural public lands alienated or
disposed in favor of qualified public land applicants under Section 44 of
Commonwealth Act No. 141, as amended, shall not be subject to restrictions
regarding encumbrances, conveyances, transfers, or dispositions imposed
under Sections 118 and 119 thereof. Agricultural free patent shall now be
considered as title in fee simple and shall not be subject to any restriction
against encumbrance or alienation.

Sec. 4. Retroactive Effect. - This Act shall have retroactive effect and any
restriction regarding encumbrances, conveyances, transfers, or dispositions


imposed on agricultural free patents issued under Section 44 of
Commonwealth Act No, 141, as amended, before the effectivity of this Act
shall be removed and are hereby immediately lifted.

Sec. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations,
or other issuances or parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

Sec. 6. Separability Clause. - If any portion or provision of this Act is
declared unconstitutional, the remainder of this Act or any provision not
affected thereby shall remain in force and effect.

Sec. 7. Effectivity Clause. - This Act shall take effect after fifteen (15) days
following the completion of its publication either in the Official Gazette or in
a newspaper of general circulation in the Philippines.

Approved,