LAND ADMINISTRATION SYSTEM IN THE PHILIPPINES
Hernando De Soto ( a noted Peruvian Economist) According to him: * Capitalism’s success in the West depends largely on a formal system of documented property – the key to unlocking capital. * The basis of a market economy is CAPITAL.
What is the basis of capital as an economic tool?
Consistent Property Law
Without an efficient and effective system to delineate and protect ownership rights‌ PROPERTY ASSETS could not be used to its full economic potential and would remain as DEAD CAPITAL.
DE SOTO sighted… •
Approximately 5.855 trillion pesos in 2000 ( DEAD CAPITAL in the Philippines)
…it was then projected to increase in 2010 up to 11.552 trillion pesos
A Good Land Administration System aids in the :
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SOCIAL
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ECONOMIC
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ECOLOGICAL DEVELOPMENT OF A SOCIETY
AN OVERVIEW OF THE LAND ADMINISTRATION AND MANAGEMENT IN THE PHILIPPINES
LAND ADMINISTRATION -
A SYSTEM IMPLEMENTED BY THE STATE TO ADMINISTER LAND RIGHTS INCLUDES THE FOLLOWING PROCESSES:
A.
To record and register private rights on state lands
B.
To record, register, and publicize rights the grants or transfer of those land rights through sale, gift, encumbrance, subdivision., secured transactions, etc.
C.
To manage fiscal aspects related to land rights
D.
To manage state lands
LAND MANAGEMENT
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A system implemented by the state to manage the allocation and use of land resources and the social, economic, and environmental issues that relate to its allocation and use.
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- it is implemented within a range of policy and legislative instruments including:
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It is implemented within a range of policy and legislative instruments including:
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1. land use planning
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2. developmental application/approvals
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3.land administration
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4.land taxation
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5. environment protection
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6. cultural and heritage protection
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7. renewable and non-renewable resource management and development
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8.foreign investment controls, etc.
PHILIPPINE LAND AREA 30 MILLION HECTARES (total land area) distributed as follows:
*50%- 15 million hectares (FORESTLAND) *47%-14.1 million has. (ALIENABLE and DISPOSABLE LANDS)
*3%- 900,000 has. (UNCLASSIFIED LANDS)
THREE CATEGORIES OF LANDS
1.
PROTECTED AREAS
2.
ALIENABLE AND DISPOSABLE LANDS
3.
PRIVATELY OWNED LAND
CONSTITUTIONAL AND LEGAL FRAMEWORK
PROPERTY RIGHTS --anchored on the Philippine Constitution, Article XIII, sec I, SOCIAL JUSTICE AND HUMAN RIGHTS.
Land Tenure •
Land tenure for urban and rural areas is either by: -absolute ownership (fee simple or freehold)
-less than absolute, i.e., subject to limitations, qualifications or restrictions, such as leasehold (w/ various terms, time period, and conditions; and usufruct, where possession or occupation is with or without rental ,respectively.
Land Ownership and Transfer
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GENERAL RULE:
Only Filipino citizens and corporations at least sixty percent of the capital of which is owned by Filipinos are entitled to acquire and owned land in the philippines.
LAND TITLING AND REGISTRATION •
Modes of registration of title
-Torrens system (Registry of Land Titles and deeds in every city and municipality,) -System of recording unregistered lands
The LAND SUBDIVISION was covered by the laws:
Property Registration Decree ( PD 1529, June 1978)
and
Subdivision and condominium Buyers Protected Decree ( PD 957, July 1976).
PUBLIC LAND MANAGEMENT Land Management activities of the Government:
1.
Land Use Allocation
- undertaken by the Local Government Unit (LGU) as authorized by the Local Government Code of 1991 (R.A. 7160)
- Municipalities and component cities shall adopt a Comprehensive land use plan (CLUP) in coordination with the approved provincial comprehensive land use plan enacted to integrate zoning ordinances; -highly urbanized and non-component cities shall adopt a CLUP without the need for reference to provincial land use plan
2. Land Reclassification
Reclassification from agricultural to other uses by the LGU’s thru an ordinance after conducting public hearings.
Limit or range: a.
Highly urbanized and independent component city: 15% of the total agricultural area;
b.
Component city or 1st to 3rd class municipality: 10%
c.
4th to 6th class municipality: 5%
Condition for conversion: ďƒź
the land ceased to be economically feasible and sound for agricultural purposes;
ďƒź
the land shall have substantially greater economic value for residential, commercial or industrial purposes as determined by the local legislative body concerned.
3. Land Acquisition
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Urban Development and Housing Act (RA 7279) provides that the modes of acquiring lands for the purpose of planned and rational development and the provision for socialized housing as follows:
- *LAND SWAPPING - *LAND ASSEMBLY OR CONSOLIDATION - *LAND BANKING
4. Land Disposition
*Sales Patent- thru public auction *Homestead Patent-settlement of undeveloped areas by gratuitously conveying to individuals parcels of land subject to conditions (residence in the cultivation of land within a certain timeframe). *Free Patent- administrative process under Public Land Act for those who could not establish sufficient legal basis for title but had occupied the land for the length of time prescribed by the law.
*Voluntary confirmation-for those who have claims to the
title to present their case voluntarily before the courts.
*Compulsory confirmation- Cadastral Act of 1913 where government declared specific cities or municipalities to be subject to comprehensive cadastral survey where all lands in the LGU’s were included in the survey and their claimants identified.
5. Land Development and its Regulation
- Government by both national laws and ordinances. Policy and standard setting review of local development plans and zoning ordinances and resolution of land use conflicts are vested in a national agency, the Housing and Land Use Regulatory Board (Executive Order 648).
6. Conservation of Lands
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Effected through the declaration of parks and opens spaces, green belts and buffer zones, including the preservation of historical and cultural landmarks, with or without improvements.
Problems on Property Valuation and Taxation LAND VALUATION
significant political influence
Multiple, conflicting valuation methodologies
Absence of uniform valuation standards
Outdated, distorted real property values
Limited access to information, use of information technology in the appraisal process
Limited provisions for formal education and training of assessors /appraisers
TAXATION
multiple taxes on land ownerships and transfers
high transaction taxes discourage formal transactions and lead to opportunities for inappropriate practices
Weak enforcement of land-related taxes
Fish-bone Diagram BIR zonal valuation has no fixed statutory review period
Mandated regular revision of SMVs is not conducted by local governments
Lack of monitoring Valuation is and evaluation on vulnerable to valuation matters and political pressure assessors
Over 23 gov’t agencies undertake real property valuation using different standards and methodologies
Lack of uniform valuation standards
A snapshot of the compliance rate of LGUs to the mandate SMV revision nationwide
*low prop. Tax collection *inefficient land markets *inequitable distribution of tax burden *lack of confidence in the val. System Confusion among users
Land Sector Development PROBLEMS IN THE LAND SECTOR
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limited access to land records
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a lack of transparency in land record systems and poor public access to records
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Institutional and policy arrangements that are ambiguous, unclear and ineffective
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a rigid and unresponsive land classification system
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A land conversion policy and procedures that cannot respond to the growing demand for urban development and protect forest and protected areas
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The inability to meet the demand to supply land for housing, commerce and industry is forcing people into informal arrangements
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an inequitable property taxation system due to a number of factors including: SMVs that do not reflect market values; an incomplete tax roll; and poor tax collection efficiency
Policy Statements (Strategies) A. ENABLING ENVIRONMENT
1.
Strengthen leadership and management of land administration and management reform;
2.
Devolve the LAM services to the local level with NGAs providing policy and technical support within a framework that promotes efficiency, responsiveness, transparency, and accountability;
3.
Enhance land sector capacity so that highly competent professionals, practitioners and workers supported with modern technology and resources available at the national and local levels and in the private sector
B. LAND ADMINISTRATION
4. Improve the efficiency, responsiveness, transparency And accountability of LAM Services; 5.Develop and implement an appropriate cadastral framework too support the land tenure, land taxation and land management systems at the LGU level;
6.Complete titling and registration of all untitled lands and record all tenure rights including those of A and D areas in the new cadastral framework;
7.Develop and implement an efficient and affordable dispute resolution Mechanism;
C. LAND INFORMATION MANAGEMENT
8. Establish a LIM collaborative governance framework policies for standards and procedure and a national spatial data infrastructure to support an integrated national land information system;
9. Establish an integrated land information system that will support land administration services;
10. Make streamlined land and property services accessible and available online;
D. PUBLIC LAND MANAGEMENT
11. Devolve and decentralize public land management;
12. Adoption of a land management strategy that focuses on biodiversity conservation, rehabilitation and sustainable use of the country’s land resources;
13. Optimize the use of disposable public and governmental land assets and resources based on best uses balancing economic, environmental and social development objectives;
14. Strengthen LGU revenue thru the local real property tax to achieve better local tax efficiency, a wider tax base and greater equity;
15. Promote and roll-out the adoption of the Philippine Valuation Standards and compatible valuation methodologies in the public and private sectors;
16. Reform national government land-related taxes to accord with the SMVs prepared under the PVS to ensure that taxes are not overly onerous and a barrier to participation in the formal system.
KEY SUCCESS FACTORS ďƒź
The reforms will require strong leadership and changes to policies, legislation, institutional arrangements and LAM processes and procedures.
ďƒź
A consensus among LAM institutions and stakeholders on a long-term reform agenda has to be secured to set out the strategic to set out the strategic direction and the detailed plan that will be followed by the sector.
ďƒź
A change in strategy from a highly centralized to a decentralized approach and devolved government structures and the development of partnerships with LGUs in implementing LAM reform.
THE END