Claiming What’s Fair:

A Primer on Expropriation and Just Compensation

Prepared by:

Augusto B. Agosto
http://www.abagosto.com

SOCIETY OF LITIGATION VALUATION EXPERTS (SOLVE)

 

Introduction:

As the Philippines moves forward with its ambitious “Build Better More” program under the leadership of President Ferdinand R. Marcos Jr., the government has approved 194 high-impact priority projects under the Infrastructure Flagship Projects (IFPs). These projects, amounting to approximately P9 trillion, are expected to significantly strengthen the country’s infrastructure and propel economic growth. The National Economic and Development Authority (NEDA) Board, chaired by President Marcos Jr., has played a crucial role in approving these projects, aiming to create a more robust and sustainable future for the nation.

The approved list of IFPs encompasses a diverse range of sectors, including irrigation, water supply, flood management, digital connectivity, health, power and energy, agriculture, and other essential infrastructure. Some of the notable projects included in the new list are the Panay Railway Project, Mindanao Railway Project III, North Long Haul Railway, San Mateo Railway, the NAIA or Ninoy Aquino International Airport Rehabilitation Project, Ilocos Sur Transbasin Project, and the Metro Cebu Expressway. With such a comprehensive array of projects, the government aims to address critical infrastructure needs and improve the overall quality of life for its citizens.

However, with the implementation of these projects, some landowners or property owners may be affected due to the expropriation process. As the government proceeds with its “Build Better More” endeavors, it anticipates a significant increase in expropriation proceedings. To address this, the Supreme Court has designated special courts to handle the expected surge of over 900 expropriation cases. The projects, including the Cavite-Laguna Expressway (CALAX) Project and the NLEX SLEX Connector Road Project, necessitate the acquisition of right-of-way for the government’s priority projects in cities such as Imus, Trece Martires, Dasmariñas, Tagaytay, Caloocan, and Manila.

It is essential for landowners and property owners to be well-informed about the expropriation process and their rights throughout the implementation of these priority projects. This primer aims to provide guidance on the expropriation process, ensuring that property owners understand their rights and receive just compensation as they contribute to the development of a more prosperous and connected Philippines. Together, we can build a stronger and more resilient Philippines that benefits all its citizens.

Understanding Expropriation

Expropriation is a power granted to the Philippine government to take private property for public use or purpose, as stated in Article III, Section 9 of the 1987 Philippine Constitution. This provision ensures that private property may only be taken for public use and upon payment of just compensation to the affected property owners.

Article III, Section 9 of the 1987 Philippine Constitution reads, “Private property shall not be taken for public use without just compensation.” This constitutional provision reflects the principle of eminent domain, which is a vital tool for national development and infrastructure projects. While expropriation is essential for the progress and growth of the country, it can be a sensitive issue for property owners, as they may face the possibility of losing their valuable assets.

What is just compensation?

Just compensation refers to the fair and full payment that the government is required to provide to the private property owner when their property is taken for public use. It is a constitutional right of property owners to be compensated fairly for the loss they incur due to the expropriation of their land, building, or other assets.

The concept of just compensation is enshrined in the Philippine Constitution, specifically in Article III, Section 9, which states that private property shall not be taken for public use without just compensation. This provision ensures that property owners are protected from arbitrary or unjust takings by the government and that they receive fair and adequate compensation for their property. It strikes a balance between the legitimate needs of the government for development projects and the protection of individual property rights.

As a property owner, you have the right to contest the amount of compensation offered by the government. You can seek legal recourse and present evidence to support their claim for higher compensation. The courts play a crucial role in resolving disputes and arriving at a just and equitable compensation amount.

Your Rights as a Property Owner

• Right to Just Compensation: The Philippine Constitution guarantees that private property shall not be taken without just compensation. Just compensation is the fair market value of your property at the time of its taking, taking into account its highest and best use.

• Right to Due Process: You have the right to be notified of the government’s intent to expropriate your property and to participate in the proceedings. You have the right to be heard and present evidence to support your claim for just compensation.

• Right to Challenge Expropriation: You have the right to contest the government’s acquisition of your land if you believe that the purpose of taking is not for public use or that the process is not in accordance with the law.

• Right to Negotiate: In some cases, the government may opt for negotiated sale rather than expropriation. You have the right to negotiate the terms of the sale, including the compensation amount.

Here’s an in-depth explanation of the expropriation process:

• Identification of Public Use: The process begins with the government identifying a project or purpose that serves the public interest, such as building roads, schools, hospitals, or other infrastructure. The project should be for the general welfare and benefit of the public.

• Negotiations and Offer: Before initiating formal expropriation proceedings, the government or its authorized agency will attempt to negotiate with the property owner for the acquisition of the property. An offer for just compensation will be made to the owner based on the government’s valuation or assessment.

• Property Appraisal: As part of the negotiation process, the government will conduct an appraisal to determine the market value of the property. You, as the property owner has a right to conduct an appraisal as your guide in the negotiation process. This is typically done by licensed real estate appraisers who consider factors like the property’s location, size, zoning, and potential uses.

• Notice of Intent to Expropriate: If negotiations fail to reach an agreement, the government will issue a formal notice of intent to expropriate the property. This serves as an official declaration that the government is taking the property for public use.

• Filing of Expropriation Complaint: Following the notice, the government will file an expropriation complaint in court, initiating legal proceedings. The complaint must include details about the property, the purpose of the expropriation, and the just compensation offered.

• Appointment of Commissioners: The court will appoint three impartial commissioners, typically experts in real estate appraisal or valuation, to determine the just compensation for the property. The commissioners will conduct an independent assessment of the property’s value.

• Property Inspection and Evaluation: The commissioners will conduct a thorough inspection of the property and gather relevant information to make an appraisal. They will consider factors like the property’s physical characteristics, neighborhood, zonal value, assessment value, improvements, and potential for development.

• Commissioner’s Report: After the inspection and evaluation, the commissioners will submit their report to the court, detailing their findings and the recommended just compensation amount.

• Court Proceedings and Decision: Both parties will have the opportunity to present evidence, including expert testimonies, before the court. The court will then review the commissioners’ report and consider the arguments from both sides before rendering a decision on the just compensation.

• Payment of Just Compensation: Once the court issues its decision, the government will be required to pay the determined just compensation to the property owner. The payment should be in full and in cash unless the property owner agrees to accept other forms of payment.

• Appeals: Either party may appeal the court’s decision if they believe there were errors or omissions during the proceedings. The appellate court will review the case and may affirm, modify, or reverse the lower court’s decision.

Property owners must be well-informed and obtain legal counsel throughout the expropriation process to guarantee their rights are safeguarded and they receive fair compensation for their property.

Navigating the expropriation process requires knowledge, patience, and vigilance. Remember, you have the right to receive just compensation for your property. With the support of experts and a thorough understanding of the process, property owners can confidently navigate through the challenges of expropriation and protect their valuable assets.

What is the role of real estate appraisers in the expropriation process?

Real estate appraisers play a vital role in the expropriation process. Their primary responsibility is to aid the court in estimating the market value of the property that is subject to expropriation. Here are the key roles of real estate appraisers in the expropriation process:

• Property Valuation: Real estate appraisers are responsible for conducting a thorough evaluation of the property’s value. They consider various factors such as the property’s location, size, condition, and potential uses. The appraisal report serves as the basis for determining the just compensation that the property owner is entitled to receive.

• Market Value Assessment: Appraisers are tasked with determining the market value of the property, which is the price that a willing and informed buyer would pay to a willing and informed seller in an open market. This value ensures that property owners receive reasonable compensation for their properties.

• Expert Testimony: In some cases, real estate appraisers may be called to provide expert testimony in court. They present their appraisal reports and explain their valuation methods to help the court in arriving at a fair and just compensation amount.

• Compliance with Standards: Real estate appraisers are required to adhere to professional standards and guidelines in conducting their valuations. In the Philippines, appraisals must follow the rules and regulations set forth by the Professional Regulation Commission and the Philippine Valuation Standards (PVS) to ensure accuracy, reliability, and consistency in the valuation process.

• Negotiation Support: Appraisers may assist both the property owner and the acquiring agency in negotiations. They can provide a neutral perspective and help facilitate fair discussions between the parties to reach a mutually acceptable compensation amount.

• Legal and Administrative Requirements: Appraisers need to be knowledgeable about the legal and administrative procedures involved in the expropriation process. They must be well-versed in the relevant laws and regulations to ensure that the valuation process complies with all legal requirements.

Uphold Your Rights

Property owners should be proactive in understanding their rights and the legal intricacies of expropriation. It emphasizes the need to consult experts, gather relevant documentation, and actively participate in the process to ensure a fair and just outcome. By standing up for their property rights and being well-informed, property owners can navigate the challenges of expropriation with confidence and protect their interests.

• Consult with Experts: Seek legal counsel and consult with real estate appraisers experienced in expropriation cases. They can help you understand the value of your property and guide you through the legal process.

• Know Your Property’s Value: Understanding the market value of your property and its potential for development will enable you to negotiate better terms with the government.

• Document and Gather Evidence: Collect all relevant documents and evidence related to your property, such as title, tax declarations, and appraisal reports. This information will be crucial in determining just compensation.

• Participate Actively: Engage in the expropriation proceedings and attend hearings to present your case effectively. Be proactive in protecting your rights throughout the process.

Remember, knowledge is power, and taking action is essential in safeguarding your property. By taking action and asserting your rights, you can safeguard your property and ensure that the government’s exercise of expropriation is fair, just, and in the best interest of all parties involved. Remember, being informed and proactive can make a significant difference in the outcome of the expropriation proceedings. Stand up for your property rights and ensure that you receive the compensation you rightfully deserve.

What is SOLVE?

SOLVE or the Society of Litigation Valuation Experts stands as a groundbreaking and first-of-its-kind organization in the Philippines, wholly dedicated to the expertise of litigation valuation. Our nationwide network comprises esteemed professionals from various regions, bringing together their vast experience and knowledge in the field of litigation appraisal.

At SOLVE, our mission is clear – to advance the field of litigation appraisal and serve as a guiding light in the complex landscape of valuation legal disputes. With a commitment to upholding the highest standards of professionalism and integrity, we strive to make a lasting impact on the appraisal profession while promoting justice in the legal system of our country.

Our esteemed members come from diverse backgrounds and regions across the Philippines, making us a truly nationwide organization. This diverse expertise allows us to understand the unique challenges and intricacies of valuation in various local contexts.

Need Our Help? Contact a SOLVE Expert Near You!