According to the National Economic Development Authority, over 3,600 projects are in the pipeline and be implemented through 2028. Land acquisition and expropriation of lands are inherently part of these projects. An expropriation happens when a governmental entity (known as the Implementing Agency) acquires land without the owner’s permission. The Right of Way Act outlines this privilege. The Act specifies whether there is an expropriation public purpose, the steps that the Agency and affected owners must take, any compensation rights, and any terms and conditions that must be offered. When confronted with an impending expropriation, a property owner may find it challenging to comprehend this highly technical and sophisticated area of law.

Prior to expropriation, the expropriating agency will frequently try to negotiate a deal with a property owner. The agency, however, has the jurisdiction to seize what is necessary in accordance with the Act if they are unable to reach an agreement or the owner is unwilling to cooperate. The owner will thereafter have little control over what land is taken and when, but she or he can bargain for a reasonable compensation.

Negotiation Phase

Before the expropriation process begins, the property owner is given thirty (30) days to decide whether or not to accept the offer as payment for his property. During this period, the Agency may approach a property owner with an offer, and attempt to negotiate a voluntary purchase. If this fails, or the owner refuses to accept the offer, the next step is for the implementing agency to initiate expropriate proceedings.  

Once you receive an Offer you have two options: first, you may accept the Offer and receive full and complete payment of compensation for the expropriation; or second, you may not accept the Offer and continue to investigate the valuation further and make any additional claims for compensation in an expropriation proceeding.

The informal negotiation phase can be the landowners best opportunity to reach a settlement as easily as possible, but there might be roadblocks. Perhaps your differences regarding the compensation’s value are too great. Or perhaps there is too much ambiguity over how the expropriation will affect your property or your company for you to reach a deal before the expropriation.

In general, the negotiation can continue regardless of whether the negotiation period has expired or a court proceeding is ongoing. In any case, the law encourages amicable dispute resolution through alternative dispute resolution (ADR) methods rather than adversarial, judicial processes. The public will ultimately benefit from prompt and equitable resolution of such dispute resolution mechanisms.

Determining the just compensation is very technical and requires the appropriate expertise. The total value of compensation should be determined by the appropriate experts, such as an appraiser, who is familiar with the expropriation process. As a result, it is critical that a property owner selects an appraiser who is not only experienced but also knowledgeable about the Act, its requirements, and negotiation. Through this process, we can create an effective decision-making that is also much more inclusive. It considers all

Feasibility studies are an essential aspect of real estate development, as they help to determine the viability and profitability of a potential project before investing significant time and money. Feasibility studies are conducted to evaluate the financial, technical, legal, environmental, and market factors of a project to determine if it is practical and profitable to proceed.

The study included a market analysis to determine the demand for the different components of the project, as well as a financial analysis to determine the costs and potential returns of the project.

Based on the results of the feasibility study, the developers were able to make informed decisions about the design and construction of the project, including the size, layout, and amenities of the various components. The study also helped the developers to identify potential risks and challenges associated with the project, and to take measures to minimize or mitigate them.

AA+ Appraisal & Consultancy, a real estate consulting firm, has conducted feasibility studies for various real estate development projects in the Philippines. Two notable projects are a hotel in Ermita, Manila, and an integrated marina resort in Lapulapu City.

The first project involved evaluating potential hotel development sites and making recommendations for facilities and brand affiliations. The proposed hotel will be a component of a mixed-use development plan and will cater to the needs of local travelers and businessmen. The market study showed that the most viable project with the highest return on investment is the renovation of the existing hotel, resulting in a projected income and a return on investment of 770%. The project will help promote tourism and create employment opportunities in the area.

The second project is envisioned to be a world-class standard, with a full-service hotel property, condominium, marina clubhouse, and berth slip. The study analyzed the site, physical improvements, and amenities, as well as the outlook for the national economy, capital markets, and resort hotel visitation. The report also projected income and expenses for both the proposed hotels, and the marina component, and provided a feasibility conclusion with respect to the projected return on investment. The project is projected to generate a profit margin with the key assumption that operations will be managed by key executives and the workforce. Two ways to generate higher profit are to link up with an international hotel and obtain TIEZA accreditation.

Both projects are expected to help fill the gap in the government’s thrust to promote tourism and create employment opportunities in the area.

Highest and best use (HBU) can be used to determine compensation in expropriation cases. HBU refers to the most profitable and legally permissible use of a property that is physically possible, financially feasible, and maximally productive.

When determining compensation in expropriation cases, the HBU concept is used to establish the value of the property based on its potential future use, rather than its current use. This means that if the expropriation would prevent the property owner from realizing the highest and best use of their property, they may be entitled to compensation for the lost potential value.

In order to determine the HBU of a property, several factors are typically considered, including:

1. Zoning and land use regulations – The zoning and land use regulations in the area can impact the HBU of a property.
2. Physical characteristics of the property – The physical characteristics of the property, such as its size, shape, and topography, can affect its potential uses.
3. Market demand and trends – The demand for certain types of properties, as well as market trends in the area, can impact the HBU of a property.
4. Economic factors – Economic factors, such as interest rates, inflation, and the availability of financing, can also impact the HBU of a property.

In particular, when determining the HBU of a property for expropriation compensation, it may be necessary to consider:

1. The specific public purpose for which the property is being expropriated: The intended use of the property by the expropriating authority may impact the potential uses of the property and, therefore, its HBU.
2. The impact of the expropriation on the property’s value: The HBU analysis must take into account the impact of the expropriation on the value of the property, including any reduction in size, loss of access or visibility, or changes in zoning regulations that result from the expropriation.
3. The availability of alternative sites: The HBU analysis may also consider the availability of alternative sites for public purposes, which could impact the value of the property being expropriated.
4. The market conditions at the time of expropriation: The HBU analysis must take into account the prevailing market conditions at the time of the expropriation, including any changes in economic trends, population growth, or market demand that could impact the potential uses of the property.
5. The potential for future development or use: The HBU analysis may also consider the potential for future development or use of the property, which could impact its value.

Once the HBU of the property has been determined for expropriation compensation purposes, it can be used to estimate the market value of the property before the expropriation, which can be used as a basis for determining the compensation owed to the property owner.

Public works and taxes are frequently featured in the news, whether it be local or international. People should examine possible funding sources as well. Prof. Agosto, the University of San Carlos’s School of Business and Economics’s newest assistant professor, emphasizes the issue. “The delivery of public goods should be looked at in a sustainable way,” Agosto said.

Public finance is primarily concerned with these topics. It concerns how governments handle the public purse, including taxation and spending, and how that affects societal welfare and economic expansion. As a result, it actively participates in the economy by supplying firms and individuals with the goods and services they want.

This semester, Prof. Agosto will teach undergraduates in public finance courses. I’m looking forward to teaching,” he exclaimed. His unique teaching method encourages students to get hands-on with real data through government portals and offices, techniques, and ideas from recently published research. “Public finance, which is a branch of economics, lends itself really well to integrating theory and empirical work and answering socially relevant questions,” he says. Prof. Agosto asserts that “in many cases, we can reduce an ideologically charged question to an empirical quantity that can be measured.”

Professor Agosto is one of the consultants who review the proposed property taxation in the city of Cebu. In assessing and recommending a policy change that was ultimately adopted by the municipal council, he employed the ideas. “Public finance is quite significant right now”, he remarked. His research aims to answer fundamental concerns about the economy, such as how much money should be spent, how taxes should be set up, and, in the case of the tax cut example above, who genuinely stands to gain from it. His more recent studies have delved into public policies and housing issues.

Prof. Agosto received his Master’s in Economics from the University of San Carlos, where he specializes in housing, finance, and the role of government in the economy and public policy. He received Fellow Status from Social Watch Philippines and the People’s Public Finance Institute at the University of the Philippines in Lahug, Cebu City.

Agosto in his talk titled “ The Role of Property Taxation in Urban Planning” emphasizes the role that property taxes might play in urban development. He stated during his presentation at the first-ever face-to-face national conference of PIEP following the pandemic that “planners should employ diverse techniques in fulfilling its duty in the society.” The 2022 National Convention and General Assembly of PIEP were held in Legazpi, Albay on November 8-10,2022.

According to Agosto, “Tax measures influence the land use process in reclassification, exemption provision, subsidies, and economic development.” For instance, the provision of higher property taxes would either promote or discourage stakeholders in a specific place and will ultimately influence the use of the land.

Additionally, he discussed the necessity of cross-departmental cooperation within local government organizations in order to guarantee the achievement of the municipality’s or city’s main objective. Everyone has a responsibility to do their part to provide social services to the populace through property taxation and to guarantee that it plays a part in attaining a land use plan that is advantageous to everybody.

The Philippine Institute of Environmental Planners (PIEP) is the accredited professional organization for Environmental Planners in the Philippines. Currently, it has 18 Chapters and 4,324 members nationwide.

AB Agosto and other Philippine delegates have traveled to Bangkok, Thailand to attend the FIABCCI Thailand conference alongside 2,000 other participants from more than 20 countries. FIABCCI is the global federation of real estate professionals.

Speakers and exhibitors from a variety of nations, including Cambodia, Malaysia, the USA, the UK, Nepal, India, Singapore, the Philippines, Brunei, and more, were present at the event, which took place on November 24 and 25. The discussion of real estate investment potential following the epidemic was centered on the issue of “Innovative cross-border real estate investment.”

“I was thrilled to take part in this amazing event once more, to discuss with our international colleagues some of the many great investment opportunities in the Philippines, and learn from one another how to deal with the post-pandemic resurgence,” said AB Agosto, the 2021 FIABCCI Fellow in Real Estate Management Awardee.

Consultant Agosto was among the individuals in real estate recently named Fellow in Real Estate Management by the Philippine chapter of the Paris-based International Real Estate Federation (FIABCI). The awardees were honored for their outstanding performance and contribution to the growth of the real estate industry.

“The honorees were conferred ‘Fellow in Real Estate Management, a distinction that will set them apart as models of the industry in their respective fields of specialization. And whose expert opinions will be much sought after and highly regarded even by their peers,” according to Dr. Eduardo G. Ong, a FIABCI-Ph Vice-Chairman.

Continue reading “AB Agosto named Real Estate Fellow”

The Cebu City Council opened the public hearing on the proposed adjustment of the real property market value schedule. The adjustment, according to the proponent, is intended to make a significant influence on revenue as well as the growth of Cebu City as a globally competitive and smart city.

Continue reading “On the proposed revision of the schedule Of market values in Cebu City“

Expert witnesses attend trials to provide specialist information to help the court make an informed decision. However, there are some difficulties that expert witnesses may face when presenting complex information to a court of law.

Continue reading “Appraiser As An Expert Witness”

In accordance with Memorandum Circular No. 08-2020, the Supreme Court (SC) publishes the Guidelines for the Special Expropriation Courts for Public Roads (OCA Circular No. 12-2021). The Special Expropriation Courts for Public Roads and Regional Trial Courts (RTCs) with open expropriation cases must adopt the Guidelines, which only apply to the expropriation of assets impacted by national government infrastructure projects.

Continue reading “SC issues new guidelines on Expropriation cases”