How to Claim Road Right of Way or Just Compensation from the Government (Without Going to Court)

When the government acquires private property to be used as right of way for infrastructure projects, it is required under the Philippine Constitution that property owners be paid just compensation.

However, some property owners find it hard to claim compensation from the government, and worse, few owners end up not receiving compensation due to lack of legal guidance.

Republic Act No. 10752 requires offer to pay based on market value.

Property owners should know that the new law on right of way or Republic Act No. 10752 was enacted to make it easier for them to be compensated. A court proceeding is not always necessary. In fact, it is required under the new law that concerned government agencies submit an offer to the property owner and informing him of the amount of compensation that will be paid. This compensation offered shall be based on market value.

Negotiated sale is the preferred mode of right of way acquisition over expropriation as this would avoid filing a case in court.

If donation is not feasible, negotiated sale for the acquisition of the property shall be pursued based on the provisions of RA 10752 and its implementing rules.

Here are the relevant steps that must be undertaken by the government in acquiring titled private properties via negotiated sale:

1. Prepare and send the notice of taking to each property owner, which shall state the following:

• • The property will be acquired for a government infrastructure project

• • The property may be acquired through negotiated sale

• • No government agency or local government unit shall allow any development or construction within the right of way within two years from the date of the notice of taking

• • If the owner refuses or fails to submit proofs of ownership i.e. property title and two (2)valid identification cards, the implementing office shall initiate expropriation proceedings

2. Once the owner submits proof of ownership, the implementing office shall formally send a letter offer of compensation price based on the sum of the following:

• • the current market value of the land

• • the replacement cost for structures and improvements

• • the current market value of the crops and trees

3. To determine the appropriate price offer for the right of way via negotiated sale, the implementing office may engage Landbank or Development Bank of the Philippines, or independent property appraisers accredited by the Bangko Sentral ng Pilipinas

4. If the owner does not accept the price in the letter offer within thirty (30) days, the implementing office will initiate expropriation proceedings with the appropriate court.

5. If the owner accepts the price in the letter offer within thirty (30) days, the implementing office shall secure from the owner all appropriate documentary requirements for the right of way claim.

6. After verification, Deed of Absolute Sale will be executed and first payment shall be made.

7. Second and final payment will be made at the time of the transfer of the title in the name of the Republic of the Philippines, in case the land is wholly affected, or at the time of the annotation of this Deed on the title, in case the land is partially affected, provided that the land is certified to be completely cleared of structures, improvements, crops and trees.

Complete documentary requirements shall be submitted by the property owner. The following are the usual documentary requirements for just compensation or right of way claims:

1. • Owner’s duplicate of the Original/Transfer Certificate of Title

• • Tax Declaration of the parcel of land

• • Tax Declaration of the improvements (except for informal settler-owners)

• • Subdivision Plan of the parcel of land

• • Tax Clearance or, if the landowner requests the implementing office to advance the payment of Real Property Taxes to be deducted from the payment, a Statement of Tax Account from the Treasurer of the LGU concerned

• • Copies of two (2) valid identification cards

• • Owner’s Taxpayer Identification Number (TIN)

• • If applicable, where the improvement owner is different from lot owner and is authorized to build on the land, a certification from the lot owner that the improvement built therein is owned by the improvement owner

• • If applicable, where the improvement owner is an informal settler, any document showing that he is a Filipino citizen; a certification from the Land Registration Authority that there is no property registered under his name, whether in an urban or rural area; a certification from the Local Inter-Agency Committee (LIAC) that he is not a professional squatter or a member of a squatting syndicate, as defined in Republic Act No. 7279, otherwise known as the “Urban Development and Housing Act of 1992” and does not occupy an existing government right of way.

• • If applicable, Special Power of Attorney

• • Other documents that may be found necessary by the implementing office to ensure transfer of the property to the Republic of the Philippines

Note that prior to payment, right of way claims shall be screened, fully verified and validated. There are also instances when the government is constrained to resort to expropriation despite owner’s acceptance of the price offer due to incomplete documentary requirements or fraudulent submissions.

It is also important to understand that the above process applies to right of way claims with ongoing right of way activities and pertains to titled or registered properties. Moreover, if the government is already in possession of the property, a court proceeding may be more appropriate.

Source: RA 10752 & DPWH Right of Way Manual