MRPAAO

Section 1
PROVINCIAL/CITY
APPRAISAL
COMMITTEES
► The right of eminent domain is usually
understood to be the ultimate right of the
sovereign power to appropriate , not only to the
public but the private property of all citizens
within the territorial jurisdiction for public
purpose. It is a power inherent in sovereignty.
Hence, it is a power which need not be granted
by any fundamental law.
► The delegated power of eminent
domain of local government is strictly
speaking not a power of eminent but of
inferior domain, -a share merely in
eminent domain. Hence , it is only as
broad as the eminent authority would
allow it to be.
► Article III, Section 9 of the Philippine
Constitution provides that “ Private
Property shall not be taken for public use
without just compensation.”
► There are two(2) Constitutional limitations
on the power of eminent domain :
► 1. the purpose of the taking must be for
public use and;
► 2. just compensation must be given to the
private owner .
► An LGU may, through its Chief
Executive and acting pursuant to an
ordinance , exercise the power of eminent
domain for public use , purpose or
welfare of the poor and the landless ,
upon payment of just compensation.
The following shall among others , be considered as
public use, purpose or welfare:

► Socialized Housing;
► Construction or extension or roads , streets, sidewalks,
viaducts, bridges, ferries, wharfs or piers;
► Construction or improvement of public buildings
;maintained and operated by the government for public
use such as nurseries, health center or hospitals.
Building of research , breeding, or dispersal centers for
animals.
► Establishment of parks, playgrounds or plazas;
► Establishment of public market places;
► Construction of artesian wells or water supply systems;
► Establishment of cemeteries or crematories;
► Establishment of drainage systems, cesspools, or
sewerage systems;
► Construction of irrigation canals or dams;
► Establishment of nurseries , health centers , or
hospitals ;and
► Establishment of abattoirs.
The requisites for a valid exercise of the power of
eminent domain by LGU’s are:

► a.) An ordinance must be passed authorizing the

local chief executive to subject a certain property
to a local chief executive to subject a property to a
local government unit’s power of eminent domain
or to expropriation;
► The power must be exercised for public use
purpose or welfare for the benefit of the poor and
landless;
► There must be payment of just
compensation ; and

► A valid and definite offer to buy the

property must have been previously made
to the owner but the offer was not
accepted.(Pimentel, 1993)
 Definition of terms:
► Public use- means public usefulness, utility, or
advantage , or what is productive of general benefit , so
that any appropriating of private property by the State
under its right of eminent domain , for purposes of great
advantage to the community, is a taking for public use.
► Just compensation- described as the just and complete
equivalent of the loss which the owner of the thing
expropriated has to suffer by reason of the
expropriation.
► Market value-price agreed upon by the buyer and seller
in the open market in the usual and ordinary course of
legal trade and competition ; the price and value of the
article established or shown by sale , public or private
in the ordinary way of business ; the fair value of
property as between one who desires to purchase and
one who desires to sell ; the current price ; general or
ordinary price for which property may be sold in that
locality.
► Consequential Damage
-damages to other interests of the owner that
can be attributed to the expropriation.

► Consequential benefits
- the increase in the value of the other interests
of the owner property that can be attributed to the
new use to which his former property will be put by
the expropriation authority.
► Executive Order No. 132, dated 22 December 1937,
which since then has undergone several amendments,
authorized the creation of Appraisal Committees which
are asked generally to determine the real or market
value of the property to be acquired. Referral to the
Appraisal Committee is necessary only if negotiations
with the owner fail.
 The composition of Appraisal
Committee is as follows:
► B. PROVINCIAL/CITY APPRAISAL
COMMITTEE E.O. 132 (as amended):

Chairman - Provincial/City Assessor

Member - Provincial/ City Engineer
Member - Provincial/ City Treasurer
► In Provinces where no position for
► Provincial Engineer exists, the Public Works and
Highways District Engineer shall sit as member of the
Committee, provided that if there are two or more
Engineering Districts in the Province, the Public
Works and Highways District Engineer of the
Engineering District concerned shall sit as member of
the Committee.
► 1. APPRAISAL COMMITTEE IN THE
METROPOLITANT MANILA AREA

City Appraisal Committee

Chairman - MMDA Chairman
Member - City Assessor
Member - City Treasurer
Member - City Engineer
Member - District Engineer of the DPWH
► Municipal Appraisal Committee of MMA:

Chairman - MMDA Chairman

Member - District Engineer of the DPWH
M ember - City Assessor of the District
Member - Municipal Assessor
Member - Municipal Engineer
Member - Municipal Treasurer
► C. Modes of Appraisal of Real Property:

1. Negotiated Sale
2. Expropriation
► Acquisition Through Negotiated Sale
-As an initial step, the government
implementing agency/instrumentality
concerned shall negotiate with the owner of
the land that is needed for the project for the
purchase of said land, including
improvements thereon. In the determination
of the purchase price to be paid, the
Department of Finance and the Provincial/City
Assessors shall extend full assistance and
coordinate with personnel of the government
implementing agency concerned in the valuation
of current and fair market value declared by the
owner or administrator of the land, or such
current market value as determined by the
assessor, which ever is lower, prior to the
negotiation.
► A.O. No. 50 was already amended by R.A. No. 8974
making the zonal value the basis of the offer to
acquire property for public purpose less than
additional 10% increase in the existing zonal value.
However, both A.O. No. 50 AND R.A. No. 8974 do
not provide for the basis and procedure for the
acquisition for building and improvements as well as
the valuation of machineries and equipment to be
affected by the public project nor do they apply to the
acquisition of properties by the Local Government
for public purpose.
► It is therefore necessary that
appraisal of properties to be
acquired for public purposes. It is
therefore proper that building and
improvement must be appraised
taking into consideration the
following factors:
► 1. the rise of the building and improvement
affected.
► 2. the materials used
► 3. the age or depreciation of the building plus
other factors as economic and legal obsolesce
► 4. In the case of machinery refer to Chapter II
of this manual for proper
► Expropriation
- If the parties fail to agree to negotiate for the
sale of the land as provided in the preceding
section, the government implementing
agency/instrumentality concerned shall have the
authority to immediately institute expropriation
proceeding through the office of the Solicitor
General, the Government Corporate Counsel, or
Provincial/City legal officer as the case may be.
► The just compensation to be paid for the property to be
acquired through expropriation of R.A. No. 8974.
Courts shall give priority to the adjudication of cases on
expropriation and shall immediately issue the necessary
writ of possession upon deposit by one government
implementing agency/instrumentality, the amount
initially proposed for just compensation as provided for
under R.A. No. 8974; Provided, The period within
which said writ of possession shall be issued shall in no
case extend beyond Five(5) days from the date such
deposit was made.
In to facilitate the immediate judicial
determination of just compensation during
the expropriation proceedings, the
expropriating agency property duly
authorized assessors in appraising the fair
market value of the private property intended
to be expropriated must consider, among
others, the well established factors and the
following relevant standards:
A.) The classification and use for which the property is
suited;
B.) The developmental costs for improving the land;
C.) The value declared by the owners;
D.) The current selling price of similar lands in the
vicinity;
E.) the reasonable disturbance compensation for the
removal and/or demolition of certain improvements on
the land an for the value of the improvements thereon;
F.) The sized, shape of location, tax declaration
and zonal valuation of the land;
G.) The price of the land as manifested in the
ocular findings, oral as well as documentary
evidence presented; and
H.) Such facts and events so as to enable the
affected property owners to have sufficient funds
to acquire similarly-situated lands of approximate
areas as those required from them by the
government, and thereby rehabilitate themselves
as early as possible.
D. Procedures to be followed in the Acquisition of
Private Property for Public Use (E.O. 132)
1. Secure complete data such as, deed of sale,
declared under oath or affirmation, certification by
the municipal assessor to ascertain the real or
market value of the property to be acquired for
public use and to ascertain the purchase price of the
property to be acquired or of other property
similarly conditioned in the same vicinity.
2. To hold public
hearings and make such
other investigation as
may be deemed
necessary.
3. Upon the completion of the
investigation which shall not be
longer than 60 days after the receipt
of notification by the chairman,
submit a report to the provincial
board, city
Or municipal council or National
government officials concerned with
recommendation as to whether the
property should be purchased at the
prices determined upon by the
Committee and approved by the owner
or condemnation proceedings instituted
If the recommendation of the
Appraisal Committee is not acceptable
to the government entity or to the
property owners concerned, steps
should be taken to institute
condemnation proceedings in
accordance with Section 12, Chapter 4,
Book III of the Administrative Code of
1987 and Rules of
4. To determine the consequential
benefits that may be derived from the
construction of the proposed
improvements and the damage that
may be caused by such improvements.
In arriving at a fair valuation as
contemplated by law, if the estimated
damages exceed the estimated
benefits, such excess should be added
to the market value.
On the other hand, if the estimated
benefits exceed the probable damages,
the difference shall be disregarded and
the market price considered the fair
valuation.
5. In the case of all public improvements
where it is necessary to acquire private
property through condemnation proceedings,
construction work shall not be started unless
the following requirements occur:
A. Bond to be filed by the government.
B. Authorized entry upon the property, and
C. Sufficient funds are obligated or set aside to
cover a reasonable estimate of the cost of such
private property.