RULES AND REGULATIONS FOR THE ISSUANCE OF FREE PATENTS TO RESIDENTIAL LANDS UNDER REPUBLIC ACT NO. 10023

Pursuant to Section 7 of Republic Act No. 10023, otherwise known as
An Act Authorizing the Issuance of Free Patents to Residential Lands
(“RA 10023”), mandating the Director of the Land Management Bureau of
the Department of Environment and Natural Resources to issue the
implementing rules and regulations of this Act, the following rules and
regulations specifically pertaining to residential lands are hereby
promulgated:

Section 1. Scope of the Implementing Rules and
Regulations. – This implementing rules and regulations,
hereinafter referred to as the IRR, shall only cover applications for
free patents pertaining to untitled public alienable and disposable
lands which have been zoned as residential. It shall also cover zoned
residential areas in proclaimed townsite reservations.

Section 2. Definition of terms. – For
purposes of RA 10023, the following terms and phrases as used in this
IRR are defined and understood as follows:

2.1 Filipino Citizen – as enumerated in Article IV Section I
of the 1987 Constitution, the following are citizens of the
Philippines:

2.1.1 Those who are citizens of the Philippines at the time of the
adoption of the 1987 Constitution;

2.1.2 Those whose fathers or mothers are citizens of the
Philippines;

2.1.3 Those born before January 17, 1973, of Filipino mothers, who
elect Philippine citizenship upon reaching the age of majority; and

2.1.4 Those who are naturalized in accordance with law.

In addition, a person with dual citizenship as provided for in
Republic Act No. 9225 and its implementing rules and regulations shall
be considered a Filipino citizen.

2.2 Actual occupant – any person who, either by herself or
himself or through her or his predecessor-in-interest, is occupying,
living in, inhabiting or staying in a structure, the primary purpose of
which is to serve as the residence of such person, situated on the
parcel of residential land subject of the free patent application. This
is subject to the requirements under subsections 2.1 1, 2.12 and 2.13
below

2.2.1 For purposes of this IRR, persons employed in distant
locations, either foreign or domestic, in public or private service,
such that they are not able to stay at their place of residence for long
periods of time, are deemed actual occupants.

2.3 Residential lands – all lands that have been identified
and zoned as residential through the appropriate ordinance by Local
Government Unit (LGU) having jurisdiction over the area. These include
residential lands within areas zoned as mixed residential and commercial
or mixed residential and industrial.

2.4 Alienable and Disposable lands – Lands of the public
domain classified as agricultural that may be acquired through grant or
confirmation of title.

2.5 Townsite reservations – proclaimed areas specifically
reserved for the establishment of a new town as provided for in Chapter
XI Title V of C.A. 141 or the Public Land Act as Amended.

2.6 Highly urbanized cities (HUC) – as defined in Republic
Act No. 7610, otherwise known as the Local Government Code (LGC), cities
with a minimum population of two hundred thousand (200,000)
inhabitants, as certified by the National Statistics Office, and with
the latest annual income of at least Fifty Million Pesos
(P50,000,000.00) based on 1991 constant prices, as certified by the city
treasurer. Provided that, any future changes in qualifications for
classification as HUC by the concerned government agency at the time of
filing of the application will prevail.

2.7 First class municipalities – municipalities with an
average annual income of Fifty Five Million Pesos (P55,000,000.00), as
provided for in Department Order No. 23-08 of the Department of Finance,
dated July 29, 2008 (DO 23-08). Provided that, any future changes in
qualifications for classification as first class municipality by the
concerned government agency at the time of filing of the application
will prevail.

2.8 Second class municipalities – municipalities with an
average annual income equal to or more than Forty Five Million Pesos
(P45,000,000.00), but not exceeding Fifty Five Million Pesos
(P55,000,000.00), as provided for in DO 23-08. Provided that any future
changes in qualifications for classification as second class
municipality by the concerned government agency at the time of filing of
the application will prevail.

2.9 Use for Public service – utilization of parcels of land
exclusively by the government or any of its instrumentalities in
providing basic services to the general public, such as, but not limited
to, market places; town, city, provincial, or barangay halls;
hospitals, clinics, and health centers; police stations; outposts;
jails; and the like.

2.10 Public use – utilization of parcels of land for
structures which are open to the general public, including, but not
limited, to public plazas, parks, resorts, roadways, recreational
facilities, libraries, meeting places, playgrounds, public parking lots,
and the like.

2.11 Disinterested person – any person who has no claim over
the parcel of land subject of the free patent application and who does
not stand to benefit from titling and registration or any other
transaction over such parcel of land. A person is also disinterested
when her or his relation to the cause or to the parties is such that she
or he has no incentive for exaggerating or giving false color to her or
his statements, or for suppressing or perverting the truth or for
stating what is false.

2.12 Predecessor-in-interest – a person who, before having
lawfully transferred the parcel subject of the application to the
applicant, has held and possessed the same in her or his own right and
under a color of title acquired through any of the modes of acquisition
recognized by the Civil Code. She or he has formerly occupied this
parcel of land in the concept of an owner under a bona fide claim of
ownership, but relinquishes her or his right over the same in favor of
the applicant.

2.13 Actual residence – utilization of and presence in a
residential structure on the parcel subject of the application with the
intention to reside, coupled with conduct indicative of such
intention, either continuous or interrupted or intermittent, as long as
the applicant possesses such structure and the parcel on which it stands
in the concept of an owner.

2.14 Continuous possession and occupation – use either by
the applicant herself or himself, or through her or his
predecessor-in-interest, of the parcel subject of the application in the
concept of an owner. This may be actual possession or occupation, or
constructive possession that provides for non-residence, but with the
desire to come back as soon as practicable. The possession and
occupation, whether actual or constructive, must be without
interruption, except when prevented by force majeure or circumstances
beyond human control, or not of intermittent character while it
continues. A person who lawfully recovers possession unjustly lost,
shall be deemed, for all purposes which may redound to her or his
benefit, to have enjoyed it without interruption.

2.15 Bona fide claim of acquisition of ownership – claim for
the parcel subject of the application that is legally adequate as proof
of possession and as acceptable to the community to separate that
particular parcel as being owned by the applicant to the exclusion of
others. It means that the applicant holds the property by virtue of or
through any of the modes of acquisition recognized by the Civil Code. It
also refers to a state of mind which is manifested by the acts of the
applicant, done with honest intention to abstain from taking an
unconscionable or unscrupulous advantage of another. It is the opposite
of fraud and its absence should be established by convincing evidence.

2.16 Accomplished application – a proper application form
completely and duly filled in with the requisite information and that
which does not require any additional inputs other than those already
provided in the form, together with all other requirements enumerated
under Section 5 of the IRR.

2.17 CENRO – the Community Environment and Natural Resources
Office of the Department of Environment and Natural Resources (DENR)
having jurisdiction over the parcel subject of the application, which
shall accept the accomplished application submitted by the applicant.
In the National Capital Region, the Regional Office shall perform the
functions of the CENRO. Where portions of the parcel subject of the
applications are spread over two (2) or more areas under the
jurisdiction of more than one (1) CENRO, the parcel shall be divided
such that the portions shall be the subject of separate free patents
applied for in the corresponding CENRO where they are located.

2.18 PENRO – the Provincial Environment and Natural
Resources Office of the Department of Environment and Natural
Resources (DENR) having jurisdiction over the parcel subject of the
application, which has the power to approve or disapprove such
application. In the National Capital Region, the Regional Executive
Director shall perform the functions of the PENRO. Upon approval of the
application, the PENRO shall issue the patent over such parcel of land.

SEC. 3. Qualifications. – Applicants for
the issuance of a residential free patent shall possess the following
qualifications, namely:

3.1 Filipino citizenship, as defined in subsection 2.1. In case of
doubt, the CENRO or the land investigator concerned may ask for proof of
citizenship such as, but not limited to, a copy of the birth
certificate, passport, decree or order of naturalization, or certificate
of dual citizenship.

3.2 Actual occupation, actual residence and continuous possession and
occupation of the parcel subject of the application, either by herself
or himself or through her or his predecessor-in-interest, under a bona
fide claim of acquisition of ownership, for at least ten (10) years
prior to the filing of the application.

There shall be no age requirement for applicants as long as minor
applicants, aged below eighteen (18) years old, are duly represented by
their legal guardians. The heirs of a deceased applicant may substitute
the applicant provided that they themselves possess the required
qualifications. There shall likewise be no limit as to the number of
applications which may be filed under RA 10023, provided that the
limitations as to the size of the parcel as stated in Section 4 shall
not be exceeded.

No application shall be approved for any individual whose total
landholding would exceed a total of an accumulated twelve (12) hectares,
including agricultural lands, should the application be granted.

SEC. 4. Coverage. – The IRR covers all
residential lands that have been identified and zoned through the
appropriate ordinance of the LGU concerned, provided that the land
applied for is not needed for public service and/or public use.

4.1 For highly urbanized cities, the area shall not exceed two
hundred (200) square meters.

4.2 For other cities, the area shall not exceed five hundred (500)
square meters.

4.3 For first class and second class municipalities, the area shall
not exceed seven hundred fifty (750) square meters.

4.4 For all other municipalities, the area shall not exceed one
thousand (1000) square meters.

In the determination of the size limitation of the parcel subject of
the application, the above classifications of LGUs at the time of filing
of the accomplished application shall be considered.

All CENROs shall secure a copy of approved zoning ordinances of
cities and municipalities within their jurisdiction for identification
of zoned residential areas. They shall also secure area certifications
from the LGU planning offices that the areas identified and zoned as
residential lands are not needed for public use or public service. The
LGU zoning at the time of filing of the application shall be considered
for purposes of complying with the zoning requirement.

SEC. 5. Requirements for applications. –
The application form accompanied by the requirements enumerated below
shall constitute an accomplished application for the issuance of free
patents for residential lands.

5.1 Copy of approved plan based on an actual survey conducted by a
licensed geodetic engineer or copy of cadastral map showing the parcel
of land applied for. For purposes of securing the approval of a survey,
the application number is not necessary.

5.2 Copy of technical description of the parcel of land subject of
the application. LMB form 700-2A or LMB form 700-2B may be used.

5.3 Simplified sketch of the land parcel showing the adjacent lots,
corners and natural or manmade features that define the boundaries of
the land.

5.4 Affidavit of two (2) disinterested persons residing in the
barangay of the city or municipality where the land is located,
attesting to the truth of the facts contained in the application to the
effect that applicant thereof has, either by himself or through his
predecessor-in-interest, actually resided on and continuously
possessed and occupied, under a bona fide claim of acquisition of
ownership, the subject land for at least ten (10) years.

5.5 For isolated applications, a certification from the Regional
Trial Court that there is no pending land registration case involving
the land parcel being applied for.

SEC. 6. Procedure in the CENRO for processing
applications. – Applications for residential free patent
shall be filed in the CENRO whose jurisdiction covers the area where the
parcel of land subject of the application is situated. This may also
include on-site acceptance of accomplished applications by the CENRO or
any of his authorized representatives. The CENRO may also authorize any
public office to accept applications and to prepare applications and
documents for processing.

6.1 No application shall be accepted/processed without submitting the
complete requirements including the approved plan and technical
description. A preliminary assessment of compliance with the
qualifications and documentary requirements based on the checklist may
be made before acceptance of the application and the commencement of the
120-day period.

6.2 Posting of Notices. – Upon receipt of an accomplished
application, the CENRO concerned shall cause the posting of notices for
15 days in two (2) conspicuous places within the municipality or city,
preferably in the location of its office, or any other place that can be
readily seen, such as, but not limited to, public bill boards, public
plazas, municipal/city/barangay halls and market places. The CENRO shall
issue the certificate of posting of notice after the 15 day period has
elapsed.

6.3 The CENRO is required to process the application, including the
publication thereof, within a non-extendible period of one hundred
twenty (120) days from the date of filing of the accomplished
application. The 120-day period starts the moment that an accomplished
application leaves the hands of the applicant and is turned over to the
CENRO or any authorized representative thereof. The period for
verification with the records (e.g. determining whether or not a patent
had already been issued for the parcel in question) is included in the
120-day period. The period for approval of surveys is not included in
the 120-day period. The CENRO may provide for acceptance and processing
of applications by batch (by date or by geography) to comply with the
120-day processing period.

6.4 Upon approval of the CENRO, the application and the complete
records of the application shall be forwarded to the PENRO for her or
his approval and signature.

6.5 Should the CENRO determine that the application is incomplete in
requirements, she or he shall reject the application without prejudice
to re-filing.

6.6 The investigator shall conduct an ocular inspection on the parcel
of land applied for and shall determine the qualifications of the
applicant as well as verify the claims of the applicant on the land. The
land investigator is authorized to subscribe proofs, affidavits and
oaths of any kind required or necessary in connection with the
application for residential free patent.

6.7 In case an opposition is filed, the 120-day period for processing
shall be deemed interrupted. The CENRO shall notify the applicant on the
opposition and shall subject the application to the regular claims and
conflict procedures of the DENR.

6.8 The CENRO shall fast track the resolution of all claims and
conflicts arising from residential free patent applications within 120
days and shall notify the conflicting parties within 15 days from the
date of resolution. The CENRO shall apply alternative dispute resolution
(ADR) mechanisms in the resolution of claims and conflicts.

6.9 The CENRO shall establish a computerized data base and system of
record keeping with respect to all public land applications and patents
arising from the implementation of this Act.

SEC. 7. Procedure in the PENRO. – Upon the
recommendation of the CENRO concerned, the corresponding PENRO shall
have a non-extendible period of five (5) days from receipt of such
recommendation to either approve and sign the patent or disapprove the
application.

In case of approval, the PENRO shall notify the applicant within 15
days and forward the patent to the Registry of Deeds.

In case of disapproval, the PENRO shall notify the applicant within
15 days and remand the entire records to the CENRO for appropriate
action.

The PENRO may disapprove the application without prejudice to
re-filing on the grounds of non-compliance with documentary
requirements. He/she may disapprove an application with prejudice to
refilling on grounds of non-qualification of the applicant and when the
land applied for should undergo claims and conflict resolution
procedures.

The disapproval of the application by the PENRO may be appealed to
the Secretary of the DENR through appropriate channels.

SEC. 8. Other Pending Applications. –
Pending miscellaneous sales applications falling within the purview of
RA 10023 prior to the order of award may be converted to applications
for residential free patent. Provided, that the applicant is informed
and his/ her consent is obtained.

All pending miscellaneous sales application after the order of award
and those applicants thereof who have commenced payment on any of the
required equal annual installments shall be given the option to continue
with the miscellaneous sales application or to convert their
application into an application under RA 10023, provided that an
affidavit of relinquishment of rights to the MSA and of forfeiture of
previously paid installments shall be executed.

The conversion of pending Miscellaneous Sales Applications shall
comply with the area limits specified in Section 4.

The CENRO shall issue an order cancelling the miscellaneous sales
application and converting the MSA to a residential free patent
application.

Townsite sales applications falling within the qualifications of R.A.
10023 and before the bidding has been conducted, may also be converted
to residential free patent applications. Provided, that the applicant
consents to the conversion and provided further, that the applicant
relinquishes any other type of claim through an affidavit. And provided
further, that the conversion shall comply with the area limits specified
in Section 4.

SEC. 9. Removal of Restrictions. – The
following restrictions under Chapter XIII, Title VI of Commonwealth Act
No. 141 shall not be applicable to patents issued under RA 10023, to
wit:

“Section 118. Except in favor of the
Government or any of its branches, units, or institutions, lands
acquired under free patent or homestead provisions shall not be subject
to encumbrance or alienation from the date of the approval of the
application and for a term of five years from and after the date of
issuance of the patent or grant, nor shall they become liable to the
satisfaction of any debt contracted prior to the expiration of said
period, but the improvements or crops on the land may be mortgaged or
pledged to qualified persons, associations, or corporations.

No alienation, transfer, or conveyance of any homestead after five
years and before twenty-five years after issuance of title shall be
valid without the approval of the Secretary of Agriculture and Commerce,
which approval shall not be denied except on constitutional and legal
grounds.”

“Section 119. Every conveyance of land
acquired under the free patent or homestead provisions, when proper,
shall be subject to repurchase by the applicant, his widow, or legal
heirs, within a period of five years from the date of the conveyance.”

“Section 121. Except with the consent of
the grantee and the approval of the Secretary of Natural Resources, and
solely for commercial, industrial, educational, religious or charitable
purposes or for a right of way, no corporation, association, or
partnership may acquire or have any right, title, interest, or property
right whatsoever to any land granted under the free patent, homestead,
or individual sale provisions of this Act or to any permanent
improvement on such land.

The provisions of Section 124 of this Act to the contrary
notwithstanding, any acquisition of such land, rights thereto or
improvements thereon by a corporation, association, or partnership prior
to the promulgation of this Decree for the purposes herein stated is
deemed valid and binding; Provided, That no final decision of reversion
of such land to the State has been rendered by a court; And Provided,
further, That such acquisition is approved by the Secretary of Natural
Resources within six (6) months from the effectivity of this Decree.”

“Section 122. No land originally acquired
in any manner under the provisions of this Act, nor any permanent
improvement on such land, shall encumbered, alienated, or transferred,
except to persons, corporations, associations, or partnerships who may
acquire lands of the public domain under this Act or to corporations
organized in the Philippines authorized therefor by their charters.
Except in cases of hereditary succession, no land or any portion thereof
originally acquired under the free patent, homestead, or individual
sale provisions of this Act, or any permanent improvement on such land,
shall be transferred or assigned to any individual, nor shall such land
or any permanent improvement thereon be leased to such individual, when
the area of said land, added to that of his own, shall exceed one
hundred and forty-four hectares. Any transfer, assignment, or lease made
in violation hereof, shall be null and void.”

“Section 123. No land originally acquired
in any manner under the provisions of any previous Act, ordinance,
royal order, royal decree, or any other provision of law formerly in
force in the Philippines with regard to public lands, terrenos baldios y
realengos, or lands of any other denomination that were actually or
presumptively of the public domain, or by royal grant or in any other
form, nor any permanent improvement on such land, shall be encumbered,
alienated, or conveyed, except to persons, corporations or associations
who may acquire land of the public domain under this Act or to corporate
bodies organized in the Philippines whose charters authorize them to do
so: Provided, however, That this prohibition shall not be applicable to
the conveyance or acquisition by reason of hereditary succession duly
acknowledged and legalized by competent courts; Provided, further, That
in the event of the ownership of the lands and improvements mentioned in
this section and in the last preceding section being transferred by
judicial decree to persons, corporations or associations not legally
capacitated to acquire the same under the provisions of this Act, such
persons, corporations, or associations shall be obliged to alienate said
lands or improvements to others so capacitated within the precise
period of five years; otherwise, such property shall revert to the
Government.”

SEC. 10. Separability Clause. – If, for any
reason, any section or provision of this Implementing Rules and
Regulations is declared null and void, no other section, provision, or
part thereof shall be affected and the same shall remain in full force
and effect.

SEC. 11. Repealing Clause. – All orders,
circulars, memoranda and other issuances inconsistent herewith are
hereby repealed and/or amended accordingly.

SEC. 12. Effectivity. – This order shall
take effect fifteen (15) days after the publication thereof in a
newspaper of general circulation and acknowledgment of receipt of a copy
from the Office of the National Administrative Register.

Adopted: 05 May 2010

Approved:

(SGD.) HON. HORACIO C. RAMOS
Secretary

Recommending Approval:

(SGD.) ATTY. ALLAN V. BARCENA
Director, Land Management Bureau