LETTER TO A LAWYER

Dear Attorney,

Greetings! I hope this letter finds you well. I am writing on behalf of a small group of heirs who recently inherited an agricultural parcel of land, measuring approximately 2.7 hectares, due to the passing of our registered owners. We are at a crossroads because our tenant, who has been occupying and tilling this land, refuses to vacate the property unless they receive fifty percent of it. We intend to proceed with an extrajudicial partition of the property among the rightful heirs but remain unsure of the most appropriate legal remedy given our tenant’s demands.

Kindly advise us on the proper course of action. We seek comprehensive insights into potential legal recourse under Philippine agrarian and civil laws, including how the relevant tenancy laws, the Comprehensive Agrarian Reform Program, and relevant Department of Agrarian Reform issuances might affect our rights and obligations as heirs. We want to confirm whether the tenant’s demand for a 50% share in the land is enforceable under law, and we also wish to be guided on how best to protect our legal interests while complying with any statutory duties owed to the tenant.

Thank you very much for your time. We look forward to your expert counsel.

Respectfully yours,

A Concerned Heir

LEGAL ARTICLE ON EXTRAJUDICIAL PARTITION AND TENANCY RIGHTS IN THE PHILIPPINES

Introduction
The issue of agricultural tenancy in the Philippines involves a complex interplay of civil law (especially on succession and partition of property), agrarian laws (such as the Comprehensive Agrarian Reform Law or CARL), and administrative regulations enforced by the Department of Agrarian Reform (DAR). When heirs inherit agricultural land subject to a tenancy arrangement, legal intricacies abound, particularly when the tenant exercises certain rights or makes demands that appear excessive, such as seeking a large share of the property. This article explores the myriad legal principles involved, centering on an extrajudicial partition scenario where an existing tenant refuses to vacate unless given half of the farmland.

I. Concept of Extrajudicial Partition

Nature of Extrajudicial Partition
Extrajudicial partition is a procedure under the Philippine Civil Code allowing heirs to settle the estate of a decedent without resorting to the courts, provided the heirs are of legal age, agree unanimously on the partition, and there are no unpaid debts or claims. This approach is codified under Rule 74 of the Rules of Court, where the heirs execute a public instrument declaring the entire estate, debts, names of heirs, and how the estate is to be divided among them.
Advantages of Extrajudicial Partition
By employing this method, heirs can save considerable time and costs typically associated with court proceedings. It also promotes less acrimony among family members because they settle on the distribution without enduring a full-blown legal contest. Once executed, the extrajudicial partition is published in a newspaper of general circulation, typically for three consecutive weeks, to provide notice to interested parties.
Challenges When the Estate Includes Agricultural Land
While extrajudicial settlement is straightforward in most instances, complications arise when the land is leased or tenanted. Philippine law recognizes the special security of tenure rights afforded to agricultural tenants, which may restrict owners’ freedom to partition or reclaim property. Thus, the extrajudicial partition might face obstacles from tenants asserting rights under agrarian laws.

II. Agricultural Tenancy in the Philippines

Statutory Framework
a. Agricultural Tenancy Act (Republic Act No. 1199)
The older law on tenancy, Republic Act No. 1199, introduced essential protections for tenants, such as security of tenure. It regulated the relationship between the landlord and tenant, particularly with respect to share-tenancy or leasehold.
b. Comprehensive Agrarian Reform Law (CARL) - Republic Act No. 6657
Enacted in 1988, the Comprehensive Agrarian Reform Law radically altered land ownership patterns in the Philippines, specifically focusing on providing land to tillers and establishing strong protections for agrarian reform beneficiaries. The CARL, in conjunction with subsequent amendments and DAR Administrative Orders, has mandated that certain sizes of agricultural land may be subject to compulsory acquisition or coverage under agrarian reform.
c. Department of Agrarian Reform (DAR) Administrative Issuances
The DAR, as the primary administrative agency tasked with implementing agrarian laws, issues administrative orders that further interpret or specify the finer points of law, such as the rules on land valuation, retention limits, and the processes by which landowners may exercise their retained areas.
Security of Tenure
In the realm of Philippine agrarian law, the tenant’s security of tenure is practically sacrosanct. The Constitution underscores the importance of protecting the welfare of farmers and promoting social justice in agrarian relationships. Consequently, a tenant in good standing generally cannot be ejected or removed arbitrarily. The landowner must follow statutory procedures to terminate tenancy, which, absent any legal ground, can be quite challenging.
Distinguishing Valid Tenancy Relations
Not every occupant of agricultural land is automatically a “tenant” under the law. For a valid tenancy to exist, certain conditions must be met:
a. The parties must be the landowner and the tenant or agricultural lessee.
b. The subject matter is agricultural land.
c. There is consent from the landowner to the tenant relationship.
d. The purpose is agricultural production.
e. There is a sharing of harvest or payment of a fixed rental.
f. The tenant has personal cultivation of the land.
If any element is missing, there may be no legally recognized tenancy relationship. However, if a valid tenancy arrangement is found, the occupant’s rights become robust.

III. Heirs’ Rights and Obligations Toward the Tenant

Succession and Transfer of Ownership
When the registered owner of the land dies, title to the property vests immediately in the heirs by operation of law (Article 774 of the Civil Code). However, the partition or distribution of the inheritance remains to be formally effected. In situations where the decedent had a valid tenant on the land, the heirs inherit both the rights and corresponding obligations of the deceased. They are generally obligated to respect the tenancy arrangement already in place, unless there is a valid cause for ejectment or termination of tenancy.
Demand by the Tenant for 50% Share
In certain disputes, tenants may erroneously believe they can claim co-ownership rights or demand an enormous portion of the land as a condition for vacating. The Agrarian Reform Law does not automatically grant tenants an absolute right to half of the property. However, if the land is subject to agrarian reform coverage, and the tenant qualifies as an agrarian reform beneficiary, the law may allow them to eventually own or possess a portion of the land up to certain limits. Despite that, the tenant’s demand for a 50% share offhand must still be assessed under the following parameters:
a. Is the land subject to the retention limits established by law?
b. Is the land subject to compulsory coverage under agrarian reform, or was it previously covered by a voluntary offer to sell or a voluntary land transfer scheme?
c. Has the landowner availed of their right of retention if the land is covered by the agrarian reform program?

Without proper coverage under CARL or other agrarian laws, the tenant’s mere demand for 50% does not have legal grounding. The correct process is for the DAR to determine coverage and, if applicable, the scope of land that can be awarded to qualified beneficiaries.
Heirs’ Obligation to Respect Tenancy
The heirs should remember that, assuming the occupant is a legitimate tenant, the law protects the latter’s security of tenure. They cannot simply eject the tenant for refusing to agree to a new arrangement. If the tenant continues to fulfill their obligations (such as paying rent or giving the landowner’s share of harvest, depending on the existing agreement), the heirs must respect that arrangement until a valid ground for ejectment surfaces (e.g., violations of the tenancy contract or the tenant’s abandonment of the land).

IV. Legal Remedies and Procedures

Filing a Petition for Ejectment or Termination of Tenancy
If the heirs believe that the tenant is not legally entitled to remain on the property, they can bring the matter to the DAR Adjudication Board (DARAB), which has primary jurisdiction over agrarian disputes. Such a petition must prove legitimate grounds for the termination of tenancy, including violations of contractual obligations or proof the occupant never was a bona fide tenant in the first place.
a. Cause of Action – The heirs must precisely articulate the ground. For instance, if they suspect that the occupant does not meet all the requirements to be considered a tenant, they can dispute the alleged tenancy.
b. Procedure – The DARAB’s rules require submission of a complaint or petition, followed by mediation or conciliation. If mediation fails, the adjudicator conducts a hearing to examine evidence.
c. Decision and Possible Appeals – If the DARAB rules in favor of the heirs, an order of ejectment can be issued. However, the tenant retains the right to appeal through the DARAB’s hierarchy or eventually to regular courts on questions of law.
Approach Under Civil Law (Unlawful Detainer or Forcible Entry)
If the relationship is not a valid tenancy, the heirs may resort to ordinary ejectment proceedings (unlawful detainer or forcible entry) under the Rules on Summary Procedure in the regular courts. However, the first step is to verify that the occupant is not, in fact, a legitimate agricultural lessee. When the occupant claims tenancy, jurisdiction typically falls to the DARAB. Thus, it is critical to conclusively determine agrarian status before proceeding with a civil ejectment suit.
Negotiated Settlement
Often, the most pragmatic and least acrimonious path is through negotiation or a mediated settlement. The parties may agree on a reasonable arrangement—be it the tenant’s continued occupancy under better-defined terms, a voluntary exchange of compensation, or the purchase by the landowners of the tenant’s rights if allowed under the law. The heirs must ensure they follow DAR regulations on coverage, if applicable, and that the settlement is in writing, to minimize future disputes.

V. Land Retention Limits and the Agrarian Reform Context

Retention Rights of Landowners
Republic Act No. 6657, as amended by subsequent laws (e.g., R.A. No. 9700), grants landowners a retention right of up to five hectares, subject to certain qualifications. If the decedent had not exercised their right of retention during their lifetime, the heirs may still be able to do so if they meet the qualifications specified by the law.
Exemptions and Exclusions
Certain agricultural lands may be excluded or exempted from coverage if they fit conditions such as being primarily devoted to livestock, poultry, or swine raising, or if the land area is under the retention limit.
Implication for Heirs
The right of retention is personal, but it can pass to the heirs if not previously exercised by the deceased owner. If the farmland in question is within the heirs’ allowable retention limit, they can validly keep the land, subject to the tenant’s existing leasehold arrangement unless a valid cause for ejectment arises.

VI. Practical Recommendations to Heirs Facing a Tenant’s Excessive Demand

Verification of Tenancy
Ascertain if there truly is a valid tenancy relationship. Examine pertinent documents: a leasehold agreement or proof of shared harvest. If no formal arrangement or recognized practice consistent with tenancy exists, the occupant may not be protected by agrarian laws.
Assess Agrarian Reform Coverage
Determine if the subject property is already covered by agrarian reform or potentially subject to it. The local DAR office can provide clarity on whether the land is within the scope of coverage, or if certain exemptions or exclusions may apply.
Retain Legal Counsel for Guidance
The intricacies of agrarian laws, especially in contested cases, often necessitate the intervention of specialized lawyers or consultants with knowledge of DAR procedures. This ensures the best possible strategy for either preserving the heirs’ rightful claim or reaching a fair settlement.
Exhaust Alternative Dispute Resolution
Negotiation, mediation, or compromise can often save time, resources, and preserve cordial relationships. A settlement that respects the tenant’s rights while securing the heirs’ legal interests often proves beneficial.
Exercise Caution with Unilateral Actions
Resorting to self-help measures (e.g., forcibly ejecting the tenant or cutting off water access) can expose the heirs to criminal and civil liability. The law sets out the proper legal processes, which should be strictly followed.

VII. Consequences of Non-Compliance with Legal Requirements

Invalidation of Extrajudicial Partition
If the extrajudicial partition is executed without regard to the legitimate tenant’s statutory rights, the partition could be subject to legal challenges. Additionally, if the heirs fail to pay proper estate taxes or comply with publication requirements, the partition instrument may lack effect or face nullification.
Criminal or Administrative Liabilities
Harassment or dispossession of a legitimate tenant can result in criminal or administrative actions. Philippine laws contain strong social justice provisions meant to protect those in the lower income brackets, especially agricultural workers.
Penalties from the DAR
The DAR can impose sanctions on landowners or heirs who violate agrarian laws or fail to adhere to lawful processes. This includes potential disqualification from retention rights or other benefits.

VIII. Key Jurisprudence on Tenancy and Partition

Supreme Court Decisions Emphasizing DAR Jurisdiction
Numerous rulings highlight that once a tenant relationship is alleged, jurisdiction typically rests with the DARAB, not the regular courts. The Supreme Court has repeatedly dismissed ejectment suits in regular courts when the occupant claims to be a tenant and presents sufficient evidence of tenancy.
Cases on Invalid Tenancy Claims
On the flip side, the Supreme Court has also upheld that not all claims of tenancy are valid, particularly where the occupant fails to prove personal cultivation or the requisite sharing of harvests. Such rulings underscore the necessity of fulfilling all legal requirements before tenancy rights are recognized.

IX. Procedural Steps for Extrajudicial Partition with a Tenant in Place

Gather All Relevant Documents
This includes the original Transfer Certificate of Title (TCT), tax declarations, receipts, prior lease agreements, or evidence of share-tenancy arrangements.
Secure the Heirs’ Consent
Each heir must agree to proceed extrajudicially and to abide by any relevant tenancy regulations. A public instrument is then drafted, detailing how the property is to be partitioned among the heirs.
Publish the Settlement
The extrajudicial settlement is published in a newspaper of general circulation for three consecutive weeks, in compliance with Section 1 of Rule 74 of the Rules of Court.
Payment of Estate Taxes
The Bureau of Internal Revenue (BIR) must be paid the proper estate tax. A certificate authorizing registration (CAR) is issued once taxes are settled, allowing the heirs to have the title transferred to their names.
Respect or Resolve the Tenancy Issue
Before finalizing partition, the heirs should determine the fate of the tenant. If the occupant is a valid tenant, that arrangement must be respected. If the occupant refuses to acknowledge the new ownership arrangement and demands an unreasonable share, the heirs should seek DARAB or court intervention.

X. Conclusion
The extrajudicial partition of agricultural land in the Philippines, especially when a tenant is involved, poses distinct challenges rooted in both civil and agrarian law. The paramount principle is that valid tenants enjoy security of tenure, and any attempt to remove them or ignore their rights without legal basis may be thwarted by the comprehensive protective framework established in agrarian statutes. At the same time, tenants cannot unilaterally insist upon ownership of half the property if no lawful basis supports such a claim. The confluence of rights, obligations, and procedures in these circumstances demands a nuanced and methodical approach, often aided by legal counsel.

For heirs, the logical steps include verifying the tenant’s legal status, examining agrarian reform coverage, considering possible negotiated outcomes, and, if all else fails, pursuing a formal determination before the DARAB. Throughout each stage, compliance with legal requisites—such as proper documentation, publication, and tax payment—safeguards the validity of the extrajudicial partition. By proactively following established procedures and recognizing the rights of legitimate agricultural tenants, heirs can effectively protect their inherited interests while upholding the social justice objectives enshrined in Philippine law.