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LEASEHOLD SYSTEM: ESSENCE:

O THIS IS A MODE OF LAND TENURE ALLOWED UNDER RA 1. Essentially personal


NO. 3844 2. Nature of an in rem or real relationship
O THIS SYSTEM IS CHARACTERIZED BY A TENANT-
FARMER PERSONALLY AND ACTUALLY CULTIVATING The agricultural lessor and the agricultural lessee shall be FREE
THE FARMHOLDING UNDER A LEASEHOLD to ENTER into any kind of TERMS, CONDITIONS or
RELATIONSHIP WHERBY THE LESSEE PAYS A FIXED STIPULATIONS in a LEASEHOLD CONTRACT as long as they
AMOUNT OF RENTAL WHETHER IN CASH OR IN KIND are not contrary to LAW, MORALS OR PUBLIC POLICY. Sec. 15
Republic Act No. 3844
TO THE LESSOR (OWNER OR LEGAL POSSESSOR OF
THE LAND)
Agricultural Leasehold shall apply to all tenanted agricultural
O PD 27 DISALLOWS LEASEHOLD SYSTEM WITH RESPECT
lands, including but not limited to the following
TO AREAS DEVOTED TO RICE AND CORN IN EXCESS OF
SEVEN (7) HECTARES COVERED BY OPERATION LAND Retained areas under R.A. 6657 and P.D. 27;
TRANSFER. Tenanted Agricultural Lands not yet acquired for
distribution under CARP pursuant to RA 6657;
CREATION OF LEASEHOLD RELATIONSHIP: All tenanted areas under Section 10 of RA 6657 which
O BY AGREEMENT OF THE PARTIES (BETWEEN LESSOR may be covered by this Order. (Administrative Order No.
AND LESSEE) 4, Series of 1989)
O BY OPERATION OF LAW
- THIS IS BROUGHT ABOUT BY THE IMPLEMENTATION Doctrine on Security of Tenure
OF RA NO. 3844 PROVIDING FOR THE ABOLITION OF SHARE The agricultural leasehold relation under this Code shall not be
TENANCY. extinguished by MERE EXPIRATION OF THE TERM OR PERIOD
SAMPLE CASE: in a leasehold contract nor by the SALE, ALIENATION OR
B , AN AGRICULTURAL WORKER, VOLUNTEERED TO TILL THE TRANSFER of the legal possession of the landholding. and that,
LAND OF A, A RICH, POWERFUL AND FAMOUS BUSINESSMAN In case the agricultural lessor SELLS, ALIENATES, OR
FROM CEBU. BECAUSE OF BS PASSION IN CULTIVATING THE TRANSFER the legal possession of the landholding, the
LAND AND HIS DESIRE TO MAKE AS LAND PRODUCTIVE, THE PURCHASER OR TRANSFEREE thereof shall be subrogated to
RICH MAN DID NOT OBJECT THE CULTIVATION OF HIS 5 the right and substituted to the obligations of the agricultural
lessor. Sec. 10, RA 3844,
HECTARES LAND BECAUSE OF THE FACT THAT THIS POWERFUL
MAN HAD RECEIVED MANY BENEFITS IN THE PAST THROUGH BS
Retention of ownership of the land:
ACTS.
In Leasehold Tenancy, the Landowner or agricultural lessor
RETAIN OWNERSHIP of the subject landholding. The landowner
OTB PLUS 10 RULE! EXERCISES the ATTRIBUTED OF OWNERSHIP.
CHECK IF:
IS THERE OBJECTION TO THE CONTINUED CULTIVATION OF Transferability of Landholding:
THE LAND FROM THE LANDOWNER? 1. Sale, Alienation or Transfer of the legal possession
IS THERE TOLERATION TO THE CONTINUED CULTIVATION of the landholding.
THEREOF BY THE AGRICULTURAL WORKER? 2. Extinguishment of Agricultural Leasehold Relations
IF THE LANDHOLDER CONTINUES TO RECEIVE BENEFITS FROM Sec. 8, RA 3844
THE CULTIVATION OF THE LAND a) Abandonment
- IF THE LANDOWNER ALLOWS ANOTHER TO CULTIVATE HIS b) Voluntary Surrender
LAND IN THE CONCEPT OF TENANT FOR THE PERIOD OF 10
YEARS (SUMEA VS. JUMAQUIO,ET AL., CASE NO. 30-BULACAN, Extinguishment of Agricultural Leasehold Relation
FEB 28, 1957) 1.) Abandonment of the landholding without the
knowledge of the agricultural lessor;
PARTIES TO THE LEASEHOLD RELATION: 2.) Voluntary surrender of the landholding by the
O LANDOWNER WHO IS EITHER THE LAWFUL OWNER agricultural lessee, written notice of which shall be served three
OF THE LAND, OR THE LEGAL POSSESSOR OR WHO months in advance; or
3.) Absence of the persons under Section nine to
MAY BE A LESSEE OR USUFRUCTUARY UNDER THE
succeed to the lessee, in the event of death or permanent
CIVIL LAW CONCEPT
incapacity of the lessee.
O PERSON WHO PERSONALLY CULTIVATES THE LAND
Agricultural Leasehold Relation Not Extinguished by Death or
Essential Elements of Tenancy Relationship Incapacity of the Parties
1) The parties are the landholder and the tenant; Such person shall be chosen by the lessor within one month from
2) The subject is agricultural land; such death or permanent incapacity from the following:
3) There is consent;
4) The purpose is agricultural production; 1.) the surviving spouse;
5) There is personal cultivation; 2.) the eldest direct descendant by
6) There is sharing of harvest or payment of rentals. consanguinity; or
(Caballes vs. DAR, 168 SCRA 247; Qua vs. Court of 3.) the next eldest descendant or
Appeals, 198 SCRA 247.) descendants in the order of their age.

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