Termination of Agricultural Tenancy

DAR ADMINISTRATIVE ORDER NO.
02-06 (March 15, 2006)

SUBJECT: Revised Rules and Procedures Governing Leasehold Implementation in
Tenanted Agricultural Lands
VI. RIGHTS AND OBLIGATIONS
A. Rights of Agricultural Lessees. — It shall be the right of the
agricultural lessee to:
xxx xxx xxx
7. Terminate the leasehold during the agricultural year for any of the
following causes:
7.1 Cruel, inhuman or offensive, treatment of the agricultural lessee or nay member
of his immediate farm household by the agricultural lessor or his representative with the
knowledge and consent of the lessor;
7.2 Non-compliance on the part of the agricultural lessor with any of the obligations
imposed upon him by the provisions of R.A. No. 3844 or by his contact with the
agricultural lessee;
7.3 Compulsion of the agricultural lessee or any member of his immediate farm
household by the agricultural lessor to do any work or render any service not, in any
way connected with farm work or even without compulsion if no compensation is paid;
7.4 Commission of a crime by the agricultural lessor or his representative against
the agricultural lessee or any member of his immediate farm household; or
7.5 Voluntary surrender due to circumstances more advantageous to him and his
family.
R.A. No. 3844 (August 8, 1963)

AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO
INSTITUTE LAND REFORMS IN THE PHILIPPINES, INCLUDING THE
ABOLITION OF TENANCY AND THE CHANNELING OF CAPITAL INTO
INDUSTRY, PROVIDE FOR THE NECESSARY IMPLEMENTING AGENCIES,
APPROPRIATE FUNDS THEREFOR AND FOR OTHER PURPOSES.
Section 9. Agricultural Leasehold Relation Not Extinguished by Death or Incapacity of
the Parties. — In case of death or permanent incapacity of the agricultural lessee to
work his landholding, the leasehold shall continue between the agricultural lessor and
the person who can cultivate the landholding personally, chosen by the agricultural
lessor within one month from such death or permanent incapacity, from among the
following: (a) the surviving spouse; (b) the eldest direct descendant by consanguinity;
or (c) the next eldest descendant or descendants in the order of their age: Provided,
That in case the death or permanent incapacity of the agricultural lessee occurs during
the agricultural year, such choice shall be exercised at the end of that agricultural year:
Provided, further, That in the event the agricultural lessor fails to exercise his choice
within the periods herein provided, the priority shall be in accordance with the order
herein established.
In case of death or permanent incapacity of the agricultural lessor, the leasehold shall
bind his legal heirs.
Section. 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period,

etc.—The agricultural leasehold relation under this Code shall not be extinguished by
mere expiration of the term or period in a leasehold contract nor by the sale, alienation
or transfer of the legal possession of the landholding. In case the agricultural lessor
sells, alienates or transfers the legal possession of the landholding, the purchaser or
transferee thereof shall be subrogated to the rights and substituted to the obligations of
the agricultural lessor.
Section 8. Extinguishment of Agricultural Leasehold Relation. — The agricultural

leasehold relation established under this Code shall be extinguished by:
(1) Abandonment of the landholding without the knowledge of the agricultural
lessor;
(2) Voluntary surrender of the landholding by the agricultural lessee, written notice
of which shall be served three months in advance; or
(3) Absence of the persons under Section 9 to succeed to the lessee, in the event of
death or permanent incapacity of the lessee.
Apart from the grounds in Section 8, the leasehold relation may be terminated by the
agricultural lessee under Section 28 of Republic Act No. 3844:
Section 28. Termination of Leasehold by Agricultural Lessee During Agricultural Year. —
The agricultural lessee may terminate the leasehold during the agricultural year for any
of the following causes:
(1) Cruel, inhuman or offensive, treatment of the agricultural lessee or any
member of his immediate farm household by the agricultural lessor or his
representative with the knowledge and consent of the lessor;
(2) Non-compliance on the part of the agricultural lessor with any of the
obligations imposed upon him by the provisions of this Code or by his
contract with the agricultural lessee;
(3) Compulsion of the agricultural lessee or any member of his immediate farm
household by the agricultural lessor to do any work or render any service not
in any way connected with farm work or even without compulsion if no
compensation is paid;
(4) Commission of a crime by the agricultural lessor or his representative against
the agricultural lessee or any member of his immediate farm household; or
(5) Voluntary surrender due to circumstances more advantageous to him and his
family.
Lastly, the agricultural lessee may be ejected from the landholding, thus, extinguishing
the leasehold relation, but only upon a final and executory judgment of a competent
court. Section 36 of Republic Act No. 3844, as amended by Republic Act No. 6389,
states:
Section 36. Possession of Landholding; Exceptions.- Notwithstanding any agreement as
to the period or future surrender of the land, an agricultural lessee shall continue in the
enjoyment and possession of his landholding except when his dispossession has been
authorized by the Court in a judgment that is final and executory if after due hearing it
is shown that:
(1) The landholding is declared by the department head upon recommendation of
the National Planning Commission to be suited for residential, commercial,
industrial or some other urban purposes: Provided, That the agricultural lessee
shall be entitled to disturbance compensation equivalent to five times the
average of the gross harvests on his landholding during the last five preceding
calendar years;
(2) The agricultural lessee failed to substantially comply with any of the terms and
conditions of the contract or any of the provisions of this Code unless his failure
is caused by fortuitous event or force majeure;
(3) The agricultural lessee planted crops or used the landholding for a purpose other
than what had been previously agreed upon;
(4) The agricultural lessee failed to adopt proven farm practices as determined
under paragraph 3 of Section 291;
1
SEC. 29. Rights of the Agricultural Lessor.—It shall be the right of the agricultural lessor:
(1) To inspect and observe the extent of compliance with the terms and conditions of their contract and the
provisions of this Chapter;
(5) The land or other substantial permanent improvement thereon is substantially
damaged or destroyed or has unreasonably deteriorated through the fault or
negligence of the agricultural lessee;
(6) The agricultural lessee does not pay the lease rental when it falls due: Provided,
That if the non-payment of the rental shall be due to crop failure to the extent of
seventy-five per centum as a result of a fortuitous event, the non-payment shall
not be a ground for dispossession, although the obligation to pay the rental due
that particular crop is not thereby extinguished; or
(7) The lessee employed a sub-lessee on his landholding in violation of the terms of
paragraph 2 of Section 272.
The same Section 36, in item 1, provides that an agricultural lessee may be ejected
should the landholding be converted for uses for other non agricultural classifications,
i.e., residential, commercial, or industrial. However, the agricultural lessee must be paid
disturbance compensation equivalent to five (5) times the average of the gross harvests
on his landholding during the last five (5) preceding calendar years.
Of the provisions of Republic Act No. 3844, only Section 35 was repealed by the present
legislation governing agrarian relations, the Comprehensive Agrarian Reform Law. Add
Section 53 of Republic Act No. 3844, which was repealed by Republic Act No. 9700 that
(2) To propose a change in the use of the landholding to other agricultural purposes, or in the kind of crops to be
planted: Provided, That in case of disagreement as to the proposed change, the same shall be settled by the Court
according to the best interest of the parties concerned: Provided, further, That in no case shall an agricultural
lessee be ejected as a consequence of the conversion of the land to some other agricultural purpose or because of
a change in the crop to be planted;
(3) To require the agricultural lessee, taking into consideration his financial capacity and the credit facilities
available to him, to adopt in his farm proven farm practices necessary to the conservation of the land,
improvement of its fertility and increase of its productivity: Provided, That in case of disagreement as to what
proven farm practice the lessee shall adopt, the same shall be settled by the Court according to the best interest of
the parties concerned; and
(4) To mortgage expected rentals.
2
SEC. 27. Prohibitions to Agricultural Lessee.—It shall be unlawful for the agricultural lessee:
(1) To contract to work additional land holdings be longing to a different agricultural lessor or to acquire and
personally cultivate an economic family-size farm, without the knowledge and consent of the agricultural lessor
with whom he had entered first into leasehold, if the first landholding is of sufficient size to make him and the
members of his immediate farm household fully occupied in its cultivation; or
(2) To employ a sub-lessee on his landholding: Provided, however, That in case of illness or temporary incapacity
he may employ laborers whose services on his Landholding shall be on his account.
amended the Comprehensive Agrarian Reform Law. In effect, the rest of the provisions
of Republic Act No. 3844, as amended, still has suppletory application

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DAR ADMINISTRATIVE ORDER NO.

02-06 (March 15, 2006)

R.A. No. 3844 (August 8, 1963)

Section. 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period,

Section 8. Extinguishment of Agricultural Leasehold Relation. — The agricultural

(4) To mortgage expected rentals.

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