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  • The 99-Year Lease Debate: Implications for Real Estate and Other Looming Risks

    (Part 2 of 2)

    By Realttorney®

    Despite the passage of the “99-Year Lease Law” on third and final reading by both Houses of Congress on December 24, 2024, there is a chance that it will not become law in the next 6 months. After the May 2025 elections, it seems our legislators may have no appetite to push for the harmonization of the 2 versions of the bill in the bicameral conference, and the subsequent ratification of the approved version by both chambers of the Congress of the Philippines.

    While the proposal to amend Republic Act No. 7652 to extend the lease term for foreign investors to 99 years aims to attract more foreign capital and boost economic growth, it has generated several arguments against its enactment into law. Let us discuss some of these criticisms here.

    This is an opportune time for all real estate stakeholders to learn about the various risks and challenges if the proposed amendments become law. And, by the end of the article, we shall discuss the key takeaways for real estate service practitioners as they practice and serve valued clients in their chosen profession.

    As discussed in the previous article, the proposed amendments to Rep. Act No. 7652 seem constitutionally sound. However, critics argue that a 99-year lease is practically equivalent to foreign ownership of land, which is prohibited under the Philippine Constitution to protect national patrimony. Cause-oriented groups fear this could create loopholes allowing foreigners and foreign-owned entities to gain excessive control over the country’s land and resources over an extended period.

    In addition, detractors of the “99-Year Lease Law” view this 99-year lease contract as a multi-generational lease, far exceeding the average global life expectancy. As such, this long duration raises concerns about the potential for foreigners and foreign-owned entities to establish long-lasting dominance over strategic lands all over the Philippines.

    Furthermore, the extended security over private lands provided to foreign investors may create an uneven competitive landscape. Local enterprises may face challenges competing with foreign investors who have greater incentives and long-term stability in land access. This imbalance could hinder the growth and success of local businesses in the real estate sector.

    Hence, while the extension of a lease up to an aggregate period of 99 years may bring opportunities for growth and development in the real estate market, it is crucial to carefully consider and address the potential challenges and risks associated with this incentive. Therefore, we should understand the risks and learn how to mitigate them so that the real estate sector can continue to thrive and contribute positively to the Philippine economy.

    What are the potential challenges facing the real estate sector if Rep. Act No. 7652 is successfully amended?

    One major concern is the reduced availability of private land for domestic use. Long-term leases effectively take land out of circulation for nearly a century, which could worsen the scarcity of prime land in urban and highly industrialized areas. This scarcity may drive up costs for local businesses and residents, impacting the overall economic landscape.

    The passage of this law will impact the housing market, especially the socialized, low-cost to mid-market housing projects, in a negative way. Apart from the issue of affordability of such housing units, the passage of the “99-Year Lease Law” will drastically affect the supply of such housing projects, thereby exacerbating the ability of government to provide decent and affordable housing units to the low-income Filipinos.

    In addition, there is apprehension that the extended lease terms could lead to increased land values, potentially displacing local investors or developers and making it harder for Filipinos to afford land and housing in their own country.

    What are the potential negative impacts on agriculture and the local communities tied to agriculture?

    Socio-civic organizations have raised concerns that agricultural lands awarded to agrarian reform beneficiaries (ARBs) could be targeted for long-term lease for 99 years by foreign investors or foreign-owned entities. If so, this will undermine the goals of land redistribution and, most importantly, food security.

    Therefore, this amendatory bill, if signed into law, could lead to the expansion of large-scale agribusinesses controlled by foreign corporations, to the detriment of small-scale farmers and other local food producers in the Philippines.

    Historically, the government’s Comprehensive Agrarian Reform Program (CARP) is designed to ensure the fair distribution of land to farmers and enhance agricultural productivity. The proposed amendments to the Investor’s Lease Act include provisions that require leases to adhere to agrarian reform laws.

    However, there are several concerns that need to be addressed. First, the detractors of the amendments see a potential risk that foreign investors may attempt to convert agricultural lands for industrial or commercial purposes. In their view, this could reduce the amount of land available for agrarian reform beneficiaries and jeopardize the long-term sustainability of the agricultural sector.

    But we have to remember that there are certain safeguards included in the amendments that would hopefully prevent these things from happening. If such eventualities happen, then it would not be the failure of the letter of the law and its implementing rules and regulations, but due to the weakness of the character of those implementing the agrarian reform law and the implementing agencies of the amendatory law.

    Second, and this is my opinion, enacting these amendments into law without the overall framework of a National Land Use Plan would present great regulatory challenges for the government regulators to manage and plan the use of land that is best for the Philippines, its regions, provinces, and cities.

    Without a comprehensive land use plan, each local government unit (LGU) will compete for the setting up of investment projects in their localities while sacrificing the need for human settlements, food production, and the protection of the environment and ancestral domains, if any, within their territorial jurisdiction.

    Monitoring and enforcing compliance of land use regulations of each LGU will be fragmented at best and may place a strain on government resources. Without effective oversight, there is a possibility of exploitation or non-compliance with the objectives of the Investor’s Lease Act, the laws on the environment, agrarian reform and other regulations.

    Furthermore, critics worry that the bill’s definition of “private lands” might be vague enough to include ancestral domains, putting these lands at risk of being leased to foreign investors and eroding the heritage and identity of indigenous communities. But of course, Rep. Act No. 8371 (the Indigenous Peoples’ Rights Act) will hopefully provide adequate protection and safeguards to the Indigenous Peoples’ Ancestral Domains.

    On a positive note, the proposed amendments to the Investor’s Lease Act could attract foreign investments in agro-industrial ventures. This could lead to increased employment opportunities for farmers and the introduction of modern agricultural technologies for the use of Filipino farmers.

    Thus, while the government’s land reform program has the potential to bring about positive changes in the agricultural sector, it is crucial to address the aforementioned concerns to ensure all stakeholders in the agricultural sector benefit from all foreign investments in agriculture and agro-industrial ventures.

    Economic Dependency and Lack of Real Impact: Some argue that such a long lease term could lead to economic dependence on foreign-owned entities, with control over significant land areas potentially shifting to foreign interests. Moreover, analysts suggest that the length of the land lease might not be the primary deterrent to foreign investment in the Philippines. Other factors like expensive power, poor infrastructure, governance issues, and graft and corruption might be more significant constraints. Therefore, extending the lease term alone might not guarantee a substantial increase in foreign investment or long-term economic development.

    What then are the key takeaways for Real Estate Service Practitioners?

    The proposed amendments to the Investor’s Lease Act could bring forth a myriad of challenges and opportunities for real estate service practitioners (RESPs) and real estate investors and developers.

    The first thing to keep in mind is the possible rise in demand for advisory services for RESPs. With lease terms being extended, foreign investors will seek expert guidance to navigate local laws and ensure the legality and sustainability of their lease agreements.

    Second, the increase in foreign direct investments in the Philippines may lead to an increase in demand for medium-scale or large-scale property development projects, opening doors for local partnerships and joint ventures for the clients of RESPs or the RESPs themselves.

    Third, the possible growing demand for real estate projects will necessitate that RESPs conduct thorough due diligence to guarantee that leased properties adhere to agrarian reform laws and local zoning ordinances, among others.

    Finally, it is imperative for RESPs to play a role in advocating for policies that strike a balance between protecting national interests and fostering economic growth. Ultimately, RESPs must be agents of positive change for all stakeholders in the real estate industry.

    RESPs must be prepared to adapt to the changes brought about by the forthcoming amendments to the Investor’s Lease Act and seize the opportunities it presents. By staying informed and proactive, RESPs can navigate the evolving landscape of the real estate industry with confidence and success.

    In conclusion, the proposed amendments to the Investor’s Lease Act demonstrate the government’s dedication to attracting foreign direct investments. While the proposed 99-year lease period is constitutionally acceptable, it is crucial to consider the potential drawbacks, such as impacts on land availability, the real estate market, and the land reform program, among others.

    To ensure that this policy achieves its objectives without compromising national interests, it is essential to establish robust safeguards, clear regulations, and transparent implementation by government officials. For professionals in the real estate industry, this development highlights the importance of staying informed and proactive in guiding clients through the changing legal landscape.

    Whether assisting foreign investors or safeguarding the rights of Filipino landowners, the real estate sector must serve as a conduit between opportunity and compliance. While proponents argue that a 99-year lease term will attract foreign investment and stimulate the economy, opponents voice significant concerns regarding national sovereignty, potential displacement of local communities, negative impacts on agriculture, questionable economic benefits, and potential legal complexities.

    The stakeholders in the real estate industry, especially RESPs, should urge Congress and the Executive Department to exercise caution and prioritize the long-term interests of Filipino citizens and national patrimony.

    Do you have anything to add? Or do you disagree with what we have written? Your comments will be very much welcomed.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Discovering Alfonso, Cavite: The Perfect Place to Invest in Agri-Tourism and More

    “The Philippines is a developing nation with ideal conditions which position it as one of the best destinations for agri-tourism.”

    – Asia Research Media, “The Rise of Agri-Tourism in the Philippines” on October 2013

    By Realttorney®

    Image source: The Playground in Royale Tagaytay Country Club. The club is a nine-hole garden golf course that is 3,079 yards long. It is described as a garden golf course because of the beautiful flora that surrounds it. It is located in Brgy. Buck Estate, Alfonso, Cavite.

    Alfonso is part of the third Growth Area, under the Cavite Provincial Development and Physical Framework Plan 2021 – 2030, known as Metro Tagaytay or the Tourism Haven and Food Basket of the Province. It is an upland town situated in the southwestern part of the Province of Cavite.

    Alfonso, Cavite is 74 kilometers from Manila via Tagaytay. Magallanes is on its western side, Batangas Province on its southern side, Mendez and Tagaytay on its eastern side, General Aguinaldo on its northwestern side, and Maragondon and Indang on its northeastern side.

    Images from Wikipedia – https://en.wikipedia.org/wiki/Alfonso,_Cavite

    Why write about Alfonso, Cavite now? Well, aside from frequenting it often, it is a municipality that has gained attention for its natural beauty, cool climate, and emerging real estate opportunities. As a licensed real estate broker who has been a resident of Indang, Cavite for more than a decade, I will provide critical insights that are valuable for those interested in investing in real estate in Alfonso, Cavite.

    Here are 5 key facts you need to know about the upland town of Alfonso.

    1. Alfonso was once part of Indang, Cavite. The town was originally part of Barrio Lumampong in the town of Indang. Over time, the pocket settlements grew into sitios and later into barrios. The town became a separate district municipality from Indang on March 16, 1859, through the efforts of the community leaders Bonifacio Aveo and Felix del Mundo.

    The new town was called Alas-as for seventeen years. The name refers to the pandan tree used for the construction of houses and bears sweet fruit. It was, eventually, named after King Alfonso XII of Spain, son of Isabella II.

    On October 15, 1903, the adjacent towns of Bailen (now, the Municipality of General Emilio Aguinaldo) and Mendez-Nuñez merged with Alfonso under Act No. 947 enacted by the Philippine Commission. Both towns were later separated in 1915 to become independent once again.

    2. Climate Excellence. One of the distinguishing features of Alfonso is its cool climate, reminiscent of Tagaytay, but less crowded and with more lush greenery. This climate advantage makes it a preferred destination for those seeking respite from the heat of urban areas.

    The temperature in Alfonso has a yearly average of 20 to 27 degrees Celsius, with the highest temperature reaching 29, 30, and 29 from March, April, and June, respectively.[1] But you will still enjoy its cold breeze from late afternoon to nighttime.

    This climate advantage is not just an environmental boon but also a factor that real estate brokers can leverage in marketing properties, especially for those looking to invest in second homes, vacation rentals (Airbnb), restaurants, resorts, and/or events places, and other development projects.

    3. A Place of Culinary Distinction. There are numerous restaurants in Alfonso, Cavite. The entire municipality offers a gastronomic adventure, with flavors from around the world at every bend on the road. Here are some of the best restaurants in Alfonso, Cavite itself.

    First, Lime and Basil offer Thai cuisine. Second, Lequestria Cafe and Restaurant offers French, Indian, Filipino, and Asian cuisine. Third, Marcia Adams offers Mediterranean cuisine. Fourth, Surugin Ramen House offers Japanese cuisine. Fifth, Amare La Cucina Tagaytay offers Italian cuisine. Finally, Sentro Botanikos offers Vegan and Healthy cuisine. These places are purely restaurants, and they are not the only places that satisfy the epicurean delights of their customers.

    In addition, Alfonso is also home to various wedding venues and bed and breakfast businesses with onsite restaurants. The first example that comes to mind is Sonya’s Secret Garden located in Brgy. Buck Estate, Alfonso, Cavite. Second is Girasol along Tagaytay Nasugbu Highway. And, finally, Hill Creek Gardens along Luksuhin-Mangas Road.

    FUN FACT: When you see the website addresses of Girasol and Hill Creek Gardens both include the word “Tagaytay”. But, now you know that these wonderful places are located in Alfonso, not Tagaytay.

    4. Infrastructure Development. While it is not as urbanized as neighboring Tagaytay, Alfonso has been experiencing gradual infrastructure development, including road improvements and utilities.

    One of the major roads that have been opened to serve the residents and visitors of the Metro Tagaytay area is the Tagaytay-Alfonso Bypass Road. If you are still unfamiliar with this new road, it starts at the end of TCI Road where the Tagaytay Public Cemetery is situated, and ends at the Luksuhin-Mangas Road.

    As of the time of this writing, a portion of Bypass Road that passes through Brgy. Mahabang Kahoy Balagbag, Indang, Cavite connecting it to Brgy. Patutong Malaki North, Tagaytay City is still unpassable. Moreover, the portion from Tagaytay-Mendez Road to Maglabe Drive in Brgy. Guinhawa North, Tagaytay City is likewise still unpassable.

    Aside from the Bypass Road, the East-West Lateral Road creates greater accessibility going to the Municipality of Alfonso. The Lateral Road is a 41.67-kilometer road project that will connect two national roads: the Cavite-Batangas Road in the east and the Ternate-Nasugbu Road in the west.

    It will traverse the municipalities of Silang, Amadeo, Indang, Maragondon, General Aguinaldo, Magallanes in Cavite, and Nasugbu in Batangas. The project is part of the Build, Build, Build program of the government and is expected to be completed by 2024. The road will provide faster and easier access to the tourist destinations and agricultural areas in the region.

    Finally, the proposed Cavite-Batangas Expressway (CBEX) will provide faster and easier access to the tourist destinations and agricultural areas of Silang, Amadeo, Tagaytay, Indang, Mendez, and Alfonso in Cavite – all part of Metro Tagaytay – before crossing into Nasugbu, Batangas. If all goes as planned, there will be 2 interchanges of CBEX that will be located in the Municipality of Alfonso.

    The net effect of the opening of new portions of the Bypass Road (even though not completely opened), the completion of the East-West Lateral Road, and the future opening of CBEX is that real estate values have been rising in almost every corner of the Alfonso, Amadeo, and Indang. Easy access to once inaccessible parts of Alfonso has attracted new businesses and promoted economic growth in the municipality as well as the Metro Tagaytay area.

    5. Agricultural Richness and Agri-tourism Potential. Did you know that Alfonso has a strawberry farm? It is called Queens Strawberry Farm and it is a farm-to-table agri-tourism complex composed of a farm, restaurant, and Bed-and-Breakfast accommodations. Aside from Sonya’s Secret Garden mentioned above, Luntiang Republika is a sustainable and eco-friendly farm. This farm offers guided tours, workshops, and other activities to educate visitors about the importance of sustainability and the benefits of organic farming.

    Another agri-tourism site that you can visit and take ideas from when you want to create your own agri-tourism complex is Preziosa Farms. Previously known as “Preziosa Botanical Park and Farm Resort,” it is located in Brgy. Sulsugin, Alfonso, Cavite. It has 3 main features in all – The Farm, The Akela Campsite and The Villas.

    And, another agri-tourism site located in Brgy. Palumlum is The Coffee Farmhouse. It is a farm that is all about coffee. But, it also has Bed-and-Breakfast accommodations and several recreational facilities where activities like biking, strolling, swimming, basketball, volleyball, badminton, table tennis, billiards, darts, camping, and relaxing on a hammock under coffee trees are available to do in the Farmhouse complex.

    The final agri-tourism site that comes to mind is probably one of my favorite due to its proximity to our home in Indang, Cavite. Camp Benjamin is situated in Brgy. Taywanak Ilaya, Alfonso, Cavite. It is an all-inclusive resort with a Hotel and Restaurant, Event Center, Farm, and other indoor and outdoor amenities.

    With the 10-year moratorium on building residential housing projects in Alfonso, Cavite, the best investment opportunities here are agri-tourism projects and farm lot development projects. As you can see, Alfonso is an agricultural treasure trove. The municipality is known for its fertile lands suitable for various crops such as coffee, pineapple, and other agricultural products (vegetables and high-value commercial crops).

    Plus, the potential for agri-tourism is quite significant. Real properties can be developed for agri-tourism projects, catering to the growing interest in sustainable and experiential lifestyles of Filipino urban dwellers. And there are numerous opportunities in properties that can be good candidates for such projects.

    In conclusion, the Municipality of Alfonso presents a mosaic of opportunities and considerations for those involved and interested in real estate. From its history, climate excellence, and a place of culinary distinction to its agricultural richness and agri-tourism potential coupled with the infrastructure development sprouting in and around it, this municipality could be your perfect area of investment in the near or medium term.

    If you want to know more about the opportunities for real estate investments in Alfonso, and other parts of the Metro Tagaytay area, feel free to contact us. We would be happy to assist you in determining whether your project is best suited to be located in Alfonso. Hope to hear from you soon.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

    [1]See: https://en.wikipedia.org/wiki/Alfonso,_Cavite

  • Amadeo: The Hidden Gem of Philippine Coffee Culture

    “Agriculture is our wisest pursuit, because it will in the end contribute most to real wealth, good morals, and happiness.”

    –  Thomas Jefferson, 3rd President of the Unites States of America

    By Realttorney®

    The new and much-improved facade of the Amadeo Municipal Hall

    Amadeo is part of the third Growth Area, under the Cavite Provincial Development and Physical Framework Plan 2021 – 2030, known as Metro Tagaytay or the Tourism Haven and Food Basket of the Province. This third Growth Area is composed of seven other municipalities and one city, which we will feature in more articles in the future. Indang, Cavite was the first one featured several days ago.

    Why write about Amadeo, Cavite second? Everyone needs to know that Amadeo has ecological and environmental importance for the Province of Cavite and the National Capital Region, as well.

    There are six major river systems in Cavite namely, Maragondon, Labac-Alemang, Timalan, Cañas, San Juan, and Imus River. These river systems provide a plethora of ecological functions and services that are critical to both the natural environment and human populations.

    “The Cañas River Watershed runs from South to North before draining to Manila Bay. The headwaters of Cañas River Watershed are found in Tagaytay. The river network passes through the municipalities of Indang and Amadeo. It continues down to Trece Martirez, General Trias, and Tanza. It exits at the municipality of Rosario, Cavite.”[1]

    From a natural perspective, the rivers of upland Cavite and their surrounding habitats are home to a diverse array of plants (catmon, banaba, Ylang-Ylang, and carabao mango trees) and animals, many of which are endemic to the Southern Tagalog region and play important ecological roles. The Cañas River system also serves as a corridor for wildlife movement and migration, contributing to the resilience and diversity of ecosystems in the Province.

    On a human level, the Cañas River system provides invaluable services such as access to water for drinking, irrigation, and industrial use. Many human settlements and cities in Cavite rely on the six major river systems as a primary source of water, making their conservation and management crucial for sustained human development.

    Aside from these facts, as a real estate service practitioner, I need to inform you of the myriad of opportunities that are aplenty in this town neighboring the eastern side of Indang, Cavite.

    Here are some interesting facts you need to know about the upland town of Amadeo, Cavite:

    Source: https://www.crowdsourcedexplorer.com/amadeo-cavite-philippines/

    The old facade of the Municipal Hall of Amadeo, Cavite. Source: https://www.crowdsourcedexplorer.com/amadeo-cavite-philippines/

    1. Amadeo was once known as Masilaw, meaning “glaring” in Tagalog, because of the bright red flowers of the Dapdap trees (a.k.a. Erythrina variegata) that grew in the area. When in bloom, the trees bore bright red flowers producing a dazzling red glare from afar. In Tagalog, the term, glaring is “nakakasilaw”. After the years passed, the word was shortened and the barrio got its name “Masilaw”.

    2. Amadeo (a.k.a. Masilaw) was then a part of Silang (just like Indang), and its inhabitants had to go to Poblacion for registration, baptismal rites, matrimonial ceremonies, and even funeral services. At that time, public transportation was scarce and travel was difficult. A move initiated by the leaders of the barrios namely Leoncio Ramos, Geronimo Bayot, and Andres Villanueva succeeded in making Masilaw a town independent from Silang in 1872.

    3. Amadeo was founded on July 15, 1872, by Governor General Rafael Izquierdo y Gutiérrez, and named after King Amadeo I of Spain. For 21 years, Amadeo was recognized as a town, even by the Revolutionary Government under General Emilio Aguinaldo.

    In fact, the revolutionists gave it the Tagalog Name “Maypag-ibig” (With Love), in line with the revolutionary policy of giving native names to towns having alien names to erase every vestige of the country’s colonial past. However, on October 15, 1903, it was returned to Silang under Act No. 947, as the Provincial Executive, displeased with the way Amadeo was governed, reverted it as a district under Silang, Cavite.

    The people resented this decision. Once again, its leaders took the cudgels of working for the separation of Amadeo from Silang. Finally, in 1915, during the administration of Governor Antero S. Soriano, Amadeo regained its independence. Geronimo Bayot became the first municipal president.[2]

    4. Amadeo has a population of 41,901 people as of the 2020 census, with a density of 1,100 inhabitants per square kilometer or 2,800 inhabitants per square mile. This makes it the least populous municipality in the Province of Cavite.

    5. Finally, Amadeo is the Coffee Capital of the Philippines, producing the largest amount of coffee in the province of Cavite. It has a land area of 47.90 square kilometers devoted to coffee farming. It may not be the biggest coffee-producing municipality in the country, but it sure is the most passionate when it comes to this most sought-after beverage in the daily lives of Filipinos.

    Amadeo hosts the annual Pahimis Festival, a Thanksgiving celebration for the bountiful harvest of coffee. The festival features cultural shows, trade fairs, coffee tastings, and a street parade. As such, it has emerged as a hidden gem in the country’s vibrant coffee culture.

    Despite being overshadowed by more popular destinations for coffee production and consumption, such as Batangas and Benguet, Amadeo has steadily gained recognition for its unique contribution to the Philippine coffee landscape, which is characterized by its rich historical roots, geographical advantages, variety, and quality of coffee beans, and the role of local stakeholders in fostering this burgeoning industry.

    Historical Context. Coffee cultivation in the Philippines dates back to the Spanish colonial era when the archipelago was introduced to coffee by Spanish friars in the late 17th century. Over time, coffee farming spread across various regions, each contributing distinct flavors and characteristics to Philippine coffee culture.

    Amadeo’s coffee industry dates back to the 19th century when it was introduced by Spanish colonizers. However, the Province of Batangas gained early prominence due to the fertile volcanic soil. But, over the years, Amadeo’s contribution to the Philippine coffee landscape can be attributed to several factors.

    Geographical Advantage. The town’s geographical location plays a crucial role in its emergence as a coffee hub. Situated in the highlands of Cavite, Amadeo benefits from a unique microclimate that is conducive to coffee cultivation.

    The municipality’s elevation, combined with its well-drained soil and moderate temperatures, creates an ideal environment for growing coffee beans with rich flavors and aromas. These natural advantages have attracted coffee enthusiasts and farmers alike, leading to the re-establishment of numerous coffee plantations and processing facilities in the area.

    Variety and Quality. One of the distinguishing features of Amadeo’s coffee culture is the variety and quality of beans produced. The municipality is known for cultivating a diverse range of coffee varieties, including Arabica, Robusta, and Excelsa. Each variety offers a unique taste profile, from the fruity and floral notes of Arabica to the bold and earthy flavors of Robusta.

    Furthermore, local farmers in Amadeo have adopted sustainable farming practices, such as organic farming and shade-grown cultivation, to enhance the quality and sustainability of their crops. This commitment to quality has garnered attention from coffee aficionados and industry experts, solidifying Amadeo’s reputation as a producer of premium coffee beans or specialty coffee production.

    Community Engagement. The growth of Amadeo’s coffee industry is not solely attributable to its geographical and agricultural attributes; community engagement has also played a crucial role. Local stakeholders, including government agencies, non-profit organizations, and community-based cooperatives, have been instrumental in promoting coffee farming and entrepreneurship in the municipality.

    Initiatives such as training programs, financial support, and market access have empowered local farmers to improve their practices and expand their businesses. Additionally, the annual celebration of the Pahimis Festival and other tourism initiatives have drawn attention to Amadeo’s coffee culture, attracting visitors, entrepreneurs, and real estate investors alike.

    As Amadeo continues to gain recognition in the Philippine coffee scene, the municipality stands at a pivotal juncture with promising prospects for future growth. With increasing demand for specialty coffee both domestically and internationally, Amadeo has the opportunity to position itself as a leading producer of premium coffee beans in the Philippines.

    However, this growth must be balanced with sustainable practices to ensure the long-term viability of the local coffee industry. By leveraging its historical legacy, geographical advantages, and community engagement, Amadeo has the potential to emerge as a prominent player in the global coffee market.

    In conclusion, Amadeo, Cavite, represents a hidden gem in Philippine coffee culture, characterized by its rich historical roots, geographical advantages, and community-driven initiatives. As a producer of premium coffee beans with diverse flavors and high quality, Amadeo has carved a niche for itself in the competitive landscape of Philippine coffee production.

    Moving forward, strategic investments in sustainable farming practices, infrastructure development, and market expansion are essential to unlocking the municipality’s full potential. By doing so, Amadeo can continue to contribute to the vibrant tapestry of Philippine coffee culture while providing economic opportunities for its local residents.

    Farm lot subdivisions are perfect real estate projects in Amadeo. Digital nomads, Createrpreneurs, and other professionals who are part of the Gig Economy are welcome in this 4th class municipality, whether as serious hi-tech coffee farmers, weekend farm enthusiasts, or simple nature lovers.

    Be a part of the growth of Amadeo, and its commitment to producing high-quality coffee, locally and internationally. The opening of the East-West Lateral Road and the Silang West Interchange of the Cavite Laguna Expressway (CALAX) bodes well for the appreciation of real properties, not only in Amadeo but also in the entire Metro Tagaytay Area.

    Finally, ask me about the bargains to be had for the purchase of real properties in Amadeo in 2024.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

    [1]Weenjel P. Cabral and Jhon Laurence B. Herrera, “Delineation of Cañas River Watershed in Cavite, Philippines Using Geographic Information System and Remote Sensing With Field Validation.” Undergraduate Thesis Submitted to the Faculty of Agriculture, Food, Environment, and Natural Resources, Cavite State University, Indang, Cavite, April 2016.

    [2] See https://en.wikipedia.org/wiki/Amadeo,_Cavite

  • Six Main Facts to Know About the Historic Town of Indang, Cavite

    “Paradise is exactly like where you are right now… only much, much better.”

    – Laurie Anderson, American artist, composer, musician and film director

    By Realttorney®

    Indang is part of the third Growth Area, under the Cavite Enhanced Provincial Development and Physical Framework Plan 2021 – 2030, known as Metro Tagaytay or the Tourism Haven and Food Basket of the Province. This third Growth Area is composed of seven other municipalities and one city, which we will feature in subsequent articles in the future.

    Why write about Indang, Cavite first? Well, aside from living here, Indang is a very interesting place. More importantly, as a real estate service practitioner, I have to become an expert in the area of opportunity I concentrate on.

    Here are 6 main facts you need to know about the central upland town of Indang.

    1. Indang was once a part of the Municipality of Silang, Cavite for about 70 years. Indang became a full-fledged town in 1655 when it was administratively separated from Silang to resolve the difficulties of Indangeños in transacting official business and attending religious services. Think about it. There was no East-West Lateral Road to speak of during the 1600s.

    2. Indang is a historical town. During the Philippine Revolution, Indang was known by its Katipunan name “Walang Tinag.” It belonged to the Magdiwang faction of the Katipunan headed by the Supremo – Andres Bonifacio, as opposed to the Magdalo faction headed by Gen. Emilio Aguinaldo.

    The Tejeros Convention was a revolutionary assembly held on March 22, 1897, in Rosario, Cavite. Presided over by Andres Bonifacio toward the end of the session, the Assembly decided to establish a central revolutionary government and elected Emilio Aguinaldo, President; Mariano Trias, Vice President; Artemio Ricarte, Captain General; Emiliano Riego De Dios, Director of War; and Andres Bonifacio, Director of the Interior.

    However, Daniel Tirona questioned the election of Bonifacio as Director of the War on account that the position should be held by a lawyer. Bonifacio was insulted by this act of Daniel Tirona. Hence, he voided the results of the Convention as Supremo of the Katipunan.

    He then retreated to Indang to regroup. His arrest was ordered by the newly-elected President Aguinaldo to prevent Bonifacio from pursuing his counter-revolutionary plan to set up a separate government and army to proceed with his own plans for the revolution. Andres Bonifacio was arrested in Barangay Limbon, Indang, This is the exact place Bonifacio retreated to after nullifying the election to decide the leaders of the revolutionary government in Rosario, Cavite. The Bonifacio Shrine stands as a reminder of this historical fact.

    3. Indang is a center of academic learning. In the heart of this Municipality can be found the main campus of the Cavite State University (CvSU), known as the Don Severino De Las Alas Campus.

    Who was Don Severino? Don Severino De Las Alas was a prominent Indang native who was elected Secretary of Justice at the Tejeros Convention. He belonged to the Magdiwang faction of the Katipunan.

    From its humble beginnings in 1906 as the Indang Intermediate School, CvSU has 11 campuses (I think… I lost count after 10) spread all over the Province of Cavite, with more than 30,000 students, 1,200 faculty and staff from all campuses, and offering close to 100 curricular programs in the undergraduate and graduate levels.

    But CvSU’s crown jewel on the main campus, in my opinion, is the 5-hectare Agri Eco-Tourism Park which boasts of thousands of endemic plants and tree species. It also produces the premium Aguinaldo Blend, which is roasted and blended with Cavite Barako, Robusta, and arabica beans. It is also a Farmer’s Training Center and Technology Demonstration Farm of the Agricultural Training Institute of the Department of Agriculture.

    4. Indang has one of the oldest Catholic churches in the Province of Cavite. Based on Church History, Indang was originally a chapel of Silang under the Jesuits. The church was established as a mission station of Father Angelo Armano in 1611 and became a separate parish only in 1625 under the advocacy of Pope St. Gregory the Great.

    A huge part of the stone church was built during the term of Father Luis Morales from 1672 to 1676 and was finished in 1710. The church was burned during the Philippine Revolution against the Spaniards.

    Curiously, despite being dedicated under the chaplaincy of St. Gregory the Great, the Parish effectively has 8 patron saints. The devotion to the Seven Archangels by Indangeños is strong. Since then, several miracles have been attributed to St. Gregory the Great and the 7 Archangels. Preparations are underway for the 400th anniversary of the parish in 2025.

    5. Indang is a top food producer for the Province of Cavite. Like some of its neighbors, it is a first-class municipality. But, its main driver of municipal revenues comes from agro-business commercial farms which raise large volumes of livestock and poultry. As per the record of the municipal agricultural office, there are existing hog farms, broiler farms, layer and breeder farms – categorized as backyard, medium-scale to large-scale commercial operations.

    More than 7,000 hectares of land in Indang are devoted to agriculture. Most farmers are engaged in multi-cropping farming systems. Most lands are planted with vegetables, root crops, corn, coconut, banana, coffee, pineapple, and other high-value commercial crops like dragon fruit, mangoes, cocoa, etc. As such, Indang has claimed the title of the Agri-Tourism Center of Cavite.

    6. Indang is the Spring Water Capital of the Philippines. More than a dozen springwater resorts are thriving in the municipality. They become areas of fun activities during the summertime, as the cold waters provide respite to the hot and humid weather in Metropolitan Manila.

    There are various resorts in Indang that people from within and outside the Province of Cavite visit during April, May, and June. Sad, some of these resorts have swimming pools right in the middle of a river, which makes these structures and their operation not compliant with the environmental laws of the country.

    Numerous real estate inquiries in this part of upland Cavite are farm lots for weekend farmers Who want a second home away from the hassles of urban life or semi-retired to retired individuals looking for a shift in their lifestyle. But in my previous article, I argued that Metro Tagaytay is more than just a haven for retirees. Young professionals in the Gig Economy are perfect to invest for their future homes and raise a family in this 3rd Growth Area of Cavite.

    Other real estate-related inquiries are possible sites for posh and not-so-posh event places and/or resort businesses near the various rivers and tributaries crisscrossing the Municipality of Indang. In addition, real estate developers find Indang as an ideal environment to set up farm lot subdivision projects.

    And, this is the only type of project that is allowed for now considering the 10-year moratorium on converting agricultural land for residential purposes. The moratorium was imposed last 2018. So, we are halfway through. After another 5 years, various types of residential development projects may be allowed once again in Indang.

    To conclude, there are vast opportunities for real estate investment in our quaint community. But, make no mistake this is a rural community. We are far enough from Mega Manila to enjoy fresh air and low prices of agricultural produce.

    Yet, with the presence of nearby shopping malls and other so-called “urban amenities,” we really like where we live and we can say that we have found our paradise in this part of Cavite. In the words of Agritorney, “OWN A FARM. MAKE IT YOUR PARADISE.“

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    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.

  • Things To Consider Before Purchasing a Parcel of Land Covered by an Emancipation Patent

    Land has spawned countless disputes because man is inexorably bound to it from cradle to grave for domicile, life sustenance, and other fundamental needs.

    Mr. Justice Presbiterio Velasco, in Del Castillo v. Orciga, G.R. No. 153850, August 31, 2006.

    By Realttorney®

    Before we answer the question above, we need to know what is an Emancipation Patent, who are qualified to receive such a patent, and how is it issued to a qualified beneficiary by government.

    Presidential Decree No. 27 ordered the emancipation of all tenant farmers of private agricultural lands primarily devoted to rice and corn under a system of sharecrop or lease-tenancy, whether classified as landed estate or not as of October 21, 1972.

    Under the same Decree, “tenant farmer, whether in land classified as landed estate or not, shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated.”

    Furthermore, it stated that “[i]n all cases, the landowner may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it.”

    According to Del Castillo v. Orciga, G.R. No. 153850, August 31, 2006, “a Certificate of Land Transfer (CLT) is a document issued to a tenant-farmer, which proves inchoate ownership of an agricultural land primarily devoted to rice and corn production. It is issued in order for the tenant-farmer to acquire the land. This certificate prescribes the terms and conditions of ownership over said land and likewise describes the landholding its area and its location. A CLT is the provisional title of ownership over the landholding while the lot owner is awaiting full payment of the land’s value or for as long as the beneficiary is an ‘amortizing owner’”.

    Land transfer under Pres. Decree No. 27 is effected in two (2) stages: (1) issuance of a CLT to a farmer-beneficiary as soon as DAR transfers the landholding to the farmer-beneficiary in recognition that said person is a “deemed owner”; and (2) issuance of an Emancipation Patent as proof of full ownership of the landholding upon full payment of the annual amortizations or lease rentals by the farmer or beneficiary.

    On July 17, 1987, former President Corazon C. Aquino issued Executive Order No. 228 which provides that as of October 21, 1972, all qualified farmer-beneficiaries are now “deemed full owners” of the land they acquired by virtue of Pres. Decree No. 27, with the assumption that the farmer-beneficiary has fully paid the amortization prescribed by existing law.

    In Maylem vs. Ellano, G.R. No. 162721, July 13, 2009, the Supreme Court stated that “No principle in agrarian reform law is indeed more settled than that the issuance of an emancipation patent entitles the farmer-beneficiary to the vested right of absolute ownership of the landholding, and it constitutes conclusive authority for the issuance of an original or transfer certificate of title in his name. It presupposes that the grantee or beneficiary has, following the issuance of a Certificate of Land Transfer, already complied with all the preconditions required under Pres. Decree No. No. 27, and that the landowner has been fully compensated for his property.”

    “And upon the issuance of title, the grantee becomes the owner of the landholding and he thereby ceases to be a mere tenant or lessee. His right of ownership, once vested, becomes fixed and established and is no longer open to doubt or controversy.” Inescapably, the farmer-beneficiary becomes the owner of the subject property upon the issuance of the Emancipation Patent and, as such, enjoys the right to possess the same – a right that is an attribute of absolute ownership.

    Having understood how an Emancipation Patent is issued, we now go to the issue at hand. Can you legally buy a land that is covered by an emancipation patent?

    To answer, we seek guidance from DAR Opinion No. 70-97 dated July 1, 1997. It addressed the query on whether an awarded land covered by Emancipation Patent (EP) be the subject of a contract of sale.

    DAR Opinion No. 70-97 answered the query in this manner:

    “Please be informed that awarded lands covered by Emancipation Patents (EPs), undoubtedly, can be the subject of a contract of sale. As elucidated by the Supreme Court in the Case of Engracia Vinzons-Magana vs. Hon. Conrado Estrella, et al., 201 SCRA 536, the issuance of Emancipation Patent confers on the farmer-grantee a vested right of absolute ownership in the landholding — a right which has become fixed and established and is no longer open to doubt and controversy. Thus, Emancipation Patent is a proof of ownership which can be the subject of a contract of sale in the exercise of one’s right of ownership without violating the prohibitions embodied in Section 27 of R.A. No. 6657 (Comprehensive Agrarian Reform Law) relative to sale or disposition of awarded lands for a period of ten (10) years from their award because said provision of law solely applies to awarded lands under R.A. No. 6657 covered by Certificates of Land Ownership Award (CLOAs) and not to PD 27 lands covered by EPs.” [Underlining, italicizing, our for emphasis]

    “Moreover, DAR Administrative Order No. 08, Series of 1995 further supports the view relative to sale or disposition of awarded lands under P.D. No. 27. Specifically, transfer of awarded lands under P.D. No. 27, as amended by Executive Order No. 228 may be allowed, provided the following shall be observed:

    1. that the productivity of the land shall be maintained;
    2. that the buyer will not exceed the landowner ceiling provided by law; and
    3. that the ownership ceiling of five (5) hectares shall be imposed.”

    Therefore, it is unmistakable that a Filipino can purchase a parcel of land covered by an EP. However, there are several things that a prospective buyer will have to consider.

    First, an EP is a land title covering a rice land or land devoted to planting corn. Therefore, it is more likely that the parcel of land is highly arable and irrigated, or found near an irrigation facility of the National Irrigation Administration (NIA). Hence, when a prospective purchaser is considering buying such a parcel of land, it is a must that “productivity of the land shall be maintained by the new owner.”

    Second, the prospective buyer must not exceed the landowner ceiling provided by law. What is the ceiling? Before Commonwealth Act No. 141 [the Public Land Act] was amended, the landowner celling of agricultural lands was 24 hectares. Then this was reduced by Rep. Act No. 6940 to 12 hectares. This limit is for the application of an agricultural free patent covering lands of the public domain, which are alienable and disposable.

    Third, the prospective buyer must also respect the ownership ceiling of 5 hectares imposed by Rep. Act No. 6657. Prior to this, under Pres. Decree No. 27, the ceiling on agricultural land ownership was 7 hectares for agrarian reform beneficiaries.

    What is the difference between the ceiling imposed by the Public Land Act vis-à-vis the Comprehensive Agrarian Reform Law (CARL)?

    The CARL covers all public and private agricultural lands which include other lands of the public domain devoted to or suitable for agriculture. Emphasis should be given to the phrase “devoted to or suitable for agriculture” in describing the type of lands, whether private or public lands in order that it may fall under the operation of the CARP.

    Such phrase is used to describe the public lands that fall within the coverage of CARP as opposed to the public lands that are the subject of the Public Land Act, as amended, which is the law to be followed in the issuance of Homestead and Free Patents with respect to agricultural land of the public domain.

    The Public Land Act governs only such lands of the public domain as are not timber or mineral lands. The term “public lands“, as used in the Public Land Act refers only to what was used to be known as public agricultural lands or what are otherwise known as alienable or disposable lands of the public domain.

    Having said all these, in my opinion, the guiding principle here is that since lands that are covered by EPs fall under the coverage of the agrarian reform law, then the ceiling for the landholding will be the 5-hectare limit. But, this limit should not be counted as part of the ownership ceiling if the prospective buyer will be applying for an agricultural free patent for up to 12 hectares.

    Fourth, the prospective buyer should take into account that if he or she will purchase a land covered by an EP then there is a possibility that the said land will remain as an agricultural land. Why? Because the land covered by the EP is irrigated or near an irrigation facility. If this is the case, then the same lot can never be converted into another classification, except agriculture.

    Under the current rules on land conversion, it expressly provides that the following shall not be subject to and are non-negotiable for conversion: (1) all irrigated lands where water is available to support rice and other crop production, and all irrigated lands where water is not available for rice and other crop production but are within areas programmed for irrigation facility rehabilitation by the Department of Agriculture and NIA; and (2) all irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion.

    As a final word, the best buyer of an agricultural land covered by an Emancipation Patent is one who has the heart and fortitude of a farmer. Someone who has the passion for farming and the skill of a modern-day digital marketing professional. If the purchase is intended to convert the land into a farm tourism estate then such plan may not materialize due to the strict rules on land conversion.

    ——-

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs on Real Estate. He is a Chartered Trust and Estate Planning (CTEP®) professional who is committed to educating Filipinos about the value and importance of having an estate plan in their lives.