IMPORTANT LEGAL TERMINOLOGIES IN APPRAISAL

ATTY. RHANDELL ALVIN B. MATULOY

Agrarian Reform

means redistribu@on of lands, regardless of crops or fruits produced, to farmers and regular farmworkers who are landless, irrespec@ve of tenurial arrangement, to include the totality of factors and support services designed to liM the economic status of the beneciaries and all other arrangements alterna@ve to the physical redistribu@on of lands, such as produc@on or prot-sharing, labor administra@on, and the distribu@on of shares of stocks, which will allow beneciaries to receive a just share of the fruits of the lands they work.

Award is the conferment of Cer@cate of Land Ownership Award (CLOA) @tle to qualied agrarian reform beneciaries.

Rural women refer to women who are engaged directly or indirectly in farming and/or shing as their source of livelihood, whether paid or unpaid, regular or seasonal, or in food prepara@on, managing the household, caring for the children, and other similar ac@vi@es. (as added by Sec7on 2, RA 9700)

Landless Beneciary is any farmer/@ller who owns less than three (3) hectares of agricultural land.

Sustainable Development

- The State shall promote development that is complete with the preserva@on of the ecosystem in areas where agriculture and sheries are carried. The State should exert care and judicious use of the country's natural resources in order to aYain long-term sustainability;

Agrarian Reform Community is a barangay at the minimum or a cluster of con@guous barangays where there is a cri@cal mass of farmers or farm workers and which features the main thrust of agrarian development; land tenure improvement and eec@ve delivery of support services.

Agricultural Lands refers to lands devoted to or suitable for the cul@va@on of the soil, plan@ng of crops, growing of trees, raising of livestock, poultry, sh or aquaculture produc@on, including the harves@ng of such farm products, and other farm ac@vi@es and prac@ces performed in conjunc@on with such farming opera@ons by persons whether natural or juridical and not classied by law as mineral land, forest land, residen@al land, commercial land, or industrial land.

Headworks refers to the composite parts of the irriga@on system that divert water from natural bodies of water such as rivers, streams, and lakes.

Rural Industrializa7on refers to the process by which the economy is transformed from one that is predominantly agricultural to one that is dominantly industrial and service-oriented Agriculture provides the impetus and push for industry and services through the market that it creates, the labor that it absorbs, and the income that it generates which is channeled to industry and services. As development con@nues with agriculture s@ll an important sector, industry and services begin to generate income and markets and concomitantly increase their share of total income .

Strategic Agriculture and Fisheries Development Zones (SAFDZ) refers to the areas within the NPAAAD iden@ed for produc@on, agro-processing and marke@ng ac@vi@es to help develop and modernize, with the support of government, the agriculture and sheries sectors in an environmentally and sound manner

Aordable cost refers to the most reasonable price of land and shelter based on the needs and nancial capability of Program beneciaries and appropriate nancing schemes;

Areas for priority development (APD) refer to those areas declared as such under exis@ng statutes and per@nent execu@ve issuances;

Blighted areas refer to the areas where the structures are dilapidated, obsolete and unsanitary, tending to depreciate the value of the land and prevent normal development and use of the area;

Idle Lands refers to non-agricultural lands in urban and urbanizable areas on which no improvements, as herein dened, have been made by the owner, as cer@ed by the city, municipal or provincial assessor

Improvements refers to all types of buildings and residen@al units, walls, fences, structures or construc@on of all kinds of a xed character or which are adhered to the soil but shall not include trees, plants and growing fruits, and other xtures that are mere superimposi@ons on the land, and the value of improvements shall not be less than My percent (50%) of the assessed value of the property;

Joint venture refers to the commitment or agreement by two (2) or more persons to carry out a specic or single business enterprise for their mutual benet, for which purpose they combine their funds, land resource, facili@es and services;

Land assembly or consolida7on refers to the acquisi@on of lots or varying ownership through purchase or expropria@on for the purpose of planned and ra@onal development and socialized housing programs without individual property boundary restric@ons;

Land banking refers to the acquisi@on of land at values based on exis@ng use in advance of actual need to promote planned development and socialized housing programs;

Land swapping refers to the process of land acquisi@on by exchanging land for another piece of land of equal value, or for shares of stock in a government or quasi-government corpora@on whose book value is of equal value to the land being exchanged, for the purpose of planned and ra@onal development and provision for socialized housing where land values are determined based on land classica@on, market value and assessed value taken from exis@ng tax declara@ons: Provided, That more valuable lands owned by private persons may be exchanged with less valuable lands to carry out the objec@ves of this Act;

Slum Improvement and ResePlement Program or SIR refers to the program of the Na@onal Housing Authority of upgrading and improving blighted squaYer areas outside of Metro Manila pursuant to exis@ng statutes and per@nent execu@ve issuances;

Small property owners refers to those whose only real property consists of residen@al lands not exceeding three hundred square meters (300 sq. m.) in highly urbanized ci@es and eight hundred square meters (800 sq. m. ) in other urban areas;

Socialized housing refers to housing programs and projects covering houses and lots or homelots only undertaken by the Government or the private sector for the underprivileged and homeless ci@zens which shall include sites and services development, long-term nancing, liberalized terms on interest payments, and such other benets in accordance with the provisions of this Act;

SquaRng syndicates refer to groups of persons engaged in the business of squaYer housing for prot or gain;

Urban areas refers to all ci@es regardless of their popula@on density and to municipali@es with a popula@on density of at least ve hundred (500) persons per square kilometer;

Urbanizable areas refers to sites and lands which, considering present characteris@cs and prevailing condi@ons, display marked and great poten@al of becoming urban areas within the period of ve (5) years; and

Zonal Improvement Program or ZIP refers to the program of the Na@onal Housing Authority of upgrading and improving blighted squaYer areas within the ci@es and municipali@es of Metro Manila pursuant to exis@ng statutes and per@nent execu@ve issuances.

HLURB - shall mean the Housing and Land Use Regulatory Board.

Community Facili7es - facili@es or structures intended to serve common needs and for the benet of the community such as schools, places of worship, hospitals, health centers, barangay centers and other similar facili@es/ameni@es per PD 1216.

Condominium Project means the en@re parcel of real property divided or to be divided in condominium, including all structures thereon.

Open Space - shall refer to an area reserved exclusively for parks, playgrounds, recrea@onal uses, schools, roads, places of worship, hospitals, health centers, barangay centers and other similar facili@es and ameni@es.

Party Wall - a wall used jointly by two par@es under easement agreement, erected upon a line separa@ng 2 parcels of land each of which is a separate real estate.

Actual Use refers to the purpose for which the property is principally or predominantly u@lized by the person in possession thereof;

Ad Valorem Tax is a levy on real property determined on the basis of a xed propor@on of the value of the property;

Abstract of 7tle a summary of the condi@on of @tle based on an examina@on of public records.

Accelera7on clause - A clause commonly used in installment notes that permits the payee to declare the en@re unpaid balance immediately due on default in payment. Such a clause contained in a note secured be deed of trust is subject to a statutory right of reinstatement. cf. ALIENATION, or due-on-sale, clause

Accession - Addi@on to property by natural increase or growth; also, by the installa@on of improvements

Acknowledgement - A declara@on by the party execu@ng an instrument that it is his act and deed. It is usually made before a notary public.

Ac7on in Rem - A court ac@on, which seeks a judgement against property, such as an ac@on to quiet @tle to real property

Act of God (force majeure) - Any irresis@ble disaster, the result of natural causes, such as earthquakes, violent storms, lightning, unprecedented oods.

Administrator - A person appointed by the probate court as the representa@ve of a decedents estate where the decedent leM no will

Adverse possession (prescrip7on) - A method of acquisi@on of property based on an adverse or hos@le and con@nued use of another persons property for a prescribed period of @me

Air rights - The right to exclusive use and control of an area above a specic parcel of land (as dened in the legal descrip@on) Air rights par@@on the rights to allow mul@level uses of the same parcel land. Typical uses include running subways under buildings and running streets on the surface with buildings above. In some areas air rights allow a buildings upper oors to be sold o.

Amor7za7on - Provision for the payment of a debt or obliga@on on an installment basis; also recovery over a period, of cost or value. Also, in zoning the gradual elimina@on of a nonconforming use

Annexa7on - The addi@on to property by adding or aYaching other property to it, such as xture. Also, the addi@on of unincorporated territory in a country to a city or town

An7chresis - By this contract, the creditor acquires the right to receive the fruits of an immovable of the debtor, with the obliga@on to apply them to the payment of interest, if any, and then to the principal of the debt.

Appurtenance - Anything incidental or belonging to land, which is considered part of the real property, such as an improvement on real property or an easement for ingress and egress (a way in and out)

Arms length - A transac@on in which the buyer and seller have no other rela@onship no advantage over each other, and no other factors that would cause an unusual eect on a sale price. An arms length transac@on reects normal condi@ons with buyers and sellers under no duress.

Assump7on of mortgage - Agreement by buyer where-in he assumes liability for payment of an exis@ng note secured by a mortgage or deed of trust against the property

Bearing wall - A wall or par@@on which supports a part of a building, usually a roof or oor above

Blanket mortgage or trust deed - A mortgage or trust deed which covers more than one lot or parcel of real property; it oMen covers an en@re subdivision. As individuals are sold, a par@al conveyance from the blanket mortgage is ordinarily obtained.

Bona de purchaser - One who buys property in good faith, for a fair value, and without no@ce of any adverse claim or right of third par@es.

Building line - A line set by law certain distance from the street and beyond which an owner cannot build on his lot. Also called set back line.

Bona de purchaser - One who buys property in good faith, for a fair value, and without no@ce of any adverse claim or right of third par@es.

Chain of 7tle - A chronological list of recorded instruments aec@ng the @tle land, beginning with the earliest in point of @me and concluding with the latest evidence of ownership.

Cloud of 7tle - A semblance of @tle or a claim appearing in some legal form but which is in fact invalid.

Codicil - A change of amendment to a will Color of 7tle - That which give the appearance of @tle, but is not @tle in fact.

Conversion - Change from one character or use to another, such as conver@ng an apartment house into a condominium; also in criminal law, it is the wrongful appropria@on of property belonging to another person.

Cotenancy (Co-ownership) - Ownership of property by two or more persons

Curtesy - The common law of interest of a husband in estate of deceased wife

Dedica7on - A dona@on of land by the owner for the use of the public

Default - Failure to perform a duty or to discharge an obliga@on

Defeasance clause - The clause in a mortgage that gives the mortgagor the right to redeem his property on the payment of his obliga@on to the mortgagee.

Delegacion - Takes place when the creditor accepts a third person to take the place of the debtor at the request of the debtor.

Descent - Succession to a property by an heir Diluvian - The gradual washing away and loss of soil along the banks of a river

Escalator clause - A clause in a contract providing for the upward or downward adjustment of certain items of cost and expense to cover specied con@ngencies

Escheat - The rever@ng of land to the State in cases where are no heirs, devisees, or legatees of a deceased owner

Escrow - The deposit by contac@ng par@es of a deed or other instruments and funds with a neutral third party for delivery to the respec@ve par@es on performance of a condi@ons

Ex parte - A judicial proceeding, order, injunc@on is said to be ex parte when it is taken or granted at the request and for the benet of one party only and may be without no@ce to any person

Expropria7on (Condemna7on in US) - The taking by the na@onal Government or any poli@cal subdivision, any private property for public use on payment of just compensa@on.

Fee simple absolute - An estate in real property which gives the owner the greatest power over the @tle. It establishes the @tle of real property in the owner without our limita@on or end

Fee simple defeasible - A fee simple estate that can be lost of defeated by the happening of some event subsequent to the ini@al granyt, such as breach of a condi@on contained in deed restric@ons

Ground lease - A lease covering the land only and not the improvements which are to be installed by the lessee.

Gross lease - Lease in which the landlord pays most of the opera@ng expenses, typical for oce buildings or other high-expense opera@ons. When it is dicult to segregate the expenses and pass them on to the tenant. The expense arrangement of a gross lease is usually; less ecient than a net lease in which tenants pay the expenses because tenants do not care about eciency if they are not paying the bills.

Ground rent - Earnings of improved property credited to the earnings of the land itself aMer allowance is made for earnings from the improvements.

Jurat - A cer@ed evidencing the fact that an adavit was properly made before an authorized ocer

Laches - Inexcusable delay in asser@ng a right; an equitable statute of limita@ons

Lateral support - The support which the soil of an adjoining owner gives to the neighbors land

Lesion - Any damage caused by the fact that the price is unjust or inadequate

Levy - A seizure of property by judicial process

LiPoral rights - The rights of adjacent owners to enjoy access to the shoreline of a body of water. The body of water is held as government property.

Muniments of 7tle - Deeds and other original documents showing a chain of @tle to a parcel of real property enabling him to prove @tle to his estate

Net lease - A lease in which the tenants pays all the expenses of opera@on including taxes insurance, u@li@es, and maintenance; commonly used for industrial proper@es

Open-end mortgage - A mortgage (or deed of trust) which, in addi@on to the original obliga@on, secures addi@onal advances made by the lender aMer the date of execu@on of the mortgage

Op7on - A right given for a considera@on of a purchase or lease a parcel of property within a specied @me and on specied terms

Pacto de retro - This is a contract of a sale with the s@pula@on that the vendor has the right to buy back or redeem property within a given period of @me.

Par77on ac7on - A court ac@on by which co-owners by which co-owners can sever their joint ownership, either by a division of the land into separate parcels if prac@cal, or by a sale of the property and a division of the proceeds in accordance with the respec@ve interest of the owners.

Pendente lite - Pending suit Per capita - By the head. In the distribu@on of an estate, persons are said to take per capita, when each one claims in his own right, based on an equal degree of kinship, an equal share of the estate; compared with the term per stripes, which means by right of representa@on (according to the roots)

Percentage lease - A lease, usually in the case of commercial property, where the rental is determined by the amount of business done by the lessee. Customarily, this is a percentage of gross receipts from the business with provision for a minimum rental.

Perjury - The inten@onal making of a false statement under oath, it is a felony

Quantum meruit - Recovery for reasonable value of services; it means as much as he deserves

Quiet 7tle - A court ac@on brought to establish @tle to property or to remove a cloud on the @tle.

Reforma7on - A court ac@on to correct a mistake in a deed or other document.

Release cause - A clause in a mortgage providing for release of specied por@ons of the property payment of a specic sum of money.

Relic7on - Gradual recession of water from the usual watermark, exposing more dry land for produc@ve use.

Rescind - To cancel a contract or other instrument

Rescission - A court ac@on brought to cancel or annul the eect execu@ng a contract or other document.

Reserva7on - A right or interest retained by a grantor in conveying property.

Right of survivorship- The right of the surviving tenant in common to inherit the other part of a property interest

Riparian - Pertaining to the bank of a river, of a lake, or a @de water.

Riparian rights - A common law principle sta@ng that the owner of land to a non-navigable body of water may own to the center of the body of water. Riparian rights also limit ownership of land next to a navigable body of water to the banks of the river or stream. In other words, if the body of water is not navigable the ownership is to the center of the water, but if it is navigable the water is considered a public right of way.

Specic performance - A court ac@on to compel performance of an agreement for the sale of land.

Status - The standing of a person before the law; that is whether an adult, a married person, and so on.

Statute frauds - State law which requires that certain contracts, such as a contract for the sale of land, be in wri@ng to be enforceable.

Statute of limita7ons - law which prescribes various @mes within which court ac@ons to enforce a right or for other relief must be led

Subpoena - A process issued by a court to cause a witness to appear at a hearing and give tes@mony

Subpoena duces tecum - A subpoena which directs a witness to bring specied documents and led with him

Subsurface rights - Mineral rights i.e. the right to extract oil, gas, or coal; may also the right to build roads, tunnels, or train track.

Summons - Court process which directs a defendant to make an appearance in an ac@on led against him.

Ultra vires - Beyond their powers. A corpora@on is said to act ultra vires when it exceeds the authority given it by its charter and by-laws.

Undivided interests - The unsegregated interest of co-owners in the en@re property owned in common

Unenforceable - A contract or a law that cannot be legally enforced

Unjust enrichment - A legal doctrine designed to prevent a person from taking advantage of another persons mistake, such as an overpayment of an amount due. It is based on a rule of fairness

Usufruct - It is the right to the temporary use and enjoyment of property of another, including the fruits of the property.

U7lity easement - An easement that gives u@lity companies, municipal agencies and others the right to cross a property to get to or repair a u@lity line or pipe.

Venue The place in which a lawsuit is brought or tried, or the place in which an acknowledgement is taken.