Buyer Rights to Crops on Sold Land under Philippine Law

1. Why the Question Matters

When agricultural, residential or industrial land in the Philippines is bought or sold, the parties often forget to specify who owns the standing (ungathered) crops. Because crops can represent a large part of a property’s immediate value, Philippine doctrine, statutes and case‑law devote detailed rules to the subject. Below is a consolidated reference aimed at practitioners, conveyancing officers and agribusiness managers.

2. Sources of Law

Source	Key Concepts
Civil Code of the Philippines (Republic Act No. 386, 1950)	Classification of “fruits,” timing of transfer, effects of delivery, accessions, accretion and indemnity.
Agricultural Tenancy Act (Rep. Act 1199, 1954) & Code of Agrarian Reforms (Rep. Act 3844, 1963)	Tenants’ / leaseholders’ possessory and harvest rights.
Comprehensive Agrarian Reform Law (CARL) (Rep. Act 6657, 1988)	Sale restrictions, Department of Agrarian Reform (DAR) clearance, security of tenure.
Property Registration Decree (Pres. Decree 1529, 1978)	Registration cannot defeat existing rights over unharvested crops.
Special jurisprudence	E.g., Heirs of Malate v. Gamboa (G.R. No. 125338, 30 June 1999); Spouses Paderanga v. CA (G.R. No. 115407, 28 Aug 1998); Salas v. CA (G.R. No. 66449, 16 Apr 1985).

3. Civil‑Code Framework

Classification of fruits
- Natural (fructus naturales) – spontaneous produce (e.g., bamboo shoots).
- Industrial (fructus industriales or emblements) – produced by human labor (e.g., palay, sugarcane).
- Civil – rents or royalties (not treated here).
Crops as immovables while attached Art. 415(2) deems standing crops “immovable property,” so, by default, they pass with the land.
Effect of perfection v. delivery
- Perfection (meeting of minds) gives the buyer only a personal right; ownership still in the seller.
- Under Art. 1164, the buyer (as “creditor” of the thing) is entitled to the fruits from the moment the obligation to deliver arises, i.e., from perfection, but cannot assert a real (enforceable against the world) right until delivery (Art. 712, 1496).
- Thus the seller holds the crops in trust from perfection until delivery.
Delivery modes Actual (physical surrender); constructive (e.g., execution of a public instrument, handing over the keys, or symbolic “longa manu” possession). A public deed registering the sale is usually treated as constructive delivery.
Risk of loss Under Art. 1504 (risk passes upon delivery), the seller bears loss of crops destroyed by fortuitous event before delivery, except where the parties stipulate otherwise.

4. Default Rules on Standing Crops

Scenario	Owner of Crops (absent stipulation)
Sale perfected, no delivery yet	Seller still owns land and crops, but must turn over the crops (or their value) to buyer upon delivery. If harvest occurs before delivery, seller must account.
Sale with constructive or actual delivery before harvest	Buyer owns land and standing crops. Seller cannot harvest unless expressly reserved.
Gathered crops before perfection	Remain personal property of seller and do not pass.
Gathered crops between perfection and delivery	Seller holds them for buyer; failure to deliver gives rise to damages.

Practical tip. To avoid dispute, insert a clause such as:

“Seller reserves the right to harvest the current sugarcane ratoon crop at its sole expense within 90 days from signing; thereafter all standing and subsequent crops accrue to Buyer.”

5. Reservation or Separate Sale of Crops

Article 1539 allows the parties to sell land and its fruits for a single price, or for separate prices.
Reservation must be express; courts will not imply it because crops are deemed immovable.
If the land is transferred but crops are reserved ambiguously, jurisprudence construes against the seller (article on contra proferentem).

6. Agrarian‑Law Overlay

Security of Tenure Sale inter vivos does not extinguish existing tenancy or leasehold. The buyer steps into the shoes of the landowner (RA 1199, §10; RA 3844, §9). Consequences:
- (a) The tenant keeps possession and the right to harvest crops already sown.
- (b) Crop-sharing or lease rental for the current agricultural year is owed to the new landowner.
DAR Clearance and Right of Redemption
- Any transfer of agricultural land > 5 ha, or any land covered by CARP, needs DAR clearance (DAR A.O. No. 1‑1989, A.O. No. 12‑2007).
- Qualified farmer‑beneficiaries and agricultural lessees have a right of pre‑emption/redemption within 180 days of notice (RA 3844, §12; RA 6657, §23). Failure to respect these rights may void the sale as to the crops and land.
Tenant’s Crop Shares Despite Transfer Under Heirs of Malate, the buyer cannot recover the coconuts harvested by the tenant shortly after sale because, under tenancy law, the share cropping contract remained in force. The buyer’s remedy is to collect the agreed landowner’s share, not the entire produce.

7. Special Situations & Doctrinal Highlights

Point	Explanation
Crops as “Industrial” Improvements	Where the seller planted industrial crops after signing but before delivery, courts regard them as part of the land’s accession; no separate compensation absent good‑faith improvements doctrine (Arts. 448–454).
Usufruct, Life Estate or Leaseback	A seller‑usufructuary keeps the right to the fruits during the usufruct. Parties often retain usufruct for a fixed term so the seller can finish cropping cycles.
Mortgagee in Possession	If the land is mortgaged then foreclosed, the buyer at auction gets crops attached at the time of the consolidation of ownership; crops gathered earlier belong to the mortgagor (see Salas v CA).
Taxation	Capital gains tax (6 %) applies to the realty component. The value of gathered crops is part of ordinary income of the person who actually owns and sells them. Standing crops form part of the zonal value of land if already mature at the time of BIR appraisal.
Risk Management	Parties to big agricultural deals commonly use: (a) escrow of purchase price portion equal to estimated crop value; (b) crop‑insurance endorsement; (c) hold‑over agreements allowing seller’s farm crew entry until harvest cutoff date.

8. Litigation Patterns and Remedies

Specific performance – Buyer may compel delivery of harvested crops or equivalent cash value (Civil Code, Arts. 1165, 1191).
Damages – For unauthorized harvest, measure is value of fruits at maturity less expenses (Art. 443).
Recovery of possession – If seller (or tenant) refuses to vacate after agreed harvest, file accion interdictal or accion reivindicatoria in the proper court or DAR adjudication board, depending on tenancy status.
Criminal liability – Illegal harvest after transfer can constitute qualified theft or estafa, but prosecution is rare; civil action is primary avenue.

9. Practical Drafting Checklist

Item	Why Important
Express reservation of right to current crop (species, area, timetable).	Avoids default rule that crops pass with land.
Access arrangements (gates, irrigation, labor, fuel).	Prevents trespass disputes.
Indemnity / escrow for crop damage or delay.	Covers typhoon losses or quality degradation.
Tenant‑related disclosures and DAR clearances.	Buyer’s recourse limited if tenancy exists.
Allocation of real‑property taxes and crop‑related municipal fees.	Local treasurers impose deadlines mid‑year.
Pro‑rated irrigation or cooperative dues.	NIA / irrigation associations levy per‑crop‑year charges.

10. Key Take‑Aways

Standing crops are presumed sold with the land.
Buyer is entitled to fruits from perfection but gains real ownership only upon delivery.
Tenancy and CARP restrictions override private stipulations.
Explicit contract language—even just one sentence—prevents 90 % of litigated crop disputes.

Disclaimer – This summary is for academic and informational purposes and does not constitute legal advice. For specific transactions, consult counsel and secure DAR clearances where applicable.