Demanding Revaluation in Delayed Government Expropriation Payment (Philippine Law)

Last updated for general doctrine up to mid-2024. This is practical information, not legal advice.

Executive takeaways

Baseline rule: “Just compensation” is the fair market value at the time of taking—not at the time of payment.
If the government pays late: Courts ordinarily add legal interest (and, where proper, consequential damages), rather than “revalue” the land to today’s prices.
When can you push beyond interest? True revaluation is exceptional. You’re far more likely to win by (i) nailing the correct date of taking, (ii) proving higher fair market value on that date, and (iii) securing full legal interest on any unpaid balance.
Key levers you control: Evidence of value (comparable sales, highest & best use), correct taking date, and a meticulous interest computation (including the 2013 rate shift).

Legal framework

Constitutional anchor

1987 Constitution, Art. III, §9: Private property shall not be taken for public use without just compensation.

Governing statutes & rules (high level)

Rule 67, Rules of Court (Expropriation): Court proceedings, appointment of commissioners, valuation, judgment.
Local Government Code (RA 7160), §19: For LGU takings, provisional deposit not less than 15% of the property’s fair market value (per latest tax declaration) to obtain possession; court still fixes just compensation.
Right-of-Way Acts (national projects):
- RA 8974 (2000) and now RA 10752 (2016) (the current regime for national government infrastructure). RA 10752 front-loads 100% of BIR zonal value for land plus replacement cost for improvements/structures for immediate possession; the court still determines final just compensation based on market value standards. Taxes/fees incident to transfer are generally shouldered by government under RA 10752.

“Just compensation”: what it covers

Market value of the property taken at the legally relevant date (see below), considering:
- Comparable sales; current BIR zonal value (as an indicator, not a cap); highest & best use; location; size/shape; restrictions/tenure; time-proximity of sales, etc.
Consequential damages (diminution to the remaining property in partial takings), less consequential benefits specially accruing to the remainder.
Improvements/structures at replacement cost (especially under RA 10752).
Legal interest when payment is delayed (details below).

The date of valuation (the battleground you can win)

General rule

As of the date of taking. If there was no prior taking (no entry/possession/use), then as of the date the complaint was filed.

What is a “taking”?

Classic indicators include: (1) entry by government, (2) more than momentary, (3) for public use, (4) owner is substantially ousted or deprived of use/enjoyment, (5) without the owner’s valid consent or beyond what was consented to. Tip: Establishing an earlier taking date (e.g., when the agency actually occupied, fenced, or built) lawfully moves the valuation to an earlier market peak if that’s favorable—or avoids a depressed later market if it’s not.

Why this matters for “revaluation”

Courts protect the time-of-taking rule. Owners who ask to “revalue” to today’s price because the State paid late usually lose on that request; the judicial remedy is interest, not a new valuation date. Your best play is to prove the earliest legally correct taking date and then maximize that day’s value.

Delayed payment: interest, not (usually) “revaluation”

Legal interest standards (practical guide)

If taking occurred before 1 July 2013: courts commonly award 12% p.a. up to 30 June 2013, then 6% p.a. from 1 July 2013 until full payment (reflecting the BSP rate change).
If taking occurred on/after 1 July 2013: 6% p.a. from taking until full payment.
Interest runs on the unpaid balance of just compensation (net of provisional deposits); post-judgment interest at 6% p.a. also applies from finality until satisfaction.

Why courts prefer interest to revaluation

Revaluation to “current prices” would detach compensation from the constitutional benchmark (value when the property was taken) and can result in windfalls or distortions. Interest is the orthodox tool to neutralize delay, inflation, and loss of use.

When can “revaluation” or valuation-date adjustment happen?

These are narrow scenarios—argue them only if facts fit:

No actual taking before suit If government never entered/occupied before filing, valuation may be as of complaint filing (not “today,” but later than an alleged earlier date).
Wrong date used below If the trial court used the wrong valuation date (e.g., it priced at judgment date despite an earlier taking), appellate courts correct the date (this is not “revaluation to current prices”—it’s setting the legally correct date).
Inverse condemnation (government took or damaged property without expropriation for years) The taking date is when the harmful government act effectively deprived use (e.g., flooding/overbuild). Owners sometimes feel this is “revaluation,” but what really happens is: (a) court pins an earlier taking date (b) sets value at that date (c) imposes interest for the long non-payment.
Supervening equities while case is pending Exceptionally, if the case has not reached finality and the record shows a gross mismatch owing solely to the State’s inordinate delay or changed project design affecting valuation inputs, courts have leeway to receive updated evidence. This is rare and fact-sensitive; you still argue it as getting the right value at the right (legally defensible) date, not as a pure “today’s price” revaluation.

Bottom line: A straight ask to “price my land at today’s market because you paid late” usually fails. Frame your demand around (i) the correct taking date, (ii) robust proof of value at that date, and (iii) full interest (with the 2013 rate break).

Building the owner’s case

Evidence checklist (for valuation at the relevant date)

Recent arm’s-length comparable sales (closest in time, same barangay/adjacent, similar highest & best use).
BIR zonal value (supportive, not dispositive).
Tax declarations (trend lines, not conclusive).
Independent appraisals (banks, IPA reports).
Zoning & land use (proof of highest & best use on the taking date).
Physical attributes (frontage, access, shape, size, topography; encumbrances).
Consequential damages proof** (e.g., impairment of access, irregular remnant shapes, flooding risk after road elevation).

Interest & payments documentation

Dates: entry/taking, complaint filing, writ of possession, commissioners’ report, judgment, finality, actual partial and full payments.
Amounts: provisional deposits (RA 10752/RA 7160), any consignations, dates credited.
Computation: spreadsheets splitting pre-2013 and post-2013 periods; interest on net unpaid balance; post-judgment interest at 6%.

Procedural roadmap (owner’s perspective)

Before or without expropriation (inverse condemnation)
- File an action for just compensation; plead and prove the taking date (when you were ousted/deprived).
- Pray for just compensation + legal interest from taking, consequential damages, and fees where warranted.
Expropriation case filed by government
- Immediate possession: Check if government complied (deposit under RA 10752 for national projects or §19, RA 7160 for LGUs). Challenge deficiencies.
- Valuation phase:
  - Move for appointment of commissioners; participate actively.
  - Lock in the correct taking date and present valuation evidence keyed to that date.
  - Put interest explicitly in your proposed judgment (with the 12%/6% split where applicable).
- Judgment & after:
  - If the decision forgets interest or uses the wrong date, move to modify/clarify (before finality).
  - After finality, enforce; interest runs until full payment. Oppose attempts to stop interest by partial consignations that do not liquidate the adjudged amount.
If payment is delayed post-judgment
- File motions for execution and submit updated interest schedules.
- For national agencies/LGUs, observe procurement/appropriation/COA protocols but insist that post-judgment interest continues to run.

Worked example (how courts usually compute)

Facts (hypothetical): Taking: 15 March 2010. Court fixes just compensation (principal): ₱10,000,000. Government deposited ₱2,000,000 on 15 March 2010 (credit this against principal). Balance unpaid until full payment on 15 March 2025.

Principal balance at taking: ₱10,000,000 − ₱2,000,000 = ₱8,000,000.
Interest on ₱8,000,000:
- 12% p.a. from 15 Mar 2010 to 30 Jun 2013.
- 6% p.a. from 1 Jul 2013 to 15 Mar 2025.
Post-judgment (if judgment became final later): 6% p.a. on the entire amount due (principal + accrued interest to finality) from finality to full payment.

Owners often overlook the rate switch on 1 July 2013 and the rule that interest applies to the unpaid balance only (net of valid deposits).

Special situations

Partial takings: Claim consequential damages to the remainder (loss of access, irregular remnant, drainage issues). Government may prove special benefits to offset.
Easements (e.g., transmission towers): Compensation is typically the diminution in value (not full fee value), plus interest for delay.
Temporary takings: Compensation approximates rental value/use value for the period, with interest.
Taxes & fees: Under RA 10752, government shoulders taxes and fees incidental to the transfer for national projects (confirm scope for your case and property classification).

Practical do’s & don’ts

Fight hard on the date of taking and market value evidence pegged to that date.
Always plead legal interest—include the 2013 rate change.
Track every payment/consignation date precisely.

Don’t

Bank on a court to “revalue to today’s price” just because payment was late.
Ignore consequential damages in partial takings.
Assume BIR zonal value caps your recovery (it doesn’t).

What to file (sample prayer language)

“Wherefore, premises considered, plaintiff prays that the Court:

Fix just compensation for the property as of [taking date] at ₱[amount]/sq m;

Award consequential damages of ₱[amount] and deduct only proven special benefits;

Impose legal interest on the unpaid balance at 12% p.a. from [taking date] to 30 June 2013, and 6% p.a. thereafter until full payment;

Order defendant to shoulder taxes and fees incident to transfer as required by law; and

Grant such other reliefs as are just and equitable.”

Frequently asked questions

Can I insist on today’s market price because the State paid years late? Usually no. The remedy is interest (and damages, where proper), not a reset to today’s prices.

What if the government occupied long before filing expropriation? Then that earlier occupation is likely the taking date—argue valuation at that earlier date plus interest.

Does a provisional deposit stop interest? Only to the extent it actually reduces the unpaid balance. Interest runs on what remains unpaid.

Can I claim moral/exemplary damages for delay? Typically no absent bad faith or egregious conduct; focus on interest and consequential damages.

Who pays capital gains/transfer taxes? For national projects under RA 10752, the government shoulders taxes/fees incident to transfer. Check classification (capital vs. ordinary asset) for tax treatment in other contexts.

Key Supreme Court guideposts to read (by topic)

Date of taking & definition of “taking”: Republic v. Vda. de Castellvi; Republic v. Lara.
Interest for delayed payment: Nacar v. Gallery Frames (rate shift 2013) applied across just-compensation cases; see also expro cases imposing 12%→6% transition.
Inverse condemnation & long delays: numerous National Power Corporation cases (e.g., reservoir/flooding) awarding just compensation plus interest pegged to taking.
Right-of-Way framework: RA 10752 (and earlier RA 8974)—front-loaded payments vs. final judicial valuation.

(Case names provided for orientation; check the full texts for precise holdings and dates in your specific fact pattern.)

Owner’s 1-page checklist

Identify and prove the exact taking date.
Gather best comps nearest the taking date; prove highest & best use.
Quantify consequential damages to the remainder.
Compute interest: pre-2013 at 12% p.a.; from 1 Jul 2013 at 6% p.a.; post-judgment 6% p.a.
Track deposits/consignations and apply them to reduce the interest base.
For national projects, invoke RA 10752 on taxes/fees.
Put the interest language and rate switch right in the proposed judgment.

If you want, tell me your facts (dates of entry, filing, deposits, judgment, payments), and I’ll compute the exact running interest and flag any openings to argue for a more favorable valuation date.