Overview

In Philippine agrarian law, an agricultural tenant (now called an agricultural lessee) enjoys security of tenure not just over the landholding cultivated but also over a home lot—a small parcel used for the tenant’s dwelling and family subsistence (e.g., vegetables, small livestock). When the landowner sells the agricultural land, the buyer generally steps into the shoes of the seller and must respect the tenant’s leasehold and home-lot rights. These rights exist by force of law, are typically non-waivable, and cannot be defeated by a deed of sale, a buyer’s “good faith,” or the absence of any annotation in the title.

This article collects the key rules, principles, and practical steps concerning home lots when the land is sold, drawing from the Agricultural Land Reform Code (Republic Act No. 3844, as amended), subsequent agrarian statutes (including the Comprehensive Agrarian Reform Law or CARL, R.A. 6657, as amended), and long-standing doctrine.

Core Legal Foundations

Agricultural leasehold replaces share tenancy. The law abolished share tenancy and replaced it with leasehold, protecting the lessee’s right to continue cultivating the land and to maintain a home lot.
Security of tenure. An agricultural lessee cannot be ejected from the landholding or home lot except for just causes provided by law and after due process before the agrarian authorities.
Buyer is bound. A sale or transfer of the land does not extinguish the leasehold or the lessee’s home-lot rights. The purchaser is subrogated to the lessor’s rights and obligations.
Home lot entitlement. The lessee is entitled to a home lot within or adjacent to the landholding for a dwelling and subsistence gardening, with only a nominal or regulated rental (if any). The home lot is appurtenant to the leasehold; it is not an independent commercial lease.

What Counts as a “Home Lot”?

Purpose: The site for the tenant’s house and small-scale family subsistence use (e.g., backyard garden, small animals).
Location: Ideally within the landholding; otherwise contiguous or nearby if the layout of the farm requires.
Size/Rent: Law and regulations cap home-lot area and rent at modest levels; the rent, if any, is generally nominal and separately regulated from farm lease rentals.
Utilities/Improvements: The lessee may introduce useful improvements (e.g., a well, fencing), subject to reasonable farm rules; unjust removal or impairment by the landholder requires due process and may trigger compensation.

Sale of the Land: Immediate Effects on the Home Lot

No automatic eviction. Sale does not terminate the lessee’s possession of the home lot. The lessee stays as is, under the same terms and conditions, with the buyer as the new lessor.
Title free of tenancy annotation ≠ free of tenancy. The buyer is legally bound even if the certificate of title lacks a tenancy annotation. Agrarian leasehold is a matter of public policy and attaches by law.
Due process standard. Any move to disturb, relocate, or eject the lessee from the home lot requires statutory cause and proper proceedings before the Department of Agrarian Reform (DAR) / DAR Adjudication Board (DARAB) or appropriate tribunals—not unilateral action.

The Lessee’s Statutory Buying Options When the Land Is Sold

Even while the home lot remains protected, the law also gives the lessee economic options over the landholding, which indirectly safeguard home-lot security:

Right of Pre-emption. If the landowner decides to sell, the lessee has a first option to buy at a reasonable price, exercisable within a statutory period after written notice of the intended sale.
Right of Redemption. If the land is sold without offering pre-emption, the lessee may redeem the land within a statutory period after registration or written notice of the sale (whichever the law specifies), by tendering the purchase price and complying with procedural steps.

Practical tip: These rights are time-sensitive and require formal written notice events to start the clock. Without proper notice, the lessee may argue that the period has not started.

When the Buyer Wants the Home Lot Vacated

A buyer cannot simply say “I need the space” and eject the lessee. The law requires:

A legally recognized cause. Examples include authorized land-use conversion (e.g., from agricultural to residential/industrial), or specific just causes under leasehold law (e.g., persistent non-payment of lawful rentals without valid reason, serious damage or misuse, abandonment). Mere sale is not a cause.
Proper conversion order (if invoking non-agricultural use). Before any eviction or relocation for non-agricultural purposes, the landholder must secure a DAR conversion order. Without it, the land is legally agricultural, and ejectment will not prosper.
Disturbance compensation and/or relocation. If the home lot or landholding is affected by a lawful conversion or another legally recognized cause, the lessee may be entitled to statutory disturbance compensation and, in home-lot cases, relocation to a suitable alternative site, including assistance in transferring the house and improvements, subject to the governing rules.
No self-help. Padlocking, demolition, or utility disconnections to force the lessee out are unlawful and may expose the landholder to criminal, civil, and administrative liability.

Succession and Transfer of Rights

Heirs may succeed. Leasehold (and the appurtenant home-lot right) typically transfers to the qualified heirs who continue cultivation and residence, subject to statutory qualifications (age, willingness, actual tillage).
Non-transferability to outsiders. The lessee cannot assign home-lot/leasehold rights to a non-qualified third party without the landholder’s consent and/or DAR approval, depending on the situation. Unauthorized transfers can be a ground for dispossession.

Rentals and Increases

Nominal/regulated home-lot rentals. Home-lot rent (if any) is separately regulated from agricultural lease rent. Unilateral increases are invalid; adjustments must follow statutory formulas or DAR-approved schedules.
Receipts and accounting. Lessees should keep receipts. Over-collections or illegal exactions (e.g., “key money,” forced advances) can be challenged and refunded.

Interaction with CARP/CARPER (R.A. 6657, as amended)

CARP coverage does not strip home-lot rights. Until land is lawfully converted or exempted, it remains agricultural; leasehold and home-lot protections apply.
Award and homelots. In many CARP distributions, beneficiaries are allocated a farm lot and may also receive/retain a homelot or access to residential sites as part of support services and estate planning.
Plantations and estate settings. In plantation setups, residential sites for farmworkers/lessees are typically recognized; relocations must follow social safeguards and due process.

Common Misconceptions (and the Correct Rules)

“The title is clean, so no tenant.” False. Tenancy exists by law and facts, not by annotations alone.
“Sale ends the lease.” False. Sale does not terminate leasehold or home-lot rights.
“No written contract, no rights.” False. Tenancy and home-lot rights can be proven by actual tillage and the statutory relationship, even without a written contract.
“We can relocate you immediately for development.” False. DAR conversion approval, disturbance compensation, and due process are prerequisites.
“You waived your rights in this deed.” Often false. Waivers of agrarian protections are generally void for being contrary to public policy.

Practical Playbook for Lessees When the Land Is Sold

Stay put (peacefully). Do not vacate the home lot based on oral demands or letters. Sale alone is not a ground for ejectment.
Gather documents. Keep copies of rent receipts, IDs showing residence on the home lot, photos of improvements, and any notices of sale or demands.
Record the timeline. Note when you received written notice of the intended sale (pre-emption) or notice/registration of a completed sale (redemption). These dates may start the clock.
Consider pre-emption/redemption. If economically viable, consult counsel on exercising these rights within the statutory period.
Check for conversion. Ask whether the buyer has a DAR conversion order. No valid order = still agricultural = your home-lot rights continue.
If threatened, go to DAR/DARAB. Seek assistance from the DAR municipal/provincial office. Illegal eviction threats can be addressed via agrarian complaints, injunctions, and, if needed, criminal/civil actions.
Document harassment. Keep records of threats, utility cut-offs, or attempts to demolish structures. These may support sanctions and damages.
Mind eligibility of heirs. If the cultivating lessee has passed away or is incapacitated, ensure a qualified heir continues cultivation and formally asserts succession.

Practical Playbook for Buyers/Landowners

Conduct agrarian due diligence. Verify actual tillage and residence patterns. Ask the seller for disclosures on any tenants/lessees and home lots.
Honor possession. Treat existing lessees and their home lots as binding legal relationships. Coordinate on rent payments, receipts, and farm rules.
Plan development lawfully. For non-agricultural use, secure DAR conversion first. Budget for disturbance compensation and humane relocation if the home lot is affected.
Avoid self-help. Do not demolish, padlock, or cut utilities. Use lawful processes to avoid liability and project delays.
Engage early. Transparent timelines, written notices, and fair offers often prevent disputes.

Frequently Asked Questions

Does a notarized sale automatically cancel a tenant’s home lot? No. The buyer is bound to respect the home lot. Eviction requires legal grounds and due process.

If the buyer wants to build housing where my home lot sits, can I be forced out? Only after a valid DAR conversion order and compliance with relocation/compensation and due process requirements.

What if I never received written notice of the sale? Your redemption clock may not have started. Consult counsel immediately to evaluate the timeliness of a redemption action.

Can home-lot rights pass to my children? Yes, typically to qualified heirs who continue cultivation and residence, following statutory succession rules.

The title has no “tenancy” annotation—does that defeat my claim? No. Annotation is not constitutive; tenancy and home-lot rights are protected by statute and policy.

Key Takeaways

Sale does not terminate an agricultural lessee’s home-lot rights.
The purchaser is subrogated to the seller’s obligations under leasehold.
Eviction or relocation requires statutory cause, usually DAR conversion approval, disturbance compensation, and due process.
The lessee holds time-sensitive rights of pre-emption/redemption in sales.
Documentation and prompt action are crucial for both lessees and buyers.

Final Note

Agrarian disputes are highly fact-sensitive. Specific outcomes can turn on dates of notice, actual tillage and residence, existence of conversion orders, and procedural compliance. For concrete situations—especially where eviction, demolition, or development is imminent—seek tailored advice from counsel or assistance from the DAR office in your locality.