Tenant Rights When an Agricultural Landowner Sells the Property in the Philippines

Philippine legal article for farmers, landowners, and practitioners

1) Big picture

If you are an agricultural tenant (the law now calls you an agricultural lessee) and the landowner sells the farm, your tenancy does not end just because of the sale. The buyer simply steps into the seller’s shoes and must respect your legal rights. In many cases, you also have a first right to buy the land (pre-emption) or a right to buy it back after it’s sold to someone else (redemption). Separately, the broader agrarian-reform framework (PD 27; RA 6657 as amended; the 2023 Agrarian Emancipation law) can override ordinary private sales and even transfer ownership to farmer-beneficiaries.

2) Governing laws & where your rights come from

RA 3844 (Agricultural Land Reform Code, as amended by RA 6389) – Abolished share tenancy and converted relationships to leasehold. – Gave lessees security of tenure, regulated rent, and rights of pre-emption and redemption if the land is sold.
PD 27 (1972) – For rice and corn lands: covered tenants became amortizing owners (emancipation patents).
RA 6657 (CARP, 1988), as amended (RA 9700, etc.) – Comprehensive Agrarian Reform Program coverage, retention rights, land acquisition & distribution, DAR processes.
RA 11953 (Agrarian Emancipation Act, 2023) – Condones unpaid amortizations and interest of qualified agrarian reform beneficiaries (ARBs); affects obligations but not the existence of leasehold/beneficiary status.
DAR & DOJ rules/jurisprudence – Detailed procedures on leasehold, conversion, disturbance compensation, and jurisdiction (DARAB, Special Agrarian Courts).

3) Who is a protected “tenant/lessee”?

Courts look for the classic elements of tenancy (refined over decades of cases):

The land is agricultural.
There is a landholder and a tenant.
Consent of the landholder (express or implied).
The purpose is agricultural production.
Personal cultivation (with limited family/occasional help; mechanization allowed if consistent with personal cultivation).
There is sharing or payment of rent (after RA 3844, this is a fixed lease rental determined by law/agreements).

If these are not present (e.g., the land is non-agricultural; the worker is a seasonal farmhand; cultivation isn’t personal), the person may not be a statutory lessee and the protections below may not apply.

4) What a sale does—and does not—do

Tenancy continues. A sale does not terminate a valid agricultural leasehold. The buyer is bound by your lease, rent rules, and security of tenure.
Where you pay rent. Once you receive written notice and proof of transfer, you pay rent to the new owner at the lawful rate.
Ejectment is not a consequence of sale. You cannot be ejected merely because the land changed hands.

5) Your “buying rights” when land is sold

A. Right of Pre-emption (first option to buy, before sale)

If the landowner intends to sell your landholding, you, as the agricultural lessee, have the right to buy it first at a reasonable price.
The owner should notify you in writing. You must exercise the right within the legal period after notice (practice: promptly reply in writing and, if needed, seek DAR assistance for price determination).
If you timely exercise this right and can tender payment/arrangements, the owner should sell to you.

B. Right of Redemption (buy-back, after sale to someone else)

If the land is sold without honoring pre-emption (or without proper notice), you can redeem it from the buyer within a statutory period counted from written notice and/or registration of the sale.
The redemption price generally follows the actual sale price plus allowable expenses; if disputed, seek DAR/DARAB assistance or file in the proper forum.

Tip: Pre-emption/redemption are time-sensitive. Act immediately upon learning of a planned or consummated sale. Keep copies of all notices, receipts, and registry entries.

6) Security of tenure: when can a lessee be lawfully ejected?

Only for just causes under RA 3844 (as amended) and with due process. Typical lawful grounds include:

Non-payment of the lawful rent without just cause;
Sub-leasing/abandonment;
Serious misuse of the land;
Failure to adopt proven farm practices;
Conversion to non-agricultural use with DAR authority and compliance with safeguards (see next section).

Even when ejectment is lawful, the lessee may be entitled to disturbance compensation and other benefits.

7) Interaction with agrarian reform (CARP/PD 27/CLOAs/EPs)

If the land is CARP-covered (or PD-27 rice/corn) and you or others are qualified beneficiaries, private sales cannot lawfully defeat agrarian coverage.
Emancipation Patents (EPs) or CLOAs issued to ARBs confer ownership (subject to restrictions on transfer and amortization/condonation rules).
Transfers of covered land typically require DAR clearance; violating coverage/transfer restrictions can render a sale void or ineffective against ARB rights.
Retention rights: Landowners may retain up to 5 hectares (subject to law and cut-off dates/conditions). Where retention is valid, genuine lessees on the retained area generally keep their leasehold; they are not ejected merely because the owner retained or sold within the retained area.

8) Conversion & personal cultivation claims

Conversion to non-agricultural use requires prior DAR conversion authority (and, where applicable, local zoning compliance and other permits). A buyer who plans to convert must still respect your tenancy until lawful conversion is approved and implemented with mandatory safeguards (e.g., disturbance compensation, transition).
Personal cultivation by the owner is not a magic ejectment card. It is regulated, requires good faith and compliance with statutory conditions, and does not automatically cancel leasehold.

9) Disturbance compensation (when displacement is lawful)

Where your displacement is lawful (e.g., authorized conversion), you may be entitled to disturbance compensation. The amount is set by statute/jurisprudence and often tied to a multiple of your average harvest over a set look-back period. When in doubt, document yields and costs and seek DAR facilitation so the amount is computed correctly.

10) Mortgages, foreclosures, and sales in execution

A mortgagee or buyer at foreclosure/execution takes the land subject to existing leasehold; your security of tenure and pre-emption/redemption regime still apply, subject to the same notice and period rules.
Keep copies of foreclosure notices and check registry entries; these often trigger pre-emption/redemption periods.

11) Rentals after the sale

Rent amount: Follows RA 3844’s leasehold rules (e.g., based on average normal harvest less allowable deductions, or as adjusted/approved by DAR).
To whom: After written notice and proof of title/assignment, pay rent to the new owner. If there’s a good-faith dispute on ownership, consign rent to avoid “non-payment” grounds.

12) Procedure & forums (what to file, where)

First stop: Your BARO/MARO (Municipal/Barangay Agrarian Reform Office) for mediation, leasehold setup/adjustment, and documentation.
Agrarian disputes (tenancy, disturbance compensation, pre-emption/redemption enforcement) generally fall under DARAB (quasi-judicial).
Issues on just compensation for expropriated land go to the Special Agrarian Courts (RTC branches designated as such).
Registry of Deeds matters (annotating lis pendens, checking sale registration) run in parallel.

13) Practical timelines & evidence to protect your rights

Act quickly and paper the trail:

Keep copies of all notices (sell-intent, deed, conversion applications).
Secure certified copies of any deeds and registry entries showing sale/transfer and dates—these affect pre-emption/redemption deadlines.
Prepare yield records (last 3–5 years) for rent computations and possible disturbance compensation.
Save receipts for rent payments.
Document actual cultivation (photos, witnesses, farm input receipts).

14) Common real-world scenarios

Owner sells without telling the tenant. – Tenancy continues; the buyer is bound. You may exercise redemption within the legal period.
Buyer claims future conversion; orders tenant out. – No lawful conversion yet = no ejectment. Buyer must first secure DAR authority and comply with safeguards (including compensation).
Foreclosure sale to a bank. – Bank is subrogated to owner; tenancy continues; pre-emption/redemption rules still matter.
CARP coverage already in process. – Private sale cannot derail coverage. Coordinate with DAR; ensure your beneficiary status is documented.
Retention area sold to a new owner. – Your leasehold survives; rent now payable to the buyer; ejectment only for lawful causes with due process.

15) Quick do-this-now checklist (tenant side)

✔️ Go to MARO/BARO and document your leasehold relationship.
✔️ Send the new owner a polite written notice asserting your leasehold and asking for sale details & where to pay rent.
✔️ If there’s a sale or impending sale, assert pre-emption (if before sale) or redemption (if after sale) in writing, and tender payment/arrangements.
✔️ If conversion is invoked, demand proof of DAR authority; if displacement looms, ask MARO to compute disturbance compensation.
✔️ If threatened with ejectment, do not abandon the land; seek DARAB or legal aid immediately.

16) Model letter (short, practical)

Subject: Assertion of Agricultural Leasehold Rights; Request for Sale Details

I am the agricultural lessee personally cultivating the parcel at [location/lot details]. I was informed of (or recently learned about) a sale/intent to sell.

Pursuant to RA 3844 (as amended) and agrarian-reform laws, the tenancy continues despite any sale, and I have rights of pre-emption/redemption. Please provide written notice of the sale/terms and where to tender rent. If the sale is not yet consummated, I hereby exercise pre-emption at a reasonable price. If already consummated without notice, I hereby exercise redemption at the statutory price and request a meeting at MARO within 10 days to settle terms.

Sincerely, [Name, Address, Contact] Copy furnished: MARO/BARO; DARAB (for reference)

17) Final cautions

Deadlines matter. The windows to exercise pre-emption/redemption are short and generally run from written notice and/or registration dates.
Local DAR practice can be decisive—from rent computation to compensation.
Case-specific facts (e.g., whether the relationship is truly leasehold; whether the land is CARP-covered; whether PD-27 applies) can change the outcome.

Bottom line

A sale of agricultural land does not erase valid tenancy. The buyer is bound by your leasehold; you enjoy security of tenure, plus pre-emption/redemption rights that can let you acquire the land under the law’s terms. Where agrarian reform applies, public law prevails over private sales. When in doubt, move fast, paper everything, and get help from DAR/MARO or competent counsel.