Tenant Rights When Land Is Sold: Agricultural Leasehold Rights in the Philippines

Short takeaways (for farmers, buyers, and landowners):

Selling an agricultural land does not end a valid leasehold/tenancy. The buyer steps into the shoes of the former landowner and must respect the lease.
The agricultural lessee (tenant) has statutory rights of pre-emption and redemption: first to buy if the land is about to be sold; or to redeem it if it was sold without giving the tenant the required chance to buy.
Notice is crucial. The 180-day period to exercise redemption generally runs from written notice to the tenant by the buyer.
Conversion to non-agricultural use, subdivision, or titling does not by itself extinguish a leasehold. Only the law (and the proper agrarian forum) can.
Dispossession is allowed only for specific legal causes and with due process; sale of the land is not one of those causes.

This article explains the legal framework, the mechanics of pre-emption/redemption, procedures, and common pitfalls—written in the Philippine context and focused on what happens to tenants when land is sold.

1) Legal framework and key concepts

Core statutes. Philippine agricultural leasehold law is anchored in:

R.A. 3844 (Agricultural Land Reform Code) — abolished share tenancy and established agricultural leasehold; codified security of tenure, rent rules, pre-emption/redemption.
R.A. 6389 (Code of Agrarian Reforms amendments) — strengthened leasehold protections and the agrarian system architecture.
R.A. 6657 (Comprehensive Agrarian Reform Law, “CARL”), as amended by R.A. 9700 (CARPER) — governs coverage, land acquisition, conversion, beneficiaries, and institutional jurisdiction under the Department of Agrarian Reform (DAR).
Related issuances: executive decrees and DAR administrative rules that operationalize leasehold, rents, conversion, and adjudication.

Who is an agricultural lessee (tenant). Jurisprudence consistently applies six elements to establish a leasehold/tenancy relation:

Parties are landowner/administrator and a tenant; 2) The subject is agricultural land; 3) There is consent (express or implied); 4) Purpose is agricultural production; 5) Personal cultivation by the tenant (with limited family/auxiliary help); and 6) Sharing of harvest or payment of a fixed rent. A written contract helps, but is not required; facts on the ground control.

Security of tenure. Once a leasehold exists, the tenant cannot be ejected except for legal causes (e.g., substantial and willful nonpayment of lawful rent, abandonment, unauthorized sub-leasing, conversion with proper approval, etc.) after due process in the proper agrarian forum. Sale of the land is not a ground to terminate the lease.

Rent ceiling & payment. Lease rentals are controlled by law and DAR rules; as a guidepost, the ceiling has long been expressed as not more than 25% of the average normal harvest (net of specified deductions). Local DAR determinations and specific crop/area rules may further refine amounts and modes (cash or produce at prevailing prices).

2) Sale or transfer of the land: what automatically happens

Leasehold continues. The sale (or other alienation) does not extinguish the leasehold. The purchaser or transferee is a successor-in-interest and assumes the obligations of the former landowner/lessor toward the tenant—same rent rules, same rights, same duties.
No self-help eviction. The buyer cannot legally “clear” the land of tenants by mere demand, not even with a new title. Any ejection, lock-out, or interference with cultivation without a DAR adjudicator’s order is unlawful.
Standing crops and improvements. The tenant retains the right to harvest standing crops and to be compensated for necessary/useful improvements as the law provides, if a lawful dispossession occurs. A simple change of ownership does not trigger removal or forfeiture of these rights.
Succession and death. If the tenant dies, the leasehold transfers to a qualified heir (often the surviving spouse or a descendant) who actually continues to cultivate. A buyer cannot rely on the death of the tenant to claim automatic termination.

3) The tenant’s pre-emption and redemption rights

These are the centerpiece protections when land changes hands.

A) Pre-emption (right of first refusal)

When it applies. If the landowner intends to sell the leased land (or the portion constituting the tenant’s landholding), the tenant has a priority right to buy before any third party.
Notice & price. The landowner should give the tenant a written notice stating the intention to sell and the proposed price/terms. The tenant may buy at a reasonable price (law contemplates fairness, not speculation). If the parties disagree, the proper agrarian adjudicator can determine the reasonable price on evidence (market values, production data, improvements, zonal values, comparable sales, etc.).
Scope. If only a part of a larger estate is leased and being sold, the tenant’s pre-emption covers the landholding actually cultivated (not necessarily the entire mother title), unless the parties agree otherwise.

B) Redemption (after a sale to a third party)

When it applies. If the land (or the relevant landholding) is sold to someone else without giving the tenant a meaningful chance to pre-empt, the tenant may redeem—i.e., buy it back from the buyer.
Period. The tenant generally has 180 days from written notice of the sale by the buyer (or other legally sufficient written notice) to exercise redemption. Without proper written notice, the 180-day period does not run.
Price & terms. Redemption is at the same price and essential terms given to the buyer (or at a reasonable price if there is proof of sham/overstated consideration), usually with reimbursement of necessary taxes/fees paid.
How to exercise. The tenant must: (i) make a timely, unequivocal offer to redeem; (ii) tender or consign the price/terms as required (consignation protects the tenant if the buyer refuses); and (iii) file the appropriate case with the DAR Adjudication Board (DARAB) through the Provincial Agrarian Reform Adjudicator (PARAD) to confirm/enforce redemption if the buyer refuses to comply.

Practical tip: Keep copies of all notices, receipts, tender letters, and deposit slips. If a buyer only “tells” you about the sale but never serves written notice, send your own dated letter asserting your redemption right and ask for the deed’s details; this helps fix the record that the 180-day clock has not lapsed.

4) What counts as “notice” (and what doesn’t)

Written notice to the tenant is the safest legal trigger. A registry annotation or the mere recording of the deed is not, by itself, reliable proof that the tenant received actual notice.
For pre-emption, the notice should say the land is about to be sold and state price/terms.
For redemption, the buyer should personally serve written notice (or otherwise ensure the tenant actually receives it) describing the sale, price, area, and date.

5) Special transfer scenarios

Partial sale / subdivision. The tenant’s rights follow the landholding actually cultivated. If a mother title is subdivided, tenants on distinct portions retain their leaseholds on those portions against each transferee.
Foreclosure or tax sale. Leasehold relations generally survive foreclosure or tax sale. The purchaser at auction takes the property subject to existing agricultural leaseholds and their incidents, including redemption rights (adjusted as applicable).
Donation or exchange. Transfer without sale (e.g., donation, barter) does not end the leasehold; the transferee is still a successor-in-interest. Depending on the facts, the tenant may assert pre-emption/redemption analogs where the law treats the transfer as a sale in substance or where equity demands protection.
Sale to government / agrarian program. Where the government acquires land for agrarian purposes, tenants may transition into agrarian reform beneficiaries (ARBs) if qualified. The leasehold either merges into ownership (upon award) or continues until coverage is completed under CARP.
Sale to a developer / planned conversion. A buyer’s plan to convert land to non-agricultural use has no effect unless the DAR approves conversion after due process. Until then, leaseholds remain, and tenants cannot be ejected on the strength of a buyer’s future plans alone.

6) Can a buyer evict to “personally cultivate”?

Historically, the law allows an owner to recover possession to personally cultivate (strictly defined, in good faith, and subject to disturbance compensation and legal limits). Today, this ground is heavily circumscribed by CARP/CARPER, retention ceilings, and DAR rules. In practice:

The would-be cultivator must prove genuine personal cultivation, compliance with size/retention limits, and good-faith intent (not a pretext to remove tenants).
Disturbance compensation (statutory minimums) must be paid if dispossession is allowed.
DAR adjudicators—not regular courts—decide these questions in agrarian disputes.

7) Where and how to assert rights

Forum & jurisdiction. Agrarian disputes—including pre-emption/redemption, ejectment of agricultural lessees, rent controversies, and disturbance compensation—fall within DARAB jurisdiction (via the PARAD at the provincial level). Regular courts usually defer/dismiss when tenancy allegations are substantial, pending a “primary jurisdiction” or “tenurial relationship” determination by DAR.

Basic documentary checklist for tenants

Proof you are the tenant: sworn statements; barangay certifications; receipts for rent; miller/wholesaler delivery receipts; irrigation records; crop loan papers; testimonies; photos.
Proof of personal cultivation: farm diaries, neighbors’ attestations, machinery rentals in your name, input purchase receipts.
For pre-emption/redemption: copies of notices, the buyer’s deed if available, letters of tender/consignation, bank deposit slips or court/DAR consignation receipts.
Map/sketch or tax map identifying the exact portion you cultivate.

Basic documentary checklist for buyers/sellers

Due diligence on tenancy status: speak to the MARO/BARMM counterparts where applicable; obtain certifications, but do not rely solely on them if facts on the ground show cultivation.
Ensure proper written notice is served on tenants—before sale (pre-emption) and after sale (redemption).
Be prepared for DARAB proceedings; sales “free and clear of tenants” are risky without legally sufficient basis.

8) Homelots, houses, and improvements

Many leaseholds include a homelot (house and appurtenant area) inside or near the farm. Sale of the land does not terminate the tenant’s homelot rights.
If lawful dispossession is ordered (e.g., after approved conversion), the tenant may be entitled to compensation for improvements, relocation, or other ameliorative measures as provided by statute and DAR issuances.

9) Limits on contracts, waivers, and side deals

Waivers of leasehold or pre-emption/redemption rights are strictly construed against landowners and buyers. Many “quitclaims” signed outside the agrarian process are void or voidable—especially those obtained without full disclosure, proper consideration, or MARO/DAR supervision.
Side agreements to increase rent beyond legal ceilings, change crops to circumvent rules, or “convert” without DAR approval are unenforceable and can lead to administrative/criminal liability.

10) Interplay with CARP awards (CLOAs/EPs) and transfers by ARBs

If the lessor is an agrarian reform beneficiary (ARB), their ability to sell is restricted (e.g., prohibitions within a statutory period and transfer only to the government or qualified beneficiaries, with DAR oversight).
Any attempted sale by an ARB in violation of transfer restrictions is void or voidable and does not dislodge a lawful lessee cultivating a distinct landholding.
Where the leased land is covered by pending CARP/CARPER processes, tenants may qualify for award of ownership; until then, the leasehold persists.

11) Frequently-encountered pitfalls & how to avoid them

“We have a new title so you must vacate.” Wrong. Title transfers subject to leaseholds; no DAR order, no ejectment.
“We posted the sale at the registry; your 180 days is over.” Registry entries are not a substitute for actual written notice to the tenant.
“No written contract with the former owner, so no tenancy.” Tenancy can exist without a written contract. Facts and cultivation matter most.
“We plan to convert; leave now.” Only a DAR conversion order after due process can change land use in a way that lawfully dislodges tenants.
“You missed rent once; out you go.” Nonpayment must be substantial, willful, and unjustified, and even then, only DARAB can order dispossession—often after deposit/consignation inquiries.
“Waive your rights and take cash.” Unsanctioned waivers are risky and frequently invalid.

12) Step-by-step guides

If you’re the tenant and the land is about to be sold

Ask for a written notice stating the proposed price/terms.
If the price is fair and you can manage it, accept in writing and arrange payment consistent with the terms; if there’s disagreement on price, file a pre-emption case with the PARAD to fix a reasonable price.
Keep copies of all letters, receipts, and proof of capacity (loans, LBP engagement, etc.).

If you’re the tenant and the land was already sold

Upon learning of the sale, demand written particulars (buyer, price, date, area).
Prepare to redeem within 180 days from written notice from the buyer: issue a written offer, and tender/consign the price (or the reasonable price you can substantiate).
File a redemption case at the PARAD if the buyer refuses; maintain cultivation unless a DAR order says otherwise.

If you’re the buyer

Do tenancy due diligence (talk to the MARO and the farmer actually cultivating the land).
Serve proper notices; be ready to honor leaseholds or face redemption.
If you truly intend to personally cultivate or to convert, consult counsel and the MARO on what is legally possible, what compensation is mandatory, and which approvals you must secure before you act.

13) Remedies, timelines, and enforcement

Timelines matter. The 180-day redemption window is a frequent battleground; tenants should keep proof of when written notice was (or was not) received.
Interim relief. Tenants facing threats may seek status quo / injunctive relief from DARAB to prevent illegal ejectment or interference with cultivation pending the case.
Criminal/administrative angles. Harassment, forcible taking, or destruction of crops may give rise to criminal liability; consult counsel immediately in such cases.

14) Practical documents (plain-language templates)

A. Tenant’s assertion of pre-emption (before sale)

“I am the agricultural lessee personally cultivating the ___-square-meter portion planted to ___ on Lot ___ / TCT ___. I hereby exercise my statutory right of pre-emption to purchase the landholding at a reasonable price. Kindly provide the proposed price and terms in writing within ten (10) days. I reserve the right to seek DAR adjudication if we cannot agree.”

B. Tenant’s notice of redemption (after sale)

“On (date) I received written notice that you purchased the landholding I cultivate (Lot ___ / TCT ) for ₱. Within the 180-day period, I hereby redeem the land at the same price and terms. I am tendering ₱___ / consigning with (court/DAR) as proof of good faith. Kindly coordinate for deed execution; otherwise, I will seek enforcement before the PARAD.”

(Adapt details, attach IDs, proof of tenancy, and service receipts.)

15) Final notes and cautions

The facts of cultivation, the quality of notice, and dates often decide these cases.
Rents, compensation formulas, and procedures can be crop- and locality-specific under DAR rules.
Co-ownerships, estate settlements, and partial sales introduce technical nuances (e.g., how much of a mother title a tenant can redeem, price allocation, tax/fee reimbursements).
Because the stakes are high and timelines tight, it is wise to consult a lawyer or a DAR legal officer/MARO with your documents in hand.

This is general legal information for the Philippines. It is not legal advice for any specific case. If you have deadlines (e.g., a possible 180-day redemption window), treat them as urgent and get case-specific counsel right away.