THE NEW FREE PATENT ACT

As a means to unlock the economic potential of untitled Philippine real estate, the legislature has recently passed Republic Act no. 10023 otherwise known as the Free Patent Act. The Free Patent Law aims to reduce and liberalize the requirements for titling land by reducing the number of years required before a land can be titled from 30 years to 10 years and by removing some of the restrictions found under Commonwealth Act no. 141 or the Public Land Act.

Republic Act no. 10023 applies to lands found within residential zones having a total area of two hundred (200) square meters or less in highly urbanized areas, five hundred (500) square meters or less in other cities, seven hundred fifty (750) square meters or less in first and second class municipalities and one thousand (1,000) square meters or less in all other municipalities. Any Filipino citizen who has continuously paid his or her Philippine real estate taxes for 10 years shall be entitled to free patent for such parcel of land in all municipalities and cities.

All applications for a Free Patent Title shall be supported by a map based on an actual survey conducted by a licensed geodetic engineer and approved by the Department of Environment and Natural Resources (DENR) and a technical description of the land applied for together with supporting affidavits of two (2) disinterested persons who are residing in the barangay of the city or municipality where the land is located. Said affidavits must attest to the truth of the facts contained in the application to the effect that the applicant thereof has, either by himself or through his predecessor-in-interest, actually resided on and continuously possessed and occupied, under a bona fide claim of acquisition of ownership, the land applied for at least ten (10) years. Furthermore, the application must be filed in favor of a Filipino citizen and must follow the boundary limits previously stated. Moreover, there must not exist a need for public service or use for all lands subject to said application.The procedure for titling laid down under Republic Act 10023 replaces the tedious and costly process of judicial titling mandated under previous laws. Applications may now be filed with the Department of Environment and Natural Resources without the need for court hearings.

Local government units also stand to benefit from the new Philippine law as it allows the issuance of special free patents in their favor. These free patents cover public land actually occupied and used for public schools, municipal halls, public plazas or parks and other government institutions for public use or purpose.