Bea Alonzo Farm Tour - Real Estate Agent Reacts

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From an aerial view, this 16-hectare farm looks breath taking. The first thing that comes to mind is amazingly flat terrain that is well planned, well maintained, measured, and calculated. I know that when they bought this property its just raw land. 

The 5000 mahogany trees planted on the sides not only acts as a secondary fence but also protects the farm from harsh winds and provides cool and fresh air. 
But the highlight of the farm are the 450 mango trees evenly planted at 15 meter distance from each other. 
Now you would notice that there are very minimal structures in the farm. 

This is because the maximum buildable area allowed for structures attendant to agricultural activities shall be 25% of the total saleable lot area.

So why did Ms Bea invest in a farm lot?

From a real estate perspective, the advantages of investing in a farm lot is huge.

1 You can make money from cash flow from the mangoes and calamansi that are harvested. Even the mahogany trees planted as perimeter can also be sold upon maturity. They also have cows and sheeps and pigs and ducks.
2. Land appreciates over time. And its not just time that helps appreciate the value of the property but also the development. Ms. Bea mentioned the work her mom put into it to make this raw land to what it is now.  

But how did Ms. Bea knew that the farm lot she bought is legit? 

First is check the land title. The land title contains the total land area of the land you are trying to purchase.  It is not enough that someone showed you the tile. You need to do your due diligence. Check with the Registrar of Deeds that the Transfer Certificate of Title (TCT) is clean and that it really corresponds to the property shown to you.  And make sure that the lot is not included in the non-negotiable for conversion or reclassification under AO 20 (1992). 

Second, if you have plans to subdivide the lot for residential use, make sure there is a certificate of reclassification from agricultural land to residential land from the LGU. You need this to make sure that you will be able to install utilities and apply for them from the providers of the city/municipality.

Third is if the farm lot you are buying is from a real estate developer, always look for the License to SELL to make sure you have a legit investment. The establishment and operation of Farm lot subdivision development is covered under Presidential decree (P.D.) No. 957 and its implementing rules and regulations and Board Resolution 750. 

Now I also asked how many hectares of farm lot can Bea really own as allowed by our Philippine law? 
According to THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES – ARTICLE XII section 3 mentions that Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof, by purchase, homestead, or grant. 
If this is the case, then most probably portions of the 16 hectares are co-owned with the family.

Lastly, what if the surrounding area of her farm becomes highly urbanized, let’s say an airport is to be built, can she convert portions of her farm lot into a subdivision project or a condominium? 

Before Ms Bea can do anything else, she has to ensure first that her farm land can be converted into some other use. Agricultural land in the Philippines is subject to land classification, reclassification and conversion laws also known as R.A. 6657 or the Comprehensive Agrarian Reform Law. 

Land use conversion is the process of changing the current physical use of a piece of agricultural land into some other use like commercial, residential, industrial or other agricultural use other than cultivation of the soil, planting of crops or growing of trees as approved by DAR (DAR, 2002).

RA 6557 chapter 65 states that after the lapse of five (5) years from its award, when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition: Provided, That the beneficiary shall have fully paid his obligation. 

#farmtour #realestate #investment


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