Atty. Ygona (left), Consultant Agosto (middle), and Atty. Christian for Transco (left)

In a recent hearing at the Cebu City Regional Trial Court, Valuation Expert Gus Agosto helped in shedding light on the distinct roles of expert witnesses and court commissioners, providing valuable insights into their functions within the expropriation proceeding.

During the proceedings, Expropriation Expert manifested to the court, emphasizing the critical differences between expert witnesses and court commissioners. Expert witnesses, under the Rules on Evidence, Gus Agosto explained, offering specialized knowledge, skills, and experience in specific fields relevant to the case at hand. Their testimony aids judges in understanding complex matters, contributing to informed decision-making. He referred to Rule 130, Section 49 of the Rules of Evidence, which states, “The opinion of a witness on a matter requiring special knowledge, skill, experience, or training which he is shown to possess, may be received in evidence.” This provision underscores the importance of expert testimony in matters where specialized expertise is necessary.

On the other hand, under Rule 32 of the Rules of Court, court commissioners are appointed by the court to play a pivotal role as officers of the court particularly in matters related to property valuation or just compensation. Mr. Agosto underscored the importance of competence and expertise among court commissioners, highlighting their role in evaluating factors to determine just compensation for properties subject to acquisition or eminent domain.

In cases requiring property valuation, the court typically appoints three competent individuals as commissioners. These commissioners are tasked with conducting impartial assessments to ascertain the fair value of the property being acquired, ensuring that property owners receive just compensation for their properties.

Additionally, Mr. Agosto touched upon the court’s jurisdiction to interpret whether simple or compound interest should apply in the computation of just compensation in expropriation proceedings dating back to 1995. He emphasized, ‘The interest rate matter is a question of law, which is best interpreted and decided by the court.’ While leaving the interpretation to the court, Consultant Agosto underscored the significance of this decision in ensuring fair and equitable compensation for affected parties.

Consultant Agosto’s clarification of the roles of expert witnesses and court commissioners serves to enhance understanding within the legal community and among courtroom participants. By providing clarity on these essential distinctions, Consultant Agosto contributes to the integrity and fairness of legal proceedings in Cebu City and underscores the importance of competent professionals in facilitating justice.

If you own a property, it is essential to be aware of your rights when the government takes your land for public use. While eminent domain, the power of the government to take private property, is a well-known concept, its counterpart, inverse condemnation, often remains in the shadows. In this article, we will explore what inverse condemnation is, why it is vital for property owners, and how it plays out in a real-world case.

What is Inverse Condemnation?

Inverse condemnation is a legal doctrine that allows property owners to seek just compensation from the government when their property has effectively been taken, even if the government hasn’t formally initiated an expropriation or condemnation proceeding. This concept is a crucial safeguard to ensure property owners are not deprived of their rights when government actions or projects impact their land.

The Case of the Heirs of Macabangkit Sangkay: A Real-Life Example

In a notable case involving the Heirs of Macabangkit Sangkay and the National Power Corporation (NPC), the Supreme Court addressed the issue of just compensation in an inverse condemnation scenario. In this case:

• The NPC embarked on a project that involved the construction of a tunnel through a piece of land belonging to the Heirs of Macabangkit.
• Importantly, NPC did not formally initiate an expropriation proceeding or seek the prior consent of the landowners.
• The Heirs of Macabangkit filed a complaint to seek compensation for effectively taking their property.

The Supreme Court ruled in favor of the Heirs of Macabangkit and affirmed the decision of the Regional Trial Court (RTC). The court held that the value used as the basis for compensation should be determined as of the time when the complaint was filed. In other words, the compensation would be calculated based on the property’s value at the time when the landowners initiated their legal action.

The Supreme Court justified this decision by emphasizing the principle of fairness. It noted that calculating compensation based on the market value at the time NPC entered the land or when the tunnel project was completed would be unjust. This is because it would compound the gross unfairness already caused to the landowners. NPC had entered the property without the intention of formally expropriating the land, and without obtaining the prior knowledge and consent of the Heirs of Macabangkit.

Why Inverse Condemnation Matters:

Inverse condemnation is crucial for several reasons:

1. Protection of Property Rights: It ensures that property owners’ rights are upheld, even when the government takes their property without following formal expropriation procedures.
2. Just Compensation: Property owners have the right to seek just compensation when their land is effectively taken, which is often enshrined in the constitution of many countries, including the Philippines.
3. Legal Remedy: Inverse condemnation provides a legal remedy for property owners to address government actions that infringe upon their property rights.

Inverse condemnation serves as a vital legal concept that protects property owners’ rights when their land is effectively taken by the government. The case of the Heirs of Macabangkit and the NPC illustrates the importance of just compensation and the principle of fairness in inverse condemnation cases. Property owners should be aware of their rights and seek legal counsel when facing government takings to ensure their interests are protected and justice is served.

In the fiercely competitive field of real estate investment, informed decisions are the linchpin of success, especially for large corporations and institutional investors. That’s precisely where AA+ Appraisal & Consultancy takes the spotlight. With an impressive track record of appraising properties worth a staggering 10 billion in just two weeks, AA+ Appraisal & Consultancy has cemented its status as the go-to firm for comprehensive real estate services.

At the heart of AA+’s success lies its unwavering commitment to offering a multi-dimensional perspective that empowers businesses and investors to thrive in the dynamic real estate landscape. Gus Agosto, President of AA+, underscores this commitment, stating, “Our strength lies in providing quality analysis and guidance, with a personalized touch for each client.”

One of AA+’s standout features is its unique ability to blend a national scale of operation with an intimate understanding of local markets. With strategic offices in Manila and Cebu and a network of local experts, AA+ delivers insights and solutions that combine global knowledge with local expertise.

Furthermore, AA+ stands out for its comprehensive suite of services, spanning research, appraisal, data centers, and more, all conveniently offered under one roof. This holistic approach streamlines decision-making for clients and ensures every facet of their real estate needs is expertly addressed. In the words of Gus Agosto, “We merge academic knowledge with practical expertise to solve our clients’ challenges.”

For investors venturing into the Philippine real estate arena, AA+ emerges as a trusted partner, adept at navigating the complexities of bureaucracy and documentation scattered across the country. With a portfolio that includes major national clients, such as telecom giants, hydroelectric plants, waste management facilities, and real estate developers, AA+ has proven its ability to provide invaluable support.

But AA+ doesn’t just stop at valuations and consulting; it empowers clients with the intelligence required to make informed decisions. Whether through market and feasibility studies or highest and best-use analysis, AA+ equips clients with the tools they need to fuel investment growth. The caliber of AA+’s services is underscored by the fact that large corporations and institutional investors make up a significant 85% of its portfolio.

Among these national clients are notable telecom companies, hotel giants, hydroelectric plants, state-of-the-art machinery providers, waste management facilities, and forward-thinking real estate developers. They’ve all entrusted AA+ Appraisal & Consultancy to guide them in making investment decisions that matter. Additionally, AA+ extends its consulting prowess to prominent property owners, offering the highest and best-use analysis that steers them toward the most strategic development of their prime properties.

Moreover, the company orchestrates market and feasibility studies for a groundbreaking agro-industrial project in Cebu South, expertly guiding owners in their investment journey. Gus Agosto reaffirms AA+’s dedication, stating, “From intricate challenges to fundamental requests, we’ve supported our clients every step of the way. This commitment extends to all our clients, positioning us as a one-stop service and strategic partner that provides the intelligence to drive investment growth.”

In a real estate world characterized by cutthroat competition, AA+ Appraisal & Consultancy distinguishes itself as the one-stop shop and strategic ally for major corporations. With a client portfolio dominated by industry leaders, AA+ solidifies its reputation as a reliable deliverer of results. As Mr. Agosto succinctly puts it, “We don’t make promises; we deliver results.”

AA+ Appraisal & Consultancy remains steadfast in its mission to guide visionaries, helping them sow the seeds of success, one meticulously analyzed project at a time. This is the AA+ way.

Recently, numerous clients requested for appraisal of the damage caused by Typhoon Yolanda and a government infrastructure project. In the wake of natural disasters or government infrastructure projects, property owners often face the daunting task of determining the extent of damages and securing fair compensation. A specialized appraisal method known as the Diminution in Value Appraisal or real estate damage valuation proves to be an invaluable tool in accurately assessing property losses caused by events like Typhoon Yolanda and government-driven developments. Let’s delve into the significance of the DIV Appraisal method and how it aids property owners in their quest for just compensation.

Understanding the DIV Appraisal Method

Unlike traditional market value assessments, the DIV Appraisal method hones in on the specific damages or impairments suffered by a property due to a particular event or project. Whether it’s the devastating impact of Typhoon Yolanda or the restriction of access caused by government infrastructure projects, the DIV Appraisal offers a comprehensive evaluation of the economic losses faced by property owners.

The aftermath of Typhoon Yolanda left numerous properties in ruins, necessitating a precise assessment to determine the extent of damages. In such scenarios, the DIV Appraisal method proves to be invaluable. This specialized appraisal approach focuses on assessing the specific damages or impairments suffered by a property due to a particular event or project.

The DIV Appraisal process begins by evaluating the property’s value before the event, assuming it was in perfect condition with no damages or impairments (Unimpaired Market Value). The appraiser then takes into account the economic impact of the event, considering factors such as structural damage, loss of utility, and reduced marketability (Impaired Market Value).

By subtracting the Unimpaired Market Value from the Impaired Market Value, the appraiser arrives at the Damage Value. This value represents the specific economic loss suffered by the property due to Typhoon Yolanda, providing property owners with a clear understanding of the extent of damages.

To obtain a credible DIV Appraisal, property owners must effectively communicate the loss in both legal and appraisal terms. Providing a current survey detailing the property’s condition before and after the event or infrastructure development is vital. The survey should highlight the extent of damages and the specific rights lost, assisting the appraiser in accurately assessing the diminution in value.

The DIV Appraisal method emerges as a powerful tool for property owners in the Philippines to assess damages and determine the true value of their properties after natural disasters or government infrastructure projects. Engaging competent appraisers well-versed in local real estate laws and regulations is essential for obtaining a credible DIV Appraisal. Armed with a comprehensive understanding of their property’s true value, property owners can seek just compensation for their losses and move forward with confidence.

Consultant Gus Agosto recently testified as an expert witness during a court hearing held by the CBAA (Central Board of Assessment Appeals) last May 4, 2023. The hearing pertained to a property subject to litigation and required an assessment of its value. Agosto played a crucial role in shedding light on the property’s worth, providing a comprehensive description, and highlighting its current condition.

The CBAA is a quasi-judicial agency under the Department of Finance (DOF). Its primary responsibility is to make decisions on real property tax assessment cases that have been appealed from the decisions of the LBAAs (Local Board of Assessment Appeals) of cities and provinces. This mandate is defined by Republic Act (RA) No. 7160, also known as the Local Government Code.

A lawyer expressed her admiration for Gus Agosto’s performance during the cross-examination, stating, “Thank you for dedicating your time and putting in the effort to prepare for the cross-examination. Your performance today was commendable.”

Augusto offers valuable litigation appraisal support for civil litigation and criminal cases in both local and international courts. With his vast expertise in appraisal and litigation as an expert witness, he has consistently achieved remarkable outcomes throughout his extensive professional career. He specializes in providing legal support in various cases, including marital settlement, expropriation, estate settlement, eviction, lease disputes, and other related matters. His experience and knowledge make him a trusted resource in the legal field.

Feasibility studies are an essential aspect of real estate development, as they help to determine the viability and profitability of a potential project before investing significant time and money. Feasibility studies are conducted to evaluate the financial, technical, legal, environmental, and market factors of a project to determine if it is practical and profitable to proceed.

The study included a market analysis to determine the demand for the different components of the project, as well as a financial analysis to determine the costs and potential returns of the project.

Based on the results of the feasibility study, the developers were able to make informed decisions about the design and construction of the project, including the size, layout, and amenities of the various components. The study also helped the developers to identify potential risks and challenges associated with the project, and to take measures to minimize or mitigate them.

AA+ Appraisal & Consultancy, a real estate consulting firm, has conducted feasibility studies for various real estate development projects in the Philippines. Two notable projects are a hotel in Ermita, Manila, and an integrated marina resort in Lapulapu City.

The first project involved evaluating potential hotel development sites and making recommendations for facilities and brand affiliations. The proposed hotel will be a component of a mixed-use development plan and will cater to the needs of local travelers and businessmen. The market study showed that the most viable project with the highest return on investment is the renovation of the existing hotel, resulting in a projected income and a return on investment of 770%. The project will help promote tourism and create employment opportunities in the area.

The second project is envisioned to be a world-class standard, with a full-service hotel property, condominium, marina clubhouse, and berth slip. The study analyzed the site, physical improvements, and amenities, as well as the outlook for the national economy, capital markets, and resort hotel visitation. The report also projected income and expenses for both the proposed hotels, and the marina component, and provided a feasibility conclusion with respect to the projected return on investment. The project is projected to generate a profit margin with the key assumption that operations will be managed by key executives and the workforce. Two ways to generate higher profit are to link up with an international hotel and obtain TIEZA accreditation.

Both projects are expected to help fill the gap in the government’s thrust to promote tourism and create employment opportunities in the area.

Consultant Agosto was among the individuals in real estate recently named Fellow in Real Estate Management by the Philippine chapter of the Paris-based International Real Estate Federation (FIABCI). The awardees were honored for their outstanding performance and contribution to the growth of the real estate industry.

“The honorees were conferred ‘Fellow in Real Estate Management, a distinction that will set them apart as models of the industry in their respective fields of specialization. And whose expert opinions will be much sought after and highly regarded even by their peers,” according to Dr. Eduardo G. Ong, a FIABCI-Ph vice-chairman.

The conferment of a real estate fellow was held during the Property & Real Estate Excellence Awards, last 9 December at Okada Hotel Manila.

“The achievements of fellows virtually highlight the historic milestones in the various academic and professional disciplines constituting the property and real estate industry,” FIABCI-Ph president Dr. Reghis M. Romero II said.

The Fellow in Real Estate Management Awards were carried out to recognize exemplar individuals for their performance, achievement, and the role they played in the real estate industry, continuing professional education, which contributed to the economic development of our country.

FIABCI Philippines is the Philippine Chapter of Federation Internationale des Admistrateurs de Bied & Conselis Immobiliers (FIABCI), otherwise known as the INTERNATIONAL REAL ESTATE FEDERATION, a worldwide federation of real estate professionals spread over the three principal regions: the Americas, Asia-Pacific, and Europe-Africa-Near-East; with chapters in more than 60 countries, and with more than 125 professional organizations in its membership roster.