What is Expropriation?

Expropriation is a legal process by which the government acquires private property for public use. In the Philippines, expropriation is governed by various laws and regulations, including the Philippine Constitution, the Local Government Code, and the Rules of Court. If you own a business or property that may be subject to expropriation, here’s what you need to know:

1. Legal basis for expropriation. Expropriation is allowed by law, but it must be for public use and with just compensation. Public use can include the construction of roads, airports, schools, and other infrastructure projects that benefit the general public. Just compensation is the full and fair market value of the property at the time of the taking.
2. Process of expropriation. Expropriation proceedings are initiated by the government agency that needs the property. The property owner will be notified and given an opportunity to negotiate the compensation. If an agreement cannot be reached, the government agency may file a case in court to determine the just compensation.
3. Rights of the property owner. The property owner has the right to receive just compensation for the property. The property owner also has the right to due process, which includes the right to a hearing, the right to present evidence, and the right to be represented by counsel.
4. Remedies for the property owner. If the property owner believes that the compensation offered is inadequate, they can file a protest with the government agency or with the court. The property owner can also appeal the court’s decision on just compensation.
5. Importance of getting legal advice. Expropriation can be a complex and lengthy process. If you own a business or property that may be subject to expropriation, it’s important to get legal advice to ensure that your rights are protected and that you receive just compensation.
6. Hiring a real estate appraiser. A real estate appraiser plays a crucial role in determining the fair market value of a property in the context of an expropriation case. The appraiser’s job is to assess the value of the property, taking into account various factors such as its location, size, condition, and prevailing market conditions.

In an expropriation case, the appraiser is typically hired by the landowner or the government agency undertaking the expropriation. The appraiser’s valuation serves as the basis for determining the just compensation that the landowner is entitled to receive. The appraiser may also be called upon to testify in court to support their valuation and to answer questions from the judge or opposing counsel.

When the DPWH or another condemning authority wants to condemn your property, the appraisal was done to determine what is owed for what they are taking. You should request a copy of it because they typically don’t give you one when they make you an offer. If you want to counter the offer, you may need to get an independent appraisal.

Within 30 days, you have two options- get the offer or get an Expert Expropriation Appraiser.

An Expert Expropriation Appraisal

Our evaluation is significantly more thorough. You need an appraiser who has expertise performing these kinds of evaluations and who is prepared to put in the time and effort necessary to comprehend your property, accurately value it, and provide a report that will hold up in court, if necessary.

It will also take into account factors that the court, DPWH, and other government agencies won’t and aren’t required to, such as medians and potentially lost corporate revenues. The appraisal is comparable in duration tailored to fit and is occasionally carried out by a team of experts. Below are two of the most significant criteria covered by these kinds of appraisals.

Highest and Best Use

In eminent domain situations, you’re supposed to be paid not only for your land in its present state (what most standard appraisals measure) but for your property’s “highest and best use” or the most productive you could have developed the property.

Damages to the Remainder

In partial taking, the appraiser should determine the property value before and immediately after the taking of the property. The consequential damages it created to the property.

This is a very important point.

Let’s say you own a piece of land large enough to build a commercial building on it. The DPWH or NPC wants a large part of your property to build a new highway. Once they’ve taken your property, the remainder isn’t large enough to develop. Eminent domain appraisals should take into account what the DPWH or other government agencies takes and whether that taking made your remaining land less valuable or worthless. Valuing property this way involves a lot of hypotheticals and even expert opinions can vary greatly. Since these appraisals are so in-depth, you don’t want to have to do more than one, so it’s very important to make sure you have the right team putting it together.