Right of Informal Settler

There are two (2) kind of informal settlers or squatters. 

Professional squatters are those who have sufficient income for legitimate housing, non-bonafide occupants and intruders of lands reserved for socialized housing. In this case you can have them legally evicted. 

However, the squatters are underprivileged and homeless citizens, it’s more difficult. You need court order and it takes long time. In many cases, it involves both legal and humane (relocation fee) method to evacuate the land. The government is trying to relocate those people but there still a lot of squatter areas especially in Metro Manila.

Notes: Understandable but if you are a landowner, it's really disturbing since you cannot exercise your rights properly. Almost nobody will buy your land if there are informal settlers. There are too many issues with land in the Philippines (ownership, title, zone, tax, etc).

Right of Way (ROW)

Article 649 of the Civil Code provides that “the owner, or any person who by virtue of a real right may cultivate or use any immovable, which is surrounded by other immovables pertaining to other persons and without adequate outlet to a public highway, is entitled to demand a right of way through the neighboring estates, after payment of the proper indemnity.”

Government has right of eminent domain, which means if a piece of property is required for a road, railroad or any other public infrastructure, government can get that property, but must pay the owner just compensation. Many times, this ends up in court over the computation of compensation. For private companies it’s more difficult to resolve. Some cell sites of telecommunication companies or infrastructure projects couldn’t proceed because of this problem.

Capital Assets vs. Ordinary Assets

Why should we distinguish if it's capital or ordinary? Tax.

1. Capital Assets are defined in Tax Code
The term “capital assets” means property held by the taxpayer (whether or not connected with his trade or business), but does not include the following: stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year; property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business; property used in the trade or business, of a character which is subject to the allowance for depreciation ; and real property used in trade or business of the taxpayer.

It means capital assets are properties that are not used in trade or business. So the opposite will be the ordinary assets.

Notes: The sale of capital assets (land and/ or building) is subject to capital gains tax at the rate of six percent based on the gross selling price or fair market value at the time of sale, whichever is higher and the corresponding documentary stamp tax (DST). Conversely, sale of ordinary assets is subject to the creditable withholding tax at a rate ranging from 1.5 percent- 6 percent and consequently to ordinary income tax, corresponding DST and likewise to the 12 percent VAT.

Notes: Capital Gain tax is not imposed on gains. Even you sell a property at a loss, you should pay 6%. It's rather a transaction tax. Same as stock transaction tax.

2. Idle Assets