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RA 12001 (Real Property Valuation & Assessment Reform Act or RPVARA) – FAQ

1. What is RA 12001?

RA 12001 is the law that reforms the entire real property valuation and assessment system in the Philippines.

It establishes a uniform, transparent, market-based valuation framework for all LGUs.

2. Is RA 12001 already effective?

Yes.

The law became effective in 2024 after publication.
However, full implementation is scheduled for January 2026.

3. Why is implementation only starting in 2026?

The law requires LGUs and the DOF to first:

Prepare new Schedules of Market Values (SMVs)

Update valuation maps and conduct property inventories

Roll out the National Valuation Standards (NVS)

Train assessors nationwide

Build databases and digital systems

This is a nationwide structural reform — it cannot be rushed.

4. What is the biggest change under RA 12001?

Starting 2026, assessed value ≈ market value.
This means:
“Property values will no longer depend on guesswork. There will be a standardized basis.”

5. Will Real Property Tax (RPT) increase?

Possibly.

If assessed values increase, the tax base will also increase.
However, LGUs still control tax rates, which may or may not be adjusted.

6. Does this eliminate undervaluation?

Yes.

RA 12001 aligns valuation systems, making both underpricing and overpricing harder to justify.

7. Should I have my property appraised now?

Yes — especially if you plan to sell.
An early appraisal helps you:

Set realistic pricing before new values take effect

Avoid tax-related surprises

Prepare for negotiations based on updated standards

8. What is the impact on property sellers?

Seller-dictated pricing will disappear

Buyers will use the new assessed value as their reference

Overpriced listings will be rejected quickly

Professional appraisals will become essential

9. What is the impact on buyers?

Valuations become clearer and more consistent

Pricing becomes more transparent

Negotiations become more objective

10. What is the impact on brokers and agents?

“Guesstimate pricing” will no longer work

Updated knowledge of valuation standards becomes necessary

Appraisal reports move from optional to required

The industry becomes more professional and credible

11. Will underdeclaration for BIR purposes still be possible?

Very limited.

BIR, BLGF, and LGUs will follow an aligned valuation system, leaving less room for undervaluing properties in tax declarations.

12. How does this affect estate settlement and inheritance cases?

Valuation becomes standardized, reducing disputes and making estate settlement faster and more predictable.

13. When should property owners start preparing?

Now.

Year 2025 is the preparation period:

Appraisal
Pricing adjustments
Tax exposure review
Estate planning
Selling strategy

14. What should sellers do before 2026?

Obtain a professional appraisal

Set a realistic selling price

Decide whether to sell before the valuation adjustments take effect.

Earthquake preparedness guidelines for safety.

What to do Before an Earthquake:
- Secure your property: fasten tall furniture, water heaters and shelves; keep heavy items on lower shelves.
- Prepare a Go Bag: IDs, medicines, flashlight, whistle, water, snacks, power bank, first-aid kit, and a copy of important documents.
- Know the Basics: learn evacuation routes and assembly area.
- Contacts: save admin office hotline, security and emergency numbers.

What to do During an Earthquake:
- Indoors: Drop, Cover, and Hold. Stay away from windows, mirrors, and unsecured shelves.
- Do not use elevators.
- If in common areas: follow staff instructions, protect your head and neck, move away from glass.
- If outdoors: move to an open area, away from facades, power lines and trees.

What to do After an Earthquake:
- Evacuate calmly via stairs to the assembly area if instructed by PMO/Security.
- Bring your Go Bag, wear shoes, and assist children, elderly, and PWDs.
- Accountability: inform Security/PMO of your property and headcount upon reaching the assembly area.
- Wait for the “All Clear”: re-entry will only be allowed after safety checks by the building engineers and authorities.
- Report hazards: gas smell, water leaks, fallen debris, or structural cracks to Security/PMO.

Pray. Take care and God bless us all.

🥳A Blessed 127th Philippine Independence Day!🇵🇭 "Freedom comes with great responsibility"