G. Provisional Deposit (Rule 135, Secs. 5(g) and 6; Guerrero Estate Dev. Corp. v. Leviste & Guerrero Realty Corp., G.R. No. 253428)

Purpose of Preliminary Deposit

• Provide damages if court finds that the plaintiff has no right to expropriate; and
• Advance payment for just compensation, if property is finally expropriated. (Zaballero v. NHA, G.R. No. 49291-92, 1987).

Value of Preliminary Deposit

• Personal property: provisionally ascertained and fixed by the court;
• Real property: assessed value in the tax return (Sec. 2, Rule 67);
• If it is a LGU which is expropriating the property, only 15% of the fair market value based on the tax declaration is required to be deposited. (Sec. 19, Local Government Code). RA 12001 amended Sec. 199, but did not amend the Sec. 19 provisional-deposit rule, of the Local Government Code.

Updated: For national government infrastructure projects, the provisional deposit is 100% of the land value based on the current relevant BIR zonal valuation, rather than the Rule 67 assessed-value measure (National Transmission Corporation v. Spouses Manalo, G.R. No. 266921, 22 January 2024).