QuestionsQuestions (DAR ADMINISTRATIVE ORDER NO. 08)
Under Section 20 of R.A. No. 6657, landowners may enter into a voluntary arrangement for the direct transfer of their lands. Section 21 provides for direct payment in cash or in kind by the ARB to the landowner under terms mutually agreed upon and binding upon registration with and approval by the DAR.
The beneficiaries under VLT/DPS are determined by DAR to be the same individuals who would be eligible to purchase the lands if the government acquired the land through compulsory acquisition (CA) or voluntary offer to sell (VOS) for distribution under the agrarian reform program.
No beneficiary related to the LO up to the second degree of consanguinity may be considered unless a tenancy relationship with the landowner existed or was established prior to June 15, 1988, certified by the MARO and the BARC (pursuant to Memorandum Circular No. 04, s. 1994).
The ARB who opts for VLT/DPS is afforded priority in the processing of documents for the immediate issuance of the CLOA.
The terms and conditions of VLT/DPS shall not be less favorable to the ARB than those of the government’s standing offer to purchase from the LO and to sell to the beneficiary, if such offers have been made and are fully known to both parties.
DAR approval is presumed unless a notice of disapproval is received by the ARB and/or the LO within thirty (30) days from date of receipt of notice/application for VLT/DPS agreement.
They should include the immediate transfer of possession and ownership of the land in favor of the identified beneficiaries, and CLOAs must be issued to the ARBs with proper annotations.
If the ARB defaults for reasons other than force majeure/fortuitous events by paying an aggregate of three (3) consecutive amortizations or deliberately fails to comply with the agreement provisions, the ARB is permanently disqualified as a CARP beneficiary under Section 20(c) of R.A. No. 6657 and M.C. No. 19, s. 1996. Any EP/CLOA is cancelled and the land is redistributed in an ordered manner to a qualified heir or, if none, a new qualified beneficiary who will pay the entire value.
First to a qualified heir of the beneficiary willing to abide by existing VLT/DPS terms and pay the entire value; second, in the absence of a qualified heir, to a new qualified beneficiary willing to abide by the terms and pay the entire value.
All payments made by the disqualified beneficiary are forfeited in favor of the landowner and treated as lease rentals.
A grace period of not less than one (1) year to pay the obligation on deferred payment, with these obligations embodied in the VLT/DPS agreement.
All payments must be covered by receipts issued by the LO.
After submission by the ARB of receipts showing full payment, the PARO issues a Certificate of Full Payment and requests the Register of Deeds (ROD) to cancel the encumbrance annotated at the back of the CLOA.
They may not be sold, transferred, or conveyed except through hereditary succession or to the government or to other qualified beneficiaries for ten (10) years. Children or spouse of the transferor may redeem from the government within two (2) years from the date of transfer under Section 12 of R.A. No. 3844, as amended by R.A. No. 6389.
Owner’s copy of the Title; latest Tax Declaration; approved segregation/subdivision plan; Real Estate Tax Clearance or Statement of Tax Delinquency; and ROD certification that the property is free from liens/encumbrances.
Lands mortgaged with banking and/or financial institutions may not be the subject of VLT/DPS.
The landowner (natural or juridical) initiates negotiation with prospective ARBs and submits: Notice/Application (Form No. 1); LO Information Sheet (Revised Form No. 1.1); VLT/DPS Agreement (Form No. 5); and the proposed agreement with complete supporting documents required under the guidelines.
PARO must approve within thirty (30) calendar days; otherwise, it returns the documents for appropriate action. The VLT/DPS agreement is considered approved unless a Notice/Memorandum of disapproval is issued and received within the same 30-day period, which may be suspended upon protest or in extreme cases.
The registration of the VLT/DPS agreement and corresponding CLOAs are free from payment of Capital Gains Tax, Registration Fee, and all other taxes and fees for the conveyance and transfer thereof, pursuant to Sections 66 and 67 of R.A. No. 6657.