Question & AnswerQ&A (DAR ADMINISTRATIVE ORDER NO. 08)
VLT/DPS is a scheme allowing landowners of agricultural lands subject to CARP to voluntarily transfer their lands directly to agrarian reform beneficiaries (ARBs) who can make direct payment in cash or in kind, under mutually agreed terms approved and registered by DAR.
Beneficiaries are those individuals determined by DAR who would be eligible under compulsory acquisition or voluntary offer to sell schemes. Relatives of the landowner up to the second degree of consanguinity are generally disqualified unless a tenancy relationship existed prior to June 15, 1988.
If an ARB defaults in three consecutive amortizations without force majeure or fortuitous events, they are permanently disqualified as a CARP beneficiary, their CLOA may be cancelled, and land payments forfeited as lease rentals to the landowner.
A grace period of not less than one year to pay deferred payments is given, and terms must be embodied in the VLT/DPS agreement.
Owner's copy of the title, latest tax declaration, approved subdivision plan, real estate tax clearance or statement of delinquency, and certification from the Registry of Deeds that the property is free of liens or encumbrances.
PARO reviews documents for completeness, approves or disapproves within 30 days, coordinates survey and registration, generates CLOAs with lien annotations, and ensures registration with the Registry of Deeds. Approval is presumed unless a notice of disapproval is issued within 30 days.
No, lands mortgaged with banking or financial institutions may not be the subject of VLT/DPS.
No, lands acquired under VLT/DPS may not be sold, transferred, or conveyed except through hereditary succession or to the government or other qualified beneficiaries for a period of ten years, subject to redemption rights by spouse or children within two years.
MARO initiates records, reviews agreements, posts notices, conducts investigations with BARC, assists parties, prepares folders, distributes CLOAs after registration, and monitors ARBs’ obligations.
The MARO is required to adequately explain the VLT/DPS agreement to the parties, including in the local dialect, prior to signing.