Question & AnswerQ&A (DAR ADMINISTRATIVE ORDER NO. 02)
The VLT/DPS is a scheme where landowners of agricultural lands subject to acquisition under CARP may voluntarily transfer their lands directly to qualified agrarian reform beneficiaries (ARBs) with the option for direct payment by the beneficiaries to the landowners under terms mutually agreed upon and approved by the Department of Agrarian Reform (DAR).
Section 20 and Section 21 of R.A. No. 6657 govern the VLT/DPS. Section 20 provides for voluntary arrangements for direct land transfer, while Section 21 covers direct payments by ARBs to landowners under mutually agreed terms.
If the DAR does not issue a notice of disapproval within thirty (30) days from the registration date of the agreement, the approval of the VLT/DPS agreement shall be presumed.
The Department of Agrarian Reform (DAR) determines the beneficiaries eligible to purchase the land as qualified agrarian reform beneficiaries (ARBs).
The land area to be transferred to ARBs should not be less than the area the government would acquire through Compulsory Acquisition (CA) for redistribution.
Pursuant to R.A. No. 3844, as amended by R.A. No. 6389, the defaulting beneficiary shall be replaced and permanently disqualified as a CARP beneficiary. Their CLOA shall be cancelled, and the land may be awarded to a qualified heir or a new qualified beneficiary who will assume the obligations.
Documents required include: owner's copy of the title, latest tax declaration, approved segregation/subdivision plan, real estate tax clearance or tax delinquency statement, and certification from the Register of Deeds that the property is free from liens and encumbrances.
Key policies include immediate transfer of possession and ownership to ARBs, issuance of CLOAs with proper annotations, terms at least as favorable as government offers, direct payment options, sanctions for non-compliance, and prohibition of sale or transfer except by hereditary succession or government approval for ten years.
The MARO reviews documents, posts the land transfer notice with the draft agreement for 15 days, conducts investigation and verification, calls a conference with parties, prepares and signs the VLT agreement, and forwards the documentation folder to the Provincial Agrarian Reform Office within five days.
No, the registration of the DVLT is exempt from payment of capital gains tax, registration fees, and other taxes or fees as provided under Sections 66 and 67 of R.A. No. 6657.