Title
Rules for Landowner Retention Right under CARP
Law
Dar Administrative Order No. 05, S. 2000
Decision Date
Aug 30, 2000
DAR Administrative Order No. 05-00 revises the rules and procedures for landowners to exercise their right of retention under CARP, aiming to protect the rights of both landowners and tenant-farmers in the Philippines.

Questions (DAR ADMINISTRATIVE ORDER NO. 05, S. 2000)

It is issued pursuant to PD 27 (as referenced in Section 6), RA 6657, and the Supreme Court ruling in Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform (G.R. No. 78742, 14 July 1989).

Any person, natural or juridical, who owns agricultural lands with an aggregate area of more than five (5) hectares may apply for retention.

A landowner who exercised retention under PD 27 may no longer exercise the same right under RA 6657. If he opts to retain five (5) hectares in other agricultural lands, the seven (7) hectares previously retained must be immediately placed under CARP coverage.

Heirs may exercise the right only if the decedent manifested during his lifetime his intention to exercise retention prior to 23 August 1990 (finality of the Supreme Court ruling). They must present proof of such intention. They may also exercise the right if they prove the decedent had no knowledge of the OLT coverage over the subject property.

Within sixty (60) days from receipt of the Notice of Coverage.

Retention must be exercised at the time the land is offered for sale. The offer must specify and segregate the portion covered by VOS and the portion applied for retention; otherwise, the landowner is deemed to have waived the retention right over the subject property.

The landowner waives the right to choose the area to be retained. The MARO then designates the retained area for the landowner and notifies the landowner; the landowner may accept/reject within sixty (60) days. Failure to respond means no objection.

He may file a protest with the MARO under the Rules of Procedure for Agrarian Law Implementation (ALI) Cases.

With the BLAD, the Regional Director (RD), the Provincial Agrarian Reform Officer (PARO), or the Municipal Agrarian Reform Officer (MARO). If filed in another office, it must be forwarded to the MARO with jurisdiction.

Examples include: (1) executing an affidavit/letter/attested document expressly waiving retention; (2) signing the LTPA-FU or APFU covering the property; (3) entering a VLT-DPS agreement evidenced by a Deed of Transfer; (4) offering the property under VOS without indicating the retained area; (5) signing other documents consenting to entire property coverage; (6) performing acts constituting estoppel by laches; or (7) other acts amounting to valid waiver under applicable laws and jurisprudence.

It is the failure or neglect for an unreasonable or unexplained length of time to do that which, by exercising due diligence, could or should have been done earlier—warranting a presumption of abandonment or decline to assert the right. The rules also list elements of laches (conduct, delay, lack of knowledge of claimant’s assertion, and injury/prejudice).

The land must be private agricultural land; the chosen area must be compact/contiguous and least prejudicial to the entire landholding and the majority of farmers; the landowner must execute an affidavit as to aggregate area; and the landowner must submit a list of children 15 years old or over as of 15 June 1988 who have been actually cultivating/directly managing since 15 June 1988.

Seven (7) hectares, except in specified situations for tenanted rice and corn lands under OLT acquisition/distribution exclusions discussed in Section 9.

They may retain not more than five (5) hectares, and each of his children may be awarded up to three (3) hectares if the child is at least 15 years old as of 15 June 1988 and has actually tilled or directly managed the farm from 15 June 1988 up to filing of the application and/or the time of acquisition under CARP.

The tenant may (1) remain in the retained area as a lessee, or (2) become a beneficiary in the same or another agricultural land with similar/comparable features.

The tenant may choose disturbance compensation from the landowner, subject to amount rules (not less than five times the average gross harvest for the last five preceding calendar years under RA 3844 as amended). The tenant is not ejected/dispossessed unless disturbance compensation is paid and proof is submitted to the MARO.

All amortizations paid by the ARBs must be fully reimbursed, in addition to benefits/rights accorded to holders in good faith under the New Civil Code.


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