Title
Guidelines on Landowners' Retention Rights PD 27
Law
Dar Administrative Order No. 4 S. 1991
Decision Date
Apr 26, 1991
Landowners under Presidential Decree No. 27 are granted specific retention rights, allowing them to retain up to seven hectares of land, with guidelines established for compliance, application processes, and the rights of tenant-farmers.

Questions (DAR ADMINISTRATIVE ORDER NO. 4 S. 1991)

The AO cites Association of Small Landowners in the Philippines, Inc. v. Hon. Secretary of Agrarian Reform (G.R. No. 78742, 14 July 1989), holding that landowners who were unable to exercise retention under P.D. 27 shall enjoy the retention rights under R.A. No. 6657 subject to its conditions. It further cites the resolution on reconsideration stating that landowners who complied with LOI Nos. 41, 45, and 52 regarding registration prior to the CARL may be allowed the 7-hectare retention limit under P.D. 27, while those who continuously refused to comply with the registration requirement cannot demand that their retention limit be determined under P.D. 27 in view of the CARL.

They are entitled to retain seven (7) hectares, except when the entire tenanted rice and corn lands are subject of acquisition and distribution under Operation Land Transfer (OLT).

When either: (1) as of 21 October 1972, he owned more than 24 hectares of tenanted rice or corn lands; or (2) by virtue of LOI 474, as of 21 October 1976 he owned less than 24 hectares of tenanted rice or corn lands but additionally owned: (a) other agricultural lands of more than seven hectares (tenanted or not, cultivated or not, and regardless of income), or (b) lands used for residential, commercial, industrial, or other urban purposes from which he derives adequate income to support himself and family.

If applications were filed before 27 August 1985 (deadline under Admin. Order No. 1, s. 1985), retention is not more than 7 hectares regardless of compliance with LOI Nos. 41, 45, and 52. If filed after 27 August 1985: (a) compliant with LOI Nos. 41, 45, and 52 may retain up to 7 hectares; (b) not compliant may retain only up to a maximum of 5 hectares.

The landowner is entitled to a maximum of five (5) hectares as retention area.

The heirs must show proof that the original landowner manifested during his lifetime his intention to exercise retention prior to 23 August 1990 (finality date of the referenced Supreme Court decision).

Heirs may exercise the right if they can prove that the decedent had no knowledge of OLT coverage over the subject property.

Waiver occurs by any of: (1) signing the Landowner-Tenant Production Agreement and Farmer’s Undertaking (LTPA-FU) covering the subject property; (2) entering into a direct-payment scheme agreement evidenced by a Deed of Transfer over the subject property; and (3) signing/submitting other documents indicating consent to have the subject property covered (e.g., Land Bank of the Philippines form letter on disposition of cash and bond portions of land transfer claim; Deed of Assignment, Warranties and Undertaking executed in favor of LBP).

Yes. It states that all rights previously acquired by tenant-farmers under P.D. 27 are retained and recognized, and that Section II(d), (e), (h), and (i) of Administrative Order No. 11 (s. 1990) shall be applied.

They should be persuaded to select the area they will retain from these other lands to prevent or minimize possible dislocation of farmer-beneficiaries who have been issued CLTs or EPs.

DAR must immediately inform the tenants concerned and provide them the opportunity to dispute or contest the landowner’s claim. It must ensure that affected tenants, if they so desire, are given priority in the distribution of other lands of the landowner or other lands identified by DAR for redistribution, subject to rights of those already in place.

They must exercise this option within one (1) year from the time the landowner manifests his choice of the area for retention.

MARO shall: receive the application (Ret. Form No. 1); invite concerned parties to a conference/dialogue (Ret. Form No. 2); conduct field verification/investigation of (a) landholding in relation to application and (b) tenants/actual occupants (Ret. Form No. 3); collaborate to prepare a sketch plan of the retained area; evaluate documents and submit recommendation to PARO.

PARO reviews and evaluates MARO’s report and recommendation. If documents are in order, PARO forwards them with PARO’s findings and recommendations to the RARO for appropriate action; otherwise PARO returns the documents to MARO.

It becomes final fifteen (15) days from receipt unless an appeal is made to the DAR Secretary.

It takes effect ten (10) days after publication in two (2) national newspapers of general circulation. It amends or revokes all previous orders, memoranda, circulars and issuances (or portions thereof) inconsistent with it, and supplements Administrative Order No. 11 (s. 1990).


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