Title
2003 DAR Rules on Landowner Retention Rights
Law
Dar Administrative Order No. 02
Decision Date
Jan 16, 2003
This administrative order establishes revised rules and procedures for landowners in exercising their retention rights under existing agrarian reform laws, ensuring the protection of tenant farmers' rights while outlining specific criteria and timelines for retention applications.
A

Statement of Policies

  • Landowner may choose a compact, contiguous retention area least prejudicial to tenants
  • Must manifest intent to retain within 60 days of notice; failure = waiver
  • Must specify exact retention area within 30 days of intent, else MARO chooses
  • Obligation to cultivate retained land directly or through labor administration
  • Tenant farmers’ rights and security of tenure respected; no eviction prior to RA 6657 approval
  • Invalidates unlawful sale, lease, transfer of land violating RA 6657
  • Pre-RA 6657 transactions valid only if registered within 3 months after June 15, 1988

Who May Apply for Retention

  • Landowners owning more than 5 hectares may apply
  • Landowners who retained under PD 27 cannot do so again under RA 6657; retention areas previously retained become subject to CARP
  • Owners of 5 hectares or less not yet covered may apply for Certification of Retention
  • Heirs of deceased owners may exercise retention if decedent manifested intent before August 23, 1990

Period to Exercise Retention Right

  • Retention may be exercised before notice of coverage
  • Under compulsory acquisition: within 60 days from notice
  • Under voluntary schemes: simultaneously with offer for sale or transfer

Application Filing

  • Applications filed with Regional Director or PARO
  • Forwarded to MARO with docket number assigned

Waiver of Retention Right

  • Failure to manifest interest within 60 days
  • Failure to state intention upon voluntary offer or transfer
  • Execution of waiver documents duly attested
  • Signing production agreements or applications to purchase
  • Entering voluntary land transfer/sale without manifesting retention
  • Consenting to full CARP coverage
  • Acts implying abandonment via laches

Criteria for Award of Retention

  • Land must be private agricultural land
  • Retention area must be compact, contiguous, minimally prejudicial
  • Landowner must submit affidavits on total landholding and list of children aged 15+ managing lands since June 15, 1988
  • Must submit affidavit stating farmers, lessees, tenants, farmworkers, or a sworn statement if none exist

Retention Area Entitlements

  • Under PD 27: maximum 7 hectares except disqualifications
  • Compliance deadlines affect retention size: 7 hectares if complied and applied timely; otherwise, max 5 hectares
  • Under RA 6657: max 5 hectares, plus 3 hectares each to qualified children as preferred beneficiaries
  • Original homestead grantees may retain homestead if still cultivated
  • Married couples’ retention depends on property regimes and agreements; max combined 10 hectares

Effects When Retained Area is Tenanted

  • Tenant may choose leasehold or beneficiary status on similar land
  • If tenant refuses both and no land available, may opt for disturbance compensation not less than 5 times average gross harvest
  • Tenant must choose within 1 year after retention area selection
  • Tenant choosing leasehold loses CARP beneficiary rights
  • Preemption and redemption laws apply to tenant lessees

MARO Responsibilities

  • Verify ownership, qualifications, tenants, and relevant facts
  • Notify tenants and facilitate conferences
  • Facilitate land transfers and lease agreements
  • Mediate disturbance compensation negotiations
  • Prepare retention area sketch plans with DENR
  • Prepare retention folder and submit to PARO
  • Select prime agricultural areas when landowner waives choice
  • Notify landowner of retention area selected by DAR

PARO Responsibilities

  • Review MARO reports, conduct own investigations if needed
  • Forward complete retention folders to Regional Director
  • Segregate retained area and conduct final survey with DENR
  • Draft Certificate of Retention
  • Request Register of Deeds to issue titles for retained area and areas under CARP

Regional Director Responsibilities

  • Evaluate retention applications and either approve or deny
  • Issue Order of Approval with sketch plan or Order of Denial
  • Forward orders to PARO and record with BLAD for monitoring
  • Issue Certificate of Retention

Appeals and Finality

  • Decisions become final after 15 days if no appeal
  • Appeals made to DAR Secretary under ALI rules

Transitory and Final Provisions

  • Pending applications processed under new rules
  • Regional offices must submit inventories of retention cases within 90 days
  • Repeals and modifies inconsistent previous DAR administrative orders
  • Separability clause protects other provisions if one declared unconstitutional
  • Takes effect 10 days after publication in newspapers

This comprehensive explanation outlines key rules and procedures for landowner retention rights including application, qualifications, awards, tenant protections, and government official responsibilities as mandated by DAR Administrative Order No. 02, s. 2003.


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