Beneficiary Eligibility and Policy
- Beneficiaries under VLT/DPS are the same as under compulsory acquisition or voluntary offer to sell.
- No beneficiaries related to the landowner within the 2nd degree of consanguinity, except established tenancy before June 15, 1988.
- ARBs opting for VLT/DPS get priority for immediate CLOA issuance; others processed normally under existing rules.
- VLT/DPS terms must be no less favorable than government’s standing offer.
- Direct payment terms become binding once approved or presumed approved after 30 days without disapproval.
- Immediate transfer of possession and ownership is required; CLOAs issued with annotations.
Default and Sanctions
- Defaulting ARBs by 3 consecutive missed payments or violations are disqualified permanently and CLOA canceled.
- Disqualified beneficiaries’ payments forfeited as lease rentals; lands redistributed to qualified heirs or new beneficiaries who assume terms.
- Defaults due to force majeure grant a grace period of at least one year.
- Amount paid and improvements credited to heirs or reimbursed if transferee is not an heir.
Payment and Transfer Restrictions
- Payments must be properly documented with receipts issued by landowners.
- Certificate of Full Payment issued after full payment; encumbrance cancellation coordinated with Register of Deeds.
- Lands acquired under VLT/DPS cannot be sold/transferred except by inheritance, government transfer, or qualified beneficiaries for 10 years.
- Spouse/children may redeem land within 2 years.
Explanation, Taxation, and Mortgages
- MARO to explain the agreement in local dialect before signing.
- Landowner must clear tax delinquencies before registration; if unable, ARB may pay taxes with Municipal Treasurer's conformity as part of agreement.
- Realty tax responsibility transfers to ARB after award.
- Mortgaged lands with financial institutions not eligible for VLT/DPS.
Coverage
- Applies to all private agricultural lands subject to acquisition under CARP.
Required Documents for VLT/DPS Agreement
- For titled lands: title owner’s copy, latest tax declaration, subdivision plan, tax clearance, certification free from liens.
- For untitled lands: certifications from CENRO, survey plans, acquisition instruments, certificates of non-involvement in cases, certifications ensuring no liens, LRA certification.
- For foreclosed lands: mortgagee’s title and related documents.
Operating Procedures
- Landowner initiates negotiations and submits application with required documents to MARO.
- MARO reviews, posts notice for 15 days, investigates, certifies posting, convenes conference for signing, prepares folder for PARO.
- PARO records, reviews, approves or disapproves within 30 days, directs survey and transfer execution, issues CLOA with lien annotation, registers documents with Register of Deeds.
- Registration exempt from capital gains tax, fees.
- MARO distributes titles and monitors payment compliance.
Reporting and Monitoring
- PARO submits quarterly status reports to Undersecretary for Field Operations through Regional Director.
- MARO reports ARBs who fully paid and titles whose liens have been canceled.
Transitional Provisions
- VLT/DPS documentation already pending in DARRO processed under previous rules; new submissions governed by this order.
Repeal and Effectivity
- All inconsistent orders, regulations revoked or amended.
- Effective 10 days after publication in two national newspapers per Section 49, R.A. 6657.