Policy and Eligibility Rules
- Beneficiaries must qualify per DAR standards, akin to compulsory acquisition eligibility
- Minimum transfer area aligns with the government's compulsory acquisition standards
- Immediate transfer of possession and issuance of CLOA (Certificate of Land Ownership Award)
- Terms must be at least as favorable as governmental terms
- Direct payment agreements (cash or in-kind) are mutually agreed and binding upon DAR registration
- Non-compliance sanctions specified within agreements
Voluntary Transfer Procedures and Time Limits
- Negotiation and agreements must be submitted within one year from DAR's receipt of application notice
- Pending agreements as of issuance are enforceable
- Default on three consecutive payment installments leads to beneficiary replacement and disqualification under RA Nos. 3844 and 6389
- Substitution of beneficiaries possible with stipulations on refund and lien deductions
Payment and Land Ownership Conditions
- All payments require official receipts from owners
- Full payment triggers certification issuance and annotation cancellation on CLOA
- Lands under VLT/DPS cannot be sold or transferred except through hereditary succession or government for 10 years
- Children and spouses have two-year redemption rights
- Properties with liens or encumbrances are excluded from VLT/DPS
- Agreements must be explained in local dialect by the Municipal Agrarian Reform Officer (MARO)
Documentation Requirements
- Deed of Voluntary Land Transfer (VLT/DPS Form No. 7) is mandatory
- For titled properties: title copy, tax declaration, approved survey/segregation plans, tax clearances, and lien/encumbrance certification
- For untitled properties: tax declaration, approved survey plan and technical description, tax clearance, affidavit of exclusive ownership, and lien-free certification from relevant offices
Operating Procedures
- Landowners submit application with required documents to MARO
- MARO reviews and posts notice for 15 days; investigates land status and terms with Barangay Agrarian Reform Committee (BARC)
- Conference conducted post-notice for agreement finalization
- MARO forwards documents to Provincial Agrarian Reform Officer (PARO) within 5 days
- PARO registers, evaluates, and approves or disapproves within 30 days, with provisions for suspension on protests
- Approved cases proceed to survey, issuance of CLOAs with liens noted, and registration with the Register of Deeds
- MARO distributes titles and maintains records; assists beneficiaries with tax declarations and payment obligations
Reporting and Monitoring
- Quarterly reports on VLT/DPS status submitted by PARO to Undersecretary for Field Operations
Registration and Tax Exemptions
- Deed registration is exempt from capital gains tax, registration fees, and other transfer taxes as per Sections 66 and 67 of RA 6657
Transitional and Miscellaneous Provisions
- Previously pending applications proceed under old protocols
- New applications must follow updated administrative order
- Inconsistent issuances are revoked or amended
- Takes effect ten days after publication in two national newspapers
This summary provides an organized and detailed analysis of the Revised Rules and Procedures on Voluntary Land Transfer or Direct Payment Scheme under the Philippine Agrarian Reform laws, detailing policies, processes, documents, and legal protections involved.