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.

Law Summary

Statement of Policies Governing Retention Rights

  • Landowners can choose the retention area which must be compact, contiguous, and least prejudicial to the entire landholding and majority of farmers.
  • Landowners must directly cultivate or manage retained land to ensure productivity.
  • Tenant farmers’ rights and security of tenure under PD 27 and prior to RA 6657 approval must be respected; tenants cannot be ejected.
  • Any sale, lease, or transfer of lands in violation of RA 6657 is void; transactions before RA 6657 are valid only if registered within three months from 15 June 1988.

Eligibility to Apply for Retention

  • Natural or juridical persons owning more than 5 hectares may apply using Retention Form No. 1.
  • Landowners with 5 hectares or less, or lands not yet covered, may also apply.
  • Heirs may exercise retention rights of deceased landowners if intention was expressed before the final Supreme Court ruling on 23 August 1990.

Period to Exercise Retention Right

  • Under Compulsory Acquisition, landowners must exercise retention within 60 days from Notice of Coverage receipt.
  • Under Voluntary Offer to Sell, retention must be exercised when land is offered, specifying retained area; failure to specify means waiver.

Consequence of Failure to Exercise Retention Timely

  • Failure to exercise waiver allows MARO to select retention area for the landowner.
  • Landowner has 60 days after notification to accept or reject the designated area; silence is considered acceptance.
  • Disagreements must be protested through agrarian procedural rules.

Filing of Application

  • Retention applications may be filed with BLAD, RD, PARO, or MARO; non-MARO offices forward applications to appropriate MARO.

Waiver of Retention Right

  • Express waiver by affidavit or document attested by MARO, PARO, or RD.
  • Signing of agreements or transfers such as LTPA-FU, APFU, VLT-DPS.
  • Offering land under VOS without specifying retention area.
  • Consent to full coverage or related Land Bank documents.
  • Acts leading to estoppel by laches (unreasonable delay or neglect).
  • Other legal acts amounting to valid waiver.

Criteria for Award of Retention

  • Retained land must be private agricultural land, compact, contiguous, and least prejudicial to tenants.
  • Landowner must submit affidavit on aggregate holdings and list children 15 years or older who have been cultivating or managing since 15 June 1988.

Retention Area Limits and Conditions

  • PD 27 landowners can retain 7 hectares except certain conditions disallow retention.
  • Applications filed before 27 Aug 1985 may retain 7 hectares regardless of compliance with LOIs 41, 45, 52.
  • Those complying with LOIs can retain 7 hectares; non-compliers limited to 5 hectares.
  • Landowners covered by CARP can retain up to 5 hectares, with each qualifying child up to 3 hectares.
  • Original homestead grantees may retain original homesteads if still cultivated.
  • Rules on retention for spouses depend on Civil or Family Code property regimes with maximum retention varying from 5 to 10 hectares.

Effects of Retention When Retained Area is Tenanted

  • Tenants may choose to remain as leaseholders or become beneficiaries on similar lands.
  • Tenants refusing leasehold or transfer may claim disturbance compensation of at least five times average gross harvests of last 5 years.
  • Tenant’s option must be exercised within 1 year from retention area decision.
  • Tenants who become leaseholders lose right to ARB benefits; lease agreements governed by existing DAR issuances.
  • Preemption and redemption rights under RA 3844 apply to leaseholders.

When Retained Area Has Existing CLTs, CLOAs or EPs

  • DAR must notify affected ARBs and give opportunity to contest.
  • Affected ARBs prioritized for other land distribution.
  • ARBs may exercise options to lease or disturbance compensation within one year after cancellation.
  • Landowners encouraged to select retention area from non-awarded lands to minimize dislocation.

Reimbursement of Amortizations

  • Amortizations paid by ARBs on cancelled titles must be fully reimbursed alongside legal benefits for holders in good faith.

MARO Responsibilities

  • Issue Notice of Coverage and receive applications.
  • Determine qualifications including original homestead ownership and cultivation.
  • Conduct field investigations and identify tenants.
  • Facilitate conferences, land transfers for tenants, lease contracts, and compensation negotiations.
  • Prepare sketch plan with DENR and retention folder.
  • Notify landowners of designated areas when necessary.

PARO Responsibilities

  • Review MARO reports and forward to Regional Director if in order.
  • Segregate retained areas, coordinate surveys, issue Certificates of Retention.
  • Facilitate creation of separate land titles for retained and non-retained areas, and title for Republic for acquired lands.

Regional Director Responsibilities and Decision

  • Review PARO submissions and approve or deny retention applications.
  • Issue orders explaining decision.
  • Decision becomes final after 15 days unless appealed to DAR Secretary.

Transitory and Final Provisions

  • All pending applications processed per this Order.
  • This Order modifies and repeals earlier inconsistent orders.
  • If any provision is found unconstitutional, others remain effective.
  • The Order takes effect 10 days after publication in two national newspapers.

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