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.