Legal policy and distribution principles
- Upon land acquisition, the DAR shall immediately take steps to distribute the land to qualified beneficiaries and to make available support and coordinative services to enhance productivity (Statement of Policies A).
- Lands shall generally be distributed directly to individual worker-beneficiaries (Statement of Policies B).
- If division is not economically feasible and sound, lands shall be owned collectively by the worker-beneficiaries, who shall form a workers cooperative or association to deal with the relevant corporation or business association (Statement of Policies B).
- To facilitate distribution, lands shall preferably be transferred collectively to groups of farmers; agrarian reform beneficiaries may opt for collective ownership (including co-ownership or farmers cooperative) (Statement of Policies C).
- The total area that may be awarded under collective options shall not exceed (award limit of three (3) hectares) × (total number of co-owners or members), except in meritorious cases as determined by PARC (Statement of Policies C).
- Title under collective ownership shall be issued in the name of the co-owners, the cooperative, or the collective organization as the case may be (Statement of Policies C).
- Equitable distribution shall be observed through the following occupancy and eligibility considerations (Statement of Policies D):
- Actual occupancy by a tenant shall be the basis of award, provided it does not exceed three hectares (Statement of Policies D.1).
- For untenanted land, all qualified farmworkers in the estate shall be considered potential beneficiaries, provided each proportional share does not exceed three hectares; otherwise, additional ARBs shall be considered (Statement of Policies D.2).
- For unoccupied lands, each identified ARB may be allowed an award ceiling of three hectares, provided there are enough lands for distribution under CARP in the barangay to accommodate other equally qualified persons who were not considered as awardees (Statement of Policies D.3).
- The aggregate award to an ARB shall not exceed three (3) hectares, and total land ownership resulting from the award shall not exceed three hectares (Statement of Policies D.4).
- Land improvements and facilities for common use and benefit (such as roads, bridges, warehouses, irrigation systems and the like) may be transferred through farmers association or cooperative, or in the absence thereof, through co-ownership as far as practicable (Statement of Policies E).
Qualifications for agrarian reform beneficiaries
- Lands acquired under CARP shall be distributed as much as possible to landless residents in the same barangay, and if not available, to landless residents of the same municipality, using the following priority (Section III.A):
- Agricultural lessees and share tenants (Section III.A.1).
- Regular farmworkers (Section III.A.2).
- Seasonal farmworkers (Section III.A.3).
- Other farmworkers (Section III.A.4).
- Actual tillers or occupants of public lands (Section III.A.5).
- Collective or cooperatives of the above beneficiaries (Section III.A.6).
- Others directly working on the land (Section III.A.7).
- Only persons who meet the following qualifications shall be eligible as beneficiaries (Section III.B):
- Landless, as defined in R.A. 6657 (Section III.B.1).
- Filipino citizen (Section III.B.2).
- At least fifteen (15) years of age or head of family at the time of acquisition of the property titled in the name of the Republic of the Philippines (Section III.B.3).
- Willingness, ability, and aptitude to cultivate and make the land productive (Section III.B.4).
- Persons who have culpubly sold, disposed of or abandoned their lands are disqualified to become beneficiaries under this program (Section III.C).
Beneficiary rights, duties, and land restrictions
- ARBs shall exercise diligence of a good father of the family in the use, cultivation, and maintenance of the land, including improvements (Section IV.A).
- Negligence, misuse, or unauthorized sale of the land or any support extended to an ARB shall be a ground for forfeiture of the ARB’s right as such (Section IV.A).
- Lands acquired by a beneficiary may not be sold, transferred, or conveyed except through hereditary succession or to the Government, or to the LBP, or to other qualified beneficiaries for a period of ten (10) years (Section IV.B).
- Within a period of two (2) years, the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP (Section IV.B).
- Beneficiary ownership rights and obligations shall commence from the time the land is awarded and evidenced by a Certificate of Land Ownership Award (CLOA) (Section IV.C).
- If there is standing crop at the time of acquisition, the concerned landowner shall retain his share of the harvest pursuant to Section 28 of R.A. 6657 and other related laws (Section IV.C).
- Pending CLOA award, the DAR shall, upon taking actual possession, immediately inform identified ARBs that they are qualified to receive the land to establish usufructuary rights (Section IV.D).
- Beneficiaries shall pay for the lands to the Land Bank of the Philippines (LBP) in thirty (30) annual amortizations at six percent (6%) interest per annum, unless the ARB opts to accelerate payment (Section IV.E).
- ARBs are deemed able to exercise usufructuary rights after DAR possession and identification of qualified ARBs, even before CLOA issuance (Section IV.D).
Land distribution process and DAR offices
- After DAR receives a Memorandum of the Regional Director to take possession of the property and receives the copy of the TCT in the name of the Republic of the Philippines and the copy of Deed of Transfer or Proof of Trust Deposit, the PARO shall direct the MARO to proceed with land distribution (Section V).
Municipal Agrarian Reform Officer (MARO) duties
- The MARO shall, upon PARO’s directive to take possession, conduct verification and validation of the List of ARBs included in the claim folder of the subject landholding (Section V.A.1).
- The MARO shall verify and validate using the Application to Purchase and Farmers Undertakings (FUs) and shall inform qualified ARBs or the Farmers Cooperative/Association that they have been identified to receive the land to give usufructuary rights using CARP Form No. 19 (Section V.A.2).
- The MARO shall consult ARBs on their preference regarding the scheme of ownership—individual, collective, or co-ownership (Section V.A.3).
- The MARO shall assist ARBs in accomplishing the CLOA Application Form (CARP Form No. 18) (Section V.A.4).
- The MARO shall prepare the Land Distribution Folder (LDF) based on ARBs’ ownership preference, containing the following documents (Section V.A.5):
- CLOA Application Form (CARP Form No. 18) (Section V.A.5.a).
- Copy of letters to the qualified ARB (CARP Form No. 19) (Section V.A.5.b).
- Certification by the MARO (CARP Form No. 20) (Section V.A.5.c).
- Copy of the approved survey plan or plan of the property prepared and approved by a licensed Geodetic Engineer (Section V.A.5.d).
- Copy of TCT in the name of the Republic of the Philippines (Section V.A.5.e).
- Copy of Deed of Transfer or Proof of Trust Deposit, as the case may be (Section V.A.5.f).
- The MARO shall forward the LDF to the PARO (Section V.A.6), and shall facilitate organizational requirements for collective ownership (Section V.A.6.a).
- For collective ownership, the MARO shall facilitate the organization and registration of the association or cooperative in coordination with appropriate government and non-government agencies, and shall submit additional requirements including (Section V.A.6.a):
- A Board Resolution authorizing any member to sign the application form on behalf of the association/cooperative (Section V.A.6.a (Board Resolution)).
- Articles of Incorporation and By Laws of the cooperative or association (Section V.A.6.a (Articles/By Laws)).
- A certified copy of the title in lieu of the technical description (Section V.A.6.a (certified copy of title)).
- Where no cooperative, association, or formal organization has been formed, the land subject of distribution shall be governed by the laws on co-ownership (Section V.A.6.b).
Provincial Agrarian Reform Office (PARO) duties
- The PARO shall review all documents contained in the LDF (Section V.B.1).
- If the documents are in order, the PARO shall generate a “mother” CLOA for the whole landholding in favor of the farmers’ cooperative/association or co-ownership, or in individual cases shall generate CLOA certificates in the name of each ARB (Section V.B.2).
- All CLOAs shall contain an annotation of a lien in favor of LBP ensuring full payment of its value pursuant to R.A. 6657 (Section V.B.2).
- The lien annotation shall identify the parcel as encumbered in favor of the LAND BANK OF THE PHILIPPINES, with the specific purpose of ensuring full payment of its value by the agrarian reform beneficiaries/farmers cooperative or farmers association named in the CLOA (Section V.B.2).
- In individual ownership cases, the PARO shall request the DENR to conduct subdivision survey and submit the required documents (Section V.B.3).
- After generating CLOA, the PARO shall prepare the corresponding CLOA Recording Sheet (Section V.B.4).
- The PARO shall initial the owner’s/co-owner’s duplicate CLOA and forward the LDF with supporting documents to the RARO (Section V.B.5).
Regional Agrarian Reform Office (RARO) duties
- The RARO shall review the LDF and initial the owner’s/co-owner’s duplicate CLOA (Section V.C.1).
- If documents are in order, the RARO shall transmit the CLOA and the corresponding CLOA Recording Worksheet to BLAD-DARCO using CARP Form No. 21; otherwise, it shall return the CLOA to PARO for correction or replacement (Section V.C).
- The RARO shall receive and index CLOAs and enter them in the CLOA Registry Book by province (Section V.E.1).
- The RARO shall transmit the approved CLOA to PARO (Section V.E.2).
- The RARO shall submit periodic reports on CLOA generated, registered, and distributed to the DAR Secretary, with a copy furnished to BLAD-DARCO (Section V.E.3).
BLAD-DARCO duties
- BLAD-DARCO shall review and evaluate CLOAs (Section V.D.1).
- If documents are in order, BLAD-DARCO shall cause signing of the CLOA by the Secretary and affix the DAR Seal; otherwise, it shall return CLOA to RARO for correction or replacement (Section V.D.2).
- BLAD-DARCO shall forward the signed and sealed CLOA to RARO with the corresponding Transmittal Memo (Section V.D.3).
- BLAD-DARCO shall monitor the generation and distribution of CLOAs (Section V.D.4).
Final recording, registration, and title distribution
- The PARO shall record signed and sealed CLOAs and enter them in the CLOA Registry Book (Section V.F.1).
- The PARO shall cause registration of the CLOA with the Register of Deeds (ROD) (Section V.F.2).
- After registration, the PARO shall reflect the Title number and date of registration in the CLOA Registry Book (Section V.F.3).
- The PARO shall transmit the owner’s/co-owner’s duplicate certificates/titles to the MARO (Section V.F.4).
- The MARO shall receive and record owner’s/co-owner’s duplicate certificates/titles (Section V.G.1).
- The MARO shall distribute owner’s/co-owner’s duplicate certificates/titles to ARBs, or to the cooperative/association (Section V.G.2).
- The MARO shall maintain a Log Book of all CLOAs/titles issued within the municipality and prepare an Index Card for individual ARBs (Section V.G.3).
- The MARO shall assist ARBs in securing corresponding Tax Declaration from the Assessor’s/Treasurer’s Office (Section V.G.4).
Cross-references and statutory anchors
- The Order’s beneficiary disqualification refers to and defines the concept of “landless” using R.A. 6657 (Section III.B.1).
- The Order protects harvest rights by referencing Section 28 of R.A. 6657 and other related laws where standing crops exist at the time of acquisition (Section IV.C).
- The Order’s effectivity publication requirement uses Section 49 of R.A. 6657 as the publication rule (Effectivity).
- Payment terms are anchored on the purchase and amortization framework under R.A. 6657, including payment secured through a lien annotation in favor of LBP (Section IV.E and Section V.B.2).