Rules on Land Transactions under R.A. 6657

Sales or dispositions of retained agricultural lands are valid only if the transferee does not exceed landholding ceilings under RA 6657.
Transferees must submit a sworn affidavit to the Register of Deeds and BARC attesting their total landholdings inclusive of the acquired land.
Registration is conditional on submission of such affidavit and proof of service to BARC.

Sale, transfer, conveyance, or change of nature of lands outside urban centers, after RA 6657's effectivity, is prohibited except as provided by DAR Administrative Order No. 15, Series of 1988.
The date of registration or issuance of tax declaration is conclusive for establishing compliance.
Sale or transfer of usufructuary rights by beneficiaries to circumvent law is prohibited.

Awarded lands to beneficiaries cannot be sold, transferred, or conveyed within 10 years except through hereditary succession or transfers to DAR, LBP, or other qualified beneficiaries.
Beneficiary’s children or spouse have a right to repurchase within 2 years.
If land remains unpaid, transfer to heirs or qualified beneficiaries may be allowed with DAR approval.
Failure to comply can result in mandatory transfer to LBP with compensation to beneficiary.

Banks and authorized financial institutions may hold mortgage rights on agricultural lands for loans and may acquire titles subject to laws on foreclosure and compulsory transfer under RA 6657.

Valid transactions include those executed by original landowners to qualified beneficiaries certified by DAR; sales to government, DAR or LBP; sales of retention areas not exceeding 5 hectares with certification and compliance; beneficiary to government or other beneficiaries if compliant; transactions after 10 years from issuance/registration of Emancipation Patent/Certificate of Land Ownership Award.
Invalid transactions include unregistered sales prior to certain dates exceeding retention limits; sales by beneficiaries within 10 years; those favoring unqualified persons; prohibited transfers of lands outside urban centers; and transfers of usufructuary rights to circumvent law.
Some transactions such as judicial partition, prior co-owner partition, title subdivision without ownership change, and mortgage deeds by original owners/beneficiaries may be registered without DAR clearance.

Applicant files written request at Municipal Agrarian Reform Office (MARO) with required documents including the deed to be registered, title or tax declaration, affidavits of transferee and transferor.
MARO verifies accuracy, conducts field inspections, and ensures transferee’s total holdings do not exceed ceiling.
MARO forwards request with recommendation to Provincial Agrarian Reform Officer (PARO).
PARO issues clearance for registration if in order.
Register of Deeds notifies DAR of any agricultural land transaction exceeding 5 hectares within 30 days.

Landowners must offer tenanted/leased lands for sale to tenants or lessees who have preferential rights under Section 11 of RA 3844.
Tenants/lessees have redemption rights via reasonable terms if land sold without their knowledge under Section 12 of RA 3844.
Spouse or children of beneficiary have right to repurchase land sold or transferred to government, DAR or LBP within 2 years.

Lands not acquired by DAR, retention areas, and awarded land to beneficiaries may be mortgaged or encumbered for improving or developing the land.
Banks authorized by law may acquire titles to these mortgaged lands subject to foreclosure procedures under RA 6657.

Conflicting orders, circulars, or memoranda inconsistent with these rules are revoked or modified.
The Administrative Order took effect ten days after publication in two national newspapers as required by law.