Legal basis and related laws
- The transferability framework is anchored on Presidential Decree No. 27, which provides that title to lands acquired under it (and the Land Reform Program) is not transferable except by hereditary succession or to the Government.
- Section 6 of Executive Order No. 228 allows that ownership of lands acquired by farmer-beneficiaries may be transferred after full payment of amortizations.
- Section 27 of Republic Act No. 6657 provides that CARP lands acquired by beneficiaries may not be sold, transferred or conveyed except under limited instances and conditions, including a ten (10) year prohibition.
- The guidelines also reference A.O. No. 20, Series of 1992 of the Office of the President on non-negotiability of certain prime agricultural lands.
- The procedures require documents and certifications from LBP, NIA, DAR/LBP for loans, the Treasurer’s Office, and certifications/affidavits involving DARAB and the Office of the President.
Policy and purpose
- The government policy requires that lands awarded to ARBs may be transferred and registered by the Register of Deeds only after DAR clearance.
- The productivity of the awarded land must be maintained.
- Any change in the nature of use is not allowed unless approved by the DAR under its rules on conversion or exemption.
- Prime agricultural lands, irrigated or irrigable lands under A.O. No. 20, Series of 1992 are preserved through non-negotiability for conversion.
Transferability clearance requirement
- The Register of Deeds may transfer and register awarded lands only after the issuance of a DAR clearance.
- The DAR clearance rule applies to lands awarded to ARBs under either P.D. No. 27 or R.A. No. 6657.
- Transfer is permitted while requiring continued productivity maintenance and DAR control over conversion/exemption.
- For irrigated or irrigable prime agricultural lands under A.O. No. 20, Series of 1992, the non-negotiability for conversion must be annotated at the back of the Transfer Certificate of Title (TCT) by the Register of Deeds.
Coverage: who may transfer and conditions
- Transfer is addressed for lands awarded to agrarian reform beneficiaries (ARBs) under P.D. No. 27 (as amended by E.O. No. 228) and R.A. No. 6657.
- Transfer rules are applied based on the awardee’s identification as tenant, transfer action reallocatee, or other awardee status, including timing of tenant recognition and reallocation recognition.
- Ownership limits apply to prevent excessive land ownership by transferees.
- ARB qualification for future CARP beneficiary status is affected by disposal of the landholding.
Substantive limits and special cases
- Ownership and land limits:
- The ownership ceiling of five (5) hectares is imposed and no person may own more than five (5) hectares pursuant to the ownership ceiling under R.A. No. 6657.
- The transferee must not exceed the aggregate landowner ceiling provided by law.
- Productivity and land use:
- Transferability depends on maintaining the productivity of the subject land.
- Any change in the nature of use requires DAR approval under DAR rules on conversion or exemption.
- Tenant recognition timing under P.D. No. 27:
- If the awardee was identified as a tenant as of 21 October 1972 and amortizations were fully paid, transfer by the original tenant or his heirs may be allowed regardless of the date of issuance of Emancipation Patent (EP).
- If the land was identified as tenanted after 1972, transfer may be allowed only after the lapse of ten (10) years from the date of recognition of the tenants as stated in the Order of Placement issued pursuant to DAR Memorandum Circular No. 2, Series of 1978.
- Reallocatee situation under P.D. No. 27 (as amended) and R.A. No. 6657:
- If the awardee is a transfer action reallocatee pursuant to an Order of Reallocation, transfer may be allowed provided ten (10) years have elapsed from the date of recognition of the reallocatee stated in the final Order of Reallocation issued by the Regional Director (RD)/DAR Secretary.
- Transfer to a reallocatee by virtue of succession by an heir is not subject to the ten (10) year prohibition.
- Awardee disposal consequences:
- An awardee who disposes of his/her landholding becomes no longer qualified to become a beneficiary under CARP.
Title and registration mechanics
- Transfer-to-transferee title issuance:
- The Land Registration Authority (LRA) shall issue the TCT for lands transferred by an awardee to a transferee.
- Conversion non-negotiability annotation:
- Where the land is within irrigated or irrigable prime agricultural lands under A.O. No. 20, Series of 1992, the Register of Deeds annotates non-negotiability for conversion on the back of the TCT.
Operating procedure: filing and documentary requirements
- Initiating filing:
- The awardee/transferor must file with the DAR Municipal Office (DARMO) a written request to transfer the awarded landholding.
- Required documents from awardee/transferor:
- Certificate of Full Payment of Amortization issued by the LBP on lands financed by LBP, or issued by DAR for lands covered by the Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS).
- Certification regarding Full Payment of Irrigation Fees from NIA.
- Certification regarding Loans (equipment, production, etc.) from DAR/LBP.
- Tax clearance from the Treasurer’s Office.
- An Affidavit of the transferor stating that the property has no pending case at the DARAB or any of its Adjudicators, the DAR, the Courts, or the Office of the President.
- DARMO document processing and buyer requirements:
- DARMO must process and review the transferor’s submitted documents.
- DARMO must require the buyer-transferee to submit:
- Affidavit of Aggregate Area of Agricultural Landholding
- Certified copy of Income Tax Return
- Residence Certificate
- Certification from the Provincial Assessor’s Office regarding the extent of agricultural landholding within the province.
- DARMO must forward to DAR Provincial Office (DARPO) the documents and DARMO recommendations within fifteen (15) days upon receipt of the application.
Review, approval, decision, appeals
- DARPO review:
- DARPO must review and evaluate the documents and recommendations of DARMO.
- If found in order, DARPO must forward the documents and its recommendations to the DAR Regional Office within ten (10) days upon receipt for proper action.
- If not found in order, DARPO must return the application with supporting documents to DARMO for further action.
- DAR Regional Office legal review and draft decision:
- The DAR Regional Office through the Legal Division must review and evaluate the documents and recommendations of DARPO.
- If found in order, it must prepare a draft decision within five (5) days from receipt for consideration and signature of the Regional Director.
- If not found in order, the Legal Division must return the application and supporting documents to DARPO for further action.
- Regional Director action and communication:
- The Regional Director signs the order of approval or disapproval.
- The signed order is forwarded to the Legal Division for proper disposition.
- Copies of the order are furnished to the parties concerned, DARPO, and DARMO.
- Appeal:
- The decision of the Regional Director may be appealed to the Secretary through the Bureau of Agrarian Legal Assistance (BALA) within fifteen (15) days from receipt of the order.
Monitoring and reporting; repeal; effectivity
- Monitoring and reporting:
- Periodic reports on transferability/transfer action transactions must be submitted to the Office of the Undersecretary for Field Operations through the Regional Office copy furnished BLAD and MIS.
- Repealing clause:
- All orders, circulars, and other issuances inconsistent with these guidelines are deemed repealed, amended, or modified accordingly.
- Effectivity clause:
- The guidelines take effect ten (10) days after publication in two (2) national newspapers of general circulation.