Law Summary
Scope of the Rules
- Applicable to registered CLOAs from issuance up to the tenth year when conveyance restrictions expire under R.A. No. 6657.
- Rules apply beyond the tenth year if the ARB has not fully paid land costs or obligations in case of public lands.
- Ownership acquired under P.D. No. 27 or E.O. No. 228 may be transferred after full amortization.
- Also applicable to patents and CLOAs issued to settlers in resettlement areas under DAR.
Definitions of Key Terms
- Misuse of Land: Acts causing substantial damage or deterioration of land, including growing dangerous drug sources as defined in P.D. No. 1683.
- Neglect or Abandonment: Willful failure by ARB and household to cultivate or use land for two consecutive calendar years.
- Illegal Conversion: Changing land use from agricultural to non-agricultural without DAR clearance.
Policy on Correction and Cancellation
- Registered EPs/CLOAs may only be corrected or cancelled by order of the Provincial or Regional Adjudicator as per DARAB Rules.
- Precedents from Supreme Court and Court of Appeals affirm this administrative jurisdiction.
Grounds for Cancellation
- Misuse or diversion of financial/support services granted to ARB.
- Misuse of the land including planting prohibited crops.
- Material misrepresentation of ARB’s qualifications under relevant agrarian laws.
- Illegal conversion of land use without authorization.
- Unauthorized sale, transfer, lease, or conveyance to circumvent agrarian restrictions; full amortization needed prior to transfer for lands under P.D. No. 27/E.O. No. 228.
- Default in payment of three consecutive amortizations except due to fortuitous events.
- Failure to pay at least three annual amortizations to LBP except because of force majeure.
- Neglect or abandonment of land for two years.
- Determination that land is excluded from agrarian reform coverage or part of the landowner’s retained area.
- Any other grounds violating agrarian reform laws.
Administrative Corrections
- May involve corrections in spouse identification, civil status, technical descriptions, and related agrarian reform data.
Decisions by the DAR Adjudication Board (DARAB)
- May include cancellation of EP/CLOA.
- Reimbursement of lease rentals as amortization to ARBs.
- Forfeiture of amortizations paid by ARBs.
- Ejectment of ARBs from land.
- Reallocation of land to qualified beneficiaries.
- Imposition of perpetual disqualification to become an ARB.
- Other ancillary measures related to cancellation.
Procedural and Transitory Provisions
- Implementation governed by procedures adopted by DARAB.
- Introduction of concepts like nominal party designation and exhaustion of administrative remedies.
Effectivity and Repealing Clause
- Takes effect ten days after publication in two national newspapers pursuant to Section 49 of R.A. No. 6657.
- Revokes, cancels or modifies inconsistent prior orders, circulars, memoranda, or rules and regulations.