Title
Rules on Correction/Cancellation of EPs and CLOAs
Law
Dar Administrative Order No. 02, S. 1994
Decision Date
Mar 7, 1994
This administrative order establishes the rules for correcting and canceling Emancipation Patents and Certificates of Land Ownership Award due to violations by agrarian reform beneficiaries, including misuse, neglect, and illegal conversion of agricultural lands.
emancipation patent
certificate of
landownership

Legal basis and controlling references

  • The policy and jurisdictional framework are anchored on Presidential Decree No. 27, Executive Order No. 228, and Republic Act No. 6657.
  • Section 12 (g) of Presidential Decree No. 946 grants the Court of Agrarian Reform original and exclusive jurisdiction over annulments of decisions or lease contracts and deeds of sale, and the cancellation of amendments of titles pertaining to agricultural lands administered and disposed of by the DAR and the Land Bank of the Philippines (LBP).
  • Jurisdiction under Section 12 (g) of Presidential Decree No. 946 covers Emancipation Patents issued under P.D. 266, homestead patents, free patents, and miscellaneous sales patents to settlers in settlement and resettlement areas administered or disposed by DAR.
  • Section 5 (g) of Executive Order No. 129-A authorizes DAR to issue emancipation patents and to make necessary administrative corrections.
  • The Order implements agrarian-reform rules tied to Republic Act No. 6657, Presidential Decree No. 27, and E.O. No. 228, including rules on restriction of conveyance and consequences of breach.

Policy and adjudicatory control

  • Registered EPs/CLOAs, whether distributed or not, may only be corrected or cancelled by order of the Provincial or Regional Adjudicator with jurisdiction over the property.
  • Corrections or cancellations must be conducted in accordance with the DARAB Rules and Procedures.
  • The Order recognizes specific statutory grounds for cancellation tied to ARB misuse, misrepresentation, illegal conversion, improper conveyance, and payment default.
  • Administrative corrections are recognized for specified record- and identity-related matters, and DARAB decisions may include multiple remedial and enforcement consequences.

Definitions: misuse, neglect, illegal conversion

  • Misuse of the land means any act causing substantial and unreasonable damage to the land and causing deterioration and depletion of soil fertility and improvements thereon.
  • Misuse of the land also includes knowingly planting, growing, raising, or permitting planting, growing, or raising any plant that is the source of a dangerous drug as defined in P.D. No. 1683 (as amended).
  • Neglect or abandonment means the willful failure of the ARB, together with his farm household, to cultivate, till, or develop the land to produce any crop, or to use the land for any specific economic purpose continuously for two (2) calendar years.
  • Illegal conversion means changing or shifting the use of the land from agricultural to non-agricultural purposes without the clearance of DAR.

Scope, coverage, and time periods

  • These rules apply to Registered CLOAs from the time and date of issuance by DAR up to the tenth year, when the legal restriction on conveyance or alienation by the ARB ends under Section 27 of Republic Act No. 6657.
  • If the ARB has not fully paid the cost of the land, or has not fulfilled obligations pertaining to the land in the case of public lands, then these rules continue to apply beyond the tenth year from the date of issuance.
  • If the land was acquired under P.D. No. 27 or E.O. No. 228, ownership may be transferred after full payment of amortization by the ARB.
  • Where applicable, the rules also cover patents, EPs, and CLOAs issued to settlers in resettlement areas under DAR’s administration or disposition.
  • In appropriate cases, the rules apply to registered/unregistered EPs and CLOAs as to correction/cancellation due to unlawful acts and omissions or breach of ARB obligations.

Grounds for correction and cancellation

  • Misuse or diversion of financial and support services extended to the ARB is a ground for cancellation under Section 37 of R.A. No. 6657.
  • Misuse of the land is a ground for cancellation under Section 22 of R.A. No. 6657.
  • Material misrepresentation by the ARB of basic qualifications required under Section 22 of R.A. No. 6657, P.D. No. 27, and other agrarian laws is a ground for cancellation.
  • Illegal conversion by the ARB is a ground for cancellation (with reference to Section 73, paragraphs C and E of R.A. No. 6657).
  • Cancellation may be grounded on sale, transfer, lease, or other conveyance by a beneficiary of the right to use or any usufructuary right over land acquired as a beneficiary to circumvent Section 73 of R.A. No. 6657, P.D. No. 27, and other agrarian laws.
  • Where land was acquired under P.D. No. 27/E.O. No. 228, cancellation rules recognize that ownership may be transferred after full payment of amortization by the beneficiary.
  • Default in the obligation to pay an aggregate of three (3) consecutive amortizations in a voluntary land transfer/direct payment scheme is a ground for cancellation, subject to exceptions for fortuitous events and force majeure.
  • Failure of ARBs to pay at least three (3) annual amortizations to the LBP is a ground for cancellation, subject to exceptions for fortuitous events and force majeure.
  • Neglect or abandonment of the awarded land continuously for two (2) calendar years—as determined by the Secretary or an authorized representative—is a ground for cancellation.
  • Cancellation is grounded when the land is found (by the Secretary or authorized representative) to be exempt/excluded from P.D. No. 27/E.O. No. 228 or CARP coverage, or part of the landowner’s retained area.
  • The Order also recognizes grounds intended to circumvent laws related to the implementation of agrarian reform program.

Administrative corrections and DARAB remedies

  • Administrative corrections may include non-identification of spouse, corrections of civil status, corrections of technical descriptions, and other matters related to agrarian reform.
  • A DARAB decision may include cancellation of the registered EP/CLOA.
  • A DARAB decision may order reimbursement of lease rental as amortization to ARBs.
  • A DARAB decision may order forfeiture of amortization.
  • A DARAB decision may order ejectment of the ARB.
  • A DARAB decision may order reallocation of the land to qualified beneficiary.
  • A DARAB decision may impose perpetual disqualification to become an ARB.
  • A DARAB decision may order reimbursements of amortization payment and value of improvements, and other ancillary matters related to the cancellation.

Transitory implementation and administrative exhaustion

  • Implementation of these rules is governed by procedures adopted by the DAR Adjudication Board.
  • The DAR Adjudication Board procedures must include designating a nominal party.
  • The DAR Adjudication Board procedures must incorporate the concept of exhaustion of administrative remedies for appropriate disputes.

Effectivity and repeals

  • The Order takes effect ten (10) days after publication in two national newspapers of general circulations pursuant to Section 49 of R.A. No. 6657.
  • All Orders, Circulars, Memoranda, and Rules and Regulations inconsistent with the Order are revoked, cancelled, or modified accordingly.

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