Subdivision Plan Approval for Agricultural Lands

Section 4 of Republic Act No. 6657 requires coverage under the Comprehensive Agrarian Reform Program (CARP) of all private lands devoted to or suitable for agricultural purposes.
Sections 6, 70, and 73(a) of Republic Act No. 6657 limit the retention right and landownership ceiling over agricultural lands by any person, natural or judicial, to not more than five (5) hectares upon the effectivity of the Act on June 1988.
Agricultural lands in excess of the five (5)-hectare retention limit or landownership ceiling are covered under CARP by operation and mandate of law effective 15 June 1988.
Section 40 of DAR Administrative Order No. 7, Series of 2011 establishes the DAR clearance on land transactions framework relevant to subdivision attempts that circumvent CARP coverage.

The circular issues rules and procedures to preclude possible circumvention of CARP and violation of agrarian reform provisions through subdivision into smaller lots intended for sale.
The circular makes CARP coverage verification a prerequisite step where subdivision approvals present risks of bypassing CARP compliance.

Section 1 applies these rules to all applications for approval of subdivision plans submitted to the LRA, if the subject properties are agricultural lands, particularly:
- All titled agricultural lands listed in the CARPER LAD database; and
- Agricultural properties classified as agricultural in the Tax Declaration in excess of five (5) hectares.
The requirement is triggered when the application for approval of subdivision plan falls within the instances listed in Section 1 (Section 2).

Where the application falls within Section 1, the LRA through its Subdivision & Consolidation Division must require CARP coverage documentation.
Within fifteen (15) days from receipt of the application, the LRA must require the applicant or the concerned geodetic engineer to secure a Certification from the Provincial Agrarian Reform Officer (PARO).
The PARO Certification must state that the land(s) subject of application, after thorough validation, is/are covered under CARP.
If validation is negative, the PARO must issue a Certification stating that the PARO interposes no objection to the application for subdivision.
The PARO must issue the Certification within five (5) days from:
- the final validation of the PARO’s office’s records and documents; or
- submission of the findings and recommendations embodied in the Investigation Report of the DARPO Office or Unit concerned (Section 2).

As a general rule, the LRA through its Subdivision & Consolidation Division must approve the subdivision-plan application when the application complies with existing provisions of law, rules, and regulations and when it does not fall under any instances enumerated in Section 1 (Section 3).
If the PARO certifies that the subject landholding(s) is/are covered under CARP and the PARO interposes objection to the application, the LRA may deny the application (Section 3).
Denial may be subject to reconsideration upon in-depth determination on the merits and upon submission by the applicant of proofs or evidence to the contrary, with the DAR Provincial Office given an opportunity to be heard or to rebut (Section 3).
If the PARO certifies that the subject landholding(s) is/are not covered under CARP and the PARO does not interpose any objection, the application may be approved pursuant to existing provisions of law, rules, and regulations (Section 3).

At the end of each month, all PAROs must submit to the LRA-CARP and to the DAR-Bureau of Land Development (DAR-BLD) a list of certificates issued pursuant to the circular.
The monthly submission must include a list of:
- Certificate of CARP coverage (CCC); or
- Certificate of Non-CARP Coverage (CNCC) (Section 4).

Section 5 repeals, modifies, and/or amends inconsistent issuances, including:
- DAR Administrative Order (A.O.) No. 1, Series of 1989 (Rules and Procedures Governing Land Transactions);
- Joint DAR-LRA Memorandum Circular No. 09, Series of 1996 [Adoption of a Joint DAR-LRA Operations Manual on Land Titling, Registration, and Distribution Under the Comprehensive Agrarian Reform Program (CARP)];
- and any other administrative orders, memorandum circulars, and issuances inconsistent with this circular.
Section 6 provides separability: any judicial pronouncement declaring any provision of the circular unconstitutional has no effect on the validity of the other provisions not affected by the ruling.

The circular incorporates the DAR clearance on land transactions principles under Section 40 of DAR Administrative Order No. 7, Series of 2011, including requirements for validity and registration depending on whether transfers occur before or after 15 June 1988.
For transactions executed prior to 15 June 1988, they are valid only if registered with the Registry of Deeds on or before 13 September 1988 in accordance with Section 6 of Republic Act No. 6657.
For transfers executed on or after 15 June 1988, a transfer involving a total area of five (5) hectares and below that is the retention area or subject of retention by the transferor may be legal and proper, but a DAR clearance is still required for monitoring and as a prerequisite for registering title in the name of the transferee with the ROD.
Where more than five (5) hectares is sold or transferred for cases involving persons who have yet to exercise retention rights, only the first five (5) hectares sold/conveyed and the corresponding titles issued in the name of the transferee are treated as valid based on retention rules, while the excess beyond five (5) hectares is covered under CARP, regardless of the current titleholder.
Any landholding still registered in the name of the Landowner (LO) after earlier dispositions up to an aggregate of five (5) hectares is no longer part of the LO’s retention area and is covered under CARP.