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Agrarian Laws Compilation
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REPUBLIC ACT No. 3844
AN ACT TO ORDAIN THE AGRICULTURAL LAND REFORM CODE AND TO INSTITUTE LAND REFORMS IN THE
PHILIPPINES, INCLUDING THE ABOLITION OF TENANCY AND THE CHANNELING OF CAPITAL INTO INDUSTRY,
PROVIDE FOR THE NECESSARY IMPLEMENTING AGENCIES, APPROPRIATE FUNDS THEREFOR AND FOR OTHER
PURPOSES
PRELIMINARY CHAPTER
TITLE
DECLARATION OF POLICY AND COMPOSITION OF CODE
Section 1. Title - This Act shall be known as the Agricultural Land Reform Code.
Section 2. Declaration of Policy - It is the policy of the State:
(1) To establish owner-cultivatorship and the economic family-size farm as the basis of Philippine agriculture and, as a
consequence, divert landlord capital in agriculture to industrial development;
(2) To achieve a dignified existence for the small farmers free from pernicious institutional restraints and practices;
(3) To create a truly viable social and economic structure in agriculture conducive to greater productivity and higher farm
incomes;
(4) To apply all labor laws equally and without discrimination to both industrial and agricultural wage earners;
(5) To provide a more vigorous and systematic land resettlement program and public land distribution; and
(6) To make the small farmers more independent, self-reliant and responsible citizens, and a source of genuine strength in
our democratic society.
Section 3. Composition of Code - In pursuance of the policy enunciated in Section two, the following are established under this
Code:
(1) An agricultural leasehold system to replace all existing share tenancy systems in agriculture;
(2) A declaration of rights for agricultural labor;
(3) An authority for the acquisition and equitable distribution of agricultural land;
(4) An institution to finance the acquisition and distribution of agricultural land;
(5) A machinery to extend credit and similar assistance to agriculture;
(6) A machinery to provide marketing, management, and other technical services to agriculture;
(7) A unified administration for formulating and implementing projects of land reform;
(8) An expanded program of land capability survey, classification, and registration; and
(9) A judicial system to decide issues arising under this Code and other related laws and regulations.
CHAPTER I
AGRICULTURAL LEASEHOLD SYSTEM
Section 4. Abolition of Agricultural Share Tenancy - Agricultural share tenancy, as herein defined, is hereby declared to be
contrary to public policy and shall be abolished: Provided, That existing share tenancy contracts may continue in force and effect
in any region or locality, to be governed in the meantime by the pertinent provisions of Republic Act Numbered Eleven hundred
and ninety-nine, as amended, until the end of the agricultural year when the National Land Reform Council proclaims that all the
government machineries and agencies in that region or locality relating to leasehold envisioned in this Code are operating, unless
such contracts provide for a shorter period or the tenant sooner exercise his option to elect the leasehold system: Provided,
further, That in order not to jeopardize international commitments, lands devoted to crops covered by marketing allotments shall
be made the subject of a separate proclamation that adequate provisions, such as the organization of cooperatives, marketing
agreements, or other similar workable arrangements, have been made to insure efficient management on all matters requiring
synchronization of the agricultural with the processing phases of such crops: Provided, furthermore, That where the agricultural
share tenancy contract has ceased to be operative by virtue of this Code, or where such a tenancy contract has been entered into
in violation of the provisions of this Code and is, therefore, null and void, and the tenant continues in possession of the land for
cultivation, there shall be presumed to exist a leasehold relationship under the provisions of this Code, without prejudice to the
right of the landowner and the former tenant to enter into any other lawful contract in relation to the land formerly under tenancy
contract, as long as in the interim the security of tenure of the former tenant under Republic Act Numbered Eleven hundred and
ninety-nine, as amended, and as provided in this Code, is not impaired: Provided, finally, That if a lawful leasehold tenancy
contract was entered into prior to the effectivity of this Code, the rights and obligations arising therefrom shall continue to subsist
until modified by the parties in accordance with the provisions of this Code.
Section 5. Establishment of Agricultural Leasehold Relation - The agricultural leasehold relation shall be established by operation
of law in accordance with Section four of this Code and, in other cases, either orally or in writing, expressly or impliedly.
Section 6. Parties to Agricultural Leasehold Relation - The agricultural leasehold relation shall be limited to the person who
furnishes the landholding, either as owner, civil law lessee, usufructuary, or legal possessor, and the person who personally
cultivates the same.
Section 7. Tenure of Agricultural Leasehold Relation - The agricultural leasehold relation once established shall confer upon the
agricultural lessee the right to continue working on the landholding until such leasehold relation is extinguished. The agricultural
lessee shall be entitled to security of tenure on his landholding and cannot be ejected therefrom unless authorized by the Court for
causes herein provided.
Section 8. Extinguishment of Agricultural Leasehold Relation - The agricultural leasehold relation established under this Code
shall be extinguished by:
(1) Abandonment of the landholding without the knowledge of the agricultural lessor;
(2) Voluntary surrender of the landholding by the agricultural lessee, written notice of which shall be served three months in
advance; or
(3) Absence of the persons under Section nine to succeed to the lessee, in the event of death or permanent incapacity of the
lessee.
Section 9. Agricultural Leasehold Relation Not Extinguished by Death or Incapacity of the Parties - In case of death or permanent
incapacity of the agricultural lessee to work his landholding, the leasehold shall continue between the agricultural lessor and the
person who can cultivate the landholding personally, chosen by the agricultural lessor within one month from such death or
permanent incapacity, from among the following: (a) the surviving spouse; (b) the eldest direct descendant by consanguinity; or (c)
the next eldest descendant or descendants in the order of their age: Provided, That in case the death or permanent incapacity of
the agricultural lessee occurs during the agricultural year, such choice shall be exercised at the end of that agricultural year:
Provided, further, That in the event the agricultural lessor fails to exercise his choice within the periods herein provided, the priority
shall be in accordance with the order herein established.
In case of death or permanent incapacity of the agricultural lessor, the leasehold shall bind his legal heirs.
Section 10. Agricultural Leasehold Relation Not Extinguished by Expiration of Period, etc. - The agricultural leasehold relation
under this Code shall not be extinguished by mere expiration of the term or period in a leasehold contract nor by the sale,
alienation or transfer of the legal possession of the landholding. In case the agricultural lessor sells, alienates or transfers the legal
possession of the landholding, the purchaser or transferee thereof shall be subrogated to the rights and substituted to the
obligations of the agricultural lessor.
Section 11. Lessee's Right of Pre-emption - In case the agricultural lessor decides to sell the landholding, the agricultural lessee
shall have the preferential right to buy the same under reasonable terms and conditions: Provided, That the entire landholding
offered for sale must be pre-empted by the Land Authority if the landowner so desires, unless the majority of the lessees object to
such acquisition: Provided, further, That where there are two or more agricultural lessees, each shall be entitled to said
preferential right only to the extent of the area actually cultivated by him. The right of pre-emption under this Section may be
exercised within ninety days from notice in writing which shall be served by the owner on all lessees affected.
Section 12. Lessee's Right of Redemption - In case the landholding is sold to a third person without the knowledge of the
agricultural lessee, the latter shall have the right to redeem the same at a reasonable price and consideration: Provided, That the
entire landholding sold must be redeemed: Provided, further, That where these are two or more agricultural lessees, each shall be
entitled to said right of redemption only to the extent of the area actually cultivated by him. The right of redemption under this
Section may be exercised within two years from the registration of the sale, and shall have priority over any other right of legal
redemption.
Section 13. Affidavit Required in Sale of Land Subject to Right of Pre-emption - No deed of sale of agricultural land under
cultivation by an agricultural lessee or lessees shall be recorded in the Registry of Property unless accompanied by an affidavit of
the vendor that he has given the written notice required in Section eleven of this Chapter or that the land is not worked by an
agricultural lessee.
Section 14. Right of Pre-emption and Redemption Not Applicable to Land to be Converted into Residential, Industrial and Similar
Purposes - The right of pre-emption and redemption granted under Sections eleven and twelve of this Chapter cannot be
exercised over landholdings suitably located which the owner bought or holds for conversion into residential, commercial,
industrial or other similar non-agricultural purposes: Provided, however, That the conversion be in good faith and is substantially
carried out within one year from the date of sale. Should the owner fail to comply with the above condition, the agricultural lessee
shall have the right to repurchase under reasonable terms and conditions said landholding from said owner within one year after
the aforementioned period for conversion has expired: Provided, however, That the tenure of one year shall cease to run from the
time the agricultural lessee petitions the Land Authority to acquire the land under the provisions of paragraph 11 of Section fifty-
one.
Section 15. Agricultural Leasehold Contract in General - The agricultural lessor and the agricultural lessee shall be free to enter
into any kind of terms, conditions or stipulations in a leasehold contract, as long as they are not contrary to law, morals or public
policy. A term, condition or stipulation in an agricultural leasehold contract is considered contrary to law, morals or public policy:
(1) If the agricultural lessee is required to pay a rental in excess of that which is hereinafter provided for in this Chapter;
(2) If the agricultural lessee is required to pay a consideration in excess of the fair rental value as defined herein, for the use
of work animals and/or farm implements belonging to the agricultural lessor or to any other person; or
(3) If it is imposed as a condition in the agricultural leasehold contract: (a) that the agricultural lessee is required to rent work
animals or to hire farm implements from the agricultural lessor or a third person, or to make use of any store or services
operated by the agricultural lessor or a third person; or (b) that the agricultural lessee is required to perform any work or
render any service other than his duties and obligations provided in this Chapter with or without compensation; or (c) that the
agricultural lessee is required to answer for any fine, deductions and/or assessments.
Any contract by which the agricultural lessee is required to accept a loan or to make payment therefor in kind shall also be
contrary to law, morals or public policy.
Section 16. Nature and Continuity of Conditions of Leasehold Contract - In the absence of any agreement as to the period, the
terms and conditions of a leasehold contract shall continue until modified by the parties: Provided, That in no case shall any
modification of its terms and conditions prejudice the right of the agricultural lessee to the security of his tenure on the landholding:
Provided, further, That in case of a contract with a period an agricultural lessor may not, upon the expiration of the period increase
the rental except in accordance with the provisions of Section thirty-four.
Section 17. Form and Registration of Contract - Should the parties decide to reduce their agreement into writing, the agricultural
leasehold contract shall be drawn in quadruplicate in a language or dialect known to the agricultural lessee and signed or thumb-
marked both by the agricultural lessee personally and by the agricultural lessor or his authorized representative, before two
witnesses, to be chosen by each party. If the agricultural lessee does not know how to read, the contents of the document shall be
read and explained to him by his witness. The contracting parties shall acknowledge the execution of the contract before the
justice of the peace of the municipality where the land is situated. No fees or stamps of any kind shall be required in the
preparation and acknowledgment of the instrument. Each of the contracting parties shall retain a copy of the contract. The justice
of the peace shall cause the third copy to be delivered to the municipal treasurer of the municipality where the land is located and
the fourth copy to the Office of the Agrarian Counsel.
Except in case of mistake, violence, intimidation, undue influence, or fraud, an agricultural contract reduced in writing and
registered as hereinafter provided, shall be conclusive between the contracting parties, if not denounced or impugned within thirty
days after its registration.
Section 18. Registration of Leasehold Contract - The municipal treasurer shall, upon receipt of his copy of the contract, require
the agricultural lessee and agricultural lessor to present their respective copies of the contract, and shall cause to be annotated
thereon the date, time and place of registration as well as its entry or registration number.
Section 19. Registry of Agricultural Leasehold Contracts - The Municipal Treasurer of the municipality wherein the land is situated
shall keep a record of all such contracts drawn and executed within his jurisdiction, to be known as "Registry of Agricultural
Leasehold Contracts". He shall keep this registry together with a copy of each contract entered therein, and make annotations on
said registry of all subsequent acts relative to each contract, such as its renewal, novation, cancellation, etc. No registration fees
or documentary stamps shall be required in the registration of said contracts or of any subsequent acts relative thereto.
Section 20. Memorandum of Loans - No obligation to pay money on account of loans including interest thereon obtained by the
agricultural lessee from the agricultural lessor or his representative shall be enforceable unless the same or a memorandum
thereof be in writing in a language or dialect known to the agricultural lessee, and signed or thumb-marked by him, or by his agent.
Section 21. Exemption from Lien and/or Execution - The following shall be exempt from lien and/or execution against the
agricultural lessee:
(1) Twenty-five per centum of the entire produce of the land under cultivation; and
(2) Work animals and farm implements belonging to the agricultural lessee: Provided, That their value does not exceed one
thousand pesos. But no article or species of property mentioned in this Section shall be exempt from execution issued upon
a judgment recovered for its price or upon a judgment of foreclosure of a mortgage thereon.
Section 22. Use of Accepted Standards of Weights and Measures - In all transactions entered into between the agricultural
lessee and the agricultural lessor concerning agricultural products the official or, upon agreement of the parties, the accepted
standards of weights and measures shall be used.
Section 23. Rights of Agricultural Lessee in General - It shall be the right of the agricultural lessee:
(1) To have possession and peaceful enjoyment of the land;
(2) To manage and work on the land in a manner and method of cultivation and harvest which conform to proven farm
practices;
(3) To mechanize all or any phase of his farm work; and
(4) To deal with millers and processors and attend to the issuance of quedans and warehouse receipts for the produce due
him.
Section 24. Right to a Home Lot - The agricultural lessee shall have the right to continue in the exclusive possession and
enjoyment of any home lot he may have occupied upon the effectivity of this Code, which shall be considered as included in the
leasehold.
Section 25. Right to be Indemnified for Labor - The agricultural lessee shall have the right to be indemnified for the cost and
expenses incurred in the cultivation, planting or harvesting and other expenses incidental to the improvement of his crop in case
he surrenders or abandons his landholding for just cause or is ejected therefrom. In addition, he has the right to be indemnified for
one-half of the necessary and useful improvements made by him on the landholding: Provided, That these improvements are
tangible and have not yet lost their utility at the time of surrender and/or abandonment of the landholding, at which time their value
shall be determined for the purpose of the indemnity for improvements.
Section 26. Obligations of the Lessee - It shall be the obligation of the agricultural lessee:
(1) To cultivate and take care of the farm, growing crops, and other improvements on the landholding as a good father of a
family and perform all the work therein in accordance with proven farm practices;
(2) To inform the agricultural lessor within a reasonable time of any trespass committed by third persons upon the farm,
without prejudice to his direct action against the trespasser;
(3) To take reasonable care of the work animals and farm implements delivered to him by the agricultural lessor and see that
they are not used for purposes other than those intended or used by another without the knowledge and consent of the
agricultural lessor: Provided, however, That if said work animals get lost or die, or said farm implements get lost or are
destroyed, through the negligence of the agricultural lessee, he shall be held responsible and made answerable therefor to
the extent of the value of the work animals and/or farm implements at the time of the loss, death or destruction;
(4) To keep his farm and growing crops attended to during the work season. In case of unjustified abandonment or neglect of
his farm, any or all of his expected produce may, upon order of the Court, be forfeited in favor of the agricultural lessor to the
extent of the damage caused thereby;
(5) To notify the agricultural lessor at least three days before the date of harvesting or, whenever applicable, of threshing;
and
(6) To pay the lease rental to the agricultural lessor when it falls due.
Section 27. Prohibitions to Agricultural Lessee - It shall be unlawful for the agricultural lessee:
(1) To contract to work additional landholdings belonging to a different agricultural lessor or to acquire and personally
cultivate an economic family-size farm, without the knowledge and consent of the agricultural lessor with whom he had
entered first into household, if the first landholding is of sufficient size to make him and the members of his immediate farm
household fully occupied in its cultivation; or
(2) To employ a sub-lessee on his landholding: Provided, however, That in case of illness or temporary incapacity he may
employ laborers whose services on his landholding shall be on his account.
Section 28. Termination of Leasehold by Agricultural Lessee During Agricultural Year - The agricultural lessee may terminate the
leasehold during the agricultural year for any of the following causes:
(1) Cruel, inhuman or offensive, treatment of the agricultural lessee or any member of his immediate farm household by the
agricultural lessor or his representative with the knowledge and consent of the lessor;
(2) Non-compliance on the part of the agricultural lessor with any of the obligations imposed upon him by the provisions of
this Code or by his contact with the agricultural lessee;
(3) Compulsion of the agricultural lessee or any member of his immediate farm household by the agricultural lessor to do any
work or render any service not in any way connected with farm work or even without compulsion if no compensation is paid;
(4) Commission of a crime by the agricultural lessor or his representative against the agricultural lessee or any member of
his immediate farm household; or
(5) Voluntary surrender due to circumstances more advantageous to him and his family.
Section 29. Rights of the Agricultural Lessor - It shall be the right of the agricultural lessor:
(1) To inspect and observe the extent of compliance with the terms and conditions of their contract and the provisions of this
Chapter;
(2) To propose a change in the use of the landholding to other agricultural purposes, or in the kind of crops to be planted:
Provided, That in case of disagreement as to the proposed change, the same shall be settled by the Court according to the
best interest of the parties concerned: Provided, further, That in no case shall an agricultural lessee be ejected as a
consequence of the conversion of the land to some other agricultural purpose or because of a change in the crop to be
planted;
(3) To require the agricultural lessee, taking into consideration his financial capacity and the credit facilities available to him,
to adopt in his farm proven farm practices necessary to the conservation of the land, improvement of its fertility and increase
of its productivity: Provided, That in case of disagreement as to what proven farm practice the lessee shall adopt, the same
shall be settled by the Court according to the best interest of the parties concerned; and
(4) To mortgage expected rentals.
Section 30. Obligations of the Agricultural Lessor - It shall be the obligation of the agricultural lessor:
(1) To keep the agricultural lessee in peaceful possession and cultivation of his landholding; and
(2) To keep intact such permanent useful improvements existing on the landholding at the start of the leasehold relation as
irrigation and drainage system and marketing allotments, which in the case of sugar quotas shall refer both to domestic and
export quotas, provisions of existing laws to the contrary notwithstanding.
Section 31. Prohibitions to the Agricultural Lessor - It shall be unlawful for the agricultural lessor:
(1) To dispossess the agricultural lessee of his landholding except upon authorization by the Court under Section thirty-six.
Should the agricultural lessee be dispossessed of his landholding without authorization from the Court, the agricultural lessor
shall be liable for damages suffered by the agricultural lessee in addition to the fine or imprisonment prescribed in this Code
for unauthorized dispossession;
(2) To require the agricultural lessee to assume, directly or indirectly, the payment of the taxes or part thereof levied by the
government on the landholding;
(3) To require the agricultural lessee to assume, directly or indirectly, any part of the rent, "canon" or other consideration
which the agricultural lessor is under obligation to pay to third persons for the use of the land;
(4) To deal with millers or processors without written authorization of the lessee in cases where the crop has to be sold in
processed form before payment of the rental; or
(5) To discourage, directly or indirectly, the formation, maintenance or growth of unions or organizations of agricultural
lessees in his landholding, or to initiate, dominate, assist or interfere in the formation or administration of any such union or
organization.
Section 32. Cost of Irrigation System - The cost of construction of a permanent irrigation system, including distributory canals,
may be borne exclusively by the agricultural lessor who shall be entitled to an increase in rental proportionate to the resultant
increase in production: Provided, That if the agricultural lessor refuses to bear the expenses of construction the agricultural lessee
or lessees may shoulder the same, in which case the former shall not be entitled to an increase in rental and shall, upon the
termination of the relationship, pay the lessee or his heir the reasonable value of the improvement at the time of the termination:
Provided, further, That if the irrigation system constructed does not work, it shall not be considered as an improvement within the
meaning of this Section.
Section 33. Manner, Time and Place of Rental Payment - The consideration for the lease of the land shall be paid in an amount
certain in money or in produce, or both, payable at the place agreed upon by the parties immediately after threshing or processing
if the consideration is in kind, or within a reasonable time thereafter, if not in kind.
In no case shall the agricultural lessor require the agricultural lessee to file a bond, make a deposit or pay the rental in advance, in
money or in kind or in both, but a special and preferential lien is hereby created in favor of the agricultural lessor over such portion
of the gross harvest necessary for the payment of the rental due in his favor.
Section 34. Consideration for the Lease of Riceland and Lands Devoted to Other Crops - The consideration for the lease of
riceland and lands devoted to other crops shall not be more than the equivalent of twenty-five per centum of the average normal
harvest during the three agricultural years immediately preceding the date the leasehold was established after deducting the
amount used for seeds and the cost of harvesting, threshing, loading, hauling and processing, whichever are applicable: Provided,
That if the land has been cultivated for a period of less than three years, the initial consideration shall be based on the average
normal harvest during the preceding years when the land was actually cultivated, or on the harvest of the first year in the case of
newly-cultivated lands, if that harvest is normal: Provided, further, That after the lapse of the first three normal harvests, the final
consideration shall be based on the average normal harvest during these three preceding agricultural years: Provided,
furthermore, That in the absence of any agreement between the parties as to the rental, the maximum allowed herein shall apply:
Provided, finally, That if capital improvements are introduced on the farm not by the lessee to increase its productivity, the rental
shall be increased proportionately to the consequent increase in production due to said improvements. In case of disagreement,
the Court shall determine the reasonable increase in rental.
Section 35. Exemption from Leasehold of Other Kinds of Lands - Notwithstanding the provisions of the preceding Sections, in the
case of fishponds, saltbeds, and lands principally planted to citrus, coconuts, cacao, coffee, durian, and other similar permanent
trees at the time of the approval of this Code, the consideration, as well as the tenancy system prevailing, shall be governed by
the provisions of Republic Act Numbered Eleven hundred and ninety-nine, as amended.
Section 36. Possession of Landholding; Exceptions - Notwithstanding any agreement as to the period or future surrender, of the
land, an agricultural lessee shall continue in the enjoyment and possession of his landholding except when his dispossession has
been authorized by the Court in a judgment that is final and executory if after due hearing it is shown that:
(1) The agricultural lessor-owner or a member of his immediate family will personally cultivate the landholding or will convert
the landholding, if suitably located, into residential, factory, hospital or school site or other useful non-agricultural purposes:
Provided; That the agricultural lessee shall be entitled to disturbance compensation equivalent to five years rental on his
landholding in addition to his rights under Sections twenty-five and thirty-four, except when the land owned and leased by
the agricultural lessor, is not more than five hectares, in which case instead of disturbance compensation the lessee may be
entitled to an advanced notice of at least one agricultural year before ejectment proceedings are filed against him: Provided,
further, That should the landholder not cultivate the land himself for three years or fail to substantially carry out such
conversion within one year after the dispossession of the tenant, it shall be presumed that he acted in bad faith and the
tenant shall have the right to demand possession of the land and recover damages for any loss incurred by him because of
said dispossessions.
(2) The agricultural lessee failed to substantially comply with any of the terms and conditions of the contract or any of the
provisions of this Code unless his failure is caused by fortuitous event or force majeure;
(3) The agricultural lessee planted crops or used the landholding for a purpose other than what had been previously agreed
upon;
(4) The agricultural lessee failed to adopt proven farm practices as determined under paragraph 3 of Section twenty-nine;
(5) The land or other substantial permanent improvement thereon is substantially damaged or destroyed or has
unreasonably deteriorated through the fault or negligence of the agricultural lessee;
(6) The agricultural lessee does not pay the lease rental when it falls due: Provided, That if the non-payment of the rental
shall be due to crop failure to the extent of seventy-five per centum as a result of a fortuitous event, the non-payment shall
not be a ground for dispossession, although the obligation to pay the rental due that particular crop is not thereby
extinguished; or
(7) The lessee employed a sub-lessee on his landholding in violation of the terms of paragraph 2 of Section twenty-seven.
Section 37. Burden of Proof - The burden of proof to show the existence of a lawful cause for the ejectment of an agricultural
lessee shall rest upon the agricultural lessor.
Section 38. Statute of Limitations - An action to enforce any cause of action under this Code shall be barred if not commenced
within three years after such cause of action accrued.
CHAPTER II
BILL OF RIGHTS FOR AGRICULTURAL LABOR
Section 39. Rights for Agricultural Labor - To enable the farm workers to enjoy the same rights and opportunities in life as
industrial workers, they shall enjoy the following:
(1) Right to self-organization;
(2) Right to engage in concerted activities;
(3) Right to minimum wage;
(4) Right to work for not more than eight hours;
(5) Right to claim for damages for death or injuries sustained while at work;
(6) Right to compensation for personal injuries, death or illness; and
(7) Right against suspension or lay-off.
Section 40. Right to Self-Organization - The farm workers shall have the right to self-organization and to form, join or assist farm
workers' organizations of their own choosing for the purpose of collective bargaining through representatives of their own
choosing: Provided, That this right shall be exercised in a manner as will not unduly interfere with the normal farm operations.
Individuals employed as supervisors shall not be eligible for membership in farm workers' organizations under their supervision
but may form separate organizations of their own.
Section 41. Right to Engage in Concerted Activities - The farm workers shall also have the right to engage in concerted activities
for the purpose of collective bargaining and other mutual aid or protection.
For the purpose of this and the preceding Section, it shall be the duty of the farm employer or manager to allow the farm workers,
labor leaders, organizers, advisers and helpers complete freedom to enter and leave the farm, plantation or compound at the
portion of the same where said farm workers live or stay permanently or temporarily.
Section 42. Right to Minimum Wage - Notwithstanding any provision of law or contract to the contrary, farm workers in farm
enterprises shall be entitled to at least P3.50 a day for eight hours' work: Provided, That this wage may, however, be increased by
the Minimum Wage Board as provided for in Republic Act Numbered Six hundred and two.
Section 43. Right to Eight Hours' Work - Notwithstanding the provision of existing laws to the contrary, farm workers shall not be
required to work for more than eight hours daily. When the work is not continuous, the time during which the farm worker is not
working and can leave his working place and can rest completely shall not be counted.
Work may be performed beyond eight hours a day in case of actual or impending emergencies caused by serious accidents, fire,
flood, typhoon, epidemic, or other disaster or calamity, or in case of urgent work to be performed on farm machines, equipment or
installations in order to avoid a serious loss which the farm employer or manager would otherwise suffer, or some other just cause
of a similar nature, but in all such cases the farm workers shall be entitled to receive compensation for the overtime work
performed at the same rate as their regular wages, plus at least twenty-five per centum additional, based on their daily wages.
No farm employer or manager shall compel a farm worker to work during Sundays and legal holidays: Provided, however, That
should the farm worker agree to work on said days, he shall be paid an additional sum of at least twenty-five per centum of his
regular compensation; Provided, further, That the farm employer or manager shall not be held liable for any claim for overtime
work which he had not previously authorized, except if the work rendered was to avoid damages to crops, produce, work animals
or implements, buildings or the like.
Any agreement or contract between the farm employer or manager and the farm worker contrary to the provisions of this Section
shall be null and void.
Section 44. Right of Action for Damages - Notwithstanding the provisions of existing laws to the contrary, Act Numbered Eighteen
hundred and seventy-four, as amended, entitled "An Act to extend and regulate the responsibility of employers for personal
injuries and death suffered by their employees while at work", shall apply to farm workers insofar as it may be applicable.
Section 45. Right to Compensation for Personal Injuries, Death, or Illness - Notwithstanding the provisions of existing laws to the
contrary, Act Numbered Thirty-four hundred and twenty-eight, as amended, entitled "An Act prescribing the compensation to be
received by employees for personal injuries, death or illness contracted in the performance of their duties", shall apply to farm
workers insofar as it may be applicable.
Section 46. Right Against Suspension of Lay-off - The landowner, farm employer or farm manager shall not suspend, lay-off or
dismiss any farm worker without just cause from the time a farm workers' organization or group of farm workers has presented to
the landowner a petition or complaint regarding any matter likely to cause a strike or lockout and a copy thereof furnished with the
Department of Labor, or while an agricultural dispute is pending before the Court of Agrarian Relations. If it is proved during the
said period that a worker has been suspended or dismissed without just cause, the Court may direct the reinstatement and the
payment of his wage during the time of his suspension or dismissal or of any sum he should have received had he not been
suspended or dismissed, without prejudice to any criminal liability of the landowner, farm employer or farm manager as prescribed
by Section twenty-four of Commonwealth Act Numbered One hundred and three, as amended.
Section 47. Other Applicable Provisions - All other existing laws applicable to non-agricultural workers in private enterprises which
are not inconsistent with this Code shall likewise apply to farm workers, farm labor organizations and agrarian disputes as defined
in this Code, as well as to relations between farm management and farm labor and the functions of the Department of Labor and
other agencies.
Section 48. Exceptions to Preceding Section - The preceding Sections of this Chapter, except Sections forty, forty-one, forty-two
and forty-three shall not apply to farm enterprises comprising not more than twelve hectares.
CHAPTER III
LAND AUTHORITY
ARTICLE I
Organization and Functions of the Land Authority
Section 49. Creation of the Land Authority - For the purpose of carrying out the policy of establishing owner-cultivatorship and the
economic family-size farm as the basis of Philippine agriculture and other policies enunciated in this Code, there is hereby created
a Land Authority, hereinafter called the Authority, which shall be directly under the control and supervision of the President of the
Philippines. The Authority shall be headed by a Governor who shall be appointed by the President with the consent of the
Commission on Appointments.
He shall be assisted by two Deputy Governors who shall be appointed by the President with the consent of the Commission on
Appointments, each of whom shall head such operating departments as may be set up by the Governor. The Governor and the
Deputy Governors shall hold office for five years.
Section 50. Qualifications and Compensation of Governors - No person shall be appointed Governor or Deputy Governor of the
Authority unless he is a natural-born citizen of the Philippines, with adequate background and experience in land reform here
and/or elsewhere, and at least thirty-five years of age.
The Governor shall receive an annual compensation of twenty-four thousand pesos; the Deputy Governors shall each receive an
annual compensation of eighteen thousand pesos.
Section 51. Powers and Functions - It shall be the responsibility of the Authority:
(1) To initiate and prosecute expropriation proceedings for the acquisition of private agricultural lands as defined in Section
one hundred sixty-six of Chapter XI of this Code for the purpose of subdivision into economic family-size farm units and
resale of said farm units to bona fide tenants, occupants and qualified farmers: Provided, That the powers herein granted
shall apply only to private agricultural lands subject to the terms and conditions and order of priority hereinbelow specified:
a. all idle or abandoned private agricultural lands, except those held or purchased within one year from the approval of
this Code by private individuals or corporations for the purpose of resale and subdivision into economic family-size farm
units in accordance with the policies enunciated in this Code: Provided, That the subdivision and resale shall be
substantially carried out within one year from the approval of this Code;
b. all private agricultural lands suitable for subdivision into economic family-size farm units, owned by private
individuals or corporations worked by lessees, no substantial portion of whose landholding in relation to the area
sought to be expropriated, is planted to permanent crops under labor administration, in excess of seventy-five hectares
except all private agricultural lands under labor administration and lands acquired under Section seventy-one of this
Code; and
c. in expropriating private agricultural lands declared by the National Land Reform Council or by the Land Authority
within a land reform district to be necessary for the implementation of the provisions of this Code, the following order of
priority shall be observed:
1. idle or abandoned lands;
2. those whose area exceeds 1,024 hectares;
3. those whose area exceeds 500 hectares but is not more than 1,024 hectares;
4. those whose area exceeds 144 hectares but is not more than 500 hectares; and
5. those whose area exceeds 75 hectares but is not more than 144 hectares.
(2) To help bona fide farmers without lands or agricultural owner-cultivators of uneconomic-size farms to acquire and own
economic family-size farm units;
(3) To administer and dispose of agricultural lands of the public domain under the custody and administration of the National
Resettlement and Rehabilitation Administration prior to the approval of this Code and such other public agricultural lands as
may hereafter be reserved by the President of the Philippines for resettlement and sale, in accordance with such terms and
conditions as are set forth under this Chapter: Provided, That the exercise of the authority granted herein, as well as in the
preceding sub-paragraph, shall not contravene public policy on the permanency of forest reserves or other laws intended for
the preservation and conservation of public forests;
(4) To develop plans and initiate actions for the systematic opening of alienable and disposable lands of the public domain
for speedy, distribution to and development by deserving and qualified persons or corporations;
(5) To recommend to the President, from time to time after previous consultation with the Secretary of Agriculture and
Natural Resources, what portion of the alienable or disposable public lands shall be reserved for settlement or disposition
under this chapter;
(6) To give economic family-size farms to landless citizens of the Philippines =who need, deserve, and are capable of
cultivating the land personally, through organized resettlement, under the terms and conditions the Authority may prescribe,
giving priority to qualified and deserving farmers in the province where such lands are located;
(7) To reclaim swamps and marshes, obtain titles thereto whenever feasible and subdivide them into economic family-size
farms for distribution to deserving and qualified farmers;
(8) To undertake measures which will insure the early issuance of titles to persons or corporations who have actually settled
and cultivated disposable alienable lands of the public domain;
(9) To survey, subdivide and set aside lands or areas of landholdings under its administration for economic family-size farms,
large-scale farm operations, town sites, roads, parks, government centers and other civic improvements as circumstances
may warrant and to submit subdivision survey plans conducted either by the government or private surveyors on parcels of
lands under its administration for verification and approval either by the Director of Lands or by the Land Registration
Commission;
(10) To inform the Agricultural Productivity Commission and the Office of the Agrarian Counsel of the problems of settlers
and farmers on lands under its administration;
(11) To acquire for agricultural lessees exercising their right of pre-emption under Chapter I of this Code, any landholdings
mentioned thereunder;
(12) To conduct land capability survey and classification of the entire country and print maps;
(13) To make such arrangements with the Land Bank with respect to titles of agricultural lands of the public domain under its
administration as will be necessary to carry out the objectives of this Code;
(14) To expropriate home lots occupied by agricultural lessees outside their landholdings for resale at cost to said
agricultural lessees; and
(15) To submit to the President of the Philippines and to both Houses of Congress through their presiding officers, to the
Secretary of Finance and to the Auditor General within sixty days of the close of the fiscal year, an annual report showing its
accomplishments during the year; the expropriation proceedings it has undertaken; the expenditures it has incurred and
other financial transactions undertaken with respect thereto.
Section 52. Appointment of Subordinate Officials and Employees - The Governor shall organize the personnel in such
departments, divisions and sections of the Authority as will insure their maximum efficiency. He shall appoint, subject to civil
service rules and regulations, fix the compensation, subject to WAPCO rules and regulations, and determine the duties of
subordinate officials and employees as the exigencies of the service may require.
ARTICLE II
Expropriation of Private Agricultural Lands
Section 53. Compulsory Purchase of Agricultural Lands - The Authority shall, upon petition in writing of at least one-third of the
lessees and subject to the provisions of Chapter VII of this Code, institute and prosecute expropriation proceedings for the
acquisition of private agricultural lands and home lots enumerated under Section fifty-one. In the event a landowner agrees to sell
his property under the terms specified in this Chapter and the National Land Reform Council finds it suitable and necessary to
acquire such property, a joint motion embodying the agreement, including the valuation of the property, shall be submitted by the
Land Authority and the land-owner to the Court for approval: Provided, That in such case, any person qualified to be a beneficiary
of such expropriation or purchase may object to the valuation as excessive, in which case the Court shall determine the just
compensation in accordance with Section fifty-six of this Code.
Section 54. Possession of the Land; Procedure - The Authority, after commencing the expropriation suit, may take immediate
possession of the land upon deposit with the Court that has acquired jurisdiction over the expropriation proceedings in accordance
with the Rules of Court, of money, and bonds of the Land Bank, in accordance with the proportions provided for under Section
eighty of this Code, equal to the value as determined by the Court in accordance with the provisions of Section fifty-six hereof.
Section 55. Expeditious Survey and Subdivision - Immediately after the Authority takes possession of lands to be acquired by it
under this Code, it shall undertake a subdivision survey of the land into economic family-size farms which shall be immediately
assigned to beneficiaries selected in accordance with Section one hundred and twenty-eight subject to such rules and regulations
as it may prescribe.
Section 56. Just Compensation - In determining the just compensation of the land to be expropriated pursuant to this Chapter, the
Court, in land under leasehold, shall consider as a basis, without prejudice to considering other factors also, the annual lease
rental income authorized by law capitalized at the rate of six per centum per annum.
The owner of the land expropriated shall be paid in accordance with Section eighty of this Act by the Land Bank and pursuant to
an arrangement herein authorized.
Section 57. Duty of Court in Expropriation Proceedings - In expropriation proceedings, it shall be the duty of the Court to include
in its resolution or order of expropriation a provision that the Land Authority shall, after taking possession of the land and after the
subdivision thereof, allow the Land Bank to have the title thereto for the purpose of paying the owner the just compensation
therefor.
Section 58. Issuance of Certificates of Title for Parcel or Lot - After the payment of just compensation on the land expropriated the
Land Bank shall cause the issuance of separate certificates of titles for each parcel or lot in accordance with the subdivision
survey made under Section fifty-five.
Section 59. Prohibition Against Alienation and Ejectment - Upon the filing of the petition referred to in Section fifty-three the
landowner may not alienate any portion of the land covered by such petition except in pursuance of the provisions of this Code, or
enter into any form of contract to defeat the purposes of this Code, and no ejectment proceedings against any lessee or occupant
of the land covered by the petition shall be instituted or prosecuted until it becomes certain that the land shall not be acquired by
the Authority.
Section 60. Disposition of Expropriated Land - After separate certificates of titles have been issued in accordance with Section
fifty-eight, the Land Authority, on behalf of the Republic of the Philippines and in representation of the Land Bank as the financing
agency, shall allot and sell each parcel or lot to a qualified beneficiary selected under Section fifty-five of this Code, subject to
uniform terms and conditions imposed by the Land Bank: Provided, That the resale shall be at cost which shall mean the
purchase price not more than six per centum per annum, which shall cover administrative expenses, and actual expenses for
subdivision, surveying, and registration: Provided, further, That such cost shall be paid on the basis of an amortization plan not
exceeding twenty-five years at the option of the beneficiary.
In case some agricultural lessees working portions of agricultural lands acquired by the government under this Code prefer to
remain as lessees thereof, which preference shall be expressed in writing and attested by a representative of the Office of
Agrarian Counsel, the resale and redistribution to them shall be deferred until such time that such lessees are ready and wil ling to
assume the obligations and responsibilities of independent owners, which shall be manifested by a written notice to this effect by
the lessees and which shall oblige the Land Authority forthwith to allot and sell such portions to such lessees under the same
uniform terms and conditions. Pending the sale, such lessees shall continue to work on their landholdings and receive the produce
thereof, subject, however, to the requirement that they pay the Land Bank the allowable rental established in Section thirty-four.
The Land Bank shall apply the rental to the six percent added to the acquisition price and credit the balance to the acquisition cost
in the name of the lessee as partial payment for the land.
The Land Authority shall administer said parcels of land during the period they are under lease. Competent management and
adequate production credit shall be provided in accordance with the program developed by the Land Reform Project Team for
such area.
Section 61. Organization of Cooperative Associations - For the purpose of more efficient management, adoption of modern farm
methods and techniques, and spreading risk, either through diversification of farm projects or mutual assumption of risks the
farmer beneficiaries may organize themselves into cooperative associations with the advice or assistance of the Agricultural
Productivity Commission and in accordance with the guidelines established by said Commission for such associations.
Section 62. Limitation on Land Rights - Except in case of hereditary succession by one heir, landholdings acquired under this
Code may not be resold, mortgaged, encumbered or transferred until after the lapse of ten years from the date of full payment and
acquisition and after such ten-year period, any transfer, sale or disposition may be made only in favor of persons qualified to
acquire economic family-size farm units in accordance with the provisions of this Code: Provided, That a purchaser who acquired
his landholding under a contract to sell may secure a loan on the same from any private lending institution or individual for an
amount not exceeding his equity on said landholding upon a guaranty by the Land Bank.
Section 63. Inscription of Specific Prohibition Against Resale and Subdivision of Landholding - Certificates of titles of landholdings
acquired by the Land Authority and resold to purchasers shall contain therein a specific inscription prohibiting further subdivision
and the resale, transfer or encumbrance of said landholdings except as provided in the preceding Section.
Section 64. Exemption from Attachment - Lands acquired under the provisions of this Chapter shall be exempt from execution
and attachment, except when the land itself is the property mortgaged, in accordance with Section sixty-two of this Code.
Section 65. Precedence of Expropriation Cases - Expropriation cases filed by the Authority under provisions of this Chapter shall
take precedence over all other civil cases pending before the Court and shall be terminated within a period not exceeding six
months from the date of filing.
ARTICLE III
Distribution of Agricultural Lands of the Public Domain
Section 66. Title to Public Agricultural Land - Upon reservation by the President of the Philippines of public agricultural land
available for disposition by the Land Authority, such land shall be surveyed, titled and transferred to the Land Bank, which shall
reduce said title into individual titles for specific parcels or lots in accordance with the subdivision survey conducted by the Land
Authority under paragraph 9 of Section fifty-one: Provided, however, That existing laws governing the acquisition of public lands
shall have been complied with.
The Land Authority shall thereupon distribute in accordance with the provisions of this Code, each parcel or lot, subject to the
terms and conditions of the Land Bank, to a beneficiary selected pursuant to Section seventy-one or in accordance with paragraph
3 of Section fifty-one, to a beneficiary selected pursuant to paragraph 3 of Section one hundred twenty-eight.
Section 67. Census of Settlements - The Authority shall take a census of all settlements already made or started by farmers on
their own initiative on public agricultural lands, forest lands, and on private titled lands which had been cleared, occupied and
cultivated wholly or partially by them, with or without legal sanction. The census shall include, among other things, the bona fide
character of the settlements, the character of the settlers or farmers, the exact status of the lands settled, the feasibility of
enlarging the settlements, particularly in connection with the resources of the land occupied and the neighboring areas, actual and
potential accessibility to markets, as well as strategic location of the settlement with respect to national security.
Section 68. Assistance to Settlers in Transporting Themselves and Their Belongings - The Authority may, in certain projects,
assist settlers in transporting themselves, their belongings, work animals and farm equipment, if any, from the communities from
which they are migrating to the settlement areas reserved for the purpose and for subsistence necessary until credit can be
provided by government financing agencies, or by any other credit institution by loaning to them the full amount required for such
purposes. These loans from the Land Authority shall be non-interest bearing, shall constitute a lien upon the land, and shall be
amortized over a period of ten years, payable annually beginning with the end of the third year, after the date of arrival in the
settlement areas, subject to the right of the borrower to pay in the full at any time prior to the maturity of the loan.
Section 69. Assistance to Settlers in Securing Equipment - The Authority may assist the settlers in securing equipment, supplies
and materials needed; or assist the cooperative associations of the new settlers in securing the most advantageous prices or
terms on farm implements and supplies needed.
Section 70. Providing Housing and Accommodations to Settlers - The Authority may help provide housing and other
accommodations for the new settlers upon their arrival in the settlement areas by the stationing them in properly surveyed and
subdivided lots reserved for the purpose: help them organize community activities; and cooperate with the Bureau of Health, the
Bureau of Public Schools and other pertinent agencies of the Government, in providing services necessary for the proper
establishment of community facilities.
Section 71. Power of the Land Authority to Sell to Holders of Bonds Issued to Former Landowners Whose Lands Have Been
Purchased for Redistribution - The Land Authority shall sell, for a price not less than the appraised value, any portion not
exceeding one hundred forty-four hectares in the case of individuals or one thousand twenty-four hectares in the case of
corporations of the public agricultural lands transferred to the Land Bank which is suitable for large-scale farm operations to any
holder, who is qualified to acquire agricultural lands through purchase, of bonds issued to former landowners whose lands have
been purchased for redistribution under this Code, subject to the condition that the purchaser shall, within two years after
acquisition, place under cultivation at least thirty per centum of the entire area under plantation administration and the remaining
seventy per centum within five years from the date of acquisition. The Governor of the Land Authority shall issue the title of said
land upon showing that the purchaser has begun the development and cultivation of his land under plantation administration:
Provided, That public agricultural land sold as hereinabove specified shall not be the object of any expropriation as long as the
same shall be developed and cultivated for large-scale production under farm labor management, except as allowed by the
Constitution.
The selling price of the portion of the public agricultural land sold under this Section shall be credited to the Government's
subscription to the Land Bank. As payment for the land sold under this Section, the Land Bank shall accept as sole instruments of
payment the bonds issued pursuant to Section seventy-six. Issued bonds accepted as payment for the land sold shall be
cancelled to the extent of the amount paid.
All sales under this Code shall be subject to the provision of Chapter V of the Public Land Act covering sales of public agricultural
lands insofar as they are not inconsistent with the provisions of this Code.
Section 72. Duplicate Records to be Furnished the Bureau of Lands - The Land Authority shall furnish the Bureau of Lands with
the duplicate records of proceedings on applications for the sale or other disposition of public agricultural lands under its
administration.
Section 73. Transfer of Appropriations, Powers, Functions, etc - The National Resettlement and Rehabilitation Administration and
the Land Tenure administration are hereby abolished and their powers and functions not inconsistent with this Code, balances of
all appropriations, funds, equipment, records and supplies, as well as agricultural lands, public and private, under their
administration, are hereby transferred to the Authority: Provided, That the function of the Land Tenure Administration with respect
to the expropriation of urban lands as provided by existing laws is hereby transferred to and all hereafter be undertaken by the
People's Homesite and housing Corporation.
In addition to the appropriations herein transferred there is hereby appropriated from the general funds in the National Treasury
not otherwise appropriated the sum of five million pesos, or so much thereof as may be necessary, to carry out the purposes of
this Code.
To carry out the land capability survey and classification mentioned in paragraph 12 of Section fifty-one and Section one hundred
thirty-two of this Code, there is hereby appropriated out of the unappropriated funds of the National Treasury the amount of ten
million pesos.
CHAPTER IV
LAND BANK
Section 74. Creation - To finance the acquisition by the Government of landed estates for division and resale to small
landholders, as well as the purchase of the landholding by the agricultural lessee from the landowner, there is hereby established
a body corporate to be known as the "Land Bank of the Philippines", hereinafter called the "Bank", which shall have its principal
place of business in Manila. The legal existence of the Bank shall be for a period of fifty years counting from the date of the
approval hereof. The Bank shall be subject to such rules and regulations as the Central Bank may from time to time promulgate.
Section 75. Powers in General - To carry out this main purpose, the Bank shall have the power:
(1) To prescribe, repeal, and alter its own by laws, to determine its operating policies, and to issue such rules and regulations
as may be necessary to achieve the main purpose for the creation of the Bank;
(2) To adopt, alter and use a corporate seal;
(3) To acquire and own real and personal property and to sell, mortgage or otherwise dispose of the same;
(4) To sue and be sued, make contracts, and borrow money from both local and foreign sources. Such loans shall be subject
to approval by the President of the Philippines and shall be fully guaranteed by the Government of the Philippines;
(5) Upon recommendation of the Committee on Investments, to hold, own, purchase, acquire, sell or otherwise invest, or
reinvest in stocks, bonds or other securities capable of giving the Bank a reasonably assured income sufficient to support its
financing activities and give its private stockholders a fair return on their holdings: Provided, however, That pending the
organization of the Committee on Investments, the Bank may exercise the powers herein provided without the
recommendation of said Committee on Investments: Provided, further, That in case of the dissolution of the Land Bank all
unsold public lands transferred to it which may be allocated to the Government of the Philippines in the course of liquidation
of the business of the Bank shall revert to the Department of Agriculture and Natural Resources; and
(6) To provide, free of charge, investment counselling and technical services to landowners whose lands have been acquired
by the Land Bank. For this purpose, the Land Bank may contract the services of private consultants.
Section 76. Issuance of Bonds - The Land Bank shall, upon recommendation by the Board of Trustees and approval of the
Monetary Board of the Central Bank, issue bonds, debentures and other evidences of indebtedness at such terms, rates and
conditions as the Bank may determine up to an aggregate amount not exceeding, at any one time, five times its unimpaired capital
and surplus. Such bonds and other obligations shall be secured by the assets of the Bank and shall be fully tax exempt both as to
principal and income. Said income shall be paid to the bondholder every six (6) months from the date of issue. These bonds and
other obligations shall be fully negotiable and unconditionally guaranteed by the Government of the Republic of the Philippines
and shall be redeemable at the option of the Bank at or prior to maturity, which in no case shall exceed twenty-five years. These
negotiable instruments of indebtedness shall be mortgageable in accordance with established banking procedures and practices
to government institutions not to exceed sixty per centum of their face value to enable the holders of such bonds to make use of
them in investments in productive enterprises. They shall also be accepted as payments for reparation equipment and materials.
The Board of Trustees shall have the power to prescribe rules and regulations for the registration of the bonds issued by the Bank
at the request of the holders thereof.
Section 77. Issuance of Preferred Shares of Stock to Finance Acquisition of Landed Estates - The Land Bank shall issue, from
time to time, preferred shares of stock in such quantities not exceeding six hundred million pesos worth of preferred shares as
may be necessary to pay the owners of landed estates in accordance with Sections eighty and eighty-one of this Code. The
amount of shares that the Bank may issue shall not exceed the aggregate amount need to pay for acquired estates in the
proportions prescribed in said Section eighty of this Code. The Board of Trustees shall include as a necessary part of the by-laws
that it shall issue under Section seventy-five of this Code, such formula as it deems adequate for determining the net asset value
of its holdings as a guide and basis for the issuance of preferred shares. The shares of stock issued under the authority of this
provision shall be guaranteed a rate of return of six per centum per annum. In the event that the earnings of the Bank for any
single fiscal year are not sufficient to enable the Bank, after making reasonable allowance for administration, contingencies and
growth, to declare dividends at the guaranteed rate, the amount equivalent to the difference between the Bank's earnings
available for dividends and that necessary to pay the guaranteed rate shall be paid by the Bank out of its own assets but the
Government shall, on the same day that the Bank makes such payment, reimburse the latter in full, for which purpose such
amounts as may be necessary to enable the Government to make such reimbursements are hereby appropriated out of any
moneys in the National Treasury not otherwise appropriated. The Bank shall give sufficient notice to the Budget Commissioner
and the President of the Philippines in the event that it is not able to pay the guaranteed rate of return on any fiscal period. The
guaranteed rate of return on these shares shall not preclude the holders thereof from participating at a percentage higher than six
per centum should the earnings of the Bank for the corresponding fiscal period exceed the guaranteed rate of return. The Board of
Trustees shall declare and distribute dividends within three months after the close of each fiscal year at the guaranteed rate
unless a higher rate of return in justified by the Bank's earnings after making reasonable allowance for administration,
contingencies and growth, in which case dividends shall be declared and distributed at a higher rate. The capital gains derived
from the sale or transfer of such shares and all income derived therefrom in the form of dividends shall be fully exempt from taxes.
Section 78. Special Guaranty Fund - In the event that the Bank shall be unable to pay the bonds, debentures, and other
obligations issued by it, a fixed amount thereof shall be paid from a special guaranty fund to be set up by the Government, to
guarantee the obligation of the Land Bank, and established in accordance with this Section, and thereupon, to the extent of the
amounts so paid, the Government of the Republic of the Philippines shall succeed to all the rights of the holders of such bonds,
debentures or other obligations: Provided, however, That for the next four years after the establishment of the Bank, the payment
to the special guaranty fund should not exceed one million pesos per year, after which period, the Government shall pay into the
guaranty fund the sum of five hundred thousand pesos each year until the cumulative total of such guaranty fund is no less than
twenty percent of the outstanding net obligation of the Land Bank at the end of any single calendar year.
The guaranty fund shall be administered by the Central Bank of the Philippines in the manner most consistent with its charter. For
the purpose of such fund, there shall be appropriated annually the sum of one million pesos out of any moneys in the National
Treasury not otherwise appropriated, until the total amount of twenty million pesos shall have been attained.
Section 79. Receiving Payments and Time Deposits - The Bank, under the supervision of the Monetary Board and subject to the
provisions of the General Banking Act, shall receive savings and time deposits from the small landholders in whose favor public
lands or landed estates acquired by the Land Authority have been sold and, for this purpose, establish, and maintain branches
and offices in such areas as may be necessary to service such deposits. The Monetary Board shall supervise and authorize the
Bank to receive savings and time deposits from the public in areas where facilities for such a service do not exist or cannot be
adequately provided by other deposit institutions.
Section 80. Making Payment to Owners of Landed Estates - The Land bank shall make payments in the form herein prescribed to
the owners of land acquired by the Land Authority for division and resale under this Code. Such payment shall be made in the
following manner: ten per centum in cash and the remaining balance in six percent, tax-free, redeemable bonds issued by the
Bank in accordance with Section seventy-six, unless the landowner desires to be paid in shares of stock issued by the Land Bank
in accordance with Section seventy-seven in an amount not exceeding thirty per centum of the purchase price.
In the event there is an existing lien on encumbrance on the land in favor of any Government institution at the time of acquisition
by the Land Bank, the bonds and/or shares, in that order, shall be accepted as substitute collaterals to secure the indebtedness.
The profits accruing from payment shall be exempt from the tax on capital gains.
Section 81. Capital - The authorized capital stock of the Bank shall be one billion five hundred million pesos divided into ninety
million shares with a par value of ten pesos each, which shall be fully subscribed by the Government and sixty million preferred
shares with a par value of ten pesos each which shall be issued in accordance with the provisions of Sections seventy-seven and
eighty-three of this Code. Of the total capital subscribed by the Government, two hundred million pesos shall be paid by the
Government within one year from the approval of this Code, and one hundred million pesos every year thereafter for two years for
which purpose the amount of two hundred million pesos is hereby appropriated upon the effectivity of this Code, and one hundred
million pesos every year for the next two years thereafter, out of the funds in the National Treasury not otherwise appropriated for
the purpose: Provided, That if there are not enough funds in the National Treasury for the appropriation herein made, the
Secretary of Finance, with the approval of the President of the Philippines, shall issue bonds or other evidence of indebtedness to
be negotiated either locally or abroad in such amount as may be necessary to cover any deficiency in the amount above-
appropriated but not exceeding four hundred million pesos, the proceeds of which are hereby appropriated: Provided, further, That
the bonds to be issued locally shall not be supported by the Central Bank: Provided, finally, That there is automatically
appropriated out of the unappropriated funds in the National Treasury such amounts as is necessary to cover the losses which
shall include among other things loss of earnings occasioned by the limitation of the resale cost herein provided such that said
amount together with the administrative expenses mentioned in Section ninety hereof shall not exceed in the aggregate the
equivalent of two and one-half per centum of its assets limited therein.
Section 82. Government Shares - All shares of stock in the Bank subscribed or owned by the Government shall not be entitled to
participate in the income earned by the Bank from its investments and other operations, whether in the form of cash or stock
dividends or otherwise. Amounts expended for the administration of the Bank shall not be deemed as a participation of the
Government in income.
Section 83. Preferred Shares - All preferred shares of stock issued under Section seventy-seven of this Code shall be entitled to
the income earned by the Bank on its investments and other operations and shall have a limited right to elect annually one
member of the Board of Trustees and one member of the Committee on Investments: Provided, That the holders of such preferred
shares of stock shall not bring derivative suits against the Bank. Such preferred shares shall be fully transferable: Provided,
further, That upon the liquidation of the Bank, the redemption of such preferred shares shall be given priority and shall be
guaranteed at par value.
Section 84. Voting of Shares - The voting power of all the shares of stock of the Land Bank owned or controlled by the
Government shall be vested in the President of the Philippines or in such person or persons as he may from time to time
designate.
Section 85. Use of Bonds - The bonds issued by the Land Bank may be used by the holder thereof and shall be accepted in the
amount of their face value as any of the following:
(1) Payment for agricultural lands or other real properties purchased from the Government;
(2) Payment for the purchase of shares of stock of all or substantially all of the assets of the following Government owned or
controlled corporations: The National Development Company; Cebu Portland Cement Company; National Shipyards and
Steel Corporation; Manila Gas Corporation; and the Manila Hotel Company.
Upon offer by the bondholder, the corporation owned or controlled by the Government shall, through its Board of Directors,
negotiate with such bondholder with respect to the price and other terms and conditions of the sale. In case there are various
bondholders making the offer, the one willing to purchase under terms and conditions most favorable to the corporation shall
be preferred. If no price is acceptable to the corporation, the same shall be determined by a Committee of Appraisers
composed of three members, one to be appointed by the corporation, another by the bondholder making the highest or only
offer, and the third by the two members so chosen. The expenses of appraisal shall be borne equally by the corporation and
the successful purchaser.
Should the Government offer for sale to the public any or all of the shares of stock or the assets of any of the Government
owned or controlled corporations enumerated herein, the bidder who offers to pay in bonds of the Land Bank shall be
preferred provided that the various bids be equal in every respect except in the medium of payment.
(3) Surety or performance bonds in all cases where the Government may require or accept real property as bonds; and
(4) Payment for, reparations goods.
Section 86. Board of Trustees - The affairs and business of the Bank shall be directed, its powers exercised and its property
managed and preserved by a Board of Trustees. Such Board shall be composed of one Chairman and four members, one of
whom shall be the head of the Land Authority who shall be an ex-officio member of such Board and another to be elected by the
holders of preferred shares. The Chairman and two members of the Board of Trustees shall serve on full-time basis with the Bank.
With the exception of the head of the Land Authority and the member elected by the holders of preferred shares, the Chairman
and all members of the Board shall be appointed by the President with the consent of the Commission on Appointments for a term
of seven years, except that the first Chairman and members to be appointed under this Code shall serve for a period of three, five
and seven years, such terms to be specified in their respective appointments. Thereafter the Chairman and members, with the
exception of the ex-officio member, appointed after such initial appointment shall serve for a term of seven years including any
Chairman or member who is appointed in place of one who resigns or is removed or otherwise vacates his position before the
expiration of his seven-year term. The Chairman and the two full-time members of the Board shall act as the heads of such
operating departments as may be set up by the Board under the authority granted by Section eighty-seven of this Code. The
Chairman shall have authority, exerciseable at his discretion, to determine from time to time the organizational divisions to be
headed by each member serving full time and to make the corresponding shifts in designations pursuant thereto. The
compensation of the Chairman and the members of the Board of Trustees serving full time shall be twenty-four thousand and
eighteen thousand pesos, respectively. The other members of the Board shall receive a per diem of one hundred pesos for each
session of the Board that they attend.
Section 87. The Chairman and Vice-Chairman - The Chairman of the Board shall be the chief executive officer of the Bank. He
shall have direct control and supervision of the business of the Bank in all matters which are not by this Code or by the by-laws of
the Bank specifically reserved to be done by the Board of Trustees. He shall be assisted by an Executive Vice-Chairman and one
or more vice-chairman who shall be chosen and may be removed by the Board of Trustees. The salaries of the Vice-Chairmen
shall be fixed by the Board of Trustees with the approval of the President of the Philippines.
Section 88. Qualifications of Members - No person shall be appointed Chairman or member of the Board unless he is a man of
accepted integrity, probity, training and experience in the field of banking and finance, at least thirty-five years of age and
possessed of demonstrated administrative skill and ability.
Section 89. Committee on Investments - There shall be a Committee on Investments composed of three members; the member
of the Board of Trustees elected by the holders of preferred shares as Chairman, one member to be appointed by the President of
the Philippines from among the government members of the Board of Trustees, and another member to be selected by the
holders of preferred shares under Section eighty-three of this Code. The Committee on Investments shall recommend to the
Board of Trustees the corporations or entities from which the Land Bank shall purchase shares of stock.
The Land Bank shall not invest in any corporation, partnership or company wherein any member of the Board of Trustees or of the
Committee on Investments or his spouse, direct descendant or ascendant has substantial pecuniary interest or has participation in
the management or control of the enterprise except with the unanimous vote of the members of the Board of Trustees and of the
Committee on Investments, excluding the member interested, in a joint meeting held for that purpose where full and fair
information of the extent of such interest or participation has been adequately disclosed in writing and recorded in the minutes of
the meeting: Provided, That such interested member shall not in any manner participate in the deliberations and shall refrain from
exerting any pressure or influence whatever on any official or member of the Bank whose functions bear on or relate to the
investment of the funds of the Bank in the enterprise: Provided, further, That the total investment in any single corporation,
partnership, company, or association shall not exceed five per centum of the total investible funds.
Section 90. Personnel; Cost of Administration - The Administrative expenses of the Bank during any single fiscal year shall not in
any case exceed two and one-half per centum of its total assets. The Board of Trustees shall provide for an organization and staff
of officers and employees necessary to carry out the functions of the Bank, fix their compensation, and appoint and remove such
officers and employees for cause. The Bank officers and employees shall be subject to the rules and regulations issued by the
Civil Service Commission but shall not fall under the Wage and Position Classification Office. The Board of Trustees shall
recommend to the Civil Service Commission rules and regulations for the recruitment, appointment, compensation, administration,
conduct, promotion and removal of all Bank officers and employees under a strict merit system and prepare and conduct
examinations under the supervision of said Commission.
Section 91. Legal counsel - The Secretary of Justice shall be ex-officio legal adviser of the Bank. Any provision of law to the
contrary notwithstanding, the Land Bank shall have its own Legal Department, the chief and members of which shall be appointed
by the Board of Trustees. The composition, budget and operating expenses of the Office of the Legal Counsel and the salaries
and traveling expenses of its officers and employees shall be fixed by the Board of Trustees and paid by the Bank.
Section 92. Auditor - The Auditor General shall be the ex-officio auditor of the Bank and shall appoint a representative, who shall
be the auditor in charge of the auditing office of the Bank. The Auditor General shall, upon the recommendation of the auditor of
the Bank, appoint or remove the personnel of the auditing office. The compensation, budget and operating expenses of the
auditing office and the salaries and traveling expenses of the officers and employees thereof shall be fixed by the Board of
Trustees and paid by the Bank notwithstanding any provision of law to the contrary.
Section 93. Report on Condition of Bank - The representative of the Auditor General shall make a quarterly report on the
condition of the Bank to the President of the Philippines, to the Senate through its President, to the House of Representatives
through its Speaker, to the Secretary of Finance, to the Auditor General and to the Board of Trustees of the Bank. The report shall
contain, among other things, a statement of the resources and liabilities including earnings and expenses, the amount of capital
stock, surplus, reserve and profits, as well as losses, bad debts, and suspended and overdue paper carried in the books as assets
of the Bank, and a plantilla of the Bank.
Section 94. Auditing Rules and Regulations - The Auditor General shall, with respect to the Bank, formulate improved and
progressive auditing rules and regulations designed to expedite the operations of the Bank and prevent the occurrence of delays
and bottlenecks in its work.
Section 95. Removal of Members - The President of the Philippines may, at any time, remove the Chairman or any member of
the Board appointed by him if the interest of the Bank so requires, for any of the following causes:
(1) Mismanagement, grave abuse of discretion, infidelity in the conduct of fiduciary relations, or gross neglect in the
performance of duties;
(2) Dishonesty, corruption, or any act involving moral turpitude; and
(3) Any act or performance tending to prejudice or impair the substantial rights of the stockholders.
Conviction of the Chairman or a member for a crime carrying with it a penalty greater than arresto mayor shall cause the removal
of such Chairman or member without the necessity of Presidential action.
The Chairman or member may, in any of the above cases, be civilly liable for any damage that may have been suffered by the
stockholders.
Section 96. Transfer of Claims and Liabilities - The assets of the former Land Tenure Administration and the National
Resettlement and Rehabilitation Administration in the form of claims and receivables arising from the sale or transfer of private
and public lands, agricultural equipment, machinery, tools and work animals, but excluding advances made for subsistence, to
small landholders shall, after an exhaustive evaluation to determine their true asset value, be irrevocably transferred to the Bank
under such arrangements as the Land Authority and the Bank shall agree upon. Thereafter, the Bank shall have authority and
jurisdiction to administer the claims, to collect and make adjustments on the same and, generally, to do all other acts properly
pertaining to the administration of claims held by a financial institution. The Land Authority, upon request of the Bank, shall assist
the latter in the collection of such claims. The Land Authority shall be entitled to collect from the Bank no more than the actual cost
of such collection services as it may extend. The claims transferred under this Section shall not be considered as part of the
Government's subscription to the capital of the Bank.
Section 97. Regulation - The Bank shall not be subject to the laws, rules and regulations governing banks and other financial
institutions of whatever type except with respect to the receipt of savings and time deposits in accordance with Section seventy-
nine of this Code, in which case the legal reserve and other requirements prescribed by the Central Bank for such deposits shall
apply. The Bank shall be operated as an autonomous body and shall be under the supervision of the Central Bank.
Section 98. Tax Exemption - The operations, as well as holdings, equipment, property, income and earnings of the Bank from
whatever sources shall be fully exempt from taxation.
Section 99. Organization of Bank - The Bank shall be organized within one year from the date that this Code takes effect.
Section 100. Penalty for Violation of the Provisions of this Chapter - Any trustee, officer, employee or agent of the Bank who
violates or permits the violation of any of the provisions of this Chapter, or any person aiding or abetting the violations of any of the
provisions of this Chapter, shall be punished by a fine not to exceed ten thousand pesos or by imprisonment of not more than five
years, or both such fine and imprisonment at the discretion of the Court.
CHAPTER V
AGRICULTURAL CREDIT ADMINISTRATION
Section 101. Reorganization of ACCFA to Align Its Activities - The administrative machinery of the Agricultural Credit and
Cooperative Financing Administration created under Republic Act Numbered Eight hundred twenty-one, as amended by Republic
Act Numbered Twelve hundred and eighty-five, shall be reorganized to enable it to align its activities with the requirements and
objectives of this Code and shall be known as the Agricultural Credit Administration.
Section 102. Financing - To finance the additional credit functions of the Agricultural Credit Administration as a result of the land
reform program laid down in this Code, there is hereby appropriated the sum of one hundred fifty million pesos out of funds in the
National Treasury not otherwise appropriated in addition to existing appropriations for the Agricultural Credit and Cooperative
Financing Administration.
Section 103. Privilege of Rediscounting - The Agricultural Credit Administration is hereby granted the privilege of rediscounting
with the Central Bank of the Philippines, the Development Bank of the Philippines and the Philippine National Bank eligible
evidence of indebtedness acquired by it in carrying on its authorized activities, at an interest rate equal to the lowest charged by
the above financing institution on any private person or entity.
Section 104. Power to Obtain Additional Funds - Nothing in this Section shall limit the power of the Agricultural Credit
Administration to obtain from the Central Bank of the Philippines, the Development Bank of the Philippines, the Philippine National
Bank and other financing institutions, such additional funds as may be necessary for the effective implementation of this Act:
Provided, That such additional funds are to be utilized as loans to farmers and/or farmers' cooperatives.
Section 105. Loaning Activities - Loaning activities of the Agricultural Credit Administration shall be directed to stimulate the
development and operation of farmers' cooperatives. The term "Farmers' Cooperatives" shall be taken to include all cooperatives
relating to the production and marketing of agricultural products and those formed to manage and/or own, on a cooperative basis,
services and facilities, such as irrigation and transport system, established to support production and/or marketing of agricultural
products.
Under such rules and regulations in accordance with generally accepted banking practices and procedures as may be
promulgated by the Agricultural Credit Administration, Rural Banks and Development Banks may, in their respective localities, be
designated to act as agents of the Agricultural Credit Administration in regard to its loaning activities.
Section 106. Credit to Small Farmers - Production loans and loans for the purchase of work animals, tillage equipment, seeds,
fertilizers, poultry, livestock, feed and other similar items, may be extended to small farmers as defined in Republic Act Numbered
Eight hundred twenty-one, based upon their paying capacity and such securities as they can provide, and under such terms and
conditions as the Agricultural Credit Administration may impose, provided the amount thereof does not exceed two thousand
pesos, or such amount as may be fixed by the President, but in no case shall the amount of loan exceed eighty per centum of the
value of the collateral pledged. In instances where credit is extended for items which are not consumed in their use, such items
may be pledged as security therefor. The Agricultural Credit Administration shall promulgate such rules and regulations as may be
necessary in the extension of the loans herein authorized so as to assure their repayment: Provided, That such rules and
regulations shall follow and be in accordance with generally accepted financing practices and procedures.
Section 107. Security for Loans - The production of the borrower, after deducting the lease rental and/or liens thereon, shall be
accepted as security for loans: Provided, That said production is pledged to the Agricultural Credit Administration with appropriate
safeguards to insure against its unauthorized disposition: Provided, further, That the amount of loan shall not exceed sixty per
centum of the value of the estimated production.
Section 108. Loans to Cooperatives - The Agricultural Credit Administration is hereby authorized to extend such types of loans as
it may deem necessary for the effective implementation of this Code, to eligible farmers' cooperatives as herein defined, under
such terms and conditions as it may impose and with such securities as it may require. A farmers' cooperative that has been
registered with the Securities and Exchange Commission and affiliated with the Agricultural Credit Administration shall be eligible
for loans if, in the judgment of the latter, its organization, management and business policies are of such character as will insure
the safety and effective use of such loans.
Section 109. Loans for Construction or Acquisition by Purchase of Facilities - Loans for the construction or acquisition by
purchase of facilities of farmers' cooperatives may be granted by the Agricultural Credit Administration.
Section 110. Interest on Loans - The total charges including interest and insurance fees on all kinds of loans shall not be more
than eight per centum per annum: Provided, That if an impairment of the capitalization of the Agricultural Credit Administration is
imminent by reason of the limitation of the interest rate herein provided, there is automatically appropriated out of the
unappropriated funds in the National Treasury such amounts as is necessary to cover the losses of the Agricultural Credit
Administration, but not exceeding six million pesos for any one year.
Section 111. Institution of Supervised Credit - To provide for the effective use of credit by farmers, the Agricultural Credit
Administration may institute a program of supervised credit in cooperation with the Agricultural Productivity Commission.
Section 112. Guidance to Cooperatives - The Agricultural Credit Administration shall have the power to register and provide credit
guidance or assistance to all agricultural cooperatives including irrigation cooperatives and other cooperative associations or fund
corporations.
Section 113. Auditing of Operations - For the effective supervision of farmers' cooperatives, the head of the Agricultural Credit
Administration shall have the power to audit their operations, records and books of account and to issue subpoena and subpoena
duces tecum to compel the attendance of witnesses and the production of books, documents and records in the conduct of such
audit or of any inquiry into their affairs. Any person who, without lawful cause, fails to obey such subpoena or subpoena duces
tecum shall, upon application of the head of Agricultural Credit Administration with the proper court, be liable to punishment for
contempt in the manner provided by law and if he is an officer of the association, to suspension or removal from office.
Section 114. Prosecution of Officials - The Agricultural Credit Administration, through the appropriate provincial or city fiscal, shall
have the power to file and prosecute any and all actions which it may have against any and all officials or employees of farmers'
cooperatives arising from misfeasance or malfeasance in office.
Section 115. Free Notarial Services - Any justice of the peace, in his capacity as notary ex-officio, shall render service free of
charge to any person applying for a loan under this Code either in administering the oath or in the acknowledgment of instruments
relating to such loan.
Section 116. Free Registration of Deeds - Any register of deeds shall accept for registration, free of charge any instrument
relative to a loan made under this Code.
Section 117. Writing-off Unsecured and Outstanding Loans - Subject to the approval of the President upon recommendation of
the Auditor General, the Agricultural Credit Administration may write-off from its books, unsecured and outstanding loans and
accounts receivable which may become uncollectible by reason of the death or disappearance of the debtor, should there be no
visible means of collecting the same in the foreseeable future, or where the debtor has been verified to have no income or
property whatsoever with which to effect payment. In all cases, the writing-off shall be after five years from the date the debtor
defaults.
Section 118. Exemption from Duties, Taxes and Levies - The Agricultural Credit Administration is hereby exempted from the
payment of all duties, taxes, levies, and fees, including docket and sheriff's fees, of whatever nature or kind, in the performance of
its functions and in the exercise of its powers hereunder.
CHAPTER VI
AGRICULTURAL PRODUCTIVITY COMMISSION
Section 119. Creation of the Agricultural Productivity Commission - For the purpose of accelerating progressive improvement in
the productivity of farms, the advancement of farmers and the strengthening of existing agricultural extension services through the
consolidation of all/promotional, educational and informational activities pertaining to agriculture, the present Bureau of
Agricultural Extension of the Department of Agriculture and Natural Resources is hereby placed directly under the executive
supervision and control of the President and hereinafter renamed Agricultural Productivity Commission.
Upon the effectivity of this Code, the Agricultural Tenancy Commission of the Department of Justice, together with its powers,
duties, responsibilities, files, records supplies, equipment, personnel and unexpended balance of appropriations, is hereby placed
under the Agricultural Productivity Commission as a separate office thereof.
Section 120. Commissioner of the Agricultural Productivity Commission - The Agricultural Productivity Commission shall be
administered by an Agricultural Productivity Commissioner who shall be appointed by the President with the consent of the
Commission on Appointments and who shall have a compensation of sixteen thousand pesos per annum. No person shall be
appointed as a Agricultural Productivity Commissioner unless he be a holder of at least a Bachelor of Science degree in
Agricultural from a reputable school or college of agriculture and shall have practiced agriculture for at least five years, and who is
of recognized competence in agricultural economics or any of its equivalents.
Section 121. Powers and Duties - The Agricultural Productivity Commissioner shall exercise the same powers and duties vested
in the Director of the Bureau of Agricultural Extension.
Section 122. Division on Cooperatives - In addition to the existing divisions of the Bureau of Agriculture Extension, herein
renamed as Agricultural Productivity Commission, there shall be a Division of Cooperatives and such other divisions and sections
as the Agricultural Productivity Commissioner may deem necessary to organize in order to carry out the promotional and
educational activities of the Commission.
Section 123. Recruitment, Selection and Training of Extension Workers - The extension workers shall be recruited and selected
from graduates of agricultural college with adequate practical experience and training in actual crop, tree, poultry and livestock
farming: Provided, however, That in the event there are no graduates of agricultural colleges available, graduates of agricultural
high schools may be temporarily employed. Training of extension workers shall be done in conjunction with research institutions to
insure their maximum efficiency.
Section 124. Functions of Extension Workers - In addition to their functions under Republic Act Numbered Six hundred eighty, it
shall be the duty of extension workers:
(1) To reside in the locality where they are assigned, to disseminate technical information to farmers, and to demonstrate
improved farm management practices and techniques;
(2) To work with individual farmers in farm planning and budgeting, guide them in the proper conduct of farm business and
work out schedules of re-payment of loans obtained by farmers;
(3) To assist farmers in securing the services or assistance of other agencies, or their personnel, having to do with relevant
activities and problems of farmers;
(4) To visit newly-established independent farm operators either singly or collectively at least once a month;
(5) To conduct educational activities that will acquaint leaseholders and other independent farm operators with their rights
and responsibilities under this Code;
(6) To encourage the formation and growth of private associations, study clubs, committees and other organized groups of
farmers, familiarize them with modern methods of farming and interest them to actively participate, collaborate or take the
initiative in agricultural research, experimentation and implementation of projects in cooperation with the Agricultural
Productivity Commissioner and other agencies; and
(7) To promote, stimulate and assist in the organization of farmers' cooperatives.
Section 125. Appropriation - In addition to the funds herein transferred, there is hereby appropriated from the general funds in the
National Treasury not otherwise appropriated the sum of five million pesos, or so much thereof as may be necessary to carry out
the purposes of this Chapter.
CHAPTER VII
LAND REFORM PROJECT ADMINISTRATION
Section 126. Creation of National Land Reform Council - There is hereby created a National Land Reform Council, hereinafter
called the Council, which shall be composed of the Governor of the Land Authority, who shall act as Chairman, the Administrator
of the Agricultural Credit Administration, the Chairman of the Board of Trustees of the Land Bank, the Commissioner of the
Agricultural Productivity Commission and another member appointed by the President upon recommendation of the minority party
receiving the second largest number of votes in the last Presidential election who shall hold office at the pleasure of such minority
party, unless sooner removed for cause by the President as members and the Agrarian Counsel as legal counsel: Provided, That
the Council shall not be considered fully constituted and ready to function until after the member representing the minority party
has been appointed by the President of the Philippines: Provided, further, That the minority party shall submit its recommendation
to the President within sixty days from the approval of this Code, in the absence of which the Council shall be deemed to be so
constituted even without such member from the minority party: Provided, finally, That the minority representative shall receive a
per diem of fifty pesos for each day he attends a council meeting, chargeable to the appropriations of the Land Authority.
Section 127. Meetings; Resolutions - The Chairman of the Council shall convoke the Council as its responsibilities enumerated in
Section one hundred twenty-eight may warrant, and shall preside over its meetings.
It shall be the duty of the members to attend any meeting of the Council upon the call of the Chairman. In case of inability, a
member may require the officer next in rank in his agency to attend the meeting in his behalf.
A majority vote of the members present if there is a quorum shall be necessary for the approval of a resolution. Upon such
approval the resolution shall be final and binding upon all members of the Council and their respective agencies insofar as their
functions, powers and duties required under this Code are concerned.
The refusal of any member to implement any resolution or part thereof falling within the scope of the powers granted to his agency
shall be sufficient ground for the President of the Philippines to remove said member from office or to impose upon him
disciplinary or administrative sanctions.
Section 128. Functions of National Land Reform Council - It shall be the responsibility of the Council:
(1) To construct the general program of land reform contemplated by this Code;
(2) To establish guidelines, plans and policies for its member-agencies relative to any particular land reform project;
(3) To formulate such rules and regulations as may be necessary to carry out the provisions of this Code for (a) the selection
of agricultural land to be acquired and distributed under this Code; (b) the determination of sizes of family farms as defined in
Section one hundred sixty-six; and (c) the selection of beneficiaries to family farms available for distribution: Provided, That
priority shall be given in the following order: First, to members of the immediate family of the former owner of the land within
the first degree of consanguinity who will cultivate the land personally with the aid of labor available within his farm
household; Second, to the actual occupants personally cultivating the land either as agricultural lessees or otherwise with
respect to the area under their cultivation; Third, to farmers falling under the preceding category who are cultivating
uneconomic-size farms with respect to idle or abandoned lands; Fourth, to owner-operators of uneconomic-size farms; and
Fifth, to such other categories as may be fixed by virtue of this Code, taking into consideration the needs and qualifications
of the applicants:
(4) To revise, approve, or reject any land reform proposal or project; and
(5) To proclaim in accordance with the provisions of this Code, which proclamation shall be considered as having been
promulgated immediately after three successive weekly publications in at least two newspapers of general circulation in the
region or locality affected by the proclamation, preference being given to local newspapers, if any, that all the government
machineries and agencies in any region or locality relating to leasehold envisioned in this Code are operating: Provided, That
the conversion to leasehold in the proclaimed area shall become effective at the beginning of the next succeeding
agricultural year after such promulgation: Provided, further, That the proclamation shall be made after having considered
factors affecting feasibility and fund requirements and the other factors embodied in Sections one hundred twenty-nine, one
hundred thirty and one hundred thirty-one.
Section 129. Creation of Land Reform Districts - The Council shall exercise the functions enumerated in the preceding Section for
particular areas which the Council shall select and designate as land reform districts. A district shall constitute one or more reform
projects, each project to comprise either a large landed estate or several areas within small estates. In the selection of a district,
the Council shall consider factors affecting the feasibility of acquiring for redistribution the areas within the district, including:
(1) The productivity of the area;
(2) Its suitability for economic family-size farms;
(3) The tenancy rate in the area;
(4) The minimum fixed capital outlay required to develop the area;
(5) The proximity of the area to resettlement projects; and
(6) The number of farmers that cultivate uneconomic-size farms, the ability and readiness of such farmers to be resettled,
and the availability of idle or abandoned lands that may be acquired or expropriated as well as of other resettlement facilities.
Section 130. Regional Land Reform Committee - For the purpose of implementing the program and policies of the Council on the
local level, the Council shall establish in each region of the Philippines a Regional Land Reform Committee which shall be
composed of the representatives of the agencies composing the National Land Reform Council and shall be under the
chairmanship of the representative of the Land Authority. The committee shall recommend to the Council such plans for projects
of land reform in its jurisdiction as it may deem appropriate. The Committee shall conduct public hearings, gather and analyze
data, estimate the essentials of such plans for projects or programs and consolidate its findings in a report to be submitted to the
Council for its consideration. The decision of the Council upon such projects or programs shall be returned to the Committee,
within thirty days from the submission thereof, for early implementation or execution by said Committee and the agencies
represented therein.
Section 131. Land Reform Project Team - The Regional Land Reform Committee shall direct and assign a Land Reform Project
Team for any project or projects within the region, to be composed of an appropriate number of personnel from the member-
agencies. The team shall be headed by a representative of the Land Authority designated by the Committee, but each agency
shall, in every case, be duly represented by at least one member in the Team. On the basis of national, regional, and local policies
and programs formulated and approved by the Council through the Committee, the Team shall determine (a) the suitability of any
area for redistribution into economic family-size farms; (b) the economic size of farm units; (c) the feasibility of acquiring and
distributing the area; (d) the willingness of the lessees to assume the responsibilities of ownership; and (e) the financial and other
requirements of the project. For this purpose, it shall gather data, obtain opinions, conduct surveys, pursue investigations, and
incorporate any information thus established in a development program for the area concerned to be submitted in the form of a
consolidated report to the Committee.
CHAPTER VIII
LAND CAPABILITY SURVEY AND CLASSIFICATION
Section 132. Land Survey to Conform to Legal Requirements - To provide the necessary basis for the implementation of the land
reform program formulated under this Code, the Land Authority is hereby authorized to undertake a land capability survey and
classification in cooperation with the relevant agencies that will be directly benefited by such survey and classification. The survey
shall be made to conform to the requirements of the Department of Agriculture and Natural Resources for implementation of
Agricultural programs and forestry inventory, of the Board of Technical Surveys and Maps, and of the National Economic Council
and other agencies for agricultural planning and other purposes.
Section 133. Cadastral Survey - To resolve the rights of landholders holding unregistered property, the Bureau of Lands is
directed to undertake an expanded cadastral survey and land registration program commencing within three months from the
passage of this Code.
Section 134. Costs of Fees and Charges - Notwithstanding any provisions of law to the contrary, the following rules shall apply
with respect to the costs, fees and charges in the survey, monumenting, and registration of lands of whatever description and
nature had in relation to cadastral proceedings undertaken by the National Government, either alone through its offices, agencies
and instrumentalities, or in conjunction with provincial and municipal governments.
Section 135. Apportionment of Cost of Survey - One-half of the cost of survey and monumenting and registration proceedings
shall be fully assessed and collected against each and all of the lots included in cadastral proceedings and shall be apportioned in
accordance with the area thereof, but in no case shall less than ten pesos be charged against each lot, the other half being
chargeable to the National Government. The amounts taxed against each of the lots or parcels of land shall be considered as a
special assessment of taxes against the respective parcels, shall constitute a first lien upon the land and shall be collected by the
Director of Lands or his duly authorized representatives in equal installments within a period of three years, bearing interest at the
rate of six per centum per annum. The first installment shall become due and payable at the same time as the general land taxes
for the year next succeeding the year in which the assessment of the cost shall be received by the Provincial Treasurer, and shall
be collected in the same manner as such general taxes. Each succeeding installment shall become due and payable at the same
time as the general land taxes for the corresponding current year and shall be collected in the same manner. The Director of
Lands shall for this purpose send to the officer in charge of such collection a copy of said assessment of costs: Provided,
however, That the amounts representing the proportional shares of the costs taxed against lots surveyed at the request and
expense of their owner and for which a plan other than the cadastral plan has been made by a duly authorized surveyor prior to
the decision in the cadastral proceeding, or which have been registered in accordance with the provisions of Act Numbered Four
hundred ninety-six, entitled "The Land Registration Act", or surveyed, patented, or leased under the Public Land and Mining Laws,
prior to the decision in the cadastral proceeding, or have been declared to the public lands by the Court, shall not constitute a lien
against said lot nor shall be collected from the owner thereof: Provided, further, That the owner of any lot may, if he so desires,
pay any installment of the costs taxed against his lot at any time before the same becomes due.
Section 136. Payment of Costs of Land in Its Entirety in Case of Transfer of Land - In case of the sale, transfer, or conveyance,
for a pecuniary consideration, of any property, or part thereof, registered by virtue of a decree issued in a cadastral proceeding,
prior to the payment of the total amount of the costs taxed against such property in accordance with the preceding Section
endorsed as an encumbrance or lien upon each cadastral certificate of title, the vendor or his legal representative shall pay such
costs in their entirety in case the order apportioning the costs has already been issued in the cadastral proceeding in which the
property being sold, transferred, or conveyed is included, and the register of deeds concerned shall demand of the vendor, before
registering the deed for such sale, transfer, or conveyance of said property, that he exhibit a receipt signed by the Director of
Lands or his duly authorized representative showing that such encumbrance or lien has been paid.
Section 137. Costs of Registration Proceedings - The costs of the registration proceedings under the provisions of this Code shall
consist of a sum equivalent to ten per centum of the costs of the survey and monumenting of the land. The amount of the costs of
the proceeding so taxed shall be for all services rendered by the Land Registration Commission and the clerk or his deputies in
each cadastral proceeding, and the expense of publication, mailing, and posting notice, as well as the notices of the decision and
the order apportioning the cost shall be borne by the Land Registration Commission.
Section 138. Laws Covering Survey and Registration of Land in Forces - Unless otherwise provided in this Chapter, all provisions
of law covering the survey and registration of land shall remain in full force and effect.
Section 139. Revolving Fund - All amounts collected by the Bureau of Lands or its duly authorized representatives from the
owners of the various lots as costs of proceedings, survey, and monumenting in relation to the cadastral survey program herein
described shall be paid into a Special Cadastral Program Revolving Fund to finance the cadastral land survey and registration of
other unregistered lands.
Section 140. Appropriation - To finance and support the expanded cadastral land survey and registration program set forth
herein, the amount of one hundred million pesos is hereby appropriated out of funds in the National Treasury not otherwise
appropriated, which amount shall be paid into a "Special Cadastral Program Revolving Fund", to finance the cadastral land survey
and registration of other unregistered areas.
CHAPTER IX
COURTS OF AGRARIAN RELATIONS
Section 141. Creation - Courts of Agrarian Relations are hereby organized and established throughout the Philippines in
conformity with the provisions of this Chapter.
Section 142. Regional Districts - Regional districts for the Courts of Agrarian Relations in the Philippines are constituted as
follows:
The first Regional District shall consist of the provinces of Cagayan, Batanes, Isabela and Nueva Vizcaya, with seat in
Tuguegarao, Cagayan for Branch I and in Ilagan, Isabela for Branch II;
The second Regional District, of the provinces of Ilocos Norte, Ilocos Sur, Abra, Mountain Province, La Union and the City of
Baguio, with seat in Laoag, Ilocos Norte for Branch I and in San Fernando, La Union for Branch II;
The third Regional District of the provinces of Pangasinan and Zambales, and the City of Dagupan, with seat in Lingayen,
Pangasinan for Branch I, in Tayug, Pangasinan for Branch II and in Iba, Zambales for Branch III;
The fourth Regional District, of the provinces of Nueva Ecija and Tarlac, and Cabanatuan City, with seat in Cabanatuan City
for Branch I, in Guimba, Nueva Ecija for Branch II, in Tarlac, Tarlac for Branch III and in Moncada, Tarlac for Branch IV;
The fifth Regional District, of the provinces of Pampanga, Bataan and Bulacan, with seat in Malolos, Bulacan for Branch I, in
San Fernando, Pampanga for Branch II, in Angeles, Pampanga for Branch III and in Balanga, Bataan for Branch IV;
The sixth Regional District, of the City of Manila, Quezon City, Pasay City, the province of Rizal, the City of Cavite, the
province of Cavite, the City of Tagaytay, Trece Martires City, and the province of Palawan, with seat in Manila for Branch I
(Executive Judge), in Cavite City for Branch II and in Pasig, Rizal for Branch III; The seventh Regional District, of the
province of Laguna, the City of San Pablo, the province of Batangas, the City of Lipa, and the provinces of Oriental Mindoro
and Occidental Mindoro, with seat in Los Baños, Laguna for Branch I, in Batangas, Batangas for Branch II and in Mamburao,
Mindoro Occidental for Branch III;
The eight Regional District, of the province of Quezon, the subprovince of Aurora, the City of Lucena, and the province of
Camarines Norte, with seat in the City of Lucena for Branch I and in Daet, Camarines Norte for Branch II;
The ninth Regional District, of the province of Camarines Sur, Naga City, Legaspi City and the provinces of Albay,
Catanduanes, Sorsogon and Masbate, with seat in Naga City for Branch I, in Legaspi City for Branch II and in Sorsogon,
Sorsogon for Branch III;
The tenth Regional District, of the province of Capiz, Roxas City, the provinces of Aklan, Romblon, Marinduque and Iloilo,
the City of Iloilo, and the province of Antique, with seat in the City of Iloilo for Branch I and in Roxas City for Branch II;
The eleventh Regional District, of the province of Occidental Negros, the Cities of Bacolod and Silay, the province of Oriental
Negros, Dumaguete City, and the subprovince of Siquijor, with seat in Bacolod City for Branch I, in Dumaguete City for
Branch II and in San Carlos City for Branch III;
The twelfth Regional District, of the province of Samar, the City of Calbayog, the province of Leyte, and the Cities of Ormoc
and Tacloban, with seat in Catbalogan, Samar for Branch I and in Ormoc City for Branch II;
The thirteenth Regional District, of the province of Cebu, the City of Cebu, and the province of Bohol, with seat in the City of
Cebu for Branch I and in Tagbilaran, Bohol for Branch II;
The fourteenth Regional District, of the provinces of Surigao and Agusan, Butuan City, the province of Oriental Misamis,
Cagayan de Oro City, the provinces of Bukidnon, Lanao del Sur and Lanao del Norte, and the Cities of Iligan and Marawi,
with seat in Cagayan de Oro City for Branch I and in Iligan City for Branch II;
The fifteenth Regional District, of the province of Davao the City of Davao, the provinces of Cotabato and Occidental
Misamis, Ozamiz City, the provinces of Zamboanga del Norte and Zamboanga del Sur, Zamboanga City, Basilan City and
the province of Sulu, with seat in the City of Davao for Branch I, Cotabato City for Branch II and Ozamiz City for Branch III.
Section 143. Judges of Agrarian Relations - The judicial function of the Courts of Agrarian Relations shall be vested in an
Executive Judge and the Regional District Judges, who shall be appointed from time to time, depending on the need for their
services, by the President of the Philippines with the consent of the Commission on Appointments: Provided, however, That the
Executive Judge and the eight Associate Judges, at the time of the approval of this Code, of the Court of Agrarian Relations
established and organized under Republic Act Numbered Twelve hundred and sixty-seven, shall continue as Agrarian Judges
without need of new appointments by the President of the Philippines and new confirmation of the Commission on Appointments:
Provided, further, That upon the approval of this Code, the said Executive Judge shall continue as such with authority to exercise
the usual administrative functions over the Court of Agrarian Relations not incompatible with the provisions of this Chapter and
shall have his office in Manila without prejudice to his holding court in any district where the requirements of the service so
warrant, and the eight Associate Judges shall be assigned as Regional District Judges by the Executive Judge to any of the
regional districts as constituted in the preceding Section.
Section 144. Qualifications of Judges; Tenure of Office; Compensation - No person shall be appointed as Executive Judge or
Regional District Judge unless he has been a citizen of the Philippines for ten years and has practiced law in the Philippines for a
period of not less than ten years or has held during a like period, within the Philippines, an office requiring admission to the
practice of law in the Philippines as an indispensable requisite.
Regional District Judges shall be appointed to serve during good behavior, until they reach the age of seventy years or become
incapacitated to discharge the duties of their office, unless sooner removed in accordance with law.
The judges may be suspended or removed in the same manner and upon the same grounds as judges of the Court of First
Instance:
The Executive Judge shall receive an annual compensation which shall be equal to that allowed or may hereafter be allowed for
judges of the Court of First Instance and the Regional District Judges shall receive an annual compensation of one thousand
pesos less than that of the Executive Judge.
Section 145. Leave Privileges; Traveling Expenses - Judges of the Courts of Agrarian Relations shall be entitled to same
retirement and leave privileges now granted or may hereafter be granted to judges of the court of First Instance. They shall be
entitled to traveling expenses when performing their duties outside official stations.
Section 146. Vacation of Courts of Agrarian Relations - The yearly vacation of Courts of Agrarian Relations shall begin with the
first of April and close with the first of June each year.
Section 147. Assignment of Judges to Vacation Duty - During the month of January of each year the Executive Judge shall issue
an order naming the judges who are to remain on duty during the court vacation of that year; and, consistently with the
requirements of the judicial service, the assignment shall be so made that no judge shall be assigned to vacation duty, unless
upon his own request, with greater frequency than once in two years.
Such order shall specify, in the case of each judge assigned to vacation duty, the territory over which in addition to his own district
his authority as vacation judge shall extend.
The Executive Judge may from time to time modify his order assigning the judges to vacation duty as newly arising conditions or
emergencies may require.
A judge assigned to vacation duty shall not ordinarily be required to hold court during such vacation; but the Executive Judge may,
when in his judgment the emergency shall require, direct any judge assigned to vacation duty to hold during the vacation a special
term of court in any district.
Section 148. Judges of Regional Districts - Four judges shall be commissioned for each of the fourth and fifth Regional Districts;
three judges shall be commissioned for each of the third, sixth, seventh, ninth, eleventh and fifteenth Regional Districts; and two
judges for each of the other Regional Districts.
Section 149. Oath of Office - Before entering upon the discharge of the duties of their office, the judges shall take and subscribe
to an oath of office in accordance with the provisions of Section twenty-three of the Revised Administrative Code.
Section 150. Division of Business Between Branches - All business appertaining to the Courts of Agrarian Relations of each
Regional District shall be equitably distributed among the judges of the branches in such manner as shall be agreed upon by the
judges themselves. Should the judges fail to agree on the distribution of business, then the Executive Judge shall make the
distribution.
Section 151. Judges' Certification as to Work Completed - The judges of the Courts of Agrarian Relations shall certify at the end
of each month that all petitions and motions in all cases pending decision or resolution for a period of thirty days from submission
by the parties have been determined and decided before the date of the making of the certificate. No leave shall be granted and
no salary shall be paid without such certificate.
Section 152. Official Station of Regional District Judges - Within thirty days after the approval of this Code, the Executive Judge
shall issue an order designating the official station of the judges of the branches of each of the Regional Districts.
Section 153. Time and Place of Holding Court - Sessions of the Court shall be convened on all working days when there are
cases ready for trial or other court business to be dispatched. The hours for the daily session of the Court shall be from nine to
twelve in the morning, and from three to five in the afternoon, except on Saturdays, when a morning session only shall be
required: but the judge may extend the hours of session whenever in his judgment it is proper to do so. The judge, in his
discretion, may order that but one session per day shall be held instead of two, at such hours as he may deem expedient for the
convenience both of the Court and of the public; but the number of hours that the Court shall be in session per day shall be not
less than five.
Sessions of the Court shall be held at the places of the official station of the respective judges: Provided, however, That whenever
necessary in the interest of speedy and inexpensive justice and litigation, a judge shall hold court in the municipality where the
subject matter of the dispute is located, utilizing the sala of the local justice of the peace court for this purpose.
A brief monthly report which shall be submitted within the first five days of the succeeding month showing the number and nature
of the cases tried in his sala, the place of hearing in each case, the progress of the litigation with corresponding dates and the
disposition made thereon shall be rendered by every judge under his signature and copies thereof shall be furnished the
Executive Judge, who shall compile and report in an appropriate form the decisions promulgated in important cases. A judge who
fails or neglects to make his report shall, upon first offense, be liable to warning by the Executive Judge, and upon repeated failure
or neglect may be suspended or removed from office.
Section 154. Jurisdiction of the Court - The Court shall have original and exclusive jurisdiction over:
(1) All cases or actions involving matters, controversies, disputes, or money claims arising from agrarian relations: Provided,
however, That all cases still pending in the Court of Agrarian Relations, established under Republic Act Numbered Twelve
hundred and sixty-seven, at the time of the effectivity of this Code, shall be transferred to and continued in the respective
Courts of Agrarian Relations within whose district the sites of the cases are located;
(2) All cases or actions involving violations of Chapters I and II of this Code and Republic Act Number Eight hundred and
nine; and
(3) Expropriations to be instituted by the Land Authority: Provided, however, That expropriation proceedings instituted by the
Land Tenure Administration pending in the Court of First Instance at the time of the effectivity of this Code shall be
transferred to and continued in the respective Courts of Agrarian Relations within whose district the subject matter or
property is located.
Section 155. Powers of the Court; Rules and Procedures - The Courts of Agrarian Relations shall have all the powers and
prerogatives inherent in or belonging to the Court of First Instance.
The Courts of Agrarian Relations shall be governed by the Rules of Court: Provided, That in the hearing, investigation and
determination of any question or controversy pending before them, the Courts without impairing substantial rights, shall not be
bound strictly by the technical rules of evidence and procedure, except in expropriation cases.
Section 156. Appeals - Appeals from an order or decision of the Courts of Agrarian Relations may be taken to the Court of
Appeals on questions of fact and of fact and law or to the Supreme Court on pure questions of law, as the case may be, in
accordance with rules governing appeals from the Court of First Instance as provided in the Rules of Court.
Section 157. Detail of Judges to Another District - Whenever any judge in any of the Court shall certify to the Executive Judge
that the condition of the docket in his Court is such as to require the assistance of an additional judge, or when there is any
vacancy in any Court, the Executive Judge may, in the interest of justice, with the approval of the Supreme Court, assign any
judge of the Court of Agrarian Relations whose docket permits his temporary absence from said Court, to hold session in the
Court needing such assistance or where such vacancy exists.
Whenever a judge appointed or assigned in any branch of the Court shall leave his district by transfer or assignment to another
Court of equal jurisdiction without having decided a case totally heard by him and which was duly argued or opportunity given for
argument to the parties of their counsel, it shall be lawful for him to prepare and sign his decision in said case anywhere within the
Philippines and send the same by registered mail to the clerk of court to be filed in the Court as of the date when the same was
received by the clerk, in the same manner as if the judge had been present in the Court to direct the filing of the judgment:
Provided, however, That if a case has been heard only in part, the Supreme Court, upon petition of any of the interested parties to
the case and the recommendation of the respective district judge, may also authorize the judge who has partly heard the case to
continue hearing and to decide said case notwithstanding his transfer or appointment to another court of equal jurisdiction.
Section 158. Personnel of the Courts of Agrarian Relations -
(1) Court Commissioners; Qualifications and Compensation - There shall be twenty-four Court Commissioners who shall
receive an annual compensation of nine thousand pesos each and shall be appointed by the President with the consent of
the Commission on Appointments. A Court Commissioner shall be a member of the Philippine Bar and must have been
engaged in the practice of law for five years or must have held a position in the government requiring the qualifications of a
lawyer for the same period. A Court Commissioner may be assigned by the Executive Judge to assist in the hearing and
investigation of cases. Subject to the latter's direction and supervision, he may hear evidence for the Court on any disputed
point or issue in any given case or cases and shall after said hearing submit a report of all the cases heard by him together
with the records thereof within the period prescribed by the Court. During the hearing he may rule upon questions of pleading
and procedure but not on the merits of the case.
(2) Clerks of Court; Qualifications, Duties, Compensation and Bond - There shall be as many Clerks of Court as there are
judges, who shall be appointed by the President of the Philippines with the consent of the Commission on Appointments.
Deputy Clerks of Court and such other employees as may be required shall be appointed by the Executive Judge, subject to
Civil Service law, rules and regulations.
No person shall be eligible for appointment as Clerk of Court unless he is duly authorized to practice law in the Philippines.
Before entering upon the discharge of the duties of his office, he shall file a bond in the amount of ten thousand pesos in the same
manner and form as required of the Clerk of the Supreme Court, such bond to be approved by, and filed with, the Treasurer of the
Philippines and shall be subject to inspection by interested parties. The Clerk of Court shall require his deputy to give an adequate
bond as security against loss by reason of his wrong-doing or gross negligence.
The Clerks of Court shall each receive an annual compensation of seven thousand two hundred pesos. They shall exercise the
same powers and perform the same duties on all matters within the jurisdiction of the Courts as those exercised by the Clerks of
Court of the Courts of First Instance.
Clerks of Courts and other subordinate employees of the Courts of Agrarian Relations shall, for administrative purposes, belong to
the Department of Justice; but in the performance of their duties, they shall be subject to the supervision of the judges of the Court
to which they respectively pertain.
The Commissioners, otherwise known as Hearing Officers of the Court of Agrarian Relations, as well as the Clerks of Court at the
time of the approval of this Code, shall continue as such without the need of new appointment by the President of the Philippines
and new confirmation by the Commission on Appointments.
Section 159. Appropriation - There is hereby appropriated the sum of three million five hundred thousand pesos, or so much
thereof as may be necessary, out of the unappropriated funds in the Philippine Treasury for expenses for courtrooms and court
offices, including equipment for the Courts and their personnel, for salaries, and for other necessary expenses that may be
incurred in carrying out the provisions of this Chapter. The amount appropriated shall be carried in succeeding appropriations for
the Courts of Agrarian Relations.
CHAPTER X
OFFICE OF AGRARIAN COUNSEL
Section 160. Creation of Office of Agrarian Counsel - To strengthen the legal assistance to agricultural lessees and agricultural
owner-cultivators referred to in this Code, the Tenancy Mediation Commission is hereby expanded and shall hereafter be known
as the Office of the Agrarian Counsel. The head of the Office shall hereafter be known as Agrarian Counsel and shall have the
rank, qualifications and salary of First Assistant Solicitor General. He shall be assisted by a Deputy Agrarian Counsel, who shall
have the rank, qualifications and salary of Assistant Solicitor General. The Agrarian Counsel and Deputy Agrarian Counsel shall
be appointed by the President with the consent of the Commission on Appointments of Congress and shall be under the direct
supervision of the Secretary of Justice.
Section 161. Special Attorneys - There is hereby created in the Office of the Agrarian Counsel eighty additional positions of
Special Attorneys, who shall be appointed by the President upon recommendation of the Secretary of Justice and with the consent
of the Commission on Appointments. They shall have the rank, qualifications and salary provided by law for a solicitor in the Office
of the Solicitor General with the lowest rank.
Section 162. Appointment of Subordinate Officials - The Agrarian Counsel shall appoint the subordinate officials and employees
of the Office of Agrarian Counsel, subject to civil service rules and regulations, fix their compensation and prescribe their duties.
The compensation of special attorneys transferred to the Office of Agrarian Counsel shall be fixed on salary scales corresponding
to solicitors of the Office of the Solicitor General: Provided, That in the fixing of their salary seniority in rank shall be taken into
account.
The Agrarian Counsel shall have the power to organize such divisions and sections as will insure maximum efficiency of the
Office.
Section 163. Functions of the Office of Agrarian Counsel - It shall be the responsibility of the Office of the Agrarian counsel, upon
proper notification by the party concerned or by the association or organization to which belongs, to represent agricultural lessees,
agricultural farm workers and agricultural owner-cultivators referred to in this Code who cannot engage the services of competent
private counsel in cases before the Court of Agrarian Relations.
Section 164. Authority to Administer Oath - The Agrarian Counsel, the Deputy Agrarian Counsel and the Special Attorneys of the
Office of Agrarian Counsel are hereby authorized to administer oaths free of charge.
Section 165. Appropriations - There is hereby appropriated, in addition to the appropriation of the Tenancy Mediation Commission
for Fiscal Year 1964, the sum of three million pesos, or so much thereof as may be necessary, out of the unappropriated funds in
the National Treasury, for salaries, wages, purchase of motor vehicles, supplies, equipment, and other sundry expenses. The
amount appropriated herein shall be carried in the appropriations for the Office of the Agrarian Counsel in the General
Appropriations Acts for succeeding fiscal years.
CHAPTER XI
GENERAL PROVISIONS
Section 166. Definition of Terms - As used in Chapter I of this Code:
(1) "Agricultural Land" means land devoted to any growth, including but not limited to crop lands, salt beds, fish ponds, idle
land and abandoned land as defined in paragraphs 18 and 19 of this Section, respectively.
(2) "Agricultural lessee" means a person who, by himself and with the aid available from within his immediate farm
household, cultivates the land belonging to, or possessed by, another with the latter's consent for purposes of production, for
a price certain in money or in produce or both. It is distinguished from civil lessee as understood in the Civil Code of the
Philippines.
(3) "Agricultural lessor" means a person, natural or juridical, who, either as owner, civil law lessee, usufructuary, or legal
possessor, lets or grants to another the cultivation and use of his land for a price certain.
(4) "Agricultural year" means the period of time required for raising a particular agricultural product, including the preparation
of the land, sowing, planting and harvesting of crops and, whenever applicable, threshing of said crops: Provided, however,
That in case of crops yielding more than one harvest from planting, "agricultural year" shall be the period from the
preparation of the land to the first harvest and thereafter from harvest to harvest. In both cases, the period may be shorter or
longer than a calendar year.
(5) "Court" means the Court of Agrarian Relations.
(6) Fair rental value" means the value not in excess of allowable depreciation plus six per cent interest per annum on the
investment computed at its market value: Provided, That the fair rental value for work animal or animals and farm
implements used to produce the crop shall not exceed five per cent of the gross harvest for the work animal or animals and
five per cent for implements.
(7) "Farm implements" means hand tools or machines ordinarily employed in a farm enterprise.
(8) "Immediate farm household" means the members of the family of the lessee or lessor and other persons who are
dependent upon him for support and who usually help him in his activities.
(9) "Incapacity" means any cause or circumstance which prevents the lessee from fulfilling his contractual and other
obligations under this Code.
(10) "Inspect" means to enter, examine and observe. Under no circumstance, however, shall such entrance, examination
and observation be utilized to commit any act of intimidation or coercion nor shall it be utilized to impair the civil rights of the
individuals affected.
(11) "Proven farm practices" means sound farming practices generally accepted through usage or officially recommended by
the Agricultural Productivity Commission for a particular type of farm.
(12) "Work animals" means animals ordinarily employed in a farm enterprise, such as carabaos, horses, bullocks, etc.
(13) "Personal cultivation" means cultivation by the lessee or lessor in person and/or with the aid of labor from within his
immediate household.
As used in Chapter II:
(14) "Farm employer" includes any person acting directly or indirectly in the interest of a farm employer whether for profit or
not, as well as a labor contractor, but shall not include any labor organization (otherwise than when acting as a farm
employer) or anyone acting in the capacity of an officer or agent of such labor organization.
(15) "Farm worker" includes any agricultural wage, salary or piece but is not limited to a farm worker of a particular farm
employer unless this Code explicitly states otherwise and any individual whose work has ceased as a consequence of, or in
connection with, a current agrarian dispute or an unfair labor practice and who has not obtained a substantially equivalent
and regular employment.
Whenever the term "farm worker" is used in this Code, it shall be understood to include farm laborer and/or farm employee.
(16) "Farm workers' organization" includes any union or association of farm workers which exists, in whole or in part, for the
purpose of collective bargaining or dealing with farm employers concerning terms and conditions of employment.
(17) "Agrarian dispute" means any controversy relating to terms, tenure or conditions of employment, or concerning an
association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or
conditions of employment, regardless of whether the disputants stand in the proximate relation of farm employers and
employees.
As used in Chapter III of this Code:
(18) "Idle lands" means land not devoted directly to any crop or to any definite economic purpose for at least one year prior
to the notice of expropriation except for reasons other than force majeure or any other fortuitous event but used to be
devoted or is suitable to such crop or is contiguous to land devoted directly to any crop and does not include land devoted
permanently or regularly to other essential and more productive purpose.
(19) "Abandoned lands" means lands devoted to any crop at least one year prior to the notice of expropriation, but which
was not utilized by the owner for his benefit for the past five years prior to such notice of expropriation.
(20) "Economic family-sized farm units" means an area of farm land that permits efficient use of labor and capital resources
of the farm family and will produce an income sufficient to provide a modest standard of living to meet a farm family's needs
for food, clothing, shelter, and education with possible allowance for payment of yearly installments on the land, and
reasonable reserves to absorb yearly fluctuations in income.
(21) "Suitably for economic family-size farm" refers to situations where a parcel of land whose characteristics, such as
climate, soil, topography, availability of water and location, will support a farm family if operated in economic family-size farm
units and does not include those where large-scale operations will result in greater production and more efficient use of land.
(22) "Agricultural owner-cultivator" means any person who, providing capital and management, personally cultivates his own
land with the aid of his immediate family and household.
(23) "Owner-manager" means the owner of a parcel of land devoted to agricultural production who provides the capital and
management in the farm enterprise.
(24) "Labor administration" means cases where farm workers are employed wholly in the agricultural production.
(25) "Share tenancy" as used in this Code means the relationship which exists whenever two persons agree on a joint
undertaking for agricultural production wherein one party furnishes the land and the other his labor, with either or both
contributing any one or several of the items of production, the tenant cultivating the land personally with the aid of labor
available from members of his immediate farm household, and the produce thereof to be divided between the landholder and
the tenant.
(26) "Tax free" in reference to bonds and shares of stock issued by the Land Bank as payment for acquired private
agricultural land shall mean all government taxes, except gift tax and inheritance tax.
Section 167. Penal Provisions -
(1) Violation of the provisions of Section thirteen and twenty-seven and paragraph 1 of Section thirty-one of this Code shall
be punished by a fine not exceeding one thousand pesos or imprisonment not exceeding one year or both in the discretion
of the court. In case of juridical persons, the manager or the person who has charge of the management or administration of
the property or, in his default, the person acting in his stead, shall be liable under this Section.
(2) Any person, natural or juridical, who induces another, as tenant, to execute or enter into a share tenancy contract with
himself or with another in violation of this Code shall be punished by a fine not exceeding five thousand pesos with
subsidiary imprisonment in accordance with the Revised Penal Code: Provided, That the execution of a share tenancy
contract shall be considered prima facie evidence of such inducement as to the owner, civil law lessee, usufructuary or legal
possessor. In case of juridical persons, the manager or the person who has charge of the management or administration of
the property or, in his default, the person acting in his stead, shall be liable under this Section.
(3) Any person who executes an affidavit as required by Section thirteen of Chapter I, knowing the contents thereof to be
false, shall be punished by a fine not exceeding one thousand pesos or imprisonment of not more than one year, or both, in
the discretion of the court.
(4) Any person who wilfully violates the provisions of Sections forty and forty-one of this Code shall be punished by a fine of
not less than one hundred pesos nor more than one thousand pesos or by imprisonment of not less than one month nor
more than one year, or both such fine and imprisonment, in the discretion of the court. If any violation of Sections forty and
forty-one of this Code is committed by a corporation, partnership or association, the manager or, in his default, the person
acting as such when the violation took place shall be criminally responsible.
(5) Any person who wilfully violates the provisions of Section forty-two of this Code shall, upon conviction thereof, be subject
to a fine of not more than two thousand pesos, or upon second conviction, to imprisonment of not more than one year or
both such fine and imprisonment, in the discretion of the court. If any violation of the provisions of Section forty-two of this
Code is committed by a corporation, partnership or association, the manager or, in his default, the person acting as such
when the violation took place shall be criminally responsible.
Section 168. Pending Application for Mechanization - Any provision of this Code to the contrary notwithstanding, any application
for mechanization where corresponding certifications for suitability for mechanization and for availability for resettlement by the
Agricultural Tenancy Commission and the National Resettlement and Rehabilitation Administration, respectively, have been
issued and proper notices served on the tenants at least two months prior to the approval of this Code shall be given due course
and decided in accordance with the pertinent provisions and requirements of Republic Act Numbered Eleven hundred and ninety-
nine, as amended.
Section 169. Personnel of Reorganized or Abolished Agencies - Permanent officials and employees of all existing government
agencies which are abolished or reorganized under this Code, subject to Civil Service Rules and regulations, shall be absorbed
and shall not be divested of their positions except presidential appointees: Provided, That those presidential appointees who
cannot be absorbed and such officials and employees who prefer to be laid-off shall be given gratuity equivalent to one month
salary for every year of service but in no case more than twenty-four month's salary, in addition to all benefits to which they are
entitled under existing laws and regulations.
To carry out the provisions of this Section, there is hereby appropriated the sum of five hundred thousand pesos out of the
unappropriated funds in the National Treasury.
Section 170. Budgeting and Disbursing of Appropriated Funds - Any provision of this Code or of any existing law to the contrary
notwithstanding, not more than sixty per centum of the specific appropriations provided in this Code for operating expenditures
shall be used for personnel services: Provided, That in the case of the appropriations for the Agricultural Productivity Commission
not more than twenty per centum shall be spent for office personnel and other administrative expenses thereof: Provided, further,
That the total operating expenditures of the Agricultural Credit Administration shall not exceed three per centum of its total
capitalization in addition to the allowance for losses under Section one hundred ten: Provided, furthermore, That all unexpended
balances of all appropriations provided in this Code for operating expenditures shall revert to the National Treasury at the end of
the fiscal year in conformity with the provisions of Section twenty-three of Republic Act Numbered Nine hundred ninety-two: And
provided, finally, That all the financial requirements of the various agencies established in this Code for their operation except the
Land Bank and the Agricultural Credit Administration shall be proposed in the President's budget in order that such appropriation
as may be necessary therefor may be provided in the General Appropriation Acts for the succeeding fiscal years.
Section 171. Separability of Provisions - If, for any reason, any section or provision of this Code shall be questioned in any court,
and shall be held to the unconstitutional or invalid, no other section or provision of this Code shall be affected thereby.
Section 172. Prior Inconsistent Laws - All laws or parts of any law inconsistent with the provisions of this Code are hereby
repealed.
Section 173. Effective Date - This Code shall take effect upon its approval.
Approved: August 8, 1963
EXECUTIVE ORDER NO. 129-A July 26, 1987
MODIFYING ORDER NO. 129 REORGANIZING AND STRENGTHENING THE DEPARTMENT OF AGRARIAN REFORM AND
FOR OTHER PURPOSES
WHEREAS, Executive Order No. 129 dated January 30, 1987 was suspended;
WHEREAS, Presidential Proclamation No. 131 and Executive Order No. 229, both dated July 22, 1987 instituted a
Comprehensive Agrarian Reform Program (CARP) and provided the mechanisms for its implementation;
WHEREAS, Executive Order No. 229 vests on the Department of Agrarian Reform quasi-judicial powers to determine and
adjudicate agrarian reform matters;
WHEREAS, there is a need to strengthen and expand the functions of the Department of Agrarian Reform to be more effective in
implementing the Comprehensive Agrarian Reform Program;
WHEREAS, under Article XVIII, Section 6, of the 1987 Constitution, the President shall continue to exercise legislative powers
until the First Congress convenes;
NOW, THEREFORE, I, CORAZON C. AQUINO, PRESIDENT OF THE PHILIPPINES, by virtue of the powers vested in me by the
Constitution, do hereby order:
Sec. 1. Title. This Executive Order shall otherwise be known as the Reorganization Act of the Department of Agrarian Reform.
Sec. 2. Reorganization. The Department of Agrarian Reform is hereby reorganized structurally and functionally, hereinafter
referred to as the Department, in accordance with the provisions of this Executive Order.
Sec. 3. Declaration of Policy. It is the declared policy of the State of completely abolish all remnants of feudalism and all other
types of unjust tenurial arrangements, implement the comprehensive agrarian reform program, increase the productivity of the
direct producers, and strengthen the agricultural base for increased industrialization.
Pursuant to this policy, the State shall:
a) Establish owner-cultivated economic, family-size farms and collectively-owned/cooperatively-cultivated farms as the
foundation of Philippine agriculture;
b) Prohibit absentee land ownership;
c) Rechannel and divert landlord capital in agriculture to industrial development;
d) Assist in the preservation and conservation of prime lands for agricultural purposes;
e) Encourage the establishment and protect the autonomy and independence of institutions of farmers and farmworkers that
will safeguard their interests and ensure their dignified existence, free from pernicious restraints and practices;
f) Create just and viable socio-economic structures in agriculture conducive to greater productivity and higher incomes
through the cooperative system of production, processing, marketing, distribution, and credit services;
g) Accelerate the disposition of public alienable, disposable, and cultivable land to actual cultivators and other qualified
beneficiaries and develop agrarian communities for full utilization of land for human growth and development;
h) Institutionalize partnerships between government and organizations of farmers and farmworkers in agrarian reform policy
formulation, program implementation, and evaluation;
i) Provide specific investment opportunities, alternative employment, and other incentives for landowners affected by
agrarian reform;
j) Ensure adequate funding support for the agrarian reform program as well as timely, affordable, and appropriate financing
schemes to its beneficiaries;
k) Implement an agricultural land tax scheme that will prevent land hoarding and/or speculation.
Sec. 4. Mandate. The Department shall be responsible for implementing the Comprehensive Agrarian Reform Program and, for
such purpose, it is authorized to:
a) Acquire, determine the value of, subdivide into family-size farms or organize into collective of cooperative farms and
develop private agricultural lands for distribution to qualified tillers, actual occupants, and displaced urban poor;
b) Administer and dispose all cultivable portions of the public domain declared as alienable and disposable for agricultural
purposes transferred to it by the Department of Environment and Natural Resources;
c) Acquire, by purchase or grant, real estate properties suited for agriculture that have been foreclosed by the national
government;
d) Undertake land consolidation, land reclamation, land forming, and conservation in areas subject to agrarian reform;
e) Facilitate the compensation of landowners covered by agrarian reform;
f) Issue emancipation patents to farmers and farmworkers who have been given lands under the agrarian reform program as
may be provided for by law;
g) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts and land tenure problems;
h) Develop and implement alternative land tenure systems such as cooperative farming and agro-industrial estates, among
others;
i) Undertake land use management and land development studies and projects in agrarian reform areas;
k) Approve or disapprove the conversion, restructuring or readjustment of agricultural lands into non-agricultural uses;
l) Monitor and evaluate the progress of agrarian reform implementation;
m) Assist the Office of the Solicitor General in providing evidence for the reversion proceedings to be filed with respect to
lands of the public domain, occupied by private individuals and their tenants or farmworkers which are subject to land reform,
and real rights connected therewith which have been acquired in violation of the Constitution or the public land laws or
through corrupt practices;
n) Submit progress reports to the Office of the President, to Congress, and to the people at the end of each year and at all
times make available to the general public information on the current status of its programs.
Sec. 5. Powers and Functions. Pursuant to the mandate the Department, and in order to ensure the successful implementation of
the Comprehensive Agrarian Reform Program, the department is hereby authorized to:
a) Advise the President and the Presidential Agrarian Reform Council on the promulgation of executive/administrative
orders, other regulative issuances and legislative proposals designed to strengthen agrarian reform and protect the interests
of the benefeciaries thereof;
b) Implement all agrarian laws, and for this purpose, punish for contempt and issue subpoena, subpoena duces tecum, writs
of execution of its decisions, and other legal processes to ensure successful and expeditious program implementation; the
decisions of the Department may in proper cases, be appealed to the Regional Trial Courts but shall be immediately
executory notwithstanding such appeal;
c) Establish and promulgate operational policies, rules and regulations and priorities for agrarian reform implementation;
d) Coordinate program implementation with the Land Bank of the Philippines and other relevant civilian and military
government agencies mandated to support the agrarian reform program;
e) Acquire, administer, distribute, and develop agricultural lands for agrarian reform purposes;
f) Undertake surveys of lands covered by agrarian reform;
g) Issue emancipation patents to farmers and farmworkers covered by agrarian reform for both private and public lands and
when necessary make administrative corrections of the same;
h) Provide free legal services to agrarian reform beneficiaries and resolve agrarian conflicts and land-tenure related
problems as may be provided for by law;
i) Promote the organization and development of cooperatives and other associations of agrarian reform beneficiaries;
j) Conduct continuing education and promotion programs on agrarian reform for beneficiaries, land-owners, government
personnel, and the general public;
k) Institutionalize the participation of farmers, farmworkers, other beneficiaries, and agrarian reform advocates in agrarian
reform policy formulation, program implementation, and evaluation;
l) Have exclusive authority to approve or disapprove conversion of agricultural lands for residential, commercial, industrial,
and other land uses as may be provided for by law;
m) Call upon any government agency, including the Armed Forces of the Philippines, and non-governmental organizations
(NGOs) to extend full support and cooperation to program implementation;
n) Exercise such other powers and functions as may be provided for by law or directed by the President, to promote
efficiency and effectiveness in the delivery of public services.
Sec. 6. Structural Organization. The Department shall consist of the Department Proper, the staff offices, the staff bureaus and the
regional/provincial/municipal agrarian reform offices.
The Department Proper shall consist of the following:
a) Office of the Secretary;
b) Offices of the Undersecretaries;
c) Offices of the Assistant Secretaries;
d) Public Affairs Staff;
e) Special Concerns Staff;
f) Agrarian Reform Adjudication Board.
The staff sectoral bureaus, on the other hand, shall be composed of:
a) Bureau of Land Acquisition and Distribution;
b) Bureau of Land Development;
c) Bureau of Agrarian Legal Assistance;
d) Bureau of Agrarian Reform Information and Education;
e) Bureau of Agrarian Reform Beneficiaries Development.
The field offices shall consist of the Department regional offices, the provincial offices and the municipal agrarian reform office.
Sec. 7. Secretary of Agrarian Reform. The authority and responsibility for the exercise of the mandate of the Department and the
discharge of its powers and functions shall be vested in the Secretary of Agrarian Reform, hereinafter referred to as Secretary,
who shall have supervision and control over the Department and shall be appointed by the President.
Sec. 8. Office of the Secretary. The Office of the Secretary shall consist of the Secretary, his immediate staff, the Public Affairs
Staff and the Special Concerns Staff.
Sec. 9. Undersecretary. The Secretary shall be assisted by four (4) Undersecretaries who shall be appointed by the President
upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate, assign and/or reassign the
respective functional areas of responsibility of the Undersecretaries, provided, That such responsibility shall be with respect to the
mandate and objectives of the Department; and provided, Further, that no Undersecretary shall be assigned primarily
administrative responsibilities.
Sec. 10. Assistant Secretary. The Secretary and the Undersecretaries shall also be assisted by seven (7) Assistant Secretaries,
who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to
delineate, assign and/or reassign the respective functional areas of responsibility of the Assistant Secretaries, provided, That such
responsibility shall be with respect to the mandate and objectives of the Department.
Sec. 11. Public Affairs Staff. There is hereby created a Public Affairs Staff, under the office of the Secretary, to be headed by a
Director and assisted by an Assistant Director, which shall serve as the public information arm of the Department. It shall be
responsible for disseminating information and agrarian reform policies, plans, programs and projects; and respond to public
queries related to the implementation of the agrarian reform program.
Sec. 12. Special Concerns Staff. There is hereby created a Special Concerns Staff under the Office of the Secretary, to be
headed by a Director and assisted by an Assistant Director, which shall be responsible for handling priority areas/subjects
identified by the Secretary that necessitate special and immediate attention.
Sec. 13. Agrarian Reform Adjudication Board. There is hereby created an Agrarian Reform Adjudication Board under the Office of
the Secretary. The Board shall be composed of the Secretary as Chairman, two (2) Undersecretaries as may be designated by
the Secretary, the Assistant Secretary for Legal Affairs, and three (3) others to be appointed by the President upon the
recommendation of the Secretary as members. A Secretariat shall be constituted to support the Board. The Board shall assume
the powers and functions with respect to the adjudication of agrarian reform cases under Executive Order No. 229 and this
Executive Order. These powers and functions may be delegated to the regional offices of the Department in accordance with rules
and regulations to be promulgated by the Board.
Sec. 14. Planning and Project Management Office. There is hereby created a Planning and Project Management Office within the
Department Proper which shall be responsible for coordinating and initiating the development, integration and prioritization of
plans, programs and projects of the Department; monitoring and evaluating agrarian reform program implementation; establishing
linkages with foreign funding institutions; and coordinating the activities of the different Offices, Bureaus and Attached Agencies of
the Department.
Sec. 15. Policy and Strategic Research Office. There is hereby created a Policy and Strategic Research Office within the
Department Proper which shall be responsible for establishing and implementing a computerized management information system
as well as for coordinating and/or initiating research and studies for planning and policy formulation purposes.
Sec. 16. Finance, Management and Administrative Office. There is hereby created a Finance, Management and Administrative
Office within the Department Proper which shall be responsible for the proper and timely allocation of funds to support approved
programs, projects and activities; the appropriate management control and accounting of funds; the management of the
Department's physical assets; and the provision of services to ensure effective and efficient personnel management and
manpower career development, and for the establishment of management systems and procedures.
Sec. 17. Field Operations Office. There are hereby created Field Operations Offices for Luzon, Visayas and Mindanao within the
Department Proper which shall monitor and assess the implementation of the Department's policies, plans and programs at the
regional, provincial and municipal levels.
Sec. 18. Legal Affairs Office. There is hereby created a Legal Affairs Office within the Department Proper which shall be
responsible for the review of contracts and other legal matters, the rendition of legal assistance to Department personnel and
those who will be affected by the agrarian reform program.
Sec. 19. Bureau of Land Acquisition and Distribution. There is hereby created the Bureau of Land Acquisition and Distribution
which shall absorb the relevant functions of the Bureaus of Land Acquisition, Distribution and Development, and of Land Tenure
Improvement. The Bureau of Land Acquisition and Distribution, to be headed by a Director and assisted by an Assistant Director,
shall be responsible for the development of policies, plans, programs, standard operating procedures, and for providing technical
assistance, relative to the acquisition and distribution of private agricultural lands covered by the agrarian reform program,
including land tiller-landowner identification, land valuation, and landowners compensation, transfer of ownership to actual tillers,
leasehold arrangements, stewardship, and land transfer actions.
Sec. 20. Bureau of Land Development. There is hereby created the Bureau of Land Development which shall absorb the relevant
functions of the Bureau of Land Acquisition, Distribution and Development. The Bureau of Land Development, to be headed by a
Director and assisted by an Assistant Director, shall responsible for the development of policies, plans and programs, and for
providing technical assistance, relative to land surveys, land use, capability and classification, engineering services, and land
consolidation.
Sec. 21. Bureau of Agrarian Legal Assistance. The Bureau of Agrarian Legal Assistance shall be strengthened and shall be
responsible for developing guidelines, plans and programs for legal assistance including developing, maintaining and coordinating
para-legal services for those who will be affected by the Comprehensive Agrarian Reform Program. It shall be headed by a
Director and assisted by an Assistant Director.
Sec. 22. Bureau of Agrarian Reform Information and Education. There is hereby created the Bureau of Agrarian Reform
Information and Education which shall absorb the functions of the Agrarian Reform Education Service which is abolished by this
Executive Order. The Bureau of Agrarian Reform Information and Education, to be headed by a Director and assisted by an
Assistant Director, shall be responsible for developing and conducting continuing training and education programs for the
acquisition of knowledge, value formation, and development of skills and favorable attitudes among benefeciaries and personnel
of the Department and other agencies, and the increase of awareness, participation and acceptance of agrarian reform by the
public through the dissemination of information and communication materials.
Sec. 23. Bureau of Agrarian Reform Benefeciaries Development. There is hereby created the Bureau of Agrarian Reform
Beneficiaries Development which shall absorb the relevant functions of the Bureau of Resettlement. The Bureau of Agrarian
Reform Beneficiaries Development, to be headed by a Director and assisted by an Assistant Director, shall be responsible for the
development of policies, plans and programs, and for providing technical assistance, relative to the development of settlement
areas into viable agrarian communities. It shall also be responsible for promoting the organization of agrarian reform beneficiaries,
liaison with farmer and farm workers organizations to ensure the raising or farm incomes, the promotion of all forms of farm
cooperation, the achievement of a dignified existence and the creation of a viable economic structure conducive to greater
productivity and higher farm income.
Sec. 24. Regional Offices The Department shall have twelve (12) Regional Offices. Each Regional Office shall be headed by a
Regional Director who shall be assisted by an Assistant Regional Director for operations and an Assistant Regional Director for
Administration.
The Regional Offices shall be responsible for the implementation of laws, policies, plans, programs, projects, rules and regulations
of the Department in its administrative region. For such purpose, it shall have the following functions:
a) Prepare and submit plans and programs for the region on:
1) Land acquisition and distribution;
2) Information and education;
3) Land use management and land development;
4) Agrarian reform beneficiaries development;
b) Provide technical assistance to Provincial Offices and Municipal Agrarian Reform Offices in the implementation of
approved plans and programs;
c) Conduct operations research and evaluation of agrarian reform implementation within the region;
d) Coordinate with other government and private agencies and farmer and farm workers organizations at the regional level,
to carry out the programs/projects for the general welfare of agrarian reform beneficiaries;
e) Maintain an information system in coordination with the established monitoring systems;
f) Review and evaluate reports and other documents submitted by the Provincial Offices and Municipal Agrarian Reform
Offices and agrarian reform clientele;
g) Submit periodic feedback as may be necessary in the service of the Department's clientele.
Sec. 25. Provincial Offices. The Agrarian Reform District Offices are hereby abolished and in their stead the Department shall
create Provincial Agrarian Reform Offices as may be necessary in promoting efficiency and effectiveness in the delivery of its
services. Each Provincial Agrarian Reform Office shall be headed by a Provincial Agrarian Reform Officer.
The Provincial Agrarian Reform Offices shall be responsible for directing and coordinating the operations and activities of the
Municipal Agrarian Reform Offices operating within the province and has the following functions:
a) Set priorities, specific targets, schedules, and deadlines for the execution of approved plans, programs, and projects on:
1) Land acquisition, distribution, transfer of land ownership to actual tillers, including land-tiller-landowner identification,
tenurial security, leasehold arrangements, land surveys, land valuation and landowner's compensation as may be
provided for by law;
2) Continuing information and education programs on agrarian reform;
3) Encouraging the organizational development of agrarian reform beneficiaries cooperatives and other associations
and institutionalizing farmer-government partnership in agrarian reform policy formulation, program implementation,
and evaluation;
4) Landowners' compensation and rechanneling landowner capital to industrial development;
5) Development and implementation of alternative land tenure systems such as cooperative farming, cooperative
cultivatorship schemes, and agro-industrial estates, among others;
6) Land use management;
7) Compact farming, integrated farming system, sloping agricultural land technology, and other land conservation
measures in agrarian reform areas, in coordination with farmer and farm workers organizations;
8) Provision of legal services to those affected by agrarian reform and resolution of agrarian conflicts and land tenure
problems;
b) Provide administrative services to the Municipal Agrarian Reform Offices within the province;
c) Provide legal services to agrarian reform beneficiaries in cases arising from or connected with agrarian reform disputes,
handling of expropriation proceedings, registering cooperatives and reviewing and acting on all matters initially investigated
and elevated by Municipal Agrarian Reform Office;
d) Provide technical assistance to Municipal Agrarian Reform Offices in the implementation of approved plans and programs;
e) Coordinate with governmental, private agencies, and farmer and farm worker organizations at the provincial level, to carry
out programs;
f) Conduct periodic performance audit survey in collaboration with the regional office and monitor agrarian reform program
accomplishments, including operational problems and constraints, and recommend appropriate remedial measures for
effective program implementation;
g) Perform such other functions as may be necessary in the service of the Department's clientele;
Sec. 26. Municipal Agrarian Reform Offices. The Department shall have as many Municipal Agrarian Reform Offices as may be
necessary in promoting efficiency and effectiveness in the delivery of its services, which shall be headed by a Municipal Agrarian
Reform Officer.
The Municipal Agrarian Reform Office shall be responsible for directly implementing agrarian reform programs and delivering
expected results at the municipal level. For such purpose, it shall have the following functions:
a) Implement policies and programs on land acquisition and distribution and transfer of landowners to actual tillers, including
identification of farms, landowners, and beneficiaries, leasehold arrangements, land valuation, landowner's compensation
and transfer actions as determined in accordance with law;
b) Undertake continuing information and education programs on agrarian reform among the beneficiaries thereof;
c) Encourage and promote the organization and development of agrarian reform beneficiaries and assist in the registration of
organized cooperatives;
d) Institutionalize beneficiaries' participation in agrarian reform policy formulation and program implementation;
e) Organize/establish compact farms, land consolidation, integrated farm system, sloping agricultural land technology and
other cooperative-cultivatorship schemes;
f) Provide assistance in agrarian reform research;
g) Provide assistance to various legal services, including legal information and legal counselling, documentation and
preliminary processing of applications for patents and applications to purchase lots, preliminary investigation of conflicting
claims of lot boundaries and appraisal of properties, and mediation of different problems arising from implementation of the
agrarian reform program; execution and registration of lease contracts, initial investigation of administrative cases, and other
legal services;
h) Provide assistance on project identification, formulation, and development that would uplift the socio-economic status of
the beneficiaries including projects that would channel landlord capital to industrial development;
i) Cooperative with other government and private agencies and farmer and farm worker organizations within the area of
coverage for effective program/project implementation;
j) Submit periodic reports on program/projects accomplishments including identified problems and recommended solutions
thereto;
k) Implement projects supportive of national priority programs which the Department is committed to assist;
l) Perform such other functions as may be assigned from time to time, to promote efficiency and effectiveness in the delivery
of public services.
Sec. 27. Attached Agency
a) The Department shall, subject to the approval of the Presidential Agrarian Reform Council, create the Foundation for the
Agrarian Reform Movement of the Philippines (FARM-Philippines) to administer, operate, and manage programs and
projects developed by the Department and initiate alternative livelihood projects for displaced small landowners. It shall be
attached to the office of the Secretary and shall be governed by a Board of Trustees. The Foundation will be authorized to
raise funds and to contract foreign and domestic loans for its projects.
Sec. 28. Transitory Provisions. In accomplishing the acts of reorganization herein prescribed, the following transitory provisions
shall be complied with, unless otherwise provided elsewhere in this Executive Order;
a) The transfer of a government unit shall include the functions, appropriations, funds, records, equipment, facilities, chosen
in action, rights, other assets, and liabilities, if any, of the transferred unit as well as the personnel thereof, as may be
necessary, who shall, in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the
corresponding salaries and benefits. Those personnel from the transferred unit whose positions are not included in the
Department's new position structure and staffing pattern approved and prescribed by the Secretary or who are not
reappointed shall be deemed separated from the service and shall be entitled to the benefits provided in the second
paragraph of Section 29 hereof.
b) The transfer of functions which results in the abolition of the government unit that exercised them shall include the
appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets and personnel as may be
necessary to the proper discharge of the transferred functions. The abolished unit's remaining appropriations and funds, if
any, shall revert to the General Fund and its remaining assets, if any, shall be allocated to such appropriate units as the
Secretary shall determine or shall otherwise be disposed in accordance with the Government Auditing Code and other
pertinent laws, rules and regulations. Its liabilities, if any, shall likewise be treated in accordance with the Government
Auditing Code and other pertinent laws, rules and regulations. Its personnel shall, in a hold-over capacity, continue to
perform their duties and responsibilities and receive their corresponding salaries and benefits. Its personnel whose positions
are not included in the Department's structure and staffing pattern approved and prescribed by the Secretary under Section
29 hereof or who are not reappointed, shall be deemed separated from the service and shall be entitled to the benefits
provided in the second paragraph of the same Section 29.
c) Any transfer of functions which does not result in the abolition of the government unit that has exercised them shall include
the appropriations, funds, records, equipment, facilities, chosen in action, rights, and assets and personnel as may be
necessary to the proper discharge of the transferred functions. The liabilities, if any, that may have been incurred in
connection with the discharge of the transferred functions, shall be treated in accordance with the Government Auditing
Code and other pertinent laws, rules and regulations. Such personnel shall, in a hold-over capacity, continue to perform their
duties and responsibilities and receive their corresponding salaries and benefits unless in the meantime they are separated
from the service. Any personnel, whose positions are not included in the Department's new position structure and staffing
patter approved and prescribed by the Secretary under Section 29 hereof or who are not reappointed, shall be deemed
separated from the service and shall be entitled to the benefits provided in the second paragraph of the same Section 29.
d) In case of the abolition of a government unit which does not result in the transfer of its functions to another unit, the
appropriations and funds of the abolished entity shall revert to the General Fund, while the records, equipment, facilities,
chosen in action, rights, and other assets thereof shall be allocated to such appropriate entities as the Secretary shall
determine or shall otherwise be disposed in accordance with the Government Auditing Code and other pertinent laws, rules
and regulations, The liabilities of the abolished units shall be treated in accordance with the Government Auditing Code and
other pertinent laws, rules and regulations, while the personnel thereof, whose position, is not included in the Department's
new position structure and staffing pattern approved and prescribed by the Secretary under Section 29 hereof or who has
not reappointed, shall be deemed separated from the service and shall be entitled to the benefits provided in the second
paragraph of the same Section 29.
e) In case of merger or consolidation of government units, the new or surviving unit shall exercise the functions (subject to
the reorganization herein prescribed and the laws, rules and regulations pertinent to the exercise of such functions) and shall
acquire the appropriations, funds, records, equipment, facilities, chosen in action, rights, other assets, liabilities, if any, and
personnel, as may be necessary, of the units that compose the merged unit shall in a hold-over capacity, continue to perform
their respective duties and responsibilities and receive their corresponding salaries and benefits unless in the meantime they
are separated from the service. Any such personnel, whose positions are not included in the Department's new position
structure and staffing pattern approved and prescribed by the Secretary under Section 29 hereof or who are not reappointed,
shall be deemed separated from the service and shall be entitled to the benefits provided in the second paragraph of the
same Section 29.
f) In case of termination of a function which does not result in the abolition of the government unit which performed such
function, the appropriations and funds intended to finance the discharge of such function shall revert to the General Fund
while the records, equipment, facilities, chosen in action, rights and other assets used in connection with the discharge of
such function shall be allocated to the appropriate units as the Department shall determine or shall otherwise be disposed in
accordance with the Government Auditing Code and other pertinent laws, rules and regulations, The liabilities, if any, that
may have been incurred in connection with the discharge of such function shall likewise be treated in accordance with the
Government Auditing Code and other pertinent laws, rules and regulations. The personnel who have performed such
function, whose positions are not included in the Department's new position structure and staffing pattern approved and
prescribed by the Secretary under Section 29 hereof or who have not been reappointed, shall be deemed separated from
the service and shall be entitled to the benefits provided in the second paragraph of the same Section 29 hereof.
Sec. 29. New, Structure and Pattern. Upon approval of this Executive Order, the officers and employees of the Department shall,
in a hold-over capacity, continue to perform their respective duties and responsibilities and receive the corresponding salaries and
benefits unless in the meantime they are separated from government service.
The new position structure and staffing pattern of the Department shall be approved and prescribed by the Secretary within sixty
(60) days from the effectivity of this Executive Order and the authorized positions created thereunder shall be filled with regular
appointments by him or by the President as the case may be. Those incumbents whose positions are not included therein or who
are not reappointed shall be deemed separated from the service. Those separated from the service shall receive the retirement
benefits to which they be entitled under existing laws, rules and regulations. Otherwise, they shall be paid the equivalent of one (1)
month basic salary for every year of service in the government, or a fraction thereof, computed on the basis of the highest salary
received, but in no case shall such payment exceed the equivalent of twelve (12) months salary. lawphi1.net
Sec. 30. Periodic Performance Evaluation. The Department of Agrarian Reform is hereby required to formulate and enforce a
system of measuring and evaluating periodically and objectively the performance of the Department and submit the same annually
to the President.
Sec. 31. Notice or Consent Requirement. If any reorganizational change herein authorized is of such substance or materiality as
to prejudice third persons with rights recognized by law or contract such that notice to or consent of creditors is required to be
made or obtained pursuant to any agreement entered into with any of such creditors, such notice or consent requirement shall be
complied with prior to the implementation of such reorganizational change.
Sec. 32. Prohibition Against Structural Changes. No change in the reorganization herein prescribed shall be valid except upon
prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services.
Sec. 33. Funding. Funds needed to carry out the provisions of this Executive Order shall be taken from funds available in the
Department.
Sec. 34. Implementing Authority of the Secretary. The Secretary shall issue orders, rules and regulations and other issuances as
may be necessary to ensure the effective implementation of the provisions of this Executive Order.
Sec. 35. Separability. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the
effect of nullifying other portions or provisions hereof as long as such remaining portions or provisions can still subsist and be
given effect in their entirety. lawphi1.net
Sec. 36. Repealing Clause. All laws, ordinances, rules and regulations and other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed or modified accordingly. lawphi1.net
Sec. 37. Effectivity. This Executive Order shall take effect immediately.
APPROVED in the City of Manila, Philippines, this 26th day of July, in the Year of Our Lord, Nineteen Hundred and Eighty-Seven.
July 17, 1987
EXECUTIVE ORDER NO. 228
DECLARING FULL LAND OWNERSHIP TO QUALIFIED FARMER BENEFICIARIES COVERED BY PRESIDENTIAL DECREE
NO. 27: DETERMINING THE VALUE OF REMAINING UNVALUED RICE AND CORN LANDS SUBJECT TO P.D. NO. 27; AND
PROVIDING FOR THE MANNER OF PAYMENT BY THE FARMER BENEFICIARY AND MODE OF COMPENSATION TO THE
LANDOWNER
WHEREAS, Presidential Decree No. 27; for purposes of determining the cost of the land to be transferred to the tenant-
farmer; provided that valuation shall be determined by crop productivity;
WHEREAS, there is a need to complete Operation Land Transfer and accelerate the payment to the landowners of lands
transferred to tenant-farmers; and
WHEREAS, there is also a need to maintain the financial validity of the Land Bank of the Philippines, the financing arm of
the agrarian reform program of the government;
NOW THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the
Constitution, here order that:
SECTION 1. All qualified farmer beneficiaries are now deemed full owners as of October 21, 1972 of the land they
acquired by virtue of Presidential Decree No. 27 (hereinafter referred to as P.D. No. 27).
SECTION 2. Henceforth, the valuation of rice and corn lands covered by P.D. No. 27 shall be based on the average
gross production determined by the Barangay Committee on Land Production in accordance with Department Memorandum
Circular No. 26, Series of 1973, and related issuances and regulations of the Department of Agrarian Reform. The average
gross production per hectare shall be multiplied by two and a half (2.5), the product of which shall be multiplied by Thirty Five
Pesos (P35.00), the government support price for one cavan of 50 kilos of palay on October 21, 1972, or Thirty One Pesos
(P31.00), the government support price for one cavan of 50 kilos of corn on October 21, 1972, and the amount arrived at shall
be the value of the rice and corn land, as the case may be, for the purpose of determining its cost to the farmer and
compensation to the landowner.
Lease rentals paid to the landowner by the farmer beneficiary after October 21, 1972, shall be considered as advance
payment for the land. In the event of dispute with the land owner regarding the amount of lease rental paid by the farmer
beneficiary, the Department of Agrarian Reform and the Barangay Committee on Land Production concerned shall resolve the
dispute within thirty (30) days from its submission pursuant to Department of Agrarian Reform Memorandum Circular No. 26,
Series of 1973, and other pertinent issuances. In the event a party questions in court the resolution of the dispute, the
landowner's compensation claim shall still be processed for payment and the proceeds shall be held in trust by the Trust
Department of the Land Bank in accordance with the provisions of Section 5 hereof, pending the resolution of the dispute
before the court.
SECTION 3. Compensation shall be paid to the landowners in any of the following modes, at the option of the
landowners:
(a) Bond payment over ten (10) years, with ten percent (10%) of the value of the land payable immediately in cash, and the
balance in the form of LBP bonds bearing market rates of interest that are aligned with 90-day treasury bills rates, net of
applicable final withholding tax. One-tenth of the face value of the bonds shall mature every year from the date of issuance until
the tenth year.
The LBP bonds issued hereunder shall be eligible for the purchase of government assets to be privatized.
(b) Direct payment in cash or in kind by the farmer-beneficiaries with the terms to be mutually agreed upon by the
beneficiaries and landowners and subject to the approval of the Department of Agrarian Reform; and
(c) Other modes of payment as may be prescribed or approved by the Presidential Agrarian Reform Council.
SECTION 4. All outstanding Land Bank bonds that are retained by the original landowners-payee or by their heirs,
are deemed matured up to on-twenty fifth (1/25) of their yearly face value from their date of issue to the date of this Executive
Order and may be claimed by the original landowner-payee by surrendering the bonds to the Land Bank. The original
landowner-payee may claim payment for the remaining unmatured period of the surrendered bonds under any of the modes of
compensation provided in Section 3, subsections (a) (b) or (c) hereof.
In order to meet the financial requirements mentioned in this Section, the Central Bank shall remit to the Land Bank such
sums as may b necessary from the Sinking Fund established by the Land Bank from the retirement of its bonds and other long-
term obligations and which Sinking Fund is administered by the Central Bank: Provided, however, That there is no change in
maturity of other outstanding Land Bank bonds acquired and held by transferees from original bondholders.
The landowner is exempt from capital gains tax on the compensation paid to him under this Executive Order.
SECTION 5. In the event that the landowner does not accept payment of the compensation due him, his
compensation shall be held in trust for him by the Trust Department of the Land Bank. The cash portion of the compensation
and such portions that mature yearly shall be invested by the Trust Department only in government securities fully guaranteed
by the Republic of the Philippines. All the net earnings of the investment shall be for the benefit of the landowner, his heirs or
successors in interest.
The rights of the landowners may be exercised by his heirs upon his death.
SECTION 6. The total costs of the land including interest at the rate of six percent (6%) per annum with a two
percent (2%) interest rebate for amortizations paid on time, shall be paid by the farmer-beneficiary or his heirs to the Land Bank
over a period up to twenty (20) years in twenty (20) equal annual amortizations. Lands already valued and financed by the
Land Bank are likewise extended a 20-year period of payment of twenty (20) equal annual amortizations. However, the farmer-
beneficiary if he so elects, may pay in full before the twentieth year or may request the Land Bank to structure a repayment
period of less than twenty (20) years if the amount to be financed and the corresponding annual obligations are well within the
farmer's capacity to meet. Ownership of lands acquired by the farmer-beneficiary may be transferred after full payment of
amortizations.
SECTION 7. As of the date of this Executive Order, a lien by way of mortgage shall exist in favor of the Land Bank
on all lands it has financed and acquired by the farmer-beneficiary by virtue of P.D. No. 27 for all amortizations, both principal
and interest, due from the farmer-beneficiary or a valid transferee until the amortizations are paid in full.
SECTION 8. Henceforth, failure on the part of the farmer-beneficiary to pay three (3) annual amortizations shall be
sufficient cause for the Land Bank to foreclose on the mortgage.
SECTION 9. Thirty (30) days after final notice for payment to the defaulting tenant-farmer, a copy of which notice
shall be furnished to the Department of Agrarian Reform, the Land Bank may foreclose on the mortgage by registering a
certification under oath of its intent to foreclose with the Registry of Deeds of the city or province where the land is located
attaching thereto: a copy of the final notice for payment; proof of service to the tenant-farmer and the Department of Agrarian
Reform of the final notice for payment; and a certification that at least three (3) annual amortizations on the land or the sum
thereof remain unpaid. The mortgage is deemed foreclosed upon registration of said documents with the Registry of Deeds.
In the event the defaulting tenant-farmer could not be served the final notice for payment, the Land Bank shall post the
notice for payment in the town hall, public market and barangay hall or any other suitable place frequented by the public of the
barangay where the defaulting tenant-farmer resides. A certification by the Land Bank to this effect will substitute for the proof
of service of the final notice of payment for purposes of foreclosure.
The Register of Deeds of all cities and provinces are directed to have a separate registry book to enter all the
requirements of foreclosure as provided herein.
SECTION 10. The tenant-farmer, or any of his compulsory heirs may lift the foreclosure within a period of two (2)
years from its registration by paying the Land Bank all unpaid amortizations on the land with interest thereon of six percent
(6%) per annum. In case of failure to lift the foreclosure within the said period, ownership of the land shall be deemed
transferred to the Land Bank.
SECTION 11. The Land Bank, not later than three (3) months after its acquisition of the land, shall sell the foreclosed
land to any interested landless farmer duly certified to as a bona fide landless farmer by the Department of Agrarian Reform of
the barangay or the two closest barangays where the land is situated. The cost of the land is the unpaid amortizations due on
the lands as of the date of the sale with interest thereon of six percent (6%) per annum. In the event that there is more than one
interested buyer, the actual buyer shall be determined by lottery in the presence of all the buyers or their representatives and a
representative of the Department of Agrarian Reform. The Deed of Conveyance executed by the Land Bank in favor of the
farmer transferee shall be registered with the Register of Deeds of the city or province where the land is located. Ownership
shall transfer to the farmer transferee only upon registration with the Registry of Deeds. The lien of the Land Bank by way of
mortgage on the remaining unpaid amortizations shall subsists on the title of the transferee.
SECTION 12. The Land Bank, at least one (1) month prior to the sale, shall furnish the Department of Agrarian
Reform with a notice of sale and shall post a similar notice in the town hall, public market and barangay hall or any other
suitable place frequented by the public of the barangay where the property is located. The notice shall state the description of
the property subject of the sale, the price, the date and place of sale.
SECTION 13. The National Land Titles and Deeds Registration Administration is hereby authorized to issue such
rules and regulations as may be necessary relative to the registration with the Register of Deeds of all transactions/activities
required herein taking into consideration the need to protect the integrity of the Torrens System, the interests of the parties and
innocent third parties.
All transactions/activities and their corresponding documents that are registered with the Register of Deeds pursuant to
the requirements of P.D. No. 27 and this Executive Order shall be free from all documentary stamps and registration fees.
SECTION 14. The Department of Agrarian Reform and the Land Bank are authorized to issue the additional
implementing guidelines of this Executive Order which shall not be later than sixty (60) days from the date hereof.
SECTION 15. To ensure the successful implementation of the Agrarian Reform Program, an Agrarian Reform
Operating Fund (Agrarian Fund) shall be set up by the National Government in the Land Bank. The amount of this Agrarian
Fund, to be determined by the Government Corporation Monitoring and Coordinating Committee hereinafter referred to as
GCMCC), will source the funding requirements for Land Bank to carry out the full implementation of this program which will
include the net operating losses directly and indirectly attributable to this program and the credit facilities to farmers and
farmers' organizations. Within thirty (30) days from the effectivity of this Executive Order, the Land Bank shall submit to the
GCMCC its funding requirements for 1987. Thereafter, within sixty (60) days after the end of each calendar year, the Land
Bank shall submit to the GCMCC an accounting of all drawings the Land Bank had made against the Fund. At the same time, it
will also submit its prospective funding requirements for the current year for review and validation of the GCMCC. The amount
approved by the GCMCC shall be deemed appropriate and the amount programmed for release in coordination with the
Department of Finance, Budget and Management and the National Economic and Development Authority. Within thirty (30)
days from GCMCC's approval, such funds shall be remitted to the Land Bank for credit to the Agrarian Fund.
September 30, 2011
DAR ADMINISTRATIVE ORDER NO. 07-11
SUBJECT : Revised Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural Lands Under
Republic Act (R.A.) No. 6657, As Amended
PREFATORY STATEMENT
{ HYPERLINK "http://www.lis.dar.gov.ph/documents/456" }, otherwise known as The Rules and Procedures Governing the
Acquisition and Distribution of Agricultural Lands under { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended
by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, is revised to streamline the Land Acquisition and Distribution
(LAD) Process of the Department of Agrarian Reform (DAR), strengthen the due process requirement for Comprehensive
Agrarian Reform Program (CARP) coverage, and ensure the completion of land acquisition and distribution within the prescribed
period provided in { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }. AHCaED
CHAPTER 1
Applicability
SECTION 1. Applicability. — These rules and procedures shall govern the acquisition and distribution of:
1. All private agricultural lands covered under Section 4 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, but
which have not been issued Notices of Coverage (NOCs); and
2. Private agricultural lands issued with NOCs but where the list of potential beneficiaries has not been finalized by the
Municipal Agrarian Reform Officer (MARO) concerned as of 1 July 2009.
CHAPTER 2
Definition of Terms
SECTION 2. Definition of Terms. — For purposes of these Rules, the following terms are defined as follows:
A. Advance Survey Plan (AdSP) refers to the segregation/subdivision survey plan prepared by a licensed geodetic engineer
who conducted the survey which is submitted by the DAR to the Land Management Service (LMS) of the Department of
Environment and Natural Resources (DENR) for verification and approval to be used as reference in the conduct of the joint
field investigation of the subject lot and in the valuation of landowner's compensation.
B. Approved Survey Plan (ASP) refers to the survey plan verified and approved by the LMS-DENR or the Land Registration
Authority (LRA).
C. Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or
otherwise, over lands devoted to agriculture, including disputes concerning farmworkers' associations, or representation of
persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms and conditions of such tenurial arrangements.
It includes any controversy relating to the compensation of lands acquired under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/226" } and other terms and conditions of transfer of ownership from landowners (LOs) to
farmworkers, tenants, and other Agrarian Reform Beneficiaries (ARBs), whether the disputants stand in proximate relation of
farm operator and beneficiary, LO and tenant, or lessor and lessee.
D. Agricultural lessee refers to a person who, by himself and with the aid available from within his immediate farm household,
cultivates the land, belonging to or lawfully possessed by another, with the latter's consent, for purposes of agricultural
production, for a price certain in money or in produce or both. The term is distinguished from a civil lessee as understood in the
{ HYPERLINK "http://www.lis.dar.gov.ph/documents/3088" }.
E. Civil Society Organizations (CSOs) refers to voluntary organizations or associations bonded by a common interest which are
distinct from the government or the market organizations. For purposes of this A.O., CSOs include farmer organizations, non-
governmental organizations, faith-based organizations, farmer cooperatives, irrigators' association, etc.
F. Cooperatives refer to organizations composed primarily of small agricultural producers, farmers, farmworkers, or other ARBs
who voluntarily organize themselves for the purpose of pooling land, human, technological, financial, or other economic
resources, and operate on the principle of one member, one vote. A juridical person may be a member of a cooperative, with
the same rights and duties as a natural person.
G. Direct Management, insofar as preferred beneficiaries are concerned, refers to the cultivation of the land through personal
supervision under the system of labor administration. It shall be interpreted along the lines of farm management as an actual
major activity being performed by the LO's child from which he/she derives his/her primary source of income.
H. Farmworker refers to a natural person employed by an LO to perform in the subject landholding the cultivation of the soil,
planting of crops, growing of fruit trees, harvesting of farm products, or other similar farm activities and practices.
I. Installation refers to a series of activities spearheaded by the DAR to achieve the effective possession and peaceful control
by ARBs of the awarded land. DaAIHC
J. Landless Beneficiary is any farmer/tiller who owns less than three (3) hectares of agricultural land.
K. Newspaper of General Circulation refers to a newspaper or publication of national circulation.
L. Other Farmworkers refer to farmworkers who are not regular or seasonal farmworkers.
M. Perimeter Land Use Map (PLUM) refers to the findings of the survey work in which a CARP-covered lot is divided into sub-
lots based on existing crop/s and/or land use to produce Perimeter Land Use Map.
N. Regular Farmworker refers to a farmworker who is employed on a permanent basis by an LO to do functions that are
actually necessary and desirable in the farm operations.
O. Seasonal Farmworker refers to a farmworker who is employed on a recurrent, periodic, or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like.
P. Segregation Survey refers to survey work conducted by a licensed geodetic engineer wherein a CARP-covered lot is divided
into two (2) or more sub-lots for coverable and non-coverable areas to produce segregation plan which shall be used as
reference for award to co-owners, cooperative or farmer association.
Q. Share Tenant refers to a person who himself and with the aid available from within his immediate farm household, cultivates
the land belonging to or lawfully possessed by another, with the latter's consent, for purposes of agricultural production, sharing
the produce with the landholder under the share tenancy system, or paying the landholder a price certain or ascertainable in
produce or in money or both under the leasehold tenancy system. This arrangement has been abolished by { HYPERLINK
"http://www.lis.dar.gov.ph/documents/3221" }, as amended, which automatically converted the same into an agricultural lease
arrangement.
R. Subdivision survey refers to survey work in which a CARP-covered lot is divided into two (2) or more sub-lots for coverable
and non-coverable areas, with the former further subdivided into smaller sub-lots for award to individual ARBs.
S. Untenanted land refers to any agricultural landholding which is not the subject of any tenancy agreement.
T. Usufruct refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits of the property of another with the
obligation of preserving its form, substance, and productivity.
CHAPTER 3
Coverage: Schedule, Exclusions, and Special Rules
SECTION 3. LAD CARP Extension with Reform (CARPER) Balance Database and List of Lands with NOCs. — Upon the
effectivity of these Rules, the DAR Provincial Office (DARPO) shall provide the DAR Municipal Office (DARMO) with a copy of the
relevant portion of the LAD CARP Extension with Reform (CARPER) balance database, which lists down the LAD balances under
the DARMO's area of jurisdiction, and the schedule of coverage of each landholding therein. The generated list of landholdings
must be grouped according to the prioritized phasing under Section 7 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, and Section 5 of this A.O.
At the same time, the DARPO shall provide the MARO with a list of the lands for which NOCs had already been issued and
served. The MARO must continue with the process of land acquisition and distribution, unless the landholding falls under a
different schedule as provided in Section 5 hereof.
Landholdings not listed in the LAD CARPER Balance Database may be included in the said database upon issuance of the
Provincial Agrarian Reform Officer's (PARO) Certification of Coverage and the Provincial Agrarian Reform Coordinating
Committee (PARCCOM) Resolution, duly approved by the LAD Balance Technical Review Committee pursuant to { HYPERLINK
"http://www.lis.dar.gov.ph/documents/178" }.
SECTION 4. When Lands Deemed Private. — As a general rule, untitled public alienable and disposable (A & D) lands are
within the jurisdiction of the DENR pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" } (Public Land Act).
However, such lands are deemed "private" and for coverage by the DAR, if all the requisites specified in { HYPERLINK
"http://www.lis.dar.gov.ph/documents/2968" }, as amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/8764" }, for the
determination of whether or not private rights over a landholding have already been acquired exist, based on the following:
a. Continuous occupancy and cultivation by oneself or through one's predecessors-in-interest on or prior to 04 December 1972;
DTEAHI
b. Classification of the land as alienable and disposable on or prior to 04 December 1972;
c. Payment of the real estate tax thereon; and
d. Non-existence of adverse claims on the land.
In cases where the DAR and DENR have jointly identified specific untitled properties that may be covered under the LAD
component of CARP, the DENR-Community Environment and Natural Resources Office (CENRO)/Provincial Environment and
Natural Resources Office (PENRO) or Regional Technical Director (RTD)-LMS shall issue the certification that the subject tract of
land is within an area classified as A & D. The MARO shall, thereafter, initiate the acquisition process for the landholding
concerned.
SECTION 5. LAD Phasing. — The schedule of the acquisition and distribution of lands covered by the CARP shall be, as
follows:
Schedule Phases
Phase 1
a. All large single private agricultura lands above fifty (50) hectares (with or without
Notice of Coverage [NOC])
b. All large aggregate privateagricultural
lands (PALs) of landowners with total
area greater than 50 hectares with (NOC) as of December 10, 2008
c. { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" } lands (rice and
corn), regardless of size
d. All idle or abandoned agricultural lands, regardless of size
Starting 1 July 2009 up to 30 June 2012 e. All lands offered under Voluntary Offer to Sell (VOS), regardless of size
f. Lands covered by Voluntary Land
Transfer (VLT), regardless of size,
submitted as of June 30, 2009, subject to the provisions of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7050" }, Series of 2003
g. Government Financial Institutions (GFI)- foreclosed lands, regardless of size
h. PCGG-acquired lands, regardless of size
i. All other government-owned alienable
and disposable agricultural lands,
regardless of size
Phase 2-A
a. All remaining large single agricultural
lands with an area of 24 to 50 hectares
(with or without NOC)
b. All PALs of landowners with an aggregate
area of above 24 to 50 hectares with NOC
as of December 10, 2008
c. All agricultural lands provided in the
preceding phase yet to be completed
Phase 2-B
a. All remaining PALs of landowners with
an aggregate area in excess of 24 hectares
with or without NOC
b. All agricultural lands provided in the
preceding phases yet to be completed
Starting 1 July 2012 up to 30 June 2013 Phase 3-A
a. All PALs with an aggregate area of above
10 hectares up to 24 hectares, with respect
to the excess above 10 hectares
b. All agricultural lands provided in the
preceding phases yet to be completed
Starting 1 July 2013 up to 30 June 2014 Phase 3-B
a. All PALs with an aggregate area from
(Notwithstanding the aforementioned above 5 hectares up to 10 hectares,
schedule, in no case may Phase 3-B begin with respect to the excess above
on a particular province unless the LAD 5 hectares
balance of the same province that are
covered by Phases 1, 2-A, 2-B, and 3-A, b. All agricultural lands provided in the
except lands under the jurisdiction of preceding phases yet to be completed
DENR, have been successfully
completed.)
The Presidential Agrarian Reform Council (PARC) or the PARC Executive Committee, upon the recommendation of the
PARCCOM, may authorize particular provinces to proceed with the acquisition and distribution of agricultural lands of a particular
Phase ahead of its schedule by declaring them as Priority Land Reform Areas, provided that that particular province has
completed the LAD of all the other Phases prior to the one to proceed ahead of schedule.
SECTION 6. Phase of a Co-Owned Landholding. — In case a landholding is co-owned, the following rules shall apply in
determining which phase that particular landholding shall be acquired and distributed:
i. if the landholding is co-owned due to the non-settlement of the estate of a deceased LO: the phase shall be based on the
aggregate size of all the landholdings of the deceased LO; aHIEcS
ii. if the landholding is co-owned due to other reasons:
a. if the aggregate size of all the landholdings of each co-owner coincidentally belongs to the same phase: the phase shall
be based on the aggregate size of all the landholdings of one of the co-owners; or
b. if the aggregate size of all the landholdings of each co-owner belongs to different phases: the co-owners, as a group,
shall be treated as a single LO for the sole purpose of determining the phase that that particular landholding shall be
acquired and distributed, provided that the share of a co-owner to that landholding shall be incorporated in determining
his/her/its aggregate size of landholdings owned to determine the schedule of acquisition and distribution of his/her/its other
landholdings.
SECTION 7. Excluded from Coverage. — Excluded from coverage are:
a. All undeveloped lands with eighteen percent (18%) slope and over;
b. All lands duly classified by the proper Local Government Unit (LGU) as commercial, industrial, or residential as of 15 June
1988;
c. All ancestral lands/domains that may be identified in accordance with rules that may be jointly issued by the DAR, DENR,
LRA, and the National Commission on Indigenous People;
d. Retention areas granted to LOs who exercised their retention rights; and
e. All agricultural landholdings of a LO with an aggregate size of five (5) hectares or less.
SECTION 8. Exempted from Coverage. — Exempted from coverage are lands actually, directly, and exclusively used, and
found to be necessary for, the following purposes:
a. Parks;
b. Wildlife;
c. Forest reserves;
d. Reforestation;
e. Fish sanctuaries and breeding grounds;
f. Watersheds;
g. Mangroves;
h. National defense;
i. School sites and campuses, including experimental farm stations operated by public or private schools for educational
purposes;
j. Seeds and seedlings research and pilot production centers;
k. Church sites and Islamic centers appurtenant thereto;
l. Communal burial grounds and cemeteries;
m. Penal colonies and penal farms actually worked by the inmates;
n. Government and private research and quarantine centers;
o. Fish ponds and prawn farms; and
p. Livestock, poultry, and swine raising since 15 June 1988.
SECTION 9. Coverage of Previously Exempted Agricultural Lands. — If any of the private agricultural lands stated in Section 8
hereof is discovered not to be actually, directly, and exclusively used, and/or not necessary, anymore for the purpose for which it
is exempted, the PARO shall immediately issue an NOC for the subject landholding or the portions thereof.
SECTION 10. Conversion Proceeding Not a Bar to Coverage. — Absent any final order granting conversion, no act or attempt
directed to changing the use of the land from agricultural to non-agricultural, shall affect the land's coverage pursuant to the
CARP.
SECTION 11. Automatic Coverage of Converted Lands Not Developed. — Pursuant to Section 65 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, the failure to fully implement the conversion plan within five (5) years from the
issuance of DAR conversion order, or any violation of the conditions of the conversion order, in the event such failure or violation
was due to the fault of the applicant, shall cause the land subject thereof to automatically be covered by CARP, subject to the
rights of retention. ATcaID
Pursuant to this rule, an ocular inspection of all landholdings subject of a conversion order shall be conducted by the PARO on an
annual basis, or immediately after reports of violations of the conditions of a conversion order are presented before his/her office.
The PARO must prepare and submit a report that contains his/her findings regarding the status of implementation of the
conversion plan and/or existence of violations of the conversion order. This report shall be sent to the Regional Director (RD) or
the Center for Land Use Policy, Planning, and Implementation (CLUPPI), depending on their jurisdiction per the Rules on
Conversion. The RD or the Secretary, as the case may be, shall take appropriate actions pursuant to the existing implementing
rules and regulations on land use conversion.
SECTION 12. DENR Distributed Lands Under CARP. — Landholdings distributed by the DENR under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, shall no longer be acquired and distributed by the DAR.
SECTION 13. Agricultural Lands Reclassified to Non-Agricultural Uses Before June 15, 1988 but Subsequently Reclassified to
Agricultural Uses are Covered by CARP. — Landholdings within zones classified as non-agricultural before 15 June 1988 but
subsequently reclassified as agricultural by the LGU concerned are covered by CARP. Any exemption order issued therein shall
be reviewed by the RD to determine whether the subject landholding is still agricultural in land use, and if found to be such, said
exemption order shall be immediately revoked. An NOC shall thereupon be issued to the LO.
SECTION 14. Reallocation of Foreclosed Agricultural Land. — The DAR shall take possession of awarded agricultural lands
which were foreclosed for failure to pay the amortizations for three (3) aggregate years, where the two (2)-year redemption period
has already expired by negotiating for redistribution. The Land Bank of the Philippines (LBP) shall certify the lands' availability for
reallocation, and the DAR shall identify new ARBs therefor.
CHAPTER 4
Notice of Coverage
SECTION 15. Issuance of Notice of Coverage. — The NOC shall be issued to the registered landowner (RLO) of the
landholding, as stated in the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), or, in case of untitled private
agricultural lands, the Tax Declaration, preferably not later than one hundred and eighty (180) days prior to the first day of the
scheduled date of acquisition and distribution as provided for in Section 5 of this Rule.
In case the RLO stated in the TCT or OCT is different from that stated in the Tax Declaration, the NOC shall be served to the RLO
stated in the TCT or OCT.
The NOC must state the periods for the LO to file a protest on coverage, nomination of preferred beneficiary/ies, manifestation for
exemption/exclusion, and manifestation to exercise the right of retention, as well as to submit a duly attested list of the agricultural
lessees, regular farmers, and/or tenants in his/her/its landholding. The NOC must explicitly warn the LO that failure on their part to
exercise their right during the said periods shall be regarded as a waiver on their part to exercise these.
SECTION 16. Service of NOC. — The NOC shall be served in the following manner:
a. Personal Service: The NOC shall be served primarily by personally handing a copy thereof to the "person authorized to
receive" as enumerated under Section 17 hereof. Personal service is effected when the person authorized to receive affixes his
signature or thumb mark on the receiving copy of the NOC in the presence of a witness who also affixes his signature.
Personal service of the NOC shall be done by the Bureau of Land Acquisition and Distribution (BLAD) in the DAR Central
Office if the last known address of the person authorized to receive is within Metro Manila, or the MARO who has jurisdiction
over the last known address of the person authorized to receive, if living in a province outside Metro Manila.
b. Substituted Service: If the "person authorized to receive" is not present in his/her last known address, or refuses to receive
the NOC, the MARO shall immediately avail of substituted service and serve the NOC by leaving a copy of the NOC at the
residence of the person authorized to receive with some person of suitable age and discretion residing therein, or by leaving a
copy of the NOC at the RLO's office or regular place of business with some competent person in charge thereof.
The MARO shall thereafter immediately prepare and send a Return of Service of the NOC to the concerned PARO who has
jurisdiction over the subject landholding the fact of completed/failed substituted service.
The PARO shall thereafter immediately inform the BLAD the fact of substituted service and send it a copy of the NOC. The
BLAD shall thereafter publish the NOC in accordance with Section 18 hereof. DSAacC
c. Extraterritorial Service: If upon diligent investigation, the MARO who has jurisdiction over the subject landholding finds out
that the last known address of the persons authorized to receive is outside the territory of the Philippines, he shall send a copy
of the NOC to the last known address of the person authorized to receive abroad by registered mail.
The MARO shall immediately prepare and send a Return of Service of the NOC to the concerned PARO and request the
latter for the publication of the NOC through the BLAD. The BLAD shall then cause the publication of the NOC in accordance
with Section 18 hereof.
d. Immediate Publication: If the address of the person authorized to receive is unknown, or substituted person is not available,
the MARO who has jurisdiction over the subject landholding shall immediately file a written report as to the investigation made
and the failure to know the address of the LO to the PARO, and the latter shall send a copy of the NOC to the BLAD. The BLAD
shall thereafter cause the publication of the NOC.
Immediate publication shall also be effected if the person authorized to receive the NOC is that stated in Section 17 (vii) (b)
hereof. As such, the PARO who has jurisdiction over the subject landholding shall also send a copy of the NOC to the BLAD.
The BLAD shall thereafter publish the NOC in accordance with Section 18 hereof.
SECTION 17. Persons Authorized to Receive. — Service of the NOC shall be made to the following persons:
i. Service upon the RLO who is a natural person — The NOC shall be served to the RLO.
ii. Service upon co-owners — In case the RLO of the landholding are multiple persons as co-owners, the NOC shall be served
upon each and every registered co-owner, unless one is specifically authorized, in a written public document, to receive for the
co-owners;
iii. Service upon minors — When the RLO is a minor, service shall be made upon his/her father and/or mother, whoever has
lawful custody of the said minor. If the RLO has no parents, service shall be made upon his/her legal guardian if he/she has
one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR;
iv. Service upon incompetents — When the RLO is insane or otherwise incompetent, service shall be made upon his/her legal
guardian if he/she has one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR;
v. Service upon entity without juridical personality — When the RLOs who are persons associated through an entity without
juridical personality are issued an NOC under the name by which they are generally or commonly known, service may be
effected upon all the RLOs by serving upon any one of them, or upon the person in charge of the office or place of business
maintained in such name, provided that service shall not individually bind any person whose connection with the entity has,
upon due notice, been severed before the proceeding was brought;
vi. Service upon domestic private juridical entity — When the RLO is a corporation, partnership, or association organized under
the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general
manager, corporate secretary, treasurer, or in-house counsel; and
vii.Service upon the heirs of a deceased RLO — When the RLO has died prior to the service of the NOC, the NOC shall be
served to:
a. if the settlement of the Estate is currently pending with the court, the Executor or the Administrator of the Estate; or
b. if the settlement of the Estate is not pending with the court or if there is no executor or administrator, the NOC shall be
served to all known heirs and shall also be published.
SECTION 18. Publication of NOC. — If any of the circumstances under Sections 16 and 17 requires publication of the NOC, the
NOC shall be published in a newspaper of general circulation.
NOCs required to be published shall be sent by the PARO concerned to the BLAD which shall be responsible for publishing the
same. All NOCs sent to the BLAD for publication shall be published on the fifteenth or thirtieth day of the month they were
received by the BLAD, whichever is soonest.
Service by publication shall be evidenced by the affidavit of the editor-in-chief, or circulation/advertising manager, attesting to the
fact of said publication and a copy of the said publication. The publication need not state the entire contents of the NOC but only
the following essential particulars: IaHSCc
1. Coverage of the subject landholding under CARP on the specific land acquisition schedule based on the prioritized phasing
under Section 7 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };
2. OCT/TCT/Latest Tax Declaration No/s. and corresponding area;
3. Complete name/s of the RLO/s and last known address, if available;
4. Address or location of the subject landholding (barangay, city/municipality, province); and
5. The period for the LO to nominate his/her preferred beneficiary/ies, to submit a duly attested list of tenants, lessees and/or
regular farmworkers, if any, in his/her/its landholding, to file a manifestation to exercise the right of retention, to file a protest on
coverage, and to file a manifestation for exemption/exclusion, as well as the consequences of the failure to exercise these
rights during the prescribed period.
SECTION 19. Posting of the NOC. — In all cases, the MARO or any authorized DAR Personnel shall post a copy of the NOC at
a conspicuous place at the subject landholding, and ensure that the notice is clearly visible. For this purpose, waterproof and
environmentally-friendly materials, measuring two (2) by three (3) feet, shall be used. The BARC Chairman or his authorized
representative shall thereafter issue the corresponding Certification of Posting Compliance.
Additionally, a certified true copy of the NOC shall also be posted for seven (7) days at the bulletin board of the Municipal/City Hall
and the Barangay Hall where the land covered is located. The Municipal/City Administrator and the Barangay Secretary shall
thereupon issue their corresponding Certification of Posting Compliance.
SECTION 20. Date of Receipt of NOC. — For RLOs who did not receive the NOC through personal service, the date of posting
or the date of publication, whichever is later, shall be deemed the date of receipt of the same.
CHAPTER 5
Voluntary Offer to Sell
SECTION 21. VOS Conditions. — LOs may voluntarily offer their private agricultural lands for coverage under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, by submitting a notarized Letter-Offer, in a form that shall be provided by the DAR,
to the PARO where the offered landholding is located.
Upon its acceptance by the DAR, the Letter-Offer for coverage under VOS can no longer be withdrawn. A VOS is deemed
accepted by the DAR upon receipt by the LO of the Letter of Acceptance of the PARO. The Letter of Acceptance shall be served
to the LO in the same manner as the NOC, as provided by Sections 16 and 18 of this A.O.
SECTION 22. Landholding Under Five (5) Hectares Voluntarily Offered. — The DAR shall not accept the VOS of any LO who
owns one or more agricultural landholdings which, combined, has an aggregate size of five (5) hectares or less.
To ensure this, it is incumbent upon the PARO to verify the extent of the landholdings owned by the LO prior to executing and
issuing the letter of acceptance.
SECTION 23. VOS to Cover the Entire Area of the Land Offered. — An LO who wishes to offer his/her/its land under VOS must
offer the entire area of the same parcel of land, subject, however, to the last paragraph of Section 27 of this A.O.
SECTION 24. Landholding Owned by a Corporation or Co-Owned. — In case the agricultural landholding is owned by a
corporation, the Letter-Offer for coverage under VOS must be filed together with a Resolution by the Corporation's Board of
Directors giving specific authority to the person who executed the Letter-Offer to voluntarily offer the landholding.
In case the agricultural landholding is co-owned by several persons or is owned by an unsettled estate of a deceased person, the
Letter-Offer must be executed by all the co-owners/heirs, except if the person(s) executing the Letter-Offer has/have been
specifically authorized in a public instrument by all the co-owners/heirs to execute the same on behalf of them.
SECTION 25. When Shifting from CA to VOS Allowed. — LOs who received NOCs for their landholdings under Compulsory
Acquisition (CA) may be allowed to shift to VOS, provided that the Claim Folder (CF) for the subject landholding has not yet been
received by the Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for
valuation.
The LO may shift to VOS from CA by filing a written Letter-Offer received by the PARO of the area where the land is located.
An LO who shifts to VOS who fails to nominate a preferred beneficiary and to submit his/her duly attested list of tenants, lessees
and/or regular farmworkers, if any, during the thirty (30) day period from receipt of NOC is disqualified to nominate one and/or is
deemed to have waived his right to attest. DaScAI
SECTION 26. Voluntary Land Transfer/Direct Payment Scheme. — Only VLT/DPS applications duly submitted to DAR on or
before 30 June 2009 shall be allowed.
CHAPTER 6
Retention, Protest of Coverage, Nomination of Preferred Beneficiary/ies, Application for Exemption or Exclusion
SECTION 27. Period to Protest Coverage, Nominate Preferred Beneficiary/ies, File a Manifestation for Exemption/Exclusion, and
File a Manifestation to Exercise Retention Rights. — Within a non-extendible period of thirty (30) days from his/her/its/their receipt
of the NOC, the LO may do the following:
1. Protest against coverage, which must be filed before the PARO and should contain the substantial bases thereof;
2. Nominate child/ren who may qualify as preferred beneficiary/ies;
3. File a Manifestation for Exemption or Exclusion from CARP coverage before the PARO; and
4. File a Manifestation to Exercise the Right of Retention before the PARO.
The failure to do any of the foregoing within the abovementioned reglementary periods shall be construed as a waiver on the part
of the LO of the right to protest coverage, to nominate child/ren as preferred beneficiary/ies, to file a petition for exemption or
exclusion from CARP coverage, and/or to exercise the right of retention, as the case may be. All protests, nominations, and
manifestations/petitions made after this period shall no longer be accepted.
For landholdings under VOS, the LO shall exercise his right of retention and the right to nominate child/ren as preferred
beneficiaries by submitting a notarized notice thereof to the PARO who has jurisdiction over the landholding offered at any time
prior to the completion of service of the Letter of Acceptance. The failure to exercise the said rights in this case at the prescribed
time shall be construed as a waiver thereof.
SECTION 28. Period to File an Application/Petition for Exemption/Exclusion. — The Application/Petition for Exemption or
Exclusion from CARP coverage may be filed together with the above-mentioned Manifestation. If it is not filed jointly, the LO can
file it, together with the documents required by the rules on exemption or exclusion, within sixty (60) days from receipt of the NOC.
Non-submission thereof within this reglementary period shall be construed as a waiver or abandonment of his/her/its right to file
said Petition for Exemption or Exclusion from CARP coverage with respect to the landholding covered.
For landholdings under VOS, the LO is deemed to have waived his/her/its right to file such a Petition for Exemption or Exclusion
from CARP coverage upon DAR's acceptance of his/her/its offer.
SECTION 29. Petition for Protest of Coverage and/or Petition for Exemption or Exclusion Not Bar to Continue LAD Process. —
Despite the pendency of a protest against coverage or a petition for exemption or exclusion, the land acquisition process shall
nevertheless continue until the issuance of the Memorandum of Valuation (MOV) with the attached Land Valuation Worksheet
(LVW) by the LBP, unless otherwise suspended sooner through a Cease and Desist Order (CDO) by the RD or the Secretary.
Notwithstanding a Petition for Certiorari filed with the courts, the PARO shall issue and serve the Notice of Land Valuation and
Acquisition (NLVA) and proceed with the rest of the land acquisition and distribution process thereafter as soon as the protest
against coverage or petition for exemption or exclusion has been denied by the RD, or if appealed, by the Secretary, or if further
appealed, by the President of the Republic of the Philippines, unless otherwise ordered suspended by the Supreme Court.
The submission of the Manifestation for Exemption or Exclusion alone, without the Application/Petition, shall not affect the land
acquisition process as provided in this A.O., nor give ground for the issuance of a CDO by the RD or the Secretary.
SECTION 30. Period to Exercise Right of Retention. — The LO may choose a retention area at the same time that he/she/it
manifested to exercise the right of retention. If this is not done at the same time, the LO can choose the area within a non-
extendible period of fifteen (15) days after manifesting his/her/its desire to exercise the said right.
In case the landholding is owned by co-owners, or by an unsettled Estate of an LO who died prior to the issuance of the NOC,
such co-owners or heirs may only choose a retention area through a joint application executed by all of them, agreeing therein the
retention area of each of the said co-owners or heirs, provided that the right of retention of the heirs, in case of an unsettled
Estate, shall be subject to Section 37 of this A.O. In case one or more of the co-owners or heirs refuses or fails to join with the
others in the application, the rest of the co-owners or heirs may not choose a retention area unless they have partitioned their co-
ownership or the Estate, whichever is applicable. Some or all of the co-owners or heirs may file, together with their manifestation
to exercise their right of retention, a manifestation to partition their co-ownership or the Estate. If such manifestation to partition is
filed, the co-owners or heirs must partition the co-ownership or Estate and choose a retention area within sixty (60) days from
receipt of the NOC. If such manifestation to partition is not filed, the co-owners or heirs must accomplish such partition and choose
a retention area within the fifteen (15) days allotted to a single LO. EcICSA
The failure to choose his/her/its/their desired area within the fifteen (15)-day or sixty (60)-day period, whichever is applicable, shall
be deemed a waiver to do so, and shall automatically authorize the MARO to choose the area to be retained.
SECTION 31. Factors to Consider in Choosing Retained Areas. — When the LO waives his/her/its right to choose the area to be
retained, the MARO shall choose, on or before the conduct of the Survey, in the LO's behalf, taking into consideration the
following factors:
1. commodity produced;
2. terrain;
3. available infrastructure; and
4. soil fertility.
As soon as the MARO shall have identified the area, the DAR shall notify the LO, by registered mail with return card, the portion
selected as his/her retention area. The same notice shall indicate that the Retained Area chosen may not be contested.
SECTION 32. Retained Area Must be Compact and Contiguous. — No retention area may be chosen by the LO or the MARO
unless such area is compact and contiguous.
In case of a co-ownership or an unsettled Estate mentioned in Section 30 hereof, each co-owner or heir may choose an area not
contiguous with that chosen by his/her/its co-owner/co-heir, provided, that if it is the MARO who shall choose the retention area on
their behalf, the retention area of all co-owners/co-heirs must, as far as practicable, be compact and contiguous with each other.
SECTION 33. Certificate of Retention. — The PARO shall issue Certifications of Retention to LOs who had already availed of
their Retention Rights. LOs who own lands with an aggregate area of five (5) hectares or less may be issued by the PARO a
Certification of Retention upon request.
In case the LO opts for the immediate issuance of a title for his/her retention area after the issuance of Certification of Retention
by the PARO, prior to the acquisition process in accordance with the schedule stated in Section 5 of this A.O., he can request, in
coordination with the PARO, the Registry of Deeds (ROD) to issue a title in the LO's name on the portion of his/her retained area
based on the Owner's Duplicate Copy of title from the LO, Approved Segregation Plan, and technical description, and Certificate
of Retention. All fees for the said immediate segregation survey of the LO's retention area and the issuance of title on the same by
the ROD shall be chargeable to the account of the LO.
SECTION 34. Retention for VOS Lands Prior to 1 July 2009. — For VOS lands submitted prior to 1 July 2009 where the master
list of ARBs has been finalized, the retention areas of LOs covered under said VOS shall be processed under the existing
guidelines of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, before July 1, 2009.
SECTION 35. Retention Under { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" }. — Landholdings covered by
homestead grants and Free Patents issued pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/2750" } still owned by
the original grantees or their direct compulsory heirs shall be retained by them as long as they were cultivating the said
landholdings and continue to cultivate the same.
SECTION 36. Retention under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }. — LOs or heirs of LOs not qualified
to retain lands under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" } cannot claim retention under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, or even under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, over
their landholdings that were covered under { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }. The same LOs or heirs of
LOs, however, may still exercise their right of retention over other landholdings that hereafter shall be covered by { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }.
SECTION 37. Retention of Landowner's Heirs. — Heirs of deceased LOs who died after 15 June 1988 are only entitled to the
five (5) hectare retention area of the deceased LO.
SECTION 38. Retention of Spouses. — For marriages covered by the Conjugal Property of Gains Regime, spouses whose
agricultural lands are all conjugal in nature may retain a total of not more than five (5) hectares of such properties. However, if
either or both of them are LOs in their own respective rights (capital and/or paraphernal), they may each retain not more than five
(5) hectares of their respective landholdings. In no case shall the total retention area of such couple exceed ten (10) hectares.
For marriages covered by the Absolute Community of Property Regime, the spouses, together, may retain not more than five (5)
hectares. All properties (capital, paraphernal, and conjugal) shall be considered to be held in absolute community, i.e., the
ownership relationship is one, and, therefore, only a total area of five (5) hectares may be retained by the couple.
For marriages covered by a Complete Separation of Property Regime, each of them may retain not more than five (5) hectares of
their respective landholdings.
The property regime of a married couple whose marriage was celebrated prior to 03 August 1988 shall be presumed to be the
Conjugal Property of Gains, unless otherwise stated in a valid marriage settlement. The property regime of those whose marriage
was celebrated on or after 03 August 1988 shall be presumed to be the Absolute Community of Property, unless otherwise stated
in a valid marriage settlement. TDcCIS
SECTION 39. Tenant Chooses to Remain in the Retention Area. — In case a tenant chooses to remain in the LO's retained
area, the former shall be a leaseholder in the said land and shall not qualify as a beneficiary under CARP. Conversely, if the
tenant chooses to be a beneficiary in another agricultural land, he/she cannot be a leaseholder in the land retained by the LO. The
tenant must exercise this option within a period of one (1) year from the time the LO manifests his/her choice of the area for
retention.
Tenants/lessees in the retained areas who do not wish to become leaseholders in the retained lands shall be given preference in
other landholdings whether or not these lands belong to the same LO, without prejudice to the farmers who are already in place in
said other landholdings and subject to the priorities under Section 22 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }.
In all cases, the security of tenure of the farmers or farmworkers on the LO's retained land prior to the approval of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, shall be respected. Further, actual tenant-farmers in the landholdings shall not be
ejected or removed therefrom.
SECTION 40. DAR Clearance on Land Transactions. — Land transactions executed prior to 15 June 1988 shall be valid only
when registered with the Registry of Deeds on or before 13 September 1988 in accordance with Section 6 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }.
With respect to those executed on or after 15 June 1988, where the transfer/sale of a landholding involves a total area of five (5)
hectares and below and such landholding is the retention area of or subject of retention by the transferor, and where the
transferee will not own an aggregate area of more than five (5) hectares as a result of the sale, the transfer is legal and proper.
However, a DAR clearance is needed for monitoring purposes and as a requisite for the registration of the title in the name of the
transferee with the ROD.
With respect to LOs who have yet to exercise their right of retention, where more than five (5) hectares of the landholding is sold
or transferred, whether through a single transaction, multiple transactions, or a series of transfers/sales, only the first five (5)
hectares sold/conveyed and the corresponding titles therefor issued by the ROD in the name of the transferee shall be considered
valid and treated as the transferor's retained area, but in no case shall the transferee exceed the five (5)-hectare landholding
ceiling pursuant to Sections 6, 70, and 73 (a) of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }. Insofar as the
excess area beyond the five (5) hectares sold and conveyed is concerned, the same shall be covered under CARP, regardless of
whoever is the current title-holder to the land, and even if the said current title-holder owns less than five (5) hectares of
agricultural landholding, considering that the transferor has no right to dispose of these lands since CARP coverage of these lands
is mandated by law as of 15 June 1988. Any landholding still registered in the name of the LO after earlier dispositions up to an
aggregate of five (5) hectares are no longer part of his retention area and therefore shall be covered under CARP.
In cases where there has been an improper, invalid, or unlawful transfer, the NOC shall be sent to the last lawful owner of the
landholding and to such person who is registered as the owner of the same, and its coverage shall be done in accordance with the
pertinent guidelines on the matter.
SECTION 41. Conditions for LGU Retention Limit Exemption. — CARP covered agricultural lands which are to be expropriated
or acquired LGUs for actual, direct, and exclusive public purposes, such as roads and bridges, public markets, school sites,
resettlement sites, local government facilities, public parks, and barangay plazas or squares, consistent with the approved local
government land use plan, shall not be subject to the five (5)-hectare retention limit. However, prior to the expropriation/acquisition
by the LGU concerned, the subject land shall first undergo the land acquisition and distribution process of the CARP, and the
ARBs therein shall be paid just compensation without prejudice to their qualifying as ARBs in other landholdings under the CARP.
SECTION 42. Agricultural Lands Subject of Expropriation. — Pursuant to Section 6-A of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, an LGU may, through its Chief Executive and/or pursuant to an ordinance, exercise
the power of eminent domain on agricultural lands for public use, purpose, or welfare of the poor and the landless, upon payment
of just compensation to the ARBs on these lands, pursuant to the provisions of the Constitution and pertinent laws. The power of
eminent domain may not be exercised unless a valid and definite offer has been previously made to the ARBs, and such offer was
not accepted. In cases where the land sought to be acquired has been issued with an NOC or is already subject to VOS (with a
letter-offer submitted to DAR), the concerned LGU shall suspend the exercise of its power of eminent domain until after the LAD
process has been completed and the title to the property has been transferred to the ARBs.
Where agricultural lands have been subjected to expropriation, the ARBs therein shall be paid just compensation.
CHAPTER 7
Farmer Beneficiary Identification, Screening and Selection
SECTION 43. Who are Qualified Beneficiaries. — Farmers/Tillers and farmworkers who meet the following qualifications shall be
eligible as beneficiaries under the Comprehensive Agrarian Reform Program:
a. General Qualifications. All ARBs must be:
i. A farmer/tiller who owns less than three (3) hectares of agricultural land; TDEASC
ii. A Filipino citizen;
iii. A resident of the barangay (or the municipality if there are not enough qualified ARBs in the barangay);
iv. At least fifteen (15) years of age at the time of identification, screening, and selection of farmer-beneficiaries; and
v. Willing, able, and equipped with the aptitude to cultivate and make the land productive.
b. Specific Qualifications for Regular Farmworkers in Commercial Farms and Plantations. In case the subject landholding is a
commercial farm or plantation, in addition to the General Qualifications stated above, the applicant must be employed in the
landholding covered under CARP to be deemed a regular farmworker.
All farmworkers who are holding managerial or supervisory positions as of the issuance of the NOC shall not qualify as
ARBs. However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened, and
selected shall remain as qualified ARBs.
SECTION 44. Disqualification of a Landowner-Mortgagor from Being an ARB. — A landowner-mortgagor, including his/her
children, of a foreclosed agricultural land where the redemption period has already expired and which land is to be subsequently
covered under CARP, cannot qualify as an ARB on the foreclosed land, notwithstanding his/her/their being in actual possession
and cultivation thereof.
The former LO/actual occupant and his/her children may reacquire the foreclosed landholding through normal banking
transactions up to a maximum of five (5) hectares each, and if there is any excess, the same shall be covered under CARP in the
name of the foreclosing bank for distribution to qualified ARBs.
SECTION 45. Prioritization of Qualified Beneficiaries. — Qualified beneficiaries shall be prioritized in the following order:
i. Agricultural lessees and tenants;
ii. Regular farmworkers;
iii. Seasonal farmworkers;
iv. Other farmworkers;
v. Actual tillers or occupants of public lands, only insofar as untitled private agricultural lands are concerned; and
vi. Others directly working on the land.
For the purpose of the prioritization listed herein, agricultural lessees described in Section 47 hereof are deemed tenants of the
area they selected.
SECTION 46. Farmer Children of Landowner as Preferred Beneficiaries. — Pursuant to existing rules and regulations, the child
of an LO shall be given preference in the distribution of his/her parent's land provided he/she meets all of the following criteria:
i. Filipino citizen;
ii. At least fifteen (15) years of age as of the issuance of 15 June 1988; and
iii. Actually tilling or directly managing the farm as of the time of the conduct of the field investigation of the landholding under
CARP.
In no case may the distribution of lands to preferred beneficiaries deprive each of the agricultural lessees and tenants of being
awarded the portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares.
SECTION 47. Tenants of Retained Areas as Priority Beneficiaries. — An agricultural lessee or tenant of a portion of a
landholding chosen as a retained area who opted not to stay therein as a tenant may choose any CARP-covered landholding
which is not entirely tenanted and manifest to the PARO which has jurisdiction over the said landholding his intention to be a
beneficiary thereof. The PARO shall consider such agricultural lessee or tenant, duly attested by the retaining LO, as priority in the
selection, subject to the rights of those who are already in place.
SECTION 48. Landowners Availing of VOS are Disqualified to be ARBs. — LOs who have voluntarily offered their landholdings
for coverage under CARP, and those who have previously waived their rights to retain, are disqualified from becoming ARBs of
other landholding/s being covered or to be covered under CARP. The LO's voluntary offer or his previous waiver is construed to
be an inability and/or unwillingness to cultivate the land and make it productive. THEcAS
SECTION 49. Disqualification of ARBs. — The following are grounds for the disqualification of ARBs of the CARP:
a.) Failure to meet the qualifications provided under Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };
b.) Voluntary execution of a waiver of right to become an ARB in exchange for due compensation, and such waiver has not
been questioned in the proper government entity as of the effectivity of this A.O.;
c.) Deliberate and absolute failure of the ARB to pay an aggregate of three (3) annual amortizations to the LBP and subsequent
failure to exercise the right of redemption/repurchase within two (2) years, provided an amortization table has been issued to
the ARB, and provided further that the amortizations shall start one (1) year from the ARB's actual occupancy pursuant to
Section 26 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" };
d.) Deliberate and absolute non-payment of three (3) consecutive amortizations in case of a voluntary land transfer/direct
payment scheme, provided that the ARB has been installed and is in actual possession of the land, and provided further that
the last proviso will not apply if the non-possession of the ARB is attributable to his or her own fault;
e.) With respect to commercial farms, termination from the service for cause as of the date of effectivity of this A.O., unless a
complaint for illegal dismissal regarding the said termination is pending, in which case the termination must be affirmed with
finality by the proper entity of the government;
f.) Voluntary resignation or voluntary retirement from the service, provided this was not attended by coercion and/or deception,
and there is no case questioning said voluntary retirement or voluntary resignation by the applicant as of the date of effectivity
of this A.O.;
g.) Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" };
h.) Negligence or misuse of the land or any support extended by the government as provided in Section 22 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" };
i.) Material misrepresentation of the ARB's basic qualifications under Section 22 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/226" }, as amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, {
HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }, and other agrarian laws;
j.) Sale, transfer, lease, or any other form of conveyance by a beneficiary of the right of ownership, right to use, or any other
usufructuary right over the land acquired by virtue of being such beneficiary, in order to violate or circumvent the provisions of
Sections 27 and 73 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended by { HYPERLINK
"http://www.lis.dar.gov.ph/documents/3194" }, { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" }, and other agrarian
laws;
k.) Premature conversion by the ARB pursuant to Section 11 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/3307" };
l.) Final judgment for forcible entry or illegal detainer by persons who are originally not qualified beneficiaries as agrarian reform
beneficiaries, the unlawful entry of which would have allowed them to avail the rights and benefits of an agrarian reform
beneficiary;
m.) With respect to foreclosed landholdings, the LO thereof and/or his children, but only insofar as the same foreclosed
landholding is concerned; and
n.) Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality
after proper proceedings by the appropriate tribunal or agency.
SECTION 50. Period to Prepare and Submit the Duly Attested List of Tenants, Lessees and/or Regular Farmworkers. — Within a
non-extendible period of thirty (30) days from receipt of the NOC, the LO must submit to the MARO, furnishing a copy to the
PARO, a duly attested list of all his/her tenants, agricultural lessees, and regular farm workers, in his/her landholding at the time of
the issuance of the NOC. The list shall be submitted with a sworn statement that to the best of his personal knowledge and based
on all documents in his possession, all those listed are tenants, lessees, and/or regular farm workers in his/her landholding, and
that he/she has not omitted any tenants, agricultural lessees, and/or regular farm workers from the said list.
The LO must also attest whether or not the subject landholding is a subject of a civil law lease. If it is, the attested list must contain
both his/her/its regular farmworkers and those of his/her/its civil law lessees.
The failure to submit the duly attested list and the sworn statement during the abovementioned reglementary periods shall be
construed as a waiver on the part of the LO to exercise his attestation rights as regards the tenants, lessees, and regular
farmworkers in his/her landholding. cHDEaC
Furthermore, the LO's failure or refusal to submit the attested list shall not, in any way, delay the LAD process.
SECTION 51. ARB Selection for Untenanted Lands. — For untenanted land, all the farmers/tillers/farmworkers therein who
qualify under the existing guidelines on the identification, screening, and selection of ARBs, shall be considered as potential
beneficiaries of the land, provided that the proportional share of each will not exceed three (3) hectares; otherwise, additional
farmworkers shall be considered.
For unoccupied lands, each qualified landless farmer shall be allowed the award ceiling of three (3) hectares.
SECTION 52. ARB Selection for Commercial Farms/Plantations. — For the purpose of screening and selection of qualified ARBs
in commercial farms/plantations, all concerned PAROs shall create a Beneficiary Screening Committee (BSC) whose members
shall be composed of the PARO as the Ex-Officio Chairperson, the MARO, the DARPO Legal Officer, the Provincial Agrarian
Reform Coordinating Committee (PARCCOM) Chairperson or his representative, and the Barangay Agrarian Reform Committee
(BARC) Chairperson, or if there is no BARC, the Barangay Council Chairperson, of the area where the landholding is located or
his representative, pursuant to { HYPERLINK "http://www.lis.dar.gov.ph/documents/7026" }. The Master list of ARBs prepared by
the BSC must be certified as correct and accurate by the BARC or, if there is no BARC, the Barangay Council.
The BSC may invite the LO/s and/or civil society organization (CSO) representatives in the area to serve as resource persons in
the ARB selection and screening process, as may be necessary.
The BSC shall exercise jurisdiction in the screening and selection of ARBs in commercial farms for collective distribution to ARBs.
The procedure enumerated in Sections 55 and 56 of this A.O. shall apply.
SECTION 53. Preliminary List of Potential ARBs for Non-Commercial Farms/Plantations. — Within three (3) days from his
receipt of the LO's attested list of lessees, tenants and/or regular farmworkers or after the lapse of the thirty (30)-day period for the
submission of said attested list, the MARO together with the BARC shall prepare the preliminary list of potential qualified ARBs of
the subject landholding, clearly stating therein whether a qualified ARB is classified as a lessee, tenant, regular farmworker,
seasonal farmworker, other farmworker, actual tiller or occupant of public land (only insofar as untitled private agricultural
landholdings are concerned), or others directly working on the land. The MARO shall post the preliminary list of potential ARBs for
seven (7) days at the subject landholding and ensure that the list is clearly visible to general public. For this purpose, waterproof
and environmentally-friendly materials, measuring two (2) by three (3) feet, unless a medium one is deemed necessary, shall be
used.
Additionally, the preliminary list shall also be posted for seven (7) days at the bulletin boards of the Municipal/City Hall and the
Barangay Hall where the land covered is located.
The MARO or such other authorized DAR personnel shall include in the CF a report stating the fact and date and time of the
posting thereof at the bulletin boards of the Municipal/City Hall and at the Barangay Hall, as well as at the premises, which report
shall be accompanied by a certificate of posting (containing, among others, the date when the notice was posted at said bulletin
boards and premises) to be executed by the Municipal/City Administrator, the Barangay Secretary, and the BARC concerned,
respectively.
Within seven (7) days from the last date of posting, all potential ARBs whose names appear on said preliminary list must submit
essential documents to prove his/her qualification as an ARB as provided in Section 43 of this A.O. The potential ARBs are as
responsible as the DARMO in proving their own qualification. The preliminary list of potential ARBs must also state instructions as
to the submission of written requests and other documentary proof.
Aside from the documents submitted by a potential ARB, the DARMO shall use available documentary evidence at hand, if any,
and exhaust all efforts to gather the necessary information/evidence as bases in the evaluation of the potential ARB's
qualifications and inclusion in the said list.
The preliminary list must also include instructions to farmers and farm workers not listed in the preliminary list as to how they can
prove that they are qualified. Such farmers and farm workers who believe that they are qualified ARBs, but whose names are not
included in the preliminary list must signify their intent to be included and submit documentary requirements within seven (7) days
from the last day of the posting of the preliminary list.
SECTION 54. Screening and Selection of Qualified Beneficiaries. — Upon receipt of the application and documentary
requirements, the MARO together with the BARC shall screen and select qualified beneficiaries pursuant to Section 22 of {
HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, in a particular landholding. The BARC shall certify the Master List
under oath within five (5) days after the screening and selection. The BARC certified Master List shall be provided to the PARO for
the latter's approval.
SECTION 55. Service and Posting of the Master List. — The Master List approved by the PARO shall be served by the MARO or
any DAR personnel authorized by the PARO, personally or by registered mail, to all those named therein and to all persons listed
in the preliminary list but is not included in the approved master list. The Master List shall clearly state whether a qualified ARB is
classified as a lessee, tenant, regular farmworker, seasonal farmworker, other farmworker, actual tiller or occupant of public land
(only insofar as untitled private agricultural landholdings are concerned), or others directly working on the land. It shall also
provide the length of service or tenure, in days, of each of the said qualified ARBs. HAIaEc
The Master List shall be accompanied by a notice to the qualified ARBs listed therein that they will be required to execute and sign
the APFU and that failure to do so shall be considered a waiver of their right to become beneficiaries of the landholding.
The Master List approved by the PARO shall also be posted by the MARO or any other DAR personnel authorized by the PARO
for seven (7) days at the Barangay Hall where the landholding covered is located. In addition to the foregoing, the MARO or such
other DAR personnel authorized by the PARO shall simultaneously cause the production and installation of a billboard, preferably
made of tarpaulin or any visible waterproof and environmentally-friendly material, of said Master List, measuring two (2) by three
(3) feet, unless a medium one is deemed necessary, at a conspicuous location within the premises of the landholding. The MARO
or such other DAR personnel shall include in the CF a report stating the fact and date and time of the posting thereof at the
bulletin board of the said Barangay Hall and at the premises, which report shall be accompanied by a certificate of posting
(containing, among others, the date when the notice was posted at the bulletin board) to be executed by the Barangay Secretary
concerned.
SECTION 56. Compulsory Arbitration. — Within fifteen (15) days after the posting of the BARC Certified Master List, the LO or
any of the potential beneficiaries may file a written protest thereon. The parties concerned, specially the persons to be excluded
shall be duly notified by the PARO of the proceedings and the decision. The PARO shall conduct compulsory arbitration within ten
(10) days from receipt of said protest to resolve the same. The PARO's decision shall be final insofar as the Master List is
concerned, copy of which shall be furnished to the parties concerned.
In case the decision of the PARO in the arbitration results into an amendment of the Master List, the amended list shall be posted
again for another seven (7) days in the manner and places provided by Section 55 of this A.O.
SECTION 57. PARO's Authority on Inclusion/Exclusion Protest. — The BARC Certified Master List of qualified ARBs becomes
final after the lapse of fifteen (15) days from issuance of the PARO's decision on the protest and receipt of the same by the
parties.
The authority of the PARO to decide is specifically limited to protests and petitions on the ARBs' qualifications to be included in
the BARC Certified Master List. After this phase, other issues related to the ARBs' qualifications under specific issuances shall be
filed as an agrarian law implementation (ALI) case to the RD.
Any person who disagrees with the PARO's decision/s or order/s for inclusion/exclusion of potential ARBs in/from the Master List
may file a verified petition for inclusion/exclusion against the ARBs therein in accordance with existing ALI rules.
SECTION 58. Filing of Inclusion/Exclusion Petition with the RD within 1-year from Registration of RP Title. — The filing of a
verified petition for inclusion/exclusion against the ARBs before the RD must be initiated within one (1) year from the registration
of the Republic of the Philippines (RP) title, or, in case the landholding is untitled, from the issuance of the COD. A petition for
inclusion/exclusion filed beyond said one (1)-year period is already barred and must be dismissed.
SECTION 59. Distribution Pending Inclusion/Exclusion. — In case an action for inclusion/exclusion of qualified beneficiaries is
pending, the distribution process shall nevertheless continue.
If the action for inclusion/exclusion is still pending at the time that the Certificates of Landownership Award (CLOAs) are to be
generated, the ARBs shall be notified by the MARO on or before the date of the generation of the CLOAs that the land allocated
may still change depending on the final conclusion of the aforementioned action. The PARO shall annotate on the back of the
CLOA that the award is not yet final until such time that a final and executory decision has been rendered on the pending
inclusion/exclusion case. This annotation shall be removed by the PARO in his own instance upon the termination of the said
case.
SECTION 60. ARB's Oath Before the Judge. — The ARBs who qualify under the screening process shall state under oath before
the judge of the city or municipal court that he/she is willing to work on the land to make it productive and to assume the obligation
of paying the amortization for the compensation of the land as well as the land taxes thereon as stipulated in the Application to
Purchase and Farmer's Undertaking (APFU). The MARO shall arrange a schedule and transportation for the ARBs to take this
oath before the judge or the judge to go to the places of the ARBs.
ARBs in the Master List who fail or refuse to execute and sign the APFU shall be given thirty (30) days from the date of receipt
thereof to sign it. The failure to sign the same within the said thirty (30) days shall be considered a waiver of the right to become
an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to sign and execute the APFU
within the prescribed period. Such notice shall be served together with the Master List, as provided in Section 55 of this A.O.
ISHCcT
CHAPTER 8
Land Acquisition
SECTION 61. Leaseholders Continue to Pay Rentals Before COD. — For tenanted lands or lands under leasehold, the ARBs
shall continue to pay their lease rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues
a COD.
SECTION 62. CARP Volume. — The current list of all lands covered by NOCs and all remaining unacquired and undistributed
landholdings covered under CARP, including those covered by conversion orders but deemed to have been reverted into
agricultural lands due to the failure of the LOs to comply with the conditions thereof, as well as those which are in the process of
acquisition and distribution or will be acquired based on the schedule of priorities under Section 7 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, shall be submitted by the DARPO to the ROD concerned for segregation of the
corresponding original copy of the Certificates of Title of all these lands from the regular volume or files of the Registry, and for the
compilation of the same in a new separate volume (CARP Volume) until the customary number of titles constituting a regular
volume is reached. This CARP Volume shall be treated as a restricted volume, and any voluntary transaction on any of the titles
included in this restricted file shall be subject to clearance in writing from the PARO. The maintenance of the CARP Volume shall
be undertaken by the LRA-CARP personnel under the supervision of the ROD.
Any certificate of title contained in the CARP Volume shall only be returned to the general/regular file upon proof that the property
covered by said title is exempted, excluded, or ascertained to be outside CARP coverage. Such proof may be in the form of a
Court Order or DAR Order which has become final and executory.
SECTION 63. Validation and Projections of Landholdings Subject to Acquisition. — Landholdings subject of acquisition shall be
validated based on ownership documents and on the projection by the DAR on DENR land classification maps to determine
whether or not the areas are alienable and disposable.
All projections undertaken by the DARPO on land titles, whether administratively or judicially (where the survey was based on the
cadastral map of the DENR) issued, shall be confirmed or validated by the DENR-CENRO/PENRO as to the land classification
status of said lands. The projections should be prioritized by the PARO and may be done even prior to the issuance of NOC.
All projections undertaken by the DARPO on lands covered by judicially issued titles and whose survey was based on the Private
Survey (PSU) Plan of the LRA shall be confirmed or validated by the LRA that these lands do not overlap with other titled or
decreed properties.
Titles judicially issued prior to 1919 based on { HYPERLINK "http://www.lis.dar.gov.ph/documents/223" } need not be validated or
confirmed by the DENR-CENRO/PENRO as to their land classification status, as such lands are classified as alienable and
disposable. However, the DARPO, through the Bureau of Land Development (BLD), shall obtain a Certification from the LRA that
the subject property does not overlap with a titled or decreed property. Such certification shall include, among others, the Judicial
Decree number, date of issuance of Decree, name of adjudicatee, location, and area.
SECTION 64. Segregation of Overlapping Titles. — Such properties that partially overlap with other titled or decreed properties
shall be segregated accordingly during the conduct of the survey on the landholdings subject of acquisition. The acquisition and
distribution of such landholdings with an area of more than five (5) hectares that either partially or fully overlap with decreed
properties shall continue regardless in whose name the decree has been issued.
SECTION 65. Survey Activities Before Field Investigation. — The conduct of the survey to determine land use, the segregation
of coverable and not coverable areas, and the subdivision survey shall be undertaken prior to Field Investigation (FI). The PARO
shall ensure that all field survey activities shall be completed before the conduct of FI. A licensed geodetic engineer must
participate in the survey.
SECTION 66. Discrepancy in Area or Size. — In case the area or size of the landholding stated in the TCT or OCT is different
from that stated in the Tax Declaration, the area stated in the TCT or OCT shall be controlling and shall be deemed the correct
one.
In cases of untitled private agricultural landholdings, if there is a discrepancy as to the area or size between the findings on the
survey and that in the Tax Declaration, the results of the survey activities shall be deemed the correct one.
SECTION 67. Utilization of LUMD Fund. — The Land Use Management and Development (LUMD) Fund shall be released and
utilized only for CARP covered lands with Requisition Survey Services (RSS) approved by the PARO, with a copy thereof
furnished to the BLD, pursuant to existing guidelines on requisition, approval, and monitoring of survey services. DaHSIT
SECTION 68. Conduct of the Field Investigation. — If the Survey was conducted prior to the FI and the Master List has already
been finalized, the DARPO shall, within three (3) days from the accomplishment of the Survey, submit a request for the conduct of
an FI of the landholding to the LBP. Attached to the request shall be the finalized Master List of ARBs, the PLUM, and either the
ASP or, if the DAR has not yet been furnished the ASP by the LMS, the AdSP.
The DARPO shall identify, notify, and invite the LO and the ARBs, through a Notice, to the conduct of the FI. The Notice must be
served by the MARO no later than (15) days prior to the scheduled date of the conduct of the FI. Proof of service shall be included
in the CF. The failure of the LO or the identified ARB to participate in the FI, despite being notified, shall be a waiver on their part
to question the findings thereof.
The FI shall be accomplished to verify the reports currently contained in the CF for the purpose of its valuation. It shall be
conducted jointly by the MARO, a member of the BARC, and representatives of the LBP. A representative of the
Municipal/Provincial Agricultural Office shall be invited if there is an issue on the suitability of the landholding for agriculture. A
representative from the DENR-CENRO/PENRO shall be invited whenever there is any issue as to the slope.
As a rule, there should be at least three (3) concrete cylindrical monuments (also referred to as "Mojon") and/or natural boundary
points remaining at the landholding at the time of the said investigation. This is to ensure that the landholding being investigated is
the same as that indicated in the AdSP. In such case, the FI may be conducted even in the absence of a geodetic engineer. In the
event, however, that there are less than three (3) monuments and/or natural boundary points remaining at the site, then the FI
may not be conducted unless it is done with the participation of a licensed geodetic engineer.
SECTION 69. Preparation and Transmittal of the CF. — After the execution of the Field Investigation Report (FIR) and the
APFU, the DARMO shall transmit the CF to the DARPO. The CF must be submitted within three (3) days after its completion,
which may not be later than fifteen (15) days after the execution of the FIR or the APFU, whichever is later. The PARO shall then
endorse and transmit the CF to the DAR-LBP Pre-Processing Unit (PPU). The PPU shall have three (3) days to verify the contents
of the CF after which it shall transmit the same to the LBP.
An AdSP shall be included in the CF in lieu of the ASP, if the said ASP is the only item not available for the completion of the CF.
The LBP may thereafter begin its process of determining the value of just compensation, on the basis of the ASP, or, in its
absence, the AdSP.
SECTION 70. Acquisition May Proceed Pending Case of Inclusion/Exclusion of ARBs. — In the event the finalization of the
Master List of the ARBs will necessitate the resolution of petitions for inclusion and exclusion of the ARBs therein, the PARO shall
inform the LBP regarding the matter, in which case, the conduct of the subdivision survey will come after the FI or upon the
finalization of the Master List of the ARBs so as not to delay the land acquisition process. Consequently, the LBP shall proceed
with the preparation and release of the MOV to the PARO.
SECTION 71. Submission of the Approved Survey Plan. — The PARO shall submit the ASP to the LBP within three (3) days
from its receipt thereof from the LMS. If the ASP is not different from the AdSP included in the CF, then the LBP may determine
the initial valuation of the covered landholding. If the ASP/AdSP is different from the findings in the FIR, a resurvey must be
conducted to allow the ASP/AdSP to conform with the findings in the FIR.
No MOV may be issued by the LBP prior to its receipt of the ASP.
SECTION 72. Valuation by the LBP. — The LBP shall determine the initial valuation of the covered landholding in accordance
with Chapter 10 of this A.O., other issuances of DAR, and LBP's own internal rules. It shall inform the DAR of its initial valuation,
including the computation and factors from which the initial valuation was arrived at, by submitting to the PARO an MOV. An LVW
shall be attached to, and form an integral part of, the MOV.
Certified true copies of the contents of the CF of the LBP that did not originate from DAR with respect to the LO of the subject
landholding, except internal memoranda and other documents therein deemed confidential by the LBP, shall be transmitted by the
LBP to the PARO at the same time that it transmits the MOV or within seven (7) days thereafter. The DAR shall reimburse the
LBP for the cost of its reproduction of the said contents.
SECTION 73. Period to Issue and Serve the Notice of Valuation and Acquisition. — Within three (3) days after the PARO
receives the MOV with the LVW and the copy of the abovementioned contents of the CF from the LBP, he/she shall immediately
issue the NLVA attached thereto a copy of the MOV with the LVW, transmit the same to the MARO, and direct the latter to serve
the NLVA and MOV with the LVW to the LO within five (5) days from his receipt thereof, in the manner provided in Section 74
hereof. aSAHCE
The addresses of the LBP and the Provincial Agrarian Reform Adjudicator (PARAD), Regional Agrarian Reform Adjudicator
(RARAD), and the Department of Agrarian Reform Adjudication Board (DARAB) must be stated in the NLVA.
SECTION 74. Service of NLVA. — If the LO was served with the NOC through personal or substituted service, or, regardless of
the type of service, in case the DAR has already ascertained the address of the LO, the NLVA and MOV with the LVW shall be
served to the LO by Registered Mail. The registered mail envelope shall be marked "Deliver to Addressee Only" and "Return to
Sender" based on the possibilities that the LO has moved out, address is erroneous or insufficient, or the LO refuses to accept or
receive the mailed NLVA.
If the address of the LO is unknown despite substantial investigation by the DAR, or if the registered mail was sent back to the
PARO or remained unserved for fifteen (15) days or more, the PARO shall effect the publication of a Notice in a newspaper locally
circulating within the locality both where the subject landholding is located and the last known address of the LO. The Notice shall
state the name of the LO, the location of the landholding, the fact that the landholding has been valued and is to be acquired, a
notice that the LO may inspect and obtain a copy of the NLVA from the PARO and the BLAD, and that the LO has thirty (30) days
from the date of publication to accept or reject the valuation otherwise it shall be deemed rejected. The address of the PARO and
the BLAD shall be indicated in the same Notice.
SECTION 75. Notice of Land Acquisition to be Posted at the Site of the Land Holding, the Barangay, and the Municipal/City Hall.
— A Notice stating that the landholding is to be acquired by the DAR shall be posted by the MARO, or any authorized personnel
of the DAR, at a conspicuous location at the site of the landholding and on the bulletin boards of the Barangay Hall and the
Municipal/City Hall where the land covered is located within five (5) days from his receipt of the same. The Notice shall state the
name of the LO and the location of the landholding. In case the circumstances requiring publication in Section 74 hereof is
present, the Notice to be posted shall also state that the LO may inspect and obtain a copy of the NLVA from the PARO and the
BLAD, and that the LO has thirty (30) days from the date of publication to accept or reject the valuation otherwise it shall be
deemed rejected.
The Barangay Secretary and Municipal/City Administrator, respectively, shall thereupon issue the corresponding Certification of
Posting Compliance.
The failure to post this Notice shall not be a ground for the LO to contest the acquisition process, insofar as he/she/it has received
the NLVA or the NLVA has been published.
SECTION 76. Acceptance, Rejection, or Failure to Reply by the LO. — The LO must file a written letter of acceptance or
rejection to the PARO within thirty (30) days from his/her/its receipt of the NLVA, or from the date of posting, whichever is later.
The PARO shall, upon acceptance, rejection, or lapse of the thirty (30) day period, submit a notice to the LBP stating the action of
the LO.
In case the valuation was rejected by the LO, or there was no written letter of acceptance or rejection filed within the thirty (30) day
reglementary period, the valuation shall be resolved administratively by the DARAB or Adjudicator concerned in accordance with
its rules, without prejudice to the right of the LO to question the valuation of the DAR and LBP with the proper Special Agrarian
Court (SAC). As such, the PARO shall, within three (3) days from receipt of the rejection letter or from the end of the thirty (30)
day reglementary period, advise the DARAB/Adjudicator to conduct administrative proceedings by transmitting a Certified True
Copy of the entire contents of the CF, together with either a copy of the rejection letter or a Memorandum stating that no reply was
received from the LO within the thirty (30) day period, whichever is applicable, to the appropriate Adjudicator or the DARAB,
indicating in a transmittal letter that the valuation has been rejected by the LO.
SECTION 77. Transmittal of the Order to Deposit Landowner Compensation. — The PARO shall, at the same day of its
transmittal of the NLVA to the MARO concerned, transmit its Order to Deposit Landowner's Compensation to the LBP. The delay
of the posting of the Notice provided by Section 75 of this A.O. shall not suspend the transmittal of the Order to Deposit
Landowner's Compensation to the LBP and any other procedure hereof.
SECTION 78. Service of the COD and Request for Registration. — The LBP shall issue to the PARO a COD upon its receipt of
the Order to Deposit Landowner's Compensation. Within ten (10) days from the PARO's receipt from the LBP of a copy of the
COD, he/she shall immediately transmit the COD, together with a copy of the ASP and a written request for the issuance of a TCT
in the name of the Republic of the Philippines (RP Title), to the ROD. aSIHcT
SECTION 79. Withdrawal of Deposited Amount for Land Compensation. — In cases of rejection, LOs may withdraw the original
value of the landholding as determined by the DAR and LBP per MOV, subject to their submission of the requirements for
payment. The withdrawal of the value by the LO shall not automatically terminate the adjudication of the just compensation case
pending with the appropriate Adjudicator or the DARAB.
When the LO later accepts the original value or subsequent value as recomputed by the LBP based on existing valuation
guidelines, the mere filing of a manifestation by the LO regarding the acceptance of the original value or of a joint manifestation by
the LO and the LBP on the recomputed value with the Adjudicator or DARAB shall automatically terminate the just compensation
case pending thereat.
SECTION 80. Just Compensation from Agrarian Reform Fund Only. — The just compensation of the LO shall be drawn solely
from the Agrarian Reform Fund. It shall not be drawn from or executed against the general funds and/or assets of the LBP.
SECTION 81. DAR Possession Upon Issuance of COD. — As a general rule, the DAR shall take immediate possession of a
landholding upon the issuance of a COD by the LBP, and shall thereafter immediately proceed with the distribution process to the
qualified ARBs of the landholding pursuant to Section 16 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.
SECTION 82. ROD's Duty to Issue RP Title Upon Receipt of COD. — Upon receipt of the PARO's request for the issuance of an
RP Title, the ROD shall immediately issue the RP title for the CARP covered area and a separate title to the retention and non-
coverable area in the name of the LO.
SECTION 83. Accelerated ALI Case Resolution for Pipeline Cases. — Notwithstanding the pendency of an ALI case involving a
landholding included in the CARPER balance, its acquisition and distribution shall continue. If there is an ALI or DARAB case
involving said land and its pendency is prejudicial to the acquisition or distribution process, the PARO shall recommend to the
Regional Director, if the case is pending with him, or to the Head Executive Assistant of the Office of the Secretary, if the case is
pending with the Office of the Secretary, the Legal Affairs Office, the DARAB, or the Center for Land Use Policy, Planning, and
Implementation, as the case may be, that the case be certified as urgent and its resolution be accelerated.
CHAPTER 9
Land Valuation and Landowner Compensation
SECTION 84. Just Compensation. — The compensation for lands covered under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, shall be: a) the amount determined in accordance with the criteria provided for in
Section 17 of the said law and existing guidelines on land valuation; or b) the value based on the order of the DARAB or the
regular court, which has become final and executory.
SECTION 85. Formula for Valuation. — The basic formula for the valuation of lands covered by VOS or CA shall be:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
Where: LV = Land Value
CNI 1 = Capitalized Net Income (based on land use and
productivity)
CS 2 = Comparable Sales (based on fair market value equivalent
to 70% of BIR Zonal Value)
MV 3 = Market Value per Tax Declaration (based on Government
assessment)
The CS factor refers to the Market Data Approach under the standard appraisal approaches which is based primarily on the
principle of substitution where a prudent individual will pay no more for a property than it would cost to purchase a comparable
substitute property. This factor is determined by the use of 70% of the BIR zonal valuation.
The CNI factor, on the other hand, refers to the Income Capitalization Approach under the standard appraisal approaches which is
considered the most applicable valuation technique for income-producing properties such as agricultural landholdings. Under this
approach, the value of the land is determined by taking the sum of the net present value of the streams of income, in perpetuity,
that will be forgone by the LO due to the coverage of his landholding under CARP.
The MV factor is equivalent to the Market Data Approach, except that this is intended for taxation purposes only. ASTcEa
Valuation cases:
a. If three factors are present
When the CNI, CS and MV are present, the formula shall be:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
b. If two factors are present
b.1) When the CS factor is not present and CNI and MV are applicable, the formula shall be:
LV = (CNI x 0.90) + (MV x 0.10)
b.2) When the CNI factor is not present, and CS and MV are applicable, the formula shall be:
LV = (CS x 0.90) + (MV x 0.10)
c. If only one factor is present
When both the CS and CNI are not present and only MV is applicable, the formula shall be:
LV = MV x 2
In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same Estate
under consideration or within the same barangay, municipality, or province (in that order) approved by the LBP within one (1) year
from receipt of the CF.
SECTION 86. Determination of Annual Gross Production. — In the determination of the Annual Gross Production (AGP), Selling
Price (SP), and Cost of Operation (CO) to be used in the determination of the CNI factor, the audited financial statement filed with
the Bureau of Internal Revenue (BIR) shall be obtained by the DARMO from the LO fifteen (15) days prior to the date of FI. If the
LO fails to submit the same, the DAR and the LBP may adopt applicable industry data or, in the absence thereof, conduct an
industry study on the specific crop concerned.
SECTION 87. Lands Awarded to Preferred Beneficiaries, Non-Compensable. — In the determination of the just compensation,
the area to be awarded to preferred beneficiaries shall not be included. The LO shall not be compensated for the portion of the
land to be awarded to the preferred beneficiaries.
SECTION 88. Pending Land Valuation Cases. — All previously acquired lands where valuation is subject to challenge by LOs
shall be completed and finally resolved pursuant to Section 17 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.
SECTION 89. Additional 5% Cash for VOS. — LOs, other than banks and financial institutions, who voluntarily offer their lands
for sale, shall be entitled to an additional five percent (5%) cash payment.
SECTION 90. Whom to Pay if Subject Land is Transferred. — For landholdings which were conveyed and thereafter registered
after the effectivity of { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, the LBP may consider the transferee as the
payee, provided that the transfer is valid and proof of the transfer is presented.
Subject to the rules in { HYPERLINK "http://www.lis.dar.gov.ph/documents/352" } and other pertinent A.O.s, for transfers made
not in accordance with { HYPERLINK "http://www.lis.dar.gov.ph/documents/102" }, the Deed of Conveyance shall be treated as a
Deed of Assignment to the proceeds from the just compensation, for purposes of the release of payment.
CHAPTER 10
Land Distribution
SECTION 91. Agreement as to the Allocation of Awarded Lands. — The qualified beneficiaries may agree among themselves as
to how the land shall be allocated to each of them. The agreement must be signed by all the qualified beneficiaries.
If no agreement is made, the equitable allocation of the land shall be observed in the manner provided by Sections 92, 93, 94, and
95 of this A.O.
SECTION 92. Three (3) Hectares to Regular Farmworkers and Tenants. — Unless an agreement among the qualified
beneficiaries to the contrary is made, only after the agricultural lessees, tenants, and regular farmworkers, have each been
awarded three (3) hectares pursuant to Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, shall the other
qualified beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as
untitled private agricultural landholdings are concerned), and others directly working on the land, be accommodated.
SECTION 93. Allocation of Awarded Lands. — The equitable allocation of the land shall be observed in the following manner:
a. Landholdings covered by CARP shall be allocated first to agricultural lessees, tenants, and regular farm workers of the same
landholding up to a maximum of three (3) hectares each. In case the landholding is not sufficient to award each agricultural
lessee, tenant, and regular farm worker three (3) hectares each, it shall be distributed in the manner provided in Section 94 of
this A.O. aIcETS
b. After complying with the three (3)-hectare allocation requirement for lessees, tenants, and regular farm workers, as the case
may be, the MARO shall determine the remaining area left for distribution to seasonal farm workers, other farm workers, actual
tillers or occupants of public lands, and others directly working on the land, in the manner provided by Section 95 of this A.O.
c. Excess areas, if any, after the allocation mentioned in the preceding paragraph shall be awarded to collectives or
cooperatives of the above beneficiaries. However, the tenants/lessees in such excess areas shall be given a reasonable time to
harvest the produce of his/her crop, subject to the rules on standing crops.
In cases, however, where there are preferred beneficiaries approved upon nomination of the LO, each preferred beneficiary may
select a contiguous and compact area, no medium than three (3) hectares, to be allocated to them prior to determining the
allocation for the ARBs, provided that in no case may the distribution of lands to preferred beneficiaries deprive each of the
agricultural lessees and tenants of being awarded the portion of the landholding they are actually tenanting/leasing, which in no
case shall be more than three (3) hectares.
SECTION 94. If Land Not Enough for Agricultural Lessees, Tenants, and Regular Farmworkers. — In cases where the land area
is not enough to meet the three (3)-hectare award ceiling for each agricultural lessee, tenant, and regular farmworkers in a
particular landholding, then the landholding shall be divided equally among them, provided that in no case may the allocation of
lands deprive each of the agricultural lessees and tenants of being awarded the portion of the landholding they are actually
tenanting/leasing, which in no case shall be more than three (3) hectares. However, in the extreme cases that the land area is not
enough to provide all them one thousand (1,000) square meters each, the names of the said agricultural lessee, tenant, and
regular farmworkers shall be listed from the ARB who has leased/served the most aggregate time to him/her who has
leased/served least. Each ARB shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at
the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall
then be distributed equally among those who received one thousand (1,000) square meters each.
Other qualified beneficiaries under Section 22 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, who are displaced
after the distribution of all available land to tenants/lessees, may still qualify as ARBs in other lands covered under the CARP.
SECTION 95. Allocation of Seasonal Farmworkers, Other Farmworkers, Actual Tillers or Occupants of Public Lands, and Others
Directly Working on the Land. — The remaining land shall be allocated to the seasonal farmworkers, other farmworkers, actual
tillers or occupants of public lands, and others directly working on the land in the following manner:
(a)The remaining area shall be distributed equally among seasonal farmworkers, but in no case shall each be awarded more
than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the seasonal farmworkers one
thousand (1,000) square meters each, the names of the said seasonal farmworkers shall be listed from the farmworker who has
served the most aggregate time to him/her who has served least. Each seasonal farmworker shall, thereafter, be awarded one
thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one
thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who received
one thousand (1,000) square meters each.
(b)If after all the seasonal farmworkers have been allocated three (3) hectares each there still remains a land area, or if there
are no seasonal farmworkers, it shall be distributed equally among the other farmworkers, but in no case shall each be awarded
more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the other farmworkers
one thousand (1,000) square meters each, the names of the said other farmworkers shall be listed from the farmworker who
has served the most aggregate time to him/her who has served least. Each of the other farmworkers shall, thereafter, be
awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less
than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who
received one thousand (1,000) square meters each.
(c) If after all the other farmworkers have been allocated three (3) hectares each there still remains a land area, and if the
landholding is an untitled private agricultural land, it shall be distributed equally among the actual tillers or occupants of that
public land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is
not enough to provide all the actual tiller/occupant one thousand (1,000) square meters each, the names of the said actual
tiller/occupant shall be listed from the actual tiller/occupant who has tilled/occupied the said land the most aggregate time to
him/her who has tilled/occupied least. Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000)
square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000)
square meters. The remaining land area, if any, shall then be distributed equally among those who received one thousand
(1,000) square meters each. DHaECI
(d)Finally, if after all the actual tiller/occupant have been allocated three (3) hectares each there still remains a land area, or if
the landholding is not an untitled private agricultural land, it shall be distributed equally among the other persons directly
working on the land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the
land area is not enough to provide all these other persons one thousand (1,000) square meters each, the names of these other
persons shall be listed from him/her who has worked the said land the most aggregate time to him/her who has worked least.
Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000) square meters each starting from the
person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area,
if any, shall then be distributed equally among those who received one thousand (1,000) square meters each.
SECTION 96. Award of CLOA. — In general, the land awarded to an ARB should be under an individual CLOA-title covering one
(1) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares.
Qualified beneficiaries may opt for collective ownership, through a co-workers or farmers' cooperative/association or some other
form of collective organization, for the issuance of collective ownership titles: Provided, That the total area to be awarded shall not
exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award limit of
three (3) hectares, except in meritorious cases as may be determined by the PARC, and provided further that the conditions for
the grant of collective CLOAs under this A.O. are met.
Under collective ownership, a collective CLOA to the property shall be issued in the names of the co-owners, who may form a
farmers' cooperative/association or collective organization. If the CLOAs are issued collectively, the names of all the beneficiaries
must be listed in the CLOA. If the subject land is legally transferred, the transferee, if qualified, can be substituted as beneficiary of
the individual CLOA upon the approval of the PARO.
Collective CLOAs may be issued under the following instances:
i. The current farm management system of the land covered by CARP is not appropriate for either individual farming or division
of the landholding into farm parcels;
ii. The farm labor system is specialized, where the farmworkers are organized by functions such as spraying, weeding,
packing, and other similar activities, and not by specific parcels;
iii. The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas;
and
iv. The farm consists of multiple crops being farmed in an integrated manner, or includes non-crop production areas that are
necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that
cannot be subdivided or assigned to individual farmers.
The names of the ARBs sharing a collective CLOA issued in the name of a farmers' cooperative/association or collective
organization shall be listed at the back thereof. Those listed shall be deemed as the owners of the landholding covered by the said
collective CLOA.
SECTION 97. Collective Ownership of Idle, Abandoned, or Undeveloped Land. — For idle and abandoned lands or undeveloped
agricultural lands to be covered by CARP, collective ownership shall be allowed only if the beneficiaries opt for it and in case there
is a clear development plan that would require collective farming or integrated farm operations exhibiting the conditions described
in Section 96 of this A.O. Otherwise, such lands awarded to ARBs should be under individual CLOAs/titles, covering one (1)
contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares.
SECTION 98. Period to Select Type of CLOA. — With respect to ARBs who may opt for collective CLOAs under Sections 96 and
97 of this A.O., the ARB must file a manifestation to the PARO as to whether he/she opts for an individual CLOA or a collective
one within a non-extendible period of fifteen (15) days from the posting of the Master List of ARBs.
The failure to file said manifestation within this fifteen (15)-day reglementary period shall be construed as a waiver of the right to
choose, and the ARB shall be deemed to have opted for an Individual CLOA.
SECTION 99. Specification of Actual Area to be Awarded. — After the ARBs have decided whether they wanted to be awarded
an individual CLOA or a collective one, the MARO shall allocate the actual portion of the landholding to be awarded to the ARBs.
In allocating the area, the MARO shall decide in accordance with the preference of the ARBs, subject to the following factors in
the following order: CTHDcS
i. The area of the individual ARBs sharing a collective CLOA shall be adjacent and contiguous with each other;
ii. The area tenanted by an ARB shall be that awarded to him/her.
SECTION 100. Usufructuary Right of ARBs. — Notwithstanding Section 108 of this A.O., the ARBs have the right of usufruct
over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA.
Pending the award of the CLOA and for the purpose of establishing usufructuary rights, the DAR, upon issuance of the COD and
upon actual possession of the land, shall immediately inform the ARBs that they have been identified and qualified to receive the
land.
SECTION 101. Labor-Related Issues Not a Deterrence to the Acquisition and Distribution of Landholding. — The existence of
labor-related issues between the LO and the farmworkers, including questions on ownership of the subject landholding and
payment of just compensation, shall in no case deter or delay the process of land acquisition and distribution.
SECTION 102. When Other Rights and Obligation of ARBs Commence. — The rights of the ARBs, other than the usufructuary
rights provided in Section 100 hereof, and their responsibilities shall commence from their receipt of a certified true copy of the
duly registered Certificate of Land Ownership Award (CLOA) and actual physical possession of the awarded property. The
following are the obligations of ARBs:
a. All ARBs shall exercise diligence in the use, cultivation, and maintenance of the land, including the improvements thereon.
Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the
forfeiture of one's right as an ARB.
b. Amortization payments shall commence one (1) year from the date of actual occupancy of the ARB, provided that the CLOA
has already been registered. Subject to existing rules on computation of amortization based on the principle of affordability and
provision for government subsidy, ARBs shall have the obligation to pay the LBP in thirty (30) annual amortizations with interest
at six percent (6%) per annum, unless the ARB opts to accelerate payment. Amortizations shall not include interest due for the
delay in payment of just compensation to the LOs.
c. ARBs shall have the obligation to pay the real property taxes due on their awarded lands.
Furthermore, lands awarded to ARBs under this Act may not be sold, transferred, or conveyed, except through hereditary
succession or to the Government, or to the LBP, or to other qualified beneficiaries within a period of ten (10) years and while the
amortization payments have yet to be fully paid; provided, however, that the children or the spouse of the transferor shall have a
right to repurchase the land from the government or the LBP within a period of two (2) years from the date of transfer.
SECTION 103. Real Property Tax Liability of ARB Cooperative. — The ARB Cooperative/Association may assume the
responsibility of paying the local government unit (LGU) the real property tax (RPT) due on collectively awarded land, subject to
the provisions of the { HYPERLINK "http://www.lis.dar.gov.ph/documents/8684" }.
SECTION 104. Facilities for Common Use and Award. — Land improvements and facilities that are not property of public
dominion, such as private roads and bridges, warehouses, and the like, which are for common use and benefit as may be defined
by DAR, shall be transferred to all of the ARBs in the landholding through a Farmers' Association or Cooperative, or in the
absence thereof, through co-ownership, and equally shared payments covered under either individual or collective land
amortizations, as the case may be.
SECTION 105. Award to Qualified Spouses. — Agricultural lessees and tenants, regular farmworkers, and other qualified
beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as untitled
private agricultural landholdings are concerned), members of collectives or cooperatives of the above beneficiaries, and others
directly working on the land who are husband and wife may be entitled to three (3) hectares each, provided that they qualify as
ARBs in their own individual right and that their respective vested rights to the land have been duly established. A separate CLOA
shall be issued to each spouse in such cases.
For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be preceded by the word
"spouses". Should the couple qualify as individual ARBs, their names shall be registered in the title, to wit: Juan married to Maria
or Maria married to Juan to indicate that the first name is the awardee. In the case of a common-law relationship, the names of
both parties shall likewise appear in the CLOA with the conjunctive word "and" between their names. Should they likewise qualify
as individual ARBs, their names shall be registered without the other. The same provisions shall apply in cases where the married
ARBs or ARBs in a common-law relationship are covered by a collective/co-ownership CLOA and their names are annotated at
the back of the said CLOA. CEHcSI
For purposes of ARB inventory and reporting, spouses or parties whose names appear in a single CLOA shall be counted as one
ARB.
SECTION 106. Ministerial Duty of ROD in CARP Implementation. — It is the ministerial duty of the ROD to:
1. Issue the title of the land in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds
have been deposited in the name of the LO constituting full payment in cash and bonds, with due notice to the LO;
2. Register the CLOA generated by DAR;
3. Cancel previous titles pertaining thereto; and
4. Issue title for the LO's retained area and other non-CARPable areas.
SECTION 107. Repository of Registered CLOAs. — All registered CLOAs shall be released by the ROD to the LBP as the
mortgagee financing institution. The LBP shall provide two (2) sets of certified true copies of the CLOA, closely simulating the
appearance, color, and paper of the same, to the PARO. The PARO shall thereafter transmit one set of the copies to the ARBs
within fifteen (15) days from his/her receipt of the CLOAs. The LBP shall be the responsible repository of the encumbered CLOAs
until the time of their release to the concerned ARBs upon full payment of the land amortization, and the cancellation of the
encumbrance.
CHAPTER 11
Installation of Agrarian Reform Beneficiaries on Awarded Lands
SECTION 108. ARB's Right of Possession. — As owner/s of awarded lands under CARP, the ARB/s shall take possession of the
land covered by his/her/their titles from the time the same is awarded to them through a registered CLOA.
SECTION 109. Writ of Installation. — In case taking possession of the awarded land by the ARBs would imperil or endanger
their lives, the DAR shall assume responsibility for the installation of the ARB/s on the subject land with the assistance of the
police or military until they are settled and in constructive and physical control of the property.
In pursuance of this mandate, the PARO may issue a Writ of Installation directing the Sheriff of the PARAD or the RARAD who
has jurisdiction over the landholding, alone or with the assistance of the police or military, to conduct all necessary lawful acts to
physically install the ARB/s on the subject landholding.
In case the installation activities would necessitate the provision of police and/or military forces to assist the Sheriff, the PARO
shall coordinate the said activities with the Department of National Defense-Armed Forces of the Philippines (DND-AFP) and the
Department of Interior and Local Government-Philippine National Police (DILG-PNP), pursuant to the existing guidelines per
Memorandum of Agreement executed by the DAR, Department of Interior and Local Government (DILG), and Department of
National Defense (DND).
SECTION 110. Continuing Responsibility. — The DAR, in cooperation with the AFP, PNP, and/or the LGU, shall ensure that
installed ARBs shall continue to enjoy their right of ownership and possession over the lands awarded to them. ARBs may seek
assistance from the DAR when they are facing threats, harassment, or ejection attempts by the LO or other parties. Assistance
shall include, among others, the duty of the DAR to assist ARBs in reporting these cases to the police and the military, and the
filing of the appropriate legal action against those responsible, if warranted. If dispossessed, the ARBs must be given assistance
so that they can re-occupy their land.
SECTION 111. Harassment of ARBs. — In the event the former LO harasses or threatens the ARB/s installed by the DAR, the
affected ARB/s shall immediately report the matter to the concerned PNP and the DAR. The ARBs should be assisted by the DAR
Regional/Provincial Legal Division, Public Attorney's Office (PAO), and the Office of the City/Provincial Prosecutors.
In the event that ARBs are driven out of the land against their will, the said ARBs shall take the initiative in filing a criminal case
against the perpetrator, with the DAR providing legal assistance. The affected ARBs shall be re-installed notwithstanding the
pendency and result of the case filed against the perpetrator conformably with { HYPERLINK
"http://www.lis.dar.gov.ph/documents/137" }.
SECTION 112. Obstruction of Landowner. — If the former LO deliberately acts to delay, stall, or obstruct the installation of the
ARBs, the DAR shall initiate a criminal case against him/her for violation of Section 73 (d) of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }, without prejudice to any other case that may be filed by any other person.
Moreover, the DAR shall ask that the LO be held liable by the Court for actual, compensatory, and moral damages suffered by the
ARB/s.
SECTION 113. DAR Referral to DOJ. — In cases of failed installation and/or dispossession of FBs due to LO harassment, the
DAR may refer the matter to the DOJ for the proper investigation of possible violation of Section 73 of { HYPERLINK
"http://www.lis.dar.gov.ph/documents/7014" }. TIHDAa
SECTION 114. Protective Injunction Order. — The RD and the DAR Secretary, motu proprio, can grant a protective injunction
order within two (2) years from the issuance of the CLOA to preserve the covered lands and ensure the peaceful and effective
ownership of the ARBs. A protective injunction order may be a mandatory one to enjoin the performance of a ministerial duty
sanctioned by the laws or prohibitory in nature to refrain the doing of an act that is detrimental to the rights of the parties in an
agrarian controversy. The failure to comply with such an order is punishable as an obstruction to CARP implementation under
Section 73 of { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }.
CHAPTER 12
Final Provisions
SECTION 115. Power of Secretary to Suspend the Rules. — In order to serve and protect the interest of CARP implementation
and justice, the DAR Secretary may suspend the rules embodied in this A.O.
SECTION 116. Transitory Provision. — The DAR shall not be required to serve new NOCs to LOs properly served with such
prior to the effectivity of these Rules. Those LOs shall be bound by the periods to exercise rights stated in the appropriate A.O.
Within thirty (30) days from the effectivity of these Rules, the MARO shall make an inventory of all NOCs previously sent but not
received by the LOs. New NOCs shall then be sent to these LOs immediately, in accordance with these Rules.
SECTION 117. Repealing Clause. — All A.O.s inconsistent herewith are hereby accordingly repealed, modified, and/or
amended.
SECTION 118. Separability Clause. — Any judicial pronouncement declaring as unconstitutional any provision of this A.O. shall
have no effect on the validity of the other provisions not affected thereby.
SECTION 119. Effectivity Clause. — These Rules shall take effect ten (10) days after its publication in two (2) newspapers of
general circulation.
Diliman, Quezon City, September 30, 2011.
October 15, 2009
DAR ADMINISTRATIVE ORDER NO. 02-09
SUBJECT : Rules and Procedures Governing the Acquisition and Distribution of Agricultural Lands Under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/226" }, as Amended by { HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }
I. Prefatory Statement
{ HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }, which amends { HYPERLINK
"http://www.lis.dar.gov.ph/documents/226" }, provides for, among others, the continuing acquisition and distribution of agricultural
lands covered under the Comprehensive Agrarian Reform Program (CARP) for a period of five (5) years under various phases,
and the simultaneous provision of support services and the delivery of agrarian justice to Agrarian Reform Beneficiaries (ARBs). It
further provides that after June 30, 2009, the modes of acquisition shall be limited to voluntary offer to sell (VOS) and compulsory
acquisition (CA) and that voluntary land transfer (VLT) shall be allowed only for landholdings submitted for VLT as of June 30,
2009.
The agrarian reform program is founded on the right of farmers and regular farmworkers, who are landless, to own directly or
collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the State
shall encourage and undertake the just distribution of all agricultural lands, subject to the priorities and retention limits set forth
under { HYPERLINK "http://www.lis.dar.gov.ph/documents/7014" }, taking into account ecological, developmental, and equity
considerations, and subject to the payment of just compensation. Owners of agricultural land have the obligation to cultivate
directly or through labor administration the lands they own and thereby make the land productive.
The principles of agrarian reform or stewardship shall be in accordance with law in the disposition or utilization of other natural
resources, including lands of the public domain, under lease or concession, suitable to agriculture, subject to prior rights,
homestead rights of small settlers and the rights of indigenous communities to their ancestral lands.
To ensure the completion of land acquisition and distribution within the prescribed period, the following rules and procedures are
hereby promulgated.
II. Coverage
These rules and regulations shall govern the acquisition and distribution of all agricultural lands yet to be acquired and/or to be
distributed under the CARP in accordance with { HYPERLINK "http://www.lis.dar.gov.ph/documents/226" }, as amended by {
HYPERLINK "http://www.lis.dar.gov.ph/documents/3194" }. TCDcSE
III. Definition of Terms
1. Landless Beneficiary is any farmer/tiller who owns less than three (3) hectares of agricultural land.
2. Share Tenant refers to a person who himself and with the aid available from within his immediate farm household,
cultivates the land belonging to or possessed by another with the latter’s consent, for purposes of production, sharing the produce
with the landholder under the share tenancy system, or paying the landholder a price certain or ascertainable in produce or in
money or both, under the leasehold tenancy system. This arrangement has been abolished by{ HYPERLINK
"http://www.lis.dar.gov.ph/documents/3259" }, which automatically converted the relations under leasehold.
3. Agricultural lessee refers to a person who, by himself and with the aid available from within his immediate farm household,
cultivates the land, belonging to or lawfully possessed by another, with the latter’s consent for purposes of agricultural production,
for a price certain in money or in produce or both. It is distinguished from civil lessee as understood in the { HYPERLINK
"http://www.lis.dar.gov.ph/documents/3088" }.
4. Farmworker refers to a natural person who renders service for value as an employee or laborer in an agricultural
enterprise or farm regardless of whether his/her compensation is paid on a daily, weekly, monthly or “pakyaw” basis. The term
includes an individual whose work has ceased as a consequence of, or in connection with, a pending agrarian or labor dispute
and who has not obtained a substantially equivalent and regular farm employment.
5. Regular Farmworker refers to a natural person who is considered employed on a permanent basis by a landowner
engaged in an agricultural enterprise or farm.
6. Seasonal farmworker refers to a natural person who is employed on a recurrent, periodic or intermittent basis by an
agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as “dumaan”, “sacada”, and the like.
7. Other farmworkers refer to farmworkers who do not fall under Items 5 and 6 of this Section.
8. Cooperatives refer to organizations composed primarily of small agricultural producers, farmers, farmworkers, or other
agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human, technological, financial
or other economic resources, and operate on the principle of one member, one vote. A juridical person may be a member of a
cooperative, with the same rights and duties as a natural person.
9. Substantially Equivalent and Regular Employment means any employment or profession from which the applicant farmer
derives income equivalent to the income of a regular farmworker at the time of ARB identification, screening and
selection. IcAaSD
10. Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or
otherwise, over lands devoted to agriculture, including disputes concerning farmworkers’ associations, or representation of
persons in negotiating, fixing, maintaining, changing or seeking to arrange terms and conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under { HYPERLINK
"http://www.lis.dar.gov.ph/documents/226" } and other terms and conditions of transfer of ownership from landowners to
farmworkers, tenants and other ARBs, whether the disputants stand in proximate relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee.
11. Usufruct refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits of the property of another with the
obligation of preserving its form, substance, and productivity.
12. Direct Management in so far as preferred beneficiaries are concerned, refers to the cultivation of the land through personal
supervision under the system of labor administration. It shall be interpreted along the lines of farm management as an actual
major activity being performed by the landowner’s child from which he/she derives his/her primary source of income.
13. Newspaper of General Circulation refers to newspaper or publication of general circulation, which may be national or local
to where the property is located.
14. Award is the conferment of Certificate of Land Ownership Award (CLOA) title to qualified agrarian reform beneficiaries.
IV. Statement of Policies
A. Notice of Coverage
1. The acquisition and distribution of agricultural lands under CARP shall be completed by June 30, 2014. However, the
process of acquisition and distribution for landholdings which were issued with Notices of Coverage (NOCs) on or before June 30,
2014 shall continue even after June 30, 2014 until the said lands have been awarded to qualified beneficiaries.
2. The schedule of the acquisition and distribution of lands covered by CARP shall be as follows:
2.1 All landholdings of landowners owning more than twenty four (24) hectares which have been issued Notices of Coverage
(NOCs) as of December 10, 2008, shall be subject to immediate acquisition and distribution under compulsory acquisition and
shall be completed by June 30, 2012. The landholdings of landowners owning more than fifty (50) hectares shall be prioritized for
coverage within this same period. HcDATC
2.2 All private agricultural lands voluntarily offered before July 1, 2009 by the landowner for agrarian reform shall be subject to
immediate acquisition and distribution under voluntary offer to sell (VOS) and shall be completed by June 30, 2012.
2.3 Lands under voluntary land transfer (VLT) received by DAR before July 1, 2009 shall be subject to immediate acquisition
and distribution and shall be completed by June 30, 2012.
2.4 The following types of lands shall likewise be subject of immediate acquisition and distribution under CARP and shall be
completed by June 30, 2012:
a. Rice and corn lands under Presidential Decree { HYPERLINK "http://www.lis.dar.gov.ph/documents/3795" };
b. All idle and abandoned lands;
c. All lands foreclosed by government financial institutions;
d. All lands acquired by the Presidential Commission on Good Government (PCGG); and
e. All other lands owned by the government.
2.5 All landholdings of landowners owning more than 24 hectares but have not been issued with NOC as of December 10,
2008 shall be subject to land acquisition and distribution (LAD) by July 1, 2012 and completed by June 30, 2013.
2.6 All landholdings of landowners owning more than 10 hectares up to 24 hectares, in so far as the excess hectarage above
10 hectares is concerned, shall be covered under land acquisition and distribution starting July 1, 2012 and be completed by June
30, 2013.
2.7 All landholdings of landowners owning more than five (5) hectares up to 10 hectares shall be covered under land
acquisition and distribution starting July 1, 2013 and be completed by June 30, 2014. Notwithstanding this schedule, coverage of
landholdings more than five (5) hectares up to 10 hectares may commence when the LAD balance of the concerned province,
reckoned as of January 1, 2009, is already 90 percent complete, as certified to by the Provincial Agrarian Reform Coordinating
Committee (PARCCOM) under existing guidelines of the Presidential Agrarian Reform Council (PARC). EcTaSC
3. For provinces declared by the Presidential Agrarian Reform Council (PARC) as priority land reform areas, the acquisition
and distribution of private agricultural lands therein under advanced phases may be implemented ahead of the above schedules
on the condition that prior phases in these provinces have been completed pursuant to the PARC implementing rules and
regulations on the matter.
4. The Notice of Coverage (NOC) shall be issued to landowners not later than 90 days prior to the scheduled date of
acquisition and distribution of their landholding except for landowners owning more than five (5) up to ten (10) hectares, in which
case, the NOCs shall be issued on or after July 1, 2013.
5. In the case of lands for which NOCs have already been issued, the DAR Provincial Office (DARPO) shall send a
memorandum to the Municipal Agrarian Reform Officer (MARO), copy furnished the LO, directing him/her to proceed with the
process of land acquisition and distribution of the landholdings under the CARP, either immediately or on the specific schedule
provided under Item IV (A) (2) of this Order.
6. For lands already in the Inventory of CARP Scope (ICS), the DARPO shall transmit to the DAR Municipal Office (DARMO)
on or before October 30, 2009 the list of LAD balances and the schedule of coverage of each landholding therein, based on the
prioritized phasing under Section 5 of R.A. No. 9700.
In the case of other landholdings still unacquired and undistributed but coverable under CARP, the DARMO shall submit
the list of such lands to the DARPO which shall prepare and issue NOCs and transmit these to the DARMO for service to the
landowners (LOs) based on specific schedules under Item IV (A) (2) of this Order.
7. Landholdings subject of expropriation or acquisition by the Local Government Units (LGUs) or any portions thereof not
actually, directly and exclusively used for non-agricultural purposes are subject to CARP coverage if one or more of the following
conditions apply:
7.1 There is agricultural activity;
7.2 The land is suitable for agriculture; or
7.3 The land is presently occupied and tilled by farmer/s.
8. Excluded from coverage are lands actually, directly and exclusively used and found to be necessary for the following
purposes:
8.1 Parks;
8.2 Wildlife;
8.3 Forest reserves; AHDaET
8.4 Reforestation;
8.5 Fish sanctuaries and breeding grounds;
8.6 Watersheds;
8.7 Mangroves;
8.8 National defense;
8.9 School sites and campuses including experimental farm stations operated by public or private schools for educational
purposes;
8.10 Seeds and seedlings research and pilot production centers;
8.11 Church sites and Islamic centers appurtenant thereto;
8.12 Communal burial grounds and cemeteries;
8.13 Penal colonies and penal farms actually worked by the inmates;
8.14 Government and private research and quarantine centers;
Also excluded from coverage are:
8.15 All undeveloped lands with eighteen percent (18%) slope and over;
8.16. All lands actually, directly and exclusively used for commercial, industrial or residential purposes and classified as such
before June 15, 1988;
8.17. Fish ponds and prawn farms;
8.18. All lands actually, directly and exclusively used for livestock raising;
8.19. Ancestral lands and domain; and
8.20. Retention areas granted to landowners.
The MARO, together with a representative of the DARPO, shall conduct an inventory and ocular inspection of all
agricultural lands within their area which are used for the above purposes. A report on the inventoried and inspected lands shall
be submitted by the MARO and the DARPO representative to the Provincial Agrarian Reform Officer (PARO) indicating the
following:
• Name of landowner;
• Location of property and area;
• OCT/TCT or Tax Declaration Number;
• Actual land use; TIaCHA
• Existence of agricultural activity;
• Land Classification documents available; and
• Other information vital to the determination of coverage of the land or portions thereof under CARP.
9. Any act of the landowner to change or convert his/her agricultural land to non-agricultural uses shall not affect the
coverage of the landholding. Any diversification or change in the agricultural use of the landholding, or shift from crop production
to non-agricultural uses and purposes shall be subject to the guidelines on land use conversion.
10. Land subject to a conversion order but not developed within the five-year period starting from the issuance of the
conversion order or the specific time frame stipulated therein, or if there is a violation of other conditions so provided, shall be
reverted to agricultural use and Notice of Coverage thereon shall be issued by the PARO. An ocular inspection shall be conducted
by the PARO on all lands covered by conversion orders and shall submit a factual finding on land development or violations of
conditions on the conversion orders if any, to the Regional Director, copy furnished the Center for Land Use Policy, Planning and
Implementation (CLUPPI), for appropriate action pursuant to the existing implementing rules and regulations (IRR) on land use
conversion. CcAITa
11. As a general rule, the Notice of Coverage (NOC) shall be addressed to and received by the LO through the following
modes of service:
11.1 Personal Service — This is made by handing a copy of the NOC to the LO in person and having him receive it by affixing
his signature or thumbmark with a witness to the thumbmark who will set his signature in the receiving copy.
11.2 Substituted Service — If personal service of the NOC cannot be served directly to the LO within a reasonable time, service
may be made by leaving copies of the NOC and having this duly received at the LO’s:
a. residence with some person of suitable age and discretion residing therein; or
b. office or regular place of business with some competent person in charge thereof.
11.3 Service by Registered Mail — If personal or substituted service is not practicable, the Notice of Coverage shall be sent by
registered mail to the last known address of the LO. The registered mail envelope shall be marked “Deliver to Addressee
Only” and “Return to Sender” based on the possibilities that the LO has moved out, address is erroneous or insufficient, or the LO
refuses to accept or receive the mailed NOC.
11.4 Service by Publication — The mode of service by publication shall apply if the LO is outside the Philippines, or
whereabouts is unknown, or LO refused to receive the NOC. If any of the three (3) modes of service {Items IV (A) (11.1 to 11.3) of
this Order} fails, the NOC will be published in a newspaper of general circulation in such places. Service by publication shall be
evidenced by the affidavit of the editor-in-chief, or circulation/advertising manager attesting to the fact of said publication and a
copy of the said publication. A “Return to Sender” stamped on the mailing envelope for registered mail will serve as proof that the
NOC was not received by the LO. The publication need not state the entire contents of the NOC but only the following essential
particulars:
11.4.1 Coverage of the subject landholding under CARP on the specific land acquisition schedule based on the prioritized phasing
under Section 5 of R.A. No. 9700;
11.4.2 Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT)/Latest Tax Declaration No/s.;
11.4.3 Complete name/s of the LO/s and last known address, if available; HTCIcE
11.4.4 Address or location of the subject landholding (barangay, city/municipality, province); and
11.4.5 A statement that the LO has thirty (30) calendar days from date of NOC publication to reply to the NOC, and that failure to
do so shall be a waiver of the right to choose his retention area, the privilege to nominate child/children who may qualify as
preferred beneficiaries and to apply for exemption/exclusion from CARP coverage.
12. The other modes of service/delivery/receipt of the NOC shall be as follows:
12.1 Service upon co-owners — In case of co-ownership, the NOC shall be served upon each and every co-owner, unless one
is specifically authorized to receive for the co-owners.
12.2 Service upon minors or incompetents — When the LO is a minor, insane or otherwise incompetent, service shall be made
upon him/her personally and to his/her legal guardian if he/she has one, or if none, upon his/her guardian ad litem whose
appointment shall be applied for by the Department of Agrarian Reform (DAR). In the case of a minor, service may also be made
on his/her father and/or mother.
12.3 Service upon entity without juridical personality — When the LOs who are persons associated through an entity without
juridical personality are issued a NOC under the name by which they are generally or commonly known, service may be effected
upon all the LOs by serving upon any one of them, or upon the person in charge of the office or place of business maintained in
such name. Such service shall not individually bind any person whose connection with the entity has, upon due notice, been
severed before the proceeding was brought.
12.4 Service upon domestic private juridical entity — When the LO is a corporation, partnership or association organized under
the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general manager,
corporate secretary, treasurer, in-house counsel or administrator.
13. Within thirty (30) calendar days from receipt of NOC or from its date of publication, the LO has:
13.1 The right to choose a retention area not exceeding five (5) hectares pursuant to Section 6 of R.A. No. 6657, as amended;
and
13.2 The privilege to nominate child/ren who may qualify as preferred beneficiary/ies. SaETCI
The landowner is likewise given the same thirty (30)-day prescribed period from receipt or date of publication of NOC,
whichever is applicable, within which to protest coverage. Upon receipt of the protest of coverage by DAR, the LO is given another
thirty (30) days to substantiate his/her protest and/or application for exemption or exclusion from CARP coverage. Failure to
comply within the aforementioned 30-day reglementary periods shall be construed as a waiver or abandonment of the right to
protest and/or to file for an application for exemption or exclusion from CARP coverage.
14. Notwithstanding a protest of coverage or an application for exemption or exclusion by a landowner, the processing of the
claim folder, including valuation and the issuance of Certification of Deposit (COD) by the Land Bank of the Philippines (LBP) and
the transfer of title to the Republic of the Philippines, shall continue unless the Regional Director or the DAR Secretary, as the
case may be, suspends the processing based on preliminary findings on grounds for exemption or exclusion or the Supreme
Court issues a Temporary Restraining Order (TRO) on the processing of the claim folder.
B. Retention
1. All landholdings five (5) hectares and below shall not be subject to CARP coverage except for landholdings submitted for
voluntary offer to sell (VOS) before July 1, 2009 wherein the retention right has been waived. The PAROs shall issue Certification
of Retention to landowners who have already availed of the same and cover all areas in excess thereof.
2. For VOS lands submitted prior to July 1, 2009 where the master list of ARBs has been finalized, the retention areas of
landowners covered under said VOS shall be processed under the existing guidelines of R.A. No. 6657, as amended, before July
1, 2009.
3. Landowners who own lands five (5) hectares or less may file a request for the issuance of Certification of Retention.
4. Landholdings covered by homestead grants and Free Patents issued pursuant to Commonwealth Act (C.A.) No. 141 still
owned by the original grantees or their direct compulsory heirs shall be retained by them as long as they were cultivating the said
landholdings at the time of the approval of R.A. No. 9700 and continue to cultivate the same.
5. Heirs of deceased landowners who died after June 15, 1988 and whose lands are covered under CARP are only entitled
to the five (5) hectare retention area of the deceased landowner.
6. For landholdings under compulsory acquisition (CA), the landowner shall choose his retained area within thirty (30) days
from receipt of Notice of Coverage (NOC) or date of publication of NOC. TEaADS
Failure to exercise the right to choose within the prescribed period shall constitute a waiver thereof. In which case the
DAR, through the MARO, shall automatically choose for the landowner his/her retention area.
For landholdings under voluntary offer to sell (VOS), the landowner shall exercise his right of retention simultaneously at
the time of the offer for sale of the subject landholding.
7. When landowners waive their right of choice, the following factors shall be considered in choosing their retention area:
6.1 commodity produced;
6.2 terrain;
6.3 infrastructure available; and
6.4 soil fertility.
8. For marriages covered by the New Civil Code, in the absence of an agreement for the judicial separation of property,
spouses whose agricultural land properties are all conjugal may retain a total of not more than five (5) hectares of such properties.
However, if either or both of them are landowners in their respective rights (capital and/or paraphernal), they may each retain not
more than five (5) hectares of their respective landholdings. In no case shall the total retention of such couple exceed ten (10)
hectares.
9. For marriages covered by the Family Code, which took effect on August 03, 1988, a husband owning capital property
and/or a wife owning paraphernal property may retain not more than five (5) hectares each, provided they executed a judicial
separation of properties prior to entering into such marriage. In the absence of such an agreement, all properties (capital,
paraphernal and conjugal) shall be considered to be held in absolute community, i.e., the ownership relationship is one, and,
therefore, only a total of five (5) hectares may be retained by each couple.
10. The DAR shall notify the LO, through personal service with proof of receipt or by registered mail with return card, the
portion selected as his/her retention area if the LO fails to exercise such right within the prescribed period.
11. In case a tenant chooses to remain in the LO’s retained area, he/she shall be a leaseholder in the said land and shall not
qualify to be a beneficiary under CARP. Conversely, if the tenant chooses to be a beneficiary in another agricultural land, he/she
cannot be a leaseholder in the land retained by the LO. The tenant must exercise this option within a period of one (1) year from
the time the LO manifests his/her choice of the area for retention.
12. Tenants/lessees in the retained areas who do not wish to become leaseholders in the retained lands shall be given
preference in other landholdings whether or not these lands belong to the same landowner, without prejudice to the farmers who
are already in place and subject to the priorities under Section 22 of R.A. No. 6657, as amended. IcESDA
13. In all cases, the security of tenure of the farmers or farmworkers on the LO’s retained land prior to the approval of R.A. No.
6657, as amended, shall be respected. Further, actual tenant-farmers in the landholdings shall not be ejected or removed
therefrom.
14. Land transactions executed prior to R.A. No. 6657, as amended, shall be valid only when registered with the Registry of
Deeds within a period of three (3) months after June 15, 1988 in accordance with Section 6 of R.A. No. 6657, as amended.
Where the transfer/sale of a landholding involves a total of five (5) hectares and below and such landholding is the
retention area of the transferor or subject of retention by the transferor, and the transferee will not own an aggregate of more than
five (5) hectares as a result of the sale, the transfer is legal and proper. However, a DAR clearance is needed for the purpose of
monitoring and as requisite for the registration of the title in the name of the transferee with the Registry of Deeds (ROD).
In the case of multiple or a series of transfers/sales, only the first five (5) hectares sold/conveyed and the corresponding
titles issued by the ROD in the name of the transferee shall be considered valid and be treated as the transferor’s retained area,
but in no case shall the transferee exceed the five (5)-hectare landholding ceiling pursuant to Sections 6, 70 and 73 (a) of R.A. No.
6657, as amended. In so far as the excess area beyond five (5) hectares sold and conveyed is concerned, the same shall be
covered under CARP, regardless of whoever is the current title-holder to the land, considering that the transferor has no right of
disposition of these lands since CARP coverage of these lands is mandated by law as of June 15, 1988. Any landholding still
registered in the name of the landowner after earlier dispositions up to an aggregate of five (5) hectares are no longer part of his
retention area and therefore shall be covered under CARP.
15. CARP covered agricultural lands which are to be expropriated or acquired by the local government units (LGUs) and to be
used for actual, direct and exclusive public purposes, such as roads and bridges, public markets, school sites, resettlement sites,
local government facilities, public parks and barangay plazas or squares, consistent with the approved local government land use
plan, shall not be subject to the five-hectare retention limit. However, prior to the expropriation/acquisition by the LGU, the subject
land shall first undergo the land acquisition and distribution process of the CARP, and the ARBs therein shall be paid just
compensation without prejudice to their qualifying as ARBs in other landholdings under the CARP.
16. The title of the land awarded under the agrarian reform program must indicate that it is an Emancipation Patent (EP) or
Certificate of Land Ownership Award (CLOA) and any subsequent transfer of title must also indicate that it is an EP or a CLOA.
17. Pursuant to Section 4 of R.A. No. 9700, an LGU may, through its Chief Executive and/or an ordinance, exercise the power
of eminent domain on agricultural lands for public use, purpose, or welfare of the poor and the landless, upon payment of just
compensation to agrarian reform beneficiaries (ARBs) on these lands, pursuant to the provisions of the Constitution and pertinent
laws. The power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the ARBs,
and such offer was not accepted. In cases where the land sought to be acquired has been issued with a Notice of Coverage or is
already subject to voluntary offer to sell (with letter-offer submitted to DAR) the concerned LGU shall suspend the exercise of its
power of eminent domain until after the LAD process has been completed and the title to the property has been transferred to the
ARBs. cDACST
Where agricultural lands have been subjected to expropriation, the ARBs therein shall be paid just compensation. For this
purpose, lands ―subjected to expropriation‖ includes all agricultural lands which have been reviewed and approved by the DAR to
be actually, directly and exclusively used by the LGU for public purpose with a case for expropriation already filed by the LGU
before a judicial court. ARBs are those who have been certified by the Barangay Agrarian Reform Council (BARC) and DAR as
beneficiaries of the subject landholdings.
18. The expropriation/conversion of agricultural lands shall be subject to the existing guidelines of DAR on land conversion.
Irrigable and irrigated lands where (1) there is agricultural activity, (2) land is suitable for agriculture, or (3) the land is presently
occupied and tilled by farmers shall not be subject of expropriation by the LGUs.
C. Land Acquisition
1. Pursuant to Section 3 of R.A. No. 9700, the landholdings of LOs owning a total of five (5) hectares or less shall not be
subject of acquisition and distribution under CARP.
2. Landholdings above five (5) hectares which were offered under voluntary land transfer (VLT) and not approved by the
DAR shall be covered under compulsory acquisition (CA).
All VLT applications submitted to DAR after June 30, 2009 shall no longer be processed.
3. Landowners (LOs) may voluntarily offer their private agricultural lands for coverage under R.A. No. 6657, as amended or
under R.A. No. 9700. Upon its acceptance by the DAR, the Letter-Offer for coverage under Voluntary Offer to Sell (VOS) can no
longer be withdrawn. In any case, the DAR can immediately subject such landholding to coverage under compulsory acquisition
and distribution under CARP notwithstanding the schedule of prioritized phasing under R.A. No. 9700.
The acceptance letter for VOS shall stipulate that upon offer under VOS, the schedule of coverage under R.A. No. 9700 is
deemed waived.
Landowners who received NOCs for their landholdings under Compulsory Acquisition (CA) may be allowed to shift to
Voluntary Offer to Sell (VOS), provided, that the claim folder (CF) for the subject landholding has not yet been received by the
Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for valuation.
4. Landowners who have voluntarily offered their landholdings for coverage under CARP and those who have previously
waived their rights to retain are disqualified from becoming ARBs of other landholding/s being covered or to be covered under
CARP. The LO’s voluntary offer or his previous waiver is construed to be his inability and/or unwillingness to cultivate the land and
make it productive. EcIDaA
Likewise, children of the same landowners who were not nominated as preferred beneficiaries are disqualified from
becoming an ARB in another landholding following the qualification criteria pursuant to Section 22 of R.A. No. 6657, as amended.
5. For tenanted lands or lands under leasehold, the Agrarian Reform Beneficiary/ies (ARB/s) shall continue to pay their lease
rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues a Certification of Deposit (COD).
6. As a general rule, untitled public alienable and disposable (A & D) lands are within the jurisdiction of the Department of
Environment and Natural Resources (DENR) pursuant to Commonwealth Act (C.A.) No. 141 (Public Land Act). However, subject
lands are deemed ―private‖ and for coverage by the DAR, if all the requisites specified in R.A. No. 6940, as amended by R.A. No.
9176 for the determination whether or not private rights over a landholding have already been acquired based on the following:
a. Continuous occupancy and cultivation by oneself or through one’s predecessors-in-interest for at least thirty (30) years
prior to the effectivity of R.A. No. 9176 on December 4, 2002 (i.e., December 1972);
b. The land must have been classified as alienable and disposable for at least thirty (30) years prior to the effectivity of R.A.
No. 9176;
c. One must have paid the real estate tax thereon; and
d. There are no adverse claims on the land.
In cases where the DAR and DENR have jointly identified specific untitled properties that may be covered under the LAD
component of CARP, the DENR-Community Environment and Natural Resources Office (CENRO)/Provincial Environment and
Natural Resources Office (PENRO) or Regional Technical Director (RTD) — Land Management Service (LMS) shall issue the
certification that the subject tract of land is within an area classified as alienable and disposable.
7. The current list of all lands covered by NOCs and all remaining unacquired and undistributed landholdings covered under
CARP that are in the process of acquisition and distribution or will be acquired based on the schedule of priorities under Section 5
of R.A. No. 9700 shall be submitted by the DARPO to the ROD concerned for segregation of the corresponding original copy of
the Certificates of Title of all these lands from the regular volume or files of the Registry, and the compilation of the same in a new
separate volume (CARP Volume) until the customary number of titles constituting a regular volume is reached. This CARP
Volume shall be treated as a restricted volume and any voluntary transaction on any of the titles included in this restricted file shall
be subject to clearance in writing from the PARO. The maintenance of the CARP Volume shall be undertaken by the LRA-CARP
personnel under the supervision of the ROD. AHaDSI
8. Any title contained in the CARP Volume shall only be returned to the general/regular file upon proof that the property
covered by said title is exempted, excluded or ascertained to be outside CARP coverage. Such proof may be in the form of a
Court Order or DAR Order which has become final and executory.
9. The ROD shall issue a Transfer Certificate of Title (for titled properties) and an Original Certificate of Title (for untitled
properties) in the name of the Republic of the Philippines (RP title) upon receipt of a copy of the LBP’s Certification of Deposit
(COD) from the DARPO.
10. Landholdings distributed by the DENR under R.A. No. 6657, as amended shall no longer be acquired and distributed by
the DAR.
11. Landholdings subject of acquisition shall be validated based on ownership documents and on the projection by the DAR
on DENR land classification maps to determine whether or not the areas are alienable and disposable.
12. All projections undertaken by the DARPO on land titles, whether administratively or judicially (survey was based on the
cadastral map of the Department of Environment and Natural Resources {DENR}) issued, shall be confirmed or validated by the
DENR-Community Environment and Natural Resources Office (CENRO) or Provincial Environment and Natural Resources Office
(PENRO) as to the land classification status of said lands.
All projections undertaken by the DARPO on lands covered by judicially issued titles and whose survey was based on the
Private Survey (Psu) Plan of the Land Registration Authority (LRA) shall be confirmed or validated by the LRA on whether these
lands do not overlap with other titled or decreed property.
13. Titles judicially issued prior to 1921 based on Act No. 2874 need not be validated or confirmed by the DENR-
CENRO/PENRO as to their land classification status as such lands are classified as alienable and disposable. However, the
DARPO shall:
13.1 Undertake the projection as to land classification status; and
13.2 Obtain a certification from the Land Registration Authority (LRA) that the property does not overlap with a titled or decreed
property. Such certification shall include, among others, the Judicial Decree number, date of issuance of Decree, name of
adjudicatee, location and area.
Such properties that partially overlap with other titled or decreed properties shall be segregated accordingly during the
conduct of survey by the landholdings subject of acquisition. The acquisition and distribution of such landholdings that either
partially or fully overlap with decreed properties shall continue regardless in whose name the decree is. TCaEIc
14. As a general rule, the conduct of survey to determine land use, segregation of coverable and not coverable area, and
subdivision survey shall be undertaken prior to field investigation (FI). The PARO shall ensure that all field survey activities shall
be completed before the conduct of field investigation (FI).
However, in the event that the finalization of the master list of ARBs will necessitate resolution of petitions for inclusion and
exclusion of ARBs in the master list, the PARO shall inform the Land Bank of the Philippines (LBP) regarding the matter, in which
case, the conduct of subdivision survey will come after the field investigation (FI) or upon the finalization of the master list of ARBs
so as not to delay the land acquisition process.
15. The Land Use Management and Development (LUMD) fund shall be released and utilized only for CARP covered lands
with Requisition Survey Services (RSS) approved by the DAR’s Bureau of Land Development (BLD), pursuant to existing
guidelines on requisition, approval and monitoring of survey services.
16. A landowner-mortgagor of a foreclosed agricultural land where the two-year right of redemption period has already expired
and is subsequently to be covered under CARP, cannot qualify as an ARB on the foreclosed land notwithstanding his/her being in
actual possession and cultivation thereof. The DAR shall be responsible for taking possession of the land by negotiating or filing of
the appropriate case, if necessary, and to successfully install the qualified ARB/s.
D. Land Valuation and Landowner Compensation
1. The compensation for lands covered under R.A. No. 9700 shall be: a) the amount determined in accordance with the
criteria provided for in Section 7 of the said law and existing guidelines on land valuation; or b) the value based on the order of the
DAR Adjudication Board (DARAB) or the regular court, which has become final and executory.
The basic formula for the valuation of lands covered by VOS or CA shall be:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
Where: LV = Land Value
CNI = Capitalized Net Income (based on land use and productivity)
CS = Comparable Sales (based on fair market value equivalent to 70% of BIR Zonal Value)
MV = Market Value per Tax Declaration (based on Government assessment)
1.1 If three factors are present ATcEDS
When the CNI, CS and MV are present, the formula shall be:
LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)
1.2 If two factors are present
1.2.1 When the CS factor is not present and CNI and MV are applicable, the formula shall be:
LV = (CNI x 0.90) + (MV x 0.10)
1.2.2 When the CNI factor is not present, and CS and MV are applicable, the formula shall be:
LV = (CS x 0.90) + (MV x 0.10)
1.3 If only one factor is present
When both the CS and CNI are not present and only MV is applicable, the formula shall be:
LV = MV x 2
In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same estate
under consideration or within the same barangay, municipality or province (in that order) approved by LBP within one (1) year
from receipt of Claim Folder (CF.)
The specific guidelines governing the valuation of lands under voluntary offer to sell (VOS) or compulsory acquisition (CA)
pursuant to R.A. No. 6657, as amended by R.A. No. 9700 are provided in CARP-LAD Annex A of this Order.
2. All previously acquired lands wherein valuation is subject to challenge by landowners shall be completed and finally
resolved pursuant to Section 17 of R.A. No. 6657, as amended.
In like manner, claims over tenanted rice and corn lands under P.D. No. 27 and Executive Order (E.O.) No. 228 whether
submitted or not to the Land Bank of the Philippines (LBP) and not yet approved for payment shall be valued under R.A. No. 6657,
as amended.
Landholdings covered by P.D. No. 27 and falling under Phase I of R.A. No. 9700 shall be valued under R.A. No. 9700.
3. In cases of rejection, landowners may withdraw the original value of the landholding as determined by the Department of
Agrarian Reform (DAR) and Land Bank of the Philippines (LBP) per Memorandum of Valuation (MOV) and subsequently
deposited in their names, subject to their submission of the requirements for payment. ATESCc
When the LO later accepts the original value or as recomputed by the LBP based on existing valuation guidelines, mere
filing of a manifestation by the LO as regards the acceptance of the original value or a joint manifestation by the LO and the LBP
on the recomputed value with the DAR Adjudication Board (DARAB) shall automatically terminate the just compensation case
pending thereat.
4. Landowners, other than banks and financial institutions, who voluntarily offer their lands for sale, shall be entitled to an
additional five percent (5%) cash payment.
5. For landholdings which were conveyed after the effectivity of R.A. No. 6657, the LBP shall consider the transferor as the
payee.
However, payment must be released to the LO-transferee if the LO-transferor issues a Special Power of Attorney (SPA) or
Deed of Assignment in favor of the former.
6. In the determination of the Annual Gross Production (AGP), Selling Price (SP) and Cost of Operation (CO) to be used in
the land valuation, the audited financial statement filed with the Bureau of Internal Revenue (BIR) shall be obtained by the
DARMO from the LO fifteen (15) days prior to the date of field investigation. If the landowner fails to submit the same, the DAR
and LBP may adopt applicable industry data or, in the absence thereof, conduct an industry study on the specific crop.
7. Small portions or patches within the covered landholdings which are determined to be less productive than the bigger
portion during the conduct of joint field investigation shall be valued based on the current use of the adjacent portions, provided
that said small portions or patches shall not exceed 10% of the productive area.
Likewise, small portions or patches of landholdings above 18 percent slope, undeveloped and of no use to the landowner
shall be valued as idle provided it shall not exceed 10% of the covered landholding.
E. Farmer Beneficiary Identification, Screening and Selection
1. Farmers/Tillers and farmworkers who meet the following qualifications shall be eligible as beneficiaries under the
Comprehensive Agrarian Reform Program:
1.1 General Qualifications. All agrarian reform beneficiaries must be:
1.1.1 Landless as defined by R.A. No. 6657, as amended and under Item III (1) of this Order;
1.1.2 Filipino citizen;
1.1.3 Permanent resident of the barangay and/or municipality where the landholding is located as provided under Section 22 of
R.A. No. 6657, as amended.
1.1.4 At least fifteen (15) years of age at the time of identification, screening and selection of farmer-beneficiaries; and
1.1.5 Willing, able, and equipped with the aptitude to cultivate and make the land productive.
1.2 Specific Qualifications for Farmworkers in Commercial Farms and Plantations. In addition to Item 1.1 above, the applicant
must have been employed as of June 15, 1988 in the landholding covered under CARP.
All farmworkers who are holding managerial or supervisory positions as of June 15, 1988 shall not qualify as ARBs.
However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened and
selected shall remain as qualified ARBs. TIcEDC
2. Qualified beneficiaries shall be prioritized as follows:
2.1 agricultural lessees, share tenants and regular farmworkers;
2.2 seasonal farmworkers;
2.3 other farmworkers;
2.4 actual tillers or occupants of public lands;
2.5 collectives or cooperatives of the above beneficiaries; and
2.6 others directly working on the land.
3. The following are grounds for disqualification in the identification of ARBs of the CARP:
3.1 Failure to meet the qualifications as provided for under Section 22 of R.A. No. 6657, as amended;
3.2 Execution of a waiver of right to become an ARB in exchange for due compensation and such waiver has not been
questioned in the proper government entity as of the approval of this Order;
3.3 Non-payment of an aggregate of three (3) annual amortizations and failure to exercise the right of redemption/repurchase
within two (2) years resulting in the foreclosure of mortgage by the LBP of a previously awarded land;
3.4 Deliberate non-payment of three (3) annual amortizations to the landowner (LO) resulting in the repossession by the
landowner (in the case of voluntary land transfer/direct payment scheme or VLT/DPS) of the awarded land;
3.5 Dismissal from the service for cause upon a judgment that is final and executory (and there is no case filed questioning
said dismissal) as of the approval of this Order and if there is any such case, the same has been affirmed with finality by the
proper entity of government;
3.6 Obtaining a substantially equivalent and regular employment, as defined in Item III (9) of this Order;
3.7 Retirement from the service, whether optional or mandatory, or voluntary resignation, provided this was not attended by
coercion and/or deception, and there is no case questioning said retirement or voluntary resignation by the applicant as of the
date of approval of this Order;
3.8 Misuse or diversion of financial support services extended by government (Section 37 of R.A. No. 6657, as amended);
3.9. Negligence or misuse of the land or any support extended by government (Section 22 of R.A. No. 6657, as amended);
3.10 Material misrepresentation of the ARB’s basic qualifications as provided for under Section 22 of R.A. No. 6657, as
amended, P.D. No. 27, and other agrarian laws;
3.11 Sale, disposition, or abandonment of the lands awarded by government under CARP or P.D. No. 27 which is violative of
the agrarian laws;
3.12 Conversion of agricultural lands to non-agricultural use without prior approval from the DAR;
3.13 Final judgment for forcible entry into the property or for unlawful detainer; and IDETCA
3.14 Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality
after proper proceedings by the appropriate tribunal or agency.
4. Only after the agricultural lessees and share tenants, and regular farmworkers have each been awarded three (3) hectares
pursuant to Section 8 of R.A. No. 9700, shall other qualified beneficiaries such as seasonal farmworkers, other farmworkers,
actual tillers/occupants of public lands, collectives or cooperatives of the above beneficiaries, and others directly working on the
land, be accommodated.
5. The child of an LO shall be given preference in the distribution of his/her parent’s land pursuant to existing rules and
regulations on award to children of LOs provided he/she meets all of the following criteria:
5.1 Filipino citizen;
5.2 At least fifteen (15) years of age; and
5.3 Actual tiller or directly managing the farm as of the time of the conduct of field investigation of the landholding under
CARP.
However, only untenanted portions of the landholding may be subject to award to qualified children of the LO and actual
tenant-tillers in the landholding shall not be ejected or removed therefrom. An LO’s child cannot claim that he/she is directly
managing the farm or a specific area of tillage, if the same has tenants or lessees, considering that the tenants on the land have
the right to directly manage the land or area of tillage with the obligation to pay the LO lease rental therefor.
6. In the event that the agricultural land for distribution in commercial farms or plantations is sufficient following the order of
priority under Section 22 of R.A. No. 6657, as amended, the farmworker-beneficiaries therein on or prior to 15 June 1988, shall
enjoy priority of award of a maximum of three (3) hectares.
On the other hand, farmworkers who were hired after the effectivity of R.A. No. 6657 shall be accommodated based on
their length of service, reckoned from 15 June 1988, and subject to Item IV (F) (1.2) of this Order.
7. All potential ARBs of a landholding who have been included in the preliminary list, including those who have signified their
intent or interest with the DARMO to be included in the preliminary list of potential ARBs thereof, must submit the essential
documents to prove their qualifications as ARBs as provided under Item V (D.1.d) of this Order within fifteen (15) days from
posting of the said list.
Potential ARBs who fail to comply with the submission of the required documents to prove their qualifications fifteen (15)
days from the last day of posting of the preliminary list of ARBs shall not be delisted from the preliminary list of ARBs. The
DARMO shall use available documentary evidence at hand, if any, or exhaust all efforts to gather the necessary
information/evidence as bases in the evaluation of the potential ARB’s qualifications and inclusion in the said list.
8. For the purpose of screening and selection of qualified ARBs in commercial farms, plantations and other landholdings that
qualify for collective distribution under Item IV (F) (4) of this Order, all concerned PAROs shall create a Beneficiary Screening
Committee (BSC) whose members shall be composed of the PARO as the Ex-Officio Chairperson, the MARO, the DARPO Legal
Offer, the Provincial Agrarian Reform Coordinating Committee (PARCCOM) Chairman or his representative and the BARC
Chairman of the area where the landholding is located or his representative, pursuant to DAR A.O. No. 7, Series of 2003.
The BSC may invite the landowner/s and/or civil society organization (CSO) representatives in the area to serve as
resource persons in the ARB selection and screening process, as may be necessary.
The BSC shall exercise exclusive jurisdiction in the screening and selection of ARBs in commercial farms, plantations and
other landholdings for collective distribution to ARBs.
9. Qualified beneficiaries in a particular landholding shall include those determined/identified by the DAR during the actual
investigation and documentation process. The master list of ARBs selected by the MAROs or the Beneficiaries Screening
Committee (BSC) in the case of commercial farms or plantations, shall be certified under oath by the BARC and further attested to
under oath by the LO in so far as his tenants, lessees and regular farmworkers in the landholding are concerned, pursuant to Item
IV (E) (10) of this Order. TacADE
10. The right of the LO to attest to the master list of ARBs in so far as the tenants, lessees and regular farmworkers in his/her
landholdings are concerned, is deemed waived after the lapse of fifteen (15) days from his/her receipt of the said master list of
ARBs, if he fails to act on it within the said period. Thereafter, the master list of ARBs shall become final and executory.
Landowners who fail, refuse or delay the issuance of the attestation despite proof of qualification of the beneficiaries, shall be
liable under Sections 24 and 25 of R.A. No. 9700.
In case of partial or full non-attestation or repudiation by the LO of the ARBs in the master list, the LO shall be required to
submit evidence to sustain his partial or full non-attestation, repudiation of ARBs, and/or substitution or addition to the master list
of ARBs.
The landowner’s refusal to attest to all or specific ARB/s in the master list despite the presentation of proof of their being
either tenants or lessees or regular farmworkers shall not in any way delay the LAD process. The MARO shall submit a report on
this to the PARO.
11. The DARPO shall, within fifteen (15) days from receipt of the DARMO’s report, conduct a revalidation of the qualifications
of the ARBs’ being tenants or lessees or regular farmworkers in cases where the landowner refuses to attest to:
11.1 Specific ARBs in the master list of ARBs (partial attestation);
11.2 Specific ARBs in the master list of ARBs (partial attestation) and identifies other ARBs either by substitution or addition
whom the LO claims are his tenants, lessees or regular farmworkers; or
11.3 All ARBs in the master list of ARBs (full non-attestation) and identifies other ARBs either by substitution or addition whom
the LO claims are his tenants, lessees or regular farmworkers.
Should the PARO find that there is possible merit to the LO’s partial or full non-attestation of the master list of ARBs, he
shall order the BARC to conduct compulsory arbitration within thirty (30) days to pass upon the issue.
The BARC shall submit a report of its findings within five (5) days after arbitration to the PARO who shall then evaluate
and finally determine the qualifications of the ARBs in the master list. The PARO’s decision shall be final in so far as the master
list is concerned.
12. Protests for inclusion/exclusion from the master list of qualified ARBs may be filed in writing at the DARPO by an
interested party not later than fifteen (15) days from the last day of posting of the master list, for resolution within thirty (30) days
from receipt of the same.
13. The master list of qualified ARBs becomes final after the lapse of fifteen (15) days from issuance of the PARO’s decision
on the protest and receipt of the same by the parties.
14. The authority of the PARO to determine ARBs’ qualifications is specifically limited in the context of partial attestation or full
non-attestation by the LO and to resolve protests and petitions on the ARBs’ qualifications to be included in the master list. After
this phase, the other processes and the authority to decide on the determination of ARBs’ qualifications under specific issuances
(e.g., inclusion/exclusion of ARBs issued with CLOA from the master list of ARBs under agrarian law implementation cases) shall
remain.
15. In case an appeal/motion for reconsideration is filed on the PARO’s decision/s or order/s for inclusion/exclusion of potential
ARBs in/from the master list, the rules and procedures provided under the existing agrarian law implementation (ALI) rules shall
be followed.
16. The ARBs who qualify under the screening process shall state under oath before the judge of the city or municipal court
that he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the
compensation of the land and the land taxes thereon as stipulated in the Application to Purchase and Farmer’s Undertaking
(APFU).
ARBs in the master list who fail or refuse to execute and sign the APFU shall be given thirty (30) days from the date of
receipt of the APFU to sign it. Failure to sign the APFU within the reglementary period of thirty (30) days shall be considered as a
waiver of right to become an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to
sign and execute the APFU within the prescribed period.
F. Land Distribution
1. Equitable distribution of the land shall be observed subject to the following considerations:
1.1 Landholdings covered by CARP shall be distributed first to agricultural lessees and share tenants and regular farmworkers
of the same landholding up to a maximum of three (3) hectares each. Only when the qualified agricultural lessees and tenants and
regular farmworkers by order of priority under Section 22 of R.A. No. 6657, as amended, shall have received three (3) hectares
each, shall the remaining portion of the subject landholding, if any, be distributed to seasonal and other farmworkers, actual tillers
or occupants of public lands, collectives or cooperatives of the beneficiaries and others directly working on the land, pursuant to
R.A. No. 9700.
1.2 Excess areas subsequent to the three-hectare award to entitled beneficiaries pursuant to R.A. No. 9700, shall be
distributed to other qualified beneficiaries without prejudice to the consideration of immediate family members of agricultural
lessees/tenants/farmworkers who are actually tilling/cultivating such lands as ARBs, subject to the procedures on screening and
selection of ARBs. However, the tenants/lessees in such excess areas shall be given reasonable time to harvest the produce of
his/her crop, subject to the rules on standing crops.
In cases where the land area is not enough to meet the three-hectare award ceiling for each agricultural lessee and tenant
in a particular landholding, the area to be distributed to them shall be based on the actual size of tillage by each tenant/lessee.
Other qualified beneficiaries under Section 22 of R.A. No. 6657, as amended, who are displaced after the distribution of all
available land to tenants/lessees, may still qualify as ARBs in other lands covered under the CARP.
In cases where the three-hectare award limit is satisfied for tenants, lessees and regular farmworkers, the remaining lands
shall be distributed to agrarian reform beneficiaries following the order of priority under Section 22, Items c to f of R.A. No. 6657,
as amended, at an award limit of three (3) hectares each, using the following as the criteria for prioritization in case the land is not
economically feasible and sound to distribute among all the remaining ARBs: ISTHED
a. willingness, aptitude and ability to cultivate and make the land as productive as possible;
b. physical capacity; and
c. length of service.
If there are ARBs who equally meet the foregoing criteria, priority shall be given to ARBs who have continuously worked
on the subject landholding.
The other farmworkers on the land who cannot be accommodated shall be put in a wait list of potential ARBs who will be
awarded in other landholdings covered by the CARP.
1.3 For untenanted land, all the farmers/tillers/farmworkers therein who qualify under the existing guidelines on the
identification, screening and selection of Agrarian Reform Beneficiaries (ARBs), shall be considered as potential beneficiaries in
the estate, provided that the proportional share of each will not exceed three (3) hectares, otherwise, additional farmworkers shall
be considered.
1.4 For unoccupied lands, each qualified landless farmer shall be allowed the award ceiling of three (3) hectares.
2. In general, the land awarded to an ARB should be under an individual CLOA-title covering one (1) contiguous tract or
several parcels of land cumulated up to a maximum of three (3) hectares.
3. Qualified beneficiaries may opt for collective ownership, through a co-workers or farmers’ cooperative/association or some
other form of collective organization and for the issuance of collective ownership titles: Provided, That the total area to be awarded
shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award
limit of three (3) hectares, except in meritorious cases as may be determined by the Presidential Agrarian Reform Council (PARC)
and that the conditions for the grant of collective CLOAs under Item IV (F) (4.1 to 4.4) of this Order are met.
Under collective ownership, a collective CLOA to the property shall be issued in the name of the co-owners or the farmers’
cooperative/association or collective organization, as the case may be. If the CLOAs are issued to co-owners or to a farmers’
cooperatives/association, the names of the beneficiaries must be listed in the CLOA.
4. Collective CLOAs may be issued to farmers’ cooperatives/associations under the following instances:
4.1 The current farm management system of the land covered by CARP is not appropriate for either individual farming or
division of the landholding into farm parcels;
4.2 The farm labor system is specialized, where the farmworkers are organized by functions such as spraying, weeding,
packing and other similar activities and not by specific parcels;
4.3 The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas;
and
4.4 The farm consists of multiple crops being farmed in an integrated manner or includes non-crop production areas that are
necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot
be subdivided or assigned to individual farmers.
5. If the conditions for the issuance of collective CLOAs no longer exist, the landholding shall be parcelized/subdivided and
the ARBs subsequently issued individual CLOA-titles.
6. For idle and abandoned lands or undeveloped agricultural lands to be covered by CARP, collective ownership shall be
allowed only if the beneficiaries opt for it and there is a clear development plan that would require collective farming or integrated
farm operations exhibiting the conditions described in Item IV (F) (4.1-4.4) of this Order. Otherwise, such lands awarded to ARBs
should be under individual CLOAs/titles, covering one (1) contiguous tract or several parcels of land cumulated up to a maximum
of three (3) hectares.
7. As a general rule, the DAR shall take immediate possession of a landholding upon the issuance of Transfer Certificate of
Title (TCT) or Original Certificate of Title (OCT) in the name of the Republic of the Philippines (RP) by the concerned Registry of
Deeds (ROD), and shall thereafter immediately proceed with the distribution process to the qualified agrarian reform beneficiaries
of the landholding pursuant to Section 16 of R.A. No. 6657, as amended.
8. The ARBs have the right of usufruct over the land from the time the DAR takes constructive and actual possession of the
same until the award of a CLOA.
Pending the award of the CLOA and for the purpose of establishing usufructuary rights, the DAR, upon transfer of the title
in the name of the Republic of the Philippines and it takes actual possession of the land, shall immediately inform the ARBs that
they have been identified and qualified to receive the land.
9. The existence of labor-related problems between the landowner and the farmworkers, including questions on ownership of
the subject landholding and payment of just compensation shall in no case deter or delay the process of land acquisition and
distribution.
10. The rights and responsibilities of the ARB shall commence from their receipt of a duly registered Certificate of Land
Ownership Award (CLOA) and their actual physical possession of the awarded land.
10.1 All ARBs shall exercise diligence in the use, cultivation and maintenance of the land including the improvements thereon.
Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an ARB shall be a ground for the
forfeiture of one’s right as an ARB.
10.2 Lands awarded to ARBs under this Act may not be sold, transferred or conveyed except through hereditary succession or
to the Government, or to the LBP, or to other qualified beneficiaries within a period of ten (10) years; Provided, however, that the
children or the spouse of the transferor shall have a right to repurchase the land from the government or the LBP within a period of
two (2) years from the date of transfer.
10.3 ARBs have the obligation to pay the LBP in thirty (30) annual amortizations with interest at six percent (6%) per annum
unless the ARB opts to accelerate payment.
10.4 Amortization payments shall commence one (1) year from the date of the CLOA registration. However, if the actual
occupancy of the ARB takes place after the CLOA registration, the amortization shall start one (1) year after the constructive and
physical occupation of the land by the ARB.
11. The ARB Cooperative/Association shall assume the responsibility of paying the local government unit (LGU) the real
property tax (RPT) of collectively awarded land subject to the provisions of the Cooperative Code of the Philippines.
12. Land improvements and facilities such as roads, bridges, warehouses, irrigation systems and the like, for common use and
benefit as may be defined by DAR, may be transferred through a Farmers’ Association or Cooperative, or in the absence thereof,
through co-ownership, and equally shared payments covered under either individual or collective land amortizations, as the case
may be.
13. Agricultural lessees and tenants, regular farmworkers and other qualified beneficiaries such as seasonal farmworkers,
other farmworkers, actual tillers/occupants of public lands, members of collectives or cooperatives of the above beneficiaries, and
others directly working on the land who are husband and wife may be entitled to three (3) hectares each provided that they qualify
as ARBs in their own individual rights and that their respective vested rights to the land have been duly established. A separate
CLOA shall be issued to each spouse in such cases. ATCaDE
14. For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be preceded by the
word ―spouses‖. Should the couple qualify as individual ARBs, their names shall be registered in the title, to wit: Juan married to
Maria or Maria married to Juan to indicate that the first name is the awardee. In the case of common-law relationship, the names
of both parties shall likewise appear in the CLOA with the conjunctive word ―and‖ between their names. Should they likewise
qualify as individual ARBs, their names shall be registered without the other. The same provisions shall apply in cases where the
married ARBs or ARBs in a common-law relationship are covered by a collective/co-ownership CLOA and their names annotated
at the back of the said CLOA.
For purposes of ARB inventory and reporting, spouses or parties whose names appear in a single CLOA shall be counted
as one ARB.
15. It is the ministerial duty of the ROD to:
15.1 Issue the title of the land in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds
have been deposited in the name of the landowner constituting full payment in cash and bonds, with due notice to the landowner;
15.2 Register the CLOA generated by DAR;
15.3 Cancel previous titles pertaining thereto; and
15.4 Issue title to the LO’s retained area.
16. All registered CLOAs shall be released by the Registry of Deeds (ROD) to LBP as the mortgagee financing institution. The
LBP shall be the responsible repository of the encumbered CLOAs until the time of their release to the concerned ARBs upon full
payment of the land amortization, and the cancellation of the encumbrance.
G. Installation of Agrarian Reform Beneficiaries on Awarded Lands
1. As owners of awarded lands under CARP, the ARB/s shall take possession of the land covered by his/her/their titles from
the time the same is awarded to them through a registered CLOA.
In case taking possession of the awarded land by the ARBs would imperil or endanger their lives, the DAR shall assume
responsibility for the installation of the ARB/s on the subject land with the assistance of the police or military until they are settled
and in constructive and physical control of the property.
2. As a general rule, there shall only be a one time installation of ARBs on their specific area of tillage as indicated in their
CLOAs, rendering them in constructive and physical possession of the same.
The DAR shall assist the ARBs in reporting cases of threat/harassment or ejection attempts by the former landowner or
other parties to the police or military, and the filing of appropriate legal action against those responsible, if warranted.
3. In case the installation activities would necessitate the provision of police and/or military forces to assist the DARMO
personnel, the Provincial Agrarian Reform Officer (PARO) shall coordinate the said activities with the Department of National
Defense-Armed Forces of the Philippines (DND-AFP) and the Department of Interior and Local Government-Philippine National
Police (DILG-PNP), pursuant to the existing guidelines per Memorandum of Agreement executed by the DAR, Department of
Interior and Local Government (DILG), and Department of National Defense (DND).
4. In the event that the former landowner harasses or threatens the ARB/s installed by the DAR, the affected ARB/s shall
immediately report the matter to the concerned PNP and the DAR. The ARBs should be assisted by the DAR Regional/Provincial
Legal Division, Public Attorney’s Office (PAO) and the Office of the City/Provincial Prosecutors.
5. If upon the effectivity of this Order, the former landowner deliberately acts to delay, stall or obstruct the installation of the
ARBs, a criminal case shall be filed against him/her for violation of Sec. 73 (d) of R.A. No. 6657, as amended. Moreover, the DAR
shall ask that the landowner be held liable by the Court for actual, compensatory and moral damages suffered by the ARB/s.
V. Operating Procedures for the Land Acquisition and Distribution Process
Steps DAR Office/ Activity Forms/Documents
Agency/ Required
Person
Responsible
A. PREPARATION, ISSUANCE AND PUBLICATION OF THE
NOTICE OF COVERAGE
(See CARP-LAD Annex ―E‖ for the Process Flow)
A.1 Projection of Lands for Coverage
A.1.a DARPO Project landholdings for coverage
under CARP in the Department
of Environment and Natural
Resources (DENR) Land
Classification Maps to determine
whether or not the areas are
alienable and disposable, and do
not overlap with any decreed
property. CSaIAc
• If the land is found to be
adjacent to forest or timber
land, determine the date of
issuance of the title. In case
the title was issued prior to
1921 based on Act No. 2874,
the subject land is definitively
considered as alienable and
disposable, and the procedure
in Item V(A)(2) of this Order
shall be undertaken.
• If the title was issued on or
after 1921 based on Act No.
2874, determine whether
these were issued
administratively or judicially.
• For landholdings covered by
judicial titles and the
survey was based on the
Land Registration Authority
(LRA)-Private Survey (PSu)
Plan, the procedure outlined
in Item V(A)(3.1) of this
Order shall be followed.
• For landholdings covered by
administrative titles or
judicial titles and the survey
was based on the DENR
Cadastral Plan, the procedure
outlined in Item V(A)(3.2)
of this Order shall apply.
A.1.b DARPO In the case of untitled properties,
a certification from the LRA
and DENR regarding the status
of the landholding shall be
obtained observing the
following procedures: cTaDHS
• Submit the list of untitled
properties to the DENR-
CENRO/PENRO for
validation on whether
or not the said landholdings
are alienable and disposable,
and for subsequent issuance
of a certification on the matter.
Likewise, submit the same
list to the Bureau of Land
Development (BLD) for it
to obtain the same certification
from the LRA informing
whether these landholdings
are within or outside a
decreed property.
• Upon receipt of both
certifications, undertake
the following:
1. If the untitled land totally
overlaps with a decreed
property, continue with
the acquisition and
distribution of the decreed
property regardless in
whose name the decree is.
2. If the untitled property is
totally not alienable and
disposable, discontinue
with the coverage of the
subject land.
3. If the untitled land partially
overlaps with a decreed
property, or it is partially
alienable and disposable,
ensure that the portions
of the said lands that are
within the decreed property
and those that are not
alienable and disposable
are segregated during the
conduct of survey.
Likewise, continue with
the acquisition and
distribution of both the
landholding that partially
overlaps with a decreed
property as well as the
latter regardless in
whose name the
landholdings are.
A.1.c DARPO Prepare, in coordination with • CARP-LAD Form
the DARMO, the preliminary No. 1 (Preliminary
information on all Information on
landholdings which were Landholdings
validated and projected by the Validated and
DARPO and subject of joint Projected and
field investigation using Subject of Joint
CARP-LAD Form No. 1. Field Investigation)
A.2 Validation of Landholdings for Coverage
A.2.a DARPO Submit to the BLD list of
landholdings with titles or
decrees issued prior to 1921
based on Act No. 2874.
A.2.b BLD Obtain a certification from
the LRA that the subject
landholdings do not overlap
with a titled or decreed
property.
A.2.c LRA Validate if the subject
landholding overlaps with
a titled or decreed property
based on records and
projections.
Prepare and transmit to
the BLD a certification
regarding the status of the
subject landholding which
should include the following
information: AaHcIT
– Judicial Decree No.;
– Date of issuance of
Decree;
– Name of Adjudicatee;
– Location; and
– Area.
A.2.d BLD Upon receipt of the LRA’s
certification, record and
forward the same to the
DARPO.
A.2.e DARPO • If the subject landholding
partially overlaps with a
titled or decreed property,
ensure that the overlapping
portions thereof are
segregated during the
conduct of survey. Likewise,
continue with the acquisition
and distribution of both the
landholding that partially
overlaps with a decreed
property as well as the
latter regardless in whose
name the landholdings are.
• If the subject landholding
totally overlaps with a
decreed property, continue
with the acquisition and
distribution of the decreed
property regardless in
whose name the decree is.
A.2.f DARPO Prepare, in coordination with • CARP-LAD Form
the DARMO, the preliminary No. 1 (Preliminary
information on all Information on
landholdings which were Landholdings
validated and projected by the Validated and
DARPO and subject of joint Projected and
field investigation using Subject of Joint
CARP-LAD Form No. 1. Field Investigation)
A.3 Landholdings Adjacent to Forest or Timber Land and the Decree was
Issued on or After 1921 Based on Act No. 2874
A.3.1 Landholdings Covered by Judicial Titles and the Survey was Based
on the LRA-PSu Plan
A.3.1.a DARPO Send to BLD the list of
landholdings adjacent to
forest or timber land for
revalidation to ensure that
these are alienable and
disposable.
A.3.1.b BLD Revalidate the said
landholdings which are
adjacent to forest or timber
land vis-a-vis the DENR Land
Classification Map filed at
BLD.
• If the subject
landholding/s is/are found
to be alienable and
disposable, issue a
certification as to its
findings and transmit this
back to the DARPO.
• In case the subject
landholding/s is/are found
to be totally or partially
not alienable and
disposable, transmit these
to LRA with a request for
it to validate whether or
not these lands are
alienable and disposable.
A.3.1.c LRA • Validate the landholding/s
adjacent to forest or timber
land if this/these is/are
alienable and disposable
or not based on records
and projections. SHIcDT
• Prepare a certification
regarding the status of
the landholding/s (i.e.,
alienable and disposable,
partially or fully not
alienable and disposable).
If a landholding is found
to be partially alienable
and disposable, prepare
a sketch map indicating
the approximate size,
contour and portion of
the said landholding that
is considered alienable
and disposable.
• Transmit to BLD the
certification regarding the
status of the landholding,
including the sketch map,
if applicable.
A.3.1.d BLD Upon receipt of the
certification and sketch map,
if any, send these to DARPO
for appropriate action.
A.3.1.e DARPO • If the land is partially
alienable and disposable,
ensure that portions
thereof which are found to
be not alienable and
disposable are segregated
during the conduct of the
survey.
• In case the entire area is
totally not alienable and
disposable, discontinue
with the coverage of the
subject land.
A.3.1.f DARPO Prepare, in coordination with • CARP-LAD Form
the DARMO, the preliminary No. 1 (Preliminary
information on all Information on
landholdings which were Landholdings
validated and projected by the Validated and
DARPO and subject of joint Projected and
field investigation using Subject of Joint
CARP-LAD Form No. 1. Field Investigation)
A.3.2 Landholdings Covered by Judicial or Administrative Titles and the
Survey was Based on the DENR Cadastral Plan
A.3.2.a DARPO Forward to DENR-
CENRO/PENRO the list
of landholdings adjacent to
forest or timber land for
validation to ensure that
these are alienable and
disposable.
A.3.2.b DENR- • Validate the landholdings
CENRO/ adjacent to forest or timber
PENRO land based on its records
and projections.
• Prepare a certification
regarding the status of the
landholdings (i.e., alienable
and disposable, partially or
fully not alienable and
disposable). If a landholding
is found to be partially
alienable and disposable,
prepare a sketch map
indicating the approximate
size, contour and portion
found to be alienable and
disposable. SaITHC
• Transmit to DARPO the
certification regarding the
findings on the landholding,
including a sketch map, if
applicable.
A.3.2.c DARPO • If the land is partially
alienable and disposable,
ensure that said portions
found to be not alienable
and disposable are
segregated during the
conduct of the survey.
In case the land is totally
not alienable and disposable,
discontinue with the
coverage of the subject land.
A.3.2.d DARPO Prepare, in coordination with • CARP-LAD Form
the DARMO, the preliminary No. 1 (Preliminary
information on all Information on
landholdings which were Landholdings
validated and projected by the Validated and
DARPO and subject of joint Projected and
field investigation using Subject of Joint
CARP-LAD Form No. 1. Field Investigation)
A.4 Preparation and Issuance of Notices of Coverage (NOCs)
A.4.a DARPO • Transmit to the DARMO
the validated and projected
list of landholdings in the
ICS/F1 and other
landholdings still unacquired
and undistributed but
coverable under CARP,
indicating the concomitant
phasing schedule of said
lands, giving priority to
private agricultural lands.
• Prepare and send to the • CARP-LAD Form
DARMO the claim folder No. 2 (CF
(CF) documentation Documentation
memorandum for each Memorandum)
landholding, including • CARP-LAD Form
therein the following: No. 3 (Notice of
Coverage)
1. Notice of Coverage or • CARP-LAD Form
Memorandum to the No. 4 (Directive to
MARO directing MARO to Proceed
him/her to proceed with the Coverage
with the coverage of of Agricultural
agricultural lands for Lands with NOCs)
lands already issued
with NOCs, duly
signed by the PARO
and copy furnished the
landowner (LO), as the
case may be; and
2. Preliminary information • CARP-LAD Form
on all landholdings No. 1 (Preliminary
which were validated Information on
and projected by Landholdings
DARPO and subject of Validated and
field investigation (FI) Projected and
which shall form part Subject of Joint
of the claim folder. HDTCSI Field Investigation)
A.4.b DARMO Receive the Notices of • CARP-LAD Form
Coverage for landholdings No. 3 (Notice of
still unacquired and Coverage)
undistributed but coverable • CARP-LAD Form
under CARP or the No. 4) (Directive to
Memorandum to the MARO MARO to Proceed
on the coverage of with the Coverage
agricultural lands for lands of Agricultural
already issued with NOCs, as Lands with NOCs)
the case may be, and cause
the service of either
document to the LO, as the
case may be, pursuant to
Item IV(A)(11) of this Order.
A.4.c DARMO In case the LO’s residence is • CARP-LAD Form
outside the Philippines or No. 5 (Report on
unknown, or the LO refuses Failure to Serve the
to accept the NOC or there is NOC to the LO and
failure to notify the LO Request for NOC
through the regular mode of Publication)
service enumerated under • CARP-LAD Form
Item IV(A)(11) of this Order, No. 6 (NOC
submit a report of this to the Publication)
DARPO and request the
PARO to cause the
publication of the NOC in
a newspaper of general
circulation in accordance with
Item IV(A)(11.4) of this Order.
A.4.d DARMO • Post copies of the NOC for • CARP-LAD Form
at least seven (7) days in No. 3 (Notice of
the bulletin boards or any Coverage)
conspicuous places in the • CARP-LAD Form
city or municipality and the No. 7 (Certification
barangay where the of Posting
property is located and Compliance)
obtain from the proper
barangay or municipal
officer a Certification of
Posting Compliance.
• Commence with the
preparation of claim folder. TcCDIS
A.4.e Landowner Within thirty (30) calendar • CARP-LAD Form
days upon receipt of the NOC No. 8 (Landowner’s
or date of NOC publication, Letter of
submit to the DARMO the Submission of
following: Sketch Map of
Selected Retained
1. Sketch map of the entire Area and List of
property with delineation or Nominated
shading or any general Preferred
indication of the area Beneficiaries)
he/she intends to retain. In • CARP-LAD Form
case the LO fails to No. 9 (Sketch Map
identify his/her retained of the Selected
area and submit the said Retained Area)
sketch map, the DAR shall • Certified copies of
identify and choose the NSO birth
LO’s retention area; certificate/s of
preferred
2. List of name/s of beneficiary/ies
nominated child/ren as nominated by LO
preferred beneficiary/ies • Two (2) other
with address/es, documents
birthdate/s, certified true indicating parental
copies of child/ren’s birth relationship of LO
certificate/s and two (2) to each nominated
other documents with preferred
probative value showing beneficiary/ies
the parental relationship of
the LO to his/her
nominated preferred
beneficiary/ies.
In cases where the LO
contests the coverage of
his/her land under CARP, the
LO has thirty (30) calendar
days from receipt of the NOC,
or if the NOC was served
through newspaper publication,
within thirty (30) days from
date of publication to file
his/her protest/application
for exemption or exclusion
with the DARPO.
A.4.f DARMO Receive from the LO the letter • CARP-LAD Form
of submission of sketch map No. 8 (Landowner’s
of his/her retention area and Letter of
the list of nominated child/ren Submission of
as preferred beneficiary/ies Sketch Map of
and supporting documents Selected Retained
indicating parental Area and List of
relationship to preferred Nominated
beneficiary/ies. Preferred
Beneficiaries)
• CARP-LAD Form
No. 9 (Sketch Map
of Selected Retained
Area)
• Certified copies of
NSO birth certificate/s
of preferred
beneficiary/ies
nominated by LO
• Two (2) other
documents indicating
parental relationship
of LO to nominated
preferred
beneficiary/ies
B. PROCESSING OF LANDOWNER’S RETENTION AREAS
(See CARP-LAD Annex ―F‖ for the Process Flow)
B.1 Landholdings Above Five (5) Hectares
B.1.a DARMO Conduct an Ocular Inspection • CARP-LAD Form
(OCI) for reconnaissance No. 10 (OCI
purposes and to validate the Report)
following: IASEca
a. The status of the • CARP-LAD Form
landholding/s subject of No. 9 (Sketch Map
coverage and the retention of Selected
area chosen by the LO as Retained Area)
identified in the sketch
map; and
b. Names and qualifications • CARP-LAD Form
of nominated children as No. 8 (Landowner’s
preferred beneficiaries Letter of
fifteen (15) years old and Submission of
actually cultivating or Sketch Map of
directly managing the farm Selected Retained
at the time of the conduct Area and List of
of field investigation of the Nominated
landholding under CARP. Preferred
Beneficiaries)
In case the LO fails to choose • CARP-LAD Form
his/her retention area within No. 11 (Notice to
the reglementary period Landowner on the
provided in this Order, the Portion Selected as
MARO identifies the location Retention Area)
and area of the LO’s retention
area based on Item IV(B)(7)
of this Order. The MARO
shall notify the concerned LO
through personal service with
proof of receipt or by
registered mail with return
card on the portion selected
as his/her retention area.
B.1.b DARMO Prepare the Retention Folder • Retention Folder
which should include the OCI – Copy of CARP-
Report, the sketch map or LAD Form No. 8
plan of the retained area (Landowner’s
identified either by the LO or Letter of
the MARO, and copy of Submission of
Notice to Landowner on the Sketch Map of
Portion Selected as Retention Selected
Area and proof of service of Retained Area
said notice, when applicable. and List of
Nominated
Preferred
Beneficiaries)
– CARP-LAD
Form No. 9
(Sketch Map of
the Selected
Retained Area)
– CARP-LAD
Form No. 10
(OCI Report)
– Copy of CARP-
LAD Form No.
11 (Notice to
Landowner on
the Portion
Selected as
Retention Area,
if applicable)
– Proof of Service
of the Notice to
LO on the Portion
Selected as
Retention Area
B.1.c DARMO Submit Retention Folder to • Retention Folder
DARPO for review and
evaluation.
B.1.d DARPO Receive, record, review, and • Retention Folder
evaluate the Retention Folder • CARP-LAD Form
submitted by DARMO. If the No. 12
Retention Folder is in order, (Certification of
prepare the Certification of Retention)
Retention signed by the PARO
and issue the same to
the landowner through
personal service with proof
of receipt or by registered
mail with return card. In
case of incomplete data or
information, notify the
DARMO for appropriate
action.
B.1.e Landowner In case the LO opts for the • CARP-LAD Form
immediate issuance of a title No. 12
for his/her retention area after (Certification of
the issuance of Certification of Retention)
Retention by the PARO, he
can request, in coordination
with the PARO, the Registry
of Deeds (ROD) to issue a
title in the LO’s name on the
portion of his/her retained
area based on the Owner’s
Duplicate Copy of title from
the LO, Approved
Segregation Plan, and
technical description, and
Certificate of Retention.
All fees for the immediate
segregation survey of the
LO’s retention area and the
issuance of title on the same
by the ROD shall be chargeable
to the account of the LO.
B.2 Landholdings Five (5) Hectares and Below
B.2.a Landowner LOs who own lands five (5) • CARP-LAD Form
hectares or less may file a No. 13 (Request for
request for the issuance of a Certification of
Certification of Retention with Retention)
the DAR Regional Office • LO’s Affidavit of
(DARRO), DARPO or sole and aggregate
DARMO, which should be ownership of
accompanied by an affidavit agricultural land
by the LO that the said nationwide
landholding is his/her sole
and aggregate ownership of
agricultural land nationwide.
B.2.b DARRO/ Upon receipt of the request • CARP-LAD Form
DARMO for the issuance of No. 13 (Request
Certification of Retention and for Certification of
LO’s Affidavit of sole and Retention)
aggregate ownership of • LO’s Affidavit of
agricultural land nationwide, sole and aggregate
record and forward the same ownership of
to the DARPO. agricultural land
nationwide
B.2.c DARPO Evaluate the LO’s request for • CARP-LAD Form
the issuance of Certification No. 13 (Request
of Retention and validate and for Certification of
ensure that the LO has no Retention)
other agricultural lands nor • LO’s Affidavit of
has he previously availed of sole and aggregate
the right to retention on any ownership of
CARP covered land. agricultural land
nationwide
B.2.d DARPO Issue Certification of • CARP-LAD Form
Retention to the LO. No. 12 (Certification
of Retention)
B.3 Landholdings with Previous Orders of Retention
B.3.a DARPO Based on its records, issue a • CARP-LAD Form
Certification of Retention to No. 12
LOs of all landholdings with (Certification of
Orders of Retention Retention)
previously issued by the
Regional Director.
B.4 Reports on All Lands Issued Certifications of Retention
B.4.a DARPO Prepare a list of all • CARP-LAD Form
landholdings issued with No. 14 (List of
Certifications of Retention Landholdings with
and submit the same to the Issued Certification
Bureau of Land Acquisition of Retention)
and Distribution (BLAD) for
purposes of creating a
database on all lands subject
of retention and landowners
who have filed for the
issuance of a Certification
of Retention (for landholdings
five (5) hectares and below),
copy furnished the DARRO.
This must be updated every
quarter. aCTHEA
C. LAND ACQUISITION PROCESS
(See CARP-LAD Annex ―G‖ for the Process Flow)
C.1 Lands Covered under Voluntary Offer to Sell (VOS)
C.1.a LO • Files VOS in any DAR FOR TITLED
office through a notarized PROPERTIES:
Letter-Offer with
supporting basic • CARP-LAD Form
ownership documents as No. 15
stipulated under the (Landowner’s
―Forms/Documents Letter-Offer)
required‖ per Item • CARP-LAD Form
V(C.1.a) of this Order. No. 15A (Checklist
of Required
Documents)
• Certified copy of
the original
OCT/TCI on file
with ROD and
photocopy of ODC,
if available
• Certified Copy
of latest Tax
Declaration in the
name of the
registered owner
duly certified by the
Municipal/City
Assessor
• Copy of Approved
Survey Plan
certified by the
DENR-LMS
• CARP-LAD Form
No. 16 (Landowner
Information Sheet
{LOIS} duly
accomplished and
signed by the LO)
FOR UNTITLED
PRIVATE
PROPERTIES:
• CARP-LAD Form
No. 15
(Landowner’s
Letter-Offer)
• CARP-LAD Form
No. 15A (Checklist
of Required
Documents)
• Certification of the
DENR-CENRO/
PENRO or Regional
Technical Director,
Lands Management
Service, that the
tract of land
covered by the
survey is within an
area classified as
alienable and
disposable
pursuant to DAR-
DENR-LBP Joint
Memorandum
Circular No. 12,
Series of 1994 as
reconciled with
R.A. No. 9176
• Certified Approved
Survey Plan or
cadastral map and
geographical
position and plane
coordination of the
points duly certified
by the Chief,
Survey Division
of DENR
• Certified copy of
the latest Tax
Declaration from
the Assessor’s file
in the name of the
claimant with
verified and correct
lot numbers and
area per approved
survey plan
• Instruments of
acquisition covering
the subject property,
such as deeds of
sale, donation,
transfer, etc. in
favor of claimant
and those of his
predecessor/s-
in-interest
• Certification of
the Assessor
concerned showing
the Tax Declaration
issued, the
declarant/s, the
area covered, and
the basis for the
issuances and
cancellations
thereof up to the
Tax Declaration
issued in the name
of the claimant, as
well as any existing
liens on the current
and previous Tax
Declaration, where
applicable
• Certification from
the Clerk of Court
concerned whether
or not the
property/ies identified
in the approved
survey plan is/are
covered by land
registration
proceedings or any
civil case, and if
the same has been
used as a bond in
other court actions
• Certification from
the Assessor’s
Office concerned
that per their
records, the
property/ies as
appearing in the
Approved Survey
Plan is/are free
from all liens
and encumbrances
• LRA certification
that the property
is not within any
decreed or titled
property
• CARP-LAD Form
No. 16 (Landowner
Information Sheet
{LOIS} duly
accomplished and
signed by the LO)
C.1.b DARMO/ Receive and review the basic • CARP-LAD Form
DARPO/ documents enumerated under No. 15
DARRO/ Item V(C.1.a) of this Order for (Landowner’s
DARCO- completeness and require Letter-Offer)
BLAD other applicable documents • CARP-LAD Form
under different situations. If No. 15A (Checklist
the documents are of Required
incomplete, require the LO to Documents)
submit the pertinent • Same documents
document/s within thirty (30) required under Item
days from submission of V(C.1.a)
Letter-Offer. The application • CARP-LAD Annex
shall not be accepted by any ―B‖ (List of
of the receiving offices (i.e., Documents
DARMO, DARPO, DARRO, Required under
DARCO-BLAD) until all the Different Situations)
basic documents are
complied with by the LO.
C.1.c DARMO/ Forward the duly
DARRO/ accomplished Letter-Offer
DARCO- filed by the LO together with
BLAD complete basic documents to
the DARPO of the province
where the property is located.
C.1.d DARPO • Upon receipt and • CARP-LAD Annex
recording of the ―B‖ (List of
documents forwarded by Documents
the DARMO/DARRO/ Required under
DARCO-BLAD, review Different Situations)
and evaluate the
documents applicable
under different situations
as stipulated in CARP-
LAD Annex ―B‖.
• Prepare and send to the • CARP-LAD Form
concerned LO the No. 17 (Acceptance
Acceptance Letter for VOS Letter for VOS)
duly signed by the PARO.
Thereafter, forward to the
DARMO a duplicate copy
of the Acceptance Letter
for VOS, together with the
Letter-Offer and basic
documents, with the
following instruction:
a. Post the Letter-Offer • CARP-LAD Form
and Acceptance Letter No. 7 (Certification
for VOS for seven (7) of Posting
days at the barangay Compliance)
and municipal/city halls
where the property is
located and
subsequently obtain
Certification of Posting
Compliance from the
proper municipal or
barangay official; and
b. Secure from LO the
latest BIR-filed Audited
Financial Statement
supported by accounting
records which shall be
submitted by the LO
fifteen (15) days prior
to the date of field
investigation (FI). DECcAS
C.1.e DARMO • Comply with the
requirements as
enumerated under Item
V(C.1.d) of this Order.
• Conduct preliminary field • CARP-LAD Form
verification on the No. 1 (Preliminary
landholding subject of joint Information on
field investigation using Landholdings
CARP-LAD Form No. 1. Validated and
Projected and
Subject of Joint
Field Investigation)
C.2 Lands Covered under Compulsory Acquisition (CA)
C.2.a DARMO Based on the Memorandum • Same documents
to the MARO on the coverage required under Item
of agricultural lands (for lands V(C.1.a) of this
already issued with NOC as Order except
of December 10, 2009) or CARP-LAD Form
based on the NOC and No. 15
posting of the same within (Landowner’s
seven (7) days at the Letter-Offer)
barangay and municipal/city • CARP-LAD Form
halls where the property is No. 1 (Preliminary
located and the issuance of Information on
the Certification of Posting Landholdings
Compliance by the proper Validated and
municipal and barangay Projected and
official (for lands issued with Subject of Joint
NOC under this Order), the Field Investigation)
DARMO shall: • CARP-LAD Form
No. 7 (Certification
1. conduct preliminary field of Posting
verification on the Compliance)
landholding subject of
joint investigation using
CARP-LAD Form No. 1;
and
2. gather basic ownership
documents per
landholding as listed in
CARP-LAD Form No. 1.
C.3. Lands Covered under Voluntary Offer to Sell (VOS) or Compulsory
Acquisition (CA)
C.3.a DARMO In the case of lands for • LGU-MAO
collective distribution, certification on
determine, in coordination whether or not land
with the Local Government is economically
Unit (LGU) — Municipal feasible and sound
Agriculture Office (MAO) and to divide
other concerned agencies,
whether or not it is
economically feasible and
sound to divide the land
based on the conditions
for the issuance of collective
CLOA-titles as provided
under Item IV(F)(4.1 to
4.4) of this Order. A
corresponding certification
of the LGU-MAO or
other concerned agencies
shall be obtained.
If the conditions for
collective ownership so
warrant, inform the
qualified ARBs of the
need to form a farmers’
cooperative/association for
purposes of collective
distribution of the land to
them, if not yet existing.
In the case of lands that do
not meet the conditions for
collective ownership, such
lands shall be programmed
for distribution under
individual CLOA-titles. SDHAcI
C.3.b DARMO and Proceed with the screening
BSC and selection of potential
ARBs and preparation of
master list of ARBs pursuant
to Item V(D) of this Order.
C.3.c DARMO Simultaneous with the on- • CARP-LAD Form
going preparation of the CF, No. 18 (Requisition
request the DARPO for land for Survey Services
use, segregation and {RSS} Involving
subdivision survey services Lands for
for landholdings subject of Acquisition and
acquisition and distribution. Distribution)
C.3.d DARPO Receive, record and
review/evaluate the request
for survey and the documents
submitted by DARMO. In
case of incomplete
documents, data or
information, notify the
DARMO for appropriate
action.
If the documents, data or
information are complete and
in order, approve the request
for survey based on the
priority areas of the province,
and prepare survey modules
by administration or by
contract in accordance with
the existing guidelines on
bidding and award of CARP
survey projects.
C.3.e DAR Geodetic In coordination with the • Copy of
Engineer/ concerned DARMO, conduct Segregation and
Surveyor- actual land use, segregation Subdivision Survey
Contractor and subdivision surveys of Returns
the landholding. Thereafter, • Copy of Land Use
prepare Land Use Map, and Map
Segregation and Subdivision
Survey Returns, and submit
the same to the DARPO.
During the conduct of survey,
the DARMO shall ensure that
the monuments of survey are
planted in the subject
landholding.
C.3.f DARPO • Ensure that the Land Use • Segregation and
Map, and Survey Returns Subdivision Survey
(segregation and Returns
subdivision) are in order • Copy of Land Use
and complete. Map
• Submit the Survey Returns
(segregation and survey)
to the DARRO.
C.3.g DARRO • Receive, review and evaluate
the Survey Returns and
submit the same to DENR-
LMS for approval.
C.3.h DARPO • Forward to DARMO the • Schedule of Field
following: Investigation (FI)
1. schedule of field
investigation (FI) of
landholdings for
barangays in proximity
of each other for
purposes of optimizing
time and resources;
2. Land Use Map; and
3. copy of segregation
and subdivision plans
pending approval at
the DENR-LMS.
• Coordinate with the LBP
regarding the conduct of
FI, particularly as regards
failure of LO, if applicable,
to submit BIR-filed Audited
Financial Statement. This
is for purposes of
gathering applicable
industry data by the LBP
staff for use during the FI.
C.3.i DARMO Upon receipt of the
documents enumerated in
Item V(C.3.h) of this Order,
the following shall be
undertaken:
a. Secure from the LO the • CARP-LAD Form
latest BIR-filed Audited No. 19
Financial Statement (Certification on
supported by accounting Landowner’s
records fifteen (15) days Failure to Submit
prior to the date of FI. In BIR-filed Audited
case the LO fails to submit Financial
the said document, issue a Statement) or LO’s
certification regarding this. BIR-filed Audited
Financial
Statement
supported by
accounting records
b. Prepare and submit to • CARP-LAD Form
DARPO the corresponding No. 20 (CF
CF containing the Transmittal
following: Memorandum)
– Basic documents
enumerated in Item
V(C.1.a) of this Order;
– BIR-filed Audited
Financial Statement or
in the absence thereof,
certification on LO’s
failure to submit the
said document;
– CARP-LAD Form No. 1
(Preliminary
Information on
Landholding Validated
and Projected and
Subject of Joint Field
Investigation)
– Land Use Map,
Segregation and
Subdivision Plans still
pending approval; and
– Other pertinent
documents
c. Send notice to Barangay • CARP-LAD Form
Agrarian Reform Council No. 21 (Notice to
(BARC) and potential Conduct Field
ARBs and invite the LO, Investigation)
DENR, LGU-MAO (if • CARP-LAD Form
necessary) to the No. 22 (Invitation
scheduled field Letter to the LO on
investigation (FI) at least the conduct of FI)
fifteen (15) days prior to
the date of the FI.
C.3.j DARPO Receive and review the CF
for completeness of initial
documentation. If the
documents, data or
information are complete,
provide a copy of documents
attached in the CF to LBP for
use in the FI. In case of
incomplete documents, data
or information, inform the
DARMO for appropriate
action. STaAcC
C.3.k DARMO, Conduct FI of the property on • CARP-LAD Form
BARC, LBP, the scheduled date together No. 23 (Field
LO, Potential with representatives of LBP, Investigation
ARBs BARC, LO and potential Report)
ARBs, and if necessary, the • LGU-MAO
DENR and/or LGU-MAO. Certification on the
Thereafter, prepare the Field suitability of land to
Investigation Report (FIR) and agriculture, if
submit the same to the necessary
DARPO. • DENR Certification
on the slope of the
land covered under
CARP, if necessary
C.3.l DARPO If there are discrepancies
between the Field
Investigation Report (FIR)
submitted by the DARMO and
the Segregation and
Subdivision Plans that are
pending approval at the
DENR-LMS, coordinate with
the Geodetic Engineer of
DAR/surveyor-contractor to
resolve the discrepancies and
submit the corrected
Segregation and Subdivision
Plan to the DARRO.
C.3.m DARRO Submit the corrected
Segregation and Subdivision
Plan to the DENR-Land
Management Service (LMS).
C.3.n DENR-LMS Issue to the DARRO the
approved segregation and
subdivision plan with
technical description.
C.3.o DARRO Upon return by the DENR-
LMS of the Approved
Segregation Plan and
Approved Subdivision Plan
(ASP), with technical
description, forward the same
to the DARPO.
C.3.p DARPO Upon receipt of the DENR- • Approved
LMS Approved Segregation Segregation Plan
Plan and Approved and Approved
Subdivision Plan (ASP) with Subdivision Plan
technical description of the with Technical
subject property from the Description
DARRO, record and furnish
the DARMO and Assessor’s
Office a copy of the same
for reference.
D. IDENTIFICATION, SCREENING AND SELECTION OF
AGRARIAN REFORM BENEFICIARIES (ARBs)
(See CARP-LAD Annex ―H‖ for the Process Flow)
D.1 Identification and Preparation of Preliminary List of Potential
Agrarian Reform Beneficiaries (ARBs)
D.1.a DARMO With the assistance of the
DARPO, and in coordination
with the BARC, or in the
absence thereof, the
Barangay Council and
concerned non-government
organizations/people’s
organizations (NGOs/POs),
undertake information
dissemination on the activities
for the identification,
screening and selection of
ARBs through ―bandillo‖
mobile system, distribution of
flyers, farmers’ assembly or
meetings and other means
such as the use of the tri-
media (e.g., radio, local
newspapers, local television
networks).
D.1.b DARMO Gather information on the
potential beneficiaries of the
subject landholding with the
assistance of the BARC, or in
the absence thereof, the
Barangay Council and all
other reliable sources of
information in the community,
to include pertinent
information drawn from the
initial OCI/reconnaissance
activity under Item V(B.1.a)
of this Order, employment
records or payrolls in the case
of commercial farms or
plantations.
D.1.c DARMO Prepare the preliminary list of • CARP-LAD Form
potential ARBs, including the No. 24 (Preliminary
names of LO’s preferred List of Potential
beneficiaries, if any. Agrarian Reform
Beneficiaries of
CARP)
D.1.d DARMO Cause the posting of the • CARP-LAD Form
preliminary list of potential No. 24 (Preliminary
beneficiaries in the specific List of Potential
landholding for a period of Agrarian Reform
fifteen (15) days in at least Beneficiaries of
three (3) conspicuous places: CARP)
1. in the respective barangay
halls of the barangays
where the landholding is
located;
2. in the municipal halls of
the municipalities where
the landholding is located;
and
3. in other conspicuous
places in the community,
commercial farm or
plantation, as the case
may be.
The preliminary list shall be
posted in a bulletin board
shielded from the elements
and with ample space to
accommodate all the names
of the potential ARBs.
The preliminary list of • CARP-LAD Form
potential beneficiaries in the No. 25, (Request/
specific landholding shall be Petition to be
accompanied by information Included as
on the inclusion of the Potential ARB in
potential ARBs in the the Preliminary List
preliminary list and a general of Agrarian Reform
announcement written in both Beneficiaries)
English and the local dialect,
enjoining other parties who
are not in the preliminary list,
if any, to signify their intent or
interest to the DARMO to be
included as potential ARBs in
the specific landholding if
qualified. Information shall
instruct the listed potential
ARBs and other concerned
parties to submit to the
DARMO within fifteen (15)
days from the last day of
posting of the said list, which
should be stipulated therein,
any or all of the following
documents as proof of their
identity and qualification as
an ARB:
a. Community Tax Certificate
(cedula) or barangay
certificate indicating
potential ARBs as
permanent or bonafide
residents of the barangay;
b. Social Security System
(SSS) identification card
for farmworkers; ACIESH
c. Voter’s identification card
or certified copy of voter’s
registration record;
d. Other identification
documents with probative
value.
e. Certificate of aggregate
land owned by the ARB
from the city/municipal
assessor, land titles, tax,
declarations, as the case
may be;
f. Leasehold contract and/or
proof of tenancy papers, if
available;
g. Employment certificate
indicating length of service
and/or periods of
employment in the
commercial farm or
plantation, if applicable;
h. Payslips or payroll if
applicable;
i. Original or certified copy
of notice of dismissal or
retrenchment for
farmworker beneficiaries;
j. Original or certified copy of
decision, order or ruling by
a court, quasi-judicial body
or administrative agency
in the event that there was
a case related to the
dismissal, retrenchment,
etc., of the potential ARB;
k. Original or certified copy of
letter of resignation for
farmworker beneficiaries;
and
l. Other documents which
can establish the
qualifications of the
potential beneficiary in a
landholding, commercial
farm, or plantation.
D.1.e DARMO After the required fifteen-day • CARP-LAD Form
period, obtain a Certification No. 26
of Posting Compliance from (Certification of
barangay/municipal officials, Posting
and/or other authorized Compliance for List
officials in the community, of ARBS)
indicating therein the inclusive
days of posting.
D.1.f DARMO • Schedule the conduct of a
meeting with potential
ARBs in the preliminary
list and those who may
have signified their
qualification and intent to
be included as farmer
beneficiary in the subject
landholding, commercial
farm or plantation, which
shall be held not later than
thirty (30) days from the
last day of posting of the
Preliminary List of ARBs.
• In the case of commercial
farms, plantations and
other landholdings
qualified for collective
distribution, the schedule
of this meeting must be
coordinated with the
Beneficiary Screening
Committee (BSC) at the
DARPO to ensure its
presence and participation
during the meeting with
the potential beneficiaries
as provided under Item V
(D.2.a) of this Order.
D.1.g DARMO • Send Invitation Letters by • (CARP-LAD Form
personal service or by No. 27 (Invitation
registered mail with return Letter)
card to potential
beneficiaries in the • (CARP-LAD Form
preliminary list and all No. 28 (General
those who may have Notice to All
signified their qualification Interested Parties)
and intent for inclusion in
the preliminary list
regarding the schedule of
meeting and post a
general notice on the
same at the three (3)
conspicuous places
enumerated under Item V
(D.1.d) of this Order. SCaTAc
The Invitation Letters
regarding the notice of
meeting shall state that
the potential beneficiaries
and other concerned
parties should bring with
them all pertinent and
available documents
provided under Item V
(D.1.d) of this Order as
proof of their identity and
qualification as an ARB, if
not yet submitted.
• For invitation letters • (CARP-LAD Form
regarding the schedule of No. 29 (Proof of
meeting served by mail or Service of Invitation
personal service and Letter)
positively acknowledged
or received by the
potential ARB and other
concerned parties, the
DARMO shall accomplish
Item I of CARP-LAD Form
No. 29 (Proof of Service of
Invitation Letter), as proof
of personal service to be
placed on file. In case the
potential ARB refuses to
receive/accept the
invitation letter on notice of
meeting, the DARMO shall
fill-up/accomplish Item II of
the same form.
D.2 Screening and Preparation of Updated Preliminary List of Agrarian
Reform Beneficiaries (ARBs)
D.2.a DARMO • With the assistance of the • CARP-LAD Form
BARC, conduct a meeting No. 30 (Agrarian
on the scheduled date with Reform Beneficiary
the potential beneficiaries Application Form)
in the preliminary list and
other concerned parties, if
any, and undertake the
following:
a. Explain in the local
dialect, the qualifications,
rights, responsibilities
and obligations of ARBs
and the identification and
screening process for
ARBs;
b. Individually interview all
potential ARBs in the
preliminary list and
concerned parties for the
determination of
qualifications and the
initial review of
documents;
c. Assist potential
beneficiary-applicants in
accomplishing the
Beneficiary Application
Form; and
d. Discuss issues and
concerns on
qualifications of potential
ARBs in the preliminary
list and those who may
have signified
qualification and intent
for inclusion in the
preliminary list.
• In the case of commercial
farms and plantations and
lands qualified for
collective distribution, the
BSC must be present at
this meeting and take the
lead, in coordination with
the MARO, in the
aforementioned activities
enumerated under Item V
(D.2.a)(a-d) of this Order.
D.2.b DARMO In close coordination with the
BARC, review and evaluate
the potential beneficiaries’
application forms vis-a-vis
documents/evidence
submitted and ensure that
based on the information from
the applicant himself or other
persons and the available
documents, the qualifications
provided in Item IV(E)(1) of
this Order are met.
D.2.c DARMO If the potential ARBs • CARP-LAD Form
evaluated qualify as No. 31 (Notice of
beneficiaries, sustain or Disqualification as
include, as the case may be, Agrarian Reform
their names in the preliminary Beneficiary)
list. The potential ARBs who
do not meet the qualifications
provided in Item IV(E)(1) of
this Order shall be excluded
from the preliminary list and
informed accordingly through
personal service or registered
mail with return card.
D.2.d DARMO Prepare an Updated • CARP-LAD Form
Preliminary List of Potential No. 32 (Updated
Beneficiaries of CARP for Preliminary List of
subsequent ranking and Potential
prioritization pursuant to Beneficiaries of
Section 8 of R.A. No. 9700 CARP)
and Section 22 of R.A. No.
6657, as amended, and Item V
(D.3.1.d) of this Order, and
the preparation of the master
list of ARBs.
D.2.e DARMO For commercial farms,
plantations and other
landholdings which qualify for
collective distribution under
Item IV(F)(4.1 to 4.4) of this
Order, DARMO shall submit
the updated preliminary list of
potential ARBs, together with
application forms and
supporting documents/
evidence, to the Beneficiary
Screening Committee (BSC)
through the Provincial
Agrarian Reform Officer
(PARO).
D.2.1.f DARMO For landholdings subject to
individual distribution, cause
the posting of the updated
preliminary list of potential
ARBs for fifteen (15) days in
at least three (3) conspicuous
places as enumerated under
Item V(D.1.d) of this Order:
The updated preliminary list
of potential ARBs shall
contain a statement written in
both English and in the local
dialect that concerned parties
may submit to the DARMO a
petition for inclusion or
exclusion from the said list
within fifteen (15) days from
the last day of posting, which
should be stipulated therein.
D.2.1.g DARMO Obtain certification of posting • CARP-LAD Form
compliance from the proper No. 26
municipal and barangay (Certification of
officials after the fifteen (15) Posting
day posting period, indicating Compliance for List
therein the inclusive dates of of ARBs)
posting. aSEDHC
D.3 Selection and Preparation of the Master List of Agrarian Reform
Beneficiaries (ARBs)
D.3.1 Agrarian Reform Beneficiaries (ARBs) in Landholdings Subject to
Individual Distribution
D.3.1.a DARMO After the lapse of the fifteen
(15) day posting period,
conduct a field validation in
the subject landholding on the
updated preliminary list of
ARBs to further verify the
identity and qualifications of
the potential beneficiary/ies
therein.
D.3.1.b DARMO Re-evaluate the potential
beneficiaries in the updated
preliminary list of potential
ARBs based on the field
validation and
documents/evidence
available.
D.3.1.c DARMO In case one or more • CARP-LAD Form
conditions for disqualification No. 31 (Notice of
provided under Item IV(E)(3) Disqualification as
of this Order is present, Agrarian Reform
exclude disqualified Beneficiary)
applicants from the updated
preliminary list of potential
ARBs. Thereafter, send a
Notice of Disqualification,
citing the reason/s therefor,
through personal delivery or
registered mail with return
card.
D.3.1.d DARMO • Prepare the master list of • CARP-LAD Form
ARBs and prioritize and No. 33 (Master List
classify each qualified of Agrarian Reform
ARB, pursuant to Section Beneficiaries)
22 of R.A. No. 6657, as:
a. Agricultural lessees
and share tenants;
b. Regular farmworkers;
c. Seasonal farmworkers;
d. Other farmworkers;
e. Actual tillers or
occupants of public
lands;
f. Collectives or
cooperatives of the
above beneficiaries;
and
g. Others directly working
on the land.
• Post the master list of • CARP-LAD Form
ARBs for fifteen (15) days No. 33 (Master List
in designated areas as of Agrarian Reform
provided in Item V(D.1.d) Beneficiaries)
of this Order. The master • CARP-LAD Form
list of ARBs shall be No. 34 (Notice —
accompanied by a notice Master List of
containing a statement Agrarian Reform
that concerned parties Beneficiaries)
may file protest on the
said master list of ARBs
within fifteen (15) days
from the last day of
posting.
D.3.1.e. DARMO Obtain a certification of • CARP-LAD Form
posting compliance from the No. 26
proper municipal and (Certification of
barangay officials after the Posting
fifteen (15) day posting Compliance for List
period, indicating therein the of ARBs)
inclusive dates of posting.
D.3.1.f DARMO If no protest is filed within • CARP-LAD Form
fifteen (15) days from the last No. 33-A (Master
day of posting of the master List of Agrarian
list, submit the master list of Reform
ARBs to the BARC for Beneficiaries with
certification and LO Provision on BARC
attestation. Certification and LO
Attestation)
D.3.2 Agrarian Reform Beneficiaries (ARBs) in Commercial Farms,
Plantations and Other Landholdings Qualified for Collective Distribution
D.3.2.a BSC Review, verify and validate • CARP-LAD Form
the updated preliminary list of No. 32 (Updated
potential ARBs submitted by Preliminary List of
the DARMO through the ARB Potential ARBs of
application forms and other CARP)
supporting documents, and
finalize the same based on its
evaluation, fifteen (15) days
from receipt of the updated
preliminary list of potential
ARBs from the DARMO. TcHCIS
D.3.2.b BSC Cause the posting of the
updated preliminary list of
potential ARBs for fifteen (15)
days in at least three (3)
conspicuous places as
enumerated under item
V(D.1.d) of this Order:
The updated preliminary list
of potential ARBs shall
contain a statement written in
both English and in the local
dialect that concerned parties
may submit to the BSC
through the PARO, a petition
for inclusion or exclusion from
the said list within fifteen (15)
days from the last day of
posting, which should be
stipulated therein.
D.3.2.c BSC Obtain Certification of Posting • CARP-LAD Form
Compliance from the proper No. 26
municipal and barangay (Certification of
officials after the fifteen (15) Posting
day posting period, indicating Compliance for List
therein the inclusive dates of of ARBs)
posting.
D.3.2.d BSC Schedule the conduct of a
public hearing for petitions for
inclusion and exclusion from
the updated preliminary list of
potential ARBs, if any. Said
public hearing/s should
commence no later than thirty
(30) days from the last day of
posting of the updated
preliminary list of potential
ARBs.
D.3.2.e BSC Send by registered mail with • CARP-LAD Form
return card, Notice of Public No. 35 (Notice of
Hearing to all potential ARBs, Public Hearing)
which should also be posted • CARP-LAD Form
in at least three (3) No. 35-A (General
conspicuous places in the Notice of Public
commercial farm, plantation Hearing)
or landholding qualified for
collective distribution.
D.3.2.f BSC Conduct the public hearing/s
on the scheduled date/s with
those who submitted petitions
or protests on the updated
preliminary list of potential
ARBs or other concerned
parties.
D.3.2.g BSC Within thirty (30) days after • CARP-LAD Form
the conclusion of public No. 31 (Notice of
hearing/s, evaluate the ARB’s Disqualification as
qualifications based on the Agrarian Reform
proceedings and documents. Beneficiary)
In case one or more
conditions for disqualification
provided under Item IV(E)(3)
of this Order is present,
exclude disqualified
applicants from the updated
preliminary list of potential
ARBs. Thereafter, send a
Notice of Disqualification
citing the reason/s therefor,
through personal delivery or
registered mail with return
card.
D.3.2.h BSC Prepare the master list of • CARP-LAD Form
ARBs, and prioritize and No. 33 (Master List
classify each qualified ARB, of Agrarian Reform
pursuant to Section 22 of R.A. Beneficiaries)
No. 6657, as amended:
a. Agricultural lessees and
share tenants;
b. Regular farmworkers;
c. Seasonal farmworkers;
d. Other farmworkers;
e. Actual tillers or occupants
of public lands;
f. Collectives or
cooperatives of the above
beneficiaries;
g. Others directly working on
the land.
D.3.2.i BSC Post the master list in the • CARP-LAD Form
same manner and for the No. 33 (Master List
same purpose as provided of Agrarian Reform
under Item V.D.1.d of this Beneficiaries)
Order. The Master List of • CARP-LAD Form
ARBs should be No. 34 (Notice —
accompanied by a notice Master List of
containing a statement that ARBs)
concerned parties may file
protest on the said Master
List of ARBs within fifteen
(15) days from the last day
of posting. HITAEC
D.3.2.j BSC Obtain a Certification of • CARP-LAD Form
Posting Compliance from the No. 26
proper municipal and (Certification of
barangay officials after the Posting
fifteen (15) day posting Compliance for List
period, indicating therein the of ARBs)
inclusive dates of posting.
D.3.2.k BSC In case no protest is filed • CARP-LAD Form
within fifteen (15) days from No. 33-A (Master
the last day of posting of the List of Agrarian
master list, transmit the Reform
master list to the DARMO for Beneficiaries with
BARC certification and LO Provision on BARC
attestation. Certification and
LO Attestation)
D.3.2.l DARMO In case majority of the
qualifying ARBs opt for
collective ownership and the
landholding is not feasible
and sound to divide, based on
the conditions for the
issuance of collective titles as
provided under Item IV(F)
(4.1 to 4.4) of this Order, the
following shall be undertaken:
1. Facilitate the
organization and
registration of the
association or cooperative
in coordination with the
appropriate government
agencies, i.e., Cooperative
Development Authority
(CDA), Securities and
Exchange Commission
(SEC) or appropriate
non-government agencies,
where applicable.
2. Require the ARBs’
cooperative/association
to submit the following
documents:
– Board Resolution
authorizing the specific
member/s of the
association or
cooperative to sign the
application form on
behalf of the
association or
cooperative; and
– Articles of
Incorporation and By-
Laws of the
cooperative or
association.
3. In the event that there are
two (2) or more
cooperatives or
associations in the
landholding, determine the
specific area to be allotted
to each cooperative or
association by the drawing
of lots in the presence of
all parties concerned.
D.4 Resolution of Protest in the Selection of
Agrarian Reform Beneficiaries (ARBs)
D.4.a Potential File a written protest for the
ARB/s or inclusion in or exclusion from
Concerned the master list of ARBs with
Parties the DARPO, not later than
fifteen (15) days from the last
day of posting of the master
list.
D.4.b PARO In the case of commercial
farms, plantations, and
landholdings qualified for
collective distribution, order
the BSC to submit all
pertinent records/documents
of the case and conduct an
investigation on the matter.
D.4.c PARO Resolve the petition/protest
within thirty (30) days from
receipt of petition/protest
through summary
proceedings.
D.4.d PARO Pursuant to his/her decision,
instruct the MARO and the
BSC, as the case may be, to
include in the master list the
names of qualified potential
ARBs and/or to exclude the
disqualified ARBs.
Simultaneously inform all
parties concerned of his
decision through registered
mail or personal service, copy
furnished the MARO. DECSIT
D.4.e DARMO Based on the PARO’s • CARP-LAD Form
and BSC decision and instruction/s, No. 33-A (Master
finalize the master list of List of Agrarian
ARBs for subsequent BARC Reform
certification and LO Beneficiaries with
attestation. Provision on BARC
Certification and
LO Attestation)
D.4.f BSC Transmit finalized master list • CARP-LAD Form
of ARBs to the MARO for No. 33-A (Master
BARC certification and LO List of Agrarian
attestation. Reform
Beneficiaries with
Provision on BARC
Certification and LO
Attestation)
D.5. Barangay Agrarian Reform Council (BARC) Certification and Landowner
(LO) Attestation of Master List of Agrarian Reform Beneficiaries (ARBs)
D.5.a DARMO Submit to the BARC the • CARP-LAD Form
master list of ARBs for No. 36 (Transmittal
certification, including the Letter to BARC,
concomitant BARC Re: Certification of
Certification form (CARP-LAD Master List of
Form No. 33.A.1). Agrarian Reform
Beneficiaries)
• CARP-LAD Form
No. 33-A (Master
List of Agrarian
Reform Beneficiaries
with Provision on
BARC Certification
and LO Attestation)
• CARP-LAD Form
No. 33-A.1 (BARC
Certification of
Master List of
ARBs)
D.5.b BARC • Upon receipt of the master • CARP-LAD Form
list of ARBs and BARC No. 33-A (Master
Certification form from the List of Agrarian
DARMO, the BARC Reform
Chairman or his Beneficiaries with
authorized representative, Provision on BARC
shall review the master list Certification and LO
of ARBs and certify the Attestation)
same under oath before • CARP-LAD Form
an authorized No. 33-A.1 (BARC
administering officer, Certification of
affixing his/her signature Master List of
on the said master list of ARBs)
ARBs and the BARC
Certification form, with one
(1) witness signing the
same.
• Return the certified master • CARP-LAD Form
list of ARBs and notarized No. 33-A (Master
BARC Certification to the List of Agrarian
DARMO within fifteen (15) Reform
days from receipt of the Beneficiaries with
master list. Provision on BARC
Certification and LO
Attestation)
• CARP-LAD Form
No. 33-A.1 (BARC
Certification of
Master List of
ARBs)
D.5.c DARMO • Receive and record the • CARP-LAD Form
BARC-certified master list No. 33-A (Master
of ARBs and BARC List of Agrarian
Certification. Reform
Beneficiaries with
Provision on BARC
Certification and
LO Attestation)
• CARP-LAD Form
No. 33-A.1 (BARC
Certification of
Master List of
ARBs)
• Send to the landowner the • CARP-LAD Form
BARC-certified master list No. 37 (Letter to
of ARBs including the LO, Re: Attestation
concomitant Landowner of Master List of
Attestation form (CARP- ARBs)
LAD Form No. 33.A.2) • CARP-LAD Form
through personal service No. 33-A (Master
or registered mail with List of Agrarian
return card for attestation Reform
of the LO of his/her/their Beneficiaries with
tenants/lessees/regular Provision on BARC
farmworkers. Certification and
LO Attestation)
• CARP-LAD Form
No. 33-A.2
(Landowner
Attestation of
Master List of
ARBs)
D.5.d Landowner • Upon receipt of the BARC- • CARP-LAD Form
certified master list of No. 33-A (Master
ARBs and Landowner List of Agrarian
Attestation form from the Reform
DARMO, attest under oath Beneficiaries with
to the master list of ARBs Provision on BARC
insofar as his/her/their Certification and LO
share tenants, lessees Attestation)
and/or regular
farmworkers in the • CARP-LAD Form
landholding are concerned No. 33-A.2
by indicating his tenant, (Landowner
lessee and regular Attestation of
farmworker among those Master List of
listed in the master list of ARBs)
ARBs, affixing his
signature on the same and
on the Landowner
Attestation form, with one
(1) witness signing the
same. CHTAIc
• Return the attested master • CARP-LAD Form
list and notarized No. 33-A (Master
Landowner Attestation List of Agrarian
form to the DARMO within Reform
fifteen (15) days from Beneficiaries with
receipt of the same. Provision on BARC
Certification and
LO Attestation)
• CARP-LAD Form
No. 33-A.2
(Landowner
Attestation of
Master List of
ARBs)
D.5.e DARMO • Upon receipt of the LO • CARP-LAD Form
attested master list of No. 33-A (Master
ARBs and Landowner List of Agrarian
Attestation on the master Reform
list of ARBs, proceed with Beneficiaries with
the preparation of the Provision on BARC
Application to Purchase Certification and LO
and Farmer’s Undertaking Attestation)
(APFU) in accordance • CARP-LAD Form
with Item V(D.7) of this No. 33-A.2
Order, if the LO attested (Landowner
to all the ARBs in the Attestation of
master list. Master List of
ARBs)
• In cases where the LO
does not to attest to
specific ARBs or to all
ARBs in the master list
of ARBs and identifies
other ARBs by substitution
or addition whom the LO
claims are his tenants,
lessees or regular
farmworkers, the MARO
shall require the LO to
submit evidence
supporting the
qualification of his
identified ARBs.
Thereafter, submit to the • CARP-LAD Form
DARPO a report No. 38 (Report on
regarding the LO’s refusal Partial/Full Non-
to attest to specific ARBs Attestation/Inaction
or to all ARBs in the by the LO of the
master list to which he Master List of
shall attach the Agrarian Reform
documents and other Beneficiaries)
evidence supporting the
ARB/s’ qualification as
share tenants, agricultural
lessees or regular
farmworkers, as
submitted by the LO.
• If the LO returns the • CARP-LAD Form
master list to the DARMO No. 38 (Report on
without attesting to any of Partial/Full Non-
the ARBs in the said list Attestation/Inaction
without comment by the LO on the
whatsoever, or does not Master List of
act at all upon the master Agrarian Reform
list of ARBs after fifteen Beneficiaries)
(15) days from receipt of
the same, submit to the
DARPO a report regarding
the matter.
D.5.f DARPO In case of inaction or refusal
of the LO to attest to the
master list of ARBs, instruct
the DARMO to proceed with
the preparation of the APFU
in accordance with Item V
(D.7) of this Order. The right
of the LO to attest to the
master list of ARBs in so far
as the tenants, lessees and
regular farmworkers in his/her
landholdings are concerned is
deemed waived if he fails to
act upon the master list of
ARBs within fifteen (15) days
from receipt thereof, and the
master list of ARBS becomes
final and executory pursuant
to Item IV(E)(10) of this
Order. HCTAEc
D.6 Resolution of Landowner (LO) Partial or Full Non-Attestation of
Tenants, Agricultural Lessees or Regular Farmworkers
in the Master List of Agrarian Reform Beneficiaries (ARBs)
D.6.a PARO Within fifteen (15) days from
receipt of the report from the
DARMO of the partial or full
non-attestation of the LO to
the master list of ARBs and
his substitution or addition of
other ARBs whom the LO
claims to be his tenants,
lessees or regular
farmworkers, conduct a
revalidation on the
qualifications of the ARBs in
the master list and those
submitted by the LO either as
substitutes or additions.
Should the PARO sustain the
master list prepared by the
MARO and certified to by the
BARC subsequent to his
revalidation of ARB
qualifications, return the same
to the DARMO with an
instruction to prepare the
APFUs in accordance with
Item V (D.7) of this Order.
If based on the PARO’s • CARP-LAD Form
revalidation, there is possible No. 39 (Letter to
merit to the LO’s partial or full BARC for the
non-attestation of the master Conduct of
list, and to the qualification of Compulsory
other ARBs whom the LO Arbitration)
claims to be his tenants,
lessees or regular
farmworkers, the PARO shall
instruct the BARC to conduct
compulsory arbitration to
resolve the matter and to
make a determination of the
qualifications of the ARBs
who were not attested to by
the LO vis-a-vis the
qualifications of the ARBs
substituted or added by the
LO as his alleged tenants,
lessees or regular
farmworkers, or those who
were simply repudiated by the
LO as his tenants/lessees/
regular farmworkers.
D.6.b BARC • Within thirty (30) days
from receipt of the
instruction from the PARO,
conduct a compulsory
arbitration to resolve the
matter and make a
determination of the
qualifications of the ARBs
who were not attested to
by the LO vis-a-vis the
qualifications of the ARBs
substituted or added by
the LOs as his alleged
tenants, lessees or regular
farmworkers or those who
were simply repudiated by
the LO as his
tenants/lessees/regular
farmworkers.
• Submit a report of its • CARP-LAD Form
findings and include No. 40 (BARC
therein all the pertinent Report of Findings
documents to the PARO on the Compulsory
within five (5) days after Arbitration)
the completion of the • Pertinent
compulsory arbitration. Documents
D.6.c PARO • Within fifteen (15) days • CARP-LAD Form
from receipt of the report No. 40 (BARC
and findings of the BARC Report of Findings
on the compulsory on the Compulsory
arbitration, the PARO shall Arbitration)
undertake an evaluation of
the BARC report and
render his decision.
• Should the PARO’s • CARP-LAD Form
decision affirm the ARBs in No. 33-A (Master
the BARC certified master List of Agrarian
list, return the same to the Reform
DARMO with an instruction Beneficiaries with
to proceed with the Provision on BARC
preparation of the APFU in Certification and LO
accordance with Item Attestation)
V(D.7) of this Order.
• If the PARO’s decision • CARP-LAD Form
fully or partially sustains No. 41 (Master List
the LO’s partial or full non- of Agrarian Reform
attestation of the master Beneficiaries as
list of ARBs and his Finalized by the
substitution or addition of PARO per
other potential ARBs, he Resolution on LO
shall finalize the master Non-Attestation)
list of ARBs and
thereafter, forward the
same to DARMO with the
instruction to proceed with
the preparation of the
APFU in accordance with
Item V(D.7) of this Order.
D.6.d DARMO Based on the master list of • CARP-LAD Form
ARBs finalized by the PARO, No. 41 (Master List
prepare the APFU for signing of Agrarian Reform
of the ARBs in accordance Beneficiaries as
with Item V(D.7) of this Order. Finalized by the
PARO per
Resolution on LO
Non-Attestation)
• CARP-LAD Form
No. 42 (Application
to Purchase and
Farmer’s Undertaking
{APFU})
D.7 Preparation of the Application to Purchase and
Farmer’s Undertaking (APFU)
D.7.a DARMO Upon receipt of the BARC • CARP-LAD Form
certified and LO-attested No. 42 (Application
master list of ARBs or the to Purchase and
master list of ARBs finalized Farmer’s
by the PARO, undertake the Undertaking
following: {APFU})
• CARP-LAD Form
1. Prepare the APFU; No. 43 (Letter to
ARBs Regarding
2. Coordinate with a city/ the Schedule of the
municipal judge on the APFU Signing)
schedule for the swearing
under oath of the APFU
by the ARBs; and
3. Notify the qualified ARBs
of the subject
landholding/s by personal
service or registered mail
with return card regarding
the schedule of a meeting
with the DARMO on the
APFU, and if applicable,
the signing and swearing
to under oath of the APFU
before a judge on the said
date.
D.7.b DARMO Conduct meeting with the
ARBs on the scheduled date
to:
1. Explain the following:
1.1 Importance,
necessity and
significance of
accomplishing and
signing the APFU in
the acquisition and
distribution of lands
covered by CARP;
1.2 Contents of the
APFU, i.e.,
willingness to work
on the land to make it
productive, obligation
to pay land
amortization and land
taxes thereon; and
1.3 Requirement to have
this signed and sworn
to under oath before
a city or municipal
judge.
2. Cause the signing and
swearing to under oath of
the AFPU by the
beneficiaries before a city/
municipal judge.
D.7.c ARB/s • Attend the meeting
scheduled by the DARMO
on the APFU.
• Sign and swear to the • CARP-LAD Form
APFU under oath before a No. 42 (Application
city or municipal judge to Purchase and
during the designated Farmer’s
schedule per Item Undertaking)
V(D.7.b) of this Order.
D.7.d DARMO • In case the concerned • CARP-LAD Form
ARB fails to attend the No. 44 (Notice to
scheduled meeting or Absent ARB Re:
refuses to sign the APFU Waiver of Rights as
during the meeting, issue an ARB for Failure
a letter to be duly received to Sign the APFU)
by the ARB, or send a • CARP-LAD Form
notice to the absent ARB No. 45 (Letter to
informing that they have Present ARB Re:
thirty (30) days from Waiver of Rights as
receipt of the letter or an ARB for Failure
notice, as the case may to Sign the APFU)
be, to report to the
DARMO and to sign the
APFU. The said letter or
notice shall state that
ARB’s failure to execute
and sign the APFU within
the prescribed period shall
constitute a waiver of right
to become an ARB. AIHDcC
D.7.e DARMO After the APFUs have been
signed and sworn to under
oath by the ARB/s, record and
transmit the same to the
DARPO for inclusion in the
claim folder. Simultaneously,
the MARO, with the
assistance of the BARC shall
undertake the activities
necessary for the ARB
carding and identification
system pursuant to DAR A.O.
No. 03, Series of 2008.
D.7.f MARO • In case the qualified ARB
fails to report to the
DARMO within thirty (30)
days from receipt of letter
or notice on the waiver of
rights as an ARB if APFU
is not signed and sworn to
under oath within the
prescribed period pursuant
to Item IV(E.16) of this
Order, the DARMO shall
identify and select other
qualified ARB/s as
replacement giving
consideration to the
desisting ARB’s immediate
farm household member/s,
if qualified, in accordance
with Item IV(F)(1.2) of this
Order.
• In the case of commercial • CARP-LAD Form
farms and plantations, No. 46 (Report on
prepare a report on the the ARB’s Failure
ARB’s failure or refusal to or Refusal to Sign
sign the APFU and send APFU)
the same to the BSC,
through the DARPO, for
identification and selection
of another qualified ARB
as replacement.
E. REVIEW, EVALUATION AND PROCESSING OF CLAIM FOLDERS (CFs)
(See CARP-LAD Annex ―I‖ for the Process Flow)
E.1 DARPO • Attach the Field • CARP-LAD Form
Investigation Report (FIR), No. 23 (Field
ASP, land use map, APFU Investigation
and Land Distribution Report)
Information Schedule • ASP
(LDIS) to the claim folder • Land Use Map
(CF) for verification and • CARP-LAD Form
evaluation by the DAR- No. 42 (Application
LBP-Pre-Processing Unit to Purchase and
(PPU). Farmer’s
Undertaking)
• CARP-LAD Form
No. 47 (Land
Distribution
Information
Schedule)
E.2 DAR-LBP- • Verify and evaluate the • CARP-LAD Form
PPU CF. If found sufficient and No. 48 (Checklist of
complete, prepare Required
checklist of required Documents with
documents in the Recommendation
processing of claim folder Signed Jointly by
and corresponding the DAR-LBP-PPU)
recommendation on the • CF
matter, and forward the
same to DARPO for
appropriate action.
Otherwise, facilitate the
completion of the
data/documents.
E.3 DARPO • Based on the • CARP-LAD Form
recommendation of the No. 49
DAR-LBP-PPU, prepare (Memorandum
request to value the land Request to Value
and forward the same, Land)
together with the CF to
LBP-AOC.
F. LAND VALUATION AND COMPENSATION
(See CARP-LAD Annex ―J‖ for the Process Flow)
F.1 Determination of Land Value
F.1.a LBP-AOC Acknowledge receipt of CF • LBP
from the DARPO. Acknowledgement
F.1.b LBP-AOC • Determine the land value. • CF
If the land value exceeds • LBP Transmittal
the approving limit of the Letter
LBP-Agrarian Operations
Center (AOC)/Regional
Head, forward the CF
using the LBP Transmittal
Letter, together with the
determined land value of
the subject landholding, to
LBP-Head Office (HO) for
further evaluation and
approval.
• Furnish the DARPO a • Copy of LBP
copy of its Transmittal Transmittal Letter
Letter to LBP-HO, for
reference.
F.1.c LBP-AOC/HO Upon completion of the land • CARP-LAD Form
valuation of the landholding, No. 50
prepare and send (Memorandum of
Memorandum of Valuation Valuation)
(MOV) with Land Valuation • Land Valuation
Worksheet (LVW) to DARPO. Worksheet
F.1.d DARPO Receive and review the MOV
with LVW from LBP and
undertake the following: HSEcTC
a. Prepare and send the • CARP-LAD Form
Notice of Land Valuation No. 51 (Notice of
and Acquisition (NLVA) to Land Valuation and
LO together with copies of Acquisition)
the MOV, LVW and LO’s • CARP-LAD Form
Reply Form through No. 50
personal service with proof (Memorandum of
of receipt or by registered Valuation) with
mail with return card; Land Valuation
Worksheet
• CARP-LAD Form
No. 52 (LO’s Reply
to NLVA)
b. Send a copy of the NLVA • CARP-LAD Form
to DARMO for posting for No. 51 (Notice of
seven (7) days at the Land Valuation and
barangay and Acquisition)
municipal/city halls where • CARP-LAD Form
the property is located. No. 7 (Certification
Thereafter, the DARMO of Posting
shall obtain a Certification Compliance)
of Posting Compliance
from proper municipal or
barangay official; and
F.1.e DARPO Prepare and send to LBP the • CARP-LAD Form
Order to Deposit LO No. 53 (Order to
Compensation. Deposit LO
Compensation)
F.1.f LBP-AOC/HO • Upon receipt of the Order • CARP-LAD Form
to Deposit, issue a No. 54
Certification of Deposit (Certification of
(COD), pre-numbered per Deposit)
region, to DARPO.
• Notify the LO regarding • LBP Notification to
the Certification of Deposit LO on COD
(COD) issued to DARPO, Issuance
including therein the LBP • Checklist of pre-
Checklist of Pre-Payment payment
Requirements for Release requirements for
of Claims. release of claims
F.1.g DARPO Receive the Certification of • CARP-LAD Form
Deposit (COD) from LBP- No. 54
AOC/HO. (Certification of
Deposit)
F.1.h LO Within thirty (30) days from • CARP-LAD Form
receipt of the NLVA, send No. 52 (LO’s Reply
reply on the same to DARPO to NLVA)
using CARP-LAD Form
No. 52.
F.1.i DARPO Receive and forward LO’s • CARP-LAD Form
reply to LBP on whether the No. 52 (LO’s Reply
land value is accepted or to NLVA)
rejected by the LO. • CARP-LAD Form
No. 55 (Transmittal
In case the LO fails to reply of LO’s Reply to
within thirty (30) days from NLVA)
receipt of the NLVA, notify
the LBP on the matter.
F.1.j LO Submit to LBP-AOC/HO the • Required
documents required for documents for
payment of compensation payment of
claim compensation
claims
F.2 Compensation to Landowner (LO)
F.2.1 Landowner (LO) Accepts the Land Valuation
F.2.1.a DARPO Forward the Certification of • CARP-LAD Form
Deposit to the ROD together No. 56 (Request to
with the ASP and Technical Issue TCT/OCT in
Description of the the Name of RP)
landholding, and request for • CARP-LAD Form
the: (1) cancellation of LO’s No. 54
title for the landholding (Certification of
covered by CARP; (2) Deposit)
issuance of Transfer
Certificate of Title (TCT)/
Original Certificate of Title
(OCT) in the name of RP; and
(3) issuance of title to the
LO’s retained area if still
applicable per Item V(B.1.e)
of this Order.
F.2.1.b ROD Issue TCT (for titled lands) or • Owner’s Duplicate
OCT (for untitled lands) in the Copy of TCT/OCT
name of RP and forward the in the name of the
Owner’s Duplicate Certificate RP
of RP Title to DARPO. • Owner’s Duplicate
Likewise, issue TCT for the Copy of TCT/OCT
LO’s retained area and send in the name of the
the Owner’s Duplicate LO
Certificate (ODC) of title to
LO.
F.2.1.c DARPO Receive and record the • CARP-LAD Form
Owner’s Duplicate Certificate No. 57 Transmittal
of RP Title from the ROD and to LBP of Copy of
furnish a certified photocopy RP Title)
of the same to the LBP-
AOC/HO and the DARRO.
F.2.1.d LBP- Upon receipt of a certified
AOC/HO photocopy of ODC of RP Title
from DARPO and compliance
of all pre-payment
requirements by the LO,
undertake the following: HSCcTD
a. Accomplish the LBP • LBP Payment
Payment Release Form; Release Form
and
b. Pay the concerned LO and
mortgagee-banks/
creditors, if encumbered.
F.2.2 Landowner (LO) Rejects Land Valuation or Fails to Respond
F.2.2.a LBP-AOC/HO • Receive LO’s reply • CARP-LAD Form
rejecting the land valuation No. 52 (LO’s Reply
or notice of LO’s failure to to NLVA)
reply within thirty (30) days • CARP-LAD Form
from receipt of the NLVA No. 55 (Transmittal
from the DARPO. of LO’s Reply to
NLVA)
F.2.2.b DARPO • Forward a copy of the • CARP-LAD Form
Certification of Deposit to No. 54
the ROD together with the (Certification of
ASP, and Technical Deposit)
Description of the • CARP-LAD Form
landholding, and request No. 56 (Request to
for the: (1) cancellation of Issue TCT/OCT in
LO’s title for landholding the name of RP)
covered by CARP;
(2) issuance of TCT/OCT in
the name of RP; and (3)
issuance of title for the
LO’s retained area.
• Advise the Regional • CARP-LAD Form
Agrarian Reform No. 58 (Advice to
Adjudicator (RARAD)/ PARAD/RARAD)
Provincial Agrarian • Copy of CARP-LAD
Reform Adjudicator Form No. 52 (LO’s
(PARAD) to conduct Reply to NLVA) or
summary administrative proof of service if
proceedings in view of the no reply
LO’s rejection of the value • Copy of CARP-LAD
offered for his/her land or Form No. 51
LO’s failure to reply to the (Notice of Land
NLVA within the thirty-day Valuation and
prescribed period upon Acquisition)
receipt of the same. A
copy of LO’s Rejection
Letter and/or NLVA, as the
case may be, shall be
attached to CARP-LAD
Form No. 58 (Advice to
PARAD/RARAD).
F.2.2.c ROD Issue TCT/OCT in the name • Owner’ Duplicate
of RP and forward the Copy of TCT/OCT
Owner’s Duplicate Certificate in the name of the
of RP Title to DARPO. RP
Likewise, issue TCT/OCT for • Owner’ Duplicate
the LO’s retained area and Copy of title in the
send the Owner’s Duplicate name of the LO
Certificate of title to LO.
F.2.2.d DARPO Receive and record the
Owner’s Duplicate Certificate
of RP Title from the ROD and
furnish a certified photocopy
of the same to the LBP-
AOC/HO and the DARRO.
F.2.2.e PARAD/ Simultaneous with the
RARAD issuance of TCT/OCT in the
name of RP, conduct
summary administrative
proceedings, render a
decision and inform parties
concerned on the matter in
accordance with DARAB
Rules and Procedures, copy
furnished the DARPO and
DARRO.
F.2.2.f LO/LBP/ • In case the LO or
DARPO LBP/DAR rejects the
DARAB decision, the LO
or LBP/DAR files a land
valuation case with the
Special Agrarian Court
(SAC) within the
reglementary period of
fifteen (15) days.
• Should the decision attain
finality, DARPO/LBP/LO
moves for issuance of Writ
of Execution in
accordance with the
DARAB Rules and
Procedures.
Should the LO opt to
accept either the original
or recomputed value by
the LBP, he shall so
manifest in writing and
pray for a resolution based
on the same. AaITCS
• Forward to LBP the
original copy of the
Certificate of Finality/Writ
of execution. Thereafter
the LBP follows
procedures in Item V
(F.2.1.d) of this Order.
G. PREPARATION AND PROCESSING OF
LAND DISTRIBUTION FOLDER (LDF)
(See CARP-LAD Annex ―K‖ for the Process Flow)
G.1 DARPO Upon receipt of the LBP’s • CARP-LAD Form
Certification of Deposit (COD) No. 59 (PARO’s
and Owner’s Duplicate Directive to the
Certificate of RP title from MARO to Take
ROD, the PARO shall direct Actual and Physical
the Municipal Agrarian Reform Possession of the
Officer (MARO) to take Landholding
possession of the land and Acquired under
proceed with the preparation CARP), copy
of the Land Distribution Folder furnished the
of the subject land, attaching landowner
all the required documentation • Certified ODC of
relative to the transfer of the RP title
land to the Government of the • Certified Copy of
Philippines (GOP), and the Deed of Transfer
LBP’s COD. The LO shall be • Certified Copy of
furnished a copy of the Certification of
PARO’s memorandum to the Deposit from LBP
MARO (CARP-LAD Form
No. 59).
G.2 DARMO Upon receipt of the PARO’s
memorandum directing
him/her to take actual
possession of the landholding
and the related documents
forwarded by the DARPO,
record the same.
G.3 DARMO Based on the master list, • CARP LAD Form
APFU, and ASP, send a letter No. 60 (Letter to
to each qualified ARB Qualified ARB
informing him/her of the land Allocating Area of
allocated as his/her area of Award)
award under CARP, or to the
ARB cooperative association
in the case of commercial
farms, plantations and other
lands for collective
distribution, informing it on
the same.
G.4 DARMO Prepare and forward the Land • LDF containing the
Distribution Folder (LDF) to documents as
the DARPO. The LDF shall stipulated under the
contain the copies of the activity
following documents on file at • CARP LAD Form
DARMO: No. 61 (LDF
Transmittal Memo)
a. Master list of ARB/s of the
subject landholding
certified by the BARC and
attested by LO or passed
upon by the PARO in so
far as the tenants, lessees
and regular farmworkers
are concerned;
b. Application to Purchase
and Farmer’s Undertaking
(APFU)
c. Duly received copy of the
letters to qualified ARBs
allocating area of award;
d. DENR-LMS Approved
Survey Plan (ASP);
e. Copy of the TCT/OCT in
the name of the Republic
of the Philippines; and
f. LDF Transmittal
Memorandum.
H. GENERATION, REGISTRATION AND ISSUANCE OF CERTIFICATES OF
LAND OWNERSHIP AWARD (CLOAs)
(See CARP-LAD Annex ―L‖ for the Process Flow)
H.1 DARPO Upon receipt from DARMO of • LDF
the LDF pursuant to Items V
(G.4) of this Order, review all
documents contained in the
LDF to ensure that these are
complete and in order. In case
of incomplete documents,
require the DARMO to submit
the pertinent documents within
seven (7) days from receipt of
instructions from DARPO. HSIaAT
H.2 DARPO In case ARBs opt for • Judicial Forms
collective ownership and it is • CLOA-Titles
not feasible/sound to divide
the landholding, generate a
collective CLOA (Original and
Owner’s Duplicate Certificate)
for the landholding in favor of
the ARBs’ cooperative or
association, wherein all
names of the ARBs, following
the lead name on the face of
the certificate of title, shall be
typewritten on the succeeding
pages of the title, with each
name numbered
consecutively, from ―1‖
onwards, alphabetically
arranged and reflecting the
complete names (given,
middle & surnames) of the
ARBs. After the last
typewritten name of ARBs,
and immediately below a
demarcating line, the words
―nothing follows‖ shall be
typed.
In the case of individual
ownership, generate a CLOA
(original and owner’s duplicate)
in the name of each ARB,
based on existing
guidelines on the generation
of CLOA.
H.3 DARPO Ensure that all CLOAs shall
contain the following
annotation of lien in favor of
the LBP stipulating the
following:
ANNOTATION
The parcel of land described
in this CLOA is encumbered
in favor of:
LAND BANK OF THE
PHILIPPINES
to ensure full payment of its
value pursuant to R.A. No.
6657, as amended, by the
agrarian reform
beneficiaries/farmers’
cooperative or farmers’
association named herein
Date ____________
_____________________
Provincial Agrarian Reform
Officer.
The PARO shall affix his/her
initial on all copies of the
CLOA (original owners and
co-owners duplicate
certificates).
H.4 DARPO Prepare the corresponding • CARP-LAD Annex
Judicial Forms Utilization ―C‖ (Judicial Forms
Worksheet in accordance with Utilization
the systems and procedures Worksheet)
for the requisition, issuance,
utilization and accounting of
CLOA Judicial Forms.
H.5 DARPO Keep on file the LDF • LDF
containing the supporting • Generated CLOAs
documents and forward the • CARP-LAD Annex
generated CLOA including ―C‖ (Judicial Forms
Judicial Forms Utilization Utilization
Worksheet to DARRO. Worksheet)
H.6 DARRO Review and validate the • Generated CLOAs
generated CLOAs. If in order,
the Regional Director shall
affix his/her initial on all
duplicate copy of the CLOAs
original owner’s or co-owner’s
copy. In case of
inconsistencies and
incomplete data or
information, notify the DARPO
for appropriate action.
H.7 DARRO Return erroneously generated
CLOAs to DARPO for
correction, together with
pertinent documents. Only
error-free CLOAs shall be
recommended for signature of
the Secretary pursuant to
existing guidelines on judicial
forms and signing and sealing
machines.
H.8 DARRO Forward signed and sealed • Signed and sealed
CLOAs and the corresponding CLOAs
recording sheet with • CARP-LAD Form
transmittal memorandum to No. 62 (Transmittal
DARPO for registration. Memorandum Re:
Registration of
CLOA)
• CARP-LAD Annex
―D‖ (Signing and
Sealing Machine
Utilization
Recording and
Reporting Sheet)
H.9 DARPO Upon receipt from the DARRO
of the signed and sealed
CLOA, the following shall be
undertaken: SDHITE
1. Record signed and sealed
CLOAs and enter the
same in the CLOA
Registry Book of the
Registry of Deeds (ROD)
maintained in the DARPO;
and
2. Forward the signed and • Signed and Sealed
sealed CLOAs to the ROD CLOAs/Titles
for registration.
H.10 ROD Subsequent to the registration
of CLOA, release the original
Owner’s Duplicate Copy
(ODC) of CLOA-Titles to LBP-
AOC.
H.11 LBP-AOC Receive the original ODC of
CLOA-Title and provide two
(2) certified true copies of
each CLOA closely simulating
the appearance, color and
paper of the same, to DARPO
and the ARBs or the ARBs
cooperative/association in the
case of collective CLOAs. The
ODC of CLOA-title shall be
released to the ARBs upon full
payment of their amortizations
on the land.
H.12 DARPO • Upon receipt of the • Original LBP
original LBP certified true certified true copies
copies of the ODC of of the Owner’s
CLOA-Titles from LBP- Duplicate Copy
AOC, record title number (ODC) of CLOA-
and date of registration in Titles
the CLOA Registry Book.
• In the case of collective
CLOAs, reproduce and
certify the copy for each
member of the ARB
cooperative/association.
• Transmit to the DARMO a • Original LBP
copy of the LBP certified certified true copies
true copies of the ODC of of the ODC of
CLOA-Titles (in case of CLOA-Titles
individual CLOAs) or copy • Photocopy of the
of the LBP certified true certified true copies
copies of the ODC of of the ODC of
CLOA-Titles and the CLOA-Titles
certified photocopy of the
same (in case of collective
CLOAs) for distribution to
ARBs.
• Retain a copy of the
original LBP certified true
copies of ODC of CLOA
titles, a copy for DARPO’s
file and reference.
I. ISSUANCE OF CERTIFICATE OF LAND OWNERSHIP AWARD
(CLOA-TITLE)
(See CARP-LAD Annex ―M‖ for the Process Flow)
I.1 DARMO Subsequent to the receipt
from the DARPO of the
certified true copy of the ODC
of CLOA-Title and certified
photocopies of the same, in
case of collective CLOAs,
undertake the following:
1. Record ODC of CLOA- • Certified true
Title; copies of ODC of
CLOA-Title
2. Distribute LBP certified • Certified true
true copies of ODC of copies of ODC of
CLOA-title to the individual CLOA-Titles
ARB or the ARBs’
cooperative/association,
as the case may be;
3. In the case of collective
CLOAs, furnish each of
the ARB cooperative/
association members a
certified photocopy of the
ODC of CLOA-Title;
4. Assist ARBs in securing
the corresponding Tax
Declaration from the
Assessor’s/Treasurer’s
Office at the time the
CLOA-Title is distributed;
and
5. Maintain a Record Book of • Index Card of
all CLOA-titles issued ARBs
within the municipality and
received by the ARBs, and
prepare index cards for
each of the ARBs/ARB
cooperatives/
associations.
I.2 DARMO For purposes of monitoring • CARP-LAD Form
and the data base, prepare No. 63 (Monthly
and submit to the DARPO a Report on CLOA
monthly report on CLOA/s Distributed)
distributed to ARBs using
CARP-LAD Form No. 65.
J. INSTALLATION OF ARB CLOA-TITLE HOLDERS
(See CARP-LAD Annex ―N‖ for the Process Flow)
J.1 DARMO Upon receipt by the ARBs of
the certified true copy of ODC
CLOA, conduct a
briefing/orientation with the
concerned ARBs to:
1. explain the rights and
responsibilities of the
ARBs as the ―new‖
landowners, and ensure
that they understand that
they are empowered and it
is incumbent upon them,
even without the
assistance from the DAR,
to assert their rights at all
times to have peaceful
and productive possession
of the land; and
2. inform them that they may
take physical and actual
possession of the land
awarded to them under
CARP, and they shall start
paying Real Property
Taxes to the LGU —
Municipal Assessor’s
Office and the land
amortization payments to
the LBP one (1) year from
the date of CLOA
registration or if the
occupancy took place after
the CLOA registration, one
(1) year after the ARB’s
actual occupancy of the
land.
J.2 DARMO In case the ARB is unable to
take possession of the subject
land, or in the case of
contentious landholdings, the
following shall be undertaken
subsequent to the conduct of
briefing/orientation to
concerned ARBs under Item
J.1.1 of this Order: HCEaDI
1. Invite the concerned • CARP-LAD Form
ARB/ARBs’ No. 64 (Invitation to
representative, Barangay the ARB Installation
Agrarian Reform Council Planning
(BARC) Chair, or in the Conference/
absence thereof, the Meeting for ARB,
Barangay Council, Non- CLOA-Title
Governmental Holders,
Organizations/People’s BARC/Brgy.
Organization (NGOs/ Council,
POs), and other support or NGOs/POs/Other
interest groups to an Support Groups)
installation planning • CARP-LAD Form
conference/meeting; No. 65 (Invitation to
the ARB Installation
Planning
Conference/
Meeting for Co-
Owners/Collective
ARB CLOA-Title
Holders)
2. With the assistance of a
representative from the
DARPO, conduct an
installation planning
conference/meeting with
the abovementioned
stakeholders to:
– Define and clarify the
responsibilities and
role of the parties
involved in the
installation process;
– Determine the
schedule of installation
of the concerned
ARBs; and
– Determine the
necessity of police
and/or military support
in the installation
process.
3. If deemed necessary, • CARP-LAD Form
request the DARPO to No. 66 (Request for
coordinate with the DILG- Assistance of the
PNP and DND-AFP to DILG-PNP/DND-
provide assistance in the AFP in the
physical installation of Installation
concerned ARBs. Proceedings)
J.3 DARPO Upon receipt of the request
from the DARMO, the
following shall be undertaken:
1. Prepare and send a letter • CARP-LAD Form
duly signed by the PARO No. 67 (PARO’s
to the DILG-PNP or the Request for DILG-
DND-AFP requesting for PNP/DND-AFP
assistance in the physical Assistance in the
installation of ARB/s in the Installation of the
subject landholding; ARB CLOA-Title
Holders)
2. Provide the DILG-PNP/
DND-AFP the necessary
information/background of
the installation process;
3. Furnish a copy of the • Approved Request
approved request from from DILG-
DILG-PNP or DND-AFP PNP/DND-AFP
on the physical installation
of ARB/s and instruct the
DARMO to proceed with
the physical installation of
ARB/s. AcDHCS
J.4 DARMO Upon receipt of approved
request from the DILG-
PNP/DND-AFP and
instruction from the DARPO,
undertake the following:
1. Inform the concerned • CARP-LAD Form
ARBs on the scheduled No. 68-A (Notice to
date of installation Qualified ARBs
proceedings on the {For Co-Owners/
awarded land as agreed Collective CLOA-
upon during the planning Title Holders})
conference/meeting; • CARP-LAD Form
No. 68-B (Notice to
Qualified ARBs {For
Individual ARB
CLOA-Title
Holders})
2. Together with the • CARP-LAD Form
concerned police/military No. 69 (Report on
personnel, install the Physical Installation
ARBs on the scheduled of ARBs)
date and prepare report on
the matter for submission
to DARPO for reference.
3. In case the landowner • CARP-LAD Form
refuses to relinquish No. 70 (Report on
possession of the Landowner’s
landholding, report the Refusal to Give Up
same to DARPO for Possession of
evaluation and appropriate Landholding)
action.
J.5 DARPO Receive, record and evaluate
the report of DARMO. If
warranted, file a criminal case
against the concerned
landowner and inform the
DARMO on the matter.
J.6 DARMO Conduct monthly inspections
on installed ARB CLOA-title
holders for a period of at least
six (6) months or until the
situation stabilizes in the
subject landholding to
determine if the installed ARB
CLOA-title holder/s is/are still
in physical possession of the
land.
In case the installed ARB
CLOA-title holder/s is/are no
longer in physical possession
of the awarded land due to
harassment or ejection by the
landowner, the following shall
be undertaken:
1. Assist the concerned
ARB/s in reporting the
threat/harassment or
ejection attempts of the
landowner to the police/
military;
2. Prepare a comprehensive
documentation report; and
3. Submit the report to the • CARP-LAD Form
DARPO for the filing of No. 71 (Report on
appropriate legal action Harassment/
against the concerned Ejection of Installed
parties and plan for re- ARB CLOA-Title
possession of the subject Holders)
landholding by the
displaced ARBs.
VI. Transitory Provision
With respect to cases where the Master List of ARBs has been finalized on or before July 1, 2009 pursuant to Administrative
Order No. 7, Series of 2003, the acquisition and distribution of landholdings shall continue to be processed under the provisions of
R.A. No. 6657 prior to its amendment by R.A. No. 9700.
However, with respect to land valuation, all Claim Folders received by LBP prior to July 1, 2009 shall be valued in accordance with
Section 17 of R.A. No. 6657 prior to its amendment by R.A. No. 9700. DICSaH
VII. Repealing Clause
All orders, circulars, issuances or portions thereof inconsistent herewith are hereby revoked, cancelled or modified as the case
may be.
VIII. Effectivity
This Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49
of R.A. No. 6657.
Quezon City, Metro Manila, October 15, 2009.
(SGD.) NASSER C. PANGANDAMAN
Secretary
Published in The Philippine Star and Business Mirror on October 21, 2009.
ATTACHMENT
Republic of the Philippines
DEPARTMENT of AGRARIAN REFORM
CERTIFICATION
This is to certify that Administrative Order No. 2, Series of 2009 entitled ―RULES AND PROCEDURES GOVERNING THE
ACQUISITION AND DISTRIBUTION OF AGRICULTURAL LANDS UNDER REPUBLIC ACT (R.A.) NO. 6657, AS AMENDED BY
R.A. NO. 9700″ is published today, Wednesday, 21 October 2009 at Philippine Star and Business Mirror newspapers.
Issued this 21st day of October 2009 for whatever purpose it may serve.
(SGD.) HUGO D. YONZON III
Public Affairs Staff Director
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