DAR Clearance for Land Transfers Under Five Hectares

(Philippine agrarian‑reform perspective — April 2025)

1. What exactly is “DAR Clearance”?

DAR Clearance (sometimes called a Land Transfer Clearance or LTC) is the written authorization issued by the Department of Agrarian Reform (DAR) that allows a Register of Deeds (RoD) to record a voluntary transfer—sale, donation, barter, exchange, partition, succession, consolidation, corporate conveyance, etc.—of agricultural land.

The requirement flows from:

§6 & §70, R.A. 6657 (Comprehensive Agrarian Reform Law of 1988, “CARL”)
§4, Exec. Order No. 129‑A (1987) — gave DAR primary jurisdiction over agrarian lands
Art. I §5, DAR Adm. Order (AO) No. 01‑2017 — the current consolidated rules on DAR Clearance

In essence, DAR acts as a gate‑keeper: before any deed covering agricultural land can be registered, DAR must certify that the transferee and the transaction will not defeat the State’s agrarian‑reform objectives.

2. Why focus on the “under‑5‑hectare” threshold?

Under §6, R.A. 6657 a natural person may retain up to 5 hectares of agricultural land. Everything beyond that is subject to redistribution, save limited retention for each qualified child (3 ha each) and certain exemptions/exclusions.

Therefore, when the entire holding affected by the transfer is five (5) hectares or less, three practical questions arise:

Question	Significance
Is DAR Clearance still mandatory?	Yes, unless the land is already outside CARP coverage (e.g., lawfully reclassified to non‑agricultural before 15 June 1988).
Can a transferee who will own >5 ha after the deal get clearance?	Generally no. The transferee’s post‑deal aggregate agricultural holdings must stay ≤ 5 ha (unless transferee is a qualified collective entity or State‑backed project).
What about inheritance?	Distribution by intestate/successional succession need only be registered with DAR (within 60 days) but each heir’s share must not push him/her over the 5‑ha cap or the excess will be subject to acquisition.

3. Current governing issuance rules (chronological snapshot)

Rule	Salient Points	Effect on sub‑5‑ha transfers
AO No. 7‑2011	Streamlined “one‑stop” LTC processing; introduced negative list of non‑agricultural parcels that are exempt from clearance.	Confirmed that size alone doesn’t dispense with clearance if land remains agricultural.
AO No. 1‑2017 (superseding & consolidating)	a) Applied a single clearance form (DAR‑LTC Form 1) b) Imposed 20‑day processing clock, renewable once c) Re‑affirmed 5‑ha ownership ceiling	Remains the controlling text as of April 2025.
DAR Memorandum Circular (MC) No. 19‑2022	Clarified that condominiumization or issuance of CCTS over agri‑lands still needs clearance; provided digital submission pilot.	No change to 5‑ha rule but easier e‑filing for micro‑transfers.

Earlier issuances (AO 01‑1989, AO 09‑1990, AO 02‑2003, AO 06‑2010) were either rescinded or consolidated.

4. Exemptions & distinctions

Exempt from CARP, thus exempt from DAR Clearance
- Lands re‑classified as non‑agricultural before 15 June 1988 by the Sangguniang Bayan/Panglunsod and approved per DOJ Opinion No. 44‑1990
- Forest, mineral, national‑park, or fishpond areas already under DENR jurisdiction
- Government reservations declared by Proclamation/Statute
- Residential/agri‑industrial estates issued DAR Certificates of Exemption (COE) under AO 03‑2003
Not exempt (DAR Clearance required even if area ≤ 5 ha)
- Lands covered by Emancipation Patent (EP), CLOA, or VOS/VLT agreements still within the 10‑year tenure prohibition (§27, CARL)
- Lands pending retention, cancellation, or coverage determination
- Sale to juridical persons or to individuals who would breach the 5‑ha aggregate cap

5. How DAR evaluates a sub‑5‑ha transfer

Step	DAR Action	Common documentary red‑flags
1. Dossier filing at Provincial or Regional DAR	Collects application, Transfer Deed (notarized), TCT/OCT, sketch/lot plan, BIR CAR, tax declarations, Barangay agrarian‑reform certification, transferee’s sworn total‑landholding statement, ID & TIN	Deed describes area larger than titled; transferee’s affidavit omits conjugal property
2. CARP‑Coverage Check	Verifies if lot is in the CARP Scope Validation Database (CSVD), subject of Notice of Coverage (NOC), or under Land Acquisition and Distribution (LAD) pipeline	Pending coverage or existing CLOA/EP = automatic denial
3. Retention & aggregation test	Calculates combined agri‑holdings of transferee nationwide (via LAMS, Landbank, RoD data)	Undeclared inheritances; un‑cancelled mother titles in another province
4. Field Investigation	DAR Municipal Agrarian Reform Program Officer (MARPO) confirms land is actually devoted to agriculture & free of qualified ARBs in peaceful possession	Farmworker in occupancy; DARAB case; tenancy still subsisting
5. Approval & Release	If compliant, Provincial Agrarian Reform Officer (PARO) issues DAR Clearance, RoD notified	Minor corrections can be ordered; serious issues → denial or 30‑day appeal window to Regional Director

Processing time — Nominally 20 calendar days, extendable once for another 10 days for documentary deficiencies (AO 01‑2017, §4.2). In practice: 4–8 weeks.

6. Jurisprudence snapshot

David v. Jud. Rec. Clerk (G.R. 223621, 28 Jan 2020)
- SC voided RoD registration of a 4.7‑ha transfer because transferee already owned 2 ha elsewhere → total 6.7 ha; DAR Clearance had been improperly issued.
Heirs of Balite v. DAR (G.R. 231541, 10 Nov 2021)
- A 3‑ha parcel re‑classified residential in 1986 was validly sold without clearance; DAR cannot retroactively apply AO 01‑2017.
Spouses Quiambao v. Luyun (G.R. 246987, 18 Jan 2023)
- Court affirmed that possession by a qualified agrarian‑reform beneficiary (ARB) bars any DAR Clearance until tenancy relations are lawfully severed.

7. Practical compliance checklist (sub‑5‑ha deals)

Do a nationwide title trace (RoD LRA eTDRA search) in the transferee’s name to confirm total holdings.
Secure barangay‑level agrarian‑reform clearance early (Form CARP‑BARC‑1) to save a site inspection cycle.
If within estate partition: attach extra‑judicial settlement (EJS) with TIN & DAR Landowner retention order, not just deed of partition.
Check 10‑year prohibition clock on EP/CLOA titles—count from registration date, not issuance date.
Pay DAR LTS/LTC fees (₱1,000 base + ₱50/hectare fractional) at DAR‑ACF cashier and attach official receipt; RoD will not accept a mere assessor’s or BIR receipt.
Note conjugal vs. paraphernal assets; any mismatch in marital‑regime statements is a habitual cause of returned applications.

8. Frequently‑asked “nuisance” questions

Query	Short Answer
“My lot is only 1 ha; can’t I just go straight to the Register of Deeds?”	No, unless you hold a DAR Certificate of Exemption showing the land is non‑agricultural.
“We are donating 4 ha to our child who already owns 2 ha; allowed?”	Not unless the 2 ha is duly converted to non‑agri or the donee first disposes of 1 ha elsewhere to remain within the 5‑ha cap.
“We formed a family corporation to buy 10 ha; can we claim each stockholder owns <5 data-preserve-html-node="true" ha?”	DAR looks at corporate ownership as one juridical person—not divided per stock. Clearance will be denied.
“Is e‑clearance possible?”	Pilot e‑LTC submission is available in NCR, Region III & IVA (per MC 19‑2022); rest of PH still paper‑based.

9. Penalties for non‑compliance

RoD refusal to record deed without clearance (§10, AO 01‑2017).
Registration done in bad faith: title is void, transferee deemed in unlawful possession; may be prosecuted under §74, R.A. 6657 (1–6 years &/or ₱100k–₱300k fine).
Administrative liability of Register of Deeds & Notary for ignoring DAR’s mandate (CSC, LRA & SC OBC sanctions).

10. Key take‑aways

Size alone does not waive DAR Clearance. Any agricultural‑land transfer, whether 5 ha or five square meters, needs clearance unless statutorily exempt.
The 5‑ha ceiling is measured on the buyer/donee’s combined nationwide holdings, not on the parcel being transferred.
Always verify CARP coverage, retention status, and tenancy before drafting the deed—most costly delays arise after the deed is notarized.
Latest controlling rules remain DAR AO 01‑2017, supplemented by MC 19‑2022; expect a digital‑first overhaul now under study (DAR’s CARP 2.0 bills pending in the 19th Congress).

Prepared for academic‑legal reference (April 17 2025, Manila). The material summarizes primary statutes, DAR administrative issuances, and leading Supreme Court rulings. It is not a substitute for formal legal advice or agency verification.