DAR Clearance Requirements for Land Transfer

Below is a comprehensive discussion of DAR Clearance Requirements for land transfers in the Philippines. This article focuses on the legal framework, processes, exemptions, documents involved, and the practical implications of securing clearance from the Department of Agrarian Reform (DAR) before transferring any agricultural land.

1. Introduction

In the Philippines, the transfer of agricultural lands requires clearance from the Department of Agrarian Reform (DAR). This requirement stems from the state policy—enshrined in the Constitution and reflected in various laws—to promote comprehensive agrarian reform and protect the rights of agrarian beneficiaries. A DAR clearance ensures that any transfer of agricultural land complies with agrarian reform laws, preventing illegal or premature conversions and preserving agrarian beneficiaries’ rights.

Key Points:

  • DAR clearance is mandated for the transfer, sale, encumbrance, or other forms of alienation of agricultural lands.
  • The requirement is aimed at enforcing compliance with the Comprehensive Agrarian Reform Program (CARP) and related issuances.

2. Legal Basis

  1. Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988)
    - The foundational law that outlines the scope and coverage of agrarian reform in the Philippines. RA 6657 empowers the DAR to ensure that agricultural lands are distributed to qualified beneficiaries and protected from transfers or conversions that circumvent agrarian reform.

  2. Republic Act No. 9700 (CARP Extension with Reforms)
    - Amends certain provisions of RA 6657 to strengthen the program’s implementation. It reinforces the mechanisms for distributing lands and enhances DAR’s regulatory powers over transactions involving agricultural lands.

  3. Presidential Decree No. 27 (Tenants Emancipation Decree)
    - Covers rice and corn lands. Though partially superseded by RA 6657 for broader coverage, the PD 27 framework remains relevant for certain lands, especially those whose ownership or coverage began before the enactment of RA 6657.

  4. DAR Administrative Orders (AOs) and Memorandum Circulars
    - DAR has issued numerous AOs and circulars specifying procedures for land coverage, land use conversions, and clearances for the transfer of agricultural land.
    - For example, DAR Administrative Order No. 1, s. 2011 (or subsequent relevant issuances) lays down the documentation and procedures for obtaining clearance and clarifies coverage/exemptions under agrarian reform laws.

These laws and issuances collectively empower DAR to regulate, oversee, and approve or disapprove land transfers involving agricultural property.

3. When is DAR Clearance Required?

A DAR clearance (sometimes also called a DAR Certification or DAR Transfer Clearance) is typically required in any transaction involving the sale, transfer, or conveyance of agricultural land. Examples include:

  • Sale or donation of agricultural land to another person or entity.
  • Partition of agricultural land among heirs (in specific cases, DAR clearance may still be necessary).
  • Mortgage or encumbrance of agricultural land in favor of a bank or financial institution, if such encumbrance implies a potential change in ownership.
  • Transfer by succession (in some situations, though the procedure may be slightly different from voluntary transactions).

Important Clarification:
Even if a parcel of land is not explicitly devoted to agriculture but is classified as “agricultural” in official records (for instance, in tax declarations or in official zoning classifications), DAR clearance could still be required. Zoning or reclassification as non-agricultural generally must be recognized by DAR or accompanied by a DAR conversion order before a transaction can proceed without DAR clearance.

4. Types of DAR Clearances or Certifications

  1. Certificate of Exclusion or Exemption
    - Issued if the land is determined by DAR to be outside the coverage of agrarian reform (e.g., if the land was previously converted to non-agricultural use, or if it is below certain size thresholds and under personal cultivation, depending on the relevant AO).

  2. DAR Transfer Clearance
    - The standard clearance for the sale, donation, transfer, or conveyance of agricultural land. Without this clearance, the Register of Deeds typically will not process or register the deed of conveyance.

  3. DAR Land Use Conversion Clearance
    - Separate from a mere transfer clearance, this is issued when the owner intends to convert agricultural land to non-agricultural use (e.g., residential, commercial, industrial). Conversion clearances involve a more stringent process.

5. Documentary Requirements

The specific documents needed to obtain DAR clearance may vary depending on DAR’s latest administrative orders and the local DAR office’s guidelines. Generally, applicants should prepare:

  1. Application Form
    - A completed application form available from the DAR Provincial or Municipal office.

  2. Letter Request
    - An application letter addressing the Provincial or Municipal Agrarian Reform Officer (PARO/MARO), detailing the nature of the transaction (sale, donation, partition, etc.).

  3. Owner’s Duplicate Certificate of Title (or Certified True Copy if ODC is unavailable)
    - This helps DAR verify the current status of the land, area, boundaries, and encumbrances.

  4. Latest Tax Declaration
    - To confirm land classification and check if it is declared as agricultural property.

  5. Certified True Copy of Tax Clearance or Tax Receipt
    - Showing that real property taxes for the land are paid up to date.

  6. Affidavit of Aggregate Landholding
    - A sworn statement detailing other landholdings (if any) of the transferee or other parties involved. This is to verify that ownership limits under agrarian laws are respected.

  7. Location/Vicinity Map or Sketch Plan
    - This clarifies the precise location of the property and helps DAR determine coverage status.

  8. Supporting Legal Documents
    - For instance, if it’s a sale, a copy of the Deed of Sale; for donation, the Deed of Donation; for inheritance, a court order or extrajudicial settlement documents (as applicable).

  9. Other DAR-specific Forms
    - Depending on the local office, there may be additional forms to substantiate that no agrarian beneficiaries will be displaced or prejudiced by the transfer.

6. Step-by-Step Process

While procedures can vary slightly by location, the general workflow is:

  1. Pre-Filing Consultation
    - The applicant or landowner visits the DAR Municipal Office (MARO) to determine whether the land is covered by agrarian reform or if there are any issues that may prohibit transfer.

  2. Filing the Application
    - Submit the complete set of documentary requirements and the accomplished DAR forms to the DAR Provincial Office or MARO.

  3. Evaluation and Investigation
    - DAR officers evaluate the documents, conduct a field investigation, and verify if the land is under coverage or if it is exempt/excluded.
    - The investigation may include interviews with tenants/farmworkers and review of official records.

  4. Verification of Potential Agrarian Beneficiaries
    - The DAR checks if awarding of the land to qualified beneficiaries is required before approving any transfer. If there are existing agrarian reform beneficiaries (ARBs) with rights over the property, additional steps (e.g., issuance of Certificate of Land Ownership Award to the ARBs) might be necessary.

  5. Issuance of the DAR Clearance or Certification
    - If all conditions are met and the land is either exempt, excluded, or cleared for transfer, DAR issues the clearance.
    - If the application is denied, DAR issues a denial order, which may be appealable within the DAR system and possibly the regular courts, depending on the reason for denial.

  6. Registration of the Clearance
    - Upon obtaining DAR clearance, the parties proceed to the Register of Deeds (ROD) to register the deed (sale, donation, etc.) and update the title.

7. Grounds for Denial or Delay

  1. Pending Agrarian Dispute
    - If the property is under a dispute resolution proceeding or if there is an ongoing complaint by farmers claiming tenancy rights or coverage under CARP.

  2. Failure to Meet Legal Requirements
    - Missing documents, unpaid taxes, erroneous or outdated title descriptions.

  3. Non-Compliance with Land Retention Limits
    - If the transfer would cause an individual or entity to exceed the maximum retention limit allowed by law (generally five hectares under RA 6657, with some exceptions).

  4. Inaccurate or Falsified Documents
    - Affidavits or official records found to be falsified or incomplete could result in denial.

8. Exemptions and Exclusions

Certain lands or circumstances may be exempt from DAR coverage, thus potentially bypassing the need for a DAR clearance. However, an exemption or exclusion certificate is often still required from DAR to confirm that no clearance is needed. Common grounds for exemption include:

  • Lands reclassified to non-agricultural uses before June 15, 1988 (effectivity of RA 6657), provided such reclassification is recognized by DAR.
  • Lands already devoted to non-agricultural uses (e.g., industrial, commercial, or residential) before the effectivity of RA 6657.
  • Retention Areas not subject to distribution because they fall within the five-hectare retention right of a landowner, assuming it has been properly segregated and declared exempt by DAR.
  • Small landholdings below the retention limit, cultivated personally by the owner, in certain conditions outlined by DAR Administrative Orders.

Even for these situations, landowners typically must secure a Certification of Exemption/Exclusion from DAR to avoid complications at the Register of Deeds.

9. Consequences of Non-Compliance

  • Non-Registration of Title
    - The Register of Deeds will generally refuse to register any transfer of title over agricultural land unless the DAR clearance (or Certificate of Exemption/Exclusion, whichever applies) is presented.

  • Legal Sanctions
    - Violating agrarian reform laws, or proceeding with the transfer without DAR clearance, may result in the transaction being declared null and void.
    - Administrative fines and penalties may be imposed on parties or officers who facilitate illegal transfers.

  • Potential Civil or Criminal Liability
    - If the transfer prejudices tenants or farmworkers, or circumvents CARP, the parties involved may face legal action.

10. Practical Tips and Reminders

  1. Early Consultation
    - Before entering into any sale or transfer agreement, consult with the local DAR office or a legal practitioner specializing in agrarian law to determine if the land is under coverage.

  2. Complete Documentation
    - Gather and verify all required documents early to avoid processing delays.
    - Make sure that existing encumbrances (mortgages, liens) are cleared or properly disclosed.

  3. Check for Tenant or Farmworker Claims
    - Confirm whether the land has tenant farmers or if any potential agrarian reform beneficiaries have claims over it. Settling these issues early is vital.

  4. Observe Local DAR Implementing Rules
    - Some Provincial/Municipal DAR offices may have additional or slightly modified procedures. Always inquire about local guidelines.

  5. Keep Updated
    - DAR regulations may be amended or updated through new Administrative Orders or circulars. Regularly check the DAR website or consult with DAR officials for the most recent issuances.

11. Conclusion

Securing DAR clearance is a critical step in transferring agricultural land in the Philippines. It ensures compliance with the Comprehensive Agrarian Reform Program, safeguards the rights of tenant farmers and agrarian reform beneficiaries, and upholds the constitutional mandate on equitable distribution of agricultural lands. By understanding and adhering to the requirements—preparing the correct documents, navigating the DAR investigation, and verifying if the land is subject to CARP—landowners and prospective buyers can ensure a lawful and smooth transfer process.

For the most accurate, up-to-date guidance, it is recommended to consult with a qualified lawyer or the local DAR office, as policies and administrative rules can vary or evolve over time.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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