DAR clearance is required for the transfer or sale of any agricultural land to ensure
that the transferee or buyer will not own more than 5 hectares of
agricultural land as a result of the transfer or sale pursuant to Section 6, R.A. 6657 which provides:
SECTION 6. Retention Limits. — Except as
otherwise provided in this Act, no person may own or retain, directly or
indirectly, any public or private agricultural land, the size of which
shall vary according to factors governing a viable family-size farm,
such as commodity produced, terrain, infrastructure, and soil fertility
as determined by the Presidential Agrarian Reform Council (PARC)
created hereunder, but in no case shall retention by the landowner
exceed five (5) hectares. Three (3) hectares may be awarded to each
child of the landowner, subject to the following qualifications: (1)
that he is at least fifteen (15) years of age; and (2) that he is
actually tilling the land or directly managing the farm: Provided, That
landowners whose lands have been covered by Presidential Decree No. 27
shall be allowed to keep the areas originally retained by them
thereunder: Provided, further, That original homestead grantees or their
direct compulsory heirs who still own the original homestead at the
time of the approval of this Act shall retain the same areas as long
as they continue to cultivate said homestead.
The right to choose the area to be
retained, which shall be compact or contiguous, shall pertain to the
landowner: Provided, however, That in case the area selected for
retention by the landowner is tenanted, the tenant shall have the option
to choose whether to remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable features. In case
the tenant chooses to remain in the retained area, he shall be
considered a leaseholder and shall lose his right to be a beneficiary
under this Act. In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a leaseholder to the
land retained by the landowner. The tenant must exercise this option
within a period of one (1) year from the time the landowner manifests
his choice of the area for retention. In all cases, the security of
tenure of the farmers or farm workers on the land prior to the approval
of this Act shall be respected.
Upon the effectivity of this Act, any sale,
disposition, lease, management, contract or transfer of possession of
private lands executed by the original landowner in violation of the Act
shall be null and void: Provided, however, That those executed prior to
this Act shall be valid only when registered with the Register of Deeds
within a period of three (3) months after the effectivity of this Act.
Thereafter, all Registers of Deeds shall inform the Department of
Agrarian Reform (DAR) within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares.
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